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 entirety.
Frederick W. Taylor is commonly called the “father of scientific management.”
The Davis Model of Corporate Social Responsibility proposes businesses to operate as
two-way open systems, with open receipt of inputs from society and open disclosure of
operations to the public.
Domestic organizations essentially operate within a single country.
Operational control decisions relate to determining organizational objectives and
designating the corresponding action necessary to reach them.
Inventory turnover ratio is a profitability ratio used in organizations.
The utilitarian principle advocates the view that people should act in a way they would
expect others to act toward them.
Functional authority consists of the right to give orders within a segment of the
organization in which this right is normally nonexistent.
The next step in the human resource planning process, after taking a human resource
inventory, is determining net human resource requirements.
Groupthink is a group decision-making process in which negative feedback on any
suggested alternative by any group member is forbidden until all members have
presented alternatives that they perceive as valuable.
A major drawback of the VYJ model is that it cannot be used for determining when a
leader should use which decision style.
A system is a flow of interrelated events toward a goal, purpose, or end.
Which of the following statements is an instance of stereotyping?
A) Jerry’s Garage has an unwritten policy not to hire Hispanic workers as the
management believes that they are unreliable.
B) PBJ Inc. only hires candidates with a high-school diploma as the company processes
require a certain level of literacy.
C) Sunshine Sales hires a majority of Spanish-speaking salespeople, as it has a large
market among the Hispanic population.
D) The U.S. branch of Golden Dragon Productions prefers to hire Chinese workers as
the management feels that they best reflect the organization values.
E) Divya’s Designs is a bridal boutique that focuses on Indian outfits and caters mainly
to Indian clientele.
________ refer to all the organizational assets available for activation during the
production process.
A) Supplies
B) Plans
C) Technologies
D) Strategies
E) Resources
D&B Inc., conducted a review of its organizational practices, and concluded that
changes to the current system would result in increased efficiency. The company
proposed a change in work timings and remuneration policies and implemented it for a
trial period. When the employees were surveyed by their managers to discover their
reaction to the changes, most employees noted that the new system boosted
productivity, though a few reported that accommodating to the new system was
difficult. However, management decided to go ahead and implement the new system.
The actions of the management can be explained by Fayol’s principle of ________.
A) unity of command and direction
B) lowering the importance of the subordinate role
C) subordination of the individual to the general interest
D) specialization of work
E) esprit de corps
Each manager in an organization possesses certain amounts of authority. For example,
the president possesses the most authority; the first-line supervisor, the least. According
to Fayol, this is known as ________.
A) unity of command
B) esprit de corps
C) scalability of tenure
D) the scalar chain
E) decentralization
Which of the following is a trait of “tethered in office” work arrangement?
A) Employees are not allocated permanent office spaces.
B) Employees remain in the office most of the time and work from home occasionally.
C) Employees are allowed to move out office for a few days or weeks.
D) Employees are expected to report to the office on a regular basis though they have
mobility.
E) Employees report to the office only occasionally though they obey all the
organizational norms.
Bill, manager in an IT company assumes his team members are inherently lazy, dislike
work, and will avoid work if they can. He believes that his team members need to be
closely supervised and comprehensive systems of controls developed. He also relies
heavily on threat and coercion to gain their compliance. Bill is a ________ manager.
A) Theory Z
B) Type A personality
C) Theory X
D) Theory Y
E) Type B personality
Maslow’s Hierarchy of Needs has been criticized because ________.
A) it is questionable whether human needs can be arranged in such a hierarchy
B) the model is too complicated
C) no one ever reaches self-actualization
D) research suggests that esteem needs should be above all other needs
E) it is too objective a description of human needs
Leaders in an organization with a hierarchy culture tend to focus on ________.
A) informal work practices
B) relationships with all stakeholders in the market
C) decentralization and increasing cohesion among members
D) coordination and organization
E) innovation and commitment to cost containment
Which of the following conflict resolution techniques assumes that some conflicts are
win-win conflicts?
A) avoiding
B) compromising
C) forcing
D) negotiating
E) resolving
How can managers promote formal organizational communication?
A) by listening attentively to messages that come through formal channels
B) by eliminating informal communication channels in the organization
C) by instituting a circular pattern of organizational communication
D) by strictly regulating employee access to formal communication channels
E) by using low involvement channels instead of high involvement channels
Which of the following is an advantage of departmentalizing by matrix?
A) It clarifies the power structure within the firm.
B) It helps employees prioritize responsibilities.
C) It allows organizations to focus on several projects simultaneously.
D) It facilitates coordination across projects.
E) It allows firms to achieve unity of command.
________ refers to the process by which firms undertake strategic and tactical actions
and how competitors respond to these actions.
A) Strategic control
B) Environmental analysis
C) Competitive dynamics
D) Strategy implementation
E) SWOT analysis
Which of the following observations is consistent with the “ten commandments of good
communication”?
A) All communications should be planned by the sender alone.
B) Focus more on the content than the overtones in communication.
C) Avoid communication if the receiver cannot perceive it correctly.
D) Always plan communications with the past in mind.
E) Convey as much information as possible in each communication.
The primary function of the Office of Federal Contract Compliance Programs is to
ensure that employers holding federal contracts ________.
A) abide by the safety and health regulations of the Occupational Safety and Health
Administration
B) improve safety conditions for workers by enforcing all safety and equipment
standards
C) grant equal employment opportunity to people regardless of their race or sex
D) strive to reduce consumer misunderstanding of its products
E) abide by the environmental standards enforced by the Environment Protection
Agency
According to Maslow’s Hierarchy of Needs, once someone has fulfilled his social
needs, he would then be motivated to meet his ________.
A) security needs
B) self-actualization needs
C) esteem needs
D) physiological needs
E) safety needs
Lower-level management analysis concentrates on the “one best way” to perform a task.
The process of finding this “one best way” is known as ________.
A) higher-level management
B) contingency management
C) comprehensive management
D) scientific management
E) system management
________ is defined as the process of determining how the organization will achieve its
objectives, or get where it wants to go.
A) Influencing
B) Organizing
C) Planning
D) Controlling
E) Implementing
________ and ________ have been called the “Siamese twins of management.”
A) Setting standards; measuring performance
B) Managing; leading
C) Planning; controlling
D) Problems; symptoms
E) Organizing; controlling