principles of management quiz 1

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What is a tariff?

A tariff is a tax collected on goods shipped across national boundaries.

Pollack Food Services supplies meals for all the schools in the Culver City public school system. The school system students may be considered part of the _____ dimension of the task environment

customer

Tricon Oil is a major division of a global energy company with an oil exploration unit, a distribution unit, and a retail gas station unit. In order to demonstrate his commitment to _____, CEO Gary Jacobs serves on a task force dedicated to reducing carbon emissions by 50% before the year 2020.

social responsibility

Whenever Jena's Juice introduces a new flavor, the company donates five cents for each unit sold to fund breast cancer research. Jena's Juice is responding to what contemporary management challenge?

social responsibility

What is true regarding quality as a contemporary management challenge?

Enhancing quality lowers costs.

Small cash outlay and low risk are two advantages of _____.

importing or exporting

The Sarbanes-Oxley Act of 2002:

imposes tough measures to deter corporate and accounting fraud.

What is a key disadvantage to licensing agreements as an approach to internationalization?

inflexibility

Management science and operations management are the two branches of what management theory

quantitative

Supply chain management and enterprise resource planning are both management concepts that were developed within the _____ management perspective.

quantitative

BritTrek is a British bicycle company. If the United States has a policy that BritTrek can import only 400,000 bicycles into the United States each year, what type of trade restriction is being implemented?

quota

Which of the following is a part of an organization's general environment?

Interest rates

Which of the following is true of organizational culture?

It consists of a firm's set of values and beliefs.

Which of the following is accurate regarding organizational culture?

It is intangible in nature.

_____ interact with their environment.

Open systems

Who described job specialization in 35

Plato

What is an effective way to establish one common vision and direction for the merged firm?

Promote employees whose behaviors are consistent with the desired culture

Why is it important for managers to study history?

The historical context of management provides a sense of heritage and can help managers avoid the mistakes of others.

What is a theory?

a conceptual framework for organizing knowledge and providing a blueprint for action

Shari performs a general oversight function for Pollack Food Services, but is not actively involved in how the company is really run. Shari is most likely _____ of Pollack Food Services.

a member of the board of directors

Management can best be defined as

a set of activities directed at an organization's resources, with the aim of achieving organizational goals in an efficient and effective manner.

What area of classical management should you study to learn more about managing the total organization?

administrative

Culture can be maintained by:

articulating the culture through slogans and ceremonies.

An organization's culture:

can become a weakness.

When Wendy began a new job, included in her packet of information was a set of guidelines for how to act in accordance with the firm's values. These guidelines are the firm's _____.

code of ethics

JoAnn applied for a management position in her company. While interviewing JoAnn and speaking with her current supervisor, the hiring manager learned that JoAnn's was very good at transmitting ideas to others, coordinating work with peers and colleagues, and keeping higher-level managers informed. In other words, JoAnn excels at _____ skills.

communication

The _____ perspective suggests that universal theories cannot be applied to organizations because each organization is unique.

contingency

Tricon Oil is a major division of a global energy company with an oil exploration unit, a distribution unit, and a retail gas station unit. CEO Gary Jacobs is conducting a situational analysis in order to develop a five-year strategic plan. He is reviewing a summary of domestic GDP, inflation, and unemployment projections and trends. Jacobs is looking at potential growth patterns for _____ indicators.

economic

When the right decisions are made and implemented, the management process is considered to be _____.

effective

Many brick-and-mortar stores are facing challenges from online sales companies. According to systems theory, a primary objective of management at these traditional companies would be to keep pace with these changes in the marketplace in order to avoid _____.

entropy

What might occur to an organization when it does not monitor feedback from its environment and make adjustments as needed?

entropy

If a company creates a committee to review its guidelines concerning selection and promotion, it is attempting to manage social responsibility through what?

ethical compliance

CL Air is a young entrepreneurial firm which has sunk all of its available resources into the development of a high-tech clean air device. Because this technology is ideal for commercial settings, the company is planning to expand into emerging international markets where air quality is deteriorating due to industrial growth. The owners believe that speed to market is important. They also want to minimize their risks and maintain responsiveness to evolving market conditions. What level of international business activity is CL Air seeking?

exporting

The _____ environment is everything outside an organization's boundaries that might affect it.

external

Culture determines the organization's _____.

feel

What type of regulator is formed by its members to attempt to influence organizations?

interest group

The actual physical environment, such as an office or a warehouse, and the work that people do are all part of the _____ environment.

internal

The board of directors is part of an organization's _____ environment.

internal

An individual who gets along well with others at all levels in the organization is said to have good _____ skills.

interpersonal

Because operations management is less mathematical and statistically less sophisticated than management science,

it can be applied more directly to managerial situations.

