Management Test 1

A recent study by the AFL-CIO stated that today the average annual pay for top executives at over 300 major U.S. companies was _____. $120,000,000 $12,000,000 $12,000 $120,000

$12,000,000

Peter Drucker is known to have scolded modern executives because he thought CEOs should receive no more than 20 times what the rank-and-file worker makes, whereas recent studies indicate top-level executives in the U.S. now make _____ times the average worker's wage. 11000 110 1100 11

1100

_____ is best knows for developing the concept of the Hierarchy of Needs. Max Weber Abraham Maslow Elton Mayo Henri Fayol

Abraham Maslow

Business ethics is a subset of the field of ethics that focuses on the ethical issues you will likely face as a _____. Business student Business teacher Business manager Business investor

Business manager

The position at the top of the organizational chart for most large business organizations is called the _____. Manager Leader Chief Executive Officer President

Chief Executive Officer

_____, who lived in China around 550 B.C., said, "To see what is right and not to do it is want of courage." Plato Aristotle Socrates Confucius

Confucius

The former Vice Chairman of Enron, Cliff Baxter, is now _____. President of NASDAQ Serving 50 years in prison for fraud Retired and living in Naples, Florida Deceased, an apparent victim of suicide

Deceased, an apparent victim of suicide

_____ is famous for developing the concepts of Theory X and Theory Y. Douglas McGregor Max Weber Henri Fayol Mary P. Follett

Douglas McGregor

The Law of Effect was formulated by _____ in 1911. Victor Vroom Edward Thorndike Douglas McGregor Edward R. Murrow

Edward Thorndike

_____ is considered the Father of the Behavioral Approach to Management. Max Weber Elton Mayo Henri Fayol Adam Smith

Elton Mayo

_____ is the study of what people in a culture consider right and wrong. Management Ethics Morals Leadership

Ethics

The approaches to motivation used by managers do not apply to students. FALSE TRUE

FALSE

A good way for business managers to make up for conducting their day-to-day business affairs in an unethical and ruthless manner is to donate money to charity. True False

False

A recent survey of 43,000 high school students revealed that today's students are highly ethical. True False

False

A weakness is defined as the opposite of an opportunity. True False

False

In the U.S. Army a platoon is typically composed of 16-44 soldiers led by a captain. True False

False

Our Declaration of Independence asserts people are born without rights. True False

False

The purpose of ethics education is to change bad people into good people. True False

False

Through the centuries, the predominant ethical system often has belonged to the culture with the weakest army. True False

False

Very small organizations of less than 25 employees are typically organized functionally. True False

False

When executives at Ford Motor Company used cost-benefit analysis to compute the cost of losing a wrongful death lawsuit versus the cost of recalling the Ford Pinto to prevent fires, they were being ethical. True False

False

_____ is considered the Father of Scientific Management. Adam Smith Frederick W. Taylor Ford W. Harris Walter A. Shewhart

Frederick W. Taylor

Having studied the various theories of motivation presented in Chapter 1, which statement below best summarizes how managers should motivate their employees? When employees need to be motivated it is best to remind them who is boss and that their paycheck depends on them doing whatever the boos commands them to do. Nothing motivates like money so offer to pay them more if they do what you want. Get to know and respect your employees as individuals and use intrinsic rewards whenever possible. Assume your employees have the same needs as you do and offer to reward them with the type of rewards you desire for yourself.

Get to know and respect your employees as individuals and use intrinsic rewards whenever possible.

The _____ Theory states that people have conscious goals that energize them and direct their behavior toward a particular end. Expectancy Goal-setting Law of Effect Theory Y

Goal-setting

_____ is known as the Father of Administrative Management and his 14 Principles of Management suggested there could be a field of management separate from the type of industry being managed. Peter Drucker W. Edwards Deming Henri Fayol William Ouch

Henri Fayol

The study of ethics helps us think about _____. How to be a successful leader How to think How to be a successful manager How to avoid prison

How to think

Having a good idea is not good enough; business leaders also need to be _____. Implementers Cost conscious Profit driven Organizers

Implementers

Which of the following was NOT one of the four parts of Deming's System of Profound Knowledge? Knowledge of how to apply statistical methods to measure and control variation. Appreciation of their business as a system with feedback that seeks a steady state. Knowledge of psychology and sociology. Knowledge of human nature.

Knowledge of psychology and sociology.

