Practice Test 2 for Principles of Management CLEP

A group with which of the following characteristics would be the most effective group? a. A cohesive group without groupthink. b. A noncohesive group with groupthink. c. A noncohesive group without groupthink. d. A noncohesive group that is in accordance with company goals. e. A cohesive group with groupthink.

a. A cohesive group without groupthink.

Which of the following individuals would have staff authority? a. A department assistant who can approve employee requests for vacation days b. An intern who assists an executive by reviewing film clips c. A secretary who organizes a manager's filing system d. A team leader who delegates work to a dozen team members e. A manager who can deliver a directive to another manager's department

a. A department assistant who can approve employee requests for vacation days

Which of the following is an example of an extrinsic reward? a. A trip b. Self-esteem c. A sense of achievement d. A feeling of mastery over work e. Confidence

a. A trip

The Delphi technique involves which of the following? a. A written questionnaire b. Nominal group technique c. Groupthink d. Brainstorming e. A decision tree

a. A written questionnaire

Which of the following is an example of an e-business based on a transaction fee model? a. An online retail store that sells apparel b. A social marketing site supported by advertising c. A training site that charges members a monthly fee d. A job search site where employers pay to post job listings e. An academic journal that offers free access to online articles

a. An online retail store that sells apparel

Which of the following is an example of a tool that organizations commonly use for financial planning? a. Budget b. Job analysis c. Work schedule d. Organizational charts e. Procedure

a. Budget

Lou assumes that a colleague of an advanced age has dated outlooks on issues. What error of perception is he exhibiting? a. Classifying b. Projection c. Selective perception d. Pygmalion effect e. Self-serving bias

a. Classifying

According to Larry Greiner's organizational development theory, which phase of growth is dominated by an organization's founders and their focus on building a product and a market for it? a. Creativity b. Direction c. Collaboration d. Delegation e. Control

a. Creativity

Who created the concept of the "Theory X" manager and "Theory Y" manager? a. Douglas McGregor b. Frederick Taylor c. Frank Gilbreth d. Max Weber e. Henri Fayol

a. Douglas McGregor

Which of the following statements about employees in an organization is MOST often true? a. Employees like to be empowered. b. Employees do not like to have to learn new job skills. c. Employees try to avoid increased responsibility. d. Employees are only concerned with their salaries and benefits packages. e. Employees dislike having supervisors.

a. Employees like to be empowered.

A mature company would be LEAST focused on which of the following? a. Expansion b. Improving efficiency c. Increasing profits d. Maintaining customers e. Promoting a stable environment

a. Expansion

Which of the following is one of the basic principles of TQM (Total Quality Management)? a. Focus on the customer. b. Get products on the market as soon as possible, then focus on quality. c. Make improvements at certain critical points throughout the year. d. Discourage teamwork. e. Focus on only a few functional areas of the organization.

a. Focus on the customer.

If it appears that a company's financial management activities have deviated from standard procedures, what would be the best course of action for the company to take? a. Get an external audit b. Revise the procedures c. Draft a new budget d. Review income statements e. Alter balance sheets

a. Get an external audit

Preparation of a budget primarily involves which two managerial functions? a. Planning and controlling b. Organizing and leading c. Planning and staffing d. Leading and planning e. Organizing and controlling

a. Planning and controlling

Which management school involves the use of techniques such as statistics and computer simulations to aid in managerial decision-making processes? a. Quantitative management b. Contingency management c. Behavioral management d. Quality management e. Classical management

a. Quantitative management

Which of the following bodies oversees regulation of U.S. stock market activities? a. Securities and Exchange Commission (SEC) b. Food and Drug Administration (FDA) c. Office of Federal Contract Compliance Programs (OFCCP) d. Interstate Commerce Commission (ICC) e. Health Services Resource Administration (HRSA)

a. Securities and Exchange Commission (SEC)

