MGMT300 Final Cumulative Exam Review
To encourage more ethical decision making in an organization, managers should ____.
Do all of the following: -carefully select and hire new employees -establish a specific code of ethics -create an ethical climate -train employees in how to make ethical decisions)
Which of the following statements about portfolio strategy is true?
Dysfunctional consequences can occur when companies are categorized
Punishment is also called avoidance learning
False
____ are both examples of cooperative contracts.
Franchising and licensing
Which of the following a major concern of leaders (as opposed to managers)?
Inspiring and motivating others
Who is responsible for the creation of tactical plans?
Middle managers
What do middle managers typically do?
They do ALL of the following: -Plan and allocate resources -Coordinate and link groups and departments, -Implement changes and strategies generated by top managers, -Monitor the activities of first-line managers who report to them
Different businesses often need different combinations of global consistency and local adaptation.
True
Ethics is the set of moral principles or values that defines right and wrong for a person or group.
True
Which of the following is one of the six steps in the rational decision-making process?
Weight the criteria
In expectancy theory, ____ is the perceived relationship between effort and performance.
expectancy
The highest level of team autonomy is found in _____.
self-designing teams
The two general kinds of trade barriers are _____.
tariff barriers are non-tariff barriers
According to ______, leaders need to make clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals.
the path-goal theory
What is social responsibility?
A business' obligation to pursue policies, make decisions, and take actions that benefit society
The first step in the strategy-making process is to ______.
Assess the need for strategic change
Companies may determine standards by _____.
Benchmarking other companies (also by goal achievement and by listening to customers)
The achievement of stretch goals is made easier when the team members have _____.
Bureaucratic immunity
How are organizations using teams to help increase customer satisfaction?
By creating problem-solving teams to study ways to improve customer satisfaction and make recommendations for improvements.
How do employees try to restore equity when they perceive that they have been treated unfairly?
By doing any of the following: -by rationalizing inputs or outcomes -by changing the referent - by simply quitting their jobs -by reducing the level of energy & time they input into a project
Which of the following is NOT one of the core job characteristics in the job characteristics model (JCM)?
Client relationships
Which of the following statements regarding cohesiveness is true?
Cohesive groups have lower turnover
Which skills increase in their importance to success as managers rise through the managerial ranks?
Conceptual skills and the motivation to manage
A manager engaged in the management function of _____ is monitoring progress toward goal achievement and taking corrective action when needed
Controlling
Which of the following statements about corporate culture is true?
Corporate cultures are very difficult to change
For the goal-setting theory to work, goals must ____.
Do all of the following: -focus employees' attention on critical aspects of their jobs -energize behavior - create a tension between the current state and the desired state - be truly accepted by workers
One of the benefits of planning is how it _______.
Does none of the following: encourages people to work faster, encourages people to try a variety of different ways to do others' jobs, reduces employee turnover, eliminates all discriminatory practices
Which of the following statements about social responsibility is true?
Economic and legal responsibilities play a larger role in a company's social responsibilities.
A manager striving to improve organizational __________ is accomplishing tasks that help fulfill organizational objectives.
Effectiveness
First-line managers will most likely have to:
Encourage, monitor, and reward the performances of their employees
The most popular approach to increasing goal commitment is _____.
Encouraging workers' participation in goal setting
Extrinsic rewards are _______.
Exemplified by bonuses, trophies, and plaques
all events outside a company that have the potential to influence or affect it occur in the _________ environment.
External
According to some industrial psychologists, Performance=Motivation*Ability
False
Benchmarking is the process of setting corporate norms.
False
Cohesiveness refers to the extent to which members of a team are experiencing job satisfaction.
False
The stakeholder model holds that the only social responsibility that businesses have is to maximize profits.
False
The term excessive value appropriated (EVA) refers to the amount by which profits (after expenses) exceed the cost of capital in a given year.
False
Conceptual skills are most important for lower-level managers
False (Technical skills are most important for lower-level managers and team leaders)
Buyer dependence is the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product.
False (that is the definition of supplier dependence)
The only kinds of adaptive strategies are defending- analyzing- and reacting.
False (there are four kinds: all above including prospecting)
The balanced scorecard approach to control _____.
