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Managers and Managing

Organizations
collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired
future outcomes.
Management
the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals
efficiently and effectively.
organizational performance
a measure of how efficiently and effectively a manager uses resources to satisfy customers and organizational goals.
efficiency
a measure of how productively resources are used to achieve a goal.
effectiveness
a measure of the appropriateness of the goals an organization is pursuing and of the degrees to which the
organization achieves those goals.
planning
identifying and selecting appropriate goals. one of the four principal tasks of management.
strategy
a cluster of decisions about what goals to pursue, and how to use resources to achieve goals.
organizing
structuring working relationships so organizational members work together to achieve organizational goals, one of the
four principle tasks of management.
organizational structure
a formal system of task and reporting relationships that coordinates and motivates organizational members so that
they work together to achieve organizational goals.
leading
articulating a clear vision and energizing and enabling organizational members so that they understand the part they
play in achieving goals. one of the four principle tasks of management.
controlling
evaluating how well an organization is achieving its goals and taking action to maintain or improve performance. one
of the four tasks of management.
department
a group of people who work together and possess similar skills or use the same knowledge, tools or techniques to
perform their jobs.
first-line manager
a manager who is responsible for the daily supervision of nonmanagerial employees.

middle manager
a manager who supervises the first line managers and is responsible for finding the besdt way to use resources to
achieve organizational goals.
top manager
a manager who establishes organizational goals, decides how departments should interact, and monitors the
performance of middle managers.
top-management team
a group composed of the CEO, the COO, the president, and the heads of the most important departments.
conceptual skills
the ability to analyze and diagnose the situation and to distinguish between cause and effect.
human skills
the ability to understand, alter, lead, and control the behavior of other individuals and groups.
technical skills
the job specific knowledge and techniques required to perform an organizational role.
core competency
the specific set of departmental skills, knowledge, and experience that allows one organization to outperform another.
restructuring
downsizing an organization by eliminating the jobs or large numbers of top, middle, and first managers and
nonmanagerial employees.
outsourcing
contracting with another company, usually abroad, to have it perform an activity the organization previously performed
itself.
empowerment
the expansion of employees' knowledge, tasks, and decision making responsibilities.
self-managed team
a group of employees who assume responsibility for organizing, controlling, and supervising their own activities and
monitoring the quality of the goods and services they produce.
global organization
organizations that operate and compete in more than one country.
competitive advantage
the ability of one organization to outperform another because it produces desired goods or services more efficiently
and effectively than they do.
innovation
the process of creating new or improved goods and services or developing better ways to produce or provide them.

turnaround management
the creation of a new vision for a struggling company based on a new approach to planning and organizing to make
better use of a company's resources to allow it to survive and prosper.

Mcq

The term manager refers to anyone who ________.


Answer: has designated responsibilities for carrying out managerial activities1
What is the primary legacy of Frederick Taylor?
Answer: "one best way": standardized tools and tasks, standard quota and pay; piecework compensation; union
opposition; congressional investigation
As the regional manager of an accounting firm, Ruth is often required to attend ceremonial activities like
attending a social function on behalf of the company or presiding at a farewell dinner of a departing
employee. Which of the following is similar to the given scenario?
Answer: figurehead role: emphasizes ceremonial activities such as attending a social function, welcoming a visiting
dignitary, or presiding at a farewell reception
Which of the following roles is an interpersonal role?
Answer: Interpersonal roles: figurehead, leader, and liaison
The ________ role emphasizes a manager's contacts with those outside the formal chain of command.
Answer: liaison
In his capacity as the regional production manager, Mark Brown is required to address the regional heads
from across the country in a quarterly meeting organized by his company. At this meeting, Mark presents the
detailed production figures of his region and also outlines the changes he plans to implement in order to
improve productivity. Mark is playing the role of a ________.
Answer: spokesperson
According to Mintzberg's theory of managerial functions, ________ roles include acting as an entrepreneur, a
disturbance handler, a resource allocator, and a negotiator.
Answer: decisional
Jessica and Alex have been unable a decide who should do the team's work scheduling for the next one month, a
task that is both complex and time consuming. As their manager, Melanie intervenes and tells them to jointly draw up
the next month's production schedule. Melanie is playing the role of a ________.
Answer: disturbance handler