Since the company's founding, the executives at Pollack Food Services have provided a consistent message to employees that customers, employees, communities where the company did business, and shareholders were all important. This is an example of what type of informal organization dimension of managing social responsibility?

leadership practices

What is often considered to be the most important and most challenging of all management activities?

leading

Terrence's responsibility at Pollack Food Services is to make sure that the company complies with all local, state, and federal laws in all areas—from the way the business is run to food handling regulations. Terrence is responsible for Pollack's _____.

legal compliance

Excessive transportation costs, government regulations, and home production costs might lead a firm to choose what approach to internationalization?

licensing

The managerial function of controlling involves:

monitoring an organization's progress toward its goals.

What a company stands for, how it does things, and what it considers important are all learned from the

organizational culture

What is an informal organization dimension of managing social responsibility?

organizational culture

Neil's department was recently assigned a new project. His next task on the project is to determine how his people and other resources will be allocated to the project. At this point, what managerial function is Neil tackling?

organizing

Jeremy bought stock in Pollack Food Services, giving him legal property rights to the business. Jeremey is now a(n) _____ of Pollack Food Services.

owner

Pollack Food Services donates food to the city's public library, which provides free lunch to children in the summer. Pollack is attempting to manage social responsibility through what?

philanthropic giving

Which of the following is a formal dimension of managing social responsibility for organizations?

philanthropic giving

Determinants of organizational culture include _____.

shared experiences

The culture at SilverCircle is quite weak. The management team changes often. Employees are not able to sense any direction or purpose for the company, and there is a high turnover rate. In contrast, employees at Wellesby speak very highly of the company. Many of them have worked there for years under the guidance of a steady management team. The differences in culture at the two companies are in part attributable to what?

shared experiences

Organizations relate to their environments in ways that often involve ethical dilemmas and decisions. These situations are generally viewed within the context of the organization's _____ responsibility.

social

Logan Chemicals has a long history of dumping waste in a local stream. Recently, it has made major efforts to reduce pollution in order to help clean up the environment. Logan Chemicals is responding to what contemporary management challenge?

social responsibility

Pollack Food Services supplies meals for all the schools in the Culver City public school system. Kellers Bakery provides all the bread and buns that Pollack uses in its meals. For Pollack, Kellers may be considered part of the _____ dimension of the task environment.

supplier

DynaView produced a cartoon program that became extremely popular. DynaView went on to create toys and games based on the characters in the program, launch a breakfast cereal featuring the program's characters, and start a line of children's clothing. All of these separate divisions within DynaView benefit from the success of the others. In this situation, according to the systems perspective, DynaView is benefiting from _____.

synergy

A(n) _____ is an interrelated set of elements functioning as a whole.

system

Pollack Food Services supplies meals for all the schools in the Culver City public school system. Jensen Meal Distribution has submitted a bid to Culver City to try to take over that contract. Jensen and Pollack exist in each other's _____ environment.

task

Tricon Oil is a major division of a global energy company with an oil exploration unit, a distribution unit, and a retail gas station unit. CEO Gary Jacobs is conducting a situational analysis in order to develop a five-year strategic plan. Airlines, storage tank producers, and strategic allies are all constituents or stakeholders in Tricon's _____ environment.

task

A business manufactures custom-ordered blinds. New software on its web site that allows customers to select size, colors, and other features to design their own blinds is part of the _____ dimension of its general environment.

technological

Tricon Oil is a major division of a global energy company with an oil exploration unit, a distribution unit, and a retail gas station unit. CEO Gary Jacobs is conducting a situational analysis in order to develop a five-year strategic plan. Over the next several years, Jacobs expects electric vehicles to impact revenues in the retail unit. This development is an example of the _____ dimension.

technological

Roberto is a strong believer in social responsibility, and wants his company to become more socially responsible. One of the arguments he makes is that

the company has surplus revenues that could be used to solve social problems.

