MGMT exam 2 knowledge check

In KPMG's 2017 survey of the 250 largest companies worldwide, approximately what percentage reported their corporate social responsibility? a. 93%b. 22%c. 100%d. 48%

93%

Who is generally responsible for setting goals and objectives in an organization? a. Stakeholders b. Employees c. Customers d. Leadership

Leadership

Which statement about how the COVID-19 pandemic changed the way many businesses operated or will operate is accurate? a. Companies are expected to speed up their automation of many tasks that are repetitive and dangerous. b. Companies like Brooks Brothers, who had both a brick and mortar store and an online presence, saw their business boom. c. Companies are expected to decrease their online presence and invest in perks like cafeterias to lure employees back. d. While the number of employees working from home has increased, it is expected to drop back down to pre-pandemic levels rather quickly.

a. Companies are expected to speed up their automation of many tasks that are repetitive and dangerous.

Chyron is vehemently opposed to the restructuring of jobs in his department. He decides that since no one is listening to what he has to say, he will get their attention by damaging some parts he is making for tomorrow's shipment. This is an example of what kind of change reaction? a. active resistance b. compliance c. enthusiastic support d. passive resistance

a. active resistance

Kahneman and Tversky found that individuals tend to rely too heavily on arbitrary numbers, or irrelevant traits or facts, when making a decision. This is called ________ bias. a. anchoring b. decision c. de-escalation d. overconfidence

a. anchoring

Experts have proposed that creativity occurs as a result of the interaction between personality traits, attributes, and a. context. b. power. c. luck. d. all of these.

a. context.

Bettie's Bakery sold out of their muffins every day last week. Bettie thought that it was because she changed the recipe slightly and now her customers loved the muffins. She decides to triple her muffin output for the following week. However, muffin sales fall because the temporary increase was related to purchases for Teacher Appreciation Week. Bettie experienced a(n) a. correlation and causality bias. b. overconfidence bias. c. availability bias. d. framing bias.

a. correlation and causality bias.

The culture of Altamira Corporation is characterized by participative decision making, innovation, and openness. Most employees feel part of the team. The accounting department, however, is run using authoritarian decision making to ensure efficiency and effectiveness. Accounting manager Stanley Jones believes in tight control to prevent errors. The department has a low error rate and high turnover. The accounting department's culture could be classified as a a. counterculture. b. weak culture. c. side culture. d. strong culture.

a. counterculture

Organic structures can be described as a. flexible and decentralized with low levels of formalization. b. a cross between a functional structure and a product structure. c. focused on maximizing efficiency and minimizing costs. d. highly formalized and centralized.

a. flexible and decentralized with low levels of formalization.

By one estimate, the primary reason managers who start a new job fail, or either voluntarily or involuntarily leave, is not being able to a. form effective relationship with colleagues. b. take advantage of a systematic approach to onboarding. c. seek feedback. d. gain understanding of whether their behavior fit with the company culture.

a. form effective relationship with colleagues.

The COVID-19 pandemic is an example of what external force impacting organizational change? a. generational events b. poor performance c. resistance to change d. organizational growth

a. generational events

Overconfidence bias occurs when a. individuals overestimate their ability to predict future events. b. the information that is more readily available is viewed as likelier to happen .c. individuals rely too heavily on a single piece of information. d. information aligns with individuals' deeply held beliefs.

a. individuals overestimate their ability to predict future events.

Employees engage in higher levels of conflict when leaders use which decision making style? a. laissez-faire b. autocratic c. democratic d. authoritarian

a. laissez-faire

The most common appraisal error is a. leniency. b. preconceived notions. c. a desire to show authority. d. favoritism.

a. leniency.

In a personal Balanced Scorecard, __________ reflects your values and philosophy of life. a. mission b. objective c. goal d. vision

a. mission

Being curious, original, intellectual, creative, and open to new ideas describes the Big Five personality trait of a. openness. b. conscientiousness. c. organization. d. agreeableness.

a. openness.

It is more common to see rewards tied to performance indicators as opposed to seniority or loyalty in companies whose cultures are a. outcome-oriented. b. innovative. c. team-oriented. d. aggressive.

a. outcome-oriented.

Which reaction to change is happening when an employee looks for a new job rather than bringing their concerns to the attention of decision makers? a. passive resistance b. enthusiastic support c. active resistance d. compliance

a. passive resistance

A series of steps that decision makers should consider if their goal is to maximize their outcome and make the best choice describes the ________ model. a. rational decision-making b. bounded rationality c. creative decision-making d. intuitive decision-making

a. rational decision-making

The degree to which a person is at peace with themselves and has an overall positive assessment of their self-worth and capabilities is related to their a. self-esteem. b. integrity. c. agreeableness. d. self-efficacy.

a. self-esteem.

