Pre Assessment for All Chapters
TRUE/FALSE
1. Managers are responsible for doing the basic work in the company.
2. The classical functions of management are (1) making things happen, (2) meeting the competition, (3)
organizing people, projects, and processes, and (4) leading.
3. Top managers are responsible for creating a context for change in the organization.
4. Companies look for a total of four sets of skills in individuals to identify potential managers. These
desired skills are technical skills, human skills, conceptual skills, and motivation to manage.
5. Upper-level managers may actually spend more time dealing with people than lower-level managers.
6. Management ideas and practices have actually been used from the earliest times of recorded history.
7. Frederick Taylor was the father of systems management.
8. A Gantt chart can be used to track informal communication paths.
9. Human relations management focused on managers’ roles and authority.
10. External environments are the forces and events outside a company that have the potential to influence
or affect it.
11. The two kinds of external organizational environments are the general environment that affects all
organizations and the specific environment that is unique to each company.
12. Ethics is the set of moral principles or values that defines right and wrong for a person or group.
13. Kohlberg’s three phases of moral development in order are law and order, instrumental exchange, and
universal principle.
14. There is general agreement regarding what is socially responsible corporate behavior.
15. S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely.
16. Tactical plans specify how a company will use resources, budgets, and people to accomplish specific
goals within its strategic objective.
17. The same techniques for managing innovation work equally as well after technological discontinuities
as during periods of incremental change.
18. Resistance to change results from organizational factors, such as the absence of promotion guidelines,
bonuses, and praise.
19. In the decision-making process, teams can do a much better job than individuals in defining the
problem and generating alternative solutions.
20. Structural accommodation means giving teams the ability to change organizational structures, policies,
and practices if it helps them meet their stretch goals.
21. Human resource management (HRM) is the process of finding, developing, and keeping the right
people to form a qualified work force.
22. Background checks can be used to verify the truthfulness and accuracy of information that applicants
provide about themselves.
23. There are no legally mandated employee benefits.
24. Affirmative action is required by law for all private employers, and diversity is voluntary.
25. Research has shown that performance capabilities decline with age.
26. In general, extrinsic rewards are more important to workers than intrinsic rewards.
27. Distributive justice refers to the perceived fairness of the process used to make reward allocation
decisions.
28. One of the differences between managers and leaders is that managers focus on visions, missions,
goals, and objectives, and leaders focus solely on productivity and efficiency.
29. According to the normative decision theory, using the right degree of employee participation improves
the quality of decisions and the extent to which employees accept and are committed to decisions.
30. Benchmarking is the process of setting corporate norms.
31. One significant advantage of economic value added (EVA) is that it clearly specifies what managers
should or should not do to improve financial performance.
32. Raw data contain useful information that communicate a clear and readily understandable message to
the person for which the data were gathered.
33. Unsupervised data mining is unethical.
34. Two common measures of productivity are extrinsic productivity and intrinsic productivity.
35. The first step in the service-profit chain is external service quality or the quality of treatment that
employees receive from a company’s internal service providers.
MULTIPLE CHOICE
1. A manager striving to improve organizational __________ is accomplishing tasks that help fulfill
organizational objectives.
a.
efficiency
b.
effectiveness
c.
functionality
d.
synergy
e.
productivity
2. A manager engaged in the management function of __________ is monitoring progress toward goal
achievement and taking corrective action when needed.
a.
planning
b.
organizing
c.
leading
d.
controlling
e.
motivating
3. Typical responsibilities for __________ include setting objectives consistent with organizational goals
and then planning and implementing the subunit strategies for achieving these goals.
a.
top managers
b.
shift supervisors
c.
first-line managers
d.
team leaders
e.
middle managers
4. Managers who train and supervise the performance of nonmanagerial employees, and who are directly
responsible for producing the company’s products or services, are categorized as:
a.
general managers
b.
middle managers
c.
first-line managers
d.
team leaders
e.
top managers
5. Which type of skills tends to be most important to the success of lower-level managers?
a.
decisional skills
b.
human skills
c.
conceptual skills
d.
motivation to manage
e.
technical skills
6. The sales manager is in charge of monitoring the expense accounts of her sales force. In this decisional
role, she acts as a(n):
a.
resource allocator
b.
entrepreneur
c.
disturbance handler
d.
monitor
e.
disseminator
7. Which skills increase in their importance to success as managers rise through the managerial ranks?
a.
human skills and decisional skills
b.
informational skills and the motivation to manage
c.
conceptual skills and the motivation to manage
d.
conceptual skills, technical skills, and human skills
e.
human skills and informational skills
8. Which of the following statements about the origins of management is true?
a.
