MGT 300 Exam 3 Practice Questions

9. Recognizing the increase in birth rates since 1946, and disliking the task of changing his grandchildren's diapers, Victor Mills began developing a disposable diaper. Pampers were introduced to consumers in 1961. Mills saw opportunity in ________. changes in demographics changes in perceptions new knowledge the incongruous

changes in demographics

20. Which of the following is a characteristic of a mechanistic organization? cross-functional teams wide spans of control free flow of information clear chain of command

clear chain of command

3. A ________ describes how a business will compete in its primary market. competitive strategy competitive advantage mission statement corporate strategy

competitive strategy

11. Emily's Bakery's customers have asked her to open a second location in a neighboring town offering the same menu as the original location. If Emily decides to do this, she will be following a ________ strategy. concentration differentiation diversification focus

concentration

2. The major value-creating capabilities of the organization are known as its ________. resources competitive advantages core competencies strengths

core competencies

7. In ________ integration, the organization becomes its own supplier so it can control its inputs. horizontal concentrated forward vertical backward vertical

backward vertical

12. The first three activities of the human resource management process involve ________. providing employees with up-to-date knowledge and skills identifying and selecting competent employees retaining competent and high-performing employees providing employees with flexible job assignments

identifying and selecting competent employees

22. When Bryan is offered a chance to help direct the efforts of some employees assigned to his work group, he sees this new assignment as a(n) ________. increase in his responsibility increase in departmentalization decrease in authority decrease in work specialization

increase in his responsibility

25. Downsizing is the planned elimination of ________ in an organization. departments jobs cross-functional teams managerial hierarchy

jobs

16. In 1938 Dr. Roy Plunkett discovered that a certain material became very slippery when frozen, and PTFE was invented. Under the brand Teflon, PTFE coatings were applied to a wide variety of items from spacecraft to frying pans. DuPont was able to capitalize on ________. the unexpected new knowledge the incongruous process needs

new knowledge

3.The health condition that is most costly for employers is ________. cancer diabetes heart problems obesity

obesity

23. The essence of affirmative action is to ________. prevent discrimination and enhance the status of members from protected groups provide experiential exercises and on-the-job coaching for employees provide positive reinforcements to encourage desirable behavior prevent employees from behaving unethically

prevent discrimination and enhance the status of members from protected groups

24. When a totally new product, such as laser discs years ago, is introduced, it would be considered a ________ according to the BCG matrix. question mark dog star cash cow

question mark

13. ________ is a type of technology that centers on large-batch production and requires moderate levels of complexity and sophistication. Unit production Service production Process production Mass production

Mass production

12. Helen, the owner of Crazy Cupcakes, is conducting a SWOT analysis of her company. Which one of the following represents an opportunity for expansion? In a taste test, Crazy Cupcakes products ranked higher than competitors in the taste and texture segments. One of Crazy Cupcakes competitors has added cookies to its product line. The production process was found to be highly efficient and wastage was kept to a minimum. There has been a trend toward personalized cupcakes for a variety of occasions.

There has been a trend toward personalized cupcakes for a variety of occasions.

5. Which one of the following Acts prohibits discrimination on the basis of physical or mental disabilities? Vocational Rehabilitation Act Civil Rights Act, Title VII Equal Pay Act Occupational Safety and Health Act

Vocational Rehabilitation Act

9. Helmut works for an optical engineering company in Germany. He is one of several employees that management must consult when it is considering a major layoff. Helmut is a member of ________. an employee council a work council a bargaining committee a labor union

a work council

18. Elizabeth was hired as a customer care executive by a telecommunications provider during a period when they were extremely short-staffed. Her employers soon realized that she was impatient, easily irritated, and lacked motivation. They even began to receive complaints about her behavior from angry customers. In hiring Elizabeth, her employers were guilty of a(n) ________. omission error accept error admission error reject error

accept error

7. As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making. centralized decentralized departmentalized concentrated

decentralized

6. Apple is an example of a company that was ________. distinguishing itself from its competitors stuck in the middle unable to develop a successful competitive strategy pursuing a cost leadership strategy