Best practices relating to performance reviews suggest that goals and objectives should inspire, challenge, and a. stretch capabilities. b. be limited to a couple ideas. c. avoid discussion of the reward system. d. not exceed current expectations.

a. stretch capabilities.

Novalee makes it a point to talk to her subordinates every day about what is going on in their personal lives. She always congratulates them when they share successes and has a kind word and "a shoulder to cry on" if necessary when things are not going well. Novalee has a ___________ leadership style. a. supportive b. directive c. participative d. achievement-oriented

a. supportive

Characteristics of MBO include a. systematic and organized. b. a detailed roadmap for implementation. c. improving communication by centralizing decision making d. all of these.

a. systematic and organized.

A problem the Group decision support system (GDSS) intended to solve is 2 a. the ability to make sure every idea is heard. b. need for immediate feedback. c. overuse in virtual meetings. d. a lack of control over the issues.

a. the ability to make sure every idea is heard.

Which statement is accurate regarding the attraction-selection-attrition (ASA) process? a. Person-organization misfit has little impact on employee turnover. b. Individuals self-select the companies for which they choose to work. c. Due to economic circumstances, companies today hire people for fit with job responsibilities and are unconcerned about fit with culture. d. The ASA process aids organizations in maintaining the relative heterogeneity of employee personalities and values.

b. Individuals self-select the companies for which they choose to work.

Which statement about corporate social responsibility (CSR) is accurate? a. It is more prevalent in the U.S. than in Europe or Asia. b. It has been gathering momentum for over a decade. c. It bears no relationship to stock valuation. d. No positive links between CSR and firm financial performance have been identified.

b. It has been gathering momentum for over a decade.

What does research indicate about the practice of satisficing? a. It is used more often by experts than novices. b. It is generally effective in making good decisions. c. It takes less time but leads to higher costs. d. None of these.

b. It is generally effective in making good decisions.

Which statement regarding change is accurate? a. Organizational change has limited forms in modern business. b. Organizational change may involve structure, strategy, policies, procedures, technology, or culture. c. Organizational change usually involves technology, not the management of people. d. Organizational change is rarely successful.

b. Organizational change may involve structure, strategy, policies, procedures, technology, or culture.

A manager prepared for an employee's annual performance review by creating goals and objectives for the employee, scheduling a meeting, and presenting the employee with the goals and objectives. The employee agreed to meet these by the following year's annual review. What did this manager do wrong? a. Goals and objectives should not be part of the annual review. b. The manager did not involve the employee in setting agreed upon goals and objectives prior to the meeting. c. The manager didn't plan to review the goals and objectives at mid-year. d. The employee didn't create the goals and objectives prior to the meeting and present them to the manager.

b. The manager did not involve the employee in setting agreed upon goals and objectives prior to the meeting.

When setting an objective, you should answer six "W" questions. Which one relates to identifying requirements and constraints? a. Why? b. Which? c. Who? d. What?

b. Which?

Because they are sometimes seen as submissive, ________ people who are good natured, modest, and avoid conflict are less likely to be perceived as leaders. a. conscientious b. agreeable c. neurotic d. extraverted

b. agreeable

Artifacts reflecting values of an organization include a. mission statements. b. an office layout with open spaces. c. shared principles. d. all of these.

b. an office layout with open spaces

When leaders make decisions alone without involving employees in the decision-making process, they are using a. laissez-faire decision making. b. autocratic decision making. c . democratic decision making. d. participative decision making

b. autocratic decision making.

A modular organization is a type of ________ organization because it eliminates traditional barriers by outsourcing nonessential functions. a. learning b. boundaryless c. matrix d. mechanistic

b. boundaryless

A new CEO has developed a plan that calls for company reorganization from a functional structure to a matrix one. In a meeting with her subordinates, manager Chloe says, "This will be great. You will still work for this area and me, but you'll have variety and growth opportunities by reporting to a second manager for various projects. This new structure will help grow this company." Chloe shows what reaction to this change? a. compliance b. enthusiastic support c. active resistance d. passive resistance

b. enthusiastic support

Research findings of leader behaviors suggest Sa. employees who work under people-oriented leaders are more productive. b. extremely high levels of leader task-oriented behaviors may lead to burnout in employees. c. task oriented behaviors tend to be more effective in large companies. d. when leaders are task-oriented, employees are more satisfied.

b. extremely high levels of leader task-oriented behaviors may lead to burnout in employees.

