Management Quiz 1

Which of the following is a reason teamwork can be more satisfying than traditional work?

All of these are reasons why teamwork can be more satisfying than traditional work.

Virtual teams ____.

Are very flexible

____ is the measure of the intensity of competitive behavior between companies in an industry.

Character of the rivalry

Which of the following statements regarding cohesiveness is true?

Cohesive groups have lower turnover.

Which of the following statements about portfolio strategy is true?

Dysfunctional consequences can occur when companies are categorized

Which of the following statements about social responsibility is true?

Economic and legal responsibilities play a larger role in a company's social responsibility than do ethical and discretionary responsibilities.

Which of the following statements about ethics is true?

Ethics is the set of moral principles or values that defines right and wrong for a person or group

According to some industrial psychologists, Performance = Motivation ´ Ability.

False

According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other.

False

As a leader behavior, consideration refers to the extent to which leaders do what they said they would do.

False

Benchmarking is the process of setting corporate norms.

False

Cohesiveness refers to the extent to which members of a team are experiencing job satisfaction.

False

Companies face very little uncertainty in their strategic business environments.

False

Companies will be considered unethical if they do not perform their discretionary responsibilities.

False

Conceptual skills are most important for lower-level managers.

False

Concurrent control seeks to prevent or minimize performance deficiencies before they occur.

False

Control loss usually has no affect on goal achievement.

False

Developing a vision and mission statement is the sole responsibility of middle management.

False

First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing subunit strategies for achieving these objectives.

False

Global new ventures bring a good or service to market in one foreign market at a time.

False

Goal specificity is the extent to which a goal is hard or challenging to accomplish.

False

If retrenchment works, it is typically followed by a stability strategy.

False

Management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of those goals.

False

Most companies compete directly with all the firms in their industry.

False

One of the disadvantages of project teams is their lack of flexibility.

False

Planning is a three-step process which involves first setting goals, next developing effective action plans, and finally tracking progress toward goal achievement.

False

Punishment is also called avoidance learning.

False

S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely.

False

Since teams should be an end in themselves, it is appropriate to use them in most situations.

False

Strategic leadership is defined as the ability to think strategically and create a strategic plan for an organization.

False

Team normalization represents the differences in ability, experience, personality, or any other factor on a team.

False

Teams do not perform any better when offered extrinsic rewards.

False

The balanced scorecard approach to control emphasizes measurement of organizational performance in three equally important areas. These areas are finances, internal operations, and innovation and learning.

False

The basic components of equity theory are outcomes, instrumentality, and valence.

False

The greater the market commonality, the less intense the direct competition between two companies.

False

The level of agreement on whether behavior is good or bad is defined as the level of ethical acceptance.

False

The most common type of training provided to members of work teams is training in leadership skills.

False

The number one mistake made by managers who were derailed from their fast track up the managerial ranks was that they didn't develop the necessary technical skills.

False

The only dimension needed to measure quality is conformance to expectations.

False

The only kinds of adaptive strategies are defending, analyzing, and reacting.

False

The organization's vision must regularly change to adapt to changes in the environment over time.

False

The stakeholder model holds that the only social responsibility that businesses have is to maximize profits.

False

The term excessive value appropriated (EVA) refers to the amount by which profits (after expenses) exceed the cost of capital in a given year.

False

The three levels of waste minimization are waste disposal, waste reduction, and recycling.

False

The two approaches to maintaining flexibility in organizations while they plan are outcome-based planning and change-based planning.

False

There are four decisional roles. They are entrepreneur, disturbance handler, resource allocator, and spokesperson.

False

There is general agreement regarding what is socially responsible corporate behavior.

False

Top managers are the managers responsible for facilitating team activities toward goal accomplishment.

False

When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.

False

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

False

While good management is basic to starting and growing a business, once some measure of success has been achieved, good management becomes less important.

False

Which of the following is an example of a situational theory of leadership?

Fiedler's contingency theory

Which of the following types of global organization is most likely to suffer problems associated with being culture bound?

Franchising

____ are both examples of cooperative contracts.

Franchising and licensing

The basic model of ethical decision making ____.

Is not accurately described by any of these.

Which of the following statements about the Strategic Reference Point Theory is true?

None of these statements about the Strategic Reference Point Theory is true.

Which of the following is NOT one of the rules for effective brainstorming?

Select an open-minded group leader.

Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?

Synergistic

One of the major questions that a company must typically answer once it has decided to go global is ____.

To what extent should the company standardize or adapt business procedures?

A joint venture is an example of a strategic alliance.

True

A management study discovered that companies which invest in their people will create long-term competitive advantages difficult for other companies to duplicate.

True

According to expectancy theory, instrumentality is strong when employees believe that improved performance will lead to better and more rewards.