distinguishing itself from its competitors

12. The ________ is an organizational structure made up of separate business units with each unit having limited autonomy. simple structure functional structure bureaucratic structure divisional structure

divisional structure

5. The final step in the strategic management process allows an organization to understand the ________. effectiveness of the strategies used resources and capabilities it possesses external environment implementation of the strategies

effectiveness of the strategies used

15. Gareth is in charge of recruiting at Eowin Systems, and is expected to enhance the diversity of the workforce. Which of the following recruiting sources should Gareth avoid if he is to achieve the stated aim of a more diverse workforce? company Web site college recruiting employee referrals professional recruiting organizations

employee referrals

7. People who engage in ________ take advantage of opportunities to create new products or services, or change existing ones. social responsibility venture capitalism entrepreneurship social engineering

entrepreneurship

3. Which one of the many personality traits of entrepreneurs appeared on two separate lists? persistent problem solver abundance of self-confidence moderate risk taker high energy level

high energy level

14. Ignacio knows he cannot pay what the "big boys" pay, so he decides instead to emphasize the ________ his company offers. retirement savings plan health insurance benefits performance incentives learning opportunities and recognition

learning opportunities and recognition

23. According to Woodward's studies, what type of production technology is best suited for a mechanistic structure? product process mass unit

mass

6. In a university setting, it is common for a professor to report to an academic supervisor in his/her area of educational expertise and to a supervisor overseeing a particular degree such as baccalaureate or master's. This illustrates the ________ structure. project boundaryless team matrix

matrix

18. Large organizations are more ________. decentralized organic mechanistic disorganized

mechanistic

20. During an economic recession, ________. human resources managers find it more difficult to replace employees more qualified candidates are available to fill fewer open positions candidates expect better benefits and pensions candidates face less competition for open positions

more qualified candidates are available to fill fewer open positions

19. Tim is a candidate for an automotive mechanic's position. He is asked to deconstruct and reconstruct part of an engine motor to demonstrate his skill. This is an example of a(n) ________. performance-simulation test intelligence test psychometric test aptitude test

performance-simulation test

18. Which one of the following would most likely be a source for ideas for the would-be entrepreneur? manufacturing exhibitions trade publications personal interests and hobbies pure research

personal interests and hobbies

12. Which one of the following items is found in the financial data section of the business plan? pro forma cash flow analysis sales tactics economic analysis pricingpr

pro forma cash flow analysis

21. A refinery that transforms crude oil into gasoline, kerosene, and diesel fuel would be an example of ________. process production continuous production mass production unit production

process production

17. A ________ includes both positive and negative aspects about the job and the company. realistic job preview job analysis structured interview behavioral preview

realistic job preview

7. If Victoria asks some employees to share jobs or perform their jobs on a part-time basis, she would be ________. encouraging layoffs reducing the workweeks encouraging early retirements firing employees

reducing the work weeks

25. What is a strategic disadvantage of being a first mover? least opportunity to build customer loyalty no control over resources no cost and learning benefit risk of competitors imitating innovations

risk of competitors imitating innovations

24. A company with low departmentalization, wide spans of control, centralized authority, and little formalization possesses a ________ structure. divisional matrix functional simple

simple

6. Farrah has created a computer-generated mockup of her new product for inclusion in the ________ section of her business plan. executive summary description of the business supporting documentation analysis of the context

supporting documentarian

3. In the case of functional departmentalization, jobs are grouped according to ________. customer flow product lines tasks territories

tasks

2. In a sole proprietorship, profits are ________. taxed at the prevailing business rate distributed to all partners equally distributed to the partners according to their level of participation taxed as the owner's personal income

taxed as the owner's personal income

19. At the Saturn plant in Smyrna, Tennessee, groups of employees decided how their work would be done, by whom, and with what resources. These groups were given authority to decide who became members and to release any member who did not meet performance standards. Saturn had instituted a(n) ________ structure. virtual boundaryless team project

team

16. Michelle is very concerned about the formal framework by which job tasks are divided, grouped, and coordinated within her unit. This implies that she is concerned about ________. the organizational structure decentralization the organizational design the chain of command

the organizational structure

4. When Beverly administers the math test to accounting clerk candidates, the average score is 65%. But when Carol administers the same test, the score average is 83%. What does this indicate about the test? The test is reliable The test is poorly constructed. The test is unreliable. The test is valid.