An argument against social responsibility in organizations is that:

there is potential for conflicts of interest.

Corey is an operations manager for a privately owned Midwestern trucking company. During his recent annual performance review, Corey is credited for his strong ability to prioritize work, to work efficiently, and to delegate work appropriately. He is being praised for his _____ skills.

time management

Tina's responsibilities include creating organizational goals and overall strategy for the organization. In terms of her level in the organization, what type of manager is Tina?

top manager

Synergy refers to:

two or more subsystems working together to be more successful than working alone.

Renee is a manager at a mid-size hospital. She has basic familiarity with all functional areas necessary to manage the hospital. What type of manager is she?

Administrative

BritTrek is a British bicycle company with a unique design for its mountain bikes. It has made arrangements with firms in other countries in which those firms make bikes according to the BritTrek design, and market them as BritTrek bikes. Those firms pay a royalty to BritTrek for each bike sold. Which of the following best characterizes this arrangement?

BritTrek has licensing agreements with firms in foreign markets.

Keane Industries is a privately owned firm that manufactures and installs large, deep well digging equipment which can be operated with little technical expertise. The company has a cash surplus due to a highly profitable decade of sales in its domestic market. Now ready to enter foreign markets, the biggest priority for the owners is to maintain full control of any new operations. What level of international business activity is Keane Industries seeking?

Direct investment

_____ occurs when a firm headquartered in one country, purchases operating facilities in a foreign country.

Direct investment

_____ refers to a normal process leading to system decline.

Entropy

Sport clothing and equipment company JR Adventure just completed a merger with Totem T&G, a 100-year-old tennis and golf brand. Jacob Rain, founder of JRA, led the rapid growth of his firm in a creative and energetic setting. Job responsibilities are fluid, and employees are encouraged to collaborate on new ideas. Totem, however, has a long touted history of producing premium tennis and golf equipment. Its hierarchical structure and long-established markets mirror the traditional values of the company's early years. Despite the different corporate styles, similar organizational structures at the two firms will provide the opportunity to share distribution systems and corporate functions and achieve immediate cost savings for the combined company. What will be the greatest challenge of integrating the two companies?

Establishing a single organizational culture

_____ is the extent to which an organization follows basic standards of moral behavior.

Ethical compliance

_____ is an individual's personal beliefs about whether a behavior, action, or decision is right or wrong.

Ethics

The _____ is the first and most important international market system.

European Union

_____ developed the system of scientific management.

Frederick Taylor

Tate Inc. designs and produces a trendy line of small home appliances. International expansion is an important component of the company's growth strategy. As the management team considers the best approach for entering the Asian marketplace, what is one of the disadvantages of direct investment?

Greater political risk

To learn more about the early work in the development of management, a student may want to investigate the _____ studies spearheaded by Elton Mayo.

Hawthorne

What was Henri Fayol's contribution to the field of management?

He was the first to identify the specific managerial functions of planning, organizing, leading, and controlling.

_____ was administrative management's most articulate spokesperson.

Henri Fayol

What is the relationship between quality and productivity?

Improving quality tends to increase productivity because making higher-quality products generally results in less waste and rework.

What distinguishes the behavioral management perspective from earlier management theories?

It placed more emphasis on individual attitudes, behaviors, and group processes.

_____ are light assembly plants built in Northern Mexico close to the U.S. border and are given tax breaks by the Mexican government.

Maquiladoras

Ira is a manager at a textile company. He and his staff are focused on accounting, cash management, and investment activities. In which area of the company does Ira work?

Marketing

The United States, Canada, and Mexico entered into what agreement to eliminate barriers to trade among them?

NAFTA

Corey is a manager for a privately owned Midwestern trucking company. He was recently approached by Tara, whose department has been closely monitoring on-time performance. Tara is concerned about the rise in credits that are being issued to customers for late truck arrivals. Which area of the organization does Tara work in?

Operations

_____ managers are concerned with creating and managing the systems that create an organization's products and services.

Operations

What is a Theory X assumption?

People prefer to be directed and to avoid responsibility.

Which of the following is a dimension of an organization's task environment?