A mediation is characterized by a. a third party being invited to facilitate a resolution of a dispute b. a third party being empowered to decide how a dispute will be resolved c. a refusal by management to recognize a collective bargaining representative d. two parties working cooperatively to resolve a dispute e. a group of employees issuing a formal statement of complaint to management

a. a third party being invited to facilitate a resolution of a dispute

If an employee receives non-financial compensation such as vacation time or medical insurance, it is called a a. benefit b. bonus c. reimbursement d. budget e. kickback

a. benefit

A program that coordinates an organization's employment needs with its employees' career plans is known as a. career development b. job enrichment c. job enlargement d. organizational development e. job rotation

a. career development

An organization that is focused on retaining authority at its top-tiers is said to be a. centralized b. flexible c. organic d. decentralized e. informal

a. centralized

Organizations define information as a. data processed in a meaningful way b. all facts and figures relevant to the business c. anything extracted from printed material or downloaded from the internet d. all facts that have been validated by a fact checker e. any data that is gathered from the internal and external environments

a. data processed in a meaningful way

The type of power that is based in a manager's own knowledge and skills set is known as a. expert power b. legitimate power c. reward power d. coercive power e. referent power

a. expert power

Redesigning a job so that the position includes a greater variety of tasks, and is invested with greater responsibility and authority is known as a. job enrichment b. job enlargement c. job orientation d. job rotation e. job sharing

a. job enrichment

An organizational policy is an example of a(n) a. operational plan b. strategic plan c. tactical plan d. contingency plan e. single-use plan

a. operational plan

A collaborative strategy for conflict resolution makes an effort to a. satisfy all parties involved in a conflict b. withdraw from the conflict c. defer to the party with the most authority d. take the side of the underdog in the conflict e. design a competition that will determine the winning party

a. satisfy all parties involved in a conflict

The Program Evaluation and Review Technique (PERT) process identifies the critical path as the a. set of dependent tasks that together take the longest time to complete b. decision-making technique that shows a complete picture of several alternative decision paths c. consistent line of relationships from the top to the bottom of an organization d. simplified replication of an actual situation or program e. systems that collect, organize and distribute data in a useful and relevant way

a. set of dependent tasks that together take the longest time to complete

At a certain organization, upper management prepares a budget and passes it down to lower-level employees. This arrangement is an example of a. top-down budgeting b. bottom-up budgeting c. zero-based budgeting d. lateral budgeting e. inflexible budgeting

a. top-down budgeting

Two coworkers sharing a job, one working the morning hours and the other the afternoon hours is an example of a. twinning b. job orientation c. work specialization d. mentoring e. job enlargement

a. twinning

Each of the following is one of Geert Hoftstede's value dimensions EXCEPT: a. Power distance b. Analysis capacity c. Uncertainty avoidance d. Masculinity e. Collectivism

b. Analysis capacity

Which of the following is the first stage of moral development? a. Upholding universal moral principles b. Being obedient to avoid punishment c. Meeting expectations to gain approval d. Acting contrary to cultural expectations e. Defining humanitarian moral agendas

b. Being obedient to avoid punishment

Which of the following techniques implements change by isolating those forces that drive the change and those that resist it? a. Payback analysis b. Force-field analysis c. Decision analysis d. Financial-ratio analysis e. Job analysis

b. Force-field analysis

Which of the following pairs developed a model regarding the differences in the way that people make decisions? a. Frank and Lillian Gilbreth b. Isabel Myers and Katherine Briggs c. Elton Mayo and F. J. Roethlisberger d. Max Weber and Henri Fayol e. Abraham Maslow and Frederick Herzberg

b. Isabel Myers and Katherine Briggs

Which of the following is NOT a characteristic of continuous-process production? a. It relies heavily on equipment. b. It employs a large labor force. c. It creates goods by transforming raw materials. d. It has a flexible structure. e. It utilizes a highly automated system.

b. It employs a large labor force.