the test is unreliable

19. Arthur Fry thought his glue was a failure because it didn't stick permanently, but when applied to small squares of paper, it became the popular Post-It ® note. Arthur Fry took advantage of ________. a process need changes in perception the unexpected a market structure

the unexpected

24. Michael has a sense that his business isn't doing as well as it should but he isn't sure what to look for to confirm his suspicions. Which one of the following could be a signal that the business is in trouble? difficulty finding skilled candidates more work than the business can handle long lead times for new orders tolerance of work incompetence

tolerance of work incompetence

17. ________ is a type of technology that centers on small-batch production. Mass production Flow production Unit production Process production

unit production

2. All candidates for entry level engineering positions are given the mechanical aptitude test. Those who scored well and were hired later earned high scores on their performance evaluations. Those who scored less well and were hired earned lower scores on performance evaluations. This indicates that the test is ________. valid reliable invalid unreliable

valid

1. As smartphone cameras improved, consumers turned away from traditional cameras. Polaroid lost market share and finally realized their product was no longer desired. At that point, Polaroid would be considered a ________ in the BCG matrix. Dog Cash Cow Star Question Mark

Dog

13. ________ should be sold off or liquidated as they have low market share and low growth potential. Dogs Question marks Stars Cash cows

Dogs

16. _______ is an Internet-based learning where employees participate in multimedia simulations or other interactive modules. Videoconferencing E-learning Podcasts Mobile learning

E-learning

23. ________ is what distinguishes an entrepreneurial venture. Determination Growth Innovation Competitive advantage

Growth

1. Sam, a human resources manager, wants to let potential candidates know about the minimum qualifications that they should possess in order to successfully perform the jobs they have applied for. What should he do? He should perform a job analysis. He should create a job description. He should create a job specification. He should perform a job satisfaction survey.

He should create a job specification.

10. Hobart is at the point in his new venture that he needs to hire more people. He comes to you for advice on the type of candidate he should seek. You tell him, "________." The important thing is to get people on board whose strengths complement your weaknesses Offer each candidate a stake in the business and hire the one who accepts the offer Find someone who can be groomed to take over the business when you are ready to retire Look for people who are exceptionally capable and fit well with the entrepreneurial culture

Look for people who are exceptionally capable and fit well with the entrepreneurial culture

11. Wayne hosts his first regional sales meeting during which he meets individually with his employees and shows them a chart of their sales numbers for each month compared to their budgeted quota for the year to date. Additionally, Wayne and each employee set mutually agreed-upon budget goals for the remaining six months of the fiscal year. Wade is utilizing the ________ method of performance appraisal. BARS multiperson comparison MBO critical incident

MBO

10. After 75 years in business, ABC Corp. has decided it is time to overhaul its compensation system. What advice would you offer its HR manager? Focus on benefits rather than wages or salaries. Make pay a function of the amount of education the employee has. Make it more flexible and reduce the number of pay levels. Pay everyone in the same pay grade the same wage regardless of seniority.

Make it more flexible and reduce the number of pay levels.