Regulator

Whose works should you study if you want to understand the origins of the recognition of the importance of human resources and the personal welfare of workers?

Robert Owen

_____ management deals with improving the performance of individual employees.

Scientific

Who created the popular comic strip Dilbert to illustrate some of the absurdities that occur in the contemporary office?

Scott Adams

_____skills are necessary to accomplish or understand the specific kind of work done in an organization.

Technical

Elaine got a job teaching an introductory management course at a local college. Elaine assumed that, like her, all of her students would want to earn the highest grades possible and that would motivate them to do their best work. She was surprised to discover that many students were happy to just "get by" with an average grade. However, when Elaine demonstrated how extra effort on certain coursework could translate into experience that could lead to a better job after graduation, a number of "average" students began to work harder. Elaine's experience is consistent with what view of management?

The contingency perspective

Renee believes that people naturally do not like work. As a manager, she feels that she must control, direct, coerce, and even threaten her employees to get them to work towards the organization's goals. Renee's management style is informed by what view within the behavioral management perspective?

Theory X

_____ is a pessimistic and negative view of workers consistent with the views of scientific management.

Theory X

William believes that people view work as a natural part of their lives. As a manager, he feels that he can get the best out of his staff by creating an environment in which they will seek and accept responsibility and where they will receive personal rewards when they reach certain goals. William's management style is informed by what view within the behavioral management perspective?

Theory Y

What is generally true about management theories that are used to build organizations and guide them to their goals?

They are grounded in reality.

What is a current trend in international business?

U.S. firms are finding that international operations are an increasingly important element of their sales and profits.

Janel runs a mid-sized agricultural company operating in an emerging economy. She faces conditions of rapid growth and labor supply shortages. The lessons of classical management theory suggest that Janel needs to _____ in the organization.

achieve higher productivity

FLASH is a large technology company headquartered in the Ohio Valley. In a recent venture to pursue new revenue streams and access new customers, FLASH has acquired VOM, a startup company located in Silicon Valley. VOM has developed a new technology and needs an infusion of cash to scale up production and expand into overseas markets. FLASH has a strong training program that develops young executives and plans to establish a new top management team to staff and lead the acquisition's expansion. The need to provide structure and direction to enable a growing group of middle managers to plan, organize, lead, and control calls for a(n) _____ management perspective within the new top management team.

administrative

In some countries, it is expected that people shake hands when they are introduced. In other cultures, the appropriate action is to bow slightly or to exchange business cards. These are examples of _____ processes that vary in a global economy.

behavioral

GoldLeaf and HappyFarms are both grocery stores. They serve the same geographic area, and both emphasize fresh produce, natural foods, and whole foods. Their prices are similar, and consumers switch back and forth between them based upon weekly specials. GoldLeaf and HappyFarms are _____.

competitors

Math-A-Mazing is a company that offers tutoring services in all areas of math. In addition to tutors in its store-front locations, it also develops and sells software to teach math. The marketing director feels that more resources should be invested in the store front locations, while the development director feels the emphasis should be on software development and internal competition to drive sales. Each of these approaches would have a different impact on the organizational culture. In this situation, culture problems have arisen out of what?

growth of rival factions

Janel runs a mid-sized agricultural company operating in an emerging economy. She faces conditions of rapid growth and labor supply shortages. If Janel adopts the principles of behavioral management theory, she is most likely to employ _____ to address her immediate concerns.

industrial psychology

Rights to privacy has become an area of concern involving ethics and _____.

information technology

Who or what is generally the starting point of an organization's culture?

its founder

William has mathematical models that he relies on at the start of each new project to determine how to allocate the resources within his department. William is making use of _____.

management science

Stephen just got promoted and now has the title of Division Head. In terms of his level in the organization, what type of manager is Stephen?

middle manager

Math-A-Mazing is a company that offers tutoring services in all areas of math. In addition to tutors in its store-front locations, it also develops and sells software to teach math. Math-A-Mazing requires all employees to wear something math-related to work every day. They help by providing pins, scarves, and caps printed with numbers or math signs. Employees can wear one of these items or come up with their own. According to the company, this policy makes the company a fun and exciting place to work. This management decision affects the _____.

organizational culture

Who or what could you study to see an early example of staff organization used to coordinate activities during military campaigns?