Firms with people-oriented cultures tend to value a. competitiveness and outperforming competitors. b. fairness, supportiveness, and respecting individual rights. c. precision and paying attention to details. d. flexibility, adaptability, and experimenting with new ideas.

b. fairness, supportiveness, and respecting individual rights.

3M Corporation provides its employees time each week to generate ideas for new products. This practice is responsible for the development of such products as Post-it ® notes. This is evidence of a(n) ___________ culture. a. aggressive b. innovative c. people-centered d. detail oriented

b. innovative

The Balanced Scorecard focuses on four types of measures, including which one that looks at organizational efficiency? a. learning and growth b. internal processes c. customers d. financial performance

b. internal processes

Cho knew the market for high-end clothing was changing, so she surveyed her managers and their employees for suggestions on what changes needed to be made to the company's marketing plan. This demonstrates which leadership style? a. supportive leadership b. participative leadership c. achievement-oriented leadership d. directive leadership

b. participative leadership

The trait approach to leadership examines which factor? a. leadership behaviors b. personality characteristics c. employee-leader relationships d. environmental influences

b. personality characteristics

What is more characteristic of a decentralized organization than a centralized organization? a. negative employee attitudes b. positive emotional climate c. more efficient operations d. employee exhaustion

b. positive emotional climate

Which of Lewin's steps for planning change ensures that the change becomes permanent? a. unfreezing b. prefreezing c. refreezing d. freezing

b. prefreezing

The CEO of Microsoft, Satya Nadella, issued an apology for an inflammatory statement he made at a major industry event. This is an example of which of the six steps to culture change? a. changing leaders b. role modeling c. creating a sense of urgency d. training

b. role modeling

The incubation step in the creative decision-making process refers to the step where the decision maker a. verifies the feasibility of the solution and implements the decision. b. sets the problem aside and does not consciously think of it. c. consciously thinks about the problem. d. gains insight into the problem and has a "Eureka!" moment.

b. sets the problem aside and does not consciously think of it.

To generate culture change at an organization, a common practice is to a. publish salaries of top managers. b. share the emails of previous managers. c. remove the CEO and/or other top managers. d. fire all current employees.

b. share the emails of previous managers.

When leaders motivate employees through inspiration, corporate culture tends to be a. competitive and performance-oriented. b. supportive and people-oriented. c. outcome-oriented and competitive. d. team-oriented.

b. supportive and people-oriented.

The timing for a performance evaluation should coincide with a. the employee's annual pay raise. b. the needs of the employee and the organization. c. the company's annual budget process. d. the company's fiscal year.

b. the needs of the employee and the organization

John is a top-level manager at ACME Manufacturing. His goal is to increase the intrinsic motivation of his employees and create higher levels of commitment to organizational change. Which contemporary approach to leadership is he exhibiting? a. intellectual b. transformational c. charismatic d. inspirational

b. transformational

According to Daniel Goleman, effective leaders are different from ineffective leaders due to their a. ability to control the activities of others. b. understanding of other people's emotions. c. years of management experience. d. understanding of the mission of the company.

b. understanding of other people's emotions.

Security, safety, and social equality are all examples of cultural a. artifacts. b. values. c. assumptions. d. cultural orientations.

b. values.

When trying to persuade people to change their ways, having a history of suggesting implementable changes is which method of overcoming resistance to proposals? a. Listen to naysayers. b. Appeal to your audience's ideals. c. Assess your credibility. d. Present your data to your audience.

c. Assess your credibility.

Which action is included in Lewin's unfreezing step? a. Make change a part of the organizational culture. b. Build on prior change. c. Develop a sense of urgency .d. Create small wins.

c. Develop a sense of urgency

Which statement about leader-member exchange (LMX) theory is accurate? a. High LMX relationships involve an active dislike between the leader and member. b. In low LMX relationships, both leader and member go above and beyond their job descriptions to assist the other party in succeeding. c. In high LMX relationships, the leader has a trust-based relationship with the member. d. In high LMX relationships, the leader does their job and the member does theirs.

c. In high LMX relationships, the leader has a trust-based relationship with the member.

During an interview, you should make notes on dress code, building structure, and whether employees look stressed. This is part of which method to evaluate the culture of a company? a. Reflect on how you are treated. b. Ask questions. c. Observe the physical environment. d. Do your research.

c. Observe the physical environment.

An example of a question requiring a strategic decision is: a. How often should I communicate with my new coworkers? b. How should we market the new product line? c. Should we downsize our organization? d. All of the above.

c. Should we downsize our organization?