Forces managers at each level of the company to set specific goals and measure performance in each of four areas
How is management defined?
Getting work done through others
The normative decision theory _____.
Helps managers determine how much employee participation should be used in decision making
A manager who wants to use reinforcement theory to motivate workers should first _____.
Identify critical performance-related behavior
An expatriate is someone who ____.
Lives and works outside of his or her own country
Economic value added (EVA) is so important because it _____.
Makes managers at all levels pay much closer attention to how they run their segment of the business
The two general categories of stakeholders are _____ stakeholders and _____ stakeholders.
Primary; secondary
An organization that has _________ has the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.
Resources
Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?.
Synergistic
Which type of skills tend to be most important to the success of lower-level managers?.
Technical skills
The basic control process begins with _____.
The establishment of clear standards of performance
As described in path-goal theory, directive directive leadership is similar to the key leadership behavior of initiating structure.
True
Because external environments can be dynamic confusing, and complex, managers use a three-step process to make sense of the changes in their external environments. Those steps are (1) environmental scanning, (2) interpreting environmental factors, and (3) acting on threats and opportunities.
True
Both proximal and distal goals are used to provide additional motivation and rewards for employees
True
Companies use their resources to improve organizational efficiency and effectiveness.
True
Control is achieved when behavior and work procedures conform to standards and company goals are accomplished.
True
Cross-functional teams are purposefully composed of employees from different functional areas of the organization.
True
Customs classification is a non-tariff trade barrier. It is important to international marketers because the category assigned by customs agents can affect the size of the tariff and the impact of import quotas.
True
Empowerment can lead to changes in organizational processes because meaning, competence, impact, and self-determination produce empowered employees who take active rather than passive roles in their work.
True
The normative decision theory helps leaders decide how much employee participation should be used when making decisions.
True
The objective control approach to managerial control manifests itself as either behavior control or output control.
True
The term decision making is used to refer to the process of choosing a solution from available alternatives
True
The two kinds of inequity are underreward and overreward
True
functional departmentalizaton
allows work to be done by highly qualified specialists
virtual teams _________.
are very flexible
Managers can motivate employees to increase their efforts by ____.
asking employees what their needs are then matching rewards to those needs
The two types of objectives controls managers use are _____.
behavior and output
Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior?
competitive products
Which of the following is another term for initiating structure leadership behavior?
concern for production
____ control is a method of gathering information about performance deficiencies as they occur.
concurrent
The the basic control methods are _____.
concurrent, feedback, feedforward
The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is _____.
costs
_____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.
direct foreign investment
A country or region that has an attractive business climate for companies that want to go global has ____.
easy access to growing markets
Process modification, material/product substitution, and _____ are 3 strategies used for waste prevention and reduction.
good housekeeping
The basic model of ethical decision making _____.
is not accurately described by any of these
decentralization
leads to faster decision making and more satisfied customers and employees
The 3 components of ______ are initiation of effort, direction of effort, and persistence of effort.
motivation
modular organizatons
outsource all but the core business activities that they can perform best
Which of the following factors helps a company determine the growth potential of a foreign market?
purchasing power
One of the major questions that a company must typically answer once it has decided to go global is _____.
To what extent should the company standardize or adapt business procedures?
A joint venture is an example of strategic alliance.
True
A management study discovered that companies which invest in their people will create long-term competitive advantages difficult for other companies to duplicate.
True
A primary source of organizational culture is the company founder.
True
According to expectancy theory, instrumentality is strong when employees believe that improved performance will lead to better and more rewards
True
An intrinsic reward is a reward associated with performing task or activity for its own sake
True
An organic organization is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on knowledge
True
Fiedler's contingency theory states that in order to maximize work group performance, leaders must be matched to the situation that best fits their leadership style.
True
For goal-setting theory to motivate employees, managers must provide frequent, specific, performance-related feedback.
True
For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress.
True
For punishment to work, the punishment must be strong enough to stop the undesired behavior and must be administered objectively, impersonally, consistently and contingently, and quickly.
True
From a competitive standpoint- resource similarity means that the strategic actions your company takes can probably be matched by your direct competitors.
