Management Exam 1

Prior to a 2010 natural-gas pipeline explosion in San Bruno, California, Pacific Gas & Electric chose to use its surplus revenues to improve safety, an example of ethical decision making.

2010

ABC Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply's janitorial supply and equipment store. ABC relies heavily on Best Supply to help sell its goods and services to customers. Best Supply is a(n) ________ for ABC Brothers' products. A) distributor B) subsidiary C) competitor D) account ally E) customer

A

According to management scholar Henry Mintzberg, which three roles do managers play? A) interpersonal, informational, decisional B) interpersonal, analytical, monitor C) interpersonal, analytical, professional D) interdependent, monitor, analytical E) professional, leader, informational

A

Amy, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company "that cares." So when asked to serve on its board of directors, she gladly accepted the invitation. As a member of the board, Amy will be involved with the organization's A) overall strategic goals and approval of major decisions. B) oversight of sales and marketing. C) overall strategic goals and global HR management. D) daily specific company goals and management of a specific department. E) daily company management and employee supervision.

A

Behavioral science relies on scientific research for developing theories about human behavior that can be A) used to provide practical tools for managers. B) helpful when looking at competitive products. C) used to provide sales tools. D) used to establish MBO goals. E) used in behavioral science research.

A

Conceptual skills consist of A) the ability to think analytically, to visualize an organization as a whole, and to understand how the parts work together. B) the ability to work well in cooperation with other people to get things done. C) the ability to think practically. D) the job-specific knowledge needed to perform well in a specialized field. E) the ability to think in a logical manner.

A

Deshawn started a new type of business that provides new and unique services that did not exist before his efforts. Deshawn is acting as a(n) A) entrepreneur. B) team leader. C) angel capitalist. D) intrapreneur. E) developer.

A

Don, the owner of a bait and tackle shop, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ________ performance. A) social, environmental, and financial B) marketing, profit, and efficiency C) financial, diversity, and environmental D) social, effectiveness, and financial E) social, synergy, and diversity

A

Gary Hamel suggests we need to look at management as a process and then make improvements and innovation A) ongoing and systematic. B) intuitively. C) occasionally. D) only if doing so results in synergy. E) only if doing so saves money.

A

In February, Paula, the manager of a landscaping company, is looking at the upcoming need for more workers to handle the increased customers in spring and summer. Which of the four key management processes is she using? A) organizing B) controlling C) planning D) leading E) managing

A

Kiddie Village is a successful daycare center. It focuses on actively developing, finding, and communicating new knowledge to its employees so that workers can modify their behavior to reflect this new knowledge. Kiddie Village is an example of a(n) ________ organization. A) learning B) evolving C) customer-focused D) 360-degree E) research

A

Operations management focuses on managing the production and delivery of an organization's products or services A) more effectively. B) with a more diverse workforce. C) by utilizing motion studies. D) more economically. E) to more customers.

A

Rebecca, a department manager, has been dealing with two workers in her department who do not get along. Due to family problems for both employees, today they had a loud argument in the break room. Rebecca is meeting with both to resolve the issues. Which managerial role is Rebecca playing? A) disturbance handler B) monitor C) spokesperson D) resource allocator E) negotiator

A

Right Motors calls its customers after they purchase an automobile from the dealership. In addition, every year customers are asked to complete a short survey about the car they purchased from Right Motors and their customer-service experiences with the dealership. Right Motors is an example of a(n) ________ system. A) open B) environmental C) ongoing D) closed E) open-door

A

What is a synonym for the macroenvironment? A) general environment B) economic environment C) task environment D) microenvironment E) ethical environment

A

When a line cook in a restaurant cooks uses raw meat to cook a hamburger that becomes part of the restaurant's Super Burger Special (available only on Saturday nights during football season), the cook is taking part in a A) transformation process. B) turning point. C) conversion process. D) therblig. E) metamorphosis.

A

When a manager assesses a particular situation and decides what to do according to the individual and environmental situation, the manager is utilizing the ________ viewpoint. A) contingency B) behavioral C) flexibility D) scientific E) systems

A

When the manager of a local restaurant sets goals and then develops a blueprint for how to achieve them, she is A) planning. B) staffing. C) delegating. D) organizing. E) monitoring.