_____ is famous for furthering the work of her husband following his death going on to study workplace efficiency and was the subject of the movie, Cheaper by the Dozen. Laura Mussara Margaret Alberte Mary P. Follett Lillian Gilbreth

Lillian Gilbreth

_____ is called the Mother of Conflict Resolution. Laura Mussara Mary P. Follett Margaret Alberte Lillian Gilbreth

Mary P. Follett

The book, The Practice of Management, was one of the first textbooks about the field of management and was authored by _____. Stephen F. Hallam Steven Ash Peter F. Drucker William Ouchi

Peter F. Drucker

_____ is a word with Greek roots defined as "the love of wisdom." Philosophy Morality Euthanasia Ethics

Philosophy

Niccolo Machiavelli wrote The _____ about _____ years ago to encourage the leaders of Florence to be more forceful. Boss, 500 Leader, 200 Prince, 500 Manager, 2,500

Prince, 500

According to Winston Churchill, the price of greatness is _____. Long hours Hard work Education Responsibility

Responsibility

The former president of the National Association of Securities Dealers Automated Quotations (NASDAQ) is now _____. Serving 150 years in prison for fraud President of Dow Jones Deceased Retired and living in Naples, Florida

Serving 150 years in prison for fraud

_____, who lived in Greece around 470 B.C., is supposed to have replied to the question of what is ethics with, "Ethics is about how we ought to live." Confucius Socrates Plato Aristotle

Socrates

Ethics is a branch of philosophy involving the _____ of what people consider right and wrong behavior whereas morality is concerned with the _____ of good ethics. Study, study Morality, performance Philosophy, study Study, performance

Study, performance

According to Maslow's Hierarch of Needs, managers may be focused on self-actualization for themselves, but some of their employees may be focused on lower-level needs such as providing food and shelter for themselves and their families. TRUE FALSE

TRUE

Managers should be careful not to simply reward "yes men" and "yes women" and instead look for ways to recognize those workers who will take a risk and question existing procedures. FALSE TRUE

TRUE

In addition to writing Wealth of Nations in 1776, Adam Smith wrote _____ in 1759 stating that real capitalists should operate out of sympathy, courage, duty, benevolence, and self-respect, not _____. The Theory of Moral Sentiments, greed The 14 Principles of Management, greed The Wealth of Ethics, greed The Economic Control of Quality, leadership

The Theory of Moral Sentiments, greed

Adam Smith's famous work, _____, put forth the concept of The Law of _____. The Wealth of Nations, Supply and Demand The Theory of Moral Sentiments, Capitalism and Free Markets The Theory of Moral Sentiments,Supply and Demand The Wealth of Nations, Effect

The Wealth of Nations, Supply and Demand

Instead of blaming the workers, Deming pointed out that many aspects of the production process are beyond the control of the individual worker. True False

True

John Kennedy said, "For those to whom much is given, much is required." True False

True

Large corporations such as GE and GM used to have around 25 to 30 levels in their organizational charts but today have many fewer. True False

True

Many planning projects begin with a problem such as the company not growing as fast as key individuals would like. True False

True

Milton Friedman, economist and Nobel Prize winner, is noted for saying, "There is one and only one social responsibility of business--to use its resources and engage in activities designed to increase its profits..." True False

True

Most organizations, in addition to the formal structure, have an informal or grapevine structure. True False

True

Most people find it nearly impossible to trust those who disrespect them. True False

True

One of the original reasons for the construction of organizational charts was the introduction of the assembly line where workers stayed in one place while the product being assembled moved along a conveyer so workers were unable to converse with other workers farther down the assembly line. True False

True

The ethical dilemmas facing business leaders present great challenges because they must make the best decisions quickly in the face of strong competition. True False

True

The symbol of justice, Lady Justice, is depicted as blindfolded because she is supposed to be blind to everything but the facts and the law. True False

True

What is popular is not necessarily what is right. True False

True

When a person assumes the position of manager or executive, there is an implied duty to protect that organization and the people within it from harm and to steer a course that is in the best interests of the entire organization. True False

True

When executives at Johnson & Johnson removed all capsules of Extra-Strength Tylenol at a cost of over $100 million, they were being ethical. True False

True

_____ was the American statistician who attempted to convince American business leaders to apply his statistical methods to industrial quality control but was more successful in Japan than in the U.S. Peter Drucker William Ouchi Henri Fayol W. Edwards Deming

W. Edwards Deming

_____ published Economic Control of Quality, a book that, although it was published in 1931, is still considered a classic in the field of quality control. Walter A. Shewhart Frederick W. Taylor Adam Smith Ford W. Harris

Walter A. Shewhart

Sun Tzu's book, The Art of _____, written over 2,500 years ago, still provides principles that appply to practically all forms of management and leadership. Influence Management War Leadership

War

Theory _____ perceives employees as naturally motivated to do a good job. Z X C Y

Y

_____ means a person has the power and the right to make decisions, give orders, draw on resources, and do whatever else is necessary to fulfill the responsibility. accountability delegation responsibility authority

authority

The first test of whether a prospective employer is ethical is _____. a focus on what the law allows their religious affiliation charity benevolence

benevolence

Which of the following was NOT one of Deming's 14 key principles managers should follow to make their businesses more effective? create constancy of purpose. buy from the lowest bidder. drive out fear in the workplace do on-the-job training

buy from the lowest bidder.