True

An intrinsic reward is a reward associated with performing a task or activity for its own sake.

True

As described in the path-goal theory, directive leadership is similar to the key leadership behavior of initiating structure.

True

Both proximal and distal goals are used to provide additional motivation and rewards for employees.

True

Companies use their resources to improve organizational efficiency and effectiveness.

True

Control is achieved when behavior and work procedures conform to standards and company goals are accomplished.

True

Cross-functional teams are purposefully composed of employees from different functional areas of the organization.

True

Customs classification is a non-tariff trade barrier. It is important to international marketers because the category assigned by customs agents can affect the size of the tariff and the impact of import quotas.

True

Different businesses often need different combinations of global consistency and local adaptation.

True

Ethics is the set of moral principles or values that defines right and wrong for a person or group.

True

Fiedler's contingency theory states that in order to maximize work group performance, leaders must be matched to the situation that best fits their leadership style.

True

For goal-setting theory to motivate employees, managers must provide frequent, specific, performance-related feedback.

True

For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress.

True

For punishment to work, the punishment must be strong enough to stop the undesired behavior and must be administered objectively, impersonally, consistently and contingently, and quickly.

True

From a competitive standpoint, resource similarity means that the strategic actions your company takes can probably be matched by your direct competitors.

True

In a multinational company, managers at company headquarters may value global consistency as a company policy over local adaptation because global consistency simplifies decision-making at corporate headquarters.

True

In many industries, teams are growing in importance because they help organizations respond to specific problems and challenges.

True

In the decision-making process, teams can do a much better job than individuals in defining the problem and generating alternative solutions.

True

It would be safe to say that, while it sometimes pays to be socially responsible, at other times socially responsible behavior can create significant costs.

True

Leadership is the process of influencing others to achieve group or organizational goals.

True

Middle managers are typically responsible for coordinating and linking groups, departments, and divisions within a company.

True

Motivation is the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal.

True

Multinational corporations are corporations that own businesses in two or more countries.

True

Portfolio strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.

True

Stakeholders are people or groups with an interest in a company's actions.

True

Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.

True

Team leaders are responsible for managing both internal team relationships and external relationships with other teams, departments, and divisions in a company.

True

The categories of social responsibility for a company are economic, legal, ethical, and discretionary

True

The control process begins when managers set goals.

True

The first step in establishing an ethical climate in a company is for managers to act ethically themselves.

True

The last stage of team development, where decline is complete, is the de-forming stage.

True

The normative decision theory helps leaders decide how much employee participation should be used when making decisions.

True

The objective control approach to managerial control manifests itself as either behavior control or output control.

True

The term decision making is used to refer to the process of choosing a solution from available alternatives.

True

The three positioning strategies are cost leadership, differentiation, and focus.

True

The three strategies used to minimize or to adapt to the political risk inherent to global business are avoidance, control, and cooperation.

True

The two kinds of cooperative contracts are licensing and franchising.

True

The two kinds of inequity are underreward and overreward.

True

There is no such thing as a "best" leadership style for all situations and employees.

True

Transformational leadership is leadership that generates awareness and acceptance of a group's purpose and mission and gets employees to see beyond their own needs and self-interest for the good of the group.

True

Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.

True

Upper-level managers may actually spend more time dealing with people than lower-level managers.

True

Whereas managers tend to have a short-term perspective, leaders tend to have a long-term perspective.

True

While transformational leaders use visionary and inspirational appeals to influence followers, transactional leadership is based on an exchange process.

True

What is social responsibility?

a business' obligation to pursue policies, make decisions, and take actions that benefit society

Which of the following is an advantage associated with the use of project teams?

all of these

Which of the following management practices can be used by an organization that wants to create a competitive advantage through its employees?

all of these

Successful business leaders are not like other people. Successful business leaders ____.

are accurately described by all of these

Managers can motivate employees to increase their efforts by ____.

asking employees what their needs are then matching rewards to those needs

The first step in the strategy-making process is to ____.

assess the need for strategic change

The two types of objective controls managers use are ____.

behavior and output controls

Companies may determine standards by ____.

benchmarking other companies

The achievement of stretch goals is made easier when the team members have ____.

bureaucratic immunity

How are organizations using teams to help increase customer satisfaction?

by creating problem-solving teams to study ways to improve customer satisfaction and make recommendations for improvements

How do employees try to restore equity when they perceive that they have been treated unfairly?

by doing any of these

Which skills increase in their importance to success as managers rise through the managerial ranks?

conceptual skills and the motivation to manage

Which of the following is another term for initiating structure leadership behavior?

concern for production

____ control is a method of gathering information about performance deficiencies as they occur.

concurrent

The three basic control methods are ____.

