BUS 315 Final Study Guide
Which of the following is an example of technical skills? a) accounting manager must know current tax reporting regulations b) manager reviews an employee's work performance c) a manger tries to determine whether an employee's poor performance is a result of drug or alcohol addiction d) a manager responds to a hostile environmental group concerning the use of chemicals e) a manager discusses a customer's complaint about a perceived deficiency in a product
A (p. 14)
Of the factors that affect decision making, which one is based on years of practice and experience that enable managers to identify alternatives quickly without conducting a systematic analysis of alternatives and their consequences? a) intuition b) emotion and stress c) framing d) escalation of commitment e) satisficing
A (p. 202)
When a company is relatively small or produces only one or several closely related goods or services, it likely will have what type of structure? a) functional b) multidivisional c) hybrid d) customer division e) geographic division
A (p. 234)
Among the internal forces causing organizational change are: a) owners b) competitors c) suppliers d) customers e) substitutes
A (p. 292)
According to the situational leadership theory, a leader's style should be contingent on: a) subordinates' competence and commitment b) the demands of the situation c) personal power d) how leaders affect subordinates' perceptions of their personal and work goals e) organizational power
A (p. 328)
Which of the following is a contextual influence on group effectiveness? a) level of autonomy in decision making b) peripheral norms c) formality of the group d) amount of information sharing e) number of meetings
A (p. 399)
Which problem in groups is characterized by an individual maneuvering to try to gain an advantage in the distribution of organizational rewards or resources? a) politics b) abiline paradox c) conformity d) role ambiguity e) free-riding
A (p. 401)
Whose concern for devotion to service in the business system and call for "morality in the habits of industry" made him a pioneer in the area of business ethics and corporate social responsibility as they are studied in management today? a) henry grantt b) morris l. cooke c) max weber d) elton mayo e) douglas mcgregor
A (p. 41)
A reality or fact of life in many corporations is that: a) the CEO often exerts control over the board of directors b) the directors do not know their legal responsibilities c) the board of directors runs the show d) the board of directors plays a major role in the hiring of all employees e) stakeholders do not play an important role
A (p. 80)
Customers, suppliers, employees, regulators, investors, and communities are examples of: a) primary stakeholders b) secondary stakeholders c) regulators d) organizational alliances e) corporate governance
A (p. 82)
A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business defines: a) national business b) global business c) international business d) local business e) regional business
B (p. 130)
The step in the planning process that involves determining the extent of the organization's resources and the firm's working relationship with its suppliers, financial backers, and consumers is: a) creating the mission statement b) assessing the current situation c) stating goals d) evaluating the gap between current position and goals e) specifying assumptions about the future
B (p. 162)
Which of the following is an advantage of group decision making? a) one or more group members may lead the discussion b) participants in group decision making are more likely to accept the decision c) groups generally take more time to reach a decision than individuals d) groupthink makes it more likely that the group will reach a decision e) group participants can feel pressure to confirm
B (p. 211)
Which of the following issues was NOT among the developments in Western culture that set the stage for the systematic study and teaching of management? a) the protestant ethic b) the stagnation of technological innovation c) capitalism and the division of labor d) the industrial revolution e) the productivity problem
B (p. 33)
When group members exhibit such behaviors as setting group standards, encouraging, and gatekeeping, they are performing which group role? a) task-specialist role b) group-maintenance role c) antigroup role d) boundary-spanning role e) cohesiveness role
B (p. 383)
Which stage of group development is characterized by group members asserting their roles, jockeying for leadership positions, and making known their feelings about a task? a) forming b) storming c) norming d) performing e) adjourning
B (p. 387 388)
A person who is rewarded or is not punished for unethical behavior: a) probably will not repeat the action b) definitely will not repeat the behavior c) is likely to repeat the behavior d) is likely to be fires e) will resolve conflict within the work group
C (p. 105)
Which of the following is one of the four stages of social responsibility? a) an ethics audit b) whistle blowing c) financial viability d) opportunity e) compliance
C (p. 109)
Which of the following is one of the four rights highlighted in JFK's 1962 consumer bill of rights? a) right to purchase b) right to achieve c) right to choose d) right to listen e) right to privacy
C (p. 114 115)
Most business people engaged in international trade underestimate the importance of: a) trade barriers b) language barriers c) social and cultural differences d) import quotas e) infrastructure
C (p. 131)
The attribute sought, the target to be achieved, an index to measure progress, and a time frame are all components of a: a) SWOT analysis b) portfolio analysis c) goal d) matrix e) strategy
C (p. 163)
The step in the planning process that involves determining alternatives, evaluating alternatives, selecting an alternative, and specifying the steps is: a) stating goals b) specifying assumptions about the future c) creating the plan d) implementing the plan e) evaluating the results of the plan
