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Authority is the right to perform or command. Managers should surround non-creative employees with creative employees so that creativity can rub off on the non-creative employees. Answer: FALSE All decisions are either programmed or non-programmed decisions. Answer: FALSE The matrix […]

A diverse workforce in a company ________. A) alienates the company’s customers B) enhances the company’s credibility with customers C) hampers innovation and decision-making D) increases operational costs and expenditure E) reduces the market penetration ability of the company The […]

International management is the performance of management activities across national borders. Product strategy is an operational plan of action outlining which goods and services an organization will produce and market. Answer: TRUE Quality circle is a process used to determine […]

________ is a type of evaluation that helps entrepreneurs understand whether an idea is practical. A) Illusion of control B) Entrepreneurial risk management C) Strategic planning D) Feasibility analysis E) Entrepreneurial alertness Alternatives to reach an organizational objective are based […]

Managers who have progressed to Donaldson’s “conscious incompetence” stage learn how to interact with diverse groups and cultures by deliberately thinking about how to behave. The belief that one’s own group, culture, country, or customs are superior to that of […]

Personal factors as recreational interests, race, gender, and religion serve as foundations for ________. A) interest groups B) work teams C) friendship groups D) committees E) special-purpose teams The theory based on the concept that individuals compare their inputs and […]

A clan culture is an organization culture with a strong external focus coupled with a high degree of flexibility and discretion. Layout strategy is a plan of action outlining the means and methods the organization will use to transform resources […]

The term triple bottom-line emphasizes that managers should focus on building organizations that are sustainable in economic, environmental, and societal activities. One form of international management is fighting competition in foreign markets. Answer: TRUE Equal opportunity legislation protects the right […]

According to Katz, human skills are required for ________. A) designing work processes and procedures B) understanding how the organization relates to its environment C) understanding how changes in one part of the organization affect the rest of it D) […]

________ is an organization culture that reflects values that emphasize stability and control along with an external focus. A) Adhocracy culture B) Clan culture C) Market culture D) Hierarchy culture E) Bureaucracy culture According to the contingency theory of leadership, […]

When staff personnel are viewed as suppliers and line personnel as customers, staff personnel are performing the ________ role. A) service B) advisory C) counseling D) control E) administrative Many organizations implement grievance procedures to assist employees. Such procedures are […]

Expertise and creative thinking are the individual’s raw materials for being creative, but motivation determines whether an individual will actually be creative. According to Fayol, employee retention should not be given high priority as recruitment and selection costs are lower […]

Information required for decisions related to operational control should ________. A) emphasize the future B) be highly accurate C) come largely from external sources D) primarily contain historical data E) provide an aggregate without going into the details Which stage […]

An organization decides to implement a supply chain management system to increase the efficiency of its operations. A group of employees resist the implementation. Which of the following could be the most probable reason for their resistance? A) The change […]

Career plateauing is a period of declining performance and productivity. In essence, line personnel are the suppliers of workers , and the various organizational departments needing workers are their customers. Answer: FALSE Productivity is the relationship between the total amounts […]

The highest level of worker performance and productivity is associated with the lowest level of worker stress. The primary function of the Equal Employment Opportunity Commission is to ensure that employers holding federal contracts grant equal employment opportunity to people […]

Individuals within the workplace with a hierarchy culture are more concerned about efficiency and let formal rules and policies govern how they operate. Efficient means that a small proportion of total resources contributes to productivity during the manufacturing process; inefficient […]

The capacity of people to recognize their own feelings and the feelings of others is called motivational intelligence. Entrepreneurship refers to the identification, evaluation and exploitation of opportunities. Answer: TRUE Being tough-minded and structured are characteristics associated with managers rather […]

A firm’s ability to undertake an action is referred to as ________. A) differentiation B) competitor motivation C) competitor capability D) competitor awareness E) strategic ability According to Malik, a planner is doing a reputable job if plans ________. A) […]

Wikstrom’s human resource inventory records furnish different data on which to base a hiring-from-outside decision. Organizational survival and growth are most probable when both stability and adaptation are high within the organization. Answer: TRUE Theory X is a set of […]

American Visual Network, Inc., a media and entertainment company, is involved in the production, distribution, and marketing of television programs and Internet broadcasting. The company uses various techniques to promote internal communication. Which of the following programs of the company […]

Organizational planners must know how all parts of the organization function and interrelate. To be considered as effective, test results should not be used as the sole determinant of a hiring decision. Answer: TRUE In the past, many managers believed […]

A people-related step in building an effective team is setting stable goals and priorities for the team. The first step in the incremental improvement process involves organizing a quality improvement team. Answer: FALSE Fiedler’s contingency theory proposes that leaders should […]