Job enrichment was developed during the last half of the twentieth century.
b.
Management as a field of study is only about 125 years old.
c.
Information management appeared with the first computers.
d.
The use of management functions would have made the building of the Egyptian pyramids
more efficient.
e.
All of the above statements about the origin of management are true.
9. Frederick Taylor is famous for:
a.
developing time and motion studies
b.
first defining the functions of managers
c.
developing the 14 principles of management
d.
creating the principles of scientific management
e.
doing all of these
10. Frank and Lillian Gilbreth are important to management because they:
a.
used motion studies to eliminate unnecessary or repetitive motions from the work process
b.
proved the effectiveness of nonfinancial motivators in convincing workers to strive for
organizational goals
c.
realized how the principles of sociology applied to worker performance
d.
viewed the organization as a system that influenced its environment and that was
influenced by its environment
e.
identified the four functions managers perform
11. At about the same time as management theorists were developing scientific management principles in
the United States, Max Weber was in Europe developing:
a.
human relations management
b.
group dynamics theory
c.
systems management
d.
contingency management
e.
bureaucratic management
12. According to Henri Fayol’s 14 principles of management, _____ requires that each employee should
report to and receive orders from just one boss.
a.
unity of direction
b.
centralization
c.
vertical authority
d.
span of management
e.
unity of command
13. In a departure from mainstream management thinking, Mary Parker Follett believed:
a.
rules and procedures should be applied without favoritism
b.
group dynamics produces positive peer pressure
c.
conflict could be beneficial
d.
work specialization was the key to efficiency
e.
pay should be performance-based
14. _____ involves managing the daily production of goods and services.
a.
Operations management
b.
Resource management
c.
Systems management
d.
Contingency management
e.
Bureaucratic management
15. A systems view of management allows managers to:
a.
deal with the complex environment in which their companies operate
b.
manage employee attendance
c.
communicate efficiently
d.
store and retrieve all types of information
e.
eliminate production bottlenecks
16. In terms of environmental complexity, __________ environments have few environmental factors,
whereas __________ environments have many environmental factors.
a.
non-competitive; competitive
b.
simple; complex
c.
stable; dynamic
d.
scarce; abundant
e.
market-oriented; product-oriented
17. Which of the following is a component of Volkswagen’s specific environment and will directly
influence how it does business?
a.
Renault, a French car maker
b.
laws concerning air bags
c.
inflation
d.
gasoline prices
e.
the fact consumers are buying fewer SUVs
18. __________ is used to refer to a company’s practice of identifying and addressing customer trends and
problems after they occur.
a.
Consumer confidence forecasts
b.
Competitive analysis
c.
Reactive customer monitoring
d.
Proactive customer monitoring
e.
Continuous data mining
19. __________ involves deciding who your competitors are, anticipating competitors’ moves, and
determining competitors’ strengths and weaknesses.
a.
Competitive mapping
b.
A market audit
c.
A SWOT analysis
d.
A proactive strategy
e.
A competitive analysis
20. A key factor influencing the relationship between companies and their suppliers is:
a.
how dependent they are on each other
b.
how much they know about each other
c.
how compatible their organizational cultures are
d.
the type of product being manufactured
e.
all of these
21. The first step managers use to make sense of their changing environments is:
a.
environmental scanning
b.
perceptual re-engagement
c.
modifying budgets
d.
downsizing
e.
benchmarking
22. The __________ is the set of key values, beliefs, and attitudes shared by organizational members.
a.
industry code of ethics
b.
internal environment
c.
organizational culture
d.
organizational strategy
e.
organizational vision
23. __________ is/are a primary source of organizational culture.
a.
The company’s founder
b.
The organization’s competitive strategy
c.
The industry in which the organization operates
d.
Employees
e.
Customers
24. Which of the following is a characteristic of successful organizational cultures?
a.
adaptability
b.
consistency
c.
involvement
d.
a clear vision
e.
all of these
25. Managers can use behavioral addition and behavioral substitution to:
a.
create benchmarks
b.
assess the threats and opportunities in the internal environment
c.
develop new products
d.
locate new markets for existing products
e.
modify corporate culture
26. __________ is unethical behavior that violates organizational norms about right and wrong.
a.