C (p. 168)
Which level of strategy attempts to answer the question, "given our particular market/product, how do we best compete?" a) societal b) corporate c) business d) functional e) product
C (p. 175)
Cost-benefit analysis and determining "pros and cons" are methods for which step of the decision making process? a) identifying the problem b) generating alternative courses of action c) evaluating the alternatives d) selecting the best alternative e) implementing the decision
C (p. 196)
In an organization chart, what denotes communication channels between positions that are the same authority level? a) different colors b) interconnected diamonds c) horizontal lines d) vertical lines e) diagonal lines
C (p. 222)
Leaders and managers are said to differ in a number of ways. Which of the following describes leaders more so than managers? a) they are involved with such tasks as job structuring, training, and delegating b) they take care of the more pragmatic matters related to employees c) they influence the activities of an individual or a group toward the achievement of a goal d) they spend much of their time managing organizational systems to provide stability and avoid chaos e) they set goals, implement appropriate action steps to achieve those goals, and allocate resources accordingly
C (p. 319)
Researches at Ohio State Univ. discussed what two major categories of leadership behavior? a) referent and expert behaviors b) autocratic and participative behaviors c) consideration and initiating-structure behaviors d) passive and active behaviors e) employee-centered and job-centered behaviors
C (p. 325)
Which of the following is an assumption of scientific management? a) employers and employees have conflicting interests associated with economic gain b) humans are rational beings and spiritually motivated c) for everyone willing to work hard, there is a job for which they are ideally suited according to their mental and physical traits and abilities d) workers should be able to select the job they want to do and then learn it through trial and error e) workers should determine methods and rates of pay
C (p. 38-39)
What is one way managers can minimize the effects of politics? a) keeping important information to themselves b) generating destructive competition c) promoting team goals and rewards d) showing favoritism e) encouraging competition for limited outcomes
C (p. 402)
The functional definition of management and the comprehensive list of general principles of management are attributed to: a) w. edwards deming b) mary parker follett c) henri fayol d) chester barnard e) peter drucker
C (p. 43)
A good or service that can be used in place of those produced by a business is usually called a: a) synthetic good b) competitive good c) substitute good d) technological improvement e) counterfeit good
C (p. 77)
An activity that seems to be important for the effective performance of all the major management functions is: a) evaluating negative and positive employee performance b) dividing the organization into sensible departments c) gathering and processing appropriate information d) staffing the company with competent employees e) providing appropriate compensation
C (p. 8)
In the US, if a businessperson brought an elaborately wrapped gift to a prospective client on their first meeting, it might be viewed as: a) appropriate b) normal c) a bribe d) a thoughtful gift e) expected
C (p. 99)
In which of Mintzberh's management role categories is the manager both protecting and sing the unit's assets: money, time, material and equipment, human resources, data, and reputation? a) negotiator b) disturbance handler c) monitor d) resource allocator e) disseminator
D (p. 11)
The step in the planning process where the organization goes from the "thinking" mode to the "doing" mode is: a) evaluating the gap between its current position and goals b) specifying assumptions about the future c) creating the plan d) implementing the plan e) evaluating the results of the plan
D (p. 169)
Which of the following is a disadvantage of group decision making? a) groups bring too much information to the situation b) groups often generate too many alternatives c) groups provide an opportunity for intellectual stimulation d) there is no clear focus of decision responsibility e) group members understand why the decision was made, making it less likely that they will accept the decision
D (p. 211 212)
Which of the following is a disadvantage of specialization? a) workers develop and utilize unique skills and knowledge b) the available labor pool for any job is large c) training costs are reduced d) it reduces work to its lowest common denominator e) specialized equipment can be developed profitability
D (p. 226)
Which environment is one in which the organizations has a large markets for its product and has the funds needed to continue operations readily available? a) steady environment b) scarce environment c) stable environment d) munificent environment e) turbulent environment
D (p. 246)
The phase in Lewin's model of organizational change that involves disrupting the forces that keep an organization functioning at a certain level is called: a) freezing b) reacting c) innovating d) unfreezing e) moving
D (p. 297)
One situation where there might be particular resistance to change is when an organization attempts to introduce a new product, method, process, or approach, called: a) a quantum change b) a reactive change c) an incremental change d) an innovation e) a transition state
D (p. 301)
According to the adaptation of the leadership grid, the management style that emphasizes employee satisfaction, often to the detriment of work goal accomplishment is: a) impoverished management b) team management c) low touch management d) high touch management e) middle-of-the-road management
D (p. 326)
