1) _____ can be defined as a set of activities directed at an organization's

resources, with the aim of achieving organizational goals in an efficient and

effective manner.
A) Economics
B) Job de-skilling
C) Management
D) Self-dealing
E) Divestment
C
2) Which of the following helps make the management process efficient?
A) Increasing overhead production costs
B) Using resources in a cost-effective manner
C) Making management decisions independently of the organization's external
environment
D) Using the majority of resources for sales promotion activities
E) Using micromanagement techniques
B
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3) A management process is considered to be effective when:
A) overhead production costs are increased.
B) the right decisions are made and implemented.
C) decisions are made independently of the organization's external
environment.
D) the same amount of resources are allocated to all the functions of the
organization.
E) the organization is highly centralized.
B
4) One of the titles found in the group of middle managers is _____.
A) director
B) vice president
C) supervisor
D) office manager
E) plant manager
E
5) Which of the following statements is true about top managers?
A) They are the largest group of managers in most organizations.
B) They officially represent their organization to the external environment.
C) They primarily oversee the day-to-day operations of an organization.
D) They supervise and coordinate the activities of first-line managers.
E) They supervise and coordinate the activities of operating employees.
B
6) Which of the following is the role of top managers in an organization?
A) Overseeing day-to-day operations
B) Performing routine administrative tasks
C) Implementing plans of first-line managers
D) Creating organizational goals and overall strategy
E) Coordinating the work of first-line managers
d
7) _____ make decisions about activities such as investing in research
and development (R&D) and entering or abandoning various markets.
A) Division heads
B) Limited partners
C) First-line managers
D) Middle managers
E) Top managers
e
8) A common middle-management title is:
A) chief executive officer.
B) division head.
C) supervisor.
D) office manager.
E) coordinator.
b
9) _____ are probably the largest group of managers in most
organizations, and are primarily responsible for implementing the policies and
plans of an organization.
A) Middle managers
B) Top managers
C) The members of board of directors
D) First-line managers
E) Floor supervisors
a
10) First-line managers:
A) are primarily responsible for implementing the policies and plans developed
by top managers.
B) make decisions about activities such as acquiring other companies.
C) officially represent their organization to the external environment.
D) create organizational goals.
E) handle administrative duties.
e
11) Which of the following statements is true about first-line managers?
A) They are primarily responsible for implementing policies made by top
managers.
B) They are typically involved in creating overall organizational strategies and
goals.
C) They officially represent their organization to the external environment.
D) They typically spend a large proportion of their time supervising the work
of their subordinates.
E) They make decisions about activities such as acquiring other companies.
d
12) _____ involves selecting a course of action from a set of alternatives.
A) Divesting
B) Controlling
C) Leading
D) Decision making
E) Job deskilling
d
13) One of the titles found in the group of first-line managers is _____.
A) chief executive officer
B) coordinator
C) division head
D) general manager
E) plant superintendent
b
14) Determining how a company's activities and resources are to be
grouped is called _____.
A) leading
B) controlling
C) deskilling
D) planning
E) organizing
e
15) yler works with Alpha Pharmaceuticals Inc. He is primarily responsible for
overseeing production activities. Tyler is concerned with decisions such as the
number of product units that need to be manufactured, the overall functioning
of the production plants, and the quality of products. Tyler is most likely to be
a(n)_____.
A) operations manager
B) marketing manager
C) human resource manager
D) sales manager
E) public relations manager
a
16) Typical responsibilities of operations managers include:
A) inventory control.
B) sales promotion.
C) accounting.
D) employee development.
E) benefit systems development.
a
17) In its simplest form, _____ means setting an organization's goals and
deciding how best to achieve them.
A) coordinating
B) deskilling
C) organizing
D) controlling
E) planning
e
18) Which of the following would be included in the management function of
planning?
A) Selecting the course of action most likely to lead to success
B) Monitoring progress toward the achievement of goals
C) Motivating others to higher levels of achievement
D) Communicating company policies to subordinates
E) Organizing people and resources
a
19) _____ work in areas like new product development, promotion, and
distribution.
A) Human resource managers
B) Marketing managers
C) Plant managers
D) Operations managers
E) Finance managers
b
20) _____ are typically involved in recruiting and selecting employees, training
and development, designing compensation and benefit systems, formulating
performance appraisal systems, and discharging low-performing and problem
employees.
A) Operations managers
B) Human resource managers
C) Plant managers
D) Marketing managers
E) Finance managers
b
21) _____ work at getting consumers and clients to buy the organization's
products or services.
A) Operations managers
B) Marketing managers
C) Regional managers
D) Financial managers
E) Human resources managers
b
22) _____ are concerned with creating and managing the systems that create
an organization's products and services.
A) Marketing managers
B) Human resources managers
C) Financial managers
D) Operations managers
E) First-line managers
d
23) _____ are not associated with any particular management specialty.
A) Office managers
B) Floor supervisors
C) Public relations managers
D) Operations managers
E) Administrative managers
e
24) _____ is the set of processes used to get members of an organization to
work together to further the interests of the organization.
A) Planning
B) Organizing
C) Controlling
D) Leading
E) Deskilling
d
25) The final phase of the management process is _____ that involves
monitoring the organization's progress toward its goals.
A) planning
B) organizing
C) leading
D) controlling
E) deskilling
d
26) The management function of leading involves:
A) setting an organization's goals.
B) motivating and influencing others.
C) grouping activities and resources.
D) interacting with the external business environment.
E) creating organizational strategies.
b
27) The management at Beta Corp. has introduced new employment policies.
The mangers are now tracking and monitoring the implementation of the new
policies. Which of the following management functions is illustrated in the
scenario?
A) Deskilling
B) Controlling
C) Organizing
D) Leading
E) Planning
b
28) The skills necessary to accomplish or understand the specific kind of work
done in an organization are called _____ skills.
A) diagnostic
B) time management
C) conceptual
D) technical
E) spatial
d
29) ____ skills refer to the abilities of managers to think in the abstract,
understand the overall workings of the organization and its environment, to
grasp how all the parts of the organization fit together, and to view the
organization in a holistic manner.
A) Time management
B) Technical
C) Conceptual
D) Interpersonal
E) Communication
c
30) Technical skills:
A) are crucial for top managers more than any other managers.
B) are nonspecific and broad.
C) depend on a manager's ability to think in the abstract.
D) are especially important for first-line managers.
E) are used the most when making organizational policies.
d
31) When a manager answers a subordinate's question regarding the
process of creating a report from raw data, he is relying on his _____ skills.
A) abstract
B) technical
C) time management
D) decision-making
E) spatial
b
32) The ability to motivate others is a(n) _____ skill.
A) conceptual
B) technical
C) communication
D) interpersonal
E) diagnostic
d
33) Winston is often intimidated and uncomfortable with his superiors.
Winston needs to develop his _____ skills to be able to communicate easily
with his superiors.
A) time management
B) spatial
C) interpersonal
D) conceptual
E) diagnostic
c
34) Maria, a manager, studied the performances of the various business
units of her organization. After making an assessment, Maria came to the
conclusion that the overall costs of the organization can be reduced by
integrating the functions of two of the business units. This scenario illustrates
Maria's _____ skills.
A) technical
B) time management
C) social
D) interpersonal
E) conceptual
e
35) _____ skills refer to the abilities of managers to visualize the most
appropriate response to a situation.
A) Social
B) Interpersonal
C) Technical
D) Diagnostic
E) Communication
d
36) _____ skills refer to a manager's abilities to both effectively convey
ideas and information to others and effectively receive ideas and information
from others.
A) Technical
B) Abstract
C) Communication
D) Diagnostic
E) Conceptual
c
37) When a manager writes a mail to a supplier apologizing for a delay in
payment, he is most likely to be using his _____ skills.
A) conceptual
B) technical
C) communication
D) abstract
E) spatial
c
38) Sarah, a manager, has postponed the task of preparing a report as
she has realized that she needs to meet a supplier immediately. This
scenario illustrates Sarah's _____ skills.
A) conceptual
B) spatial
C) time management
D) technical
E) abstract
c
39) Jordon, a manager, realizes that many employees are leaving the
organization. He identifies inconvenient work timings and some of the new
employment policies as the causes. Jordon decides to introduce better
policies and flexible work timings to reduce employee turnover. This scenario
illustrates Jordon's _____ skills.
A) mechanical
B) technical
C) diagnostic
D) spatial
E) time management
c
40) _____ refer to a manager's ability to prioritize work, to work efficiently,
and to delegate work appropriately.
A) Diagnostic skills
B) Commanding skills
C) Decision-making skills
D) Time-management skills
E) Conceptual skills
d
41) A manager who uses the scientific approach to management when
making decisions is most likely rely on:
A) instincts.
B) stereotypes.
C) personal experience.
D) intuition.
E) Logic.
e
42) A _____ is a conceptual framework for organizing knowledge and
providing a blueprint for action.
A) classic
B) mnemonic
C) prediction
D) theory
E) doctrine
d
43) When employees deliberately work at a slower pace than their
capabilities, it is called _____.
A) Soldiering
B) persevering
C) controlling
D) planning
E) deceiving
a
44) Scientific management focuses on:
A) improving the efficiency of individual workers.
B) increasing employee turnover.
C) analyzing the external rather than the internal environment of an
organization.
D) encouraging soldiering among employees.
E) increasing overhead costs.
a

45) Lillian Gilbreth was one of the earliest advocates of:

A) the contingency theory.
B) scientific management.
C) administrative management.
D) theory X and Y.
E) the Hawthorne studies.
b
46) The first person to identify the managerial functions of planning,
organizing, leading, and controlling was:
A) Elton Mayo.
B) Lillian Gilbreth.
C) Henri Fayol.
D) Hugo Munsterberg.
E) Mary Parker Follett.
c
47) Which of the following focuses on the management of the entire firm as
opposed to the jobs of individual workers?
A) The Contingency theory
B) Scientific management
C) Administrative management
D) Theory X
E) The Hawthorne studies
c
48) Which of the following statements is true of administrative management?
A) It deals with the jobs of individual employees.
B) It was first introduced by Frank and Lillian Gilbreth.
C) It focuses solely on combating soldiering.
D) It encompasses the concepts of planning, organizing, and controlling.
E) It exclusively focuses on individual attitudes and behaviors and group
processes.
d
49) The scientific management perspective:
A) assumed that workers liked their work.
B) focused on the overall management of an organization rather than
individual employees.
C) emphasized the importance of supervising workers.
D) was based on the assumption that workers are internally motivated to
achieve organizational goals.
E) placed maximum emphasis on individual attitudes and behaviors.
c
50) Which of the following statements is true about the behavioral
management perspective?
A) It was first introduced by Max Weber.
B) It viewed jobs and organizations from a mechanistic point of view.
C) It was influenced by the industrial psychology movement.
D) It essentially dealt with job specialization techniques.
E) It slighted the role of the individual in organizations.

51) The concept of _____, suggested by Weber, is based on a rational set

of guidelines for structuring organizations in the most efficient manner.
A) adhocracy
B) bureaucracy
C) technocracy
D) meritocracy
E) scientocracy
b
52) Early advocates of the classical management perspective viewed
organizations and jobs from an essentially _____ point of view.
A) Mechanistic
B) behavioral
C) humanistic
D) systematic
E) contingent
a
53) _____ is recognized as the father of industrial psychology.
A) Douglas McGregor
B) Elton Mayo
C) Abraham Maslow
D) Hugo Munsterberg
E) Henri Fayol
d
54) The management pioneer who performed the Hawthorne studies at
Western Electric was:
A) Lillian Gilbreth.
B) Elton Mayo.
C) Henry Gantt.
D) Frank Gilbreth.
E) Frederick Taylor.
b
55) in the Hawthorne Studies, workers who overproduced were branded
as _____.
A) operators
B) squealers
C) rate busters
D) chiselers
E) producers
c
56) Which of the following was one of the findings of the Hawthorne
studies?
A) Workers tend to underperform when they are given special attention or
supervision.
B) Higher pay and incentives are more important to workers than social
acceptance.
C) All the workers in a group work toward achieving productivity targets set by
supervisors.
D) Both individual and social processes play a major role in shaping worker
behavior.
E) Workers in all groups tend to encourage and support members who are
over productive.
d
57) Which of the following is a Theory Y assumption?
A) Social processes do not influence the performance of workers.
B) People are not internally motivated to achieve their goals.
C) People do not naturally dislike work.
D) People like to be directed as they want security.
E) People perform better when they are threatened by the manager.
c
58) Which of the following assumptions is represented by Theory Y?
A) People prefer to be directed, to avoid responsibility, and to want security.
B) People are bright, but under most organizational conditions, their potential
is underutilized.
C) People do not like work and try to avoid it.
D) The productivity of workers is not affected by social processes at the
workplace.
E) Managers need to be coercive to get work done from their workers.
b
59) A difference between Theory X and Theory Y is that:
A) Theory X makes positive assumptions.
B) Theory Y is consistent with the views of scientific management.
C) Theory Y assumes that people lack ambition.
D) Theory Y represents the assumptions made by human relations advocates.
E) Theory Y assumes that people naturally dislike work.
d
60) A Theory Y assumption is that:
A) incentives rather than social processes influence workers.
B) managers have to control, direct, coerce, and threaten employees to get
them to work toward organizational goals.
C) people prefer to be directed, to avoid responsibility, and to want security;
they have little ambition.
D) people are committed to goals to the degree that they receive personal
rewards when they reach their objectives.
E) people naturally dislike work and try to avoid it.
d
61) The _____ proposed that workers respond primarily to the social
context of the workplace, including social conditioning, group norms, and
interpersonal dynamics.
A) classical management perspective
B) human relations movement
C) systems theory
D) management science perspective
E) organizational theory
b
62) Which of the following is a Theory X assumption?
A) People will both seek and accept responsibility.
B) Managers are harsh on their employees.
C) People have little ambition.
D) People are internally motivated.
E) People do not naturally dislike work.
c
63) Which of the following draws from psychology, sociology, anthropology,
economics, and medicine?
A) Organizational behavior
B) Scientific management
C) Administrative management
D) Systems perspective
E) Contingency perspective
a
64) When a manufacturing plant uses mathematical models to plan
production and schedule equipment maintenance, it is drawing upon:
A) scientific management.
B) administrative management.
C) management science.
D) behavioral perspective.
E) Theory X assumptions.
c
65) Which of the following represent the two branches of the quantitative
management theory?
A) Scientific management and administrative management
B) Human relations movement and organizational behavior
C) Contingency theory and systems theory
D) Theory X and Theory Y
E) Management science and operations management
e
66) The _____ perspective focuses on decision making, cost-
effectiveness, mathematical models, and the use of computers.
A) systems management
B) behavioral management
C) scientific management
D) administrative management
E) quantitative management
e
67) Which of the following statements is true about management science?
A) It is part of the classical management perspective.
B) It relies on bureaucratic techniques proposed by Max Weber.
C) It focuses on mathematical representations of reality.
D) It is concerned with improving the performance of individual workers.
E) It introduced the piecework pay system.
c
68) Which of the following statements is true about operations
management?
A) It is more statistically sophisticated than management science.
B) It exclusively focuses on improving employee attitudes and behavior.
C) It can be applied more directly to managerial situations than management
science.
D) It relies more on mathematical models than management science.
E) It cannot be applied to inventory control and production operations of an
organization.
c
69) _____ is considered to be a form of applied management science.
A) Scientific management
B) Lean manufacturing
C) Behavioral management
D) Human relations movement
E) Operations management
e
70) In the context of the systems perspective, an output would be:
A) technological processes.
B) labor skills.
C) services.
D) raw materials.
E) human resources.
c
71) In the context of the systems perspective, an input would be:
A) human resources.
B) losses.
C) feedback loops.
D) products.
E) services.
a
72) Relatively new management concepts such as supply chain
management and new techniques such as enterprise resource planning have
evolved from the _____ perspective.
A) quantitative management
B) systems
C) contingency
D) classical management
,E) behavioral management
a
73) In the systems perspective, outputs include _____.
A) raw materials
B) controls
C) funds
D) human resources
E) employee attitudes
e
74) Which of the following statements is true in the context of the systems
perspective?
A) Entropy is a process that leads to system progress.
B) Products and services can be considered as system inputs.
C) A closed system is closely connected with and interacts with its
environment.
D) The performance of one subsystem does not affect the performance of
another subsystem.
E) Organizations essentially should be open systems.
e
75) _____ is a normal process that leads to system decline.
A) Economy of scale
B) Synergy
C) Entropy
D) Contingency
E) Symbiosis
c
76) _____ suggests that organizational units (or subsystems) may often be
more successful working together than working alone.
A) Divestiture
B) Operations management
C) Synergy
D) Entropy
E) Soldiering
c
77) The _____ suggests that appropriate managerial behavior in a given
situation depends on unique elements in a that situation.
A) behavioral management perspective
B) quantitative management perspective
C) systems perspective
D) contingency perspective
E) universal perspective
d
78) Emilio says, "Employees and situations are unique. Sometimes I get good
results by trying one approach, sometimes I decide to do something
completely different." Emilio's statement is best aligned with which of the
following management views?
A) The classical theory
B) Administrative management
C) The generalist perspective
D) Theory X
E) The contingency perspective
e
79) In the systems perspective, _____ emphasizes the importance of working
together in a cooperative and coordinated fashion.
A) synergy
B) entropy
C) contingency
D) diversity
E) uniformity
a
80) A primary objective of management, from a systems perspective, is to
continually reenergize the organization to avoid _____.
A) reciprocity
B) collaboration
C) diversity
D) entropy
E) synergy
d
81) The _____ perspective states that effective managerial behavior in one
situation cannot always be generalized to other situations.
A) behavioral
B) scientific management
C) contingency
D) administrative management
E) systems
c
82) Which of the following statements is true about the contingency
perspective?
A) It states that the organizations which are not influenced by their external
environments tend to be more successful than others.
B) It states that effective managerial behavior in one situation cannot always
be generalized to other situations.
C) It states that all employees tend to perform better when they are promised
higher incentives.
D) It states that the behavior of employees at work is not influenced by social
processes.
E) It is a part of the classical perspective of management.
b
83) Which of the following statements is true in the context of contemporary
management trends?
A) More and more organizations are using quality as a basis for competition.
B) The service sector of the economy has steadily declined.
C) Younger people entering the workforce over the past 20 to 30 years are
more devoted to work and more willing to adapt.
D) The emphasis on business ethics has declined.
E) The emphasis on management of diversity has declined.
a
84) Improving the quality of products and services tends to increase _____.
A) inertia
B) entropy
C) latency
D) productivity
E) divestment
d
85) The _____ perspective places emphasis on individual attitudes.
A) contingency
B) systems
C) quantitative management
D) administrative management
E) behavioral management
e

1. Which of the following is a part of an organization's external environment?

a.Board of directors

b.Physical work environment

c.Inflation

d.Organization's culture

e.Employees
c
2. In Asia, consumers have historically had an aversion to debt. However,
in recent years credit card use has grown significantly, supported by
aggressive marketing to promote growth in the region. This example
comprises the _____ dimension of an organization's general environment.

a.economic

b.technological

c.sociocultural

d.political-legal

e.task
a

3. A business manufactures top-of-the-line cabinets. The _____ dimension

of its general environment includes computer-assisted design software that
helps to convert wood and people's idea into lovely, functional cabinets.

a.legal

b.sociocultural

c.technological

d.political

e.economic
c
4. Alex, one of the proprietors of Atlas Corp. is worried. The stock market was
not doing well, unemployment was 10 percent, inflation was on the rise again,
and government debt was still increasing. These concerns of Alex are related
to the _____ dimension of the general environment of Atlas Corp.

a.legal

b.sociocultural

c.technological

d.political
e.economic
e
5. The set of broad dimensions and forces in an organization's surroundings
that determines its overall context is called the _____ environment.

a.task

b.general

c.physical work

d.regulatory

e.ethical
b
6. Which of the following is a concern of the technological dimension of an
organization's general environment?

a.Organization's policies and practices

b.Inflation, interest rates, and unemployment

c.Tools, methods, and technology

d.Government regulations

e.Offices, production facilities, and cafeteria

c
7. A company would begin to do business in another country only if the trade
relationships with that country are relatively well defined and stable. In the
context of general environment, which of the following does this point of view
reflect?

a.Task

b.Economic

c.Technological
d.Political-legal

e.Competitive
d

8. The _____ dimension of the general environment consists of government

regulation of business and the relationship between business and
government.

a.technological

b.task

c.political-legal

d.competitive

e.socio-economic
c
9. Competitors, customers, suppliers, strategic partners, and regulators make
up the _____ environment of an organization.

a.technological

b.general

c.economic

d.political-legal

e.task
e
10. Eastlawn Pharmacy is a local drugstore that has been serving the
neighborhood for over 25 years. Recently, a national pharmacy chain
opened one of its stores two blocks from Eastlawn. Eastlawn is experiencing a
change in its

a.task environment.

b.internal environment.

c.physical work environment.

d.government regulations.

e.organizational culture
11. Which of the following is an accurate difference between the task
environment and the general environment?

a.The general environment is quite complex, whereas the task environment is

very simple.

b.The task environment provides useful information more readily than the
general environment.

c.The task environment deals with more abstract dimensions than the general
environment.

d.The general environment's impact is short term, whereas that of the task
environment is long term.

e.The general environment includes competitors and regulators, whereas that

of the task environment includes customers, suppliers, and strategic partners.
b
12. Laney's and MarketPlace are both grocery stores. They stock similar
products, and customers switch between the stores based on
convenience, sale items, and other promotions. Laney's and MarketPlace are

a.strategic allies.

b.competitors.
c.associates.

d.regulators.

e.suppliers.

13. Nonstop is a free instant messaging and voice chat service that allows
users to communicate with each other, using a microphone and/or a webcam,
over the Internet. Its popularity is increasing and, as a result, the number of
people using Chatterbox, another instant texting service, has decreased.
Nonstop is a _____ to Chatterbox.

a.competitor

b.supplier

c.customer

d.strategic partner

e.regulator
a
14. Organizations that provide resources to other organizations are known as:

a.suppliers.

b.competitors.

c.regulators.

d.interest groups.

e.importers.
a
15. For a private college, parents of students may be considered part of
the _____ dimension of the task environment.

a.supplier

b.competitor

c.regulator

d.strategic partner

e.customer
e
16. Two or more companies that work together in joint ventures or other
partnerships are called what?

a.Strategic partners

b.Competitors

c.Customers

d.Suppliers

e.Regulators
a
17. _____ are elements of the task environment that have the potential to
control, legislate, or otherwise influence an organization's policies and
practices.

a.Board members

b.Owners

c.Strategic partners

d.Employees

e.Regulators
e
18. Ralph Corp. and Swan Inc. have entered into an arrangement in which
Ralph sells Swan's merchandise in its stores, and Swan promotes Ralph
stores in its advertisements. In this context, which of the following best
describes the relationship between Ralph Corp. and Swan Inc.?

a.They are competitors.

b.Ralph is Swan's supplier.

c.Swan is Ralph's supplier.

d.They are strategic partners.

e.They are each customers of the other.

d
19. A diner received many warnings from the local Board of Health regarding
the quality of its food. The Board of Health objected to the trans-fats used
for frying and the freshness of bread and meat used at the diner. The Board
is playing the role of a(n) _____ in the restaurant's environment.

a.competitor

b.customer

c.supplier

d.regulator

e.investor
20. Canyon LLC, a television manufacturing company, is about to launch its
smart TV. The television will come with a built-in web browser by a company
called Wayfarer Inc. to access Internet. Canyon is Wayfarer's _____.

a.strategic partner

b.business rival

c.franchisee

d.supplier
e.owner
a
21. Which of the following would supply capital to a business?

a.Employment agencies

b.Regulators

c.Banks

d.Board of directors

e.Employees
c
22. A group organized by its members to attempt to influence organizations
is known as a(n)

a.interest group.

b.board of directors.

c.strategic ally.

d.competitor.

e.ethics committee.

a
23. _____ are created by the government to protect the public from certain
business practices or to protect organizations from one another.

a.Interest groups

b.Boards of directors

c.Strategic partner

d.Economic councils
e.Regulatory agencies
e
24. A person who purchases stock in a company becomes a(n) _____ of the
company.

a.member of the board of directors

b.customer

c.strategic partner

d.owner

e.regulator
d
25. In a business, which of the following people have legal property rights to
that business?

a.Employees

b.Suppliers

c.Customers

d.Owners

e.Regulators
d
26. A corporate _____ that is relatively passive performs a general oversight
function without getting actively involved in how the company is run.

a.council of strategic partners

b.board of directors

c.regulators directorate

d.whistle-blowing committee

e.economic community
b
27. _____ are hired for short periods of time and provide greater flexibility,
earn lower wages, and often do not participate in benefits programs.

a.Temporary workers

b.Regulatory agencies

c.Interest groups

d.Strategic allies

e.Suppliers
a
28. Which of the following is an element of an organization's internal
environment?

a.Government regulations

b.Competitors

c.Facilities

d.Strategic allies

e.Technology suppliers
c
29. Which of the following accurately describes the responsibility of a
corporate board of directors?

a.Exerting considerable influence by using the media to call attention to their

positions

b.Helping the company get the expertise they lack from other companies

c.Ensuring the firm is run to best serve the stockholders' interests

d.Gaining legal property rights to the business by buying stock

e.Protecting the public from certain business practices or to protect
organizations from one another
c
30. The term _____ refers to an individual's personal beliefs about whether a
behavior, action, or decision is right or wrong.

a.justice

b.culture

c.ethics

d.aesthetics

e.regulations

Chọn 778
31. Which of the following is true of ethics or ethical behavior?

a.Ethics is the same for all individuals.

b.Organizations define ethics in the context of the individual.

c.Organizations themselves have ethics.

d.Ethical behavior is controlled and directed according to rules made by

federal agencies.
ee.Ethical behavior is behavior that conforms to generally accepted social
norms.
32. The management of a company prevents its employees from meeting in
groups of three or more. Which of the following would best describe these
restrictions imposed by the management?

a.Legal

b.Unethical

cIllegal

d.Ethical
e.Racist
b
33. A(n) _____ occurs when an employee's decision potentially benefits the
individual to the possible detriment of the organization.

a.loss of confidence

b.security breach

c.conflict of interest

d.violation of organizational culture

e.act of incitement
c
34. Which of the following terms represents a formal, written statement of
the values and ethical standards that guide a firm's action?

a.Codes of ethics

b.Business plan

c.Standard operating procedures

d.Strategic plan

e.Licensing agreement
a
35. Myrtle Wines, a chain of wine retailers, has prepared guidelines that
clearly specify how employees should interact with suppliers, customers,
competitors, and other people associated with their business. These
guidelines are documented and distributed at all Myrtle outlets. The
guidelines prepared by Myrtle forms its

a.business plan.

b.code of ethics.

c.strategic plan.
d.fair trade standards.