1. Bob works in a mid-sized organization with other skilled workers who all pitch in to do what needs to be done to satisfy the customer. It is likely Bob works in a ________ organization. decentralized formalized departmentalized cross-functional

decentralized

6. Steve recommends that employees should be compensated according to their competencies, rather than their designations. Employees should be financially rewarded when they gain more knowledge and learn new processes that are relevant to the job, even if the employee is at a lower level. This implies that Steve favors a ________. skill-based pay system profit-based pay system variable pay system fixed pay system

skill-based pay system

4. As the number of employees in an organization grows, structure tends to become more ________. relaxed specialized informal centralized

specialized

19. In an organization, the single independent businesses which formulate their own competitive strategies are known as ________. service units strategic growth units strategic business units strategic profit units

strategic business units

17. When Michele had only three employees, she performed most of the records-keeping tasks herself and kept a general idea of finances in her head. Now that her business has expanded, she is having money problems. What should Michele do? Relinquish some of her other duties so she can focus on the money end of the business. Reach out to the local business development organization for assistance. Create and follow a set of financial controls. Take a course in financial accounting at the local college.

Create and follow a set of financial controls.

13. Which one of the following Acts gives employees the legal right to examine personnel files and letters of reference? Worker Adjustment and Retraining Notification Act Privacy Act Consolidated Omnibus Reconciliation Act Civil Rights Act, Title VII

Privacy Act

14. Hendricks Ceramics sells items it buys from ceramic factories. If it were to purchase one of these factories, it would be engaging in ________ integration. concentrated backward vertical horizontal forward vertical

backward vertical

16. When used to connect with customers or to connect employees with co-workers in other locations, social media ________. provide a means for customers to order products online provide information for competitors that give them a competitive advantage can create a competitive advantage create distractions that can keep employees from being productive

can create a competitive advantage

23. The tobacco market in the United States has stagnated but Altria has a 50% share of it. According to the BCG Matrix, Altria is a ________. star cash cow dog question mark

cash cow

8. In the Boston Consulting Group (BCG) matrix, a business unit that has a low anticipated growth rate but a high market share is known as a ________. star cash cow question mark dog

cash cow

11. ________ is the degree to which decision making takes place at upper levels of the organization. Formalization Decentralization Centralization Departmentalization

centralization

14. The line of authority that extends from upper organizational levels to lower levels, clarifying who reports to whom, is known as the ________. unity of command employee power distance chain of command span of control

chain of command

2. Melanie has noticed that everyone is very concerned about the line of authority within the hospital. This implies that the employees at the hospital are worried about the ________. unity of command span of control departmentalization chain of command

chain of command

22. As her business grew and competitors entered the market, Inez knew she had to step up her game. What had worked well when the company was brand new no longer enabled her company to meet its goals. Inez realizes she must become a(n) ________ if her company is to continue to grow and prosper. better manager change agent visionary charismatic leader

change agent

15. An organization that grows using ________ focuses on its primary line of business and increases the number of products offered or markets served in this primary business. concentration diversification vertical integration horizontal integration

concentration

1. If Camden wants his new business to be a good corporate citizen, he should ________. minimize the risks his business takes consider community goals in his business plan observe all the local ordinances and employment laws hire only union labor

consider community goals in his business plan

8. To demonstrate social responsibility, entrepreneurs are encouraged to ________. sponsor youth sports teams consider community goals in their business plans use recycled materials in their production processes participate in community organizations such as Kiwanis and Rot

consider community goals in their business plans

9. A(n) ________ strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses. functional operating competitive corporate

corporate

10. All other things being equal, the wider or larger the span of control, the more ________ an organization is. rigid ambitious mechanistic cost efficient

cost efficient

11. Brandon is examining the state of the economy, the regulatory situation, social trends, and the local labor supply. This would indicate Brandon is ________. exploring the entrepreneurial context performing a SWOT analysis self-employed a small business owner

exploring the entrepreneurial context

Patrick expects each person he hires for his online business to be involved in studying trends involving new technology, competitors, and customers. These employees are involved in ________. external analysis internal analysis economic analysis industry analysis

external analysis

10. When an organization is analyzing its labor supply, it is studying its ________. economic environment external environment regulatory environment internal environment

external environment

Dharma is examining her financial position, the market for her proposed new product, the types of ownership available to her, and the tax laws for her area to determine whether she should go forward with her new business. Dharma is conducting a ________ technical study market analysis feasibility study practicality study