According to the systems management theory, which of the following would be considered to be an output? a. Money b. Services c. Raw materials d. Workers e. Technology

b. Services

Which of the following is an example of a personal outcome? a. Service contracts sold b. Team member commitment c. Overtime hours invested d. Products designed e. Advertisements generated

b. Team member commitment

Which of the following is NOT a benefit of a cross-functional team structure? a. Managers get experience in a variety of fields. b. Team members already have experience working together. c. There is a high level of cooperation and communication among departments. d. Managers get on-the-job training for higher-level management positions. e. Decisions are made quickly.

b. Team members already have experience working together.

The operations management process begins with its attention focused on which of the following? a. Raw materials b. The customer c. Machinery d. Products e. Human resources

b. The customer

Effective communication between two parties accomplishes which of the following results? a. Both parties agree on an issue. b. The message sent and the interpretation of that message by the receiver are the same. c. Only of the parties speaks at a time. d. One party concedes his or her opinion on an issue. e. The message is delivered in a clear and concise manner.

b. The message sent and the interpretation of that message by the receiver are the same.

The process known as the means-ends chain ensures that a. financial activities are being managed according to company guidelines b. accomplishment of low-level goals leads to the accomplishment of high-level goals c. there is a consistent line of relationships from the top to the bottom of an organization d. an organization's tasks are divided into separate jobs. e. the ends justify the means

b. accomplishment of low-level goals leads to the accomplishment of high-level goals

A skills test administered to a job candidate should NOT a. be administered to more than one candidate at once b. assess specific specialized skills that are not job-relevant c. contain a non-written component d. take place away from the job site e. take longer than an hour

b. assess specific specialized skills that are not job-relevant

Exclusive groups of individuals that form naturally in an organization are called a. teams b. cliques c. grapevines d. departments e. mobs

b. cliques

A company that quickly replicates designer garments worn at awards shows, then sells them at a fraction of the cost of the original items, is employing a a. differentiation strategy b. cost leadership strategy c. contingency strategy d. single-use plan e. bureaucratic procedure

b. cost leadership strategy

ISO 9000 Certification indicates that a company a. measures an employee's performance against designated standards b. maintains a high level of quality c. conducts formal investigation at regular intervals to ensure that financial activities are being managed according to company guidelines d. collects, organizes and distributes data in a way that the information produced is useful and relevant to a manager e. determines which alternative will pay back an initial investment most quickly

b. maintains a high level of quality

The final stage in an organization's change process that involves reinforcement of new behaviors is known as a. unfreezing b. refreezing c. changing d. freezing e. reheating

b. refreezing

A force of change directed toward inhibiting the solving of an organization's problem is known as a a. driver b. resister c. status quo d. mission statement e. quota

b. resister

Which of the following is closest to the percentage of women in the U.S. workforce? a. 25% b. 35% c. 50% d. 73% e. 79%

c. 50%

Which of the following would be the best first course of action to take with an employee who is consistently late? a. Dock the employee's pay. b. Threaten to terminate the employee. c. Communicate with the employee regarding the issue. d. Offer the employee a flextime schedule. e. Require the employee to work overtime in the evening.

c. Communicate with the employee regarding the issue.

Which of the following strategies for managing conflict involves each party giving up something that it wants in order to acquire something else that it wants? a. Avoidance b. Smoothing c. Compromise d. Confrontation e. Collaboration

c. Compromise

In which of the following regional economic blocs do member countries share a single currency? a. European Free Trade Association (EFTA) b. North American Free Trade Agreement (NAFTA) c. European Union (EU) d. MERCOSUR e. South Asian Free Trade Area (SAFTA)

c. European Union (EU)

