Practice Test

Which of the following is the best example of a team in the storming stage of development? A team that has completed its task and dispersed, with some members feeling sad at the separation from the team on which they have been so dependent A team that comes together and team members get to know about their tasks and responsibilities and each of their team member's competencies A team with members sharing their personal opinion with others and group members being more open to one another's ideas and suggestions A team with members arguing with each other due to interpersonal issues arising from differences in the perspectives of each team member

A team with members arguing with each other due to interpersonal issues arising from differences in the perspectives of each team member

Which of the following refers to a network of unique activities that strategically fit together and are difficult to replicate? Core competencies Conglomeration Global strategies Virtue ethics

Core competencies

For which of the following companies is human resources the primary resource? The Gold and Diamond Supply Store Daisy Hill Puppy Farm Morgan & Morgan Law Firm Marathon Oil Corporation

Morgan & Morgan Law Firm

Which of the following individuals is the best example of a successful change leader? A change leader who engages and listens to employees and motivates them by showing concern and sharing credit A change leader who pays all attention to the structural and procedural changes needed for the transformation A change leader who communicates the positive results of the change process to the employees and hides the negative ones A change leader who offers rewards in terms of increased pay and promotion to those employees who support the change process

A change leader who engages and listens to employees and motivates them by showing concern and sharing credit

Which of the following firms is most likely to benefit from a bureaucratic approach? A firm with high turnover and a diverse workforce A firm with constantly changing, dynamic markets A start-up firm with less complexity A firm involving creativity and innovation

A firm with high turnover and a diverse workforce

Which of the following is a disadvantage of a strong culture? A strong culture seldom influences an organization's performance. In a strong culture, the goals are unclear. A strong culture requires more coordination and monitoring. A strong culture tends to be difficult to change.

A strong culture tends to be difficult to change.

Which of the following teams is the best example of a team in the norming stage of development? A team that has completed its task and dispersed, with some members feeling sad at the separation from the team on which they have been so dependent A team with members arguing with each other due to interpersonal issues arising from differences in the perspectives of each team member A team with members sharing their personal opinion with others and group members being more open to one another's ideas and suggestions A team that comes together and team members get to know about their tasks and responsibilities and each of their team member's competencies

A team with members sharing their personal opinion with others and group members being more open to one another's ideas and suggestions

When Macy purchased P&G products because he believed the manufacturer to be reputable and socially responsible, it provided an example of utilitarianism. Kantianism. CSR as a competitive advantage. conflict of interest.

CSR as a competitive advantage.

Which of the following statements about affective and cognitive conflicts is true? Cognitive conflicts can have a positive influence on the team. In affective conflict situations, the focus is on the task at hand. Cognitive conflicts cannot be interpreted as personal attacks. In most cases, cognitive conflicts are extremely destructive.

Cognitive conflicts can have a positive influence on the team.

Which of the following reactions to power do leader's most prefer? Passive resistance Commitment Compliance Active resistance

Commitment

Which of the following best describes an organization's artifacts? Day-to-day behaviors that can be observed The underlying essence of why members of an organization act as they do Aspects deemed important by members of an organization Relational factors between an organization's culture and its performance

Day-to-day behaviors that can be observed

Which of the following statements about 360-degree feedback is true? It often provides employees with an unrealistic view of their skills. Employees receive feedback from their superiors, peers, and subordinates. 360-degree feedback is not effective for the leadership development process. 360-degree feedback is often effectively used to determine pay raises.

Employees receive feedback from their superiors, peers, and subordinates.

According to Kotter, which of the following should leaders do first while implementing change? Institutionalize changes in the culture. Develop a vision. Plan for and create short-term wins. Establish a sense of urgency.

Establish a sense of urgency.

Thomas is an executive in a firm's IT department. He has immense knowledge in IT and has come up with many technological innovations, which had helped the organization to perform its activities more efficiently. Moreover, he has the ability to solve all types of issues that arise on a daily basis with relative ease. As a result, the individuals in the organization have developed great respect for him. Identify the kind of power demonstrated by Thomas. Coercive power Referent power Expert power Reward power

Expert power

A buyer industry will tend to have less power relative to the supplier industry when the buyer purchases in very large volumes. T or F

False

Which of the following statements is a disadvantage of group-based pay systems? Group-based systems cannot be fully customized to a particular department. They do not allow managers to modify their targets and formulas. Group-based pay systems tend to result in a diffusion of responsibility. All group-based pay programs are generally difficult to calculate and monitor.

