Principles of management exam 1

Question 5

Question text

A strategy used to add new businesses that produce related products or are involved in related markets and activities is called:

Select one:

1. concentration
2. vertical integration
3. concentric diversification
4. conglomerate diversification
5. None of the above.

The correct answer is: concentric diversification

Question 6

Question text

XYZ Corporation has hired a consultant to help them with organizational decision making. The consultant's first meeting is set up to describe to the managers of XYZ Corp. the models of organizational decision processes. Each of the managers seems to prefer one of the models over the others.

The President of XYZ Corp. responds most positively to the model that is most cautious. He explains that the budget process is the easiest decision for him because you break it into smaller pieces and build the decisions as you go. The President seems to prefer which model?

Select one:

1. bounded rationality
2. incremental model
3. garbage can model
4. coalitional model
5. crisis model

The correct answer is: incremental model

Question 7

Question text

All of the following are ways that managers can encourage creativity EXCEPT:

Select one:

1. Give creative efforts credit.
2. Stimulate and challenge people intellectually.
3. Keep your employees isolated from customers to avoid conflicting information.{" "}
4. Avoid extreme time pressures when possible.
5. Strive to be creative yourself.

The correct answer is: Keep your employees isolated from customers to avoid conflicting information.

Question 8

Question text

Groups that operate under a condition known as groupthink

Select one:

1. make risky decisions.
2. are overconfident.
3. value team spirit.
4. All of the above.
5. None of the above.

The correct answer is: All of the above.

Question 9

Question text

When Johnny Jack of Jack Enterprises realized that his plan to increase sales levels among associates was not producing the results he desired, he took quick action to make necessary adjustments. Johnny was exercising the management function of

Select one:

1. planning.
2. organizing.
3. leading.
4. controlling.
5. communicating.

The correct answer is: controlling.

Question 10

Question text

The three levels of managers within large organizations are:

Select one:

1. International, Regional, and Local
2. Marketing, Management, and Accounting
3. Technical, Functional, and Departmental
4. Upper Level, Top Management and Functional
5. Top-Level, Middle-Level and Frontline

The correct answer is: Top-Level, Middle-Level and Frontline

Question 11

Question text

________________ level of managers are typically concerned with the interaction between the organization and its external environment.

Select one:

1. Regional
2. Top-Level
3. Middle-Level
4. Frontline
5. Functional

The correct answer is: Top-Level

Question 12

Question text

When a solution is specifically designed for a particular problem or set of problems, it is called

Select one:

1. a designer-enhancement.
2. dynamic.
3. ready-made.
4. future-generated.
5. None of the above.

The correct answer is: None of the above.

Question 13

Question text

According to Max Weber, the ideal model for management is the _________________ approach.

Select one:

1. human relations
2. systematic
3. bureaucracy
4. administrative management
5. quantitative management

The correct answer is: bureaucracy

Question 14

Question text

In order to maximize the creativity and effectiveness of a decision, managers should

Select one:

1. obtain input from people with differing backgrounds.
2. obtain information from people with differing information.
3. obtain information from people with differing perspectives.
4. All of the above.
5. None of the above.

The correct answer is: All of the above.

Question 15

Question text

The _______ model of decision making occurs when decision makers make small decisions and move in piece-meal fashion toward a bigger solution.

Select one:

1. incremental
2. trial-and-error
3. garbage can
4. coalitional
5. political

The correct answer is: incremental

Question 16

Question text

The finding that workers performed and reacted differently because they were being observed is known as:

Select one:

1. the bureaucratic effect
2. the Hawthorne effect
3. Theory X/Theory Y
4. the contingency effect
5. the strategic effect

The correct answer is: the Hawthorne effect

Question 17

Question text

You are visiting a local company in your university's city to {"shadow"} a manager for a day. At the end of the day, there are three events that really caught your attention. First, at an early meeting with the manager's employees, the manager notified the employees of pending lay-offs. This news was met with a great deal of anxiety on the part of the employees. One employee reacted very angrily and became so disruptive that the manager had to call the company's security department to have them escorted out of the building. Later in the day, the manager made a call to a supplier to find out if anything "new and interesting" was going on in the industry. Finally, after work, the manager was going to attend an employee's wedding.

When the manager notifies the employees of pending layoffs at a meeting, which of the roles described by Mintzberg in Table 1.3 is illustrated?