When managers are called upon to make accommodations with other units or other organizations, they are
functioning in the ________ role.
Answer: negotiator
________ are important at all levels of the management, and a lack of these skills will usually limit managerial
advancement, even when other skills exist.
Answer: interpersonal skills
According to the universal approach to ethical decision making, managers must first determine whether a
course of action can apply to all people in all situations, then ask themselves whether ________.
Answer: you would also want this applied to you. "do unto others as you have them do unto everyone"
________ is the degree to which people see an issue as an ethical one.
Answer: moral intensity
From an efficiency perspective, when the manager of a business ________, the self-interests of the owner are
best achieved by serving the interests of society.
Answer: is also the owner
Actions that benefit shareholders but harm the other stakeholders would be viewed as ________ from the
efficiency perspective but ________ from the social responsibility perspective.
Answer: managerially responsible; socially irresponsible
Corporations react to the various pressures and constituencies connected to the topic of social
responsibility in different ways. Defenders ________.
Answer: fight efforts that they see as resulting in greater restriction and regulation of their ability to maximize profits;
operate @ edge of the law and actively seek legal loopholesin conducting business; change only when legally
compelled
Which of the following is an example of a reactor firm?
Answer: Reactor firms: make changes when they feel that pressure from constituencies is sufficient such that
nonresponsiveness could have a negative economic impact; ex: only change to recycled paper for boxes when
pressure from customers becomes strong enough that nonresponsiveness would lead customers to boycott products
Which of the following best explains the inside-out approach to strategic corporate social responsibility?
Answer: managers can look inside the company at issues that are more rather than less important as a function of the
company's strategy and business activities; ex: manager @ wal-mart looking inward
When managers look at social issues in general terms of the extent to which they are problematic they are
following the ________ approach to strategic corporate social responsibility.
Answer: "outside-out"
A(n) ________ is an employee who discloses illegal or unethical conduct on the part of others in the
organization.
Answer: whistle-blower
The Foreign Corrupt Practices Act prohibit payments to ________.
Answer: foreign government officials to win gov't contracts/ receive preferential treatment

Of the following, ________ is a dimension of a country's distinct institutional environment.


Answer: consists of country's rules, policies, and enforcement processes
Brian, a senior manager in a logistics firm, has a democratic style of leadership. Brian is very approachable, and
employees in his department are free to consult with him at any time. The culture in Brian's department is one of
________.
Answer: Low power distance
________ is the extent to which people's identities are self-oriented and people are expected to take care of
themselves and their immediate families.
Answer: individualism
Which of the following is a characteristic of collectivism?
Answer: Concerned with group dynamic and decisions. Collectivism can create strong ties of loyalty. In the workplace,
collectivism can mean focusing on more intrinsic rewards, such as mastering a new skill or technique. Less emphasis
is placed on maintaining and promoting personal opinions; instead, management emphasizes harmony and
cooperation.
A foreign company can enter a new market via ________ agreements that allow a local firm in the new market
to manufacture and distribute the foreign company's product.
Answer: licensing
________ are cooperative arrangements between two firms in which they agree to share resources to
accomplish a mutually desirable goal.
Answer: strategic alliances
________ is the rapid development of trust in teams with positive and reciprocal communications about the
team's task activities.
Answer: swift trust
Which of the following is a requirement for swift trust?
Answer: teams manager must help members communicate w/one another in a positive way, coordinate their efforts,
quickly eliminate misunderstandings; significant cultural knowledge/ sensitivity in addition to effective managerial
skills; builds unified vision/ emphasizes collaborative outcomes
Managing multicultural teams, competing in international markets, and managing international operations all
require managers to develop a ________.
Answer: global mindset
Nobelle, a chocolatier based in France, produces candy containing exotic ingredients from the rain forests of
Brazil. The ingredients are provided by a single supplier who has an exclusive contract with Nobelle. The
chocolate manufacturer thus has a great deal of power over the market. This is an example of ________.
Answer: Competitive Advantage
Which of the following is the first step in the strategic management process?
Answer: determination of the firm's strategic vision

________ are those that lead to new features and capabilities in existing products or to completely new
products.
Answer: product technological changes
Federal spending pushes the federal deficit up, causing an increase in interest rates. What is the LEAST
likely result of this occurrence?
Answer: money becomes more expensive for firms to borrow and therefore, they borrow less; expand business
activities @ slower pace/ fewer contracts; contributes to unemployment; reduces consumer spending
________ involve a country's infrastructure, such as roads, telecommunications, air links, arable land, deep
water harbors, mineral resources, forests, and climate.
Answer: physical forces
Which of the following would lead to higher profits for an industry?--think econ
Answer: few competitors, quality-based competition, high entry barriers, few new entrants, few substitutes, many
costomers, fragmented customers, many suppliers
Which of the following is a primary value chain activity?
Answer: Primary activities: directly involved in the creation of a product or service and distributing it to the customer
________ strategies focus on the operations of each function and their contribution to help the firm achieve a
competitive advantage.
Answer: unit-level
SockUp is a company that manufactures socks of different sizes, types, and colors for men, women, and
children. The company aims at being the lowest-cost provider and charges slightly lower than the market
price. This is an example of ________.
Answer: cost leadership strategy
Which of the following business plans has the broadest scope?
Answer: strategic
Which of the following organizational levels is also known as the strategic business unit?
Answer: business level
Ned heads the finance department of a business. At which organizational level is Ned functioning?
Answer: Functional Level
A Gantt chart can help managers devise an action plan in all of the following ways EXCEPT ________.
Answer: Accountability?
A manager at a local bookstore is about to allocate extra floor space to an espresso counter when a new
coffee shop opens next door. He stops implementation of his plan and instead looks into opening a juice bar.
This an example of which of the following?
Answer: making real-time adjustments
A catering company manager is proposing the purchase of a new van to enable the company to handle more
deliveries. She is working on ________.
Answer: capital expenditure budget