Workplace deviance
b.
Organizational deviance
c.
Social irresponsibility
d.
Social deviance
e.
An ethical dilemma
27. The __________ determined that companies can be prosecuted and punished for the illegal or
unethical actions of employees, even if management didn’t know about the unethical behavior.
a.
U.S. Sentencing Commission Guidelines
b.
U.S. Supreme Court
c.
U.S. Department of Labor
d.
U.S. Equal Employment Opportunity Commission
e.
Federal Trade Commission
28. What is the term used to describe the degree of concern people have about an ethical issue?
a.
Ethical intensity
b.
Social consensus
c.
Temporal immediacy
d.
Magnitude of consequences
e.
Ethical valence
29. Which of the following principles of ethical decision making would support the practice of “looking
after number one”?
a.
the principle of long-term self-interest
b.
the principle of personal virtue
c.
a discretionary code of ethics
d.
a utilitarian code of ethics
e.
the equity principle
30. Historically, __________ responsibility means making a profit by producing a product valued by
society. It has been business’s most basic social responsibility.
a.
discretionary
b.
ethical
c.
legal
d.
fiscal
e.
economic
31. What is social responsibility?
a.
a business’s obligation to pursue policies, make decisions, and take actions that benefit
society
b.
a business tactic used to create relationship bonds with customers
c.
what companies are obliged legally to do to protect their external environments
d.
a business’s responsibility to its shareholders
e.
the fact businesses are responsible for monitoring their social environments so they can
satisfy the needs of their customers
32. According to Milton Friedman, which of the following is a position opposing the stakeholder model of
corporate social responsibility?
a.
Organizations can act effectively as moral agents for all company shareholders.
b.
The time, money, and attention diverted to social causes undermine market efficiency.
c.
It is socially responsible for companies to divert their efforts to social causes.
d.
The marketplace will ultimately determine the importance of social causes.
e.
All of these positions are in accordance with the beliefs of Milton Friedman.
33. Secondary stakeholders are important to a company because:
a.
it depends on them for long-term survival
b.
they can affect public perceptions and opinions
c.
the company is endangered by a termination of their relationship
d.
they have the direct power to control management decisions
e.
they create an awareness of overt organizational integrity
34. Managers can monitor __________ to track progress toward goal achievement.
a.
action plans and their implementation
b.
proximal and distal goals
c.
one-way and two-way evaluative techniques
d.
framing and non-framing goals
e.
open-ended and close-ended techniques
35. __________ can help organizations to maintain flexibility as they plan.
a.
Environmental munificence
b.
Learning-based planning and options-based planning
c.
Formalization
d.
Liaisons
e.
Group cohesiveness
36. Top management is responsible for developing long-term __________ that make clear how the
company will serve customers and position itself against competitors in the next two to five years.
a.
standing plans
b.
tactical plans
c.
operational plans
d.
strategic plans
e.
mission statements
37. Management by objectives (MBO) is a management technique often used to develop and carry out:
a.
single-use plans
b.
standing plans
c.
operational plans
d.
tactical plans
e.
hierarchical plans
38. Which of the following is the most specific type of standing plan?
a.
Policies
b.
Procedures
c.
rules and regulations
d.
Forecasts
e.
MBO plans
39. The first step in rational decision making is to:
a.
conduct a systematic environmental analysis
b.
define the problem
c.
evaluate the alternatives
d.
choose the solutions
e.
create a management team
40. One method of weighting decision criteria uses ______, which is a process where each decision
criterion is compared directly to every other criterion.
a.
absolute comparisons
b.
relative comparisons
c.
valences
d.
minimum threshold rule
e.
comparative ranking scales
41. As managers try to take a rational approach to decision making, they must contend with bounded
rationality, which means they are restricted by:
a.
real-world constraints
b.
benchmarking
c.
methodology validity
d.
information overload
e.
all of these
42. __________ occurs when managers choose an alternative that is good enough, rather than the best
possible alternative.
a.
Maximizing
b.
Optimizing
c.
Availability bias
d.
Negative frame
e.
Satisficing
43. The __________ approach to decision making is a method in which an individual or a subgroup is
assigned the role of a critic.
a.
dialectical inquiry
b.
groupthink
c.
devil’s advocacy
d.