Select one:

1. leader
2. liaison
3. disseminator
4. disturbance handler
5. disturbance handler

The correct answer is: disseminator

Question 18

Incorrect

0.00 points out of 3.00

Question text

You and your colleagues are having an enthusiastic debate over how best to manage your business. Colleague 1 says that you should find "the best way" to do every job in the company and teach every employee how to do their job accordingly. Colleague 2 believes that you should consider the employees' feelings and needs in their jobs. Colleague 2 suggests that you should come up with ways to acknowledge employees' needs so that they will be more productive. Colleague 3 disagrees with the others and suggests that you should use proven statistical methods to "crunch the numbers" to get the answers to your management questions. You, on the other hand, tell your colleagues that they all have legitimate theoretical approaches, but that, in fact, there is no "one best way" to manage and that you must consider the situation before making this important decision regarding your theoretical approach to managing your company.

Which of the theoretical approach do you (as described in the scenario above) appear to favor?

Select one:

1. systematic management
2. scientific management
3. administrative management
4. quantitative management
5. contingency perspective

The correct answer is: contingency perspective

Question 19

Question text

A key concept of the human relations approach is _________________.

Select one:

1. Statistical models should be utilized to answer management questions.
2. Social needs have precedence over economic needs.
3. Hierarchy defines the relationship among jobs.
4. Rules and regulations standardize behavior.
5. Productivity and employee behavior are influenced by the informal work group.{" "}

The correct answer is: Productivity and employee behavior are influenced by the informal work group.

Question 20

Question text

The reason that an organization exists is the organization's

Select one:

1. vision.
2. mission.
3. revenue.
4. strategy.
5. policy.

The correct answer is: mission.

Question 21

Question text

Ultimately, Ed Catmull was rewarded in his career with the unusual decision:

Select one:

1. to leave Pixar and start his own company.
2. to decline the offer from Steve Jobs to build a company, thus giving up his dream of making computer-animated movies.{" "}
3. to become an accountant.
4. to run his own software development company that designed architectural engineering programs.
5. None of the above.

The correct answer is: to decline the offer from Steve Jobs to build a company, thus giving up his dream of making computer-animated movies.

Question 22

Question text

Suppose you are interviewing a CEO of a large company. The CEO is telling you about their job as a manager and how they spend their time. Using the descriptions below, which function of management is the CEO describing in each of the examples?

"My job, for some part of each day, is to empower our employees to think of things in new and different ways, not just to come to work and complete the tasks on a list."

Select one:

1. planning
2. organizing
3. leading
4. controlling
5. decision making

The correct answer is: leading

Question 23

Question text

______________ skills influence a manager's ability to work well with people.

Select one:

1. Decisional
2. Technical
3. Interpersonal
4. Professional
5. Conceptual

The correct answer is: Interpersonal

Question 24

Question text

Suppose a global cosmetics company called Lumpy and Clumpy is considering its corporate strategy. Several people on their Board of Directors believe they have the "perfect" strategy for the company. Susie Q. Cutie believes that the best option is for Lump and Clumpy to stay on their current track of offering only cosmetics to customers who like the "look" of the products they offer. Marsha Madly wants the company to expand by purchasing the manufacturing plants that produce the Lumpy and Clumpy products. Another director, Carson Cash, wants to build the company by adding related products like skin care and perfume to be sold alongside their current products. Finally, the original owner of the company, Doris Doolittle, wants to grow the company by doing something completely new like building restaurants or perhaps starting an entertainment park.

Marsha Madly is advocating which corporate strategy?

Select one:

1. concentration
2. vertical integration
3. concentric diversification
4. conglomerate diversification
5. low-cost

The correct answer is: vertical integration

Question 25

Question text

The Chem-Free Natural Pharmaceutical Company has completed a SWOT analysis as part of their ongoing strategic planning process. They have formulated the following information:
1. New regulations have been passed limiting their ability to sell certain formulations over the counter.
2. As compared to their competitors, their management team is by far the best in the industry.
3. They have fallen behind in research and development in the last few years.
4. More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade.
5. The company has adequate financial resources to invest in their operations.

Which of the above would be (a) strength(s) for Chem-Free?

Select one:

1. All of the above.
2. 1 and 5
3. 2 and 5
4. 3 only
5. 4 only

The correct answer is: 2 and 5

Question 26

Question text

Real-time information is information that

Select one:

1. is based on past performance.
2. represents a realistic forecast.
3. is based on adjusted predictions.
4. is obtained with little or no delay.
5. is discounted for the future.

The correct answer is: is obtained with little or no delay.

Question 27

Question text

You and your colleagues are having an enthusiastic debate over how best to manage your business. Colleague 1 says that you should find "the best way" to do every job in the company and teach every employee how to do their job accordingly. Colleague 2 believes that you should consider the employees' feelings and needs in their jobs. Colleague 2 suggests that you should come up with ways to acknowledge employees' needs so that they will be more productive. Colleague 3 disagrees with the others and suggests that you should use proven statistical methods to "crunch the numbers" to get the answers to your management questions. You, on the other hand, tell your colleagues that they all have legitimate theoretical approaches, but that, in fact, there is no "one best way" to manage and that you must consider the situation before making this important decision regarding your theoretical approach to managing your company.