Based on the available forecasts, a business' sales are expected to drop 20 percent in the current year as
compared to the previous year. Which of the following will be a cascading effect of this forecast?
Answer: Cascading Effect: mgrs keep track of changes to develop appropriate objectives and action plans. For
Example: 33% reduction in homes built by builder leads to lower revenue, less workers, etc...
The sales forecasts for the summer season for LocoPoco, a beverage company, indicated increased demand
for its colas. However, the actual sales were 30 percent lower than expected. Which of the following could
explain the apparent discrepancy above?
Answer: Emergence of substitutes, economic downturn, new competitors in market
What sort of interdependence exists when two or more groups within a company depend upon one another
for inputs?
Answer: reciprocal interdepence
________ organizations tend to be slower at making decisions and responding to changes in the business
environment. As a result, these organizations tend to be best suited to stable external environments.
Answer: formal/centralized
Ken Langley is a production supervisor in an automobile manufacturing firm. After evaluating Ken's
managerial capabilities, some members of the senior management feel that average productivity would
improve if more workers are assigned to him. However, some managers are skeptical about Ken's ability to
handle more workers. Which of the following statements, if true, would weaken the argument favoring
increased span of control?
Answer: Centralized companies use a narrow span of control so that the fewer the people a manager has to
supervise, the more closely the manager can oversee and control them. Usually, the more routine the tasks are, the
wider span of control (more employees to a supervisor) is okay because the employees have a certain routine or
predictable tasks. Also, the stronger the capabilities, the wider the span of control could be.
Pfizer, a pharmaceutical company, operates in over 40 countries around the world, and many of the largercountry units enjoy considerable freedom and autonomy. Thus, it can be said that Pfizer exemplifies a(n)
________ mode of decision making.
Answer: decentralized
A ________ consists of two organizational structures superimposed on each other. As a consequence, one
person essentially reports to two bosses.
Answer: matrix structure
SLPL Limited adheres to a strategy that allows managers to focus on core competencies or the activities that
are most likely to yield competitive advantage. In doing so, SLPL outsources most of the activities in its
value chain to other companies, retaining just a few elements. From the above example, it can be concluded
that SLPL has a ________ structure.
Answer: high networked
Which of the following is a core category of environmental complexity?
Answer: categories include: products, customers, technology, competitors, suppliers, geogpraphy
Auto parts manufacturer JEG Inc. has a number of vacancies at lower management levels and wants to fill
the positions from within the company itself rather than recruit externally. The company plans to e-mail the
job specifications to all employees and post the jobs on the company Web site. Which of the following is a

disadvantage of job posting?


Answer: disadvnatges inculde underqualified people applying for the job and having to deal with explaining to these
people why the did not get the job, this may make them think if the job was ever "open", generates skepticism, limits
pool of candidates, lawsuits
Which of the following is the best definition of a valid selection technique?
Answer: screening process that can differentiate between those who would be more successful in the job and those
that would be less successful
________ skill development programs include a variety of skills and abilities, such as problem solving,
decision making, planning, and organizing.
Answer: Conceptual
The practice of moving individuals to various types of jobs within the organization at the same level or nextimmediate-higher level for periods of time from an hour or two to as long as a year is known as ________.
Answer: Cross functional job rotation
JEG recently evaluated its manufacturing processes and discovered that the monotonous nature of jobs was
contributing to employee dissatisfaction. As manufacturing worked on an assembly-line system, each
employee had to repetitively add just a single part to the product. JEG decided to form the employees into
teams and have each team assemble a complete product together. This effort by JEG to make the work more
interesting for its employees is known as ________.
Answer: Reengineering
________ involve(s) the termination of groups of employees because of economic or business reasons.
Answer: layoffs
Which of the following is a valid observation about organizational leadership?
Answer: It attempts to influence other people in attaining organizational goals
An individual's drive refers to a(n)________.
Answer: A high level of energy, effort, and persistence in the persuit of objectives.
Transformational leaders ________.
Answer: Emphasize leadership traits that motivate others make changes or achieve high levels of success
Which of the following situations can be seen as an application of leader-member exchange (LMX) theory?
Answer: Applications: types of relationships that develop between a leader and a follower; leaders task = build strong,
mutually respectful and satisfying relationships
What is the central concept of Fiedler's leadership contingency theory?
Answer: You have only one leadership style!
Which of the following is the best example of a leadership substitute?
Answer: high levels of training, experience, or ability; intrinsically rewarding task, support/advisory staff, direct
feedback from the task, professional orientation, cohesive work group (with positive performance norms)
To begin motivating an apathetic associate, a manager informally questions her about her satisfaction with
her job's ability to provide safety, social interaction, self-respect, and opportunities for growth. What theory