e.licensing agreement.
b
36. Ethical issues in corporate governance are primarily the responsibility of
a.interest goups.
b.employees.
c.strategic partners.
d.the board of directors.
e.federal regulatory agencies.
d
37. _____ is a law that requires CEOs and CFOs to vouch personally for
the truthfulness and fairness of their firms' financial disclosures and
imposes tough new measures to deter and punish corporate and accounting
fraud and corruption.
a.Sarbanes-Oxley Act of 2002
b.Glass-Steagall Act of 1933
c.Gramm-Leach-Bliley Act of 1999
d.Commodity Futures Modernization Act of 2000
e.Investment Company Act of 1940
a
38. When organizations relate to their environments in ways that involve
ethical dilemmas and decisions, these situations are said to fall within the
context of the organization's _____ responsibility.

a.legal
b.ethical
c.social
d.cultural
e.financial
c
39. Some people who argue in favor of social responsibility for businesses
claim that

a.the purpose of business in U.S. society is to generate profit for owners.

b.involvement in social programs gives businesses too much power.
c.businesses do not create problems and should not therefore help solve
them.
d.businesses often have the resources necessary to solve problems.
e.there is potential for conflicts of interest among businesses.
d
40. Which of the following is an accurate argument against social
responsibility for organizations?
a.Business is not a partner in our society, unlike the government and the
general population.
b.Corporations are citizens in our society.
c.Profit generation, for the owners, is the purpose of business in U.S. society.
d.Business does not create problems and should therefore not try to solve
them.
e.Business lacks the resources needed to solve social programs.
c
41. _____ is the extent to which the organization conforms to local, state,
federal, and international laws.

a.Technological compliance
b.Philanthropic giving
c.Ethical compliance
d.Legal compliance
e.Risk management
d
42. Which of the following actions represents an attempt to manage social
responsibility through ethical compliance?

a.Requiring top financial managers to ensure compliance with securities and

banking regulations
b.Donating money to fund the performing arts
c.Creating a committee to review policies concerning selection of new hires
and promotion of employees
d.Consulting the legal department regarding the requirements of a particular
law
e.Making human resource managers responsible for complying with the Equal
Employment Opportunity Commission (EEOC) standards
c
43. Which of the following about the ethical compliance of an organization is
true?
a.It is a formal dimension of managing social responsibility.
b.It cannot be enhanced by providing training.
c.It includes awarding of funds or gifts to charities or other worthy causes.
d.It is used to circumvent their legal obligations.
e.It cannot be imposed by developing guidelines and codes of conduct.
a
44. Development of guidelines and codes of conduct is one of the most
common ways through which an organization ensures
a.risk management.
b.technological specification.
c.philanthropic giving.
d.ethical compliance.
e.export restraint agreements.
d

45. Which of the following is an informal organizational dimension of

managing social responsibility?
a.Licensing
b.Philanthropic giving
c.Legal compliance
d.Ethical compliance
e.Organizational culture
e
46. Soft Bites, a factory that makes breads, has asked all its retailers to return
the loaves that have not been sold till the last date of expiry. It then donates all
these loaves to shelters for the poor and the homeless. This act of Soft Bites
can be termed as
a.corporate gifting.
b.legal compliance.
c.ethical compliance.
d.philanthropic giving.
e.apprentice sponsoring.
d
47. _____ is an employee's disclosure of illegal or unethical conduct by others
within the organization.
a.Lobbying
b.Influence peddling
c.Whistleblowing
d.Source criticizing
e.Reconnaissance
c
48. Which of the following is an advantage of licensing as an approach to
internationalization?
a.Lack of competition
b.Extended profitability
c.Lesser uncertainty
d.Flexibility
e.Shared ownership
b
49. A(n) _____ strategy requires small cash outlay, is heavily regulated by
government, and does not require modification to products for local conditions.
a.importing
b.licensing
c.joint venture
d.direct investment

e.offshoring
a
50. Atlantia is a German company that manufactures dishwashers in
Germany. Its products are sold in the United States. Which of the following
statements is most accurate?
a.Atlantia is exporting its products to the United States.
b.Atlantia has a license agreement with the United States.
c.Atlantia is importing its products from the United States.
d.Atlantia wholly owns subsidiaries of the firm in the United States.
e.Atlantia is outsourcing to the United States.
a
51. A potential disadvantage of licensing agreements is
a.decreased profits.
b.limited profitability.
c.inflexibility.
d.home production costs.
e.excessive transportation costs.
c
52. Which of the following is true of a quota in trade?
a.It is used most commonly to restrict trade.
b.It is used to encourage strategic alliance.
c.It is used to increase domestic competition.
d.It is the tax breaks given by the host government.
e.It is a form of tax collected on imported goods.
a
53. An advantage of importing and exporting is
a.shared ownership.
b.the lack of government restrictions.
c.low transportation costs.
d.the lack of tariffs and taxes.
e.small cash outlay.

54. Making a product in the firm's domestic marketplace and selling it in

another country is known as
a.direct investment.
b.exporting.
c.joint venture.
d.competing.
e.franchising.
b
55. Once a licensing agreement is agreed to, the licensee pays a(n) _____ in
return.
a.interest
b.royalty
c.remuneration
d.tariff
e.reward
b
56. Which of the following is an advantage of direct investment?
a.New infrastructure
b.Simplicity
c.Enhanced control
d.Greater political support
e.Greater certainty
c
57. Which of the following approaches to internationalization of business has
the disadvantage of shared ownership?
a.Importing
b.Licensing
c.Exporting
d.Joint ventures
e.Direct investment
d
58. What are maquiladoras?
a.Strategic alliances between U.S. and Mexican companies
b.Licensing agreements made between U.S. and Mexican companies
c.Light assembly plants built in northern Mexico close to the U.S. border
d.Convenience stores in northern Mexico to serve the workers in the area
e.Light assembly plants in the U.S. near the Mexican border where day
workers come for daily work
c
59. Basco Electric Inc., is an American company. It built two factories in
Mexico, which are wholly owned subsidies of Basco. Basco chose to build in
Mexico to get special concessions from the Mexican government for providing
employment to the local population. The factories are an example of
a.licensing agreements.
b.franchises.
c.leases.
d.mergers.
e.direct investments.
60. Sam's Big Bites, an American chain of burger stands, operates on all
military bases in the United States. The agreement between Sam's Big Bites
and the Department of Defense is a(n)
a.maquiladora.
b.licensing agreement.
c.exporting agreement.
d.importing agreement.
e.strategic alliance.
e
61. In a(n) _____, two or more firms jointly cooperate for mutual gain.
a.direct investment
b.technology transfer
c.strategic alliance
d.interest group
e.economic community
c
62. Greater economic and political risks are among the disadvantages
associated with
a.importing.
b.exporting.
c.licensing
d.direct investment.
e.joint ventures.
d
63. The _____ environment of an organization includes all the values,
symbols, beliefs, and language that guide behavior.
a.task
b.general
c.physical work
d.regulatory
e.cultural
e
64. Which of the following statements about cultural environment is true?
a.An employee's cultural environment is personal, therefore, does not affect
his profession.
b.In international business, cultural factors always cause problems for
managers.
c.Cultural differences between countries can have a direct impact on business
practice.
d.Difficulties can arise when there is complete overlap between a manager's
home culture and the culture of the country in which business is to be
conducted.
e.Subtle cultural differences between countries do not have a major impact on
business activities.
c
65. The French government charges a 25 percent tax on all American fruits
and vegetables that are sold in France. This tax collected by French
authorities is a(n)
a.direct investment.
b.license.
c.export tariff.
d.import tariff.
e.strategic alliance.
d
66. Accords reached by governments in which countries voluntarily limit the
volume or value of goods they export to or import from one another are known
as _____ agreements.
a.service-level
b.licensing
c.export restraint
d.strategic alliance
e.operational-level
c
67. Almonds United Inc., a company that produces almonds, is based in
California, United States. Almonds United ensures that most of its produce is
sold in the local market and not more than 20 percent is sold in the Indian
markets each year. This is in accordance with the U.S. government's voluntary
limit on trade with India. Almonds United is following the _____ exercised by
the U.S. government.
a.franchising agreement
b.direct investment
c.strategic alliance
d.licensing agreement
e.export restraint agreement
e

68. The government of Westeria has made it mandatory that all local
publishers must use paper made in Westeria itself. This restriction imposed by
Westeria on its publishers is a form of
a."ban maquiladoras" policy.
b.import tariff.
c.export restraint agreement.
d."go global" strategy.
e."buy national" legislation.
e
69. Which of the following statements about organizational culture is true?
a.Organizational culture shapes the behavior of employees, and thus
impacts organizational effectiveness.
b.Organizational culture of an overseas franchisee is always the same as the
culture of the nation in which the organization's headquarters are located.
c.Organizational culture will necessarily be the same throughout an
organization's subunits.
d.Organizational culture refers to the cultural and artistic charities that an
organization supports.
e.Organizational culture is frequently and easily changed by most
organizations.
a
70. An American company is in a joint venture with an overseas Middle East
company. The U.S. managers are particular about time management and
appointments for conference calls and meetings. However, their overseas
Middle Eastern counterparts are not conditioned the same way and don't
necessarily adhere to schedules. This variation in time management is an
aspect of their _____ environment.
a.legal
b.cultural
c.technological
d.political
e.economic
71. A(n) _____ is a limit on the number or value of goods that can be traded.
a.royalty
b.tariff
c.quote
d.threshold
e.allowance
c

72. A(n) _____ is a tax collected on goods shipped across national

boundaries.
a.quota
b.tariff
c.allowance
d.remuneration
e.commission
b
73. In international trade, the _____ amount is typically designed to ensure
that domestic competitors will be able to maintain a certain market share.
a.benefaction
b.royalty
c.tariff
d.quota
e.minimum hourly wage
d
74. _____ are, in effect, export quotas.
a.Export restraint agreements
b.Export licensing agreements
c.Service-level agreements
d.Export tariffs
e.Strategic alliance agreements
a
75. _____ gives preference to domestic producers through content or price
restrictions.
a."Buy national" legislation
b."Go local" strategy
c.Federal acquisition regulation
d.Trade agreements legislation
e"Ban maquiladoras" policy
a
76. Which of the following statements about the European Union is true?
a.It dictates the internal organizational culture.
b.It is a union of observer countries that monitor the open markets to ensure
that WTO rules are followed.
c.It is the strategic alliance between a European company and an American
company.
d.It a form of labor union across Europe.
e.It is an economic community.
e
77. Which of the following is an agreement among the United States, Canada,
and Mexico to promote trade with one another?
a.North American Free Trade Agreement
b.North Atlantic Treaty Organization
c.General Agreement on Tariffs and Trade
d.Transatlantic Free Trade Agreement
e.World Trade Organization
a78. An international _____ is a set of countries that agree to markedly reduce
or eliminate trade barriers among member nations.
a.commonwealth
b.trade bloc
c.economic community
d.customs union
e.free trade area
c
79. Which of the following is a determinate of an organization's culture?
a.The extended benefits provided by an organization
b.Corporate success and shared experiences
c.The regulations for work performance set by an organization
d.The strategic partners of an organization
e.The products and services available for the functioning of an organization
b
80. Unicorn designs Inc., a software company, requires its employees to wear
a specific color every day of the week. The colors for the weekdays are
presently orange, red, green, yellow, and blue, respectively. The colors are
changed from time to time and the employees are informed about it. The
colors should be visible and could be on anything, like scarves, bags, ties, or
socks. According to the management, the color coding system makes the
company a vibrant and fun place to work. This decision of the management
affects the
a.company's economic dimension.
b.task environment.
c.technological dimension.
d.organizational culture.
e.political-legal atmosphere.
d

81. The _____ is a trade agreement intended to promote international trade by

reducing trade barriers and making it easier for all nations to compete in
international markets.
a.Agreement on the Application of Sanitary and Phytosanitary Measures
(SPS)
b.Agreement on Trade Related Aspects of Intellectual Property Rights
(TRIPS)
c.North American Free Trade Agreement (NAFTA)
d.General Agreement on Tariffs and Trade (GATT)
e.Agreement on Technical Barriers to Trade (TBT)
d
82. The _____ replaced the General Agreement on Tariffs and Trade (GATT)
and absorbed its mission in 1995.
a.European Union (EU)
b.International Trade Centre (ITC)
c.World Trade Organization (WTO)
d.United Nations Conference on Trade and Development (UNCTAD)
e.Global System of Trade Preferences among Developing Countries (GSTP)
c
83. Where does an organization's culture originate?
a.Societal norms and expectations
b.Pressure applied through mergers
c.With the organization's founder
d.Resolution of disputes between rival factions
e.Government regulation of the specific industry
84. Which of the following is true of the World Trade Organization (WTO)?
a.The WTO establishes impartial procedures for resolving trade disputes
among its members.
b.The WTO requires members to limit their markets in international trade.
c.The WTO replaced the GATT and dismissed its mission.
d.The WTO focuses too narrowly on human rights and the environment.
e.The WTO promotes trade flows by encouraging nations to adopt preferential
and flexible trade policies.
a

85. Which of the following is true of organizational culture?

a.Managers are advised to maintain an organization's culture even if it has
become dysfunctional.
b.Corporate success and shared experiences have limited effect on
organizational culture.
c.Organizational culture is always consistent throughout each of the divisions
of an organization.
d.An organization's culture is not necessarily affected by the growth of rival
factions within the organization.
e.Organizational culture can be maintained by rewarding people whose
behaviors are consistent with the existing culture.
e
1) An organization's _____ is a statement of its fundamental, unique purpose
that sets a business apart from other firms of its type and identifies the scope
of the business's operations in product and market terms.
A) mission
B) statement of qualification
C) article of incorporation
D) operational goal
E) tactical plan
a
2) Nutrimax Inc. identifies its purpose as "to produce the finest cookies in the
world while upholding our principles of promoting good health and maintaining
environmental sustainability." This purpose is most likely to be the _____ of
Nutrimax.
A) strategic goal
B) distinctive competence
C) mission statement
D) operational goal
E) tactical goal
c
1) Which of the following statements is true about strategic goals?
A) They are set by an organization's middle managers.
B) They are set by first-line managers.
C) They provide plans for the day-to-day operations of an organization.
D) They focus on broad and general issues.
E) Their focus is on short-term issues
d
1) Strategic goals are set by:
A) first-line managers.
B) middle managers.
C) top managers.
D) stockholders.
E) consumers.
c
1) Goals set for and by line-managers are called _____ goals.
A) strategic
B) tactical
C) developmental
D) organizational
E) operational
e
1) Samantha is responsible for building the day-to-day work schedules for her
subordinates. She assigns specific tasks to her subordinates and designs
activities according to the objectives that she receives from her seniors.
Samantha works on _____ plans.
A) Operational
B) organizational
C) strategic
D) divestiture
E) tactical
a
1) Which of the following statements is true about tactical goals?
A) Their focus is on how to operationalize actions necessary to achieve
strategic goals.
B) Their focus is on broad and long-term issues such as increasing the
profitability of the organization over a period of time.
C) They are set for and by top managers.
D) They are set for and by the board of directors.
E) They are broad and nonspecific.
a
1) The top managers at Redd Inc. are developing a plan to reduce the
production costs of the company. By reducing costs, Redd wants to gain a
competitive advantage of cost leadership. The plan being developed in this
scenario is a(n) _____ plan.
A) strategic
B) tactical
C) operational
D) contingency
E) recovery
a
1) A(n) ____ goal for a waste management plant could be "to develop a
recycling campaign for rural communities of less than 1000 customers." It
would develop naturally out of a strategic goal "to increase recycling by 10%
everywhere."
A) strategic B) departmental
C) functional
D) divestiture
E) tactical
e
1) The top managers of Dietizza, a large low-fat pizza chain, plan to increase
the profitability of all its outlets by 15 percent in a period of two years. This is
a(n) _____ goal.
A) tactical
B) operational
C) nonspecific
D) divestiture
E) strategic
e
1) A(n) _____ plan is a general plan outlining decisions about resource
allocation, priorities, and action steps necessary to reach the goals set by the
top managers.
A) recovery
B) contingency
C) operational
D) tactical
E) strategic
e
1) _____ plans generally have an extended time horizon, and address
questions of scope, resource deployment, competitive advantage, and
synergy.
A) Operational
B) Contingency
C) Recovery
D) Tactical
E) Strategic
e
1) Venus Corp. is a large corporation with many strategic business units. The
top managers and board of directors are reviewing the performance of the
business units to estimate the amount of resources that each unit will require
in the next few years. The plan created for allocation of resources among the
business units of Venus would be a(n) _____ plan.
A) strategic
B) tactical
C) operational
D) contingency
E) recovery
c
1) A difference between tactical and strategic plans is that:
A) tactical plans have a more concrete focus.
B) tactical plans are set for and by the board of directors.
C) tactical plans have broader time horizons.
D) strategic plans are developed by first-line managers.
E) strategic plans deal with the day-to-day operations of an organization.
a
1) _____ plans have a short-term focus and are relatively narrow in scope.
A) Corporate
B) Tactical
C) Operational
D) Contingency
E) Strategic
c
1) Tactical goals are set by:
A) first-line managers.
B) middle managers.
C) assembly-line managers.
D) stockholders.
E) investors.
b
1) Operational goals are set by:
A) first-line managers.
B) top-level managers.
C) the board of directors.
D) shareholders.
E) investors.
a
1) The _____ is the component of a strategy that specifies the range of
markets in which an organization will compete.
A) divestiture
B) competency
C) scope
D) resource deployment
E) deskilling
c
1) Gadgetbug Inc. is known for its extremely efficient after-purchase service.
None of Gadgetbug's competitors provide the same kind of customer service.
Gadgetbug's _____ is described in the scenario.
A) scope
B) divestiture strategy
C) strategic limitation
D) process loss
E) distinctive competence
e
1) _____ is a way of approaching business opportunities and challenges.
A) Supply-chain management
B) Value migration
C) Self-dealing
D) Strategic management
E) Greenwashing
d
1) Zing Inc. is a large fashion brand that manufactures clothing and shoes.
The top managers of Zing have decided to use the profits from its clothing
outlets to invest in the shoes business. This scenario illustrates the _____
component of a strategy.
A) resource deployment
B) scope
C) distinctive competence
D) process loss
E) divestiture
a
1) A(n) _____ is a comprehensiv85. Which of the following is true of
organizational culture?
a.Managers are advised to maintain an organization's culture even if it has
become dysfunctional.
b.Corporate success and shared experiences have limited effect on
organizational culture.
c.Organizational culture is always consistent throughout each of the divisions
of an organization.
d.An organization's culture is not necessarily affected by the growth of rival
factions within the organization.
e.Organizational culture can be maintained by rewarding people whose
behaviors are consistent with the existing culture.

e
1) An organization's _____ is a statement of its fundamental, unique purpose
that sets a business apart from other firms of its type and identifies the scope
of the business's operations in product and market terms.
A) mission
B) statement of qualification
C) article of incorporation
D) operational goal
E) tactical plan
a
2) Nutrimax Inc. identifies its purpose as "to produce the finest cookies in the
world while upholding our principles of promoting good health and maintaining
environmental sustainability." This purpose is most likely to be the _____ of
Nutrimax.
A) strategic goal
B) distinctive competence
C) mission statement
D) operational goal
E) tactical goal
c
1) Which of the following statements is true about strategic goals?
A) They are set by an organization's middle managers.
B) They are set by first-line managers.
C) They provide plans for the day-to-day operations of an organization.
D) They focus on broad and general issues.
E) Their focus is on short-term issues
d
1) Strategic goals are set by:
A) first-line managers.
B) middle managers.
C) top managers.
D) stockholders.
E) consumers.
c
1) Goals set for and by line-managers are called _____ goals.
A) strategic
B) tactical
C) developmental
D) organizational
E) operational
e
1) Samantha is responsible for building the day-to-day work schedules for her
subordinates. She assigns specific tasks to her subordinates and designs
activities according to the objectives that she receives from her seniors.
Samantha works on _____ plans.
A) Operational
B) organizational
C) strategic
D) divestiture
E) tactical
a
1) Which of the following statements is true about tactical goals?
A) Their focus is on how to operationalize actions necessary to achieve
strategic goals.
B) Their focus is on broad and long-term issues such as increasing the
profitability of the organization over a period of time.
C) They are set for and by top managers.
D) They are set for and by the board of directors.
E) They are broad and nonspecific.
a
1) The top managers at Redd Inc. are developing a plan to reduce the
production costs of the company. By reducing costs, Redd wants to gain a
competitive advantage of cost leadership. The plan being developed in this
scenario is a(n) _____ plan.
A) strategic
B) tactical
C) operational
D) contingency
E) recovery
a
1) A(n) ____ goal for a waste management plant could be "to develop a
recycling campaign for rural communities of less than 1000 customers." It
would develop naturally out of a strategic goal "to increase recycling by 10%
everywhere."
A) strategic B) departmental
C) functional
D) divestiture
E) tactical
e

1) The top managers of Dietizza, a large low-fat pizza chain, plan to increase
the profitability of all its outlets by 15 percent in a period of two years. This is
a(n) _____ goal.
A) tactical
B) operational
C) nonspecific
D) divestiture
E) strategic
e
1) A(n) _____ plan is a general plan outlining decisions about resource
allocation, priorities, and action steps necessary to reach the goals set by the
top managers.
A) recovery
B) contingency
C) operational
D) tactical
E) strategic
e
1) _____ plans generally have an extended time horizon, and address
questions of scope, resource deployment, competitive advantage, and
synergy.
A) Operational
B) Contingency
C) Recovery
D) Tactical
E) Strategic
e
1) Venus Corp. is a large corporation with many strategic business units. The
top managers and board of directors are reviewing the performance of the
business units to estimate the amount of resources that each unit will require
in the next few years. The plan created for allocation of resources among the
business units of Venus would be a(n) _____ plan.
A) strategic
B) tactical
C) operational
D) contingency
E) recovery
c

1) A difference between tactical and strategic plans is that:

A) tactical plans have a more concrete focus.
B) tactical plans are set for and by the board of directors.
C) tactical plans have broader time horizons.
D) strategic plans are developed by first-line managers.
E) strategic plans deal with the day-to-day operations of an organization.
a
1) _____ plans have a short-term focus and are relatively narrow in scope.
A) Corporate
B) Tactical
C) Operational
D) Contingency
E) Strategic
c
1) Tactical goals are set by:
A) first-line managers.
B) middle managers.
C) assembly-line managers.
D) stockholders.
E) investors.
b
1) Operational goals are set by:
A) first-line managers.
B) top-level managers.
C) the board of directors.
D) shareholders.
E) investors.
a
1) The _____ is the component of a strategy that specifies the range of
markets in which an organization will compete.
A) divestiture
B) competency
C) scope
D) resource deployment
E) deskilling
c

1) Gadgetbug Inc. is known for its extremely efficient after-purchase service.

None of Gadgetbug's competitors provide the same kind of customer service.
Gadgetbug's _____ is described in the scenario.
A) scope
B) divestiture strategy
C) strategic limitation
D) process loss
E) distinctive competence
e
1) _____ is a way of approaching business opportunities and challenges.
A) Supply-chain management
B) Value migration
C) Self-dealing
D) Strategic management
E) Greenwashing
d
1) Zing Inc. is a large fashion brand that manufactures clothing and shoes.
The top managers of Zing have decided to use the profits from its clothing
outlets to invest in the shoes business. This scenario illustrates the _____
component of a strategy.
A) resource deployment
B) scope
C) distinctive competence
D) process loss
E) divestiture
a
1) A(n) _____ is a comprehensive plan for accomplishing an organization's
goals.
A) scope
B) competence
C) strategy
D) article of incorporation
E) statement of qualification
c
1) _____ is the set of strategic alternatives that helps an organization focus its
competitive efforts for each industry or market in a targeted and focused
manner.
A) Anti-competitive strategy
B) Divestiture strategy
C) Corporate-level strategy
D) Business-level strategy
E) Operational-level strategy
d
1) Alba Motorbikes is known for its heavyweight motorcycles. The company
places emphasis on the quality of the bikes and after-sale service. The brand
also enjoys customer loyalty. This scenario described Alba Motorbikes':
A) distinctive competence.
B) scope.
C) process gain.
D) competitive disadvantage.
E) related diversification.
a
1) The choices a firm makes as to where and how much to invest reflect
issues of _____.
A) value migration
B) distinctive competencies
C) resource deployment
D) deskilling
E) industrial symbiosis
c
1) Which of the following questions that companies consider is most closely
related to the resource deployment component of a strategy?
A) How much money should we invest in our business units overseas?
B) What are the markets in which we can compete?
C) What are the preferences of our customers?
D) Who are our competitors?
E) How can we make our products more unique in a way that they stand out?
a
1) _____ strategy is the set of strategic alternatives from which an
organization chooses as it manages its operations simultaneously across
several industries and several markets.
A) Corporate-level
B) Business-level
C) Operational-level
D) Divestiture
E) Anti-competitive
a

1) _____ strategy is the set of strategic alternatives from which an

organization chooses as it operates in a particular industry or market.
A) Business-level
B) Corporate-level
C) Operational-level
D) Divestiture
E) Anti-competitive
a
1) The set of processes for determining the strategies that will be used by an
organization is known as:
A) strategy implementation.
B) environmental scanning.
C) strategy formulation.
D) divesting.
E) deskilling.
c
1) _____ refers to the methods by which strategies are operationalized or
executed within the organization; it focuses on the processes through which
strategies are achieved.
A) Strategy implementation
B) Strategy mapping
C) Strategy formulation
D) Strategy visualization
E) Strategy conceptualization
a
1) The starting point in formulating strategies is usually:
A) SWOT analysis.
B) resource deployment.
C) divesting.
D) deskilling.
E) contingency analysis.
a
1) In the context of SWOT analysis, which of the following would be
considered as an organization's strength?
A) Exiting competitors
B) High overhead costs
C) Favorable government policies
D) Motivated employees
E) High employee turnover rate
c

e turnover rate
1) Which of the following will be considered as an organizational strength in
the context of SWOT analysis?
A) Organizational opportunities
B) New competitors
C) Surplus capital
D) High overhead costs
E) New government policies
c
1) _____ include things like a deep pool of managerial talent, surplus capital,
a unique reputation and/or brand name.
A) Market opportunities
B) Organizational opportunities
C) Market strengths
D) Environmental strengths
E) Organizational strengths
e
1) Which of the following is an organizational strength?
A) High employee turnover
B) High production costs
C) Well-established distribution channels
D) High purchasing power of customers
E) New competitors
c
1) A(n) _____ is an internal skill or capability that does not enable a company
to choose and implement strategies that support its mission.
A) organizational weakness
B) organizational threat
C) market threat
D) process gain
E) economic downswing
a
1) A(n) _____ is an area in an organization's environment that, if exploited,
may generate higher performance.
A) organizational opportunity
B) economic downswing
C) organizational strength
D) process gain
E) process loss
a
1) Hydraliscious is a juice brand that sells a wide range of fruit juices that only
uses organic ingredients, which is its uniqueness when compared with other
brands. Even though Hydraliscious juices are highly priced, a lot of customers
buy them because of the quality of the juices. Hydraliscious is most likely to be
using a(n)_____ strategy.
A) Differentiation
B) cost-leadership
C) divesting
D) bundle pricing
E) anti-competitive
a
1) An organization that pursues a(n) _____ strategy seeks to stand out among
competitors through the quality (broadly defined) of its products or services.
A) differentiation
B) divesting
C) anti-competitive
D) focus
E) cost-leadership
a
1) Which of the following statements is true about the differentiation strategy?