True
Functional departmentalization organizes work and workers into separate units responsible for particular business functions or areas of expertise.
True
Good management is basic to starting a business & growing a business & maintaining a business once it has achieved some measure of success (doesn't become less important)
True
In a multinational company, managers at company headquarters may value global consistency as a company policy over local adaption because global consistency simplifies decision-making at corporate headquarters.
True
In many industries, teams are growing in importance because they help organizations respond to specific problems and challenges.
True
In the decision-making process, teams can do a much better job than individuals in defining the problem and generating alternative solutions.
True
It would be safe to say that, while it sometimes pays to be socially responsible, at other times socially responsible can create significant costs
True
Leadership is the process of influencing others to achieve group or organizational goals.
True
Middle managers are typically responsible for coordinating and linking groups- departments- and divisions within a company.
True
Motivation is the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal
True
Multinational corporations are corporations that own businesses in two or more countries.
True
Organizational structure is the vertical and horizontal configuration of departments, authority, and jobs within a company.
True
Portfolio strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
True
Resource scarcity is the degree to which an organization's external environment has an abundance or lack of critical organizational resources.
True
Stakeholders are people or groups with an interest in a company's actions.
True
Tactical plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.
True
Team leaders are responsible for managing both internal team relationships and external relationships with other teams, departments, and divisions in a company.
True
The categories of social responsibility for a company are economic, legal, ethical, and discretionary
True
The control process begins when managers set goals.
True
The first step in establishing an ethical climate in a company is for managers to act ethically themselves.
True
The last stage of team development, where decline is complete, is the de-forming stage.
True
The three positioning strategies are cost leadership, differentiation, and focus.
True
The three strategies used to minimize or to adapt to the political risk inherent to global business are avoidance, control, and cooperation.
True
The three techniques that can be used by advocacy groups to influence companies are public communications, media advocacy, and product boycotts.
True
The two disadvantages associated with product departmentalization are costly duplication and difficulties with cross-departmental coordination
True
The two kinds of cooperative contracts are licensing and franchising.
True
The two kinds of external organizational environments are the general environment that affects all organizations and the specific environment that is unique to each company.
True
There is no such thing as a "best" leadership style for all situations and employees.
True
Transformational leadership is leadership that generates awareness and acceptance of a group's purpose and mission and gets employees to see beyond their own needs and self-interest for the good of the group.
True
Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.
True
Upper-level managers may actually spend more time dealing with people than lower-level managers.
True
While the interorganizational process revolves around a central company in modular organizations, a virtual organization is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other.
True
While transformational leaders use visionary and inspirational appeals to influence followers, transactional leadership is based on an exchange process.
True
An often overlooked factor in determining the cost of control is ____.
Unintended consequences that accompany increased control
According to the expectancy theory, _____ affect the conscious choices that people make about their motivation
Valence, expectancy, and instrumentality
___________ involves deciding who your competitors are, anticipating competitors moves, and determining competitors' strengths and weaknesses
a competitive anaylsis
Which of the following is a viable strategy for changing organizational culture?
all of the following: -allow employees to personalize their offices -use behavioral substitution and behavioral addition -Select job applicants with appropriate values and beliefs -Eliminate the company dress code)
In order to change an organizational culture, top management can persuade other managers and employees to perform a new behavior in place of an older one. This technique is called _______.
behavioral substitution
The _____________ is purposefully composed of employees from different functional areas of the organization.
cross-functional team
According to the path-goal theory of leadership, _____ involves letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations.
directive leadership
What are the four decisional roles
entrepreneur, disturbance handler, resource allocator, and negotiator.
The first step managers use to make sense of their changing environment is ________.
environmental scanning
Which of the following types of global organization is most likely to suffer problems associated with being culture bound?
franchising
McDonalds's uses a ______ strategy (a kind of grand strategy) as its increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's versions of a popular French grilled sandwich.
growth
A company facing a simple environment would _____.
have few external factors in the environment that affect it
Which of the following traits refers to the extent to which leaders are truthful with others?
honesty
Which of the following is a component of the specific environment that would directly influence a restaurant's day-to-day operation?
its regular customers
Effective managers define _____ as the process of influencing others to achieve group or organizational goals.
leadership
Which of the following is a basic component of equity theory?
referents
Ethical intensity depends on all of the following EXCEPT ____.
social commitment
____ is one of the disadvantages associated with the use of work teams.
social loafing
Whereas managers tend to have a short-term perspective, leaders tend to have a long-term perspective.
true
Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?
