Principles of Management Exam 1 Chapters 1-7

In preparation for being an ethical worker, you can practice being an ethical consumer. Which suggestion would you follow if you were an ethical consumer?

Buy Fair Trade goods.

________ refer(s) to the arrangement that ensures strategic goals align downward with more specific short-term goals.

Cascading goals

________ is the notion that corporations are expected to go above and beyond following the law and making a profit to help society.

Corporate social responsibility

Why should you encourage Derin to use groups to make decisions?

Groups have a greater pool of knowledge.

Dontrell and Ebony are expecting their first child this week, but Dontrell has an important meeting at corporate headquarters. To attend this meeting, Dontrell must take the train from Seattle to Vancouver, a trip that takes about four hours. While in Vancouver, Dontrell checks his phone each hour for updates and, as soon as Ebony goes into labor, he will able to return home to Seattle by airplane in less than two hours. Which important development allowed Dontrell to attend the birth of his first child?

He benefited from the rise of the global village.

The key idea that workers should be treated as assets was introduced by

Peter Drucker.

After the manager and employee work together to set the employee's objectives, what is the next step of MBO?

The employee should develop an action plan for meeting the objectives.

At Kaira's Caribbean Cuisine, Kaira improves focuses on efficiency by

advertising specials to use up food inventory that is nearing its expiration date.

Which level of strategy is concerned with how much to spend on marketing or whether to expand facilities?

business

A ________ is a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success, and a ________ outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses.

business plan; business model

Together, focusing on individual employee productivity and managing the overall firm comprise the ________ viewpoint.

classical

When Bedisa is analyzing underlying causes, she is engaged in

diagnosis.

Ravi, a supervisor, is known by his managers to be sharp in his decisions and has a good track record of meeting his goals. Ravi is a(n) ________ manager.

effective

The United States has prohibited the import of products from Iran due to the political situation in that nation. This complete ban is an example of a(n)

embargo.

Zahra, the human resources manager, has significant experience handling ethical issues in the workplace. Over the years she has received extensive training in matters of workplace ethics. Due to Zahra's legal background (she is a member of the state bar association), the management of her company rely on Zahra to assist them with legal issues, especially with ethical dilemmas. Her organization should appoint Zahra as the

ethics officer.

Chase's Chaises in Arkansas produces high-quality furniture and ships its products to customers in over 40 countries. Chase's Chaises is ________ its products.

exporting

A real estate development company is considering a deal to develop 1,000 condominium units. This deal largely rests on a __________ that the city's population will grow by 23% over the next decade.

forecast

Some examples of ________ are companies selling products, operating factories, and collaborating with partners in other countries.

globalization

Terrence's team is very close and tends to agree on most decisions with little discussion. Terrence should be concerned about

groupthink.

Colin, who is a paralegal for a powerful Manhattan law firm, likes the fast pace of his work and the fact that things are always changing there. Colin can be said to

have a high tolerance for ambiguity.

Sew Much Fabrics buys fine linens, silks, and other fabrics from sellers in more than 30 countries to retail to local customers. Sew Much Fabrics is an example of a company that

imports.

Fiorella, a recent college graduate in computer programming, is interested in several positions with global companies because she knows that working in other countries exhibits ________ to potential employers.

independence, resourcefulness, and entrepreneurship

The Pearsons decided to beautify their home by investing in a professional interior design. In the process, they dealt with employees from various departments of the design company, including a sales representative, a designer, the individuals who oversaw and did the work, and the office and billing personnel. From the systems perspective, the people required to provide the interior design services are considered

inputs.

In their ________ roles, managers interact with people inside their work units; while solving problems is part of their ________ roles.

interpersonal; technical

When Ramiro inspires his employees to do their best to help the organization meet its goals, he is

leading.

For a manufacturing company that set a strategic goal to reduce waste by 15%, each division in the organization can use the ________ to identify tactical goals that support waste reduction.

means-end chain

Which models of decision making describe how managers actually make decisions?

nonrational

Managers in a cosmetics factory have been having problems with employees starting cliques. To develop more of a team culture, the CEO suggested utilizing Mary Parker Follett's idea that companies should

operate as a community, with employees working in harmony.

According to the BCG matrix, stars are

organizations with high growth and high market share which are definite keepers.

Dominique and Isidora Wilson are wealthy entrepreneurs who are very interested in helping people who have been wrongly convicted of crimes. What philosophy would they choose to implement?

philanthropy

Snowcap Ice Cream produces over a dozen delicious ice cream flavors and a number of individually packaged frozen treats. Which of these strategies would represent vertical integration for Snowcap?

purchasing Mountain Dairy milk farm

Even though Sanjay faced multiple career setbacks, he now has earned his college degree and launched three successful businesses. Sanjay has demonstrated

resilience

Ethics are

standards of right and wrong that influence behavior.