A) It enables a firm to sell products at lower prices and still make profits. B) It
enables a firm to charge more for its products.
C) It is aimed at reducing production costs by using inexpensive raw
materials.
D) It involves making simple, low-priced products for the mass market.
E) It cannot be used by companies that only offer services.
a
1) Which of the following is most closely associated with an overall cost
leadership strategy?
A) Manufacturing highly-customized products
B) Manufacturing products in bulk
C) Providing highly efficient customer service that is better than any other
competitor
D) Selling products at high prices
E) Using expensive raw materials
b

1) Alpha Inc. is a large shoe manufacturer that caters to a large customer

base. In addition to the high volume of shoes it manufactures, the company
sells simple-designed sneakers for low prices. Many customers buy Alpha
shoes because they are durable and inexpensive. Which of the following
strategies is illustrated in the scenario?
A) Overall cost leadership strategy
B) Market diversification strategy
C) Differentiation strategy
D) Divesting strategy
E) Market development strategy
a
1) Which of the following will help a company achieve an overall cost
leadership?
A) Manufacturing customized products in small quantities
B) Increasing after-purchase services
C) Using simple inexpensive product packaging
D) Selling products at very high prices
E) Increasing overhead costs
a
1) A firm pursuing a(n) _____ strategy concentrates on a specific regional
market, product line, or group of buyers.
A) overall cost leadership
B) divesting
C) restraint of trade
D) anti-competitive
E) focus
e
1) Supertech Inc. is a large firm that manufactures gadgets and mobile
phones. The company sells a line of inexpensive mobile phones exclusively
targeted at youth and teenagers in Selenasia. Which of the following
strategies is illustrated in the scenario?
A) Differentiation strategy
B) Focus strategy
C) Restraint of trade strategy
D) Anti-competitive strategy
E) Divesting strategy
b

1) During the introduction phase of the product life cycle _____.

A) companies must sacrifice product quality
B) most companies tend to downsize
C) demand may be very high
D) competition is at its peak
E) sales volume is the highest
c
1) During the growth stage of the product life cycle,:
A) most companies downsize.
B) the demand is the lowest.
C) competitors start exiting the industry.
D) more firms begin producing the product.
E) sales rapidly decline.
d
1) During the maturity stage of the product life cycle,:
A) most companies start hiring more employees.
B) managers need to focus their efforts on "getting product the out the door"
without sacrificing quality.
C) the sales volume is the highest.
D) more competitors enter the industry.
E) the overall demand growth for a product begins to slow down.
c
1) In the maturity stage of the product life cycle,:
A) the demand is extremely high.
B) product sales rapidly increase.
C) compeition is at its peak.
D) managers need to focus their efforts on "getting the product out the door"
without sacrificing quality.
E) the number of new firms producing the product begins to decline.
b
1) During the decline stage of the product life cycle:
A) demand peaks.
B) new competitors enter the industry.
C) sales drop.
D) managers need to focus their efforts on "getting the product out the door"
without sacrificing quality.
E) managers must increase production costs.
c

1) Which of the following strategies can help companies survive during the
decline stage of the product life cycle?
A) Increasing production costs
B) Manufacturing the products frequently and in smaller quantities
C) Avoiding differentiation strategies
D) Developing new products or services
E) Focusing on strategies to slow the entry of competitors
d
1) Which of the following strategies can help companies during the maturity
stage of a product life cycle?
A) Manufacturing products in small quantities intermittently than in bulk
B) Drastically increasing product prices
C) Focusing on keeping costs low
D) Sacrificing the quality of products
E) Focusing more on strategies to slow the entry of competitors
c
1) Strategies to slow the entry of competitors are important if an organization
is entering an industry during the _____ stage of the product life cycle.
A) growth
B) introduction
C) decline
D) maturity
E) recovery
d
1) Which of the following strategies will help companies succeed during the
growth stage of a product cycle?
A) Increasing overhead costs
B) Focusing on developing new products or services
C) Sacrificing product quality
D) Focusing on creating product differentiation
E) Increasing product prices significantly
d
1) During the growth stage of a product life cycle, companies should focus on:
A) creating product differentiation.
B) increasing overhead costs.
C) sacrificing product quality.
D) using anti-competitive strategies.
E) divesting.
a

1) During the maturity stage of a product life cycle:

A) demand is maximum.
B) companies must sacrifice product quality.
C) sales are the highest.
D) demand comes to a halt.
E) product differentiation concerns are still important.
e
1) _____ describes the number of different businesses that an organization is
engaged in and the extent to which these businesses are related to one
another.
A) Entropy
B) Diversification
C) Divestiture
D) Competency
E) Economy of scale
b
1) An organization that pursues a single-product strategy:
A) clusters relayed products in a single strategic business unit.
B) manufactures a range of products that are related to each other in some
way.
C) uses a single marketing strategy for all its products.
D) operates in a single geographic market.
E) creates a separate business unit for each product it sells.
d
1) Virtually all larger businesses in the United States use a(n) _____ strategy.
A) related-diversification
B) single-product
C) divestiture
D) unrelated diversification
E) single-service
a
1) Aries Inc. manufactures dairy products and detergents.This is an example
of _____ diversification.
A) horizontal
B) unrelated
C) single-product
D) concentric
E) related
b
1) ____ techniques are methods that diversified organizations use to
determine in which businesses to engage and how to manage these
businesses to maximize corporate performance.
A) Divestiture
B) Portfolio management
C) Process gain
D) Deskilling
E) Entropy
b
1) In a Boston Consulting Group (BCG) matrix, _____ are businesses that
have only a small share of a quickly growing market.
A) stars
B) question marks
C) entropies
D) dogs
E) cash cows
b
1) In a BCG matrix, _____ are businesses that have a very small share of a
market that is not expected to grow.
A) question marks
B) cows
C) stars
D) dogs
E) rate busters
d
1) In the context of the BCG matrix, _____ are businesses that have the
largest share of a rapidly growing market.
A) question marks
B) stars
C) cows
D) dogs
E) entropies
b
1) In a BCG matrix, _____ are businesses that have a large share of a market
that is not expected to grow substantially.
A) stars
B) cash cows
C) entropies
D) question marks
E) dogs
1) The _____ is a portfolio management technique that considers industry
attractiveness and competitive position rather than focusing solely on market
growth and market share.
A) Black-Litterman model
B) modern portfolio theory
C) growth-share matrix
D) BCG matrix
E) GE Business Screen
e
1) In the GE Business Screen portfolio management technique, businesses
that have good competitive position in an attractive industry are known as:
A) losers.
B) winners.
C) profit producers.
D) question marks.
E) cash cows.
b
1) In the GE Business Screen matrix, which of the following is a determinant
of industry attractiveness?
A) Market share
B) Market size
C) Product quality
D) Operating costs
E) Service network
c
1) In the GE Business Screen matrix, which of the following determines the
competitive position of the company?
A) Market size
B) Market growth
C) Price competitiveness
D) Capital requirements
E) Competitive intensity
a
1) In the context of the GE Business Screen, a determinant of an
organization's competitive position is:
A) capital requirements.
B) market growth.
C) government policies.
D) market size.
E) product quality.
1) Pursuing a strategy of _____ reduces an organization's dependence on any
one of its business activities and thus reduces economic risk.
A) single-product
B) single-service
C) divestiture
D) related diversification
E) trade restraint
d
1) Firms that implement a strategy of _____ operate multiple businesses that
are not logically associated with one another.
A) single-business unit
B) unrelated diversification
C) entropy
D) nondiversification
E) synergy
b
1) In the context of the GE Business Screen, a determinant of industry
attractiveness would be:
A) capital requirements.
B) product quality.
C) service network.
D) price competitiveness.
E) market share.
a
1) Which of the following is a determinant of an organization's competitive
position in the context of the GE Business Screen?
A) Government policies
B) Market size
C) Technological know-how
D) Capital requirements
E) Market growth
c
1) In the context of the GE Business Screen matrix, _____ is a determinant of
the competitive position of a company.
A) intensity of competition
B) government policies
C) market size
D) market growth
E) market share
a
1) In contrast to strategic plans, tactical plans must:
A) specify resources and time frames.
B) be developed independently of the internal business environment.
C) be developed independently of the external business environment.
D) be more general and broadly based.
E) focus on resources, environment, and mission.
a
1) Which of the following statements is true about a tactical plan?
A) It is an organized sequence of steps designed to execute strategic plans.
B) It is exclusively developed by the board of directors.
C) It is more broad and nonspecific when compared to a strategic plan.
D) It is developed independently of the external business environment.
E) It does not specify time frames and resources.
a
1) A(n) _____ is a single-use plan for a large set of activities. It might consist
of identifying procedures for introducing a new product line, opening a new
facility, or changing the organization's mission.
A) policy
B) entropy
C) regulation
D) project
E) program
e
1) _____ planning refers to the determination of alternative courses of action
to be taken if an intended plan is unexpectedly disrupted or rendered
inappropriate.
A) Divestiture
B) Deskilling
C) Synergy
D) Contingency
E) Entropy
d
1) A _____ is the most general form of standing plan that specifies the
organization's general response to a designated problem or situation.
A) project
B) standard operating procedure
C) policy
D) program
E) single-use plan
c
1) The narrowest of the standing plans, _____ describe exactly how specific
activities are to be carried out.
A) standard operating procedures
B) projects and programs
C) rules and regulations
D) contingency theories
E) crisis management procedures
c
1) Venus Corp. prohibits its employees from smoking in its premises. This isan
example of a(n):
A) standard operating procedure
B) rule
C) program
D) entropy
E) project
b
1) Relish has a chain of outlets that sells baked products. Relish requires all
its employees to complete a month's training before they could work in the
kitchen. This is an example of a:
A) standard operating procedure.
B) contingency plan.
C) regulation
D) policy.
E) standing plans.
c
1) Libra Travels LLC. has a few back-up buses at key locations where the
business operates. This is to be prepared in case any of its day-tour buses
break down. This is an example of a:
A) project.
B) program.
C) regulation.
D) single-use plan.
E) contingency plan.
e
1) The process of choosing one alternative from among a set of alternatives is
called _____.
A) rational ignorance
B) altruism
C) bounded rationality
D) decision making
E) groupthink
d
1) Which of the following statements is true about the decision-making
process?
A) It exclusively applies to problem situations.
B) It requires that the nature of a particular situation be defined.
C) It seldom applies to situations that are positive
. D) It typically involves only one individual and seldom applies to groups.
E) It results in the generation of only one alternative.
b
1) Ryan, the production manager at the Tan Shoes Company, chose the
cheapest leather-cutting machine from a set of five machines from different
manufacturers. Ryan was engaged in _____.
A) decision making
B) optimizing
C) rationalizing
D) brainstorming
E) social loafing
a
1) Which of the following statements is true about the process of decision
making?
A) It ends when the decision situation has been defined.
B) It includes putting the chosen alternative to practice.
C) The first step in the process is to identify alternatives to a problem.
D) The process is said to be complete when a set of alternatives to a problem
has been created.
E) In a business scenario, the decision-making process is always aimed at
finding a way to increase profits.
b
1) A(n) _____ decision is a decision that is relatively structured or recurs with
some frequency (or both).
A) custom-made
B) novel
C) unstructured
D) intuitive
E) programmed
e

1) Decisions regarding standard organizational transactions are most likely to

be _____ decisions.
A) unstructured
B) infrequent
C) programmed
D) intuitive
E) irrational
c
1) Nutrimax Inc. sponsors a football championship in Oriel in August every
year. The championship is organized by the Oriel Football Association (OFA)
to encourage new talent, and Nutrimax bears all the expenses incurred during
the championship. The Oriel regional manager of Nutrimax sends across a
check to the OFA in July of each year in order for them to prepare for the
championship. The regional manager's decision about when to send the
check to OFA is a(n) _____ decision.
A) programmed decision
B) unstructured decision
C) intuitive decision
D) contingency decision
E) satisficing decision
a
1) When the inventory manager of Cuisine Royale, a restaurant, decides to
order a batch of brown bread because the stock is almost empty, she's
making a(n) _____ decision.
A) programmed
B) unstructured
C) intuitive
D) irrational
E) strategic
e
1) A nonprogrammed decision:
A) is relatively more frequent that programmed decisions.
B) is highly structured.
C) requires more time and resources than programmed decisions.
D) is typically regarding daily organizational transactions.
E) typically applies to basic operating systems and procedures.
c

1) Decisions made by top managers involving strategy, such as signing

mergers or making acquisitions, are examples of _____ decisions.
A) frequent
B) nonprogrammed
C) structured
D) operational
E) programmed
b
1) Programmed decisions:
A) can only be made by the top management.
B) generally deal with long-term matters such as expanding business in
another country.
C) lack structure.
D) recur more frequently than nonprogrammed decisions.
E) are typically made by shareholders.
d
1) Venus Electronics Inc. decided to explore markets in different countries. It
has now set up a branch in Selenasia. This is an example of a(n) _____
decision.
A) structured
B) nonprogrammed
C) standard
D) programmed
E) operational
b
1) Which of the following illustrates a programmed decision?
A) A cafe owner buys a hundred cartons of coffee every month.
B) A fast food chain decides to enter into a new franchise agreement.
C) A content development company decides to sue a competitor for copyright
infringement.
D) A health drink manufacturing company decides to launch a new product in
the market.
E) An IT company decides to lay off a hundred employees.
a
1) Which of the following statements is true in the context of decision making
under a state of risk?
A) The decision maker clearly knows the alternatives.
B) The decision maker uses probability estimates to assess alternatives.
C) The decision maker is least likely to choose a bad alternative.
D) The decision maker has an accurate understanding of payoffs of all the
alternatives.
E) The decision maker seldom considers his or her past experience while
making the decision.
b
1) In decision making, a condition of _____ exists when a decision maker
knows what the alternatives are and what conditions are associated with each
alternative.
A) risk
B) uncertainty
C) certainty
D) imperfect information
E) ambivalence
c
1) When Irene wants to buy new laptops for her marketing executives and she
has to pick them up from a single brand that is preinstalled with the marketing
software that her company needs, she's making a decision under a condition
of _____.
A) imperfect information
B) ambiguity
C) risk
D) certainty
E) unclear alternatives
d
1) When decision making is under a condition of uncertainty:
A) the alternatives are not known.
B) no ambiguity is involved.
C) errors are least likely to occur.
D) the consequences of solutions are known.
E) the decision situation is simple.
a
1) Which of the following statements is true in the context of decision making
under a condition of uncertainty?
A) A decision maker greatly relies on intuition, judgment, and experience.
B) A decision maker clearly knows all the risks associated with alternatives to
a problem.
C) A decision maker puts in least effort and uses a pre-determined structure
for decision making.
D) A decision maker is able to estimate the payoffs and risks associated with
alternatives.
E) A decision maker identifies only two alternatives to the decision situation.
a
1) Professor Campbell needs to recommend a biology textbook for his senior
class. Only two well-known publishers, Educate and WordTree, publish
biology textbooks in the state, and both publishers are known for the clarity
and extensiveness of their content. When Campbell chooses a textbook from
one of the two publishers, he is making a decision in a state of _____.
A) certainty
B) irrationality
C) risk
D) imperfect information
E) ambiguity
a
1) Managers are most prone to error in a condition of _____.
A) certainty
B) uncertainty
C) risk
D) rationality
E) perfect information
b
1) The _____ decision model is a prescriptive approach that tells managers
how they should make decisions; it assumes that managers are logical and
rational and that their decisions will be in the organization's best interests.
A) behavioral
B) classical
C) administrative
D) bureaucratic
E) probabilistic
b
1) According to the classical decision model, managers:
A) evaluate all aspects of a decision situation logically and rationally.
B) are inefficient at eliminating uncertainty.
C) never have adequate information about decision situations.
D) never make errors even under uncertain conditions.
E) can never assess alternatives appropriately.
a
1) The first step in rational decision making is _____.
A) identifying alternatives
B) implementing an alternative
C) selecting the best alternative
D) recognizing and defining the decision situation
E) evaluating alternatives
d
1) Tina works at a coffee shop. One of the four coffee machines at the coffee
shop has not been functioning well; the same machine has broken down thrice
in two weeks. Now, Tina is looking at the machine and trying to decide if the
problem is a bad machine or if people are just using the machine wrong. Tina
is currently _____.
A) implementing an alternative
B) evaluating the results of a chosen alternative
C) consulting with other decision makers
D) recognizing and defining the decision situation
E) eliminating feasible alternatives
e
1) Libra Inc. chose to settle a lawsuit for $75 million. In the context of the
rational decision-making model, when executives of the company begin to
compare the cost of the settlement to those of other financial institutions, they
will be _____.
A) developing a set of rational alternatives
B) evaluating the possible alternatives
C) consulting with other decision makers
D) recognizing and defining the decision situation
E) following up and evaluating the results of a chosen alternative
e
1) After being laid off by their companies, many individuals recognized three
options they could choose from before they could secure new jobs: to spend
less, to use savings, or to use credit. In the context of the steps involved in the
rational decision-making model, they were _____.
A) monitoring implementation
B) selecting the best alternative
C) identifying alternatives
D) implementing alternatives
E) evaluating decision effectiveness
b
1) In general, while identifying alternatives, the more important the decision,
_____.
A) the more alternatives should be generated
B) the lesser the time needed to make the decision
C) the lesser the chances of managers making the right decision
D) the more the tendency of managers to ignore intuitions
E) the lesser the chances of managers using expert opinion to make the
decision
a
1) Christine, a teacher, notices that the performances of her students at class
tests have been declining. While attempting to find a solution to the problem,
she thinks of three choices: rewarding students who get good grades, holding
class tests more often, or punishing students when they perform poorly in the
tests. Which step of the rational decision-making process is Christine in?
A) Identifying alternatives
B) Implementing an alternative
C) Defining the decision situation
D) Selecting the best alternative
E) Evaluating the decision effectiveness
a
1) The rational decision-making process:
A) begins when a decision maker chooses the best solution.
B) involves the evaluation of different alternatives.
C) ends when alternatives have been identified.
D) does not include the implementation of an alternative.
E) ends when a decision situation has been defined.
c
1) Delta Corp. introduced a new set of policies, giving its employees more
flexibility in work timings. This decision was made in response to complaints
from employees about fatigue. Which step of the rational decision-making
process is illustrated in the scenario?
A) Defining the situation
B) Evaluating the possible alternatives
C) Selecting the alternative
D) Implementing an alternative
E) Evaluating decision effectiveness
d
1) When the prices of oil came down, the demand for sport utility vehicles
(SUVs) increased. Automakers chose to increase production of full-size SUVs
as the profit from large vehicles is greater than that from small vehicles. Which
step in the rational decision-making model is illustrated in the scenario?
A) Developing a set of rational alternatives
B) Evaluating the possible alternatives
C) Selecting the best alternative and implementing it
D) Recognizing and defining the decision situation
E) Evaluating decision effectiveness
c
1) In which step of the rational decision-making model does the decision
maker test the feasibility and satisfactoriness of alternatives before choosing
one?
A) Identifying alternatives
B) Implementing the chosen alternative
C) Defining the situation
D) Following up the implementation
E) Evaluating alternatives
e
1) Peter was looking for alternatives to double his plant's production capacity,
and he considered acquiring the production plant of a rival company. The
engineers in Peter's company advised him against it because acquiring the
new plant would only increase their company's production by 15 percent.
Therefore, Peter's idea failed the test for _____ in the context of the rational
decision-making process
. A) feasibility
B) satisfactoriness
C) bounded rationality
D) satisficing
E) escalation of commitment
b
1) In the rational decision-making model, once the alternatives have been
evaluated, the next step is to _____.
A) select the best alternative
B) implement the chosen alternative
C) evaluate the results of the chosen alternative
D) identify the available alternatives
E) define the decision situation
a
1) An alternative should be eliminated during evaluation if:
A) it is supported by the most number of individuals.
B) it involves minimal costs.
C) it is found to have passed the satisfactoriness test.
D) it has several unaffordable consequences.
E) it requires minimal resources.
d

1) Which of the following statements is true in the context of selecting the best
alternative?
A) The decision maker can only select one best alternative.
B) The decision maker can develop subjective estimates and weights for
choosing an alternative.
C) The decision maker must choose the alternative that involves the most
costs.
D) The decision maker must only stick to completely rational, mathematical
analysis while selecting an alternative.
E) The decision maker can choose an alternative that does not pass the
consequence, satisfactoriness, and feasibility test.
a
1) In the rational decision-making process, optimization means:
A) identifying obvious, standard alternatives.
B) choosing the alternative with the best overall expected outcomes.
C) gathering the most complete information before making the decision.
D) developing the maximum number of creative, innovative alternatives.
E) choosing an alternative that is feasible even if it is not satisfactory or has
undesirable consequences.
b
1) The final step in the decision-making process requires that managers
_____.
A) evaluate the results of the chosen alternative
B) select the best alternative
C) implement the chosen alternative
D) identify the available alternatives
E) define the decision situation
a
1) A plant manager had taken a few measures to try to reduce worker
turnover. For four months he monitored the implementation of the measures.
He now finds that the turnover rate is reduced by 10 percent. Which step of
the rational decision-making model is illustrated in the scenario?
A) Evaluating the results
B) Identifying alternatives
C) Recognizing the decision situation
D) Selecting the best alternative
E) Developing a set of alternatives
a

1) _____ is one of the factors that makes an alternative infeasible.

A) Decrease in expenditure
B) Increase in production capacity
C) Low costs
D) Increased satisfactoriness
E) Legal barriers
e
1) According to the evidence-based management approach, managers must
_____.
A) discourage employees from telling the unpleasant truth
B) be committed to fact-based decision making
C) avoid experimentation
D) completely rely on the recommendations made by others
E) base decisions on untested but strongly held beliefs
b
1) Which of the following statements is true about the administrative model of
decision making?
A) It suggests that most managers make decisions rationally and logically.
B) It suggests that decisions that are based on instincts are better than the
ones based on logic.
C) It suggests that managers tend to satisfice when making decisions.
D) It suggests that managers have the most accurate information about
decision situations.
E) It suggests that managers should not make decisions based on
mathematical analysis.
c
1) Political forces, intuition and escalation of commitment, risk propensity, and
ethics constitute the _____ aspects of decision making.
A) rational
B) administrative
C) classical
D) behavioral
E) sequential
d
1) _____ was one of the first experts to develop the administrative model of
decision making.
A) Elton Mayo
B) George Bennett
C) Martin Johnson
D) Jack Welch
E) Herbert Simon
ê
1) The administrative model of decision making argues that decision makers
_____ while making decisions.
A) use complete and perfect information
B) do not use intuition while making decisions
C) are constrained by bounded rationality
D) completely avoid escalation of commitment
E) use only instincts
c
1) According to the administrative model, decision makers:
A) use incomplete and imperfect information.
B) are never constrained by bounded rationality.
C) tend to avoid satisficing when making decisions.
D) are not limited by their values and unconscious reflexes while making
decisions.
E) always act in the best interests of their organizations.
a
1) ____ is a concept suggesting that decision makers are limited by their
values and unconscious reflexes, skills, and habits.
A) Satisficing
B) Escalation of commitment
C) Risk propensity
D) Groupthink
E) Bounded rationality
e
1) Bounded rationality is assumed in the _____ model of decision making.
A) administrative
B) rational
C) classical
D) groupthink
E) irrational
a
1) Which of the following statements is true about the administrative model of
decision making?
A) It suggests that political forces do not exist in business scenarios.
B) It suggests that managers may not always make decisions that best serve
the interests of their organizations.
C) It suggests that managers use a blend of subjective knowledge and
analysis to choose the best alternative.
D) It suggests that decisions should only be made individually and not in
groups.
E) It suggests that decisions made by groups are better than decisions made
by individuals.
b
1) For his work in developing the administrative model to describe how
managers make decisions in the real world, Herbert Simon won the Nobel
Prize in _____.
A) Medicine
B) Economics
C) Peace
D) Psychology
E) Management
b
1) _____ is the tendency to search for alternatives only until one is found that
meets some minimum standard of sufficiency.
A) Satisficing
B) Groupthink
C) Optimization
D) Bounded rationality
E) Escalation of commitment
a
1) Lucy needs to buy a new laptop for her business, and she buys a particular
brand even though it does not support the software that is required for her
business. She does this because all her family members have used
computers of the same brand all their lives. This is an example of how
decision makers are constrained by _____.
A) political forces
B) bounded rationality
C) Lucy's high risk propensity
D) logic
E) organizational strategies
b
1) Tim is the production manager at a steel factory. One of the steel
processing machines in the factory has broken down and has to be replaced.
Tim decides to buy a new machine from a company that he has read reviews
of in industry magazines, even though there are other companies offering a
discount on machines with better functionality. This is an example of how
managers are constrained by _____.
A) bounded rationality
B) escalation of commitment
C) risk propensity
D) groupthink
E) political forces
a
1) Mike is in a hurry to appoint a personal assistant to help him with
scheduling his meetings with clients. He posts an advertisement on a job
website, and picks the first person who sends in her resume for the job. He
only checks for the candidate's qualification and does not consider her work
experience. This is an example of _____.
A) rational decision making
B) classical decision making
C) satisficing
D) evidence-based management
E) optimizing
c
1) Keisha is the vice president of accounting, and she has to decide which
computer software to purchase for her department. She has looked at all of
the possible alternatives and is leaning toward the system with which she is
most familiar. This is an example of _____.
A) optimizing
B) bounded rationality
C) satisficing
D) synergy
E) escalation of commitment
b
1) _____ is one major element of organizational politics that is especially
relevant to decision making.
A) Coalitions
B) Intuition
C) Escalation of commitment
D) Satisficing
E) Risk propensity
a
E) Risk propensity
1) Chelsea has been contemplating buying a red car. When she visits the
used cars dealership, she looks at a red Ford Hatchback and buys it even
before checking for its technical specifications. Chelsea's decision is an
example of _____.
A) optimization
B) escalation of commitment
C) an evidence-based decision
D) satisficing
E) a decision under uncertainty
c
1) _____ is an innate belief about something without conscious consideration.
A) Optimization
B) Intuition
C) Logic
D) Ethics
E) Risk propensity
b
1) A marketing manager decides to launch a new product because it is the
first product that came to his mind, even if there are several better products to
be explored. Which of the following is illustrated in the scenario?
A) Escalation of commitment
B) Rational decision making
C) Bounded rationality
D) Satisficing
E) Optimization
d
1) Eric is a manager who recently introduced a new process for screening
potential employees. Eric has noticed that the new screening process is not
very efficient and is not helping recruiters find the best candidates. However,
Eric continues to use the same process because it was so expensive to set up
the initial system. Which of the following concepts is illustrated in the
scenario?
A) Evidence-based decision making
B) Escalation of commitment
C) Rational decision making
D) Optimization
E) Satisficing
b
1) Ryan Tools Company just acquired Coney Tools. The purchase came
about because the employees in both the research and development and the
production departments at Ryan Tools joined forces to lobby for the purchase
of Coney Tools as opposed to other companies. Both departments wanted
Coney Tools because of its state-of-the-art research and production facilities.
This is an example of _____.
A) satisficing
B) intuitive decision making
C) a dissection
D) escalation of commitment
E) a coalition
e
1) William had invested in an initial public offering. He kept incurring losses
due to unfavorable market conditions. However, he decided to keep the
investment because he had spent so much money on it. This scenario best
exemplifies _____.
A) evidence-based management
B) rational decision making
C) escalation of commitment
D) rationality
E) satisficing
c
1) _____ is a behavioral process in which a decision maker stays with a
decision even when it appears to be wrong.
A) Bounded optimization
B) Escalation of commitment
C) Risk propensity
D) Strategic maximization
E) Intuitive rationality
b
1) Managers sometimes decide to do something because it feels right or they
have a hunch. This is an example of using _____ in decision making.
A) satisficing
B) rationality
C) intuition
D) optimization
E) logic
c
1) _____ is the extent to which a decision maker is willing to gamble when
making a decision.
A) Risk propensity
B) Intuition
C) Optimization
D) Satisficing
E) Bounded rationality
a

