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1
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Because change is constant and brings new risks, a company is reviewing the current
context for risk management. Which assessment will provide information on changing
internal and external risk elements?
Select one:

a.
Porter's five-force analysis

b.
Risk analysis

Incorrect

c.
SWOT analysis

d.
PESTLE scan

e.
Risk survey
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The correct answer is: SWOT analysis
Question 2
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What is a key responsibility of the operations function in an organization?
Select one:
a.
Deciding which features and benefits will appeal to customers

b.
Deciding the suppliers of raw materials

c.
Communicating the benefits of the product to customers

d.
Ensuring that the product is priced profitably

e.
Determining the ability of the company to meet product demand

Correct
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The correct answer is: Determining the ability of the company to meet product demand
Question 3
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Three months ago, a firm reorganized its customer service agents into a team structure
and introduced a new team-based compensation plan. Since then, employee morale has
declined. Which stage of team formation does the customer service group represent?
Select one:

a.
Performing

b.
Forming

Correct

c.
Norming

d.
Adjourning

e.
Storming
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The correct answer is: Forming
Question 4
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An HR director is working with the vice president of another division on a plan to
improve HR services to the division. The vice president disagrees with HR's plan. How
can the HR director show respect to this individual but still be in a position to influence
him to accept a third, negotiated plan?
Select one:

a.
Use observation and conversation to find out flaws in the vice president's plan

b.
Ask allies in the organization who support the HR position to talk to the vice president

c.
Express the original HR plan in a new way that helps the vice president better understand it

d.
Express the vice president's opinion and its merits back to him

Correct

e.
Arrange a meeting with the CEO and invite the vice president to the meeting
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The correct answer is: Express the vice president's opinion and its merits back to him
Question 5
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Engagement drivers differ from country to country, making it important to understand
cultural differences that may influence survey results. In a multinational organization, in
which type of culture may employee surveys be less acceptable?
Select one:

a.
Feminist

Incorrect

b.
Collectivist

c.
Egalitarian

d.
Individualist

e.
Hierarchical
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The correct answer is: Hierarchical
Question 6
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A company is ready to begin a major change initiative. A coalition which includes heads
of different departments has been established to lead the change. Which is the most
important role that this coalition should play?
Select one:

a.
Assuming responsibility and accountability for implementing the change

Incorrect

b.
Ensuring regular and ongoing communication with employees

c.
Involving employees in the decision-making process

d.
Analyzing whether the change is actually needed

e.
Counseling people who are upset by the change
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The correct answer is: Ensuring regular and ongoing communication with employees
Question 7
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An enterprise wants to develop a strong organizational commitment to ethical standards.
Which is the best way to communicate this commitment?
Select one:

a.
Delivering annual workshops on how to deal with ethical dilemmas

b.
Discussing about ethical standards with new employees upon their entry

c.
Inserting a statement to this effect in employee handbooks

Incorrect

d.
Modeling of ethical behavior by leaders, managers, and supervisors

e.
Coaching individual employees whenever a question of ethics arises
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The correct answer is: Modeling of ethical behavior by leaders, managers, and supervisors
Question 8
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An IT manager wants to alert the IT director about a potentially serious employee
complaint. Since the IT director is always busy and it is hard to find a private moment to
discuss the issue, the manager sends an e-mail. What is the likely outcome?
Select one:

a.
The director will be able to move quickly to manage potential risks to the employer and employees.

b.
The director will respond quickly as long as he perceives employees as the most valuable assets of the
company.

Incorrect

c.
The director will not receive this crucial information about an organizational risk.

d.
The director will ask the manager why the manager has not already investigated and addressed the
issue.

e.
The director will not appreciate that the manager has communicated the issue in a way that can be
documented.
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The correct answer is: The director will not receive this crucial information about an organizational risk.
Question 9
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Which organizational structure is best described as being divided according to a linear
process?
Select one:

a.
Global organization

b.
Hybrid organization

Incorrect

c.
Functional organization

d.
Product organization

e.
Geographic organization
Feedback
The correct answer is: Functional organization
Question 10
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The HR director discovers that the talent selection process is being delayed because the
HR staff is not empowered to make decisions. Which organizational change would be
most effective in aligning this process with HR's strategic mission to provide service to
internal customers?
Select one:

a.
Review and revise the organizational structure

b.
Review the current process of empowerment

Incorrect

c.
Upgrade the HR information system used for hiring

d.
Develop a service level agreement with hiring managers

e.
Review HR's mission and values with all staff members
Feedback
The correct answer is: Review and revise the organizational structure
Question 11
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Which trait is not desirable in a leader in any culture?
Select one:

a.
Affability

b.
Task orientation

c.
Win-win mentality

d.
Loner

Correct

e.
Dependability
Feedback
The correct answer is: Loner
Question 12
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An employee informs his supervisor that he feels unmotivated and is unsure of his
accomplishments. The supervisor consults with the HR manager, who recommends
increasing the employee's motivation by providing him with specific objectives so he can
assess his achievement. What motivational theory is the HR manager recommending?
Select one:

a.
Expectancy theory

b.
Three-need theory

c.
Goal-setting theory

Correct

d.
Leader-member exchange theory

e.
Theory X
Feedback
The correct answer is: Goal-setting theory
Question 13
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A company in a high-power distance culture is expanding into another country with low-
power distance. Which of the following recommendations should be made to the top
management of the home country?
Select one:

a.
Narrow down the span of control

Incorrect

b.
Display titles of those in authority.

c.
Decrease the frequency of workforce communication.

d.
Expect to be asked more questions about management decisions.

e.
Provide employees with clear and specific guidance.
Feedback
The correct answer is: Expect to be asked more questions about management decisions.
Question 14
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Which best describes the relationship of the strategic planning process to the
environmental scan?
Select one:

a.
The environmental scan is completed in lieu of strategic planning.

b.
The environmental scan is optional if the organization does strategic planning.

c.
The environmental scan is performed by one group, and another group completes strategic planning.
d.
Environment scanning is an indispensable process to verify the reliability and validity of a formulated
strategy.

e.
Environmental scanning is done as part of the strategic planning process.

Correct
Feedback
The correct answer is: Environmental scanning is done as part of the strategic planning process.
Question 15
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An organization promotes teamwork as a core value. Which would be the best way to
model this value for the whole personnel?
Select one:

a.
Establishing cross-functional brainstorming groups

Correct

b.
Encouraging subordinates to take leadership roles

c.
Scheduling workshops on teamwork

d.
Implementing a mentoring program

e.
Hiring new employees with excellent teamwork skills
Feedback
The correct answer is: Establishing cross-functional brainstorming groups
Question 16
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Florance is a chain of flower shops in the Chicago area. The company recently acquired Knick-knacks,
which owns three gift shops. Which of the following is most similar to this acquisition?
Select one:

a.
A construction firm acquired a textile manufacturer as it seemed like a good investment.

b.
A toy retailer acquired a children's book store chain and now retails both toys and books from co-branded outlets.

Correct

c.
One shoe store chain buys out another shoe store chain and expands its distribution channels through the
acquired chain's outlets.

d.
Faced with mounting raw material costs, a consumer goods producer took over its supplier.
Feedback
The correct answer is: A toy retailer acquired a children's book store chain and now retails both toys and books
from co-branded outlets.
Question 17
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Functional-level strategy directly supports the ________.

Select one:

a.
corporate strategy

b.
competitive strategy

c.
concentration strategy

Incorrect

d.
operating strategy
Feedback
The correct answer is: competitive strategy
Question 18
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The French fries at Ronald's fast-food business have been its most popular product. During the past
year, its profits have suffered because the farm that supplies it with potatoes has increased its prices
drastically. What should Ronald's do to control its production costs?
Select one:

a.
Ronald's should buy out the farm and become its own supplier.

Correct

b.
Ronald's should broaden its product range by introducing potato nuggets on its menu.

c.
Ronald's should expand its menu to include sweet potato fries.

d.
Ronald's should invest in more efficient fryers.
Feedback
The correct answer is: Ronald's should buy out the farm and become its own supplier.
Question 19
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An organization that is diversifying its product line is exhibiting what type of corporate strategy?
Select one:

a.
diversification strategy

Incorrect

b.
retrenchment strategy

c.
growth strategy

d.
turnaround strategy
Feedback
The correct answer is: growth strategy
Question 20
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Tom's Welding has been supplying frames to the mobile home industry for many years. His business
has remained steady despite the entry of other firms into the industry. Tom's is likely pursuing a
________ strategy.
Select one:

a.
renewal

b.
differentiation
Incorrect

c.
retrenchment

d.
stability
Feedback
The correct answer is: stability
Question 21
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In an organization, the single independent businesses which formulate their own competitive
strategies are known as ________.
Select one:

a.
service units

b.
strategic business units

Correct

c.
strategic growth units

d.
strategic profit units
Feedback
The correct answer is: strategic business units
Question 22
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A ________ describes how a business will compete in its primary market.