Flat structures provide managers with a. more opportunities for close supervision. b. many advancement opportunities. c. a broader span of control. d. increased job security.

c. a broader span of control.

Airline attendants are told that if a customer complains about the service, they should be offered a free beverage. This is an example of a. the free-rider problem. b. a rational solution. c. a decision rule. d. a nonprogrammed decision.

c. a decision rule

Under Fielder's contingency theory, an LPC (least preferred coworker) score is similar to a. a task structure. b. a decision-making style. c. a personality trait. d. an expectancy.

c. a personality trait.

Selecting a new computer based on a low price without analyzing what software, warranties, and peripherals come with it is an example of which form of bias? a. escalation of commitment b. availability c. anchoring and adjustment d. framing

c. anchoring and adjustment

The degree to which decision-making authority is concentrated at higher levels in an organization refers to a. mechanization. b. departmentalization. c. centralization. d. formalization.

c. centralization.

Heather meets with her subordinates on a regular basis to share concerns and information with the group. She takes their feedback but makes decisions on her own. According to the leadership decision tree, Heather's decision-making style is to a. decide. b. delegate. c. consult. d. align

c. consult

John is a member of a team of decision makers. As a way to avoid groupthink he has been tasked with challenging and questioning the group as they work to come to an agreement. Which role is he fulfilling within the group? a. social loafing b. team leader c. devil's advocate d. observer

c. devil's advocate

Organic structures are conducive to a. strict and unchanging job descriptions. b. decreased employee autonomy. c. entrepreneurial activity and innovation. d. maximizing efficiency and minimizing costs.

c. entrepreneurial activity and innovation.

Which of these is a step in creative decision making? a. illustration b. problem solving c. immersion d. all of these

c. immersion

Darius finds out that his manager has been cheating employees out of pay bonuses. Darius' manager seems to lack a. extraversion. b. neuroticism. c. integrity. d. agreeableness.

c. integrity

An organization where all nonessential functions are outsourced is a a. matrix organization. b. learning organization. c. modular organization. d. strategic alliance

c. modular organization.

Mariah is the CEO at ACME Manufacturing. She knows some of the equipment is outdated and subject to failure, but the immediate cost of replacement is much higher than the cost of repairs. She estimates the cost of repairs over the next 5 years, and weighs these costs against the cost of the new equipment and time lost for nonfunctioning equipment. She decides to keep the equipment for another year and keep track of the failures, then decide if new equipment is justified. Which decision-making model is Mariah using? a. intuitive b. creative c. rational d. bounded irrationality

c. rational

In an organization where high-level managers make the effort to involve others in decision making and seek opinions of others, corporate culture tends to be a. competitive and performance-oriented. b. supportive and people-oriented. c. team-oriented. d. outcome-oriented and competitive.

c. team-oriented.

The decision-making technique designed to help with group decision making by ensuring that all members participate fully is a. consensus. b. majority rule. c. the nominal group technique. d. the Delphi Technique.

c. the nominal group technique.

Objectives typically are a. stated in terms of the corporate mission. b. clear, concise, and understandable. c. related directly to the values of the company. d. the same thing as goals.

clear, concise, and understandable

Peters and Waterman's best-selling book In Search of Excellence made the argument that company success could be attributed to an organizational culture that included what feature? a. decisiveness b. customer-orientation c. empowerment d . all of these

d . all of these

Which characteristic describes learning organizations? a. Learning organizations are good at learning from experience. b. Some companies choose to conduct formal retrospective meetings to analyze the challenges encountered and areas for improvement. c. Learning organizations are good at studying customer habits to generate ideas. d. All of these.

d. All of these.

_________ refers to the number of levels within an organization. a. Function b. Centralization c. Structure d. Hierarchy

d. Hierarchy

Which question should be addressed to determine whether your objective is measurable? a. Who is involved? b. What do I want to accomplish? c. What are the requirements and constraints? d. How will I know when it is accomplished?

d. How will I know when it is accomplished?

The corner office, mahogany desks and credenzas, gold name plates on office doors, and reserved parking places are examples of cultural a. beliefs. b. assumptions. c. values. d. artifacts.

d. artifacts.

Organizational culture consists of three levels: a. beliefs, values, and attitudes. b. hierarchies, rituals, and roles. c. assumptions, orientations, and beliefs. d. assumptions, artifacts, and values.

d. assumptions, artifacts, and values.