When building a new hospital, the developer did not remove any trees, based on the belief that doing so could compromise the ability of future generations to meet their own needs. This is an example of managing for

sustainable development.

While setting up their corporation, Amadi and Amir implement a system of governing their organization so that the interests of corporate owners and other stakeholders are protected. Amadi and Amir have set up a

system of corporate governance.

To effectively run her company, Machi applies the ________, a management style the views her firm as an interdependent collection of departments, and as a single institution that interacts with suppliers, distributors, competitors, and customers.

systems viewpoint

For almost 20 years, Hank has been the top sales professional for Strickland Propane. He credits his success to following the first law of business, which is to

take care of the customer.

Selecting your management approach based on the situation and the people involved is applying

the contingency viewpoint.

In the third step of the strategic management process, managers should

translate the broad mission and vision into a corporate strategy.

Efficiency is ________, while effectiveness is ________.

using resources wisely; achieving results

When preparing for an interview, reading social media profiles or "About" pages on a company's website can help you understand

who holds important leadership positions.

The father of industrial psychology is

Hugo Munsterberg

Which scholar developed the global corporate social responsibility pyramid?

Archie Carroll

Emilio and Dylan are studying the strengths and weaknesses of their construction business, Construction Concepts, as well as researching the opportunities and threats in the external environment. They are conducting a

SWOT analysis.

When you encounter negative thoughts or sense that others are trying to elicit an emotional response from you, which key skill of being open-minded should you enact?

Watch for communication blocks.

After establishing the mission, vision, and values, what is the next step in strategic management?

assessing the current reality

To decide how much an insurance policy should cost a customer, underwriters use ________, such as historical industry trends and loan characteristics, to predict risk levels.

data analytics

A ________ is a graph of decisions and their possible consequences.

decision tree

The manager of a retail pharmacy stated that "the pharmacy will increase its profit margins." This is an example of a SMART goal

false

The toughest challenges to overcome with artificial intelligence are

implementation, data issues, and cost.

A nation's culture is the ________ common to its people.

shared set of beliefs, values, knowledge, and patterns of behavior

As the manager of Cut-Off Salon, LaVonne ensures the prices she charges exceed the cost of providing the services. She also switched the entire salon to carbon-neutral styling products. Which additional element of the triple bottom line should LaVonne consider?

social

The Berkshire Hathaway annual meeting, a famous yearly event, can be attended by any ________, which is someone who owns at least one share.

stockholder

________ managers believe that their native country, culture, language, and behavior are superior to all others.

Ethnocentric

As the CEO of a mid-size airline, Karyn knows that most commercial airplanes are manufactured by either Airbus or Boeing. To mitigate the ________ of the airline industry, Karyn explores options for her company to manufacture its own airplanes.

bargaining power of suppliers

A multinational corporation is a(n)

business firm with operations in several countries.

Which of the following lists represents the order of levels of strategy from the top of the organization downward?

corporate, business, functional

When Henry Ford implemented the assembly-line process to dramatically decrease the time and resources needed to make automobiles, he was pursuing a ________ strategy.

cost-leadership

To increase your ________, you could watch international films or attend seminars by culturally diverse speakers.

cross-cultural competency

An organization's external stakeholders include

customers, suppliers, strategic allies, and financial institutions.

When managing her oil and lube service, Sabrina engages in the controlling function when she

develops a loyalty reward program because the number of repeat customers has been declining.

If a company is using a ________, then more efficient workers earn higher wages.

differential rate system

Valentino is proud to work for a company with a strong ________ because he knows the organization supports ethical behavior.

ethical climate

The trend of the world economy toward becoming a more interdependent system is known as

globalization.

Strategic planning is critical, but without ________ it will be worthless.

implementation

The key reasons that an organization should adopt planning and strategic management are to

provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage.

Rosa hired Luis from Cajun College. He was an amazing employee and exceeded all her expectations. The next year, Rosa received an application for a job opening from another graduate from Cajun College. She was very excited to hire another outstanding candidate. Rosa has ________ bias.

representativeness

Basheer operates a business that smooths and finishes poured concrete floors, sidewalks, driveways, and pool decks. Basheer has been observing and timing each task undertaken by his workers because he would like to increase their efficiency. Basheer is engaging in ________ management.

scientific

Farrah, a regional manager for an HVAC equipment retailer, received an e-mail from the CEO outlining the new goal of decreasing company costs over the next three years. This is an example of a strategic goal.

true

In advance of opening his new gym, Ethan is writing an explanation of the reason for his business. Ethan is writing his mission statement.

true