Which theoretical approach does Colleague 3 appear to favor?

Select one:

1. systematic management
2. scientific management
3. administrative management
4. quantitative management
5. contingency perspective

The correct answer is: quantitative management

Question 28

Question text

You and your colleagues are having an enthusiastic debate over how best to manage your business. Colleague 1 says that you should find "the best way" to do every job in the company and teach every employee how to do their job accordingly. Colleague 2 believes that you should consider the employees' feelings and needs in their jobs. Colleague 2 suggests that you should come up with ways to acknowledge employees' needs so that they will be more productive. Colleague 3 disagrees with the others and suggests that you should use proven statistical methods to "crunch the numbers" to get the answers to your management questions. You, on the other hand, tell your colleagues that they all have legitimate theoretical approaches, but that, in fact, there is no "one best way" to manage and that you must consider the situation before making this important decision regarding your theoretical approach to managing your company.

Which theoretical approach does Colleague 2 appear to favor?

Select one:

1. systematic management
2. scientific management
3. administrative management
4. human relations perspective
5. contingency perspective

The correct answer is: human relations perspective

Question 29

Question text

Pearl Jam made a public statement that they had decided not to book any concerts through Ticketmaster as an objection to the virtual monopoly Ticketmaster has on the industry. The initial strong public support has been followed by fewer concerts, lower revenues, less overall public exposure, and more hassles for the band. In retrospect, the band's decision seems to have

Select one:

1. been improperly framed.
2. been socially irresponsible.
3. discounted the future.
4. psychological conflict.
5. involved too many conflicting groups.

The correct answer is: discounted the future.

Question 30

Question text

Uncertainty exists when the manager

Select one:

1. faces two conflicting issues.
2. knows the risk involved in making the decision.
3. has accurate information to make the decision.
4. has insufficient information to make the decision.{" "}
5. none of the above describe uncertainty in decision making.

The correct answer is: has insufficient information to make the decision.

Question 31

Question text

Goal and Plan Selection

Select one:

1. relies exclusively on experienced judgment.
2. relies on experienced judgment to assume an important role.{" "}
3. relies on experienced judgment to play a minor role.
4. will suffer if experienced judgment is relied upon.
5. cannot consider experienced judgment but facts to play a role.

The correct answer is: relies on experienced judgment to assume an important role.

Question 32

Incorrect

0.00 points out of 3.00

Question text

Senior executives responsible for the overall management and effectiveness of the organization are called:

Select one:

1. low-level managers
2. middle managers
3. strategic managers
4. tactical managers
5. none of the above

The correct answer is: strategic managers

Question 33

Incorrect

0.00 points out of 3.00

Question text

In an attempt to make a conflict between two employees less personal and emotional, their manager assigns each of them to approach a problem from different viewpoints. This is an example of using the ____________ approach.

Select one:

a.

cognitive conflict

b.

affective conflict

c.

devil's advocate

d.

dialectic approach

e.

groupthink

The correct answer is:

dialectic approach

Question 34

Question text

According to Gary Hamel, the real competition has always been between

Select one:

1. a new economy and an old economy.
2. the Internet and physical stores.
3. newcomers and the old guard.
4. distributors and suppliers.
5. production and service.

The correct answer is: newcomers and the old guard.

Question 35

Question text

The four basic management functions are: planning, leading, organizing, and

Select one:

1. coordinating.
2. controlling.
3. communicating.
4. Decision making.
5. developing.

The correct answer is: controlling.

Question 36

Question text

When a company attempts to establish itself as uniquely able to offer a product or service, it is using ______________ strategy.

Select one:

1. differentiation
2. diversification
3. dimensional issue
4. demand/supply
5. dimensional studies

The correct answer is: differentiation

Question 37

Question text

The way in which the alternatives to a decision are stated or phrased may have an impact on which alternative is chosen. Varying alternatives can be presented in a more favorable or less favorable way, affecting the decision. This is referred to as

Select one:

1. framing effects.
2. phrasing effects.
3. fraud effects.
4. flamboyancy effect.
5. fracture effects.

The correct answer is: framing effects.

Question 38

Question text

Healthy Day Regional Medical Center's management team has several decisions to make. They are attempting to sort out what to do first. The decisions are as follows:
1. Determine which patients to be admitted for the next day.
2. Decide whether or not to purchase the only other medical center in their region.
3. Decide which candidates will meet the requirements for the nursing training program.
4. Determine whether the medical center should diversify into more advanced (and substantially more costly) technologies.