Delphi
e.
dyadic communications
44. Which of the following is a condition that must be met if a firm’s resources are to be used to achieve a
sustainable competitive advantage?
a.
differentiation
b.
imperfectly imitable resources
c.
diversification
d.
entrepreneurial orientation
e.
a matrix organizational structure
45. The first step in the strategy-making process is to:
a.
assess the need for strategic change
b.
conduct a situation analysis
c.
choose strategic alternatives
d.
evaluate the impact of changes on the internal environment
e.
create a strategic budget
46. In a situational analysis, a strategic group is a group of __________ that top managers choose for
comparing, evaluating, and benchmarking their company’s strategic threats and opportunities.
a.
non-industry-specific companies
b.
expert managers
c.
trade journals and other relevant periodicals
d.
other firms within an industry
e.
consulting firms that use the Delphi technique
47. Which of the following is a mechanism used to examine external threats and opportunities facing a
firm as well as its internal strengths and weaknesses?
a.
organizational scanning
b.
internal marketing
c.
shadow-strategy task forces
d.
benchmarking
e.
a situation analysis
48. In any organization, the __________ are the less visible, internal decision-making routines,
problem-solving processes, and organization cultures that determine how efficiently inputs can be
turned into outputs.
a.
imperfectly imitable resources
b.
valuable resources
c.
distinctive competencies
d.
core capabilities
e.
sources of innovation
49. The term __________ refers to the overall organizational strategy that addresses the question “What
business or businesses are we in or should we be in?”
a.
firm-level strategy
b.
corporate-level strategy
c.
industry-level strategy
d.
portfolio strategy
e.
vision
50. The __________ is a portfolio strategy that managers use to categorize their corporation’s businesses
by growth rate and relative market share. This strategy them to decide how to invest corporate funds.
a.
investment matrix
b.
SWOT matrix
c.
BCG matrix
d.
portfolio management matrix
e.
Maslow grid
51. The research on diversification in portfolio management indicates that the best approach is probably:
a.
related differentiation
b.
related diversification
c.
unrelated diversification
d.
repositioning
e.
no diversification
52. Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or
manufacturing plants, or closing or selling entire lines of products or services would be characteristic
of a __________ strategy.
a.
portfolio
b.
retrenchment
c.
stability
d.
firm-level
e.
rehabilitation
53. According to Michael Porter, five industry forces determine an industry’s overall attractiveness and
potential for long-term profitability. Which of the following is one of those forces Porter identified?
a.
existence of complementary products
b.
organizational structure
c.
existing benchmarks
d.
span of management
e.
bargaining power of suppliers
54. An organization implementing a(n) ____________________ strategy would NOT follow a consistent
strategy.
a.
defender
b.
pioneer
c.
analyzer
d.
reactor
e.
prospector
55. Resource similarity and __________ are factors that determine the extent to which firms will be in
direct competition with each other.
a.
market commonality
b.
resource similarity
c.
related diversification
d.
product differentiation
e.
customer autonomy
56. A company has experienced organizational __________ when its form, quality, or condition changes
over time.
a.
innovation
b.
development
c.
change
d.
reengineering
e.
manipulation
57. A technology __________ begins with the “birth” of a new technology and ends when that technology
reaches its limits and “dies” as it is replaced by a newer, substantially better technology.
a.
process
b.
pattern
c.
cycle
d.
hierarchy
e.
continuum
58. Patterns of innovation over time that can create sustainable competitive advantage are called:
a.
innovation maps
b.
organization development
c.
results-driven change
d.
innovation streams
e.
cyclical inventions
59. Which of the following is NOT one of the components of creative work environments?
a.
challenging work
b.
group compensation
c.
freedom
d.
supervisory encouragement
e.
organizational encouragement
60. The __________ approach to managing innovation assumes that innovation is a predictable process
made up of a series of steps and that compressing the time it takes to complete those steps can speed
up innovation.
a.
compression
b.
milestones
c.
dialectical
d.
generational
e.
prototypical
61. The first stage of organizational decline is:
a.
crisis
b.
inaction
c.
blinded
d.
faulty action
e.
dissolution
62. Which of the following is one of the three steps in the basic process of managing organizational
change outlined by Kurt Lewin?
a.
unfreezing
b.
organizational dialogue
c.
change definition
d.
incremental change
e.
change mentoring
63. According to John Kotter’s analysis of the errors managers make when leading change, the first and
potentially most serious of these errors is:
a.
not establishing a great enough sense of urgency
b.
declaring victory too soon
c.
not anchoring changes in the corporation‘s culture
d.
not removing obstacles to the new vision
e.
a poorly designed organizational mission
64. The General Electric workout is a special kind of:
a.
activity-oriented change
b.
results-driven change
c.
generational change
d.
vision-driven change
e.
resources-driven change
65. Which of the following approaches is aimed at changing large systems, small groups, or individuals?
a.