The aging of the population of the United States is an example of the: a) task environment b) organizational environment c) legal environment d) general environment e) global environment
D (p. 69)
A group of firms or nations that agree to act as a monopoly and not complete with each other is known as a: a) joint venture b) franchise c) strategic alliance d) countertrade agreement e) cartel
E (p. 135)
All of the following are examples of infrastructure except: a) airfields b) communication systems c) schools and hospitals d) utilities and power plants e) shopping malls
E (p. 140)
An often unconscious application of the way things are done in one's own culture and experiences to making global business decisions is called: a) a strategic alliance understanding b) global strategizing c) outsourcing d) a joint venture agreement e) the self-reference criterion
E (p. 149)
Which statement is true of upper managers? a) they are concerned with the direct production of items or delivery of service b) examples of their job titles are product manager, department head, plant manager, and quality control manager c) technical skills are especially important to upper managers d) they train and monitor the performance of their subordinates e) they spend most of their time planning and leading
E (p. 17)
When managers communicate the basic beliefs that define success of employees in the organization, they are focusing on which component of organizational culture? a) heroes b) rites and rituals c) cultural network d) symbols e) values
E (p. 20)
Which of the following is one of the rules for brainstorming? a) each member independently writes down his or her ideas for possible problem solutions b) results of the first questionnaire are compiled at a central location c) in round-robin fashion, each member takes a turn presenting a single idea to the group d) each member individually and silently ranks the ideas in priority order on a secret written ballot e) criticism is not allowed
E (p. 209)
Which of the following is a disadvantage of multidivisional structure? a) decision making authority may be delegated b) those closest to the action make the decisions that will affect them c) it tends to promote loyalty and commitment among those making the decisions d) work tends to be more innovative and creative e) it creates work duplication
E (p. 237)
Which of the following is a major type of planned organizational change? a) changes in certainty b) changes in the external environment c) changes in stakeholders d) changes in resistance e) changes in people processes and culture
E (p. 294 295)
Which of the following is a feature of organizational development (OD)? a) OD deals with a single individual or function within a system b) OD uses computer-systems or operations-research types of change approaches c) OD involves planned change in the more rigid sense of organizational planning d) OD focuses exclusively on people processes e) OD focuses on improving organizational effectiveness, in terms of both productivity and quality of work life
E (p. 307)
Which of the following sources of a manager's power is least likely to get commitment from a subordinate? a) referent power b) expert power c) legitimate power d) charisma power e) coercive power
E (p. 320)
Which of the following was a contribution of the Hawthorne studies? a) factory management has a spiritual dimension as well as an economic dimension b) employees are basically unrelated individuals assigned to perform individual tasks c) the hawthorne studies promoted a clear understanding of the role of formal groups in organizations d) feeling valued at work and having trust in the organization are not important to most workers e) human relations and the social needs of workers are a crucial aspect of business management
E (p. 49)
Businesses' involvement in forming public policy is an element of the: a) sociocultural dimension of the general environment b) technological dimension of the general environment c) economic dimension of the general environment d) global dimension of the general environment e) political-legal dimension of the general environment
E (p. 72)
Managers have an obligation to ensure that their ethical decisions are consistent with: a) company values b) company codes of ethics c) company policies d) community and legal standards e) all of the above
E (p. 99)
T/F. SWOT analysis is an implementation activity in the strategic management process.
False (P. 172)
T/F. In the management role category Mintzberg called liaison, the manager acts as a public official for the company at formal activities.
False (p. 11)
T/F. Air pollution results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation
False (p. 116)
T/F. The Foreign Corrupt Practices Act allows selected American firms desiring international trade to form monopolies to compete with foreign cartels.
False (p. 136)
T/F. A common reason for establishing an embargo is to prohibit dumping.
False (p. 138)
T/F. Multinational corporations operate on a worldwide scale, but retain significant ties to one nation or region.
False (p. 145)
T/F. Managers exhibit the specific skill of initiative when they clearly and consistently express a point of view on a topic being discussed.
False (p. 15)
T/F. Different levels or types of managers are concerned with the same time frames in the planning process.
False (p. 159)
T/F. A contribution of the administrative model of decision making is its recognition that people make decisions with logic and rationality.
False (p. 198)
T/F. Of the various group decision making techniques, the nominal group technique is unique because it never allows group members to have face-to-face contact.
False (p. 209)
T/F. Nonprofit organizations must pay taxes on profits and may be bought and sold.
False (p. 21)
T/F. The behavioral approach to job design is based on the assumption that increasing job specialization and division of labor increases an organization's overall productivity.