Having a good idea is not good enough; business leaders also need to be _____. a) Cost conscious b) Profit driven c) Implementers d) Organizers

c) Implementers

_____ is the term used to express the percentage difference between the cost of the good being sold and the selling price. a) Net profit b) Net sales c) Margin d) Dividend

c) Margin

In a(n) _____ organization important decisions are made at the top of the organizational structure with little or no input from below. decentralized staff centralized line

centralized

According to Mary P. Follett, " _____ is the curse of the universe; _____ the enrichment and the advancement of every human soul." management, leadership coactive power, coercive power power-with, power-within coercive power, coactive power

coercive power, coactive power

General Electric is a good example of the _____ strategy. conglomerate globalization differentiation low-cost provider

conglomerate

Follett taught that people can gain power over others through brute force but genuine power comes from working with people in a _____ mode rather than a _____ mode. command, humanistic command, cooperative leadership, management cooperative, command

cooperative, command

_____ refers to the procedures that link the various parts of an organization to achieve the organization's overall mission. differentiation division of labor integration coordination

coordination

Peter Drucker is knows for suggesting that the main goal of a business is not to make a maximum profit, but rather to meet the needs of _____, thereby making a profit as a by-product. stockholders customers citizens investors

customers

SMART goals are _____. a) Specific, Measurable, Attainable, Reliable, and Timely b) Timely, Relevant, Attainable, Measurable, and Scientific c) Attainable, Relevant, Timely, Specific, and Meaningful d) Timely, Relevant, Attainable, Measurable, and Specific

d) Timely, Relevant, Attainable, Measurable, and Specific

Cadillac is a good example of the _____ strategy. low-cost provider acquisition concentration differentiation

differentiation

The assignment of different tasks to different people or groups is called _____. coordination differentiation division of labor integration

division of labor

The assignment of different tasks to different people or groups is called _____. coordination integration division of labor differentiation

division of labor

The _____ organizational structure is really a collection of types of divisional groupings based on product, customer, or geographic region. virtual matrix functional divisional

divisional

The _____ organizational structure is really a collection of types of divisional groupings based on product, customer, or geographic region. divisional matrix functional virtual

divisional

Good managers and good leaders have a highly developed sense of what is _____. ethical legal acceptable to investors profitable

ethical

According to Blaise Pascal, "Men never do evil so completely and cheerfully as when they do it _____." for money and power from a religious conviction for power for money

from a religious conviction

The _____ organization is organized around basic business functions such as purchasing, manufacturing, marketing, finance, information technology, and human resources. functional divisional matrix network

functional

The _____ organization is organized around basic business functions such as purchasing, manufacturing, marketing, finance, information technology, and human resources. network divisional functional matrix

functional

Avon is a good example of the _____ strategy. Boston Consulting Grooup globalization acquisition conglomerate

globalization

All but one of the following are the main reasons business planners have to be flexible and allow for mid-course changes in plans. government regulations change available resources such as money and people-power change changes in technology customers preferences change rapidly

government regulations change

According to Donald Trump, "No matter how you fire people, the result is always the same. They will _____." cry fear you hate you sue

hate you

Nicccolo Machiavelli's contribution to modern management theory is the concept that leaders _____. have the right to be a tyrant when the situation demands it need to be ruthless need to be feared have a responsibility to protect and defend their followers

have a responsibility to protect and defend their followers

Your aim in studying Chapter 1 Motivation should be to go beyond motivating and discover how to _____. inspire yourself and others to do their absolute best gain power and position within large corporations capture the enormous salaries of executives get an "A" in this course without reading the textbook

inspire yourself and others to do their absolute best

Giving employees additional task to do to relieve boredom and increase their chances for a promotion is called _____. intrinsic motivation job rotation job enlargement job motivation

job enlargement

Which of the following was NOT on of Deming's seven deadly diseases of management? emphasis on short-run profits lack of mobility of management excessive medical costs lack of constancy of purpose

lack of mobility of management

A(n) _____ position is one where the manager has direct responsibility for a principle activity of the firm. line decentralized staff centralized

line

The _____ organizational structure is a combination of the functional and divisional structures where some employees report to two superiors. divisional matrix functional virtual

matrix

An organizational structure that is rigid and inflexible is called _____. virtual organic matrix mechanistic

mechanistic

The _____ organizational structure is a web-like collection of organizations that work together to produce a good or a service. matrix network functional divisional