A

_____ believed that quality stemmed from "constancy of purpose," and that managers should stress teamwork, be helpful rather than simply give orders, and make employees feel comfortable about asking questions. A) W. Edwards Deming B) Mary Parker Follett C) Henri Fayol D) Frank and Lillian Gilbreth E) Max Weber

A

______ is the discipline concerned with creating computer systems that simulate human reasoning and sensation. A) Artificial intelligence B) Simulation production C) IT simulation D) Cognitive cloning E) Human simulation

A

________ forces affect the way politics shape laws and the way laws shape the opportunities for and threats to an organization. For example, some cities in the United States (including New York and San Francisco) have set the minimum wage far above the federally mandated minimum wage. A) Political-legal B) Sociocultural C) Technological D) Demographic E) Financial

A

A supplier is an external stakeholder that A) helps a company sell its goods and services to customers. B) provides raw materials, services, equipment, labor, or energy. C) joins forces with another company to achieve advantages that neither can achieve on its own. D) competes for customers or resources. E) rescinds tax breaks when firms don't deliver promised jobs.

B

According to Robert Katz, which three skills do managers develop through education and experience? A) planning, leading, conceptual B) technical, conceptual, human C) cognitive, people, technical D) technical, leading, planning E) monitoring, planning, leading

B

Amy is a package delivery service manager. She is interested in implementing ________, the management philosophy pioneered by Frederick W. Taylor and Frank and Lillian Gilbreth, which scientifically studies work methods to improve the productivity of individual workers. In this particular case, Amy will study the routes that drivers take through a congested to city in order to identify ways that delivery staff can make the most deliveries in each two-hour period. A) quantitative management B) scientific management C) contingency management D) human relations management E) management science

B

An individual or individuals who work(s) within an existing organization, using personal resources to make the most of an opportunity, is a(n) A) angel investor. B) intrapreneur. C) entrepreneur. D) venturist. E) stockholder.

B

An organization's internal stakeholders consist of A) the board of directors, employees, and suppliers. B) the board of directors, employees, and owners. C) the board of directors, customers, and owners. D) competitors, the community, and suppliers. E) customers, families of employees, and employees.

B

At times, customers have an unexpected need and require certain departments, such as production, to change their schedule to meet the demands of the sales department. When Susan, the vice president of marketing, inspires the production team to put in the extra effort, she is playing a(n) ________ role. A) staffing B) leadership C) monitoring D) delegation E) implementation

B

Being able to ________ is a key benefit for those who study management. A) sell their product B) relate to their managers and deal with organizations from the outside C) relate to coworkers and deal with technology D) counsel workers on personal and family issues E) better manage money

B

Donna, vice president of finance, and Bob, vice president of human resources, are A) lower-level managers. B) functional managers. C) team leaders. D) board members. E) advisory managers.

B

Felix pays a lot of attention to the environment outside his company, staying alert for long-run opportunities and problems and devising strategies for dealing with them. Felix is a(n) A) first-line manager. B) upper-level manager. C) monitoring manager. D) team leader. E) board manager.

B

Greg, the IT manager, feels that his employees lack the motivation to consistently meet department goals. To better understand human actions and to motivate their employees toward achievement, Greg and his supervisors need to adopt the ________ viewpoint. A) classical B) behavioral C) synergy D) scientific E) attitude

B

Mateo, an IT manager, has been studying the actions that his workers perform in an attempt to improve their productivity. Mateo is utilizing A) synergy. B) scientific management. C) management science. D) behaviorism. E) the Hawthorne effect.

B

Paul English of Kayak.com uses new employees as an excuse for altering an existing open-office seating arrangement. English's action is an application of ________ to management. A) the office politics approach B) the behavioral science approach C) the hostility-effect approach D) the synergy research approach E) a Theory X approach

B

Sal, a production manager, knows that some of his employees are upset with a new corporate policy that eliminates a tuition reimbursement program. As a result, some of these employees are participating in soldiering. To eliminate soldiering, Sal should A) reduce training, but increase MBO. B) carefully select workers according to their abilities and give workers training. C) increase diversity and MBO. D) reduce the use of scientific principles in planning work methods. E) place workers in any task available, focusing on their interests and not their abilities.