of motivation is this manager most likely trying to apply in working with the associate?
Answer: maslow's need hierarchy
The three basic categories of needs identified by Alderfer in his ERG theory are ________.
Answer: Existance Relatedness Growth
While they agree that satisfaction is a factor in motivation, scholars note that there is little evidence that
increasing employee satisfaction actually increases motivation. This has led them to criticize the ________ as
being overly simplistic.
Answer: two-factor theory
A software engineer believes that if she can complete her current project on time she will get her much
awaited promotion to the ranks of a team leader. However, she doubts her capability of completing the
project on time. Within the context of expectancy theory, what level of motivation would the engineer have
and why?
Answer: Effort to Performance
A call center manager hopes to improve the performance of her staff by decreasing the average time spent
on a call. First, she sets up a performance board where the average length of a call for the previous week is
posted and compared to the average call length for the preceding four weeks. Then, she encourages the staff
to reduce the average. According to goal-setting theory, how could she improve this scheme?
Answer: Instead of comparing to previous weeks as a goal, use a percentage of previous weeks as the goal.
A production supervisor receives a bonus for each day a project is completed ahead of schedule. This is an
example of ________.
Answer: Incentive Plan
Groups composed of individuals who are very dissimilar to each other are known as ________.
Answer: Friendships/Informal
________ emerges when a member has to fulfill two or more contrasting sets of expectations.
Answer: Role Conflict
The product development team at JEG were working together for a year and were very comfortable with an
informal style of working. However, the new manager who stepped in preferred to use a more formal style
during meetings and team interactions, as this was the way he had always worked. Which of the following is
most similar to this situation?
Answer: this situation is about norms and norming; the team had already normed behavior and the manager was
importing new norms
High levels of group cohesion ________.
Answer: positive effects: increased quality and quantity of group interactions, strengthened adherence to group
norms, increased effectiveness in achieving group goals, augmented individual satisfaction with group member ship.
negative effects: counterproductive norms may be emphasized, useful or creative ideas may be ignored if they deviate
from established norms or values, increased probability of developing groupthink, potential decrease in intergroup
cooperation
________ conflict arises when group members possess divergent ideas or approaches to attaining goals.
Answer: Task

Which of the following is most likely to be the content of an upward communication in an organization?
Answer: Messages sent from lower organization levels to higher levels
A(n) ________ is a communication route that the organization doesn't prespecify but that develops through
the interpersonal activities of employees.
Answer: Informal communication Channel
"A manager is considering three staff members as possible candidates for a new position. One morning, she
asks each of them, in private, whether they might be interested in taking up the post. She also asks them not
to discuss the offer with anyone. At a function after work, she is approached by several staff members. They
ask A manager is considering three staff members as possible candidates for a new position. One morning,
she asks each of them, in private, whether they might be interested in taking up the post. She also asks them
not to discuss the offer with anyone. At a function after work, she is approached by several staff members.
They ask her about the new position they have heard about ""on the grapevine."" What important feature of
informal communication channels does this scenario illustrate?"
Answer: Information Flow can be very fast
________ refers to the process of screening out some parts of an intended message because they contradict
our beliefs or desires.
Answer: Selective Perception
Which of the following characteristics is found in a high-context culture?
Answer: Read into body language more than words
The ________ focuses on the decision maker as a satisficer.
Answer: Rational Model
Which of the following statements is true about individual and group decision making?
Answer: technology affects both
Which of the following occurs when agreement among members becomes so dominant that it overrides a realistic
appraisal of alternative courses of action?
Answer: Group Think
Groups suffering from groupthink tend to minimize the seriousness of the doubts members raise and put tremendous
pressure on them to agree to the group's consensus. This symptom of groupthink is known as ________.
Answer: Self Censorship
Which of the following statements is true about the Delphi technique?
Answer: Uses Questionaire
Which of the following is true of TQM?
Answer: Focuses on quality
Sandra, the operations manager of the Zara clothing chain, is informed that the summer line requires certain
materials that are not available locally. She recalls having used the same raw materials two summers ago from a
niche supplier. Which of the following should she use to solve this issue?
Answer: materaials requirement planning

What are stock outs?