False (p. 227)
T/F. As an organization grows in size, its overall structure tends to become less complicated.
False (p. 244)
T/F. Kurt Lewin devised the congruence model of change, which describes change as consisting of three phases (unfreezing, moving, and refreezing)
False (p. 297)
T/F. The change process begins by preparing people for change
False (p. 299)
T/F. The earliest approaches to the study of leadership focused on the process of influencing others
False (p. 323)
T/F. One of the strengths of Fred Fiedler's contingency theory is the strong research-based support that substantiates the use of his Least Preferred Coworker Scale to measure leadership style
False (p. 330 331)
T/F. Charismatic leadership behaviors cannot be learned
False (p. 335)
T/F. Free-riding tends to increase as group size decreases
False (p. 385)
T/F. When a group member exhibits low assertiveness and high cooperation, he/she is using a collaborating style for dealing with conflict
False (p. 397)
T/F. A stake can be of three basic types: an equity interest, a market interest, or a boundary-spanning interest.
False (p. 83)
T/F. Increased uncertainty in the external environment usually corresponds to more levels of management, fewer employees involved in decision making, and more policies and procedures.
False (p. 88 89)
T/F. Business ethics and the study of ethical decisions stay within a framework of legal issues
False (p. 97)
T/F. The greater the reward or the smaller the punishment for unethical behavior, the greater is the likelihood that unethical behavior will recur
True (p. 105)
T/F. The percentage of household spending on food is considerably lower in the US than in India.
True (p. 139)
T/F. The World Bank loans funds to countries throughout the world for reconstruction and development.
True (p. 141)
T/F. In general, conceptual skills require a high level of intellectual ability in information processing and decision making.
True (p. 15)
T/F. In general, organizations that cannot assume stability plan for shorter time periods and review and redesign plans more often than organizations that can assume stability.
True (p. 167)
T/F. The last two steps in planning process are implementation and evaluation.
True (p. 169)
T/F. As a rule, a firm will formulate its strategy to capitalize on its greatest strengths and to keep its organizational weaknesses from being exploited by competitors and other factors in the environment.
True (p. 173)
T/F. Managers all too often shortchange the step of generating alternative courses of action in the decision making process because they are in search of a "quick fix."
True (p. 196)
T/F. In the language of decision making, confidence is a manager's faith that his or her decisions are reliable and good.
True (p. 206)
T/F. One of the reasons for the prevalence of group decisions making in today's business world is that many decisions require more specialized knowledge than one person usually possesses.
True (p. 207 208)
T/F. Job enlargement is aimed at increasing the number of tasks that comprise a job.
True (p. 227)
T/F. No one is an organization can be expected to be responsible for something over which he or she has no authority.
True (p. 230)
T/F. If an organization's environmental characteristics can be described as munificent and stable, the organization is likely to use a multidivisional or mechanistic structure.
True (p. 247)
T/F. The 3 groups most affected by management activities are the manager, the manager's immediate subordinates, and the manager's organization.
True (p. 3)
T/F. In the long run, getting employee participation in change decisions and increased involvement in all aspects of the change may be the single best method to overcome resistance
True (p. 302)
T/F. For change to be successful, leaders of change must identify key stakeholders and then develop support within the key political groups
True (p. 304)
T/F. Legitimate power, reward power, and coercive power are all organizationally based sources of power
True (p. 319 320)
T/F. The path-goal theory of leadership states that two categories of situational factors determine appropriate leadership behaviors: (a) employees' personal characteristics and (b) environmental pressures and demands with which the employee must cope to accomplish the goal
True (p. 331)
T/F. The factors that influence the effectiveness of work groups most directly are those found within the group or team, including its structure and process
True (p. 381)
T/F. Regardless of the type or size of a group, none will be successful without the right mix of skills and abilities
True (p. 386)
T/F. The four methods through which norms develop over time include explicit statements of group leaders, critical events in a group's history, first behaviors, and past experiences
True (p. 390 391)
T/F. Recent trends in American business indicate that many organizations are "flattening" the organizational hierarchy and eliminating many of the technical managers.
True (p. 80)
T/F. Stockholders elect the corporate board of directors, who represent the stockholders and are charged with ensuring that the corporation is being managed so as to increase stockholder wealth.
True (p. 80)
T/F. The degree of change dimension of the external environment refers to the extent that the external environment is relatively stable or relatively dynamic.
True (p. 88)
T/F. Business ethics refers to the principles, values, and codes of conduct that define acceptable behavior in business
True (p. 97)
T/F. Learning to recognize ethical issues is the most important step in understanding ethics in management
True (p. 98)