Alexander the Great

_____ skills refer to the manager's ability to correctly recognize and define problems and opportunities.

Decision-making

Juan used to supervise the drapery design department at a textile company. He recently made a lateral move in the company, and now oversees the bedding department. He was talking about his new position with a friend, and mentioned that the management style he used in his former department is falling flat with his new staff. They do not seem to respond to the same sorts of incentives, and he is looking for new ways to motivate and encourage them. Juan's experience is consistent with what view of management?

The contingency perspective

Karen believes that a single set of rules should be applied to all employees in all situations, with no variation. Juan, on the other hand, feels that employees and situations are unique. Rules should either be written with options to apply to different situations or, ideally, they should be flexible. Juan's position is best aligned with what view of management?

The contingency perspective

In a single organization, members of the sales staff always wear business attire, while the product development staff dresses more casually. What does this illustrate?

The same culture is not found throughout the organization.

Math-A-Mazing is a company that offers tutoring services in all areas of math. In addition to tutors in its store-front locations, it also develops and sells software to teach math. Math-A-Mazing has a casual dress code, and encourages employees to wear fun clothing to encourage creativity in development and look "fun" in the tutoring environment. Math-A-Mazing recently bought out HighSchoolHelp, a small company that offers tutoring to high school students. HighSchoolHelp has a formal business dress code to promote professionalism and authority. The former HighSchoolHelp employees are uncomfortable adhering to their new dress code as part of Math-A-Mazing. In this situation, culture problems have arisen out of what?

an acquisition

JoAnn applied for a management position in her company. After interviewing JoAnn and speaking with her current supervisor, the hiring manager rejected JoAnn for the position. She told JoAnn that JoAnn had not yet demonstrated the ability to think in the abstract and did not seem to grasp how all the parts of the organization fit together, and gave JoAnn some advice on how to improve these skills. JoAnn is being told to work on her _____ skills.

conceptual

Sam is the supplies purchaser for his office. Pelcon Supplies offers a competitive price on the copier paper Sam needs to buy, so Sam did not look for a less expensive supplier. Sam's brother is a sales rep at Pelcon, and receives a commission on Sam's account. What can occur in this scenario?

conflict of interest

Corey is an operations manager for a privately owned Midwestern trucking company. He spends the first day of each month reviewing the previous month's productivity levels. This basic management function is known as _____.

controlling

In light of recent ethical standards in which the boards of major companies have approved loans or bonuses to CEOs or board members, increased attention has been paid to _____.

corporate governance

Many managers are facing an increased work pace, less time to think through a decision, and more information to process. This can all be tied to what contemporary management challenge?

new technology

Neil is known to take a very scientific approach to management. When making decision, he seems to be _____.

objective

Selecting the course of action that would most likely lead to success would be included in which management function?

planning

When considering the basic management functions, decision making is part of what process?

planning

Allison is currently a first-line manager, and wants to move up into middle management. What job title should she look for when looking at her company's internal job postings?

plant manager

Car manufacturers must meet certain emissions standards as dictated by the federal and state governments. This requirement is an aspect of what dimension of the general environment?

political-legal

Jordan discovered that many of his employees were deliberately working at a pace lower than their capabilities in order to get more hours. Learning from the work Frederick W. Taylor, Jordan implemented a piecework pay system based on output in order to eliminate _____.

soldiering

BritTrek is a British bicycle company. It is looking for quick entry into foreign markets with access to materials available in those markets. Which approach to internationalization would best fit its needs?

strategic alliances

As part of the task environment, _____ work together in joint ventures or similar arrangements.

strategic partners

Cut'n'Clip hair salon has opened locations inside many SilverCircle stores. In this situation, what are Cut'n'Clip and SilverCircle to each other?

strategic partners

According to the systems perspective, the marketing, production, or finance functions of a company would all be considered _____ within the overall organization.

subsystems

BritTrek is a British bicycle company. It produces its mountain bikes in England and sells them throughout North America. Which of the following best characterizes this arrangement?

BritTrek is exporting its products to North America.

BritTrek is a British bicycle company. It expanded into South America by purchasing a small bicycle production company in a South American country to handle production and distribution. Which of the following best characterizes this arrangement?

BritTrek wholly owns subsidiaries in South America.

A disadvantage of direct investment is:

greater economic risk.