Answer: When you have trouble getting products to customers when they want them
Production of Sliver's latest small car, the Beetle, has been a dramatic improvement compared to its previous product,
Quiver. The production target of 2,000 Beetle cars per day has been reached only within 10 weeks since the launch
date, which was less than the time they needed for Quiver. Which of the following, if true, would suggest that Sliver
adopted a JIT strategy for the Beetle?
Answer: Reduces Inventory, Improves Productivity, and Increases Customer Satisfaction
________ are achieved when the per-unit allocation of fixed costs and, therefore, the total cost per unit go down as
more units are produced.
Answer: Economies of Scale
Control can be thought of as a causal variable because ________.
Answer: the results of control efforts can inform and improve the planning process of the organization.
Which of the following best defines "standard" in relation to establishing control?
Answer: performance target, strategic vision/goals
Department A shows an annual after-tax profit of $400,000 from invested assets of $12 million. Department B shows
an annual after-tax profit of $400,000 from invested assets of $8 million. Which unit had the best financial
performance?
Answer: department B
Which of the following controls the quality, quantity, and characteristics of the inputs into the production process?
Answer: precontrol of operations
Proponents of the balanced scorecard approach to control assert that it ________.
Answer: is an integrated/ balanced set of measures fro 4 critical areas (perspectives); 4 perspectives = traditional
financial, customer, internal business, learning/ innovation; broader view of company
IBF Industries, Inc. is a leading manufacturer and marketer of skin care and solar filters in the United States. The
company is a market leader in the U.S., and the demand for its products has been static over the last five quarters. In
order to achieve better growth, the management is now planning to develop its business by entering the Canadian
market. Which of the following information, if true, would most support the management's decision to develop the
market?
Answer: Economic Conditions
Google's purchase of YouTube exemplifies its ________ of the need to enhance its mission of organizing the world's
information and making it universally useful and accessible.
Answer: strategy
The line managers at Harmony Corp. believe that the introduction of the customer care hotline facility has been a
huge mistake. They are overwhelmed by the number of complaints that come in each day, most of which are due to
faulty usage and not faulty products. The top executives at Harmony believe that the hotline will prove its worth over
time. What inference can be drawn from this scenario?
Answer: people are resistant to change especailly when they only see hardhips and mistakes; inefficient and therefore
get bad results; management knows it takes time

The essence of an organizational development (OD) approach to change is ________.


Answer: emphasis on planned strategic, long-range efforts focusing on people and their interrelationships in
organizations

1. The process of monitoring performance, comparing it with goals and correcting any significant deviations is known
as:

A. Planning
B. Organizing
C. Leading
D. Controlling

2. Mr. A is a Manager on XYZ company; he has a reputation for being an open and
honest person and understands how to motivate employees and customers, he said to
have good____________ skills.
A. Sales
B. Political
C. Interpersonal
D. Technical
3. Someone who works with and through other people by coordinating their work
activities to accomplish organizational goals is called:
A. A Very intelligent: Individual
B. A Supervisor of Production Work
C. A Manager
D. An operation Supervisor
4. SWOT analysis divides organizational strength into two categories; Common strength
and______________.
A. Strategic imitation
B. Competitive Parity
C. Distinctive Competencies
D. Threats
SWOT analysis divides organizational strengths into two categories: common strengths
and distinctive competencies.(Ricky W. Griffin ).
5. The Continues line if authority that extends from the upper level of management to
the lowest levels of the organization is called:
A. Authority line of responsibility

B. Unity of Commerce
C. Responsibility factor
D. Chain of command
6. Which is the most common cause of business failure?
A. Insufficient Capital
B. Unstable market
C. Insufficient experience
D. Poor Entrepreneurship
7. Which of the following is the accountability for the achievement of objectives, the use
of resources, and the adherence to organizational policy?
A. Power
B. Responsibility
C. Authority
D. Planning
8. Organizations can play role in addressing global environment issues through all of the
following ways EXCEPT:
A. Greening of Management
B. Depletion of natural Resources
C. Fulfilling their Social Obligation
D. Avoiding industrial accidents
9. __________________ are large scale action plans of an organization for interacting
with environment in order to achieve long term goals.
A. Objectives
B. Strategic Goals
C. Strategies
D. Actions
10. Living Organisms take substances from their environment such as food and air and
return other substances environment. This is an example of
A. Close System
B. Hybrid System
C. Open System
D. None of Above

living organisms are considered open systems because they take in substances from
their environment such as food and air and return other substances to their
environment. Humans, for example, inhale oxygen out of the environment and exhale
carbon dioxide into the environment. Similarly, some organizations consume raw
materials in the production of products and emit finished goods and pollution as a result.
In contrast, a watch is an example of a closed system in that it is a relatively selfcontained, self-maintaining unit that has little interacts or exchange with its
environment.. http://www.vuzs.info/
11. When the strength provides superior and unique customer value and is difficult to
imitate then the distinctive competence creates a sustainable____________.
A. Competitive Advantage
B. Scope
C. Resource Deployment
D. Effective Strategy
http://www.vuzs.info

12. Which of the following organization is rigidly controlled and efficient?


A. Organic
B. Mechanistic
C. Horizontal
D. Learning
13. In a juice making company sales manager has the set the goal of increasing the
sales by 10% in summer season. At the end of summer Manager will check either goal
has archived or not. This function is known as
A. Planning
B. Organizing
C. Leading
D. Controlling

When the strength provides superior and unique customer value and is difficult to
imitate then the distinctive competence creates a sustainable _______.