Group-based pay systems tend to result in a diffusion of responsibility.

Barry believes that work is simply a means to an end and that employees' needs are secondary to the need for an efficient and productive workplace. Where does Barry fall within the managerial grid? High-task, low-relationship High-relationship, low-task Low-task, low-relationship High-relationship, high-task

High-task, low-relationship

Which of the following is the best example of Hofstede's long- versus short-term orientation dimension? People in Erbia believed that competition, ambition, and accumulation of wealth are typical masculine qualities. The members of a particular society often prefer more rules and structure and are incapable to adapt to quick changes. The host country employees of an organization prefer to unquestionably abide by the rules of the top management. In an organization, it is mandatory for managers to make decisions by giving more importance to the future than the present.

In an organization, it is mandatory for managers to make decisions by giving more importance to the future than the present.

Which of the following terms refers to a structure where many employees have two bosses (one divisional and one functional) with equal authority in the organization? Network structure Matrix structure Functional structure Divisional structure

Matrix structure

Which of the following statements best describes scientific management? It is a view of the firm where effective organizational structure is based on fit or alignment between the organization and various aspects in its environment It holds the belief that organizations must be understood as systems of interdependent human beings who share a common interest in the survival and effective functioning of the firm. It involves a clear differentiation of tasks and responsibilities among individuals and coordination through a strict hierarchy of authority and decision rights. It focuses on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods.

It focuses on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods.

Which of the following provides a more precise job description and defines the characteristics of the ideal candidate for the position? Mission statement Balanced scorecard Job analysis Job evaluation

Job analysis

Which of the following statements is true about strategy formulation? Managers should engage in environmental scanning on an ongoing basis. The formulation of strategy is the last step toward achieving profitability. All aspects of a firm's strategy are more susceptible to frequent changes. The strategy development process typically flows in a linear fashion.

Managers should engage in environmental scanning on an ongoing basis.

The management of an organization realized that their employees' performance kept deteriorating and many employees decided to quit due to unknown reasons. After probing, they realized that their competitors were offering a better compensation which attracted most of the employees. Therefore, the management made reasonable changes to the compensation system that enabled good performers to receive more incentives and recognition. Identify the change that has been implemented. Incremental change Transformative change Reactive change Organic change

Reactive change

Martin decided to hire Ann for the associate's position because she reminded him of a former associate who had excelled in the position. Martin has used which of the following heuristics? Playfulness Representativeness Adjustment Availability

Representativeness

Which of the following theories proposes that members of an in-group will seek to find negative aspects of an out-group to enhance their own self-image? Social identity theory Great man theory Realistic conflict theory Traits-based theory

Social identity theory

How does the competitive landscape shape the potential for success or failure? Which of the following pillars of managing organizations addresses this question? Shareholder value Organizational design and structure Individual leadership Strategic positioning

Strategic positioning

Which of the following statements about strong cultures is true? In strong cultures, there are low levels of agreement among employees. Strong cultures allow a company to run more smoothly and quickly. Strong cultures lead to decreased performance in stable environments. Strong cultures often result in greater role ambiguity.

Strong cultures allow a company to run more smoothly and quickly.

DePaul Company has been monitoring the performance of its processes against selected measures. What is DePaul's next step in the control cycle? Set targets for the selected measures. Set up a balanced scorecard. Identify measures that track the right information to assess performance. Take corrective action.

Take corrective action.

Which of the following statements best describes the appropriateness framework? The process by which individuals make choices based on a certain starting point The process of making decisions based on societal norms or expectations The process of identifying issues and making choices from alternative courses of action The process that individuals use to save time when making complex decisions

The process of making decisions based on societal norms or expectations

Which of the following is a characteristic of an organization's climate with high employee engagement? Centralized decision making Negative reinforcement High power distance Training and development

Training and development

Budgeting involves allocating financial resources and measuring expected quantitative and qualitative outcomes of a firm. True or False

True

Dependence asymmetry exists when a firm is more dependent on a business partner than a business partner is on a firm. True or False

True

Goal-setting theory states that the mere setting of difficult but achievable goals is a significant motivator of performance. True or False

True

Which of the following statements about verbal communication is true? Listening and reading are the modes by which verbal communication is sent. Verbal communication consists of giving physical attention to a communication partner. In verbal communication, speaking and writing are both driven by sensing information. Verbal communication consists of sounds, letters, words, pictures, and symbols.