A Balanced Scorecard relies on which process to bind short-term activities to long-term activities? a. succession planning b. performance metrics c. creating a vision d. communicating and linking

d. communicating and linking

A disadvantage of formalization in organization structure is a. increased motivation. b. increased job satisfaction. c. faster decision making. d. decreased innovation.

d. decreased innovation.

Generally, goals and objectives serve to a. gauge and report performance. b. improve performance. c. align effort. d. do all of these.

d. do all of these

Expectancy theory suggests individuals are motivated when a. low effort will be rewarded. b. rewards are expected. c. rewards lead to high performance. d. effort leads to high performance.

d. effort leads to high performance.

Which decision-making model is least effective when the manager has no prior experience with a particular issue? a. creative b. bounded rationality c. rational d. intuitive

d. intuitive

According to Fiedler's contingency theory, conditions creating situational favorableness include a. conditional power. b. relative position. c. context. d. leader-subordinate relations.

d. leader-subordinate relations.

Despite its popularity within organizations, in group decision making, groups a. commonly outperform their best member, which can lead to intra-group rivalries. b. can suffer from social isolation. c. tend to have members who are not invested in the decision. d. may suffer from the tendency to avoid critical evaluation of ideas the group favors.

d. may suffer from the tendency to avoid critical evaluation of ideas the group favors.

Patricia just started a new job at a new company. The first day there, she observes whether people eat lunch at their desks, if they take timed breaks, and if they leave right at 5 pm. She is trying to understand the a. potential for conflict. b. employee rules. c. company mission. d. organizational culture.

d. organizational culture.

Maria has been a part-time faculty member at the university for nine years. She teaches two to three writing courses a semester. Last month, the dean announced that next academic year, part-time instructors would be limited to teaching only two classes during the entire year. Maria is upset and tells her husband, "I may look into teaching at the community college next year but don't let anyone at the university know." This is an example of what kind of change reaction? a. active resistance b. enthusiastic support c. compliance d. passive resistance

d. passive resistance

Jessica must decide which of two job offers she is going to choose. She begins her process by listing the key criteria she is looking for in a job including salary level, location, promotional opportunities, and so on. She then takes each job offer letter and carefully goes through each line assessing the offer in relationship to the criteria she established. Jessica is using what type of decision making? a. intuitive b. programmed c. creative d. rational

d. rational

The tendency to accept the first alternative that meets minimum criteria is called a. analysis paralysis. b. time maximizing. c. the intuitive decision-making model. d. satisficing.

d. satisficing

In the SMART criteria, what does the "S" stand for? a. skills b. standards c. strategy d. specific

d. specific

The Internal Revenue Service has many rules and regulations regarding the tax code and the filing of returns. The organization is large and bureaucratic. If an individual has issues with the agency, getting it resolved is a laborious process filled with red tape, and takes an extensive amount of time and patience to resolve. The Internal Revenue Service has a(n) ________ culture. a. people-oriented b. outcome-oriented c. team-oriented d. stable

d. stable

Examples of measures used in objectives include a. new product development. b. staff morale. c. the economic environment. d. stock price.

d. stock price

To ensure all cast members share and embrace the history of Walt Disney World, new hires at the resort must take courses on traditions at Disney. With these classes, the Walt Disney Company is creating a a. counterculture. b. weak culture. c. subculture. d. strong culture.

d. strong culture.

Cultures that emerge within different departments, branches, or geographic locations are called a. countercultures. b. bureaucratic cultures. c. stable cultures. d. subcultures.

d. subcultures.

Malcolm is the manager of his department. After performance evaluations, he gives those who have met their goals for the year a pay raise. He gives his employees their assignments and leaves them to do their work, but does monitor them so that if he notices a potential problem, it gets resolved before causing difficulties. What contemporary leadership style is Malcolm demonstrating? a. servant leadership b. transformational leadership c. laissez-faire leadership d. transactional leadership

d. transactional leadership

Miguel is a department manager in a family-owned retail store. He and his subordinates clash over scheduling and other procedural aspects of the job almost daily. While having the title of manager, Miguel makes few decisions for the department, instead implementing those relayed by the owner. The sales associate positions as well as his managerial position do not have specific duties tied to them; instead everyone is supposed to do "whatever it takes." According to Fiedler's contingency theory, the situation would best be described as a. controlled. b. medium favorable c. favorable. d. unfavorable.

d. unfavorable.

Your objective is probably realistic if a. it is easy. b. it has an open time frame. c. it is hard. d. you believe it can be accomplished.

d. you believe it can be accomplished.

In the SMART criteria, what does the "R" stand for? a. realistic b. reactive c. reasonable d. relative

realistic