feasibility study

21. Emily is calculating her annual revenues, balance sheets, and breakeven points so she can write the ________ section of her business plan. financial data and projections executive summary analysis of the context description of the business

financial data and projections

17. Which of the following strategies involves a cost advantage or a differentiation advantage in a narrow segment? retrenchment strategy leadership strategy focus strategy functional strategy

focus strategy

4. In ________ integration, the organization gains control of its outputs by becoming its own distributor. concentrated backward vertical diversified forward vertical

forward vertical

25. Karl and his top managers set goals for the organization, then each department sets supporting goals with their employees, who then set their personal performance goals. These non-managerial employees are allowed to pursue their goals, within certain guidelines, using their best judgement, knowledge, and skills. These employees are ________. fully empowered called delegates knowledge workers being taken advantage of

fully empowered

15. A ________ is an organizational design that groups similar or related occupational specialties together. functional structure divisional structure simple structure matrix structure

functional structure

13. Gaston knows he cannot be physically present at his new restaurant every hour it is open, so he has decided to share management responsibility and profits equally with two others. Gaston has formed a ________. limited liability corporation general partnership joint proprietorship limited liability partnership

general partnership

22. The ________ method of performance appraisal allows the evaluator to rate employees on an incremental scale. graphic rating scale behaviorally anchored rating scale multiperson comparison management by objective

graphic rating scale

20. A ________ strategy is when an organization expands the number of markets served or the products offered. renewal stability growth retrenchment

growth

Ned has built his entrepreneurial venture into a successful business. Part of his original plan was to build the business then sell it to another company that could take it to the next level of success. In other words, Ned intends to ________ his business. relinquish harvest co-opt reap

harvest

8. Steve introduces in-house technical training programs for employees, as well as a provision to reimburse the tuition fees for employees who take college courses that benefit both the employee and the organization. Steve is using ________ to motivate and retain employees. affirmative action mentoring performance appraisal methods high-performance work practices

high-performance work practices

18. In ________, a company grows by combining with competitors. concentrated integration horizontal integration lateral integration vertical integration

horizontal integration

21. Joe's Hardware bought Moe's hardware on the other side of town. This is an example of ________. backward integration lateral integration forward integration horizontal integration

horizontal integration

21. _______ is an example of a high-performance work practice. Skill-based compensation Increasing employee access to information Detailed job descriptions Selective decruitment

increasing employee access to information

14. Managers begin human resource planning by ________. forecasting sales locating capable applicants inventorying current employees job analysis

inventorying capable applicants

20. Lucille's venture is finally taking off. To make sure the business grows as she would like, Lucille should consider ________. hiring a consultant to help with major decisions stepping down as CEO in favor of someone with more experience investing in extensive training for her employees enticing management candidates away from her competitors

investing in extensive training for her employees

25. Robert owns a small engineering firm serving customers on three continents. He has only three employees and contracts with freelancers as needed to fulfill his customers' needs. At any given time, he could have 50 or more engineers under contract. Robert operates a ________. network organization boundaryless organization freelance agency virtual organization

virtual organization

4. Sam Walton knew exactly how he wanted his business to operate. He saw WalMart as the cost leader in the discount department store industry. He took every opportunity to emphasize his corporate goals to his employees and became literally a cheerleader at store meetings. We would consider Sam Walton to be a(n) ________ leader. visionary autocratic transactional charismatic

visionary

9. Which of the following factors would require a more decentralized organizational structure? when the company is large when the lower-level managers want a voice in decisions when the lower-level managers are not capable of making decisions when the decisions to be made are not significant

when the lower-level managers want a voice in decisions

8. Which of the following factors calls for a more centralized organizational structure? when the environment is complex when the organization is facing a crisis when the company is geographically dispersed when the decisions to be taken are significant

when the organization is facing a crisis

24. In Germany, ________ are groups of nominated or elected employees who must be consulted when management makes decisions involving personnel. board representatives work councils advisory boards labor unions

work councils

5. The process of dividing work activities into separate job tasks is known as ________. span of control organizational design differentiation work specialization

work specialization