Feedback is the destination’s verbal reaction to a message in interpersonal communications. Henri Fayol was a major contributor to the field of classical management theory. Answer: TRUE One of the weaknesses of performance appraisals is that the emphasis is on […]

________ decisions relate to determining organizational objectives and designating the corresponding action necessary to reach them. A) Strategic planning B) Operational control C) Tactical control D) Operational planning E) Management control William Cooley is the manager of a professional football […]

Which of the following characteristics is found in a healthy organization culture? A) strong results-orientation B) profit-driven business practices C) commitment to getting work done by any possible means D) avoidance of risky business practices E) unquestioned integrity and consistency […]

Employees often experience considerable stress when they do not know what the next step in their professional lives might be or when they might take it. Which of the following could be the best solution to this problem? A) creating […]

Sustainability is the degree to which a person or entity can put its competitors out of business. Repetitiveness, time, scope, and length are the four dimensions of plans. Answer: TRUE The concept of centralization implies that a huge amount of […]

In general, the closer subordinates are physically, the more of them managers can supervise effectively. As a general rule, the more physically separated the organization’s customers are, the more viable a significant amount of centralization is. Answer: FALSE Organizational myths […]

Organizational members should be obligated to perform only those activities that lead to goal attainment. The trait approach to leadership proposes that leaders are made, not born. Answer: FALSE One of the primary guidelines for establishing quality objectives is that […]

Once an innovation dimension is established, management can be assured that it will continue to exist over time. If a company’s employees consider an IS easy to use, that IS would be labeled a high-quality IS. Answer: TRUE Despite the […]

Organizations headquartered in Pakistan train their employees in order to enable them to tackle the job that has to be performed immediately. The managers also prefer maintaining a day-to-day perspective. Pakistan is a good example of a ________ society. A) […]

________ is the process of converting messages back into information. A) Decoding B) Encoding C) Derivation D) Paraphrasing E) Rewording ________ is the process of outlining who will follow whom in various organizational positions. A) Organizational restructuring B) Succession planning […]

Establishing a formal partnership with a foreign company is a form of international management. “In what kind of environment does the organization now exist?” is one of the four basic questions required for critical question analysis. Answer: TRUE Normally, the […]

A policy is a single-use plan that furnishes broad operating guidelines. Traditionally, individuals at the top of a pyramid-shaped organizational structure have more authority but less responsibility than individuals at the bottom of the pyramid. Answer: FALSE Pure-breakdown policy involves […]

Which of the following statements is true of the control tools used in organizations? A) It helps to pinpoint organizational strengths and weaknesses. B) It is generally used during the product design stage. C) Control tools are not used for […]

A career is a sequence of work-related positions occupied by a person over the course of a lifetime. Activities based on Theory Y assumptions are more apt to motivate organization members than are activities based on Theory X assumptions. Answer: […]

An individual’s emotional intelligence is characterized by self-awareness, self-motivation, self-regulation, empathy for others, and ________. A) systems thinking B) formal communication abilities C) openness to experience D) adeptness in building relationships E) superior intellectual capabilities Which of the following is […]

ABC insurance company hired a manager for their operations team. The manager divided the job activities among his team members by examining the management system objectives, designating appropriate activities that must be performed to reach those objectives, designing specific jobs […]

As an ethnic minority, Bryan sometimes faces discrimination in the workplace. He recently joined a new company, and the Human Resources personnel assured him that it adhered to EEOC policies. However, Bryan finds that though his managers are supportive and […]

Organizational rejuvenation occurs when a firm attempts to alter its own competitive strategy. Suboptimization is the process of assigning subobjectives to the various people or units in the organization based on the organizational objectives. Answer: FALSE Providing recognition for achievements […]

Forecasting is the development of proposed action to furnish sufficient and appropriate organizational resources for reaching established organizational objectives. According to Deming, employees have the primary responsibility for achieving product quality. Answer: FALSE The gossip grapevine tends to distort messages […]

Performance appraisals should emphasize how well the individual is doing the job, not the evaluator’s impression of the individual’s work habits. A budget is a single-use financial plan that covers a specified length of time. Answer: TRUE Performance appraisal is […]

A process layout is a layout pattern that groups together similar types of equipments. Certain business institutions become involved in certain social problems that are outside their normal areas of operation. This behavior is inconsistent with the Davis Model of […]

The condition that exists when organizational subobjectives conflict or are not directly aimed at accomplishing the overall organizational objectives is ________. A) diminution B) deduction C) aggregation D) suboptimization E) minimization Which of the following scenarios can be justified by […]

The last step of the strategic management process, consisting of monitoring and evaluating the strategic management process as a whole, is ________. A) strategy implementation B) strategy formulation C) strategic control D) environmental analysis E) strategic action Which of the […]