concurrent control, feedback control, and feedforward control

A manager engaged in the management function of ____ is monitoring progress toward goal achievement and taking corrective action when needed.

controlling

The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is ____.

costs

The ____ is purposefully composed of employees from different functional areas of the organization.

cross-functional team

____ is the process of choosing a solution from available alternatives.

decision making

____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.

direct foreign investment

According to the path-goal theory of leadership, ____ involves letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations.

directive leadership

While ____ are tangible, ____ are not.

distinctive competencies; core capabilities

For the goal-setting theory to work, goals must ____.

do all of these

Middle managers typically:

do all of these

To encourage more ethical decision making in an organization, managers should ____.

do all of these

One of the benefits of planning is how it ____.

does none of these

A country or region that has an attractive business climate for companies that want to go global has ____.

easy access to growing markets

A manager striving to improve organizational ____ is accomplishing tasks that help fulfill organizational objectives.

effectiveness

First-line managers will most likely have to:

encourage, monitor, and reward the performances of their employees

Feedback can lead to stronger motivation and effort if it

encourages employees to set higher, more difficult goals after the initial goals are accomplished.

The most popular approach to increasing goal commitment is ____.

encouraging workers' participation in goal setting

A top manager for a management consulting firm would:

establish a positive organizational culture that encourages employees to be passionate about their clients

Quality is typically defined and measured in three ways. They are ____.

excellence, value, and conformance to expectations

Extrinsic rewards are ____.

exemplified by bonuses, trophies, and plaques

In expectancy theory, ____ is the perceived relationship between effort and performance.

expectancy

The balanced scorecard approach to control ____.

forces managers at each level of the company to set specific goals and measure performance in each of four areas

Process modification, material/product substitution, and ____ are the three strategies used for waste prevention and reduction.

good housekeeping

The two major approaches to corporate-level strategy are ____.

grand strategies and the portfolio strategy

McDonald's uses a ____ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich.

growth

For options-based planning to work, the organization must ____.

have slack resources

The normative decision theory ____.

helps leaders decide how much employee participation should be used when making decisions

Which of the following traits refers to the extent to which leaders are truthful with others?

honesty

A manager who wants to use reinforcement theory to motivate workers should first ____.

identify critical performance-related behavior

Which of the following is a major concern of leaders (as opposed to managers)?

inspiring and motivating others

Which of the following is NOT a step in the management by objectives (MBO) process?

jointly develop operational plans

Effective managers define ____ as the process of influencing others to achieve group or organizational goals.

leadership

An expatriate is someone who ____.

lives and works outside his or her own country

Economic value added (EVA) is so important because it ____.

makes managers at all levels pay much closer attention to how they run their segment of the business

____ is defined as getting work done through others.

management

Who is responsible for the creation of tactical plans?

middle managers

The three components of ____ are initiation of effort, direction of effort, and persistence of effort.

motivation

All of the following are important factors in the creation of an ethical business climate EXCEPT ____.

official approval of a company's ethics code by government regulators

There are three kinds of ____ plans. They are single-use plans, standing plans, and budgets.

operational

According to ____, leaders need to make clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals.

path-goal theory

What are the two types of political risk that affect companies conducting global business?

political uncertainty and policy uncertainty

The three stages of moral development identified by Kohlberg are ____.

preconventional level, conventional level, postconventional level

The two general categories of stakeholders are ____ stakeholders and ____ stakeholders.

primary and secondary

Which of the following factors helps a company determine the growth potential of a foreign market?

purchasing power

A(n) ____ resource is a resource that is not controlled or possessed by many competing firms.

rare

Which of the following is a basic component of equity theory?

referents

An organization that has ____ has the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

resources

Transactional leaders ____.

reward followers for good behavior and punish followers for poor behavior

the highest level of team autonomy is found in:

self-designing teams

Which of the following typically is NOT performed by top managers?

setting objectives consistent with organizational goals or planning and implementing subunit strategies for achieving these objectives

An organization that rewards its team members through gainsharing is ____.

sharing the financial value of performance gains

Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?

situational analysis

Ethical intensity depends on all of the following EXCEPT ____.

social commitment

____ is one of the disadvantages associated with the use of work teams.

social loafing

Which of the following statements about social responsibility and economic performance is true?

social responsibility can sometime create significant costs for a company

The two general kinds of trade barriers are ____.

tariff barriers and nontariff barriers

Which type of skills tends to be most important to the success of lower-level managers?

technical skills

The basic control process begins with ____.

the establishment of clear standards of performance

An often overlooked factor in determining the cost of control is ____.

unintended consequences that accompany increased control

According to the expectancy theory, ____ affect the conscious choices that people make about their motivation.

valence, expectancy, and instrumentality

Which of the following is one of the six steps in the rational decision-making process?

weight the criteria