1) Managers with higher levels of risk propensity are more likely than their
conservative counterparts to:
A) adhere to the rational model and be extremely cautious about their
decisions.
B) avoid mistakes and infrequently make decisions that lead to big losses.
C) rely heavily on intuition and gamble big investments on their decisions.
D) reach decisions slowly after a great amount of analysis.
E) display no aggression in decision making.
c
1) A manager who has a high level of risk propensity is likely to:
A) make decisions quickly.
B) avoid risks.
C) spend a lot of time evaluating alternatives.
D) be wary of making a wrong choice.
E) rely heavily on mathematical analysis.
a
1) The nominal group decision-making technique:
A) involves maximum interaction among group members.
B) is used to generate creative and innovative ideas.
C) is a technique in which members are not brought together in a face-to-face
setting.
D) always results in groupthink.
E) is a technique in which the manager lacks the authority to reject an
alternative.
b
1) The Delphi group technique is a group decision-making technique in which:
A) the members are involved in extensive discussions with each other.
B) the opinions of group member are combined and averaged.
C) the daily operational problems of an organization are addressed.
D) the members are most likely to indulge in groupthink.
E) the members are most likely to be first-line employees belonging to the
same department.
a
1) One advantage of group decision making is:
A) groupthink.
B) saved time.
C) more acceptance of the final decision.
D) lowered cost of decision making.
E) elimination of political forces.
c
1) A disadvantage of using interacting groups to make decisions is that:
A) it fosters political forces.
B) it discourages creativity.
C) it generates very few alternatives.
D) it involves more costs than all other group decision techniques.
E) it does not foster understanding between members.
a
1) Which of the following is true of interacting groups?
A) They are the least common decision-making groups.
B) They effectively eliminate the possibility of groupthink.
C) They can be regular work teams.
D) They provide little scope for new ideas.
E) They do not involve political forces.
c
1) A(n) _____ is a form of group decision making in which a group arrives at a
consensus of expert opinion.
A) interacting group
B) Delphi group
C) inactive group
D) unconventional group
E) unstructured group
b
1) Macy Computers Inc. faced a major software error that brought all work in
the company to a standstill. Roger, the CEO, arranged for a panel of well-
known engineers in the state to estimate the time that it would take for the
error to be set right. Each engineer made an estimate and sent it to the
group's leader, Dr. Rajesh. Dr. Rajesh averaged the estimates and sent the
average back out to the group. People who had submitted unusual estimates
were asked to say why those estimates were chosen. Roger used a(n)
_____to help his company get rid of the software crisis.
A) interacting group
B) Delphi group
C) standing committee
D) work group
E) unstructured group
b

1) When managers want to be sure to get innovative and creative ideas, they
will often create a(n) ____ group..
A) judge-advisor system
B) coalition
C) advocacy group
D) nominal group
E) political group
d
1) A disadvantage of group decision making is that:
A) groupthink may occur.
B) generation of different opinions does not occur.
C) communication may be curbed.
D) knowledge available is always limited.
E) only a few alternatives are likely to be generated.
a
1) _____ is a situation that occurs when a group or team's desire for
consensus and cohesiveness overwhelms its desire to reach the best possible
decision.
A) Groupthink
B) Groupshift
C) Brainstorming
D) Condorcet's paradox
E) Group polarization
a
1) Which of the following is true of nominal groups?
A) Innovative ideas are not generated in nominal groups.
B) Members of nominal groups are brought together in a face-to-face setting.
C) Members of nominal groups talk freely among themselves, argue, agree,
form internal coalitions, and so forth.
D) Only one individual dominates a nominal group.
E) Nominal groups are most often used for forecasting technological
breakthroughs.
d
1) Which of the following disadvantages of group decisions typically results
from the group being very cohesive?
A) Disagreement
B) Groupthink
C) Lower acceptance of the final decision
D) Minimal participation of members
E) Conflicts
b
1) Omega Inc., a large appliances company, went bankrupt because of a
series of poor managerial decisions and a downturn in the economy. In
retrospect, it would seem that there was too much emphasis on the group
reaching a consensus decision whenever the managers were involved in
decision making. As a result, many decisions by the managers at Omega
were made to avoid conflict. What disadvantage of group decision making
does this scenario represent?
A) Domination
B) Groupthink
C) Irrationality
D) Satisficing
E) Coalitions
b
1) Which of the following is an advantage of group decision making when
compared to individual decision making?
A) The group process is less expensive.
B) Groupthink is avoided.
C) Less time is consumed.
D) More alternatives are likely to be generated.
E) Political forces are completely eliminated.
d
1) Groupthink:
A) results in more conflicts.
B) is most likely to occur in non-cohesive groups.
C) often leads to choosing a wrong alternative
. D) results in extensive brainstorming.
E) results in polarization.
d
1) One disadvantage of group decision making is that:
A) very little information and knowledge are available.
B) one person may dominate the group.
C) fewer alternatives are generated.
D) it reduces the chances of acceptance of the final decision.
E) it prevents groupthink from developing.
c

1) Which of the following helps a manager avoid groupthink during group

decision making?
A) Assigning one person to act as devil's advocate
B) Making his or her preferences known to the group as early as possible
C) Instructing members to avoid expressing divergent viewpoints
D) Giving the group as much time as they need to make a decision, without
enforcing a deadline
E) Encouraging group cohesiveness
a
1) _____ is the degree to which the overall task of the organization is broken
down and divided into smaller component parts.
A) Job specialization
B) Job enrichment
C) Job rotation
D) Job enlargement
E) Task identity
a
1) One of the benefits of job specialization is that:
A) it makes employees proficient at a task.
B) it significantly increases employee satisfaction.
C) it offers new challenges and stimulation to the workers.
D) it decreases boredom and absenteeism among workers.
E) it eliminates job monotony and fatigue.
a
1) One of the disadvantages of job specialization is that:
A) it increases the transfer time between tasks.
B) it makes it difficult to develop specialized equipment to assist with a job.
C) it does not help a worker become proficient at a task.
D) it does not offer challenges or stimulation to workers.
E) it requires workers to handle different tasks at a time.
d
1) Which of the following is an advantage of job specialization?
A) It decreases transfer time between tasks.
B) It increases the level of employee satisfaction.
C) It eliminates monotony and boredom.
D) It provides stimulation and challenges to employees.
E) It significantly reduces employee turnover rates.
a

1) Jimmy owns an ice cream parlor. He designs a schedule for the different
tasks the employees have to perform in order to prevent monotony at work.
According to the schedule, if an employee makes waffle cones on a day, he
serves ice creams the next day and clears the tables on the day after that.
Jimmy is using the _____ approach at his ice cream parlor.
A) job enrichment
B) job enlargement
C) job rotation
D) job deskilling
E) job specialization
c
1) _____ involves systematically moving employees from one job to another.
A) Job enlargement
B) Job rotation
C) Job deskilling
D) Job specialization
E) Job enrichment
b
1) In _____, the jobs do not change, but instead workers move from job to job.
A) job rotation
B) job specialization
C) job enrichment
D) job deskilling
E) job enlargement
a
1) _____ was developed to increase the total number of tasks workers
perform. As a result, all workers perform a wide variety of tasks, which
presumably reduces the level of job dissatisfaction.
A) Job enlargement
B) Job rotation
C) Job enrichment
D) Job specialization
E) Job deskilling
a
1) Which of the following would require continually adding new tasks and
challenges as part of the job design?
A) Job enlargement
B) Job specialization
C) Job rotation
D) Job enrichment
E) Job deskilling
d
1) _____ attempts to increase both the number of tasks a worker does and the
control the worker has over the job.
A) Job deskilling
B) Job enrichment
C) Job specialization
D) Job rotation
E) Job entropy
b
1) Job enrichment:
A) does not increase the number of tasks that workers perform.
B) requires the organization to be highly centralized.
C) requires delegation of authority.
D) requires workers to perform a single task.
E) involves workers moving from job to job in a predetermined manner.
b
1) According to the job characteristics approach, task identity is _____.
A) the number of things a person does in a job
B) the extent to which a worker does a complete portion of the total job
C) the extent to which a worker knows how well the job is being performed
D) the perceived importance of the task
E) the degree of control a worker has over how the work is performed
b
1) In the context of the job characteristics approach, skill variety refers to:
A) the extent to which a worker knows how well the job is being performed.
B) the degree of control a worker has over how the work is performed.
C) the perceived importance of a task.
D) the extent to which a worker does a complete or identifiable portion of the
total job.
E) the number of things a person does in a job.
e
1) In the context of the job characteristics approach, _____ refers to the extent
to which a worker knows how well the job is being performed.
A) feedback
B) task identity
C) task significance
D) autonomy
E) skill variety
e
1) _____ is the process of grouping jobs according to some logical
arrangement.
A) Job rotation
B) Job enrichment
C) Departmentalization
D) Centralization
E) Industrialization
c
1) _____ departmentalization groups together those jobs involving the same
or similar activities.
A) Product
B) Functional
C) Location
D) Customer
E) Sequential
b
1) Creating different teams for finance, production, and marketing is consistent
with _____ departmentalization.
A) location
B) product
C) functional
D) sequential
E) customer
b
1) At Gamma Inc., there are separate departments of employees who
specialize in sales, service maintenance, customer service, and accounting.
What form of departmentalization does Gamma use?
A) Functional departmentalization
B) Product departmentalization
C) Location departmentalization
D) Customer departmentalization
E) Sequential departmentalization
a
1) Which of the following is a disadvantage of functional departmentalization?
A) Supervision becomes difficult as managers will need to have skills in
several areas.
B) Coordinating activities inside each department becomes difficult.
C) Decision making may tend to become slower as the organization grows.
D) Employees tend to focus on the overall organization rather than their
specific jobs.
E) Functional departmentalization cannot be implemented for smaller
organizations.
b
1) Relish Inc. is a large corporation in the food industry that manufactures
canned foods, confectionery, and baked?foods. The organization has a
separate department for each of these types of food manufactured. Each
department integrates all the activities required to manage their respective line
of food. Which of the following types of departmentalization is illustrated in the
scenario?
A) Sequential departmentalization
B) Customer departmentalization
C) Product departmentalization
D) Location departmentalization
E) Functional departmentalization
c
1) Janice owns a bakery that has only ten employees, out of which three are
bakers, four are waiters, and the rest belong to the housekeeping staff. Which
of the following approaches to departmentalization would work best for the
bakery?
A) Functional departmentalization
B) Product departmentalization
C) Customer departmentalization
D) Location departmentalization
E) Sequential departmentalization
a
1) The advantage of using the functional departmentalization approach is that:
A) supervision is facilitated because an individual manager needs to be
familiar with only a small set of skills.
B) the speed and effectiveness of decision making increase as the
organization grows.
C) accountability and performance become easier to monitor.
D) employees get a better view of the total organization.
E) decision making becomes less bureaucratic as the organization grows.
a
1) One disadvantage of using product departmentalization is that:
A) decision making tends to become slower and more bureaucratic.
B) the performance of individual products or product groups becomes difficult
to assess.
C) administrative costs rise because each department must have its own
functional specialists.
D) all activities associated with one product or product group cannot be easily
integrated and coordinated. E) accountability of departments becomes very
difficult to monitor.
c
1) _____ is defined as a clear and distinct line of authority among the
positions in an organization.
A) Chain of command
B) Span of management
C) Job deskilling
D) Flat structure
E) Synergy
a
1) The term span of management refers to the:
A) extent to which authority is delegated at the individual level.
B) extent to which authority is systematically delegated to middle and lower
levels of management.
C) number of people reporting to a particular manager.
D) process of grouping jobs according to some logical pattern.
E) number of managers assigned to a department.
c
1) _____ suggests that each person within an organization must have a
clearreporting relationship to one and only one boss.
A) Span of management
B) Entropy
C) Flat hierarchy
D) Unity of command
E) Scalar principle
d
1) Which of the following concepts suggests that there must be a clear and
unbroken line of authority that extends from the lowest to the highest position
in the organization?
A) The scalar principle
B) Unity of command
C) Entropy
D) Synergy
E) Decentralization
a

1) Which of the following is an accurate comparison between tall organizations

and flat organizations?
A) Tall organizations foster employee morale better than flat organizations.
B) Tall organizations have fewer managers than flat organizations.
C) Tall organizations foster more communication problems than flat
organizations.
D) Tall organizations place excessive administrative responsibilities on
managers than flat organizations.
E) Tall organizations foster more productivity than flat organizations.
c
1) When compared to tall organizations, flat organizations:
A) are more expensive.
B) place more supervisory responsibilities on managers.
C) have more layers of managers.
D) place minimal administrative responsibilities on managers.
E) have lower levels of employee morale and productivity.
b
1) When compared to flat organizations, tall organizations:
A) foster fewer communication problems.
B) foster more employee productivity.
C) are more expensive.
D) place excessive responsibilities on managers.
E) are less bureaucratic.
c
1) A wide span of management in a flat organization may result in a manager
having _____.
A) less authority over subordinates
B) more administrative responsibility
C) less accountability to a higher-up
D) less supervisory responsibility
E) more officers at different levels to report to
b
1) Tall organizations:
A) have more managers than flat organizations.
B) foster employee morale better than flat organizations.
C) place excessive supervisory responsibilities on managers.
D) have very few communication problems.
E) have less managerial expenses than flat organizations.
a

1) Researchers have found that a flat organization structure _____.

A) fosters more communication problems
B) is more expensive to maintain than a tall structure
C) leads to higher levels of employee morale
D) fosters bureaucracy
E) leads to lower levels of employee productivity
c
1) _____ is power that has been legitimized by the organization.
A) Entropy
B) Process gain
C) Synergy
D) Authority
E) Process loss
d
1) _____ is the process by which a manager assigns a portion of his or her
total workload to others.
A) Micromanagement
B) Delegation
C) Entropy
D) Synergy
E) Centralization
b
1) _____ is the process of systematically delegating power and authority
throughout the organization to middle- and lower-level managers.
A) Deskilling
B) Decentralization
C) Self-dealing
D) Divesting
E) Specialization
b
1) _____ is the process of systematically retaining power and authority in the
hands of higher-level managers.
A) Specialization
B) Delegation
C) Centralization
D) Self-dealing
E) Deskilling
c

1) Gadgetbug Inc. manufactures home appliances. All the decisions are made
by the top managers at the company. The middle and lower managers follow
the instructions given by top managers rather than making decisions by
themselves. Which of the following concepts is illustrated in the scenario?
A) Self-dealing
B) Synergy
C) Centralization
D) Specialization
E) Delegation
C
1) At Supertech Inc., a technology company, employees are given more
authority and are allowed to make their own decisions. Supertech operates in
a business environment that is not predictable. The middle managers,
supervisors, and employees have a degree of autonomy and are encouraged
to make decisions. Which of the following concepts is illustrated in the
scenario?
A) Deskilling
B) High power distance
C) Micromanagement
D) Decentralization
E) Job specialization
d
1) _____ is defined as the process of linking the activities of the various
departments of an organization.
A) Centralization
B) Specialization
C) Decentralization
D) Coordination
E) Delegation
d
1) At Delta Corp. the manufacturing and design department frequently
consults with the research and development department and the marketing
and sales department regularly interacts with the manufacturing and design
department. This scenario illustrates _____ at Delta.
A) coordination
B) delegation
C) job rotation
D) job specialization
E) centralization
a
1) _____ represents the lowest level of interdependence.
A) Pooled interdependence
B) Reciprocal interdependence
C) Sequential interdependence
D) Synergetic interdependence
E) Structural interdependence
A
1) Units with _____ operate with little interaction-the output of the units is put
together at the organizational level.
A) pooled interdependence
B) total interdependence
C) reciprocal interdependence
D) sequential interdependence
E) structural interdependence
a
1) In _____, the output of one unit becomes the input for another in a serial
fashion.
A) pooled interdependence
B) sequential interdependence
C) structural interdependence
D) total interdependence
E) reciprocal interdependence\
b
1) _____ exists when activities flow both ways between units.
A) Sequential interdependence
B) Pooled interdependence
C) Structural interdependence
D) Reciprocal interdependence
E) Total interdependence
d
1) Reciprocal interdependence:
A) is found in product and not service-based companies.
B) involves one-way interdependence.
C) represents the lowest level of interdependence.
D) involves minimal communication among departments.
E) is the most complex form of interdependence.
e

1) At Heritage Chocolates, the raw materials are processed at a plant and

then sent to the manufacturing plant. The manufactured chocolates are finally
sent to the packaging plant. This scenario illustrates _____ at Heritage
Chocolates.
A) pooled interdependence
B) two-way interdependence
C) reciprocal interdependence
D) sequential interdependence
E) structural interdependence
d
1) At Libra Motors Inc. operations managers give availability information to the
dealerships department. When the dealerships department has a specific
order, it is sent to the operations department. Which of the following concepts
is illustrated in the scenario?
A) Sequential interdependence
B) Product departmentalization
C) Pooled interdependence
D) Reciprocal interdependence
E) One-way interdependence
d
1) At Synergy School, Math, English, Science and Social Studies departments
operate separately. Student test scores in each area are gathered to evaluate
the effectiveness of the school. What level of interdependence does this
represent?
A) Pooled interdependence
B) Complex interdependence
C) Reciprocal interdependence
D) Sequential interdependence
E) Absolute interdependence
a
1) Cuisine Royale is a restaurant chain that has many outlets. Each outlet has
a separate budget and a set of staff. To determine the success of the entire
chain, the profits made by all the outlets are put together. Which of the
following concepts is illustrated in the scenario? A) Pooled interdependence
B) Reciprocal interdependence C) Job rotation D) Sequential interdependence
E) Specialization
a

1) Sequential interdependence:
A) typically involves no interaction among departments.
B) generally involves one-way interdependence.
C) is the most complex form of interdependence.
D) is a level of interdependence in which the performance of one department
is not affected by the performance of other departments.
E) represents the lowest level of interdependence.
b
1) A(n) _____ is a model of organization design based on a legitimate and
formal system of authority.
A) adhocracy
B) bureaucracy
C) entropy
D) autocracy
E) theocracy
b
1) Which of the following is one of the characteristics of Weber's bureaucracy?
A) Distinct division of labor
B) Close personal relationships between supervisors and subordinates
C) Absence of rules and regulations
D) Maximum level of decentralization
E) Presence of cross-departmental teams
a
1) Which of the following is a characteristic of Weber's bureaucracy
A) Promotions based on technical expertise
B) Absence of rules and regulations
C) Arbitrary dismissals
D) Random work assignment
E) A high level of decentralization
a
1) According to Weber, in a bureaucracy:
A) there should not be any arbitrary dismissals.
B) there should be no rules and regulations.
C) promotions should not be given based on technical expertise
. D) there should not be a social distance between supervisors and
subordinates.
E) there should be a chain of command.
a

1) _____ encompasses the conversion processes used to transform inputs

(such as materials or information) into outputs (such as products or services).
A) Deskilling
B) Entropy
C) Synergy
D) Technology
E) Divestiture
d
1) Durban Cafe takes one order at a time and customizes the coffee as per
the customer's requirement . The cafe uses _____ technology.
A) small-batch
B) mass-production
C) continuous-process
D) standardized process
E) large-batch
a
1) Jeanne owns a boutique in Paris and is best known for the formal suits that
she stitches for working women. She makes customized suits for each of her
customers, keeping their age, body type, and their appearance in mind. Which
of the following technologies is Jeanne using in her boutique?
A) Standardized-process technology
B) Large-batch technology
C) Continuous-process technology
D) Small-batch technology
E) Mass-production technology
d
1) Alpha Electronics assembles different parts to make standardized laptops.
Alpha Electronics uses _____ technology.
A) job rotation
B) mass-production
C) unit
D) continuous-process
E) small-batch
b
1) In _____ technology, raw materials are transformed to a finished product by
a series of machine transformations in such a way that the composition of the
materials themselves is changed.
A) product-customization
B) large-batch
C) mass-production
D) continuous-process
E) small-batch
d
1) In organizations using _____, the product is manufactured in assembly-line
fashion by combining component parts into another part or finished product.
A) job rotation technology
B) large-batch technology
C) unit technology
D) continuous-process technology
E) small-batch technology
b
1) According to Woodward, which of the following is true about the relationship
between organization design and core technology?
A) Organizations using mass production technology tend to have the least
level of specialization.
B) Organizations using continuous-process technologies tend to be the most
bureaucratic.
C) Organizations with large-batch technologies tend to be more bureaucratic.
D) Continuous-process technology is the least complex of all other
technologies.
E) Organizations using unit or small-batch technology are the most
bureaucratic.
c
1) According to Woodward's findings related to technology and organization
design:
A) successful continuous-process organizations tended to have more
bureaucracy.
B) unit-batch organizations had the highest level of specialization.
C) mass-production organizations tended to be the least bureaucratic.
D) unit-batch organizations tended to be the most bureaucratic.
E) mass-production organizations had a higher level of specialization.
e
1) A finding of Woodward's study about forms of technology was that:
A) mass-production organizations tended to have the lowest level of
specialization.
B) small-batch organizations tended to have minimal bureaucracy.
C) mass-production organizations tended to be the least bureaucratic.
D) continuous-process technology was the simplest of all forms of technology.
E) continuous-process organizations tended to be the most bureaucratic.
b
1) Gemini Motors has an assembly-line structure. Workers combine separate
parts into standardized finished motorbikes. Gemini Motors is most likely to be
using _____ technology.
A) small-batch
B) mass-production
C) continuous-process
D) unit
E) job enrichment
b
1) A(n) _____ organization is similar to the bureaucratic model.
A) mechanistic
B) organic
C) continuous process
D) large-batch
E) unit
a
1) Mechanistic organizations:
A) have the least level of specialization.
B) are least likely to have rules and regulations.
C) are most frequently found in stable environments.
D) are least likely to be bureaucratic.
E) are the most decentralized.
c
1) Which of the following statements is true about mechanistic organizations?
A) They have a very flexible and informal structure.
B) They have the lowest level of job specialization.
C) They are highly decentralized.
D) They are most frequently found in unpredictable and unstable
environments.
E) They structure their activities in predictable ways.
e
1) A mechanistic organization is most likely to:
A) have the least level of job specialization.
B) have a flexible structure.
C) have centralized authority.
D) have an informal organizational design.
E) operate in an unstable environment.
c

1) Which of the following statements is true about organic organizations?

A) They are similar to bureaucracies.
B) They are formal and rigid.
C) They have centralized authority.
D) They operate in unstable environments.
E) They have an inflexible organizational design.
d
1) Which of the following statements is true about an organic organization?
A) It has a flexible and informal organizational design.
B) It is most likely to be operating in a very stable and predictable
environment.
C) It has a structure that is similar to a bureaucracy.
D) It is most likely to have centralized authority.
E) It has higher levels of job specialization than a mechanistic organization.
a
1) _____ is the extent to which an organization is broken down into subunits.
A) Entropy
B) Differentiation
C) Integration
D) Synergy
E) Divestiture
b
1) _____ is the degree to which the various subunits must work together in a
coordinated fashion.
A) Integration
B) Differentiation
C) Departmentalization
D) Specialization
E) Entropy
a
1) Organizational size is defined as:
A) the total number of investors and stockholders in an organization. B) the
total number of departments in an organization.
C) the total number of full-time or full-time-equivalent employees in an
organization.
D) the total number of customers of an organization.
E) the total number of middle and first-line managers in an organization.
c

1) The _____ of an organizational life cycle is characterized by growth and the

expansion of organizational resources.
A) youth
B) birth
C) senescence
D) decline
E) divestiture
a
1) _____ is a period of stability in an organizational lifecycle, eventually
evolving into decline.
A) Maturity
B) Birth
C) Youth
D) Midlife
E) Synergy
a
1) As an organization passes from one stage of the organizational lifecycle to
the next, _____.
A) it becomes smaller
B) it's coordination demands increase
C) it becomes more centralized
D) it's structure becomes less mechanistic
E) it's control systems become more limited
b
1) Under the _____ arrangement, the members and units in an organization
are grouped into functional departments such as marketing and production.
A) division form
B) Z-form
C) H-form
D) U-form
E) M-form
d
1) The _____ design is based on multiple businesses in related areas
operating within a larger organizational framework.
A) conglomerate
B) divisional
C) H-form
D) matrix
E) functional
b
The _____ design is based on two overlapping bases of departmentalization.
A) H-form
B) matrix
C) functional
D) divisional
E) U-form
b
1) The _____ design is essentially a holding company that results from
unrelated diversification.
A) H-form
B) U-form
C) divisional
D) departmental
E) M-form
a
1) An organization that uses a team organization design:.
A) has a bureaucratic structure.
B) has an inflexible organizational structure.
C) has functional teams that perform specific functional tasks.
D) relies exclusively on project-type teams.
E) provides little scope for teams to develop adaptability.
d
1) A virtual organization:
A) typically has only a handful of permanent employees.
B) typically has a bureaucratic design.
C) has an inflexible formal structure.
D) typically has a very large staff and administrative headquarters facility.
E) has functional departmentalization.
a
1) A _____ organization works to facilitate the lifelong personal development
of all of its employees while continually transforming itself to respond to
changing demands and needs.
A) bureaucratic
B) centralized
C) hybrid
D) learning
E) matrix
d

1) Enlightened Minds is a software services firm that uses routine training

programs, seminars by eminent developers, and discussion forums to keep
employees updated on the recent developments in the software field.
Enlightened Minds is an example of a(n) _____.
A) learning organization
B) team organization
C) H-Form organization
D) matrix organization
E) virtual organization
a
1) Substantive modification to some part of an organization is known as
_____.
A) organization synergy
B) organization maturity
C) organization implementation
D) organization change
E) organization entropy
d
1) _____ is an example of an external force that affects an organization.
A) Employee motivation
B) Production costs
C) New government regulations
D) Surplus capital
E) High employee turnover
c
1) An example of a force for change in the task environment of an
organization is _____.
A) pricing strategies of competitors
B) employee turnover rates
C) capital availability
D) employee motivation
E) production costs
a
1) Which of the following forces for change is present in the task environment
of an organization?
A) Prices at which suppliers sell raw materials
B) The number of employees in the organization
C) Political changes in the country in which the organization operates
D) Overhead production costs of the organization
E) Availability of resources in the organization
a
1) Consumer tastes and preferences are _____ forces that influence an
organization's product line.
A) technical
B) internal
C) managerial
D) external
E) political
d
1) Alpha Motors Inc. was affected by the recession in 2008. The company had
to make extensive changes to its organizational structure and design. This
scenario illustrates how _____ forces affect organizations.
A) technical
B) external
C) managerial
D) legal
E) internal
b
1) ProDairy Inc. reduced the prices of its products to combat competitors that
were selling dairy products at lower prices. This scenario illustrates a force for
change present in the _____ of an organization.
A) task environment
B) supply chain
C) internal environment
D) legal-political environment
E) demographic environment
a
1) The top executives at Delta Inc. have decided to reorganize the corporation
from product divisions into geographic sectors. This is a(n) _____ force for
change.
A) internal
B) technical
C) political
D) external
E) environmental
a
1) Unions negotiating for higher wages is an example of a(n) _____ force for
change.
A) internal
B) technical
C) external
D) managerial
E) legal
c
1) _____ is change that is designed and implemented in an orderly and timely
fashion in anticipation of future events.
A) Planned change
B) Reactive change
C) Involuntary change
D) Organic change
E) Crisis change
a
1) Modifying the benefits system on a yearly basis to maintain employee
satisfaction is most likely to be a _____ change.
A) reactive
B) planned
C) contingency
D) legal
E) general environmental
b
1) _____ is a piecemeal response to circumstances as they develop.
A) Planned change
B) Programmed change
C) Premeditated change
D) Natural change
E) Reactive change
e
1) Reactive changes:
A) are made in anticipation of future events.
B) are generally more effective than planned changes.
C) have more potential for poorly conceived and executed change.
D) involve fewer risks than planned changes.
E) are preferred to planned changes by most successful organizations.
c
1) Which stage of the Lewin model of organization change involves managers
letting people who will be affected by an impending change know the reasons
for the change?
A) Implementing
B) Recognizing
C) Refreezing
D) Transforming
E) Unfreezing
e
1) According to the Lewin model of organization change process, refreezing
involves _____.
A) recognizing why the change is necessary
B) informing people about the change
C) the implementation of the change
D) reinforcing the change so that it becomes a part of the system
E) repeating the organization change process at frequent intervals
d
1) A company has set an objective to increase its product sales by 50 percent
in the next two years. Identify the step of the organization change process of
the company.
A) Recognition of the need for change
B) Establishment of goals for the change
C) Selection of appropriate change technique
D) Planning for implementation of the change
E) Evaluation and follow-up
b
1) Beta LLC has decided to change its hiring criteria so that more people with
technical expertise can join the company. Which step of the change process is
illustrated in the scenario?
A) Establishment of goals for the change
B) Recognition of the need for change
C) Selection of appropriate change technique
D) Diagnosis of the relevant variables
E) Evaluation and follow-up
c
1) A company has built a new manufacturing plant to increase production.
This scenario illustrates which step in the Lewin model of organization
change?
A) Unfreezing
B) Entropy
C) Reengineering
D) Implementation
E) Refreezing
d

1) _____ is the last step in the change process.

