A key difference between Fayol’s and Mintzberg’s view of management is that Fayol’s
view was based on empirical observations of managers in action.
A utilitarian view of ethics focuses on consequences and the greatest good for the
greatest number of people.
The first wave of offshoring began in the 1990s with the exodus of service-sector jobs
in credit card processing, software code writing, accounting, health care, and banking
services.
The behaviors required for successful team performance cannot be gained through
training.
A corporate strategy may be a growth strategy, a stability strategy, or a renewal strategy.
A queuing theory analysis for bank teller windows comes up with a value of 0.10 for P,
indicating that customers are likely to wait about 10 minutes for each transaction.
Negative reinforcement is the withdrawal of something unpleasant.
A worker with an external locus of control would tend to blame failure on him- or
herself.
One of the strengths of a simple structure is that it is flexible.
Vroom’s expectancy theory would say that a worker with a higher expectation of
performance will apply more effort to a job.
The 360-degree appraisal includes evaluations from multiple people who interact with
the employee.
An entrepreneurial venture’s advertising strategy would be included in the description
of the business section of a full business plan.
Research shows that men and women value different levels of flexibility and autonomy
in their jobs.
This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and
competitive strategies CA1, CA2, and CA3 for the Large Company. From Bigg’s point
of view, the S3 maximum regret is 1.
Contemporary approaches to management see the organization as a closed system in
which all inputs and outputs stay within the system.
Human resource management activities are restricted to the operational level and do not
have an impact on organizational strategy or design.
Partners in a value chain management system need to be able to both learn from and
educate other partners in the value chain.
Behavioral interviews involve placing an applicant in stressful circumstances and
seeing how he or she deals with the situation.
Organizations that implement flextime programs allow employees to work at home for
some of the work day.
A leader who ranks 9,9 in the Managerial Grid would have more concern for people
than production.
Selection is important in the success of a team.
W. Edwards Deming’s ideas about quality and management were first embraced by
Japanese companies.
Time deadlines tend to increase innovation.
The goal of the economic order quantity (EOQ) model is to maximize the total costs
that are categorized as carrying costs and ordering costs.
One reason people resist change is that it goes against our habits.
A selection device is valid if it can be proven to accurately measure the abilities of job
applicants.
Disruptive effects of diversity on team performance can decline over time.
Fayol thought that allowing employees to originate their own plans would increase
motivation.
Power is a right that a manager has when he or she has a higher rank in an organization.
The boundaries of the global village are drawn by the major economic powers–the
United States, China, and Japan.
Most job training does not take place on the job.
A small business manager in many ways combines the roles of top manager and
first-line manager in a large business.
Individuals try to reconcile attitudes and behavior so they are both rational and
consistent.
What kind of a manager is Don likely to be?
A) first-line manager
B) CEO of a major corporation
C) low-level middle manager
D) plant manager
The most important conclusion from the leader-participation model is that ________.
A) a leader must keep the same leadership style no matter what the situation is
B) a leader must change his or her leadership style depending on the situation
C) a leader must try to change the situation if it does not suit his or her leadership style
D) all situations are similar
One key difference between an entrepreneurial venture and a small business is that the
entrepreneurial venture focuses on ________.
A) productivity
B) efficiency
C) quality
D) innovation
Fixed costs for a product are $50,000. The product itself sells for $5.00 and it costs
$3.00 to make each product. What is the break-even point for the product?
A) 100,000
B) 10,000
C) 50,000
D) 25,000
What is a weakness of a simple structure?
A) Duplication of activities and resources increases costs and reduces efficiency.
B) Functional specialists become insulated and have little understanding of what other
units are doing.
C) Pursuit of functional goals can cause managers to lose sight of what is best for the
overall organization.
D) Reliance on a single person is risky.
The decision tree shows the profit outcomes for a coffee shop in a strong and a weak
economy for next year. Suppose a third outcome is considered in which a moderate
economy is 33 percent likely to occur. With this added outcome, how does the
probability of a weak economy change?
A) A weak economy is now 73 percent likely.
B) A weak economy is also 33 percent likely.
C) A weak economy is now 40 percent likely.
D) A weak economy is now 0 percent likely.
Planning gives organizations direction that primarily helps them ________.
A) improve teamwork and coordinate activities
B) improve their image in the business community
C) improve morale of middle managers
D) improve morale of all employees
In the twenty-first century, managers increasingly need to consider their plans as
________.
A) highly explicit recipes that must be scrupulously followed
B) a vague philosophy that should not interfere with actions
C) flexible road maps with destinations that may change
D) rigid road maps with a single destination
Which kind of electronic meeting format allows participants access to verbal
communication that includes voice intonation but no body language?
A) teleconferencing
B) videoconferencing
C) electronic data interchange
D) face-to-face meeting
Of the following, which is the lowest level of management?
A) a nonmanagerial employee
B) an individual involved in defining the organization’s philosophy
C) a vice president
D) a middle manager
A light-hitting baseball player who is suddenly asked to be a power hitter and hit home
runs would be likely to experience ________ stress.