B

Since the 1950s, the percentage of the U.S. labor force represented by unions has A) steadily increased. B) steadily declined. C) rapidly increased. D) remained unchanged. E) fallen to nearly zero.

B

The Jones family had a fire that destroyed their home. Various departments of a restoration company, from the initial cleanup crew to the assistance with the Jones family moving back in, worked together to achieve this goal. All of the company's interrelated parts working together to accomplish a goal (in this case, the restoration of the Jones home) is an example of a(n) A) process. B) system. C) input-output structure. D) structure. E) stepped process.

B

The Sarbanes-Oxley Act of 2002 established requirements for ________. Noncompliance can result in penalties of A) all corporate financial records to be made public; as much as $5 million. B) proper financial record keeping for public companies; as much as 25 years in prison. C) codes of ethics guidelines for organizations; as much as $2 million. D) proper financial record keeping for private companies; as much as 25 years in prison. E) proper financial record keeping for government organizations; as much as 25 years in prison.

B

The company that Don owns, the Ardmore General Store, is a family-owned company that has been in business for more than 100 years. Don wants to give back to the people of the community to acknowledge their role in the store's success. He decides to donate a significant portion of the store's profits to a charity every year. Don's decision is an example of ________ in action. A) economic responsibility B) corporate social responsibility C) corporate governance D) legal responsibility E) a code of ethics

B

The management approach that emphasized ways to manage work more efficiently is the ________ approach. A) systems B) classical C) MBO D) quality-management E) contingency

B

When Dave, a restaurant owner, had his seafood business destroyed by Hurricane Katrina, he believed that he was in control of his own destiny and made a decision to rebuild the company. Dave is an individual with a(n) A) low tolerance for ambiguity. B) internal locus of control. C) inside opportunity. D) external locus of control. E) exit strategy.

B

When faced with a business problem, Sally, a young grocery store owner, discusses business problems with Don, the assistant manager and an employee for over 30 years. Sally believes Don "has seen it all" and knows there are few really new ideas; plus the business has done many simple things, such as offering friendly service, to create and maintain a competitive edge. Sally's management style is best described as A) behavioral. B) evidence-based. C) family style. D) contingency. E) bottom-up.

B

Which of the following is an example of a green policy or action? A) A major publisher donates 10,000 books a year to national literacy groups. B) Coca-Cola has pledged to replenish (return to nature) all the water it uses to make its beverages. C) The owner of a sole proprietorship announces that she is taking on a business partner. D) 3M encourages employees to experiment with creating new products. E) A local factory pollutes the atmosphere via smokestacks that belch out carbon dioxide.

B

______ was the father of scientific management. A) Peter Drucker B) Frederick Taylor C) Frank Gilbreth D) Abraham Maslow E) Tom Gallagher

B

________ are two of the primary challenges facing managers today. A) Dealing with employee issues and maintaining good records B) Managing for a competitive advantage and diversity C) Dealing with the lack of information and union problems D) Dealing with ethical dilemmas and decreasing diversity E) Dealing with union and financial issues

B

________ guides the justice approach to deciding ethical dilemmas. A) The individual's best long-term interest B) Respect for impartial standards of fairness and equity C) Respect for society and the environment D) Increasing profits and workplace diversity E) Respect for the fundamental rights of human beings

B

ABC Manufacturing employs some of the top professionals in its field, and because of their skills and experience, ABC is highly efficient and outperforms its competitors. ABC Manufacturing has a(n) ________ over its competition. A) synergy B) effectiveness advantage C) competitive advantage D) quality mark E) leadership dimension

C

Consider the following situation: Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because polluting the stream helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because doing so is also in the farmer's best long-term interests. This type of thinking reflects the ________ approach to deciding ethical dilemmas. A) utilitarian B) justice C) individual D) moral-rights E) group

C

Joe, the owner of ABC Electronics, just discovered that his trusted friend Paul, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Joe must decide whether to ignore his friend's actions and avoid bad publicity for ABC Electronics, or to have Paul arrested for embezzlement. Joe is facing A) a synergy factor. B) an issue of corporate governance. C) an ethical dilemma. D) a whistle-blower. E) a social audit.