A) Diagnosis of relevant variables
B) Actual implementation
C) Evaluation and follow-up
D) Recognition of the need for change
E) Establishment of goals for the change
c
1) The first step of the change process involves:
A) recognizing the need for change.
B) implementing the change.
C) selecting a change technique.
D) choosing a change leader.
E) overcoming resistance to change.
A
1) Ron, a manager at a hardware components manufacturing unit, has
recently learned from a subordinate's report that the production rates in his
firm have gone down immensely because of poor employee morale. Ron has
realized that he needs to implement a change in the organization that will
motivate employees. Which of the following steps in the comprehensive
approach to change is illustrated in the scenario?
A) Recognizing the need for change
B) Understanding how to implement the change
C) Setting goals for the change
D) Selecting a change technique
E) Implementing the change
a
1) Which of the following is an example of a goal for change for an
organization?
A) Reacting to a forecast indicating new market potential
B) Recognizing that poor employee morale was caused by dangerous working
conditions
C) Deciding to decrease employee turnover rates by 90 percent
D) Introducing a new reward system for employees
E) Arranging for training on interpersonal skills for managers
c
1) Which of the following exemplifies the first step in the comprehensive
organization change model?
A) Setting standards for a new absenteeism control procedure
B) Noticing that the pension fund has less cash than needed to provide the
guaranteed employee benefits
C) Determining the probable causes of a recently detected drop in the level of
employee job satisfaction
D) Investigating different techniques for enhancing employee job satisfaction
E) Planning meetings to help employees understand the procedures in the
company's new quality program
b
1) Jenny runs a small boutique in New Orleans and has five employees
working under her. Lately, she has noticed that her boutique has not been
delivering customer orders on time, and she has realized that it is because of
the rise in the number of customers and insufficient manpower. She has
decided to employ another five employees. Which step of the change process
is illustrated in the scenario?
A) Implementing the change
B) Diagnosis of relevant variables
C) Selection of an appropriate change technique
D) Planning for implementation of change
E) Evaluation and follow-up
c
1) The top management at Omega Inc. recently initiated an employee
motivation drive to improve employee morale and in turn decrease turnover
rates. It has now commissioned a statistics firm to check the effect of its
initiative on the employees' morale. Which step of the comprehensive
approach to change is illustrated in the scenario?
A) Evaluation and follow-up
B) Selection of appropriate change technique
C) Planning for implementation of change
D) Diagnosis of relevant variables
E) Actual implementation
a
1) In general, the biggest cause of worker resistance to change is _____.
A) satisfaction
B) uncertainty
C) regret
D) feelings of loss
E) different perceptions
b
1) When Beta Inc. acquired Redd Communications, there was a huge uproar
by the staff of Redd Communications as there were rumors of staff reductions
and operations closures. _____ was the cause for this reaction by the Redd
Communications staff.
A) Synergy
B) Process gain
C) Uncertainty
D) Process loss
E) Facilitation
c

1) Wendy is reluctant to accept a new job offer because she's worried about
her ability to meet new job demands. The most likely reason for such
employee resistance to change is _____.
A) threatened self-interests
B) facilitation
D) participation
C) uncertainty
E) feelings of loss
c

1) When the top management at Venus Corp. sought to change the

organization design, form more work teams, and decrease the managers'
span of management, it met with great resistance from the managers. This
was because the managers feared that their power within the company would
decrease. The managers' reaction to change was brought about by _____.
A) facilitation
B) participation
C) threatened self-interests
D) low self-confidence
E) unfamiliarity with company procedures
c

1) Which of the following is an effective way of overcoming resistance to

change?
A) Allowing employees to participate in the change process
B) Fostering an environment of uncertainty in the organization
C) Announcing the change only after it has been implemented
D) Minimizing communication among employees
E) Avoiding force-field analysis
a
1) Which of the following is a cause for the resistance to change that a worker
might feel because the worker disagrees with the management that the
change will be best for the organization in the long-run?
A) Threatened self-interests
B) Risk propensity
C) Participation
D) Different perceptions
E) Feelings of loss
d
1) Managers can overcome resistance to change by:
A) not letting employees know about the change.
B) letting employees know about the change only after it has been
successfully implemented.
C) limiting the involvement of employees in the change process.
D) minimizing communication during the change process.
E) announcing the change much in advance.
e
1) Which of the following is an effective way of overcoming resistance to
change?
A) Using micromanagement techniques
B) Using facilitation techniques
C) Using deskilling techniques
D) Limiting employee involvement in the change process
E) Minimizing communication
b
1) To overcome resistance to change, the top management of a company
discusses with its employees the new employee policies and procedures that
it proposes to bring in and also seeks their involvement in the change process.
This scenario illustrates the _____ technique that helps reduce resistance to
change.
A) participation
B) synergy
C) deskilling
D) greenwashing
E) risk propensity
a
1) Martin is trying to adopt more automated equipment in his soda bottling
facility, and workers are resisting the change. When Martin decides to hold a
meeting to explain to workers how the change will be beneficial to them, he is
using _____ as a means of overcoming resistance to change.
A) entropy
B) micromanagement
C) deskilling
D) education
E) specialization
d
1) The top management at Phoenix Inc. planned to shift their corporate office
to a bigger and better facility about four streets away from the current location.
The top managers knew that their decision would meet with considerable
employee resistance, so they informed all the employees well in advance of
the advantages of moving to the new office. This minimized the employees'
resistance. Which of the following techniques of overcoming resistance is
illustrated in the scenario?
A) Risk propensity
B) Education
C) Specialization
D) Micromanagement
E) Deskilling
b
1) According to the results of a classic study, employee participation:
A) reduces the need for communication.
B) encourages employees to resist change.
C) increases productivity and satisfaction.
D) increases turnover rates.
E) creates a centralized structure.
c
1) In most change situations, there are factors that make the change process
more difficult and others that seem to ease the process. The process by which
a manager identifies these factors and then tries to tip the balance so that the
factors facilitating the change outweigh those hindering the change is called
_____.
A) facilitation
B) implementation
C) force-field analysis
D) participative development
E) education
c
1) A force-field analysis identifies:
A) management potential in existing employees.
B) synergy in an organization.
C) the need for structural change in an organization.
D) factors that facilitate and hinder organization change.
E) the appropriate span of management for an organization.
d
1) Gamma Corp. is planning to bring in new internal standards for all the
products it manufactures. The new standards will ensure better quality and will
also help the company gain a competitive advantage. However, the factors
that stand in the way of the change are increased workload on employees and
the need for skill development among employees. To minimize these factors
that hinder the change, Gamma has decided to motivate its employees
through a reward system. Which of the following concepts is illustrated in the
scenario?
A) Force-field analysis
B) Participation
C) Job deskilling
D) Specialization
E) Micromanagement
a
1) A change in an organization's culture is an example of change in the area
of _____.
A) organization structure
B) organizational operations
C) work processes
D) information technology
E) organizational control systems
a
1) Alpha Corp. has divided its business into a number of sub units. This
organization change is an example of change in the area of _____.
A) people
B) operations
C) structure and design
D) social responsibility
E) organization mission
c
1) Richard Inc. has been receiving complaints from its customers about the
inefficiency of its customer service professionals. The company has now
decided to change the recruitment criteria for this role. The new criteria place
more emphasis on technical expertise. Richard Inc. is attempting to make a
change in the area of _____.
A) information technology
B) work sequences
C) operations
D) enterprise resource planning
E) organization structure and design
e
1) A company has recently undergone a transformation from using a highly
centralized approach to a much more decentralized approach for managing its
operations. This change represents a change in the area of _____.
A) technology
B) work sequences
C) work processes
D) organization structure
E) enterprise resource planning
d
1) Image LLC, an advertising company, has recently received several long-
term projects from leading companies. Image has decided to switch from
functional departmentalization to cross-functional work teams to be able to
perform better. This is an example of change in the area of _____.
A) technology and operations
B) social structure
C) people
D) organization structure and design
E) task environment
d
1) When a firm decides to decrease the number of first-line managers it has,
and thus increase the span of management of first-line managers, it is making
a change in the area of _____.
A) organization structure and design
B) social structure
C) task environment
D) people
E) technology and operations
a
1) Robin Plastics Inc. recently set up a new strategic business unit. The
company made changes in the area of _____.
A) technology and operations
B) social structure
C) people
D) task environment
E) organization structure and design
e
1) Alba Inc. replaced old equipment with new and advanced production
equipment in all its plants. This is an example of a change in the area of
_____.
A) job design
B) people
C) organization culture
D) line-staff structure
E) technology and operations
e
1) When a company changes its work processes, the change is in the area of
_____.
A) people
B) technology and operations
C) job design
D) facilitation
E) task environment
b
1) Watches.com, an online watch store, recently adopted a new enterprise
resource planning (ERP) system to help keep track of the company's inventory
and to deliver customers' orders on time. The company's adoption of the new
ERP system reflects a change in the area of _____.
A) organization culture
B) job design
C) technology and operations
D) people
E) departmentalization
c
1) Which of the following is an example of an organization's change in
technology and operations?
A) Enhanced job design
B) Introduction of departmentalization
C) Adoption of new information systems
D) Introduction of a new compensation program
E) Introduction of new employment policies
c
1) When organizational change involves planned alteration of work sequence
or work activities, the change primarily occurs in the area of _____.
A) people
B) technology and operations
C) social responsibility
D) strategy
E) organizational structure and design
b
1) Which of the following represents organization change in the area of
change in technology and operations?
A) Changing line and staff relationships
B) Upgrading the management information system
C) Training people to give them new skills and abilities
D) Redesigning jobs
E) Changing the authority distribution in a company
b
1) _____ is the conversion process used by an organization to transform
inputs into outputs.
A) Reengineering
B) Divestment
C) Technology
D) Entropy
E) Process gain
c
1) Blue Bells Inc. is a software services firm. Lately, the company's HR
department noticed that its employees' performance levels have plummeted,
and a survey conducted by the firm indicated that this was due to low
employee satisfaction levels. This prompted the HR department to introduce a
new incentive system in the company. This is an example of change in the
area of _____.
A) people B) task environment
C) technology and operations
D) general environment
E) regulatory systems
a
1) Attempting to change the attitudes and values of a company's workforce
indicates a change in the area of _____.
A) people
B) work processes
C) organizational control systems
D) organization structure
E) task environment
A

1) A company has introduced new rules and regulations and appraisal criteria
to promote discipline and commitment among employees. This organization
change is in the area of _____.
A) work process
B) enterprise resource management
C) technology
D) operations
E) people
e
1) _____ is a common platform for changing business processes.
A) Enterprise resource planning
B) Entropy
C) Reverse engineering
D) Contingency planning
E) Synergy
a
1) The radical redesign of all aspects of an organization in order to achieve
major gains in cost reduction, service delivery, or reduction in order-
processing time is known as _____.
A) entropy
B) process change
C) innovation
D) reengineering
E) system change
d
1) The normal process within an organization that leads to a system decline is
known as _____.
A) reengineering
B) synergy
C) process gain
D) innovation
E) entropy
e
1) Which of the following is true of business process changes?
A) Business process change should not be carried out during a phase of
entropy.
B) Business process change requires a careful blend of top-down and bottom-
up involvement.
C) Centralization must be adopted by the top management for the business
process change to be successful.
D) Employee participation should be minimal during a business process
change.
E) Successful business process change is not accompanied by a sense of
urgency.
b
1) In the reengineering process, the first step involves:
A) setting goals and developing a strategy.
B) emphasizing top management's commitment to reengineering.
C) implementing the chosen strategy across the organization.
D) optimizing top-down and bottom-up perspectives.
E) creating a sense of urgency among managers.
a
1) Which of the following can help make the reengineering process more
effective?
A) Limiting communication
B) Creating a sense of urgency in the organization
C) Adopting a highly centralized organizational structure
D) Refraining from making extensive changes
E) Limiting employee involvement in the process
b
1) Which of the following can help make the business change process more
effective?
A) Limiting employee involvement in the process
B) Refraining from creating a sense of urgency in the organization
C) Starting the process with a new, clean slate
D) Limiting communication channels
E) Refraining from changing company strategies
c
1) The reengineering process can be made effective by:
A) adopting a hands-off leadership style.
B) extensively using micromanagement leadership techniques.
C) adopting a strong but not autocratic leadership style.
D) eliminating any sense of urgency in the organization.
E) limiting employee participation in the process.
e
1) Which of the following is one of the assumptions on which the theory and
practice of organization development (OD) are based?
A) Employees tend to perform well when micromanagement techniques are
used.
B) The total organization and the way it is designed influence the way
individuals behave within the organization.
C) All employees have a strong need to control and influence their colleagues
and the organization's work processes.
D) Employees naturally dislike their work and lack ambition.
E) A successful corporate leader is one who adopts an autocratic style of
leadership to control his subordinates.
b
1) Libra Technologies Inc. frequently asks its employees to measure such
things as supervisor effectiveness. The company circulates various
questionnaires among all its employees to get their insights. Which
organization development is illustrated in the scenario?
A) Third-party peacemaking
B) Survey feedback
C) Team building
D) Process consultation
E) Force-field analysis
b
1) _____ are aimed at analyzing the current condition of an organization; this
approach involves using questionnaires, opinion surveys, interviews, archival
data, and meetings to assess the various characteristics of the organization.
A) Life and career planning activities
B) Technostructural activities
C) Third-party peacemaking activities
D) Diagnostic activities
E) Process consultation activities
d
1) Which of the following is a possible diagnostic activity in organization
development?
A) Enterprise resource planning
B) Attitude surveys
C) Force-field analysis
D) Job shadowing
E) Reverse engineering
b
1) Leading Edge Software Inc. has introduced a new activity called "Group
Farming" in which the company's executive groups participate in farming
activities for three hours every month. This activity has been designed by the
company to emphasize the importance of interdependence and coordination
among its employees. Which of the following organization development
techniques is the company using?
A) Third-party peacemaking
B) Process consultation
C) Team building
D) Survey feedback
E) Coaching and counseling
c
1) Zen Electricals Inc. has internal experts who help executives learn about
how others see them and improve their performance in the future. The
company is using the organization development technique called _____.
A) technostructural activities
B) process consultation
C) team building
D) coaching and counseling
E) third-party peacemaking
d
1) In the context of organization development techniques, coaching and
counseling:
A) focus on how an individual is performing today.
B) provide nonevaluative feedback to individuals.
C) provide assistance to individuals with achieving non-work-related
objectives.
D) are designed for managers and not executive employees.
E) focus exclusively on increasing productivity.
b
1) _____ is an organization development (OD) technique that helps
employees formulate their personal goals and evaluate strategies for
integrating their goals with the goals of the organization.
A) Process consultation
B) Third-party peacemaking
C) Team building
D) Life and career planning
E) Counseling
d
1) The first stage of the organizational innovation process is _____ of creative
ideas.
A) growth
B) maturity
C) launch
D) development
E) application
d
1) _____ is the managed effort of an organization to develop new products or
services or new uses for existing products or services
A) Divestiture
B) Innovation
C) Reverse engineering
D) Job deskilling
E) Contingency management
b
1) _____ is the stage of the innovation process at which an organization
introduces new products or services to the marketplace.
A) Innovation development
B) Application launch
C) Innovation application
D) Application growth
E) Innovation maturity
b
1) During which phase of the organizational innovation process do most
organizations have access to an innovation and apply it in the same way?
A) Innovation development
B) Innovation maturity
C) Innovation launch
D) Innovation growth
E) Innovation application
b
1) _____ are new products, services, or technologies developed by an
organization that completely replace the existing products, services, or
technologies in an industry.
A) Process innovations
B) Incremental innovations
C) Radical innovations
D) Mechanical innovations
E) Managerial innovations
c
1) _____ are changes in the way products or services are manufactured,
created, or distributed.
A) Process innovations
B) Operational innovations
C) Radical innovations
D) Mechanical innovations
E) Managerial innovations
a
1) A(n) _____ is a change in the appearance or performance of a product or
service or of the physical processes through which a product or service is
manufactured.
A) technical innovation
B) incremental innovation
C) radical innovation
D) mechanical innovation
E) managerial innovation
a
1) _____ is one of the three specific ways for promoting innovation in
organizations.
A) Organization culture
B) Organization development
C) Enterprise resource planning
D) Force-field analysis
E) Division of labor
a
1) A(n) _____ is a top-level manager who approves of and supports a project.
This person may fight for the budget needed to develop an idea, overcome
arguments against a project, and use organizational politics to ensure the
project's survival.
A) product champion
B) inventor
C) innovation champion
D) investor
E) sponsor
e
1) A(n) _____ is a person who actually conceives of and develops the new
idea, product, or service by means of the creative process.
A) inventor
B) sponsor
C) product champion
D) angel investor
E) venture capitalist
a

1) A(n) _____ is usually a middle manager who learns about a new project
and becomes committed to it. He helps overcome organizational resistance to
change and convinces others to take the innovation seriously.
A) product champion
B) inventor
C) sponsor
D) venture capitalist
E) transformational leader
a
1) The set of activities directed at attracting, developing, and maintaining an
effective workforce is called _____.
A) operations management
B) organization development
C) relationship management
D) enterprise feedback management
E) human resource management
e
1) _____ reflects an organization's investment in attracting, retaining, and
motivating an effective workforce.
A) Financial capital
B) Human capital
C) Surplus capital
D) Enterprise capital
E) Production capital
b
1) _____forbids discrimination on the basis of sex, race, color, religion, or
national origin in all areas of the employment relationship.
A) The Citizen Rights Act of 1957
B) Title IV of the Sarbanes Oxley Act
C) Title VII of the Civil Rights Act of 1964
D) Section 1107 of the Sarbanes Oxley Act
E) Section 401 of the Public Company Accounting Reform and Investor
Protection Act
c
1) A hospital refuses to employ male nurses. This illustrates _____.
A) confirmatory bias
B) affirmative action
C) a direct form of discrimination
D) equal employment opportunity
E) employment at will
c
1) A taxi company has a policy that it will never hire women drivers. This
scenario illustrates_____.
A) workforce diversity
B) source monitoring error
C) a direct form of discrimination
D) confirmatory bias
E) affirmative action
c
1) Which of the following is an example of a direct form of discrimination?
A) An organization intentionally seeking and hiring employees from groups
that are underrepresented in the organization
B) An organization refusing to promote employees belonging to an ethnic
minority into management
C) An organization hiring professionals based on their experience and skills
D) An organization using employment tests that men pass at a higher rate
than women
E) An organization using realistic job previews to recruit employees
b
1) When an organization uses an employment test that the majority ethnic
group is known to pass at a higher rate than minority groups , it is exhibiting
_____.
A) an indirect form of discrimination
B) equal employment opportunity
C) affirmative action
D) a direct form of discrimination
E) a realistic job preview
a
1) _____ is defined as intentionally seeking and hiring qualified or qualifiable
employees from racial, sexual, and ethnic groups that are underrepresented in
an organization.
A) Affirmative action
B) Direct form of discrimination
C) Indirect form of discrimination
D) Adverse impact
E) Validation
a

1) A medical student belonging to a minority ethnic group was selected for an

internship program at a hospital even though he had lower grades and test
scores than other applicants. This scenario illustrates:
A) confirmatory bias.
B) employment at will.
C) affirmative action.
D) source monitoring error.
E) equal employment opportunity.
c
1) The Age Discrimination in Employment Act forbids discrimination against
workers above which of the following ages?
A) 40
B) 45
C) 50
D) 55
E) 65
a
1) Employment requirements such as test scores and other qualifications are
legally defined as having a(n) _____ on minorities and women when such
individuals meet or pass the requirement at a rate less than 80 percent of the
rate of majority group members.
A) affirmative action
B) adverse impact
C) confirmatory action
D) lien
E) divergent impact
b
1) The Age Discrimination in Employment Act:
A) exclusively protects the elderly belonging to minority groups from
discrimination.
B) sets a minimum wage for the elderly and requires overtime pay for work in
excess of 40 hours per week.
C) protects individuals below the age of 25 years from discrimination.
D) requires affirmative action.
E) requires passive nondiscrimination.
e
1) The Civil Rights Act of 1991:
A) increases punitive damages in lawsuits.
B) makes it easier for employees to sue an organization for discrimination.
C) requires employers to provide up to 12 weeks of paid leave for family and
medical emergencies.
D) limits union powers.
E) sets standards for safe working conditions.
1) The Civil Rights Act of 1991:
A) limits union powers.
B) mandates affirmative action in all private business firms.
C) limits punitive damages in lawsuits.
D) allows passive discrimination.
E) sets standards for product packaging
d
1) The _____ sets up a procedure for employees to vote on whether to have a
union.
A) National Labor Relations Act
B) Labor Management Relations Act
C) Taft-Hartley Act
D) Civil Rights Act of 1991
E) Fair Labor Standards Act
a
1) Which of the following laws limits union power and specifies management
rights during union-organizing campaign?
A) The National Labor Relations Act
B) The Employee Retirement Income Security Act of 1974
C) The Fair Labor Standards Act
D) The Labor Management Relations Act
E) The Occupational Safety and Health Act of 1970
d
1) The Family and Medical Leave Act of 1993 requires employers to provide
up to _____ for family and medical emergencies.
A) six months of paid leave
B) 12 weeks of unpaid leave
C) 15 weeks of paid leave
D) one year of unpaid leave
E) one year of paid leave
b
1) _____ also contains the National Emergency Strike provision, which allows
the president of the United States to prevent or end a strike that endangers
national security.
A) The Civil Rights Act of 1991
B) Title IV of the Sarbanes Oxley Act
C) The Occupational Safety and Health Act of 1970
D) The Taft-Hartley Act
E) The Kennedy-Hawkins Act
d
1) The _____, passed in 1938 and amended frequently since then, sets a
minimum wage and requires the payment of overtime rates for work in excess
of 40 hours per week.
A) National Labor Relations Act
B) Labor Management Relations Act
C) National Labor Relations Act
D) Occupational Safety and Health Act
E) Fair Labor Standards Act
e
1) _____ is a systematized procedure for collecting and recording information
about jobs within an organization.
A) Job analysis
B) Job evaluation
C) Job specialization
D) Job enrichment
E) Job enlargement
a
1) Which of the following is the first step in human resource planning?
A) Assessing external and internal trends
B) Predicting demand
C) Forecasting supply
D) Comparing future demand and internal supply
E) Planning a response to predicted shortfalls or overstaffing
a
1) The _____ lists the duties of a job, the job's working conditions, and the
tools, materials, and equipment used to perform it.
A) job specification
B) job description
C) replacement chart
D) statement of qualification
E) article of incorporation
b
1) The _____ lists the skills, abilities, and other credentials needed to do a job.
A) article of incorporation
B) replacement chart
C) job description
D) job specification
E) statement of qualification
d
1) A(n) _____ is usually computerized and contains information on each
employee's education, work experience, and career aspirations.
A) bona fide occupational qualification
B) article of incorporation
C) skills inventory
D) statement of qualification
E) job description
c
1) A job description is most likely to provide information about:
A) the skills of an existing employee.
B) the tools, materials, and equipment used to perform the job.
C) the educational background of an applicant.
D) the personal profile of a supervisor.
E) the kind of skills that a job demands.
b
1) You are reading a document that says that a job applicant must have good
writing skills, be a citizen of the United States, and have a degree in
management. You are reading a(n) _____.
A) article of incorporation
B) job analysis
C) job description
D) replacement chart
E) job specification
e
1) A(n) _____ lists each important managerial position in an organization, who
occupies it, how long he or she will probably remain in the position, and who is
or will be a qualified fill-in.
A) skills inventory
B) employee information system
C) enterprise resource planning system
D) replacement chart
E) Gantt chart
d