A) role overload
B) role demand
C) role conflict
D) role ambiguity
In a means-ends chain, a goal at a lower level ________.
A) is the bridge to a goal at the next higher level
B) is attained only after higher level goals are fulfilled
C) is separate from the goal at the next higher level
D) is ignored if goals at higher levels are attained
Today, managers favor this approach with regard to work specialization.
A) All tasks are performed by all employees to promote fairness.
B) Partners switch jobs every half hour to overcome boredom.
C) Employees specialize to maintain efficiency.
D) Monotonous tasks are shared by all employees to prevent perceived favoritism.
If a person who is always late for work is late once again and blames it on a traffic jam,
coworkers would probably attribute that person’s lateness to ________.
A) traffic
B) an external source
C) an internal source
D) his or her car
This payoff matrix gives potential dollar gain values in thousands for strategies S1, S2,
S3, and S4 for Sam’s Pizza and competitive strategies CA1, CA2, and CA3 for Pam’s
Pizza. If Sam chooses S4, how is he feeling about the business climate?
A) Sam is feeling optimistic because he has chosen a maximax strategy.
B) Sam is feeling pessimistic because he has chosen a maximin strategy.
C) Sam is feeling optimistic because he has chosen a maximin strategy.
D) Sam is feeling pessimistic because he has chosen a maximax strategy.
In a ________, employees are recruited from functional departments to work on a
specific project for a limited time period.
A) team structure
B) divisional structure
C) product structure
D) matrix structure
One managerial function that is identical in both Fayol’s and Mintzberg’s systems is
________.
A) leader
B) resource allocator
C) monitor
D) negotiator
In PERT, the time difference between the critical path and any other path is called
________.
A) slack time
B) critical time
C) network time
D) lost time
The breadth of a plan refers to ________ concerns.
A) long-term versus short-term
B) strategic versus tactical
C) specific versus directional
D) single use versus standing
According to Lewin, which of the following is the best way to unfreeze the status quo?
A) increase restraining forces
B) decrease restraining forces and increase driving forces
C) decrease driving forces
D) increase restraining forces and increase driving forces
How many management functions were originally proposed by Henri Fayol?
A) three: plan, organize, lead
B) four: plan, organize, lead, control
C) five: plan, organize, command, coordinate, control
D) ten: 3 interpersonal, 3 informational, 4 decisional
Taco Rocket (Scenario)
Imagine that you are the president of Taco Rocket, a new and successful chain of 8
Mexican fast-food restaurants. The success you have experienced in the last 5 years has
you thinking of what to do with the business next. Should you expand the business at
the current rate? Open new and different restaurants? What?
You are thinking of buying a tortilla factory in a nearby state. This action would be an
example of ________.
A) forward vertical integration
B) horizontal integration
C) backward vertical integration
D) forward diversification
You would expect an undeveloped country like ________ to have a predominately
________ economy.
A) Laos; nonservice
B) Laos; service
C) Great Britian; manufacturing
D) Belgium; nonservice
Which category of follower is considered to be able but unwilling to complete a task?
A) R1
B) R2
C) R3
D) R4
A key to what is commonly used to assess risk is for a decision maker to examine the
________ an investment.
A) promises made by a company for
B) ads posted by a company for
C) historical data for
D) minor details of
After four years, ________ business.
A) 56 percent of entrepreneurial ventures are out of
B) 56 percent of entrepreneurial ventures are still in
C) 31 percent of entrepreneurial ventures are out of
D) two-thirds of entrepreneurial ventures are out of
A manager wants to invest in one of three start-up companies. All three of the
companies seem to have a good business plan. None of the companies has a track
record. The manager is operating under which condition?
A) uncertainty
B) certainty
C) low certainty
D) risk
All of the following are examples of informational roles according to Mintzberg
EXCEPT ________.
A) entrepreneur
B) monitor
C) disseminator
D) spokesperson
Fiedler assumed a person’s leadership style ________.
A) is contingent on the situation
B) is variable
C) evolves over time
D) is fixed
Harvesting an entrepreneurial venture occurs when the venture ________.
A) has a hit product
B) is successful
C) is sold
D) becomes profitable
Which of the following is an internal force that can cause a company to make an
organizational change?
A) a new ad campaign
B) new safety requirements
C) a new rival company
D) new pollution laws
A global village can be best characterized as a business climate in which there are
________.
A) rigid international boundaries
B) no international boundaries
C) rigid rules and standards
D) no rules or standards
Which of the following is NOT a factor that should influence compensation and
benefits?
A) gender
B) seniority
C) geographical location
D) employee performance levels
In a short essay, explain what a value chain is.
In a short essay, describe the University of Iowa leadership studies.
In a short essay, explain the ways that groups can “meet” through technology to
communicate and share information.
In a short essay, discuss environmental scanning and competitive intelligence.
In a short essay, describe transactional and transformational leaders.
In a short essay, explain how people can be an obstacle to effective management of a
value chain.
In a short essay, explain the three types of organizational change.
In a short essay, describe the steps a company takes in going global.
In a short essay, define and describe operations management.
In a short essay, explain how selective perception can serve as a barrier to effective
communication.