network

An organizational structure that is more informal and uses teamwork where managers work more like coaches than bosses is called _____. matrix organic mechanistic virtual

organic

_____ involves determining where an organization is today, where it could be in the future, and what it will take to get there. leading planning controlling organizing

planning

Follett said, "The best leader knows how to make his followers actually feel _____ themselves, not merely acknowledge his _____." power, power motivated, motivation power, authority authority, power

power, power

The current thinking about management theory has progressed from military-style control and command to a set of modern management principles and concepts built upon the fields of _____. ethics and law engineering and medicine history and philosophy psychology and sociology

psychology and sociology

_____ means a person is assigned a task and is supposed to carry it out. authority responsibility accountability delegation

responsibility

_____ means a person is assigned a task and is supposed to carry it out. delegation responsibility accountability authority

responsibility

According to Drucker, "Effective leadership is not about making speeches or being liked; leadership is defined by _____." attributes results popularity good management

results

A recent trend has been toward a(n) _____ organizational structure with fewer layers and a broader span of control. short fat matrix tall skinny virtual

short fat

A(n) _____ position is one that provides specialized or professional skill and advice. line staff decentralized centralized

staff

A _____ organizational chart typically means there are many layers of managers between the workers and the person with the highest level of administrative authority. short fat tall circular

tall

Level 3 (Post-Conventional) of Kohlberg's Levels of Moral Reasoning suggests people do what is right because _____. they want to avoid punishment the law requires it social norms expect it that are following universal ethical principles

that are following universal ethical principles

The concept of _____ implies people begin to develop as unethical people by doing things that are considered minor breaches of ethics. unethical leadership morality of minors unethical management the slippery slope

the slippery slope

Level 1 (Pre-Conventional) of Kohlberg's Levels of Moral Reasoning suggests people obey what is right because _____. they want to avoid punishment the law requires it social norms expect it that are following universal ethical principles

they want to avoid punishment

Adam Smith did NOT advocate for a(n) _____ capitalistic system. regulated government controlled state controlled unregulated

unregulated

The ethical principle of _____ suggests one should do what will result in the greatest good for the greatest number. utilitarianism ethics of conscience ethics of duty ethics of respect

utilitarianism

Virtue Ethics is centered on _____, as opposed to what you do. how others perceive you who you are how you feel your purpose

who you are

In the U.S. Army a squad is typically composed of 9-10 soldiers commanded by a sergeant. True False

True

_____ was a German sociologist and economist who suggested an organizational structure today called a bureaucracy. Henry Ford Isabella Mary Beeton Robert Southey Max Weber

Max Weber

Most business planners consider three scenarios: Optimistic, Pessimistic, and _____. Least expensive Costly Most likely Deterministic

Most likely

Professor _____ studied the Japanese style of management that focuses on a strong company philosophy, a distinct corporate culture, long-range employee development, and decision making by consensus. Ouchi Ash Demming Hallam

Ouchi

In the U.S. Army a division is composed of 10,000 to 15,000 soldiers commanded by a major general. True False

True

A common issue facing business managers is that of laying off employees during an economic downturn. True False

True

A short-term increase in profits that comes at the expense of the organization's reputation is a poor bargain. True False

True

A strength is defined as something the organization does exceptionally well or something it has that gives it a sustainable competitive advantage. True False

True

A threat is defined as anything that could reduce the organization's revenues or substantially increase its expenses. True False

True

According to Blaise Pascal, "The strength of a man's virtue must not be measured by his occasional efforts, but by his ordinary life." True False

True

According to Frank A. Clark, "A man's conscience, like a warning line on the highway, tells him what he shouldn't do--but it does not keep him from doing it." True False

True

According to Thomas B. Macaulay, "The highest proof of virtue is to possess boundless power without abusing it." True False

True

According to your textbook, the most ethical thing a business student can do right now is to study business courses with the attitude that he or she really needs to learn as much as possible about this material so that when you become a business manager others can trust to make good business decisions. True False

True

An opportunity is defined as something the organization could buy or build that could give it a future competitive advantage. True False

True

Benjamin Franklin said, "By failing to prepare, you are preparing to fail." True False

True

Deming advocated the elimination of slogans and work quotas. True False

True

Deming was against the use of evaluation by performance, merit ratings, and annual performance reviews. True False

True

Good managers must be ethical and socially responsible while managing for profitability. True False

True

If ethics are poor at the top, that behavior is copied down through the organization. True False

True

Immediately after World War II many American business organizations were organized similar to the U.S. Army. True False

True

In the U.S. Army a battalion is typically composed of 300-1,000 soldiers led by a lieutenant colonel. True False

True