1) The CEO of Redd Inc. needs to know the names of the line managers in
the company who will soon be ready to take up positions in middle
management. The CEO can obtain this information from the _____.
A) demand forecast
B) job analysis
C) supply forecast
D) job evaluation
E) replacement chart
e
1) Jennifer, the CEO of Phoenix Corp., is planning to build an internal design
team for the company. She is looking for employees within the company who
have the expertise and an interest in designing. Jennifer can find this
information in the _____.
A) replacement chart
B) job specification
C) skills inventory
D) job description
E) article of incorporation
c
1) Jason, a manager, is working on a new project that involves a lot of
statistics. Jason is looking for employees with a background in statistics. He
can find this information in the _____ of his company.
A) article of incorporation
B) job description
C) job specification
D) skills inventory
E) replacement chart
d
1) While matching human resource supply and demand, managers can handle
predicted shortfalls by _____.
A) avoiding the employment of new employees
B) convincing individuals who are approaching retirement to stay on
C) not replacing people who have quit
D) laying off employees
E) reducing the benefits provided to employees
b
1) _____ is the process of attracting qualified persons to apply for jobs that
are open.
A) Mentoring
B) Recruiting
C) Job analysis
D) Job evaluation
E) Validation
b
1) Advertising, campus interviews, employment agencies, and union hiring
halls are all _____ methods.
A) external recruiting
B) job analysis
C) validation
D) job evaluation
E) realistic job preview
a
1) _____ is defined as determining the extent to which a selection device is
really predictive of future job performance.
A) Realistic job preview
B) Internal recruitment
C) Job evaluation
D) Validation
E) Job analysis
d
1) Nelson recently attended an interview where the HR manager showed him
a video of an ordinary work day in the organization and explained in detail the
expectations of the job. The HR manager also explained about the criteria for
promotions in the company. Although some of the information did not appeal
to Nelson, he was sure about what to expect from the job and the company.
The organization used the _____ method in the interview.
A) affirmative action
B) training and development
C) job enlargement
D) job specialization
E) realistic job preview
e
1) A job application blank should not contain questions about an
applicant's_____.
A) previous work history
B) educational background
C) national origin
D) age
E) personal interests
c
1) Teresa, a recruiter, needs to know basic information such as the name,
educational background, and the work experience of a candidate she will be
interviewing. Teresa can find this information in the candidate's _____.
A) skills inventory
B) job description
C) job specification
D) application blank
E) replacement chart
d
1) The assessment center:
A) is used to select external candidates.
B) is a content-valid simulation of major parts of the managerial job.
C) is most likely to be biased against women and minority groups.
D) essentially involves conducting physical exams and drug tests on
candidates.
E) essentially involves running credit checks on prospective employees.
b
1) A company has all of its candidates who are qualifiable for promotion attend
a five-day evaluation session during which they take a battery of tests,
interviews, and perform in simulated work scenarios. The _____ method is
used for the selection process in this scenario.
A) assessment center
B) structured orientation process
C) job analysis
D) job deskilling
E) attrition
a
1) _____ refers to teaching managers and professionals the skills needed for
both present and future jobs.
A) Development
B) Deskilling
C) Validation
D) Job evaluation
E) Performance appraisal
a
1) In human resource management, _____ usually refers to teaching
operational or technical employees how to do the job for which they were
hired. .
A) job rotation
B) job specialization
C) development
D) training
E) deskilling
d
1) Sara is an efficient supervisor at a restaurant, which is part of a large
national chain. She was recently sent to a two-week educational course by her
employer to help her get the skills she needs for promotion to a higher
management post. The human resource management concept illustrated in
the scenario is _____.
A) job specialization
B) job rotation
C) development
D) training
E) recruitment
c
1) Venus LLC has recently recruited a new batch of employees, and the HR
manager intends to apprise company rules to the employees. Which of the
following training methods is most preferable in this scenario?
A) Electronic-media-based training
B) The lecture method
C) Role-playing
D) Case discussion groups
E) On-the-job training
b
1) _____is an ideal method for training employees in group decision making.
A) Vestibule training
B) Programmed learning
C) Role-playing
D) Assigned reading
E) The lecture method
c
1) Ken is a newly hired police officer. He has been asked to spend a workday
with a more experienced officer to learn about paperwork, how to handle
accident scenes, how to interact with people, and other duties that he will be
expected to perform. Which of the following concepts is illustrated in the
scenario?
A) Performance appraisal
B) The assessment center method
C) Training manuals
D) On-the-job training
E) The lecture method
d
1) _____ is an effective method to use for training employees about ethical
dilemmas and ethical decision making.
A) Job specialization
B) Case discussion groups
C) On-the-job training
D) The lecture method
E) Programmed instruction
b
1) _____ is used when employees must learn a physical skill, and this method
also enables participants to focus on safety, learning, and feedback rather
than on productivity.
A) Job rotation
B) The lecture method
C) Case discussion groups
D) Vestibule training
E) Assigned reading
d
Which of the following is an advantage of Web-based training methods?
A) They can be easily updated and revised.
B) They facilitate interpersonal skills better than all other training methods.
C) They perfectly simulate real activities.
D) They effectively facilitate face-to-face interaction.
E) They can be easily used in place of vestibule training methods
a
1) _____ is a formal assessment of how well employees are doing their jobs
. A) Job specialization
B) Job analysis
C) Performance appraisal
D) Employment branding
E) Validation
c
1) Which of the following is an example of an objective measure of
performance?
A) Dollar volume of sales
B) Interpersonal agreeability
C) Ranking
D) Ratings
E) Commitment
a
1) Ranking D) Ratings E) Commitment
2) Number of claims processed, total sales, and scrap rate are all examples of
_____.
A) training methods
B) predictive validation methods
C) content validation methods
D) judgmental performance appraisal criteria
E) objective performance appraisal criteria
e
1) An example of judgmental performance measure is _____.
A) ranking
B) total sales
C) scrap rate
D) dollar volume of sales
E) number of units produced
a
1) _____ compares each employee with a fixed standard rather than
comparison with other employees.
A) An objective method
B) Rating
C) Ranking
D) Job specialization
E) Job enlargement
b
1) The Behaviorally Anchored Rating Scale (BARS) is _____.
A) a method used for the validation of a selection device
B) an objective method of performance appraisal
C) a judgmental method of performance appraisal
D) a job training technique
E) a job analysis technique
c
1) A(n) _____ occurs when a manager allows the assessment of an employee
on one dimension to spread to ratings of that employee on other dimensions.
A) recency error
B) average error
C) validation error
D) source monitoring error
E) halo error
e
1) Jan works as a salesperson. She generally achieves the expected targets
but has also failed several times. For the previous month, she performed
better than all her team members and achieved a huge sales volume. Even
though Jan has not achieved her targets on several occasions during the past
one year, her supervisor ranked her as number one. This is an example of
how a(n) _____ can influence a performance appraisal.
A) recency error
B) halo error
C) source monitoring error
D) severity error
E) average error
a
1) A performance appraisal system in which managers are evaluated by
everyone around them-their boss, their peers, and their subordinates is known
as _____.
A) employment at will
B) 360-degree feedback
C) source monitoring
D) job evaluation
E) job specialization
b
1) _____ is the financial remuneration given by an organization to its
employees in exchange for their work.
A) Progression
B) Compensation
C) Validation
D) An intangible benefit
E) Insurance
b
1) A(n) _____ represents a special compensation opportunity that is usually
tied to performance.
A) wage
B) salary
C) incentive
D) benefit
E) intangible reward
c

1) _____, sometimes called indirect compensation, are things of value other

than compensation that an organization provides to its workers.
A) Appraisals
B) Ratings
C) Rankings
D) Benefits
E) Scrap rates
d
1) At Omega Inc., a fixed amount of money is added to the salaries of
employees if their performance exceeds a predetermined level of expectation.
A smaller portion of the amount is added if the employees' performances just
meet the expected level. Omega is most likely to be motivating their
employees with _____.
A) incentives
B) intangible benefits
C) rankings
D) progressions
E) appraisals
a
1) During a job interview, Sarah asked the HR manager if the company would
provide her a family insurance or a retirement plan. She was discussing the
_____ that companies generally offer.
A) benefits
B) intangible benefits
C) incentives
D) wages
E) progressions
a
1) Gamma Inc. has a reputation for paying higher than the prevailing wages in
its industry. This is an example of a(n) _____ decision by its management.
A) wage-level
B) wage-structure
C) individual wage
D) wage-benefit package
E) benefit-level
a

1) The _____ is a management policy decision about whether a firm wants to

pay above, at, or below the going rate for labor in the industry or the
geographic area.
A) wage-level decision
B) benefit-level decision
C) wage-structure decision
D) individual wage decision
E) individual benefit decision
a
1) An attempt to assess the worth of each job relative to other jobs is known
as _____.
A) job analysis
B) job evaluation
C) the wage-level decision
D) performance appraisal
E) benefit determination
b
1) When human resource managers determine how much each worker in a
particular wage grade will be paid, they are making a(n) _____ decision.
A) wage-level
B) wage-structure
C) individual wage
D) benefit-level
E) overall-benefit
c
1) _____ are usually set up through a procedure called job evaluation-an
attempt to assess the worth of each job relative to other jobs.
A) Wage-level policies
B) Wage structures
C) Individual wage policies
D) Wage level decisions
E) Individual-benefit structures
b
1) A policy at Synergy Corp. states that the middle managers get a pay that is
three times the pay of supervisors and the top managers get a pay that is six
times the pay of first-line managers. The policy is regarding the _____ of
Synergy.
A) wage-benefit decision
B) wage-level decision
C) individual-wage structure
D) benefit structure
E) wage structure
e
1) A cafeteria benefits plan:
A) allows employees to choose from a set of optional benefits.
B) provides performance-linked incentives to employees.
C) reimburses employees for their food and transportation expenses.
D) pays extra wages to employees for work they do during their lunch hour.
E) allows employees to take a certain number of unpaid leaves.
a
1) In the business world, the term _____ is generally used to refer to
demographic differences among people-differences in gender, age, ethnicity,
and so forth.
A) homogeneity
B) synergy
C) diversity
D) divestiture
E) entropy
c
1) Organizations with a diverse workforce are most likely to _____ when
compared to less diverse organizations.
A) have higher levels of productivity
B) have higher levels of turnover
C) have higher levels of absenteeism
D) foster fewer conflicts
E) have a lack of understanding of different market segments
A
1) Which of the following is an effective individual strategy for managing
diversity?
A) Using micromanagement techniques for managing minority groups
B) Limiting interpersonal communication
C) Fostering tolerance
D) Treating everyone the same without regard for their fundamental human
differences
E) Forming culturally and ethnically homogenous work teams
c
1) An effective individual strategy for managing a diverse workforce is:
A) Encouraging interpersonal communication
B) Treating everyone the same without regard for their fundamental human
differences
C) Creating ethnically homogenous work teams
D) Using micromanagement techniques
E) Limiting managerial communication
a
1) An organization with a diverse workforce:
A) is most likely to have a high turnover.
B) is most likely to have low productivity.
C) is least likely to have conflicts.
D) is least likely to require communication.
E) is most likely to have a competitive advantage.
e
1) Which of the following statements is true in the context of diversity in an
organization?
A) Organizations with a diverse workforce are also better able to understand
different market segments than are less diverse organizations.
B) Organizations with diverse workforces are generally less creative and
innovative than other organizations.
C) Organizations that place emphasis on diversity tend to have fewer conflicts
and communication problems than other organizations.
D) Organizations that place emphasis on diversity have fewer training
requirements than organizations with non-diverse workforces.
E) Organizations with diverse workforces generally have lower levels of
productivity than other organizations.
a
1) Organizations with a diverse workforce:
A) have fewer training needs.
B) find it difficult to gain competitive advantages.
C) tend to have low productivity.
D) tend to have conflicts.
E) find it difficult to understand different market segments.
d
1) Which of the following statements is true in the context of effectively
managing diverse workforces?
A) Tolerance is not required to effectively function in a diverse workforce.
B) A diverse workforce can be managed effectively by not acknowledging the
differences among people.
C) Organizations can more effectively manage diversity by following practices
and procedures that are based on flexibility.
D) Any effort to treat everyone the same, without regard for their fundamental
human differences, will reduce problems.
E) Limiting communication among different ethnic groups is an effective way
of handling conflicts in a diverse organization.
c
1) _____ is the process of dealing with employees who are represented by a
union.
A) Labor relations
B) Public relations
C) Human relations
D) Operational management
E) Assembly-line management
a
1) A person who works for an organization on something other than a
permanent or fulltime basis is known as a(n)_____.
A) SCORE volunteer
B) union worker
C) contingent worker
D) knowledge worker
E) intrapreneur
c
1) Which of the following is a discussion process between a union and
management that focuses on agreeing to a written contract that will cover all
relevant aspects of their relationship?
A) Job evaluation
B) Collective bargaining
C) The grievance procedure
D) Certification
E) Arbitration
b
1) The means by which a labor agreement is enforced is the _____.
A) grievance procedure
B) union rights clause
C) management rights clause
D) union security clause
E) strike/lockout procedure
a
1) Executives who retire and then work as consultants are part of the _____
workforce.
A) temporary
B) emergent
C) task-oriented
D) job-specific
E) union
a
1) Top managers at Phoenix Inc. are all computer engineers and are highly
regarded by other companies. They are frequently approached by executive
search firms with information about openings at other companies. The
managers are examples of _____.
A) temporary workers
B) emergent workers
C) contingent employees
D) job-specific employees
E) knowledge workers
e
1) A category of temporary workers is:
A) independent contractors.
B) shareholders. C) intrapreneurs
. D) angel investors.
E) venture capitalists.
a
1) _____ is defined as the set of forces that cause people to behave in certain
ways.
A) Motivation
B) Management
C) Attribution
D) Personality
E) Contribution
a
_____ is defined as the set of forces that cause people to behave in certain
ways.
A) Motivation
B) Management
C) Attribution
D) Personality
E) Contribution
b
1) Madeline works at a local retail store. She feels that she is being underpaid
in spite of her job performance. She motivates herself to improve her
performance to get the due recognition she deserves. Madeline's motivation is
due to a _____.
A) need deficiency
B) negative reinforcement
C) low performance-to-outcome expectancy
D) dissatisfaction of physiological needs
E) need for belongingness
a
1) According to the motivation framework, after a worker notices an unfilled
need, the next step is:
A) choosing a behavior that satisfies the need.
B) determining future needs.
C) searching for ways to satisfy the need.
D) evaluating need satisfaction.
E) identifying a need deficiency.
c
1) Under which of the following circumstances will an employee feel a need
deficiency?
A) When she feels that her tasks are challenging
B) When she receives recognition for a job well done
C) When she feels she is underpaid
D) When she is motivated to perform a job
E) When she attains self-actualization
c
1) Which of the following perspectives on motivation concerns "what"
motivates people rather than "how" they are motivated?
A) Reinforcement
B) Process
C) Content
D) Equity
E) Expectancy
c
1) Which of the following factors would be included in Maslow's physiological
needs category?
A) Air
B) Job stability
C) Safety
D) Recognition
E) Self-image
a

1) According to Maslow's hierarchy of needs, once an individual has satisfied

his physiological needs, he turns his focus towards _____ needs.
A) survival needs
B) esteem
C) belongingness
D) security
E) self-actualization
d
1) Organizations provide adequate wages, comfortable temperatures,
restrooms, ventilation, etc. as a means to address the _____ needs of its
employees.
A) esteem
B) belongingness
C) self-actualization
D) security
E) physiological
e
1) According to Maslow's hierarchy, the need to have a safe physical and
emotional environment is a(n) _____ need.
A) esteem
B) physiological
C) psychological
D) security
E) social
d
1) When a manager tries to encourage social interaction among his
subordinates, he is trying to address their need for _____.
A) belongingness
B) esteem
C) security
D) physiological
E) self-actualization
a
1) According to Maslow's hierarchy, when a satisfaction of security needs is
achieved an individual is typically concerned with a need for _____.
A) self-actualization
B) recognition
C) physiology
D) belongingness
E) positive self-image
d
1) Martha is given a new cabin and a new job title as recognition for her
accomplishment over her years of service to the organization. She is satisfied
with the recognition and respect from her colleagues. This portrays that the
organization is addressing her _____ needs.
A) esteem
B) psychological
C) security
D) physiology
E) self-actualization
a
1) According to Maslow's hierarchy, _____ needs include the need that people
have for respect and recognition.
A) achievement
B) security
C) self-actualization
D) belongingness
E) esteem
e
1) _____ needs in Maslow's hierarchy involve realizing one's potential for
continued growth and individual development.
A) Esteem
B) Social
C) Self-actualization
D) Security
E) Physiological
c
1) Brenda, a senior engineer at Machineworks Inc., sets herself difficult goals
and assumes personal responsibility for the performance of her subordinates.
Brenda most likely has a high need for _____.
A) achievement
B) affiliation
C) esteem
D) security
E) potential
a

1) A construction worker injured on the job is on convalescent time-off for five

weeks. She has a desire to get back to work and achieve her goals more
effectively than she has done in the past. This portrays her need for _____.
A) esteem
B) power
C) affiliation
D) security
E) achievement
e
1) In expectancy theory, raises, promotions, stress and resentment are all
_____ of an individual's behaviors.
A) factors
B) motivations
C) reinforcements
D) outcomes
E) valences
d
1) Amelia believes that if she tries hard to eliminate distractions and
concentrate on her work, she will learn to do her job more efficiently. Amelia
has:
A) low effort-to-performance expectancy.
B) moderate performance-to-outcome expectancy.
C) low performance-to-outcome expectancy.
D) high effort-to-performance expectancy.
E) moderate effort-to-performance expectancy.
d
1) Neal works for the state of Vermont. He perceives that his union will protect
him from getting fired, but the only way he will get promoted is if the person
above him retires or dies. He has
A) low effort-to-performance expectancy, and low performance-to-outcome
expectancy.
B) low effort-to-performance expectancy, and high performance-to-outcome
expectancy.
C) high effort-to-performance expectancy, and low performance-to-outcome
expectancy.
D) high effort-to-performance expectancy, and high performance-to-outcome
expectancy.
E) zero valence.
a

1) A manager expends extra effort because she has been told that she will get
a $50,000 bonus if her team meets their quota. She also feels stress because
she has been informed that she will be put on probation if she does not get
her team to perform above last year's total. Which of the following does this
scenario illustrate?
A) Equity theory
B) Maslow's esteem needs
C) Two-factor theory
D) Performance-to-outcome expectancy
E) The Porter-Lawler extension
d
1) Which of the following motivational theories is based on the idea that
employees compare the treatment they receive relative to others' treatment in
order to determine if they are being treated fairly?
A) Expectancy theory
B) Reinforcement theory
C) Equity theory
D) Hierarchy of needs theory
E) Two-factor theory
c
1) Which of the following is a process perspective on motivation?
A) Maslow's need hierarchy
B) McClelland's work on need for power
C) McClelland's work on need for achievement
D) Two-factor theory
E) Equity theory
e
1) What is the most important idea for managers to remember from equity
theory?
A) People who feel underrewarded may try to decrease the inequity by
increasing their inputs.
B) Employees must receive equal rewards irrespective of their overall
performance.
C) For rewards to motivate employees, employees must perceive them as
being fair.
D) Employees must consider their inputs equal to the inputs of their
colleagues.
E) Employees must consider their outcomes equal to the outcomes of their
colleagues.
c
1) Ana is a police detective. She believes that she is just as good a detective
as her male counterparts. Because she is female, many of her counterparts
assume that she will type up their reports as well as her own. She has been
doing this typing for a while and is increasingly feeling underrewarded for her
efforts. In terms of _____, she will decrease her inputs by refusing to do
additional work and try to reduce the gap between work and rewards.
A) expectancy theory
B) reinforcement theory
C) equity theory
D) hierarchy of needs theory
E) two-factor theory
c
1) Brianna's employer has announced a goal of getting workers to live a
healthier lifestyle. Because of this, Brianna has improved the foods she eats
and is getting more physical activity. Which attribute of the expanded goal-
setting theory best portrays this example?
A) goal specificity
B) goal acceptance
C) goal satisfaction
D) goal congruity
E) goal difficulty
b
1) Tyler is the marketing manager at MarketAds Inc., and Emily is an account
manager reporting to him. Tyler instructs Emily to improve public opinion. The
goal that Emily was given lacks goal _____.
A) specificity
B) acceptance
C) conformity
D) congruity
E) difficulty
a
1) Workers at Windlock Works Inc. were instructed by their supervisor to
increase productivity to 350 percent in the next three months. The workers are
most likely to be challenged by goal _____.
A) specificity
B) acceptance
C) conformity
D) congruity
E) difficulty
e
1) Leo showed up late for a meeting. His boss ignored it. She was using
_____ as reinforcement.
A) avoidance
B) extinction
C) positive reinforcement
D) punishment
E) distortion
b
1) Jaime, who works at Minlog Inc., maintains punctuality to avoid a loss of
pay. Jaime's behavior is strengthened through _____.
A) avoidance
B) extinction
C) positive reinforcement
D) punishment
E) distortion
a
1) Justin is rewarded a significant pay raise for his contributions to the
organization. This motivates him to put in more hard work and better
performances. The organization has used _____ to strengthen his behavior.
A) Avoidance
B) Extinction
C) Positive reinforcement
D) Punishment
E) Distortion
c
1) Employees at GreenTech Inc. complete their schedules on time as every
hour they take in excess may lead to a corresponding loss of pay. Their
behaviors are strengthened through _____.
A) Avoidance
B) Extinction
C) Positive reinforcement
D) Punishment
E) Incentives
a
1) Monthly paychecks are examples of reinforcements provided at a _____
schedule.
A) Random
B) Fixed-interval
C) Fixed-ratio
D) Variable-ratio
E) Variable-interval
B
1) Which of the following reinforcement schedules offers a worker the least
incentive to do good work?
A) Fixed-interval
B) Fixed-ratio
C) Variable-interval
D) Variable-ratio
E) Continuous
A
1) Which of the following reinforcement methods can be used to weaken
behaviors?
A) Recognition
B) Avoidance
C) Extinction
D) Participation
E) Pay raises
C
1) Clara plays offensive pranks at her workplace, which were so far
encouraged by her colleagues. To make sure that she does not repeat such
behaviors, managers at the organization instruct her colleagues to ignore her
actions. The reinforcement method adopted by the organization is _____.
A) Recognition
B) Punishment
C) Avoidance
D) Extinction
E) Pay raises
D
1) Alberto complimented Daniel on his project updates two weeks in a row.
Then he waited a month to compliment him again. Not knowing when Alberto
will drop by for inspection, Daniel keeps his projects updated regularly. What
reinforcement schedule is he using?
A) Fixed-interval
B) Fixed-ratio
C) Variable-interval
D) Variable-ratio
E) Fixed-variable
C

1) A popular retail outlet provides its salespersons a small bonus for every
sale that exceeds a $50 bill amount. The type of reinforcement used here is
_____.
A) Fixed-ratio
B) Fixed-interval
C) Variable-interval
D) Variable-ratio
E) Fixed-variable
A
1) When a subordinate has outstanding performance and his or her supervisor
publicly praises it, the supervisor is using:
A) positive reinforcement.
B) punishment.
C) avoidance.
D) extinction.
E) an intrinsic reward.
A
1) Every alternate day, quality control inspectors at McHeinz Inc. randomly
select items from an assembly line for inspection, and compliment the workers
for every product that meets their expectations on quality. However, they vary
the number of items they inspect each time.This motivates the employees to
put in more effort to ensure that all the items are of the required quality. What
reinforcement schedule are the quality control inspectors using?
A) Variable-interval
B) Variable-fixed
C) Fixed-ratio
D) Fixed-interval
E) Variable-ratio
E
1) A manager who provides reinforcement on a periodic basis, regardless of
behavior, is using a _____ schedule.
A) variable-interval
B) variable-fixed
C) fixed-ratio
D) fixed-interval
E) variable-ratio
D

1) If one wants to maintain an employee's behavior at a high level with

variations in the level of behavior irrespective of the time interval, which of the
following schedules of reinforcement would be most successful?
A) Fixed-interval
B) Fixed-ratio
C) Variable-interval
D) Variable-ratio
E) Continuous
D
1) A manager who provides reinforcement on the basis of a particular number
of behaviors, rather than on the basis of time is using a(n) _____ schedule.
A) fixed-ratio
B) fixed-interval
C) variable-interval
D) variable-ratio
E) interval-ratio
a

1) Which of the following programs applies the concepts of reinforcement

theory?
A) Modified workweek
B) Work redesign
C) Organizational behavior modification
D) Attribution theory
E) Two-factor theory
C
1) _____ represents an important method that managers can use to enhance
employee motivation.
A) Punishment
B) Extinction
C) Absenteeism
D) Turnover
E) Empowerment
E
1) Windmere allows its administrative employees to arrive any time between
7:00 a.m. and 9:00 a.m., and to leave any time between 4:00 p.m. and 6:00
p.m., as long as they work an eight-hour day. This arrangement is known as
_____.
A) empowerment
B) compressed work schedule
C) a nine-eighty schedule
D) flextime
E) traditional schedule
D
1) Cheri and Aaron both wanted to work part-time, and they found a lawyer
who was willing to split one full-time paralegal job between the two of them so
that Cheri works mornings and Aaron works afternoons. This arrangement is
known as _____
. A) flextime
B) participation
C) OB Mod
D) job sharing
E) reinforcement
D
1) Jessica is required to follow a forty-hour work schedule from 9:00 in the
morning and ends at 5:00 each day, every week. However, she has the
freedom to take a day off by working two extra hours each day. This reflects a
_____.
A) variable work schedule
B) flexible work schedule
C) telecommuting arrangement
D) job sharing arrangement
E) traditional work schedule
A
1) Rewards tied specifically to _____ have the greatest impact on enhancing
motivation.
A) outcome
B) performance
C) effort
D) ability
E) skill
B
1) Aside from motivational strategies such as the content perspective, process
perspectives, and reinforcement perspectives, an organization's _____ is its
most basic tool for managing employee motivation.
A) strategic plan
B) vision statement
C) objective
D) reward system
E) goal
D
1) Allowing employees to spend part of their time working offsite, usually at
home, is called _____.
A) empowerment
B) compressed work schedule
C) flexitime
D) job sharing
E) telecommuting
E
1) Elena is a sales representative. She gets paid a base salary plus a
percentage of sales attained as a commission for a period of time. Her pay is
an example of _____.
A) merit pay plan
B) scanlon plan
C) gainsharing program
D) nonmonetary incentives
E) incentive pay plan
E
1) A criticism against executive compensation in recent years is that:
A) organizations are getting increasingly innovative in their incentive
programs.
B) executive compensation is based on the performance of each and every
employee in an organization.
C) there seems to be no relationship between organization's performance and
executives' compensations.
D) executives are earning a meager amount compared to the typical worker in
an organization
E) the gap between the earnings of a CEO and the earnings of a typical
worker is significantly less.
C
1) Jessica Weller, a senior manager at DigWell Inc., differentiates the annual
pay raises provided to her subordinates based on their individual contributions
to the organization. The type of reward system used by Jessica is an example
of _____.
A) fixed-rate pay
B) profit sharing
C) gainsharing
D) scanlon plan
E) merit pay
E
1) A manager gives her employees a variable bonus every month based on
resulting cost savings every time they exceed their sales quota. This type of
incentive pay is known as _____.
A) fixed-rate pay
B) profit sharing
C) gainsharing
D) lump-sum bonus
E) pay-for-knowledge
C
1) _____ is an intangible determinant of individual performance.
A) Motivation
B) Management
C) Attribution
D) Personality
E) Contribution
A
1) Assurance on ____ can satisfy the security needs of an employee in the
workplace.
A) comfortable work environment
B) positive self-image
C) adequate wages
D) job continuity
E) recognition
D
1) _____ needs are at the top of Maslow's hierarchy of needs.
A) Security
B) Self-actualization
C) Physiological
D) Esteem
E) Belongingness
B
1) According to Maslow, an individual is motivated first and foremost to satisfy
_____ needs.
A) security
B) self-actualization
C) physiological
D) esteem
E) belongingness
C