C

Management science stresses the use of rational, science-based techniques and mathematical models to improve A) sales and customer relationships. B) synergy. C) decision making and goal setting. D) cost-cutting and planning. E) decision making and strategic planning.

C

Patsy, a registered nurse, has decided to start a home healthcare service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Patsy is focusing her marketing efforts on the older adult population; in these efforts, she is involved with the ________ environment. A) task B) strategic allies C) general D) internal E) natural capital

C

Phillip said to a close friend, "I am fed up with my company's continual disregard for the environment. They secretly dispose of hazardous chemicals into a nearby stream constantly. I don't know how they get away with it! I am going to call a reporter at the New York Times and reveal what my company is doing." Phillip's decision to tell somebody about his company's actions is an example of A) backstabbing his manager. B) violating a code of ethics. C) whistle-blowing. D) operating at a preconventional level. E) being guided by the invisible hand.

C

Sustainable economic development A) produces greater diversity in the workforce. B) always generates greater profitability. C) meets present needs without compromising the ability of future generations to meet their needs. D) meets future needs without compromising present needs. E) is an idea proposed by Frank and Lillian Gilbreth to cut costs and increase efficiency.

C

The district manager of a national fast-food restaurant watches the sales reports for each restaurant daily to compare actual sales with projected sales goals, and then takes corrective action if needed. In which part of the management process is she participating? A) goal setting B) situational planning C) controlling D) motivating E) organizing

C

The marketing director for Zap Games, a video game company, has informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products because the distributors are part of the ________ environment for Zap Games. He believes that a stronger relationship with distributors will lead to more market share, and higher profits, for both Zap Games and its distributors. A) external B) focused C) task D) outlying E) strategic

C

The owners of a local restaurant routinely try to develop new menu items and seek better ways of helping their customers. ________ is the result of their efforts. A) MBO B) The production objective C) Innovation D) Efficiency E) Synergy

C

What are the four levels of managers? A) top, middle, first-line, advisors B) upper, middle, floating, lower C) top, middle, first-line managers, team leaders D) upper, regional, middle, lower E) upper, board of directors, middle, lower

C

Which of the following is a key benefit of studying theoretical perspectives on management? A) They emphasize diversity. B) They are effective synergy-building approaches. C) They serve as a guide to action and a source of new ideas. D) They are effective cost-reduction tools. E) They build a strong family-type culture.

C

________ holds that there are few really new ideas and that "true is better" than new. A) MBO B) Behavioral management C) Evidence-based management D) Scientific management E) The quality-management viewpoint

C

A local farmer grows and sells tomatoes and beans to the local grocers. Look at the farmer's business as a system. In which category do the tomatoes, beans, squash, profits, and losses fall? A) input B) result C) therblig D) output E) transformational process

D

According to proponents of the Hawthorne effect, A) increasing diversity results in increases in worker productivity. B) increasing synergy increases worker productivity. C) cutting costs through outsourcing harms employee morale and productivity. D) giving more attention to employees increases worker productivity, if they think managers care about them. E) giving less attention to employees increases worker productivity.

D

As a store manager, Liandra has to play the role of negotiator, such as purchasing products at a fair price for her company. As she handles this responsibility, Liandra is playing the ________ role. A) bargainer B) interpersonal C) disseminator D) decisional E) leadership

D

Cheyenne is the manager of a local small hotel. Just today Cheyenne received word that a major convention will be coming to town next month, and the demand for hotel rooms is expected to skyrocket. In a conversation with the owner, she asked, "What should our approach to pricing be for the week of the convention? Should we require payment in full at the time of the reservation?" Which management method is Cheyenne using? A) scientific management B) the devil's advocate method C) the diversity viewpoint D) the contingency viewpoint E) the synergy method

D

Every Saturday Mrs. Jones and hundreds of other shoppers visit ABC Market, a grocery store, to buy food for their home or business. These shoppers are ________ to ABC. A) community allies B) suppliers C) partners D) customers E) competitors