________ is an organization culture characterized by flexibility and discretion along with an external focus. A) Bureaucracy culture B) Market culture C) Clan culture D) Hierarchy culture E) Adhocracy culture Green Energy Inc. (GEI) is involved in obtaining energy from […]

Information quality refers to the degree to which information represents reality. Virtual training is a training process that goes beyond the boundaries and structure of traditional training. Answer: TRUE After actual performance has been measured and compared with established performance […]

The first major step in evaluating organizational information is to determine the expected cost of obtaining that information. One conclusion of the Hawthorne studies was that social groups in organizations could effectively exert pressure to influence individuals to disregard monetary […]

Which of the following is the first step in an organizational socialization process? A) providing initial work experiences B) recruiting new employees C) defining informal organization D) providing role models E) evaluating the cultural fit The central theme of leadership […]

The break-even point is the level of production at which the total revenue of an organization equals its total costs. When analyzing entrepreneurial opportunities, the opportunity identification step is, “Where the rubber meets the road” and often presents a difficult […]

Organization members who are citizens of one country and work in another country for an organization headquartered in still another country are known as ________. A) expatriates B) host-country nationals C) third-country nationals D) repatriates E) naturalized citizens Martha has […]

Site selection is part of input planning. The greater the degree of effectiveness and efficiency in pursuing its social responsibilities, the more socially responsive the organization is said to be. Answer: TRUE A social audit is conducted to measure the […]

One of the short-term objectives of Alport Corporation, a manufacturer of construction equipment, is “to achieve a 15 percent return on investment (ROI) by September 2011.”According to Drucker, this objective relates to ________. A) innovation B) productivity C) market standing […]

An adhocracy culture is characterized by a pyramidal structure in which leaders are considered all-important. Managers who have progressed to Donaldson’s “unconscious competence” stage will be most effective in managing a diverse workforce. Answer: TRUE GASSP’s equity principle states that […]

Making changes on a tentative basis increases resistance to organizational change. The primary investigative tool in F.W. Taylor’s research was motion study. Answer: FALSE The use of mathematical models to investigate the decision situation is typical in management science applications. […]

Which of the following characteristics is typically attributed to a creative person? A) unemotional B) orthodox C) moderately concerned with failure D) extroverted E) intolerant of ambiguity The ________ dimension of organization culture is an element of organization culture that […]

A responsibility gap exists when certain organizational tasks are not included in the responsibility area of any individual organizational member. Good communicators consult with others when planning communications. Answer: TRUE The minority group in an organization lacks critical power, resources, […]

Which of the following is a challenge associated with managing virtual offices? A) Virtual offices make it more difficult to build desired corporate culture. B) Virtual offices increase the cost of operations. C) It is suitable only for senior employees. […]

________ refer(s) to the information or skill areas of an individual or group that require further development to increase the productivity of that individual or group. A) Training needs B) Professional maturity C) Self-actualization needs D) Vocational interest E) Growth […]

A product life cycle refers to the five stages through which most products and services pass, including introduction, growth, maturity, progress, and decline. The final step in the organization process is to allocate resources and directives for subtasks. Answer: FALSE […]

Which of the following statements is true about NAFTA? A) It aims at facilitating trade among the United States, Canada, and Mexico. B) It’s members include Denmark, the United Kingdom, Portugal, the Netherlands, Belgium. C) It is an international market […]

________ occurs when an individual makes a decision that is not optimal, but is good enough. A) Loss aversion B) Satisficing C) Intuition D) Bias E) Unrealistic optimism The level of an organization’s external environment that contains components normally having […]

________ involves the recognition, evaluation, and exploitation of opportunities that create social value as opposed to personal or shareholder wealth. A) Corporate social entrepreneurship B) Intrapreneurship C) Intrepreneurship D) Corporate entrepreneurship E) Social entrepreneurship Which of the following is the […]

At which one of these stages is career plateauing generally observed ? A) exploration B) establishment C) monitoring D) maintenance E) decline Staffing an organization with nontraditional employees ________. A) hampers the organization’s ability to withstand change B) demotivates the […]

Appropriate information for one manager within an organization is usually also appropriate for another. Organizational changes typically affect the established lines of organizational communication. Answer: TRUE A manager sends an e-mail to all the employees in his department. This is […]

A multinational corporation is a company that is primarily based in one country but has continuing transactions in other countries. The phrase inappropriate human resources refers to organization members who do not make a valuable contribution to the attainment of […]

Cal appears for a battery of tests as part of a selection process that aims to fill ten positions in a certain company. He fails to clear the tests the first time around and appears for them again after three […]

Information asymmetry refers to an individual’s ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior. Pluralism refers to an environment in which differences are acknowledged, accepted, and seen as significant contributors to the […]