General Electric workout
b.
the functional approach to change
c.
organizational development
d.
results-driven change
e.
Lewin’s change synthesis
66. Global business:
a.
is the buying and selling of goods and services to people from different countries
b.
includes any sale of goods and services
c.
only involves companies with more than 50 employees
d.
refers to sales made to people from different cultures, different regions, and different
nations
e.
is unregulated
67. The two general kinds of trade barriers are:
a.
government import standards and industry import standards
b.
qualitative and quantitative barriers
c.
voluntary and involuntary barriers
d.
nationalistic and geocentric barriers
e.
tariff barriers and nontariff barriers
68. The General Agreement on Tariffs and Trade (GATT):
a.
replaced the United Nations court system
b.
eliminated government subsidies
c.
eliminated tariffs in ten specific industries
d.
operated in a fashion similar to the Chamber of Commerce
e.
did all of these
69. One of the major questions that a company must typically answer once it has decided to go global is:
a.
How many additional employees will the company need?
b.
To what extent should the company standardize or adapt business procedures?
c.
To what extent should a company abide by global or regional trade agreements?
d.
Will the organization’s mission statement need to be changed?
e.
How many new shareholders will be influenced by global activities?
70. Which of the following represents the correct sequence for the phase model of globalization?
a.
exporting; wholly owned affiliates; cooperative contracts; strategic alliances
b.
exporting; cooperative contracts; wholly owned affiliates; strategic alliances
c.
exporting; cooperative contracts; strategic alliances; wholly owned affiliates
d.
exporting; strategic alliances; cooperative contracts; wholly owned affiliates
e.
home country sales; exporting; job ventures; strategic alliances, and direct investment
71. Managing global joint ventures can be difficult because they:
a.
represent a merging of four cultures
b.
increase the number of tariffs that have to be paid
c.
can only be used by large companies that already have an international presence
d.
use local consistency in marketing
e.
do all of these
72. A country or region that has an attractive business climate for companies that want to go global has:
a.
a large population of unskilled workers
b.
an effective and cost-efficient place to build an office or manufacturing site
c.
a small youth population
d.
natural boundaries
e.
all of these
73. Two factors help determine the growth potential of foreign markets. They are foreign competition
and:
a.
communications and transportation systems
b.
purchasing power
c.
political stability
d.
creative differences
e.
product diffusion rate
74. What are the strategies that can be used to minimize or adapt to the political risk inherent to global
business?
a.
protectionist, avoidance, and offensive strategies
b.
creative, cooperative, and defensive strategies
c.
cooperative, customary, and nationalistic strategies
d.
avoidance, protectionist, and guerrilla strategies
e.
control, avoidance, and cooperative strategies
75. Hofstede’s research has shown there are:
a.
no cultural differences among nations in which Spanish is the national language
b.
two distinct methods for dealing with cultural differences—adaptation and continuation
c.
direct relationships existing between type of infrastructures and growth potential
d.
five consistent dimensions of cultural differences across countries
e.
four factors upon which a company should base its decision to globalize
76. An expatriate is someone who:
a.
claims dual citizenship
b.
lives and works outside of his or her own country
c.
believes strongly in nationalization
d.
is unhappy with his or her present residence
e.
desires to be employed in a country outside of his or her own
77. The evidence clearly shows that __________ is the most important factor in determining the success or
failure of an international assignment.
a.
the amount of language training provided to the expatriate
b.
the amount of cross-cultural training provided to the expatriate
c.
how well an expatriate’s spouse and family adjust to the foreign culture
d.
how willing the expatriate was to accept the foreign assignment
e.
the similarity of the foreign language to the expatriate’s native language
78. __________ is the vertical and horizontal configuration of departments, authority, and jobs within a
company.
a.
Departmental mapping
b.
Organizational charting
c.
Organizational structure
d.
Organizational configuration
e.
Functionalization