Which of the following best describes a situation where two international firms make a long-term commitment to develop major products and utilize one product marketing strategy for all markets? a. Wholly-owned subsidiary b. Joint venture c. Global strategic partnership d. Exportation e. Embargo

c. Global strategic partnership

The managerial function of staffing is most likely to involve which department? a. Marketing b. Sales c. Human resources d. Production e. Customer service

c. Human resources

Outsourcing affords an organization the opportunity to do which of the following? I. Increase the workload of in-house staff II. Increase overall work output III. Decrease overall costs a. I only b. II only c. II and III only d. I and II only e. I, II, and III

c. II and III only

Which of the following would be the best first course of action to take with an employee whose productivity and interest in her job are slipping? a. Demote the employee. b. Threaten to fire the employee. c. Involve the employee more in decisions that affect her assignments. d. Assign the employee tasks that are truly unfavorable. e. Transfer the employee to another department.

c. Involve the employee more in decisions that affect her assignments.

Which of the following statements about organizational authority is NOT accurate? a. It is based on one's position. b. All those in the same position have the same authority. c. It flows up the vertical hierarchy. d. Subordinates accept it. e. Subordinates believe that managers have legitimate rights to issue orders.

c. It flows up the vertical hierarchy.

Which of the following collects, organizes and distributes data in a way that the information produced is useful and relevant to a manager? a. ISP b. LAN c. MIS d. TQM e. URL

c. MIS

Which of the following would result in employees becoming less empowered? a. The organization becoming more organic. b. Employees being less strictly monitored. c. Management becoming more centralized. d. Jobs being more flexibly designed. e. The organization moving away from a procedure-based environment.

c. Management becoming more centralized.

Which of the following is an economic obligation of a socially responsible business? a. Maintain high ethical standards b. Uphold societal expectations c. Operate the business profitably d. Contribute to specific charities e. Prioritize community service

c. Operate the business profitably

Which of the following focuses specifically on familiarizing new employees with their jobs? a. Computer-based games b. Experiential programs c. Orientation training d. Diversity training e. Recruiting process

c. Orientation training

A manager is planning a promotion commemorating the 50th anniversary of the company. What kind of plan is this? a. Contingency plan b. Strategic plan c. Single-use plan d. Tactical plan e. Long-term plan

c. Single-use plan

Which of the following statements about flexible scheduling is valid? a. Employees can decide their schedules from day to day. b. Employees do not have to commit to working a certain number of hours per week. c. Some employees may end their work days earlier than other employees may. d. Employees can select their own assignments. e. Employees never have to actually come into the office itself.

c. Some employees may end their work days earlier than other employees may

An organization that both affects and is affected by constant change on a regular basis can be described as a. a closed system b. synergy c. an open system d. entropy e. a subsystem

c. an open system

According to the National Labor Relations Act, it is permissible for a union to a. compel workers to become union members b. refuse to bargain in good faith with an employer c. bargain collectively for workers through representatives of their own choosing d. charge whatever union dues it deems necessary e. insist that an employer punish a worker that doesn't get along with the union

c. bargain collectively for workers through representatives of their own choosing

When a young business is ready to organize activities into departments, it should a. create as many specific departments as possible b. create one or two large general departments c. group activities that logically go together into as many departments as necessary d. construct a hierarchical chain of command for each department e. create a department around each of the top executives

c. group activities that logically go together into as many departments as necessary

Coercive power stems from a. personal leadership characteristics of an individual that command respect from subordinates b. a manager's own knowledge and skills set c. the authority to punish in ways such as demoting or firing employees d. the authority granted to a formally assigned position e. the authority to reward subordinates with promotions, raises, recognition and interesting opportunities and assignments

c. the authority to punish in ways such as demoting or firing employees

Which of the following approaches to problem solving focuses on the successful aspects of a situation or concern? a. Optimizing b. Bounded rationality c. Satisficing d. Appreciative inquiry e. Brinkmanship

d. Appreciative inquiry

A rise in productivity resulting from workers being given privileges would attest to the success of which of the following management theories? a. Quantitative management theory b. Contingency management theory c. Quality management theory d. Behavioral management theory e. Classical management theory