Competitive advantage
Scope
Resource deployment
Effective strategy

Dell Company sells the variety of products like computers, laptops, accessories
over the internet. Dell is engaged in
Intranet
Extranet
E-commerce
E- Business
The people who work under the first line managers are often called by all of the
following names EXCEPT:
Non managers
Supervisors
Skilled workers
Semi skilled workers
A plan developed to carry out a course of action that is not likely to be repeated in
the future is called:
Single-use plan
Specific plan
Reaction plan
Directional plan
The leader of an organization performs __________, as per Mintzberg.
An Interpersonal role
An Informational role
A Decisional role
All of the given options

A manager transmits the information outside the organization. He is performing


which of the following role?
Spokesperson
Representative
Disseminator
Agent

Which of the following skill is most essential to get most out of the people?
Technical skill
Human skill
Conceptual skill
Mechanical skill
The degree to which jobs are standardized and guided by rules and procedures is
called:
Work specialization
Centralization
Decentralization
Formalization

Which factor has been the most rapidly changing component in an organizations
general environment in the past quarter-century?
Global
Economic
Social
Technological
www.vuzs.info

Monitoring organizational progress towards goal attainment is called:


Planning
Organizing

Leading
Controlling

Question # 11 of 20 ( Start time: 09:04:09 PM)


Which one of the following individuals is most closely associated with scientific
management?
Frederick Taylor
Mary Parker Follett
Harold Koontz
Max Weber
Question # 12 of 20 ( Start time: 09:04:58 PM)
Which of the following means that you achieve the best possible balance among several
goals?
Sacrificing
Satisficing
Minimizing
Optimizing

PERT Chart assists in _________ the tasks within an organization.


Budgeting
Scheduling
Evaluating
Finalizing
Question # 14 of 20 ( Start time: 09:06:13 PM)
As a transportation manager you are supposed to select transportation routes to
minimize shipping cost. Which optimum technique will be used?
Forecasting
Project management

Budgeting
Linear programming

Question # 15 of 20 ( Start time: 09:06:51 PM)


The process of monitoring performance, comparing it with goals and correcting any
significant deviations is known as:
Planning
Organizing
Leading
Controlling
Question # 16 of 20 ( Start time: 09:07:26 PM)
Nestle and ICI have taken steps to address human rights issues in their overseas
factories. This represent that these companies have
Social obligation
Social Screening
Socially responsibility
Social responsiveness
Question # 17 of 20 ( Start time: 09:08:05 PM)
Asma, a new manager at XYZ Inc. primarily worries about assembling and coordinating
the human, financial, physical, and other resources needed to achieve her goals. Which
function is Asma primarily concerned about?
Organizing
Controlling
Planning
Leading

Question # 18 of 20 ( Start time: 09:09:02 PM)


The set of strengths, characteristics and qualities including skills, technologies, or
resources that distinguish a firm from its competitors is called:

Scope
Distinctive Competency
Resource deployment
Effective strategy
Question # 19 of 20 ( Start time: 09:09:33 PM)
All of the following are the characteristics of an organization EXCEPT:
People
Product
Purpose
Structure
Question # 20 of 20 ( Start time: 09:10:22 PM)
Most of the countries in the world are moving towards globalization all of the following
reasons EXCEPT:
For free market economy
For liberalization in trade
Increase efficiency
Refutation of economic power
Which of the following management thinker created a role classification system based
on how managers spend their time at work to describe a manager's role?
Select correct option:
Peter Brabeck-Letmathe
Abraham Maslow
Andrea Jung
Henry Mintzberg
The process of collaborative goal setting by a manager and subordinate; the extent to
which goals are accomplished is a major factor in evaluating and rewarding the
subordinates performance. It is called:
Select correct option:
Management by objective
Management by resources

Management by authority
Management by system
Which of the following is the process of developing businesses to pursue trends and
changes that no one else has seen before?
Select correct option:
Entrepreneurship
Division of labor
Evolution
E-commerce
What is the best term to describe the process of attempting to influence other people to
attain the organization's objectives?
Planning
Organizing
Leading
Controlling
An organization that assigns specialists from different functional departments to work on
one or more than one projects being led by project managers is called ------------Team Organization
Virtual Organization
Matrix organization
Learning Organization
Activities such as taking visitors to dinner and attending ribbon cutting ceremonies come
under which of the following management role?
Leader
Liaison
Figurehead
Negotiator
The degree to which decision making is confined at a single point in an organization is
described as __________.
Unity of command
Chain of command

Span of management
Centralization
Global competition, accelerated product development by competitors, and increased
demands by customers for better service have encouraged organizations to become
more ___________.
Organic
Mechanistic
Technologically pure
Task oriented
The idea that employees should also share the profit of organization was given by:
Select correct option:
Frederick Taylor
Robert Owen
Charles Babbage
W. Edwards Deming
Plant managers come under which of following management levels?
First-line managers
Non-managerial employees
Middle managers
Top managers
When Shumaila is comparing actual sales figures with goals established earlier to see if
her department met the target, she is performing which of the following functions?
Planning
Organizing
Leading
Controlling
Which one of the following ethical approaches exemplifies the belief that every person
has fundamental human rights that should be respected as well as protected?
Select correct option:
Justice approach