Verbal communication consists of sounds, letters, words, pictures, and symbols.

Sam sees potential in Alex and offers Alex a chance to increase his responsibility within the group. Based on the leader-member exchange theory, Sam and Alex's relationship is in the _________ phase of the relationship life cycle. acquaintance stranger partnership mature

acquaintance

The accounting system used to assess the specific cost components of producing a product or service is known as economic value added. economies of scale. return on equity. activity-based costing.

activity-based costing.

Fine Gadgets, a gadgets manufacturing company, has an organizational structure where the employees have to strictly follow rules and regulations stated by the management. Moreover, only the top management is allowed to make key decisions regarding organizational activities. Fine Gadgets is an example of a _____ organization. centralized diversified decentralized global

centralized

The human resources department sought to design jobs that have distinct and important roles in the organization, that are meaningful, and that foster a sense of contribution to the organization so as to fulfill employees' drive to defend. bond. comprehend. acquire.

comprehend.

Inside Patagonia, Inc., there is a culture that encourages innovation and risk taking. Employees are encouraged to experiment with products and fabrics to produce better designs. In addition, Patagonia encourages employees to leave work early to surf or rock-climb. Patagonia is likely using a differentiation strategy. stuck in the middle strategy. low-cost focus strategy. cost leadership strategy.

differentiation strategy.

The realistic conflict theory proposes that limited resources will lead to conflict between groups. intergroup conflict emerges when the other group is viewed as the enemy. conflict can escalate when disagreements become personal. group members of an in-group will seek to find negative aspects of an out-group.

limited resources will lead to conflict between groups.

Foodies, a food manufacturing company, made plans to either open a new outlet in Berylia, a country where the majority are low-income families, or Erbia, a country where the majority of the people belong to high-income families. It finally decides to open a new outlet in Berylia by offering products with reduced cost as the demand for its product is greater in Berylia. This scenario is an example of _____ in defining a strategy. making trade-offs developing objectives choosing a set of activities creating fit among activities

making trade-offs

Because GE operates in many businesses, ranging from aircraft engines to healthcare imaging, GE would have to choose one business unit with which it could use the balanced scorecard. have to adopt a common strategy for all businesses to be able to use the balanced scorecard. need to create a unique balanced scorecard for each of its business units. not be able to use the balanced scorecard.

need to create a unique balanced scorecard for each of its business units.

While saying "yes," Mark shook his head no while looking down at the ground. Assuming he meant "yes," his body language represented ______ to the receiver of the message. tone noise channel approach

noise

Mona has an employee who is very skilled yet lacks the motivation to function at his best. Based on Hersey and Blanchard's situational theory, Mona should focus on delegation. offer support. be directive. act as a guide.

offer support.

Esther avoids micromanaging and allows subordinates to work autonomously. She takes action only when work falls below standards, allowing subordinates to learn from mistakes and become more functionally independent. Esther is demonstrating active CR. passive CR. active MBE. passive MBE.

passive MBE.

The most important provision of the Civil Rights Act, Title VII is that it established a federal minimum wage, set maximum hours for a workweek, and officially banned child labor. allows employees to take unpaid leaves of absence for family and medical reasons without losing their jobs. established minimum conditions for health, safety, and general well-being of workplaces. prohibits employment discrimination based on race, sex, color, religion, and national origin.

prohibits employment discrimination based on race, sex, color, religion, and national origin

Jim, a programing expert at CL Corp., creates a new software program. However, before he can reveal his program, he receives an attractive employment offer from a rival company. Jim resigns from CL Corp. and accepts the rival company's offer, and he mentions the new software to his new employer. In this scenario, Jim is engaging in a conflict of interest. violating employee privacy. revealing a trade secret. competing fairly in the open market.

revealing a trade secret.

The act of choosing a solution that is good enough is called discounting. satisficing. reasoning. framing.

satisficing.

The factor that distinguishes an internal environment of an organization from an external environment is that: the internal environment includes entities that directly affect a firm on a continuous basis. the internal environment includes owners, the board of directors, employees, and culture. the internal environment consists of the technological, economic, and sociocultural factors. the internal environment consists of the general environment and the task environment.

the internal environment includes owners, the board of directors, employees, and culture.

According to the contingent view organizations must be understood as systems of interdependent human beings. jobs must be designed to improve productivity using industrial engineering methods. the organization's structure should fit the firm's environment. coordination should take place through a strict hierarchy of authority.

the organization's structure should fit the firm's environment.