Select one:

a.
competitive advantage

b.
corporate strategy

c.
competitive strategy

Correct

d.
mission statement
Feedback
The correct answer is: competitive strategy
Question 23
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Tom's Welding is in its third year of operation. Tom now has a sales person and several production
employees. It is most likely Tom has a ________ structure.
Select one:

a.
simple

b.
matrix
c.
divisional

d.
functional

Incorrect
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The correct answer is: simple
Question 24
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Which of the following factors would require a more decentralized organizational structure?
Select one:

a.
when the company is large

b.
when the decisions to be made are not significant

c.
when the lower-level managers are not capable of making decisions

d.
when the lower-level managers want a voice in decisions

Correct
Feedback
The correct answer is: when the lower-level managers want a voice in decisions
Question 25
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A(n) ________ organization is highly specialized and rigidly departmentalized.

Select one:

a.
learning

b.
mechanistic

Correct

c.
complex

d.
organic
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The correct answer is: mechanistic
Question 26
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In which of the following traditional organizational designs does duplication of activities and resources
lead to an increase in costs and reduced efficiency?
Select one:

a.
team structure

b.
project structure
c.
matrix structure

d.
divisional structure

Correct
Feedback
The correct answer is: divisional structure
Question 27
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A refinery that transforms crude oil into gasoline, kerosene, and diesel fuel would be an example of
________.
Select one:

a.
process production

Correct

b.
mass production

c.
unit production

d.
continuous production
Feedback
The correct answer is: process production
Question 28
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In a ________ structure the parent corporation typically acts as an external overseer to coordinate
and control the various divisions and provide financial, legal, or other such support services.
Select one:

a.
divisional

Correct

b.
matrix

c.
functional

d.
simple
Feedback
The correct answer is: divisional
Question 29
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The line of authority that extends from upper organizational levels to lower levels, clarifying who
reports to whom, is known as the ________.
Select one:

a.
unity of command

b.
span of control
c.
employee power distance

d.
chain of command

Correct
Feedback
The correct answer is: chain of command
Question 30
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All other things being equal, the wider or larger the span of control, the more ________ an
organization is.
Select one:

a.
mechanistic

b.
rigid

c.
cost efficient

Correct

d.
ambitious
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The correct answer is: cost efficient
Question 31
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Goal-setting theory assumes that an individual is committed to the goal. Commitment is most likely
when ________.
Select one:

a.
goals are not made public

b.
the individual has an internal locus of control

Correct

c.
goals are assigned and not self-set

d.
the individual has low self-efficacy
Feedback
The correct answer is: the individual has an internal locus of control
Question 32
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People with a high need for achievement ________.

Select one:

a.
make good managers, especially in large organizations

b.
emphasize the rewards of success
Incorrect

c.
prefer moderately challenging goals

d.
emphasize helping others accomplish their goals
Feedback
The correct answer is: prefer moderately challenging goals
Question 33
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Irene, CEO of a small company, strongly believes in Douglas McGregor's assumptions about human
nature. Which one of the following management practices is Irene most likely to favor to maximize
employee motivation?
Select one:

a.
participatory management

Correct

b.
a stringent system of monitoring and controlling employees

c.
making jobs narrower in scope and shallow in depth

d.
a top-down decision-making structure
Feedback
The correct answer is: participatory management
Question 34
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Jack Hammer is a retired man who has decided to seek work with your company to supplement his
retirement income. As you consider whether he will be a good fit for your department, you decide
that he is likely to find satisfaction in the job because it ________.
Select one:

a.
is in a highly structured work environment

Correct

b.
offers convenient and flexible work hours

c.
provides an opportunity for interpersonal relationships

d.
is characterized by a high degree of independence
Feedback
The correct answer is: is in a highly structured work environment
Question 35
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Coworkers Bob and Tom were comparing checks on Friday. Bob saw that Tom's was significantly
larger, which made Bob unhappy. Which theory best explains Bob's reaction?
Select one:

a.
Herzberg's two-factor theory

b.
Vroom's expectancy theory

c.
Maslow's hierarchy of needs theory

d.
Adams' equity theory

Correct
Feedback
The correct answer is: Adams' equity theory
Question 36
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After seeing Tom's paycheck, Bob decided their inputs were nearly identical but Tom's check was
much larger. Bob decided to take action to make things fairer in his mind. He is most likely to
________.
Select one:

a.
reduce his effort at work

Correct

b.
find another person to compare checks with

c.
focus on the quality of his production

d.
increase the quantity of his production
Feedback
The correct answer is: reduce his effort at work
Question 37
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At 3M, workers are allowed up to 15% of their paid time to devote to projects of their own choosing.
For that time, workers have ________.
Select one:

a.
low feedback

b.
high task significance

c.
high autonomy

Correct

d.
high task identity
Feedback
The correct answer is: high autonomy
Question 38
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The company announced it would be laying off several workers because of the loss of several large
orders. Employees wondered how the workers to be laid off would be selected. They were concerned
with ________.
Select one:

a.
procedural justice

b.
distributive justice

Incorrect

c.
need for achievement

d.
equity
Feedback
The correct answer is: procedural justice
Question 39
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Which one of the following is included in the class of contingency variables termed
"environment" by the path-goal theory?
Select one:

a.
locus of control and experience

b.
perceived ability

c.
task structure and formal authority system

Correct

d.
employee satisfaction
Feedback

The correct answer is: task structure and formal authority system

Question 40
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Alex was classified as an achievement-oriented leader by his team. Which one of the
following would describe Alex's leadership style best?
Select one:

a.
He sets challenging goals and expects subordinates to perform at their highest level.

b.
He consults with subordinates and uses their suggestions before making a decision.

c.
He lets subordinates know what's expected of them, schedules work to be done, and gives specific
guidance on how to accomplish tasks.

d.
He shows concern for the needs of his subordinates and is friendly.

Incorrect
Feedback

The correct answer is: He sets challenging goals and expects subordinates to perform at their highest
level.
Question 41
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Which leadership theory asserts that a leader's job is to assist followers in attaining their
goals and to ensure that their goals are compatible with the goals of the group or
organization?
Select one:

a.
Leader-Member Exchange

b.
Fiedler's Theory

c.
Leader Participation Model

d.
Path-Goal Theory

Correct
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The correct answer is: Path-Goal Theory

Question 42
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Eddie generally lets subordinates know what's expected of them, schedules work to be done,
and gives specific guidance on how to accomplish tasks. He would be termed a(n) ________
leader.
Select one:

a.
directive

Correct

b.
supportive

c.
high-structure

d.
situational
Feedback
The correct answer is: directive
Question 43
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Bill expects his employees to wonder "What's in it for me?" when he assigns extra tasks to
them, so he is ready with an answer about the reward for their work. Bill is a(n) ________
leader.
Select one:

a.
transformational

Incorrect

b.
situational

c.
charismatic

d.
transactional
Feedback

The correct answer is: transactional

Question 44
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Don has been on the job only a few days. He still has a lot to learn but pays close attention
whenever his job coach gives him tips. The best style for the job coach to use is ________.
Select one:
a.
participating

b.
delegating

c.
selling

Correct

d.
telling
Feedback

The correct answer is: selling

Question 45
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Which one of the following describes the leadership style in which the leader generally gives
the group complete freedom to make decisions and complete the work in whatever way it
sees fit?
Select one:

a.
laissez-faire style

b.
democratic style

Incorrect

c.
facilitative style

d.
delegative style
Feedback

The correct answer is: laissez-faire style

Question 46
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Having a control system increases the scope of employee empowerment.

Select one:

a.
False

Correct

b.
True
Feedback

The correct answer is: False

Question 47
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Using corporate hotlines or other mechanisms for reporting and investigating workplace
violence is an example of feedback control.
Select one:

a.
False

Correct
b.
True
Feedback

The correct answer is: False

Question 48
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Managers tend to use more direct supervision and highly centralized decision making for
control in less technologically advanced countries.
Select one:

a.
True

Correct

b.
False
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The correct answer is: True

Question 49
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Corporate governance is the system used to govern a corporation so that the interests of
stakeholders are protected.
Select one:

a.
False
Correct

b.
True
Feedback

The correct answer is: False

Question 50
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Question text

Feedforward control takes place while a work activity is in progress.

Select one:

a.
True

b.
False
Feedback

The correct answer is: False