FLASH is a large technology company headquartered in the Ohio Valley. In a recent venture to pursue new revenue streams and access new customers, FLASH has acquired VOM, a startup company located in Silicon Valley. VOM has developed a new technology and needs an infusion of cash to scale up production and expand into overseas markets. FLASH has a strong training program that develops young executives and plans to establish a new top management team to staff and lead the acquisition's expansion. Anticipating the need to attract employees in this energetic and innovative region with new and different incentives suggests the importance of instilling a(n) _____ management perspective within the new top management team.

behavioral

FLASH is a large technology company headquartered in the Ohio Valley. In a recent venture to pursue new revenue streams and access new customers, FLASH has acquired VOM, a startup company located in Silicon Valley. VOM has developed a new technology and needs an infusion of cash to scale up production and expand into overseas markets. FLASH has a strong training program that develops young executives and plans to establish a new top management team to staff and lead the acquisition's expansion. The many uncertainties facing the top management team at VOM point toward the need for a(n) _____ management perspective amongst the new managers.

contingency

The language, values, symbols, and beliefs that guide behavior in a country are that country's _____.

cultural environment

The availability of natural resources and the variation in government regulation are just two of the challenges posed by _____.

globalization

Neil's department has come in behind schedule on its last three projects. Neil studied the project specifications and schedules, along with resource allocations, to look for the causes. He determined that initial specifications did not always match up with the actual demands of the project, meaning that department resources were not properly allocated and schedules could not be met. Neil introduced a project start-up procedure that would gather more information in order to verify the accuracy of the specifications before the schedule was written and the resources allocated. This scenario illustrates Neil's _____ skills.

diagnostic

What type of manager would be responsible for supervising and coordinating the activities of operating employees?

first-line manager

The purchasing department at a printing business begins buying higher quality and more expensive paper. This leads to higher costs and cash flow problems identified by the finance department. Marketing notes that prices must be increased slightly, but that customer satisfaction improves, leading to more sales. According to the systems perspective, this scenario is an illustration of the _____ of subsystems.

interdependence

Sport clothing and equipment company, JR Adventure, just completed a merger with Totem T&G, a 100-year-old tennis and golf brand. Jacob Rain, founder of JRA, led the rapid growth of his firm in a creative and energetic setting. Job responsibilities are fluid, and employees are encouraged to collaborate on new ideas. Totem, however, has a long touted history of producing premium tennis and golf equipment. Its hierarchical structure and long-established markets mirror the traditional values of the company's early years. Despite the different corporate styles, similar organizational structures at the two firms will provide the opportunity to share distribution systems and corporate functions and achieve immediate cost savings for the combined company. Within which environment will JR Adventure and Totem T&G employees discover what the merged organization will stand for, how it will do things, and what it considers important?

internal environment

Tricon Oil is a major division of a global energy company with an oil exploration unit, a distribution unit, and a retail gas station unit. CEO Gary Jacobs has just conducted a situational analysis and developed a five-year strategic plan. The process revealed many demands that an increasingly sophisticated and educated public are making on oil companies. In response to these heightened expectations, he has decided to create a fund to restore environmental conditions in retired oil fields. This action is an example of _____.

philanthropic giving

Alacorp wants to open a new plant, and has narrowed it down to three possible cities. Dan's job is to investigate the deed and zoning restrictions of each potential location, as well as the tax rates. Dan also must report on each city council's history in working with new business. Dan is focusing on which dimension of the general environment?

political-legal

Janel runs a mid-sized agricultural company operating in an emerging economy. She faces conditions of rapid growth and labor supply shortages. Despite offering an abundance of management decision-making tools and techniques, the amount of time needed to develop a competence in _____ management techniques makes this an unlikely approach to address Janel's immediate organizational needs.

quantitative

Unlike the theories that came before it, the contingency perspective is not a _____ perspective because it does not try to identify a single best way to manage organizations.

universal

Employees at Pollack Food Services are expected to report any suspected illegal or unethical conduct by members of the organization. This is a policy that encourages _____.

whistleblowing

Theo works for a data mining company. He recently discovered a co-worker who has knowingly breached the company's online privacy policy to complete an important project for his manager. If Theo decides to report this breach, his actions will be considered _____.

whistleblowing


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