A situational analysis
Which of the following statements about a company's vision is true?
All of the following are true: -a company's vision refers to its purpose or reason for existing - a company's vision can make its strategic purpose and direction apparent to everyone - a company's vision can help to guide decision making under conditions of environmental uncertainty - a clear and compelling vision tends to raise the level of employee involvement)
Which of the following statements about matrix departmentalization is true?
All of the following statements are True (most employees in an organization that uses matrix departmentalization report to 2 bosses; with matrix departmentalization, there tends to be more cross-functional interaction among employees than in other types of departmentalization; with matrix departmentalization, there needs to be significant coordination between functional and project managers; the most common matrix combines product and functional departmentalization
Which of the following is an advantage associated with the use of project teams?
All of the following: -reduction or elimination of communication barriers -flexibility -increased cooperation among separate departments - faster design process
Which of the following is a reason teamwork can be more satisfying than traditional work?
All of the following: -teamwork often allows teams to receive proprietary business information that is only available to managers - teamwork provides team members with unique work opportunities - teamwork gives workers a chance to improve their skills - teamwork gives workers unique leadership responsibilities which enable them to build individual leadership skills)
Which of the following management practices can be used by an organization that wants to create a competitive advantage through its employees?.
All of the following: (Self managed teams, employment security, high wages contingent on organizational performance, sharing info)
Successful business leaders are not like other people. Successful business leaders _____.
Are accurately described by all of the following: -have a desire to lead - have emotional stability - are knowledgeable about business - are self-confident
_____ is the measure of the intensity of competitive behavior between companies in an industry.
Character of the rivalry
______ is the process of choosing a solution from available alternatives.
Decision making
While _____ are tangible ______ are not.
Distinctive competencies; core capabilities
The primary disadvantage of customer departmentalization is ______.
Duplication
Feedback can lead to stronger motivation and effort if it ____.
Encourages employees to set higher, more difficult goals after the initial goals are accomplished
A top manager for a management consulting firm would:
Establish a positive organizational culture that encourages employees to be passionate about their clients
Which of the following statements about ethics is true?
Ethics is the set of moral principles or values that defines right and wrong for a person or group
Quality is typically defined and measured in 3 ways. They are ____.
Excellence, value, and conformance to expectations
A virtual organization is an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants
False
As a leader behavior, consideration refers to the extent to which leaders do what they said they would do.
False
Companies will be considered unethical if they do not perform their discretionary responsibilities
False
Control loss usually has no effect on goal achievement.
False
Developing a vision and mission statement is the sole responsibility of middle management.
False
Environmental complexity refers to the degree of change in the external factors that affect organizations.
False
Global new ventures bring a good or service to market in one foreign market as a time
False
Goal specificity is the extent to which a goal is hard or challenging to accomplish.
False
Management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of these goals.
False
One of the disadvantages of project teams is their lack of flexibility.
False
Since teams should be an end in themselves, it is appropriate to use them in most situations.
False
Specialized jobs are general inefficient
False
Strategic leadership is defined as the ability to think strategically and create a strategic plan for an organization.
False
Team normalization represents the differences in ability, experience, personality, or any other factor on a team.
False
Teams do not perform any better when offered extrinsic rewards.
False
The 3 levels of waste minimization are waste disposal, waste reduction, and recycling.
False
The balanced scorecard approach to control emphasizes measurement of organizational performance in 3 equally important areas. These areas are finances, internal operations, and innovation and learning.
False
The basic components of equity theory are outcomes, instrumentality, and valence
False
The level of agreement on whether behavior is good or bad is defined as the level of ethical acceptance.
False
The most common type of training provided to members of work teams is training in leadership skills
False
The only dimension needed to measure quality is conformance to expectations.
False
The organization's vision must regularly change to adapt to changes in the environment over time.
False
The specific segment of an organization's external environment is unique to its region of the country.