1) According to the two-factor theory, which of the following is a hygiene factor

that influences an employee's satisfaction or dissatisfaction?
A) Achievement
B) Recognition
C) Working conditions
D) Advancement and growth
E) The work itself
C
1) Brianne, a graduate engineer, prefers to work in a job that provides her the
opportunity to interact with people and make new friends on the job. Brianne
has a need for _____.
A) achievement
B) affiliation
C) power
D) esteem
E) security
B
1) _____ focuses on why people choose certain behavioral options to satisfy
their needs and how they evaluate their satisfaction after they have attained
those goals.
A) Maslow's hierarchy
B) Two-factor theory
C) Expectancy theory
D) Reinforcement theory
E) Variable work schedule
c
1) A basic assumption on which the expectancy theory is based on is that:
A) behavior is determined by a combination of forces in the individual and in
the environment.
B) people do not make decisions about their own behaviors in organizations.
C) different people have the same type of needs, desires, and goals.
D) people make choices based on the extent to which a given behavior will
lead to undesired outcomes.
E) people are motivated to seek social equity in the rewards they achieve for
performance.
B
1) A value associated with the outcomes of a performance is called its _____.
A) behavior
B) valence
C) need
D) hygiene factor
E) commitment
B
1) _____ are consequences of behaviors in an organizational setting, usually
rewards.
A) Performance
B) Valences
C) Outcomes
D) Need deficiencies
E) Commitments
B
1) According to the expectancy theory, which of the following conditions must
be met for motivated behavior to occur?
A) Effort-to-performance expectancy must be greater than zero
B) Performance-to-outcome expectancy must be less than zero
C) Sum of the valencies for an outcome must be less than zero
D) The individual must believe that effort and performance are unrelated
E) Every outcome must have a negative valence
A
1) _____ is the process of enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of responsibility and
authority.
A) Participation
B) Empowerment
C) Commitment
D) Reinforcement
E) Enrichment
b
1) _____ is the process of giving employees a voice in making decisions
about their own work.
A) Participation
B) Empowerment
C) Commitment
D) Reinforcement
E) Enrichment
A
1) Working a full forty-hour week in fewer than the traditional five days is
called as _____.
A) job sharing
B) flexitime
C) nine-eighty schedule
D) compressed work schedule
E) flexible work schedule
d
1) A disadvantage of using compressed work schedules is that:
A) some individuals develop resentment as they feel constrained by their job
schedules.
B) it makes it difficult for employees to attend routine personal businesses.
C) employees put too much effort in a single day, and tend to perform at lower
levels.
D) employees have to work additional hours all the five days of a week.
E) it gives employees more personal control over the times they work.
D
1) An arrangement where an employee works a traditional schedule one week
and a compressed schedule the next, getting every other Friday off is called
as _____.
A) job sharing
B) flextime
C) nine-eighty schedule
D) compressed work schedule
E) traditional work schedule
C
1) Work schedules that allow employees to select, within broad parameters,
the hours they work is called _____.
A) job sharing
B) flextime
C) nine-eighty schedule
D) compressed work schedule
E) traditional work schedule
B
1) An organizational _____ is the formal and informal mechanisms by which
employee performance is defined, evaluated, and awarded.
A) reinforcement policies
B) reward system
C) work schedule
D) outcome
E) valence
B

1) _____ refers to pay awarded to employees on the basis of the relative

value of their contributions to the organization, which is a performance-based
reward arrangement for individuals.
A) Scanlon plan
B) Piece-rate incentives
C) Incentive pay
D) Merit pay
E) Gainsharing
D
1) _____ is a reward system wherein an organization pays an employee a
certain amount of money for every unit he or she produces.
A) Scanlon plan
B) Piece-rate incentive plan
C) Incentive pay
D) Merit pay plan
E) Gainsharing
B
1) Which of the following is true about individual incentive plans?
A) They are focused to recognize efforts rather than individual performances.
B) They are used to provide individual performances with non monetary
rewards.
C) They are most likely to be used when performance can be subjectively
assessed.
D) They are focused at increasing a person's base salary at the end of every
year.
E) They are used to reward individual performance on a real-time basis.
E
1) A major advantage of incentives relative to merit systems is that:
A) incentives do not accumulate by becoming part of an individual's salary.
B) incentives are provided only one time, based on that level of performance.
C) individuals receive the same amount or larger irrespective of their
performances over the years.
D) the base salary of an individual is unaffected by lower incentives.
E) these plans remain static and cannot be modified by an organization.
A
1) Which of the following is a group based incentive reward system
A) Merit pay
B) Gainsharing
C) Piece-rate incentive plan
D) Annual pay raise
E) Sales commission
B
1) _____ is a group based incentive reward system where the distribution of
gains is tilted heavily toward the employees.
A) Merit pay
B) Gainsharing
C) Piece-rate incentive plan
D) Scanlon plan
E) Sales commission
D
1) _____ argues that behavior that results in rewarding consequences is likely
to be repeated, whereas behavior that results in punishing consequences is
less likely to be repeated
A) Equity theory
B) Reinforcement theory
C) Two-factor theory
D) Maslow's hierarchy
E) Expectancy theory
B
1) _____ is used by managers to weaken undesired behaviors by creating
unpleasant consequences.
A) Recognition
B) Extinction
C) Avoidance
D) Punishment
E) Incentive
D
1) ____ is a counterproductive side affect of using punishment as a
reinforcement method.
A) Commitment
B) Motivation
C) Resentment
D) Participation
E) Empowerment
C
1) The _____ is the most powerful schedule in terms of maintaining desired
behavior.
A) variable-interval schedule
B) fixed-ratio schedule
C) variable-ratio schedule
D) fixed-interval schedule
E) nine-eighty schedule
C
1) The _____ varies the number of behaviors needed for each reinforcement.
A) variable-ratio schedule
B) fixed-ratio schedule
C) variable-interval schedule
D) fixed-interval schedule
E) nine-eighty schedule
A
1) A variable-ratio schedule is difficult to use for formal rewards such as pay
because:
A) it typically weakens the behavior that has been previously rewarded.
B) is the least powerful schedule in terms of maintaining the desired
behaviors.
C) it has a fixed number of desires to needed for each reinforcement.
D) it does not motivate the employee to increase the frequency of the desired
behavior.
E) it would be complicated to keep track of who was rewarded when.
E
1) As a process, leadership can be defined as:
A) the practice of empowering employees to participate in organizational
decision making.
B) the set of characteristics attributed to individuals who are perceived to be
leaders.
C) the use of noncoercive influence to shape an organization's goals.
D) the ability to assess business process performance.
E) the ability to adjust to and understand the changes in a workplace.
C
1) As a property, leadership can be best defined as:
A) the practice of empowering employees to participate in organizational
decision making.
B) a set of belief that supports the practice of interpersonal risk taking in
teams.
C) the ability to shape employee behavior without using force.
D) the ability to adjust to and understand changes in the workplace.
E) a set of characteristics found in people who can influence the behavior of
others.
E

1) Which of the following is an example of a good leader in the context of

business?
A) A person who relies on force to lead people
B) A person who disobeys authority
C) A person who is a dictator
D) A person who can influence others
E) A person who is efficient and does not delegate his or her duties
D
1) Christine is in charge of managing the marketing team at her office. To be
an efficient leader, she should:
A) affect the behavior of others only through coercion.
B) use her power only in ways that are ethical.
C) defy all forms of authority.
D) engage in freeriding.
E) encourage instances of groupthink.
B
1) When leaders decide to either give salary increases to their employees or
withhold any salary increases, which of the following types of power do they
exercise?
A) Coercive
B) Reward
C) Informal
D) Expert
E) Referent
B
1) Karl is fond of saying, "Remember, half the doctors you see graduated in
the bottom of their class." Karl is attempting to limit the _____ power of
physicians
A) expert
B) legitimate
C) referent
D) reward
E) coercive
A
1) Bullies in the workplace use sarcasm, humiliation, and fear to influence
others. This is a form of _____ power.
A) expert
B) legitimate
C) referent
D) reward
E) coercive
E
1) Which of the following is NOT a possible reward for a manager to use who
wants to exercise effective reward power with his or her subordinates?
A) A cash bonus
B) A recommendation for promotion
C) An interesting job task
D) A salary increase
E) A standard reward for everyone
E
1) The more a manager uses coercive power, the more likely he is to
encourage _____.
A. sympathy.
B. good will.
C. resentment.
D. cordiality.
E. tolerance.
C
1) A supervisor's frequent use of coercion involves the:
A) use of distortion.
B) use of extinction.
C) use of positive reinforcement.
D) loss of leadership.
E) loss of persuasion.
D
1) One of the reasons Steve Jobs was very successful at Apple was his
charisma. From this observation, we can infer that he had _____ power.
A) referent
B) reward
C) legitimate
D) coercive
E) expert
A
1) When an organization promotes someone, it sends a signal to everyone
that the person is competent. This gives the person _____ power
A) legitimate
B) technological
C) reward
D) referent
E) coercive
A
1) A news producer has the authority to choose which reporter will get to
cover important news items and which reporter will cover trivial news items.
The news producer uses this authority to recognize the hard work of reporters.
Which of the following types of power is the producer using in this case?
A) Referent
B) Expert
C) Reward
D) Coercive
E) Informal
C
1) Bill Lennox is a good man. He demonstrates high moral standards with
every decision he takes and inspires others to follow suit. From the given
information, we can say that he has _____ power.
A) legitimate
B) technological
C) expert
D) referent
E) coercive
D
1) The first organized approach to studying leadership focused on
A) leadership behavior
B) leadership traits.
C) rewards expected.
D) situational favorableness.
E) leader-member relations.
B
1) Which of the following approaches to identifying a leader is a person
using if he votes for a politician based on his communication skills,
intelligence, appearance, and assertiveness?
A) LPC theory
B) Vroom's decision tree approach
C) Path-goal theory
D) Trait approach
E) Fiedler's contingency theory
D

1) The behavior that is called "job-centered leader behavior" in the Michigan

studies is similar to the behavior called _____ behavior in the Ohio State
studies.
A) initiating-structure
B) consideration
C) concern for production
D) concern for people
E) employee-centered leader
A
1) Abbott, a shoe manufacturing company, strives to keep its workers
satisfied. As many of them are working mothers, the company allows flexible
time shifts. CEO Miles White says, "One of the most important things we can
do for working families today is to help them lead healthier lives." According to
the Michigan studies, White is demonstrating _____ behavior.
D) employee-centered leader
D
1) In the Ohio State studies, employees of supervisors who ranked high on
initiating structure:
A) reflected low absence rates.
B) were high performers.
C) expressed high levels of satisfaction.
D) had low productivity.
E) were confused about the leader-subordinate role.
B
1) At the opposite ends of the single continuum used by the Michigan studies
are the leader's:
A) initiating-structure behavior and consideration behavior.
B) job-centered leader behavior and employee-centered leader behavior.
C) concern for production and concern for people.
D) task-oriented behavior and relationship-oriented behavior.
E) traits reflecting the hierarchical theory x and traits reflecting the innovative
theory y.
B
1) The CEO at Green Inc. has established that employees at the workplace
should adhere to the vertical communication system. She has established
fixed work flow systems and strictly monitors these processes. The steps
taken by the CEO at Green Inc. reflect the _____ behavior of leaders
suggested by the Ohio State studies.
A) consideration
B) initiating structure
C) employee-centered
D) job-centered
E) authoritative
B
1) In the Managerial Grid, the ideal manager behavior is represented by a 9,9
"team" manager, who has high concern for both:
A) structure and people.
B) people and production.
C) leadership and production.
D) finances and operations.
E) resources and products.
B
1) Which of the following is a generic approach to leadership?
A) The least-preferred coworker model
B) The path-goal model
C) Vroom's decision tree approach
D) The Ohio state studies
E) The leader-member exchange approach
D
1) What is the basic assumption of situational approaches to leadership?
A) Increasing worker job satisfaction through considerate leadership will get
the best results.
B) Initiating structure for employees so they know exactly what needs to be
done will be most effective.
C) The appropriate leader style will vary from one set of circumstances to
another.
D) Effective leaders can be identified by certain traits.
E) The 1,1 manager exhibits minimal concern for both production and people.
C
1) Which of the following is a situational leadership model?
A) Trait approach
B) Michigan studies
C) Ohio State studies
D) Leadership Grid
E) Path-goal theory
D
1) How did Fiedler measure leadership styles?
D) By means of a questionnaire called the least-preferred coworker measure
D

1) According to Fiedler, a task is structured when it is:

A) routine, difficult to understand, and unambiguous.
B) routine, easy to understand, and ambiguous.
C) irregular, difficult to understand, and ambiguous.
D) routine, easy to understand, and unambiguous.
E) irregular, difficult to understand, and unambiguous.
D
1) In Fiedler's model, a high least-preferred coworker score is said to reflect a
_____ orientation.
A) relationship
B) task
C) structure
D) communication
E) schedule
A
1) In Fiedler's model, favorable situations are those that have:
B) good leader-member relations, highly structured tasks, and strong leader
position-power.
B
1) Daniel has been appointed leader of a project task force. He has legitimate
power in this position. The task is unstructured. Also, Daniel has weak leader-
member relations. According to Fiedler's LPC theory, what type of leadership
style is appropriate in this situation?
A) Task-oriented
B) Relationship-oriented
C) Participative
D) Transformational leadership
E) Concern for people
A
1) Mihee, the chief nurse in a hospital, sets challenging goals for her
subordinates because she has confidence in her fellow nurses. Based on the
path-goal theory, what kind of leader behavior is Mihee exhibiting?
A) Task-oriented
B) Employee-centered
C) Achievement-oriented
D) Relationship-oriented
E) Bureaucratic
C

1) Vernique, a manager, consults with her subordinates and encourages their

involvement in the decision making process. Based on the path-goal theory,
what kind of leader behavior is Vernique exhibiting?
A) Job-oriented
B) Employee-centered
C) Achievement-oriented
D) Participative
E) Bureaucrat
D
1) Which of the following leadership models is a direct extension of the
expectancy theory of motivation?
A) Vroom's decision tree approach
B) Fiedler's contingency
C) Vertical-dyad linkage
D) Path-goal
E) Substitutes for leadership
D
1) In contrast to Fiedler's theory, path-goal theory assumes that leaders:
A) have little tolerance for their least-preferred coworker.
B) can change their leadership style to fit the demands of a particular
situation.
C) should maintain a consistent leadership style to avoid confusing
subordinates.
D) must find a fit between their leader styles and the situation.
E) should always maintain a participative leader style.
B
1) Don Draper is responsible for managing the creative section of his ad
agency. In one-to-one sessions, he asks each member of his group to give
ideas for the ad campaign to promote a new product. He considers all the
ideas and decides to go ahead with the best among them. Which decision-
making style is best reflected in the given scenario?
A) Consult individual
B) Facilitate
C) Delegate
D) Participate
E) Decide
A

1) Which of the following is a task characteristic that may neutralize or

substitute for leadership?
A) Collective hysteria
B) Conformity
C) Intrinsic satisfaction
D) Bystander apathy
E) Groupthink
C
1) Demonstrating personal excitement or passion about something is part of
_____ leadership.
A) charismatic
B) entrepreneurial
C) symbolic
D) integrative
E) participative
A
1) The concept of charismatic leadership is most closely related to:
A) the Vroom-Yetton-Jago approach.
B) the trait approach.
C) Fiedler's contingency theory.
D) substitutes for leadership.
E) path-goal theory.
B
1) Carl, the manager at a publishing house, heads the editorial team. Peggy,
one of his subordinates belongs to his in-group. This information would be
significant for the proceedings of the:
A) Vroom's decision tree approach.
B) path-goal theory.
C) leader-member exchange model.
D) least-preferred coworker theory.
E) leadership grid.
C
1) _____ is the style of leadership that goes beyond ordinary expectations by
transmitting a sense of mission, stimulating learning experiences, and
inspiring new ways of thinking.
A) Directive leadership
B) Participative leadership
C) Transformational leadership
D) Supportive leadership
E) Task-oriented leadership
C
1) Which of the following is a defining characteristic of strategic leaders?
A) They possess interpersonal attraction that inspires support and
acceptance.
B) They understand the organization and recognize its superior alignment with
the environment.
C) They transmit a sense of mission, stimulate learning experiences, and
inspire new ways of thinking.
D) They understand international differences and diversity-based differences
within one culture.
E) They encourage others by supporting them, empathizing with them, and
expressing confidence in them.
B
1) Why has the importance of cross-cultural leadership increased in today's
times?
A) Because of improving profit margins
B) Because of office politics
C) Because of increasing unethical practices
D) Because of the increasing environmental concerns
E) Because of the improving diversity ratios in workplaces
E
1) Which of the following is a prerequisite for effective leadership?
A) Low tolerance toward diversity
B) Belief in the dictatorship style of leadership
C) High levels of coercive powers
D) Belief in ethnocentrism
E) High standards of ethical conduct
E
1) A manager tells a subordinate that he will not recommend her for promotion
unless she supports his proposal in an upcoming sales meeting. Which type of
political behavior is reflected in the given scenario?
A) Creation of an obligation
B) Coercion
C) Initiating structure
D) Persuasion
E) Assault
B

1) Carolyn, a manager, discusses and reasons with the Board of Directors of

her company until they agree to let her try her new strategic plan for a trial
period. Carolyn is using _____ in the given situation.
A) an obligation
B) persuasion
C) coercion
D) inducement
E) passive aggression
B
1) After oil prices hit record highs and the oil companies made record profits,
some of the oil company's CEOs appeared on the Today show to explain their
business to consumers. This is an example of:
A) creation of an obligation.
B) impression management.
C) initiating structure.
D) persuasion.
E) inducement.
B
1) Valencia, an employee at Y Inc., attempts to bring all her contributions to
successful projects to the notice of her manager. Her intention is to build a
good image in the eyes of the management. What is best exemplified by
Valencia's behavior?
A) Creation of an obligation
B) Impression management
C) Coercion
D) Persuasion
E) Inducement
B
1) Which of the following is the most probable motive for a manager to engage
in political behavior?
A) To avoid covert activities
B) To acquire power
C) To promote clear communication
D) To promote transparency
E) To avoid charges of political motivation
B
1) What measures should managers take to prevent political behavior from
doing excessive damage?
A) They should refrain from providing subordinates with autonomy.
B) They should provide challenges to subordinates.
C) They should use their coercive powers.
D) They should reduce diversity in the workplace.
E) They should encourage ethnocentrism.
B
1) Which of the following statements is true of political behavior?
A) Political behavior is always a manifestation of good intent.
B) Managers should cover up disagreements so that subordinates will have
less opportunity for political behavior.
C) Even if a manager's actions are not politically motivated, others may
assume that they are.
D) By providing subordinates with autonomy, managers are likely to promote
political behavior.
E) Managers should use power if they want to avoid charges of political
motivation.
C
1) According to the Managerial Grid, the _____ manager is highly concerned
about production but exhibits little concern for people.
A) 9,1
B) 0,1
C) 1,9
D) 0,1
E) 9,0
A
1) The Ohio State researchers found that employees of supervisors who
ranked high on _____ were high performers but expressed low levels of
satisfaction and had a higher absence rate.
A) concern for people
B) consideration
C) initiating structure
D) employee-centered leader behavior
E) task-oriented leadership behavior
C
1) _____ is the part of the Managerial Grid that deals with the job and task
aspects of leader behavior.
A) Employee-centered leader behavior
B) Initiating structure
C) Task-oriented leadership behavior
D) Concern for people
E) Concern for production
E
1) Based on the Michigan studies, Rensis Likert argued that the _____
behavior generally tends to be more effective.
A) initiating structure
B) job-centered leader
C) employee-centered leader
D) considerate
E) authoritative
C
1) According to the Michigan studies, managers using _____ behavior are
interested in developing a cohesive work group and ensuring that employees
are satisfied with their jobs.
A) consideration
B) initiating structure
C) job-centered leader
D) employee-centered leader
E) authoritative
D
1) When followers react favorably because they identify in some way with a
leader, the leader is said to possess _____ power.
A) reward
B) expert
C) legitimate
D) coercive
E) referent
E
1) Verbal reprimands, written reprimands, disciplinary layoffs, fines, demotion,
and termination are examples of _____ power possessed by managers.
A) coercive
B) reward
C) legitimate
D) expert
E) referent
A
1) The more important the information and the fewer the people who have
access to it, the greater is the degree of _____ power possessed by any one
individual.
A) legitimate
B) reward
C) referent
D) expert
E) coercive
D
1) A secretary who knows how to unravel bureaucratic red tape has _____
power over anyone who needs that information.
A) reward
B) referent
C) legitimate
D) expert
E) coercive
D
1) A manager expressing praise, gratitude, or recognition best exemplifies
_____ power.
A) informal
B) reward
C) referent
D) expert
E) coercive
b
1) A manager can assign tasks to a subordinate, and a subordinate who
refuses to do them can be reprimanded or even fired. This is an example of
_____ power.
A) legitimate
B) informal
C) referent
D) expert
E) coercive
A
1) _____ power is power granted through the organizational hierarchy. A)
Expert
B) Referent
C) Coercive
D) Reward
E) Legitimate
E
1) ____ is the ability to affect the behavior of others.
A) Power
B) Discipline
C) Function
D) Potential
E) Virtue
A
1) _____ is necessary to create change, while management is necessary to
achieve orderly results.
A) Dominion
B) Leadership
C) Legitimacy
D) Administration
E) Control
B
1) _____ describes activities carried out for the specific purpose of acquiring,
developing, and using power and other resources to obtain one's preferred
outcomes.
A) Group cognition
B) Workplace diversity
C) Organizational culture
D) Political behavior
E) Collective intelligence
D
1) In the context of the charismatic leadership theory, proposed by Robert
House, charismatic leaders are likely to:
A) rate low on self-confidence.
B) avoid influencing people.
C) have a firm conviction in their beliefs.
D) have an external locus of control.
E) be dependent on others.
C
1) In the context of the Vroom's decision tree approach, when managers
present a problem to their group at a meeting, define the problem and its
boundaries, and then guide group member discussions as they make the
decision, they follow the _____ decision-making style.
A) delegate
B) consult group
C) facilitate
D) consult individually
E) decide
C
1) In the context of the Vroom's decision tree approach, when a manager
allows his group to define for itself the exact nature and parameters of a
problem and then to develop a solution, they follow the _____ decision-
making style.
A) facilitate
B) consult individually
C) decide
D) delegate
E) consult group
D
1) According to the path-goal theory, a person with an internal locus of control
is most likely to prefer _____ leadership.
A) task-oriented
B) achievement-oriented
C) directive
D) supportive
E) participative
E
1) According to the path-goal theory, if people perceive that they are lacking in
abilities, they are most likely to prefer _____ to help them understand path-
goal relationships better.
B) directive leadership
B
1) _____ behavior, identified by the path-goal theory, primarily involves being
friendly and approachable, showing concern for subordinate welfare, and
treating members as equals.
A) Directive leader
B) Task-oriented leader
C) Achievement-oriented leader
D) Participative leader
E) Supportive leader
E
1) A supervisor exhibiting _____ behavior, identified by the path-goal theory,
is most likely to let subordinates know what is expected of them, gives
guidance and direction, and schedules work.
A) participative leader
B) supportive leader
C) directive leader
D) achievement-oriented leader
E) Task-oriented leader
C

1) _____ leader behavior, identified by the path-goal theory, primarily involves

setting challenging goals, expecting subordinates to perform at high levels,
encouraging subordinates, and showing confidence in subordinates' abilities.
A) Relationship-oriented
B) Achievement-oriented
C) Directive
D) Participative
E) Supportive
B
1) _____ is a theory of leadership which suggests that the primary functions of
a leader are to make valued or desired rewards available in the workplace and
to clarify for the subordinate the kinds of behavior that will lead to those
rewards.
A) Path-goal theory
B) Leadership trait approach
C) Least-preferred coworker theory
D) Strategic leadership approach
E) Leader-member exchange theory
A
1) According to Fiedler, _____ is the degree to which the group's task is well
defined.
A) task thread
B) task stream
C) task orientation
D) task structure
E) task parallel
D
1) According to Fiedler, the key situational factor of leadership is the _____
from the leader's point of view.
A) cause of the situation
B) importance of establishing formal lines of communication
C) favorableness of the situation
D) overall objective of the situation
E) importance of an employee-centered environment
C
1) Sam, the CEO of a company, has the power to take decisions related to
resource allocations. His power is mainly derived from his position in the
company. Which power is best demonstrated in the given scenario?
A) Coercive
B) Reward
C) Legitimate
D) Expert
E) Referent.
C
1. The report issued about a major packaging defect showed a culture at an
organization that did not listen when small safety issues were raised. Each
issue by itself might not have caused the flaw. This example illustrates:
the need to understand organizational complexity.
B) that changing conditions are influenced by innovation
C) the need for control in order to reduce the accumulation of errors.
D) the way that control helps organizations respond to changing standards.
E) the way that organizations cope with multiple control standards.
C
1. Which of the following is true of organizational control?
A)Control always results in higher costs for an organization.
B) Sales and marketing forecasting is a part of financial control
. C) Control can help an organization adapt to environmental change.
D) Control systems increase organizational complexity.
E) Public relations is a part of human resources control.
C
1. When large firms merge, the results are often initially disappointing due to
control systems trying to cope with a(n) _____.
A) rise in error accumulation
B) increase in organizational complexity
C) lack of environmental change
D) increase in costs
E) reduction in output
B
1. In organizations, sales forecasting, economic forecasting, and
environmental analysis are examples of the control of _____ resources.
A) physical
B) human
C) information
D) financial
E) inventory
C
1. Performance appraisals are part of _____ control.
A) physical
B) human resources
C) information
D) financial
E) inventory
B
1. Google partnered with Nielsen Co. to poll users about ads on Google+.
Nielsen then packaged the information for advertisers. This was a response to
advertiser complaints about the effectiveness of ads on the social network.
This indicates that Google is placing an emphasis on _____ controls.
A) operations
B) development
C) strategic
D) financial
E) structural
E
1. Quality control is a type of _____ control.
A) physical
B) human
C) operations
D) financial
E) structural
C
1. The control of _____ affects all the other resources in an organization.
A) physical resources
B) human resources
C) financial resources
D) information resources
E) inventory resources
C
1. An organization's attempt to control the behavior of their employees by
directing them toward higher performance is an example of control of _____
resources.
A) physical
B) financial
C) human
D) information
E) inventory
C
1. An organization shifts its budget from a few, large projects to accommodate
a number of smaller projects every year. It also decentralizes power and gives
additional responsibilities to individual project managers. This is an example of
the use of _____ control.
A) physical
B) information
C) structural
D) financial
E) screening
C
1. Monitoring receivables to make sure customers are paying their bills on
time is an example of _____ control.
A) operations
B) strategic
C) structural
D) financial
E) physical
D
1. Monitoring the administrative ratio to make sure staff expenses do not
become excessive is an example of _____ control.
A) postaction
B) strategic
C) structural
D) operations
E) information
C
1. Ensuring that receivables are collected in a timely manner is part of _____
control.
A) physical
B) strategic
C) information
D) financial
E) structural
D
1. The first step in the control process is:
A) modifying control standards.
B) comparing performance against standards
C) measuring performance.
D) establishing control standards.
E) determining the need for corrective action.
D