d. Behavioral management theory

Which of the following industries is NOT part of a dynamic environment? a. Fashion b. Computer c. Music d. Carpet e. Film

d. Carpet

TQM (Total Quality Management) works best in which kind of structure? a. Bureaucratic b. Formal c. Centralized d. Decentralized e. Mechanistic

d. Decentralized

Which of the following is an example of a directly interactive force in a manager's external environment? a. Unemployment rates b. Trade regulations c. Tax legislation d. Employee union e. Minimum wage law

d. Employee union

An organizational leader responsible for securing the financial resources to carry out an innovative project is known as which of the following? a. Creative backer b. Product champion c. Technical innovator d. Executive champion e. Concept architect

d. Executive champion

W. Edwards Deming's system known as the Fourteen Points states that an organization should institute which of the following to achieve TQM (Total Quality Management)? I. A new philosophy II. Training III. Numerical quotas a. I only b. II only c. II and III only d. I and II only e. I, II, and III

d. I and II only

Which of the following demonstrates a company's ability to generate cash? a. Activity ratio b. Debt ratio c. Profitability ratio d. Liquidity ratio e. Marketing ratio

d. Liquidity ratio

A summer intern is aware that her manager thinks that she is lazy and she therefore acts accordingly. What is this situation an example of? a. Projection b. Classifying c. Selective perception d. Pygmalion effect e. Stereotyping

d. Pygmalion effect

Which of the following situations would indicate that there is a problem with the unity of command in an organization? a. Organizational tasks are divided into different jobs. b. Exclusive groups of individuals have formed in the organization. c. Managers have a large number of employees answering to them. d. Some employees have two or more supervisors to whom they are directly accountable. e. The organization is focused on retaining authority at its top-tiers.

d. Some employees have two or more supervisors to whom they are directly accountable.

A six-month long incentive plan developed by a middle manager would be an example of which kind of plan? a. Strategic plan b. Contingency plan c. Operational plan d. Tactical plan e. Single-use plan

d. Tactical plan

Which of the following would be most likely to increase an employee's acceptance of a control measure? a. The control measure being articulated in a memo from the CEO b. Harsh punishments if the employee does not accept the control measure c. The control measure being initiated company-wide d. The employee's involvement in the decision to institute control measure e. The control measure being in accordance with company policy

d. The employee's involvement in the decision to institute control measure

Which of the following is a multinational approach where a company purchases either all of or controlling interest in a foreign company? a. Joint venture b. Global strategic partnership c. Exportation d. Wholly-owned subsidiary e. Embargo

d. Wholly-owned subsidiary

The term "lateral move" is synonymous with a. employee discharge b. employee turnover c. employee layoff d. employee transfer e. employee demotion

d. employee transfer

According to the Blake-Mouton managerial grid model, the country club leadership style is characterized by a. low-level concern with people and low-level concern with production b. low-level concern with people and high-level concern with production c. equal concern with people and production d. high-level concern with people and low-level concern with production e. high-level concern with people and high-level concern with production

d. high-level concern with people and low-level concern with production

The Traditional view of conflict argues that conflict a. is healthy for an organization b. should be resolved with a win-win resolution c. fosters more cohesive teams and departments d. should be avoided e. leads to greater productivity

d. should be avoided

Decisions regarding the day-to day operations of a particular department are made by a. top-level executives b. mid-level managers c. human resources d. supervisors e. mediators

d. supervisors

Individuals in the lowest level of management in an organization are known as a. trainees b. executives c. middle managers d. supervisors e. interns

d. supervisors

All of the following are examples of a feedforward control EXCEPT a. A restaurant manager checking expiration dates on food to be served b. A children's bookstore manager reading selections that she plans to sell c. A retail manager ensuring that there's sufficient inventory for a big sale d. A department manager proofreading his assistant's transcription of his memo before sending it out e. A vice-president reviewing a regional manager's demonstration at a conference

e. A vice-president reviewing a regional manager's demonstration at a conference

Which of the following is an example of mentoring? a. Two employees sharing a single job. b. A factory employee performing a single assembly-line task on a repeated basis. c. The temporary assignment of different people to different jobs. d. A position being redesigned to include a greater variety of tasks. e. An experienced individual providing guidance to a less experienced individual.

e. An experienced individual providing guidance to a less experienced individual.