False
The two approaches to maintaining flexibility in organizations while they plan are outcome-based planning and change-based planning.
False
There is general agreement regarding what is socially responsible corporate behavior.
False
When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.
False
The number one mistake made by managers who were derailed from their fast track up the managerial ranks was that they didn't develop the necessary technical skills.
False ( "mistake is...that they were insensitive to others by virtue of their abrasive, intimidating, and bullying management style")
Successful organizational cultures seem to be based solely upon consistency (i.e. "strength" of the organizational culture).
False (..based upon adaptability, involvement, a clear mission, and consistency)
Top managers are the managers responsible for facilitating team activities toward goal achievement.
False (Team leaders are responsible)
When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.
False (avoid risk-taking strategies)
Cross-department coordination tends to be very easy in organizations with functional departmentalization.
False (cross-department coordination can be difficult with functional departmentalization)
If retrenchment works, it is typically followed by a stability strategy.
False (followed by a recovery strategy)
The greater the market commonality, the less intense the direct competition between two companies.
False (market commonality: degree to which 2 companies have overlapping products, services, or customer overlap)
First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing subunit strategies for achieving these objectives.
False (middle managers are responsible for that)
Most companies compete directly with all the firms in their industry.
False (most do not compete)
Organizational heroes are used to make sense of organizational events and changes.
False (organization stories are used to make sense of organizational events and changes...)
Planning is a three, step process which involves first setting goals, next developing effective action plans, and finally tracking progress toward goal achievement.
False (planning consists of five steps)
According to the stakeholder model of social responsibility, no stakeholder groups are more or less important than any other.
False (primary stakeholders are more important)
Concurrent control seeks to prevent or minimize performance deficiencies before they occur.
False (that is a characteristic of feedforward)
The most common matriz combines customer and functional forms of departmentalization.
False (the most common matrix combines product and functional forms of departmentalization)
Companies face very little uncertainty in their strategic business environments.
False (there is a great deal of uncertainty)
S.M.A.R.T goals are Specific- Meaningful- Active- Reachable- and Timely.
False (they are Specific- Measurable- Attainable- Realistic- and Timely)
Which of the following is an example of a situational theory of leadership?
Fiedler's contingency theory
The two major approaches to corporate-level strategy are ____.
Grand strategies and the portfolio strategy
For options-based planning to work- the organization must ______.
Have slack resources
The chain of command ________.
Is described by none of the following (is the horizontal line of authority that indicates at which level of management an individual belongs, acts at cross-purposes to the unity of command principle, is only relevant in mechanistic organizations, does not permit delegation of authority)
Which of the following is NOT a step in the management by objectives (MBO) process?
Jointly develop operational plans
Which of the following statements about mechanistic organizations is true?
Mechanistic organizations work best in stable, unchanging business environments
Which of the following statements about the Strategic Point Theory is true?
None of the following statements about the Strategic Reference Point Theory are true ( the theory doesn't consider risk factors, the theory is deterministic, the theory may lead to bureaucratic management, this theory recommends that managers don't change strategic reference points)
All of the following are important factors in the creation of an ethical business climate EXCEPT ______.
Official approval of the company's ethics code by government regulators.
There are three kinds of _____ plans. They are single-use plans, standing plans, and budgets.
Operational
____ is the collection of activities that transform inputs into output that customers value.
Organizational process
What are the two types of political risk that affect companies conducting global business?
Political uncertainty and policy uncertainty
The three stages of moral development identified by Kohlberg are _____.
Preconventional level, conventional level, and postconventional level
A(n) ______ resource is a resource that is not controlled or possessed by many competing firms.
Rare
transactional leaders _______.
Reward followers for a good behavior and punish followers for poor behavior
Which of the following is NOT one of the rules for effective brainstorming?
Select an open-minded group leader
Which of the following typically is NOT performed by top managers?
Setting objectives consistent with organizational goals or planning and implementing subunit strategies for achieving these objectives
An organization that rewards its team members through gainsharing is ______.
Sharing the financial value of performance gains
Which of the following statements about social responsibility and economic performance is true?
Social responsibility can sometimes create significant costs for a company
____ is the process of solving problems by consistently applying the same rules, procedures, and processes.
Standardization