D

Fewer children are interested in learning how to play a musical instrument, and young people having less interest in owning cars. These two trends are examples of ____ forces at work. A) diversity B) political C) financial D) sociocultural E) legal

D

On an organization's board of directors, A) inside directors must work for the organization and outside directors are paid members of the organization. B) inside directors must work for the company and outside directors are also members of the firm. C) inside directors are supposed to be elected from outside the organization and outside directors may be members of the firm. D) inside directors may be members of the firm and outside directors are supposed to be elected from outside the firm. E) inside directors are always retired executives and outside directors typically are employees.

D

When building a new residential development or mall, a national real estate organization typically does not remove many trees, basing its decision on the belief that natural resources are limited and the company must not compromise the ability of future generations to meet its own needs. To which philosophy is the company adhering? A) enviroethics B) natural ethics C) green values D) sustainability E) environmental stimulation

D

Which three approaches to management are considered historical perspectives? A) classical, scientific, quantitative B) systems, contingency, quality management C) classical, operations, scientific D) classical, behavioral, quantitative E) contemporary, historical, scientific

D

______ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior. These beliefs may include the idea that employees should be promoted solely on the basis of merit, that no bribes will be paid to foreign officials to obtain business licenses, and that companies should offer extended maternity leave upon the employee's request. A) Norms B) Morals C) Ethical advantages D) Values E) Fairness factors

D

A computer manufacturer is seeking to cut costs by designing an inventory system that reduces the number of finished products in stock due to overproduction and to set in place a production schedule that better matches customers' orders. These plans are an example of ________ in action. A) scientific management B) inventory oversight C) inventory analysis D) production management E) operations management

E

Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in implementing certain aspects of the bureaucratic approach to management within her restaurant. Like Weber, Tammy feels bureaucracy is a A) rational, efficient method of increasing diversity. B) rational, cost-cutting, efficient organization based on principles of synergy. C) sales-generating tool. D) rational, efficient, cost-cutting tool based on principles of behaviorism. E) rational, efficient, ideal organization based on principles of logic.

E

George, who owns a small grocery store, has a reputation in the community as a tough manager. Many customers have heard George yell at his employees because he feels that workers today are lazy, lack ambition, and hate to work. George is a(n) ________ manager. A) hierarchy B) accountable C) Theory Z D) Theory Y E) Theory X

E

Mary Parker Follett anticipated some of today's workplace trends, such as A) management-lead teams and diversity. B) synergy and MBO. C) worker empowerment and scientific management. D) quality assurance and transformation processes. E) self-managed teams and worker empowerment.

E

The American economy consists of a complex combination of organizations and variables, such as countless companies differing in size and what they sell, current events, and markets (for example, the housing market and the stock market). According to ________, all of these independent factors interact with one another according to certain simple rules. A) contingency theory B) a closed market system C) behavioral theory D) a market web E) complexity theory

E

The classical viewpoint of management emphasized ways to A) vary according to the environment. B) increase diversity. C) build more synergy. D) include MBO. E) manage work more efficiently.

E

The management of Prime Manufacturing is implementing a plan to minimize production mistakes by allowing teams that work in each area of the production facility to develop a plan and then monitor their area to ensure the reduction of errors. The managers are engaging in A) JIT. B) innovative planning. C) the minimal defect approach. D) efficiency monitoring. E) quality control.

E

The systems viewpoint sees organizations as entities made up of four interrelated parts known as A) planning, design, inputs, monitoring, outputs, and follow-up feedback. B) planning, design, monitoring, production, and feedback. C) planning, inputs, monitoring, outputs, and feedback. D) vision, planning, design, production, monitoring, and follow-up feedback. E) inputs, outputs, transformation processes, and feedback.