Rights approach
Individualism approach
Utilitarianism approach

________, identifies the order of activities to be performed in order to achieve a


particular goal.
Select correct option:
Budgeting
Linear programming
Break-even analysis
Scheduling
All levels of management between the supervisory level and the top level of the
organization are termed as:
Middle managers
First-line managers
Supervisors
Foremen
A situation in which an organization is not implementing valuable strategies that are
being implemented by competing organization is called:
Competitive disadvantage
Distinctive competencies
Competitive edge
Competitive parity
A budget is an example of which of the following plan?
Strategic plan
Single use plan
Informal plan
Standing plan

The management function that specifies goals to be achieved and deciding in advance
the appropriate actions to achieve those goals is:
Leading
Controlling
Organizing
Planning
_______________is a situation that offers a strong potential for significant
organizational gain if appropriate actions are taken
Crises problem
Opportunity problem
None crises problem
None of above
Pakistan Federal government has passed disabilities act of 2005 to protect rights of
disable persons and to give them flexibility in job. This comes under which of the
following environmental sub context
Economic
Socio cultural
Political/legal
Technological
Which of the following statement best describes Social Obligation?
Select correct option:
Firms capacity to adapt changing social condition
Applying social criteria to investment decisions
Firms obligation pursue long term goals that are good for society
Firms obligation to meet its economic & legal responsibilities
Question # 1 of 20 ( Start time: 09:37:01 PM ) Total Marks: 1
Which of the following view is concerned with respecting and protecting individual
liberties and privileges such as the rights to privacy, freedom of conscience, free
speech, life and safety, and due process?
Select correct option:
Utilitarian view

Rights view
Theory of justice view
Integrative social contracts theory view
Question # 2 of 20 ( Start time: 09:38:11 PM ) Total Marks: 1
Communication should be:
Select correct option:
From Top to Bottom level
From Bottom to top
2 way
Question # 3 of 20 ( Start time: 09:39:05 PM ) Total Marks: 1
Which type of environment is best suited for mechanistic organizations?
Select correct option:
Dynamic
Manufacturing
Service
Stable
Question # 4 of 20 ( Start time: 09:40:13 PM ) Total Marks: 1
Global competition, accelerated product development by competitors, and increased
demands by customers for better service have encouraged organizations to become
more ___________.
Select correct option:
Organic
Mechanistic
Technologically pure
Task oriented
Question # 5 of 20 ( Start time: 09:41:37 PM ) Total Marks: 1
The process through which raw materials changed into consumer products is termed
as:
Select correct option:
Development process

Transformation process
Marketing process
Procurement process
Question # 6 of 20 ( Start time: 09:42:36 PM ) Total Marks: 1
The best way to characterize management is to say that it is:
Select correct option:
Part of the economy
An activity or process
An overcrowded career field
One of the chief difficulties for most firms

Question # 7 of 20 ( Start time: 09:44:09 PM ) Total Marks: 1


The idea that employees should also share the profit of organization was given by:
Select correct option:
Frederick Taylor
Robert Owen
Charles Babbage
W. Edwards Deming
Question # 8 of 20 ( Start time: 09:45:22 PM ) Total Marks: 1
Computers and campus facilities given to a university are called its:
Select correct option:
Human resources
Financial resources
Physical resources
Information resources

Question # 9 of 20 ( Start time: 09:46:54 PM ) Total Marks: 1


Which is the most common cause of business failure?
Select correct option:
Insufficient capital
Unstable market
Insufficient experience
Poor entrepreneurship

Question # 10 of 20 ( Start time: 09:48:20 PM ) Total Marks: 1


GANTT Chart is a tool of:
Select correct option:
Budgeting
Linear programming
Break-even analysis
Scheduling

Question # 11 of 20 ( Start time: 09:49:13 PM ) Total Marks: 1


Transformation process within a system transfers:
Select correct option:
Raw materials into inputs
Inputs into raw materials
Output into finished goods
Inputs into finished goods
Question # 12 of 20 ( Start time: 09:50:32 PM ) Total Marks: 1
Sales responsibilities divided into the Southwest, Midwest, southern, northern, and
western regions would be an example of what type of departmentalization?
Select correct option:
Product

Geographic
Process
Outcome
Question # 13 of 20 ( Start time: 09:51:24 PM ) Total Marks: 1
In the MBO system:
Select correct option:
Objectives are determined by management
Goals are only reviewed at the time of completion
Goals are used as controls
Question # 14 of 20 ( Start time: 09:52:53 PM ) Total Marks: 1
An organic organizational structure is characterized by----------Select correct option:
Minimal formalization
Rigid departmentalization
Narrow spans of control
High formalization
Question # 15 of 20 ( Start time: 09:54:22 PM ) Total Marks: 1
In XYZ Company HR director has negotiated with striking employees who were
demanding for increase in salaries due to inflation. He has performed the role of
Select correct option:
Leader
Negotiator
Liaison
Question # 16 of 20 ( Start time: 09:55:53 PM ) Total Marks: 1
All of following are elements of planning function EXCEPT
Establishing strategies
Developing Plans
Monitoring Performance
Coordinate activities