If the decision makers for Decision 3 take the first candidate they see that meets the minimum requirements, without going through every candidate's file to see if anyone else is better, they are _____________.

Select one:

1. maximizing
2. satisficing
3. optimizing
4. experiencing internal conflict.
5. experiencing external conflict.

The correct answer is: satisficing

Question 39

Incorrect

0.00 points out of 3.00

Question text

Strategic goals are

Select one:

1. major targets that relate to the organization in the long-term.{" "}
2. focused on effectiveness.
3. focused on efficiency.
4. All of the above.
5. None of the above.

The correct answer is: All of the above.

Question 40

Question text

The final component of the strategic management process is strategic

Select one:

1. implementation.
2. visioning.
3. formulation.
4. control.
5. cultural balancing.

The correct answer is: control.

Question 41

Incorrect

0.00 points out of 3.00

Question text

A ____________ statement clarifies the long-term direction of the company and its __________.

Select one:

1. mission; strategic intent
2. vision; strategic intent
3. vision; operational goals
4. mission; tactical goals
5. None of the above

The correct answer is: vision; strategic intent

Question 42

Question text

Given that Kleenex Facial Tissue has the largest market share but is in a declining growth industry, it is probably safe to assume that Kleenex Facial Tissue would be located where on the Boston Consulting Group Matrix for its parent corporation?

Select one:

1. As a dog
2. As a question mark
3. As a star
4. As a cash cow
5. As a resource burner

The correct answer is: As a cash cow

Question 43

Incorrect

0.00 points out of 3.00

Question text

Titles such as Foreman, Lead Bartender, or Supervisor typically belong to managers at what level?

Select one:

1. Strategic
2. Middle
3. Top
4. Operational
5. Tactical

The correct answer is: Operational

Question 44

Question text

The outcome of Situational Analysis is

Select one:

a.

the identification of alternative plans of action.

b.

the identification of contingency plans to be followed under various scenarios.

c.

the identification of planning assumptions, issues and problems.

d.

the identification of the consequences of those alternatives under consideration.

e.

None of the above.

The correct answer is:

the identification of planning assumptions, issues and problems.

Question 45

Question text

The state that exists when decision makers have insufficient information is:

Select one:

1. certainty.
2. uncertainty
3. risk.
4. probability.
5. undecided.

The correct answer is: uncertainty

Question 46

Question text

________________ introduced an approach to management known as scientific management.

Select one:

1. Chester Barnard
2. Max Weber
3. Henry Gantt
4. Frank and Lillian Gilbreth
5. Frederick Taylor

The correct answer is: Frederick Taylor

Question 47

Question text

The Chem-Free Natural Pharmaceutical Company has completed a SWOT analysis as part of their ongoing strategic planning process. They have formulated the following information:
1. New regulations have been passed limiting their ability to sell certain formulations over the counter.
2. As compared to their competitors, their management team is by far the best in the industry.
3. They have fallen behind in research and development in the last few years.
4. More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade.
5. The company has adequate financial resources to invest in their operations.

Which of the above would be (an) opportunity(ies) for Chem-Free?

Select one:

1. All of the above.
2. 1 only
3. 2 and 5
4. 3 only
5. 4 only

The correct answer is: 4 only

Question 48

Question text

Around _______________, the Chinese practiced the four management functions.

Select one:

1. 350 B.C.
2. 450 B.C.
3. 720 B.C.
4. 915 B.C.
5. 1100 B.C.

The correct answer is: 1100 B.C.

Question 49

Incorrect

0.00 points out of 3.00

Question text

You and your colleagues are having an enthusiastic debate over how best to manage your business. Colleague 1 says that you should find "the best way" to do every job in the company and teach every employee how to do their job accordingly. Colleague 2 believes that you should consider the employees' feelings and needs in their jobs. Colleague 2 suggests that you should come up with ways to acknowledge employees' needs so that they will be more productive. Colleague 3 disagrees with the others and suggests that you should use proven statistical methods to "crunch the numbers" to get the answers to your management questions. You, on the other hand, tell your colleagues that they all have legitimate theoretical approaches, but that, in fact, there is no "one best way" to manage and that you must consider the situation before making this important decision regarding your theoretical approach to managing your company.

Which theoretical approach does Colleague 1 appear to favor?

Select one:

1. systematic management
2. scientific management
3. administrative management
4. human relations perspective
5. contingency perspective

The correct answer is: scientific management

Question 50

Question text

Which of the following principles states that each employee should be assigned to only one supervisor?

Select one:

1. authority
2. unity of direction
3. unity of command
4. scalar chain
5. unity of vision

The correct answer is: unity of command