E

The vice president of human resources for a national electronics retailer is meeting with employees of several stores to present information to workers that their stores are closing and how the company will help employees in the future. Here, the vice president of HR is playing a(n) ________ role. A) liaison B) spokesperson C) entrepreneur D) transition E) disseminator

E

To maintain a competitive advantage, the top management of a national furniture store made the decision to increase employee training, add rewards that motivate employees, and look at improving procedures related to disciplining workers. These decisions are made by managers who play a ______ role. A) figurehead B) spokesperson C) negotiator D) liaison E) leadership

E

What are the four principal functions of management? A) staffing, planning, leading, and delegating B) scheduling, organizing, leading, and staffing C) staffing, planning, motivating, and delegating D) executing, planning, organizing, and leading E) planning, organizing, leading, and controlling

E

What mechanism is used to provide a systematic assessment of an organization's performance in implementing socially responsible programs, often based on predefined goals? A) code of ethics B) diversity program C) sustainability program D) financial audit E) social audit

E

When a food distributor considers changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America, it is examining the ________ forces at work in the southern United States. A) political B) technological C) economic D) legal E) demographic

E

Which forces are part of the macroenvironment? A) globalism, technological, sociocultural, demographic, and microenvironment B) economic, technological, sociocultural, and diversity C) international, demographic, diversity, family, culture, and technology D) diversity, microenvironment, sociocultural, demographic, and political-legal E) economic, technological, sociocultural, demographic, political-legal, and international

E

Which one of the following is one way to think about management? A) the science of accomplishing things B) efficiency in motion C) the science of helping people D) the science of synergy E) the art of getting things done through people

E

________ are regulatory agencies, such as the SEC (Securities and Exchange Commission), that establish ground rules under which organizations may operate. A) Watchdogs B) Interest groups C) Government moderators D) Whistle-blowers E) Government regulators

E

________ refer to the ability to motivate, to inspire trust, and to communicate with others. A) Technical skills B) Strategic planning C) Planning and organizing skills D) Training skills E) Soft skills

E

A-Plus Manufacturing has a policy of using statistical sampling to locate errors by testing just some (rather than all) of the items in a particular production run. This strategy of minimizing errors is known as synergy.

F

As businesses are going green today, sustainability programs have produced environmental benefits, but unfortunately, they have also resulted in higher costs and lower revenues, and at times, they have hurt organizations competitively.

F

At times, to be efficient in management means not using resources in the most cost-effective way.

F

Mintzberg concluded that managers play three broad types of roles: interpersonal, analytical, and critical.

F

Paul, who is normally an ethical person, has an opportunity to acquire what he feels is "easy" money in his job, and he believes it is safe to steal the money because nobody would know if he does take it. Paul rationalizes that it is fine to steal the money because he needs it more than the person whom the money belongs to. The psychological mechanism that causes Paul to want to steal the money is poor self-esteem.

F

The idea that two or more forces combined create an effect that is greater than the sum of their individual effects is called syncretism.

F

The task environment of Top-Notch Sewing consists of just two groups, customers and stockholders, who give the employees and management of Top-Notch the daily tasks that the company's employees will handle.

F

A local furniture retailer routinely develops and acquires new knowledge, and the employees communicate what they learn to other employees, so the company is able to modify its behavior to reflect what they have learned. This organization is an example of a learning organization.

T

Joe, a plant manager, wants to institute a compensation system in which more efficient workers earn higher wages. Joe is proposing to institute a differential rate system.

T

Just before introduction of a new revolutionary laptop, the Top205 by Top Computers, Greg, the CEO of Top, was informed that a problem with a part inside the Top205 may cause reliability issues. Greg knows that correcting the problem will delay the introduction of the product, and be expensive due to possible order cancelations and added advertising costs. But he also knows that allowing the new flawed computer into the market will affect Top Computers' reputation. Greg's decision whether to delay the introduction of the Top205 or proceed as planned is an example of an ethical dilemma.

T

Robert is a district manager who oversees several store managers in a national chain of restaurants. Robert reports directly to the vice president of stores and marketing, a member of top management. Robert is a middle manager.

T

Susan, a district manager for a large retail chain, is comparing the goals of her stores with recent sales. She knows that two stores are underperforming, so she plans on meeting with those managers to discuss corrective action; this process is the controlling managerial function.

T

The Hawthorne studies succeeded in drawing attention to the importance of "social man" and how managers using good human relations could improve worker productivity.

T