1. In the control process, which of the following steps follows the

measurement of performance?
A) Considering corrective action
B) Comparing performance against standards
C) Establishing standards
D) Developing effective performance measures
E) Setting standards consistent with organizational goals
b
1. The final step in the control process is:
A) establishing standards.
B) expressing standards in measurable terms.
C) measuring performance.
D) comparing performance against standards.
E) considering corrective action.
E
1. Following the accidental release of a batch of phones that failed screening
control, a manufacturer of mobile phones replaces all such phones at no cost
to the user-even taking care of shipping and delivery. Which step in the control
process does this example represent?
A) Taking corrective action
B) Measuring performance
C) Comparison of performance to standards
D) Setting performance standards
A
1. Which of the following is a form of operations control?
A) Financial control
B) Screening control
C) Strategic control
D) Structural control
E) Budgetary control
B
1. A company that carefully evaluates job applicants is using _____ control.
A) screening
B) cybernetic
C) postaction
D) preliminary
E) information
D

1. A manufacturer of health foods ensures that at least 90 percent of all its raw
materials is grown organically. This is an example of _____ control.
A) preliminary
B) postaction
C) feedback
D) screening
E) concurrent
A
1. Everyone working or volunteering for Girl Scouts goes through a
background check before they can work with girls or handle money. This is an
example of:
A) screening control.
B) preliminary control.
C) postaction control.
D) information control.
E) structural control.
B
1. _____ control attempts to monitor the quality or quantity of resources before
they enter an organization.
A) Structural
B) Postaction
C) Preliminary
D) Screening
E) Financial
C
1. Inspection reports are used to monitor the quality of raw materials delivered
to manufacturers. This is an example of _____ control.
A) financial
B) structural
C) preliminary
D) screening
E) postaction
C
1. A policy think tank requires all candidates applying for the position of vice-
president to have a minimum of 10 years of experience in governmental
organizations, international business, or multinational non-profits. This is an
example of _____ operations control.
A) preliminary
B) screening
C) structural
D) postaction
E) decentralized
A
1. A publisher of children's books only uses recycled paper for all its products.
This is an example of _____ operations control.
A) preliminary
B) screening
C) structural
D) postaction
E) decentralized
A
1. Which of the following types of operations control relies heavily on feedback
processes?
A) Strategic control
B) Financial control
C) Postaction control
D) Preliminary control
E) Screening control
E
1. _____ controls are an effective way to catch problems early in the
mtransformation process.
A) Postaction
B) Structural
C) Screening
D) Strategic
E) Financial
C
1. Which of the following is true of screening control?
A) It takes place during the transformation process.
B) It involves interviewing potential employees.
C) It is the same as preliminary control.
D) It is present only in organizations with bureaucratic control.
E) It is a part of structural control.
A
1. Before submitting a final policy memo, analysts may modify certain
recommendations based on feedback from experts and the general public.
This is an example of _____ control.
A) preliminary
B) postaction
C) screening
D) financial
E) structural
C
1. _____ control is the form of operations control that tends to be used most
often.
A) Human resources
B) Financial
C) Screening
D) Postaction
E) Preliminary
C
1. At a high school, final examinations are held online. During the
examination, the difficulty level of questions assigned to students is modified
based on how well individual students perform. This is an example of _____
operations control.
A) preliminary
B) screening
C) structural
D) postaction
E) decentralized
B
1. Postaction control is applied to _____.
A) resources
B) transformation processes
C) subsystems
D) controllers
E) outputs
E
1. _____ control provides a basis for rewarding employees.
A) Preliminary
B) Strategic
C) Postaction
D) Structural
E) Screening
C
1. Intertek's product quality inspections help protect brand reputations by
minimizing defective merchandise, customer complaints, non-compliant
products, and late shipments. This is an example of _____ control.
A) preliminary
B) postaction
C) screening
D) financial
E) structural
B
1. Which of the following types of control is used for resources such as
retained earnings?
A) Financial control
B) Structural control
C) Operating control
D) Interim control
E) Nonmonetary control
A
1. Hermes is a taxi service that asks customers to fill out an online feedback
form once their ride is complete. Hermes is making use of _____ operations
control.
A) preliminary
B) screening
C) structural
D) postaction
E) decentralized
D
1. A publishing firm will use a(n) _____ budget to forecast and plan the
demand for young adult books in Southeast Asia in the coming year.
A) labor
B) capital expenditures
C) operating
D) balance sheet
E) space
C
1. A state university develops a budget that shows its projected income from
sources that include government funding, tuition fees, alumni contributions,
and research grants. This is an example of a(n) _____ budget.
A) operations
B) capital expenditures
C) nonmonetary
D) output
E) revenue
E

1. During the scheduling of a project, a plant manager is told that she has 30
workers for 6 hours a day, 5 days a week. This is part of a(n) _____ budget.
A) capital expenditure
B) master
C) space
D) labor
E) personnel
D
1. The _____ budget shows the anticipated differences between sales or
revenue and expenses.
A) expense
B) profit
C) labor
D) capital expenditure
E) cash flow
B
1. A(n) _____ budget forecasts the organization's assets and liabilities in the
event that all other budgets are met.
A) balance sheet
B) revenue
C) fixed asset
D) expense
E) labor
A
1. A budget that deals with costs of major assets such as a new plant,
machinery, or land is known as a _____ budget.
A) revenue
B) balance sheet
C) cash flow
D) expense
E) capital expenditures
E
1. A company that specializes in indoor farming has recently acquired a large
warehouse. Which of the following budgets will this company use to determine
and plan the area available for various functions?
A) Operating budget
B) Space budget
C) Labor budget
D) Revenue budget
E) Expense budget
B
1. Which of the following shows income that the organization expects to
receive from normal operations?
A) Profit budget
B) Balance sheet budget
C) Cash flow budget
D) Space budget
E) Revenue budget
E
1. Which of the following is a nonmonetary budget?
A) Labor budget
B) Capital expenditures budget
C) Sales budget
D) Balance sheet budget
E) Revenue budget
A
1. Which of the following is a weakness associated with budgeting?
A) Budgets do not allow managers to identify problem areas.
B) Budgets do not facilitate effective control.
C) Budgets fail to link planning and controlling.
D) Budgets can limit innovation and change.
E) Budgets hamper coordination between departments.
D
1. Which of the following financial documents shows a listing of all the
organization's assets and liabilities at a given point in time?
A) Balance sheet
B) Expense budget
C) Income statement
D) Revenue budget
E) Capital expenditures budget
A
1. If an energy company wants to discover the effectiveness of its wind-turbine
division in a particular state, it will use a(n):
A) liquidity ratio.
B) balance sheet ratio.
C) return on investment.
D) operating ratio.
E) debt ratio.
D

1. A(n) _____ compares different elements of a balance sheet or an income

statement to one another.
A) expense budget
B) profit budget
C) internal audit
D) operations budget
E) financial ratio
E
1. Which of the following summarizes the financial performance of an
organization over a period of time?
A) Balance sheet
B) Liquidity ratio
C) Cash flow statement
D) Income statement
E) Debt statement
D
1. John began his company making herb vinegars from a recipe his
grandmother had given him. As demand grew, he had to buy a large
commercial kitchen. Which of the following ratios would a banker be most
interested in before allowing John to borrow $500,000?
A) Liquidity ratio
B) Balance sheet
C) Return on investment
D) Operating ratio
E) Debt ratio
E
1. Which of the following reflects a firm's ability to meet its long-term financial
obligations?
A) Debt ratio
B) Balance sheet
C) Return on investment
D) Profit budget
E) Liquidity ratio
a
1. Which of the following ratios assesses the ease with which an
organization's assets can be converted into cash?
A) Liquidity ratio
B) Profitability ratio
C) Debt ratio
D) Operating ratio
E) Coverage ratio
A
1. Financial analysts look at a company's _____ ratio to determine if it can
make interest payments on borrowed capital.
A) coverage
B) operating
C) debt
D) return
E) liquidity
A
1. Which of the following statements about financial audits is true?
A) Audits can only be conducted by experts who are not employees of the
organization.
B) Financial audits are always internal to an organization.
C) Audits are used to monitor accounting and financial systems within an
organization.
D) Organizational operating systems are not audited.
E) Publicly held corporations are required by law to have internal audits
regularly.
C
1. The financial ratio that reflects the ability to meet long-term financial
obligations is the _____ ratio.
A) return
B) operating
C) liquidity
D) debt
E) coverage
D
1. A manager at a supermarket needs to know how easily the store's assets
can be converted into cash. Which of the following ratios will he use?
A) Debt ratio
B) Return ratio
C) Liquidity ratio
D) Coverage ratio
E) Operating ratio
C
1. An appraisal of an organization's accounting and financial procedures
conducted by employees of that organization is known as a(n):
A) internal audit.
B) debt audit.
C) ratio audit.
D) external audit.
E) liquidity audit.
A
1. The purpose of bureaucratic control is to:
A) support employee participation in the control function.
B) produce performance above minimum acceptable standards.
C) get employee compliance.
D) increase group performance.
E) increase employee self-control.
C
1. Which of the following is characteristic of the bureaucratic approach to
organizational control?
A) Rewards are directed at group performance.
B) Organizational structure is flat.
C) Employee participation is extended and informal.
D) Reliance is on strict rules and a rigid hierarchy.
E) Performance expectations extend above and beyond the minimum.
D
1. Organizations that use the bureaucratic control are characterized by:
A) flat structures.
B) rewards focused on group performance.
C) limited employee participation.
D) heavy reliance on group norms.
E) organic structural arrangements.
C
1. An organization that relies on strict rules and a rigid hierarchy and insists
that employees meet minimally acceptable levels of performance most likely
uses _____ structural control.
A) strategic
B) decentralized
C) bureaucratic
D) organic
E) screening
C
1. Decentralized control is characterized by:
A) formal rules
B) an organic structural arrangement.
C) focus on employee compliance.
D) a tall structure.
E) limited employee participation.
B
1. Which of the following is an important element of decentralized control?
A) Group norms
B) Rigid hierarchy
C) Tall organization structure
D) Individual performance
E) Employee compliance
A
1. Organizations that use _____ strategic control believe it is effective
because it allows the home office to keep better informed of the performance
of foreign units.
A) organic
B) centralized
C) mechanistic
D) bureaucratic
E) environmental
B
1. Organizations make the decision of whether to have a centralized or
decentralized international control system when they are addressing issues of
____ control.
A) screening
B) strategic
C) financial
D) bureaucratic
E) preliminary
B
1. A multinational construction firm does not require its various divisions to
report frequently to the head office. The organization believes in letting each
manager have the authority to respond quickly to environmental changes.
These managerial actions do not have to be approved by the head office
before they are implemented. This firm uses _____ strategic control.
A) bureaucratic
B) mechanistic
C) decentralized
D) formalized
E) inflexible
C

1. International firms which use ____ strategic control require each

organization unit around the world to frequently report the results of its
performance to headquarters.
A) decentralized
B) organic
C) screening
D) centralized
E) postaction
D
1. Managers can improve the effectiveness of the control system by:
A) preventing the development of verification procedures.
B) controlling as many things in the organization as possible.
C) focusing only on quantifiable variables.
D) integrating control with planning.
E) correcting all deviations from standards.
D
1. Which of the following is a characteristic of effective control?
A) It provides timely information.
B) It is separate from planning.
C) It is rigid.
D) It is subjective.
E) It directly controls employee behavior.
A
1. An organizational control system that enforces unique employee dress
codes for different days of the week is guilty of:
A) overcontrol.
B) inappropriate focus.
C) rewarding inefficiency.
D) too much accountability.
E) inaccuracy.
A
1. A company buys electronic components, assembles them into PCs, and
then ships them to customers. In this case the electronic components are
_____ for the company.
A) Outputs
B) products
C) processes
D) inputs
E) services

1. The total set of managerial activities an organization uses to transform

resource inputs into products and services is called _____.
a. technology management
b. strategic management
c. project management
d. operations management
e. self-management
d
1. If the product is a physical good, operations create value and provide _____
utility by combining many dissimilar inputs to make something that is more
valuable than the actual cost of the inputs used to create it.
a. time
b. form
c. place
d. service
e. statistical
b
1. Operations management was once called _____.
a. service management
b. process management
c. waste management
d. production management
e. output management
d
1. Fast food restaurants that assemble breads, spreads, and fillings as per the
customers' preference belong to the _____ industry.
a. service
b. manufacturing
c. automotive
d. importing
e. exporting
b
1. An organization that transforms resources into an intangible output in order
to create time or place utility for its customers is known as _____ company.
a. an outsourcing
b. a service
c. a manufacturing
d. the International Organization for Standardization 9000
e. total quality management

1. During the 1970s in the United States, manufacturing entered a long period
of decline. Which of the following is the primary reason for this decline?
a. Modernization of plants
b. Rise in unemployment
c. Growth in the service sector
d. Foreign competition
E) Recession
d
1. A convenience store at the gas station provides utility for customers
because it makes it easy for them to purchase a few essentials when they
stop for gasoline. The convenience store belongs to the _____ industry.
a. service
b. manufacturing
c. automotive
d. importing
electronics
a
1. During the decline of the manufacturing sector, a tremendous growth in the
_____ sector kept the U.S. economy from declining at the same rate.
a. coal
b. service
c. agriculture
d. steel
electronics
b
1. A(n) _____ organization is one that transforms resources into an intangible
output and creates time and place utility for its customers.
a. manufacturing
b. production
c. service
d. coal
agricultural
c
1. In the United States, which of the following steps did the manufacturing
companies take to recover from the long period of decline?
a. They increased their workforces dramatically.
b. They opened more plants.
c. They changed their market.
d. They modernized their plants.
e. They changed their sector.
d
1. _____ is a form of business that combines and transforms resources into
tangible outcomes that are then sold to others.
a. Service
b. Manufacturing
c. Outsourcing
d. Licensing
e. Exporting
b
1. A highest-possible-quality strategy will stress on _____.
a. the lowest possible cost regardless of quality
b. quality regardless of cost
c. low quality at low cost
d. large quantities at low cost
e. productivity regardless of quality
b
1. Which of the following questions is addressed by product-service mix
decisions?
a. How the services need to be provided?
b. How many different products need to be offered?
c. What quantity of a product needs to be produced?
d. Where the products need to be distributed?
e. How products need to be produced?
b
1. Upsilon Inc. manufactures leather handbags. It later adds leather
accessories, shoes, and clothing to its production line. With this step, Upsilon
is taking a _____ decision.
a. layout
b. promotion-distribution
c. capacity
d. product-service mix
e. facility
d
1. Globe-Mart, a large chain of department stores, strategically places
distribution centers throughout the United States. In this context, Globe-Mart
has made a _____ decision.
a. product layout
b. facilities location
c. capacity
d. product-service mix
e. process layout
b
1. Katina has hurt her hand. She goes to the emergency room. The doctor
thinks Katina has a broken wrist, and sends her for an X-ray. In this example,
which type of layout does the hospital have?
a. Product layout
b. Cellular layout
c. Random layout
d. Fixed-position layout
e. Process layout
e
1. A _____ layout is appropriate when large quantities of a single product are
needed.
a. process
b. cellular
c. fixed-point
d. product
e. distributed
d
1. _____ layouts are used in operations settings that create or process a
variety of products.
a. Product
b. Cellular
c. Random
d. Fixed-position
e. Process
e
1. In a toy manufacturing factory, the employees are stationed along the
assembly line. As a toy moves along the assembly line, each employee
stationed there adds a particular part to the toy. The toy factory has a _____
layout.
a. process
b. cellular
c. fixed-point
d. product
e. distributed
d

1. Eagle Inc. makes golf clubs. Each set has up to 12 clubs and each club in
the set is slightly different from the other. Which of the following types of
layout does Eagle's manufacturing plant have?
a. Product layout
b. Cellular layout
c. Fixed-position layout
d. Random layout
e. Process layout
b
1. Dina works in a residential construction company. She travels to the job site
to build a house. The residential construction company is an example of a
_____ layout.
a. product
b. cellular
c. random
d. fixed-position
e. process
d
1. The _____ layout is used when the organization is creating a few very large
and complex products.
A) product
B) cellular
C) fixed-position
D) process
E) distributed
c
1. The _____ layout is used when the organization is creating a few very large
and complex products.
a. product
b. cellular
c. fixed-position
d. process
e. distributed
c
1. _____ layouts are used when families of products can follow similar flow
paths.
a. Product
b. Cellular
c. Random
d. Fixed-position
Process
b
1. In automation, _____ is the flow of information from the machine back to
the sensor.
a. feedback
b. agrimation
c. input instruction
d. design
e. control mechanism
a
1. Which of the following is true of automation?
a. The development of automation has created jobs across all industries.
b. Automated machines make more errors.
c. Automation discourages innovation.
d. Automation helps to improve products and services.
Automation was the earliest step in the development of machines and
machine-controlling
d
1. In automation, _____ are the parts of the system that gather information
and compare it to preset standards.
a. feedback systems
b. sensors
c. robots
d. mechanical arms
e. control mechanisms
b
a. control mechanisms
2. In automation, which of the following sends instructions to the automatic
machine?
a. Feedback
b. Sensors
c. Agrimation
d. Steering system
e. Control mechanism
e
1. Which of the following uses computers to design parts and complete
products and to simulate performance so that prototypes need not be
constructed?
a. Computer-aided automation
b. Computerized robotics
c. Agrimation
d. Computer-aided design
e. Flexible manufacturing systems
d
1. Which of the following is true of computer-integrated manufacturing (CIM)?
a. It is a simple tool.
b. It is very different from computer-aided manufacturing.
c. In CIM, adjustment of machine placements and settings is manual.
d. It is a powerful management control tool.
e. It is a form of service technology.
d
1. EduCool is a web-based student information system. It allows parents to
follow their child's performance online. It includes grades, attendance,
assignments, and student data on a daily basis. EduCool is an example of:
a. advancement in service technology.
b. advancement in manufacturing technology.
c. computer-aided manufacturing.
d. computer aided design.
e. computer-assisted technology.
a
1. A(n) _____ is any artificial device that is able to perform functions ordinarily
thought to be appropriate for human beings.
A) transformer
B) expert system
C) resistor
D) robot
E) just-in-time inventory system
d
1. _____ include robotic work units or workstations, assembly lines, and
robotic carts or some other form of computer-controlled transport system to
move material as needed from one part of the system to another.
A) Agrimations
B) Flexible manufacturing systems
C) Call-center systems
D) Computer-aided design technologies
E) Expert systems
b
1. Which of the following statements about manufacturing technology is true?
A) Computer-assisted manufacturing generates resistance.
B) Computer-aided design systems are always reliable.
C) Computer-integrated manufacturing systems are inexpensive.
D) Computer-aided design systems are very simple.
E) Computer-assisted manufacturing is the same as automation.
a
1. Which of the following uses robot harvesters to pick fruit from a variety of
trees?
A) Agrimation
B) Flexible manufacturing systems
C) Supply chain management
D) Computer--assisted manufacturing
E) Benchmarking
a
1. _____ is the process of managing operations control, resource acquisition
and purchasing, and inventory to improve overall efficiency and effectiveness.
A) Supply-chain management
B) Technology management
C) Design management
D) Quality control
E) Productivity control
a
1. _____ is also called procurement.
A) Automation
B) Purchasing management
C) Inventory Management
D) Materials control
E) Quality control
b
1. Which of the following is concerned with buying the materials and resources
needed to produce products and services?
A) Automation
B) Purchasing management
C) Inventory Management
D) Materials control
E) Quality control
b
1. Which of the following inventory types provides the components needed to
make the product?
A) Raw materials
B) Work-in-process
C) Merchandise
D) Finished goods
E) In-transit
A
1. Which of the following inventory types provides ready supply of products on
customer demand and enables long, efficient production runs?
A) Raw materials inventory
B) Work-in-process inventory
C) Procurements inventory
D) Finished goods inventory
E) In-transit inventory
D
1. Which of the following is a source of control for in-transit inventory?
A) Shop floor control systems
B) High-level production scheduling systems
C) Marketing
D) Distribution control systems
E) Purchasing models and systems
D
1. The purpose of an in-transit inventory is to:
A) provide the materials needed to make the product.
B) enable overall production to be divided into stages of manageable size.
C) reduce the organization's investment on storage space.
D) provide ready supply of products on customer demand and enable long,
efficient production runs.
E) distribute products to customers.
E
1. Just-in-time method helps an organization control its _____.
A) raw materials inventory
B) work-in-process inventory
C) quality
D) finished goods inventory
E) in-transit inventory
B
1. _____ is the totality of features and characteristics of a product or service
that bear on its ability to satisfy stated or implied needs.
A) Inventory
B) Process
C) Quality
D) Quantity
E) Technology
C
1. Which of the following dimensions of quality refers to a measure of product
life?
A) Reliability
B) Durability
C) Serviceability
D) Features
E) Perceived quality
B
1. Dorothy loves buying Haven's herb bread. As advertised, she thinks it is the
most versatile bread as well as being nutritious. It can be eaten by itself, made
into sandwiches, added to salads, and so on. The versatility of the herb bread
is a supplement to its nutrition and therefore it constitutes the _____
dimension of quality.
A) features
B) aesthetics
C) reliability
D) durability
E) serviceability
A
1. Sarah followed an online recipe and made pizza for her family. It turned out
so badly that she had to discard it. Sarah and her family said that the pizza
tasted like cardboard. Which dimension of quality were they describing?
A) Aesthetics
B) Conformance
C) Reliability
D) Serviceability
E) Performance
A
1. Serviceability is the dimension of quality that refers to:
A) how a product looks, feels, tastes, and smells.
B) the degree to which a product's design and operating characteristics meet
established standards.
C) a probability of not malfunctioning during a specified period.
D) a measure of product life.
E) the speed and ease of repair.
E

1. Azures Airlines operates between Washington Dulles, Newark Liberty, and

Paris Charles de Gaulle airports. It offers all business-class services. The
customers feel that the prices of Azures' flights are considerably lower than
those of other similar airlines. This quality of Azures is an example of:
A) features.
B) aesthetics.
C) reliability.
D) perceived quality.
E) serviceability.
D
1. The dimension of quality that refers to the degree to which a product's
design and operating characteristics meet established standards is:
A) features.
B) conformance.
C) reliability.
D) durability.
E) serviceability.
B
1. Performance is the dimension of quality that refers to:
A) a product's primary operating characteristic.
B) the degree to which a product's design and operating characteristics meet
established standards.
C) a probability of not malfunctioning during a specified period.
D) a measure of product life.
E) the speed and ease of repair.
A
1. Which of the following is true of the Malcolm Baldrige Award?
A) It is awarded by the Rochester Institute of Technology.
B) It is awarded to firms that achieve major improvements in the quality of
their products or services.
C) It is awarded to the company that has consistently maintained the same
quality for 5 continuous years.
D) It is awarded to the company that has shown the highest company
productivity.
E) It is awarded not to entire organizations but to individual teams of workers
within organizations.
B

1. The dimension of quality of a product that refers to a probability of not

malfunctioning during a specified period is the product's:
A) features.
B) conformance.
C) reliability.
D) durability.
E) serviceability.
D
1. Which of the following is true of ISO 9000:2000?
A) Firms get to choose the organization they want to be audited by for the
certification.
B) It includes 2000 standards that should be met.
C) These standards do not cover employee training and supplier relations.
D) Firms that want to meet these standards need to apply for certification.
E) The auditors review only the firm products in relation to the standards.
D
1. Carrington is one of the best restaurants in Chicago. Carrington's chefs
have made arrangements with local farmers to provide them with fresh and
good quality vegetables and fruits. In the context of total quality management,
the chefs are focusing on _____.
A) employee involvement
B) strategic commitment
C) technology
D) materials
E) methods
D
1. Bingo Inc. sends its consultants for change management to various
companies to learn how those companies have coped with changes in the
past. Which of the following tools or techniques is Bingo using for improving
quality?
A) Benchmarking
B) Value-added analysis
C) Outsourcing
D) Reducing cycle times
E) Statistical quality control
A

1. _____ is the comprehensive evaluation of all work activities, materials

flows, and paperwork to determine the worth and appeal that they add for
customers.
A) Acceptance sampling
B) Benchmarking
C) In-process sampling
D) Six Sigma
E) Value-added analysis
E
1. Virtually all successful quality-enhancement programs involve making the
person responsible for doing the job responsible for making sure it is done
right. This critical ingredient in total quality management refers to:
A) employee involvement.
B) strategic commitment.
C) technology.
D) materials.
E) methods.
A
1. Which of the following is the process of learning how other firms do things
in an exceptionally high-quality manner?
A) Value-added analysis
B) Benchmarking
C) Outsourcing
D) Reducing cycle times
E) Statistical quality control
B
1. Which of the following TQM guidelines for reducing cycle time is most
appropriate in a decentralized organization?
A) Start from scratch
B) Minimize the number of approvals needed to do something
C) Develop and adhere to a schedule
D) Do not ignore distribution
E) Integrate speed into the organization's culture
B
1. _____ is the time needed by the organization to develop, make, and
distribute products or services.
A) In-process time
B) Six Sigma time
C) Process layout time
D) Cycle time
E) Just-in-time
D
1. Which of the following guidelines for increasing speed is followed in a
bureaucratic organization?
A) Start from scratch
B) Minimize the number of approvals needed to do something
C) Develop and adhere to a schedule
D) Do not ignore distribution
E) Integrate speed into the organization's culture
C
1. Which of the following guidelines for increasing speed is followed in a
bureaucratic organization?
A) Start from scratch
B) Minimize the number of approvals needed to do something
C) Develop and adhere to a schedule
D) Do not ignore distribution
E) Integrate speed into the organization's culture
C
1. Which of the following is an example of statistical quality control?
A) Benchmarking
B) Six Sigma
C) In-process sampling
D) ISO 9000:2000
E) Outsourcing
C
1. Implementing _____ requires making corrections until errors virtually
disappear.
A) ISO 14000
B) ISO 9000:2000
C) Six Sigma
D) value-added analysis
E) statistical quality control
C
1. A factory produces 100,000 units of its product with 10 hours of direct labor.
Which of the following accurately represents the factory's labor productivity
index?
A) 1,000
B) 10
C) 10,000
D) 100
E) 1,000,000
C
1. Which of the following levels of productivity represents the total level of
productivity achieved by a country?
A) Company
B) Partial
C) Partial
D) Individual
E) Aggregate
E
1. At a stereo making factory, the employees stationed along the assembly
line are required to wear ring scanners, small electronic devices worn on their
index fingers and wired to a small computer on their wrists. As a product
moves along the assembly line and is handled by the stationed employee, its
location or progress is updated on the company's database system. This way
the management knows if there are any bottlenecks. This method of improving
operations allows the company to:
A) improve its productivity.
B) decrease fixed cost.
C) decrease its dependence on its Web site.
D) increase customer affective responses.
E) manage quality.
A