Downsizing at a firm would most likely result in which of the following? a. A decrease in employee workloads b. An increase employee morale c. An increase in employee loyalty to the firm d. An increase in available resources e. An increase in layoffs

e. An increase in layoffs

What kind of managerial structure is advisable when unexpected issues arise frequently? a. Mechanistic b. Bureaucratic c. Formal d. Hierarchical e. Decentralized

e. Decentralized

Among the following steps involved in a decision-making process, which would be the first step? a. Identify limiting factors b. Establish an evaluation and control system c. Develop potential alternatives d. Implement the decision e. Define the problem

e. Define the problem

Work schedules can serve as tools for accomplishing which of the following? a. Allocating funds that will be spent on a project b. Delineating the tasks that constitute a job and the way in which these tasks should be performed c. Determining the qualifications that are necessary for a certain position d. Collecting, organizing and distributing data in a way that the information produced is useful and relevant to a manager e. Ensuring that a project is completed by a certain deadline

e. Ensuring that a project is completed by a certain deadline

Which of the following would be an example of a concurrent control in an electronics retail store? a. Phoning customers a month after a transaction to see if they are satisfied with their purchase b. Screening salesperson applicants by checking references c. Carefully inspecting inventory for defects d. Tabulating how many sales each salesperson makes per month e. Having the store manager monitor the salesperson's interactions with customers

e. Having the store manager monitor the salesperson's interactions with customers

Organizations use results of performance reviews to determine whether an employee should be the recipient of which of the following? I. A promotion II. A raise III. Additional training a. I only b. II only c. I and II only d. I and III only e. I, II, and III

e. I, II, and III

Which of the following does the Equal Opportunity Employment Commission define as sexual harassment? I. Sexually suggestive comments II. Sexual advances III. Unwanted touching a. I only b. II only c. III only d. I and II only e. I, II, and III

e. I, II, and III

A school superintendent mandates that teachers begin attending professional development seminars about standardized testing. What kind of change does this mandate represent? a. Short-term b. Process-oriented c. Structural d. Strategic e. People-centered

e. People-centered

Which of the following is NOT an example of how a manager can employ boundary spanning? a. Access customer feedback b. Gather information from trade publications c. Conduct an internal analysis d. Get updates from industry associations e. Revise company policies

e. Revise company policies

Which of the following would NOT be an example of changes in a hotel manager's external environment? a. Inflation b. A competitor opening down the block c. A linen supplier going out of business d. A technological advancement e. Revisions made in company policies

e. Revisions made in company policies

The Industrial Revolution began in which of the following countries? a. United States b. Singapore c. China d. Japan e. United Kingdom

e. United Kingdom

A situation where trade to a particular region or country is prohibited is known as a(n) a. tariff b. quota c. exchange rate d. infrastructure e. embargo

e. embargo

Two department supervisors comparing notes to ensure that they are not duplicating work is an example of a. downward communication b. upward communication c. circular communication d. improper communication e. horizontal communication

e. horizontal communication

Organic structures are characterized by a. highly defined roles b. high reliance on procedure c. slow decision making d. centralized authority e. informal delegation

e. informal delegation

Organic structures are characterized by a. highly defined roles b. highly defined tasks c. centralized control d. formal channels of communication e. informal means of delegation

e. informal means of delegation

A manager's span of control refers to a. the number of suppliers with whom the manager works b. the number of departments over which the manager has some control c. the amount of space which the manager's department fills d. the chain of command of which the manager is a part e. the number of employees who report directly to the manager

e. the number of employees who report directly to the manager