Arm & Hammer used sustained regeneration when it expanded the uses for baking soda by introducing it as a deodorizing ingredient in such products as toothpaste, laundry detergent, etc. Third-country nationals are organization members who are citizens of the country […]

The two popular scheduling techniques are ________. A) Gantt charts and the Delphi method B) Gantt charts and the jury of executive opinion method C) Gantt charts and the program evaluation and review technique D) the Delphi method and the […]

The path—goal theory of leadership suggests that the primary activity of a leader is to make desirable and achievable rewards available to organization members who attain organizational goals. Strategy is the end result of strategic planning. Answer: TRUE Entrepreneurial alertness […]

Illusion of control refers to the activities and investments committed to gain returns from the new product or service arising from an opportunity. The Gantt chart is a scheduling device composed of a bar chart with time on the horizontal […]

An organization with a highly competitive “a results or else” mentality can be said to follow a(n) ________. A) market culture B) adhocracy culture C) clan culture D) bureaucracy culture E) ethical culture ________ is the presentation of an undesirable […]

In the nominal group technique, group members never meet face to face. Single-use plans can be subdivided into policies, procedures, and rules. Answer: FALSE Standing plans are plans used over and over again because they focus on organizational situations that […]

Which of the following statements is true about authority? A) It is the obligation to perform assigned activities. B) It allows its holder to influence the actions of others through indirect means. C) It is the holder’s self-assumed commitment to […]

Which of the following is the first step in operating an IS properly? A) transmitting data B) determining appropriate data C) using the information D) determining information needs E) gathering appropriate data Decentralization ________. A) cuts through red tape B) […]

A stereotype is a positive or negative assessment of members of a group or their perceived attributes. One strategy for encouraging formal organizational communication is to ensure that all organization members have free access to formal communication channels. Answer: TRUE […]

Any individual or group that is directly or indirectly affected by an organization’s decisions is called a stakeholder. Motivations, status symbols, and attitudes of the other country are all important aspects of the international component of the organization’s operating environment. […]

The Delphi method of forecasting is more formal than the jury of executive opinion method and it also gathers, evaluates, and summarizes expert opinions as the basis for a forecast. Process theories of motivation are explanations that emphasize people’s internal […]

They key forecast for organizations is the sales forecast because it serves as the fundamental guideline for planning. Feasibility analysis helps entrepreneurs understand whether an idea is practical. Answer: TRUE Employee stock ownership plans motivate employees to boost production by […]

The cost of IS employees in international countries is much less than for IS employees in the United States. Gestures, vocal tones, and facial expressions are forms of nonverbal communication. Answer: TRUE Controlling is the management function through which managers […]

Venture capitalists generally make larger investments than angel investors. The management science approach emphasizes “if€€then” relationships: “If” this situational variable exists, “then” a manager probably would take this action. Answer: FALSE The four basic management functions are planning, organizing, influencing […]

In an adhocracy culture, leaders are seen more as mentors and perhaps even parent figures. The performing stage of team development is characterized by the members focusing on solving organizational problems and meeting assigned challenges. Answer: TRUE An organization with […]

________ is short-range planning that emphasizes the current operations of various parts of the organization. A) Operational planning B) Intermediate planning C) Strategic planning D) Strategic control E) Tactical planning The manager of a multinational corporation in the U.S. thinks […]

________ programs are designed to eliminate barriers and increase opportunities for underutilized or disadvantaged individuals. A) Reverse discrimination B) Affirmative action C) Ethnic nepotism D) Positive liberty E) Social Darwinism Which of the following information would be most appropriate for […]

Which stage of team development is characterized by a focus on solving organizational problems and meeting assigned challenges? A) forming B) storming C) acceptance D) performing E) adjourning An organization urges its managers to lead employees by showing them how […]

Tom’s company repairs machines only after they have malfunctioned. This is an example of ________. A) quality circle initiative B) maintenance control policy C) pure-breakdown policy D) total productive maintenance E) quality assurance initiative Follett said that coordination can be […]

A Japanese organization has just moved into the U.S. to expand its operations there. The management of the company places significant emphasis on Japanese culture and ways of working. As a result, even after moving to the U.S., the company […]

Graicunas’s formula is as follows: C = n( + n- 1). What does C stand for in this formula? A) the total number of departments possible in an organization B) the appropriate number of subordinates a manager can have C) […]

Which of the following approaches to management was advocated by Henry Gantt? A) the contingency approach B) using mathematical models to investigate the decision situation C) using human relations skills to manage workers D) work specialization and unity of command […]

It is recognized today that the bureaucratic approach without an appropriate emphasis on the human variable is almost certainly a formula for organizational failure. Decisions made through consensus usually take up lesser time than those made by a single individual. […]