Question # 17 of 20 ( Start time: 09:57:07 PM ) Total Marks: 1


Which of the following statement best describes Social Obligation?
Firms capacity to adapt changing social condition
Applying social criteria to investment decisions
Firms obligation pursue long term goals that are good for society
Firms obligation to meet its economic & legal responsibilities
Question # 18 of 20 ( Start time: 09:57:53 PM ) Total Marks: 1
In order to communicate, motivate and delegate a manager must have:
Political skills
Conceptual skills
Technical skills
Interpersonal skills
Question # 19 of 20 ( Start time: 09:58:47 PM ) Total Marks: 1
In the pyramid of levels of management, non-managerial staff is placed at/in:
Top
Middle
Bottom
None of the given options
Question # 20 of 20 ( Start time: 09:59:42 PM ) Total Marks: 1
How would you define the problem if all outcomes of every alternative are
known?
Select correct option:
Bounded rationality
Unbounded rationality
Certainty
Uncertainty
The process of monitoring performance, comparing it with goals and correcting
any significant deviations is known as:
Planning
Organizing

Leading
Controlling
Mr. A is a Manager on XYZ company; he has a reputation for being an open and
honest person and understands how to motivate employees and customers, he
said to have good____________ skills.
Sales
Political
Interpersonal
Technical
Someone who works with and through other people by coordinating their work
activities to accomplish organizational goals is called:
A Very intelligent: Individual
A Supervisor of Production Work
A Manager
An operation Supervisor
XYZ Company has policy of employees Job security, career progress and ensure that
replacement are available to fill vacancies. This company is practicing which of the
following principle.
Initiative
Remuneration
Esprit decops
Stability if tender of personnel

SWOT analysis divides organizational strength into two categories; Common strength
and______________.
Strategic imitation
Competitive Parity
Distinctive Competencies

The Continues line if authority that extends from the upper level of management
to the lowest levels of the organization is called:
Authority line of responsibility
Unity of Commerce
Responsibility factor
Chain of command
Which ethical approach guided by what will result in the greatest good for the greatest
number of People?
Moral Rights Approach
Individual approach
Utilitarian Approach
Justice Approach
Plans that Provide guidelines form activities to be performed repeatedly like policy,
procedure are called.
Single Use Plans

Standard Plans
Contingency Plan
Snor term Plams
Which is the most common cause of business failure?
Insufficient Capital
Unstable market
Insufficient experience
Poor Entrepreneurship
Reading of a business journal, publication on regular basis to gather information for
upcoming business tends, this role is called
Disseminator
Liaison
Spokesperson
Monitor

Which of the following is the accountability for the achievement of objectives, the use of
resources, and the adherence to organizational policy?
Power
Responsibility
Authority

Planning
Organizations can play role in addressing global environment issues through all of the
following ways EXCEPT:
Greening of Management
Depletion of natural Resources
Fulfilling their Social Obligation
Avoiding industrial accidents
System Theory and Contingency Theory are related to which of the following
________________
Classical theories
Betavoadde theories
Conterporary
__________________ are large scale action plans of an organization for interacting
with environment in order to achieve long term goals.
Objectives
Strategic Goals
Strategic
Actions
Hawthorne studies were a series of early experiments that focused on:
Select correct option:
Behavior in the workplace (NOT SURE)
Ethics in the workplace

Group norms
Interpersonal dynamics
Selecting an alternative in the decision-making process is accomplished by:
Select correct option:
Choosing the alternative with the highest score
Choosing the One You Like Best
Selecting the alternative that has the lowest price
Selecting the alternative that is the most reliable

A plan developed to carry out a course of action that is not likely to be repeated in the
future is called:
Select correct option:
Single-use plan
Specific plan
Reaction plan
Direction plan

Concern for employee motivation is most closely associated with which of the following
management approach?
Select correct option:
Bureaucracy
Organizational behavior
Scientific management
Systems

Interest rates, inflation rates, and stock market indexes are all examples of which of the
factor of an organizations general environment?
Select correct option:
Economic
Political

Social
Technological

Which factor has been the most rapidly changing component in an organizations
general environment in the past quarter-century?
Select correct option:
Global
Economic
Social
Technological
The process of monitoring performance, comparing it with goals and correcting any
significant deviations is known as:
Select correct option:
Planning
Organizing
Leading
Controlling

When Usman decides to deploy employees to another department that is lagging


behind in production, he is acting in which of the following roles?
Select correct option:
Spokesperson
Negotiator
Leader
Resource allocator

The greater the risk involves in making a decision, the greater the:
Select correct option:
Outcomes
Information available
Rewards
Uncertainty

Each subordinate should report to one and only one superior is called:
Select correct option:
Authority
Unity of command
Unity of direction
Order
Which of the following is part of the 14 principles of management identified by
Henri Fayol?
Select correct option:
Scalar chain
Innovation
Efficiency
Motivation
A learning organization has developed its________.
Select correct option:
Educational department to keep employees trained
Capacity to adapt and change
Barriers to entry of its markets
A sustainable competitive advantage that is easy to maintain

Which of the following is not a suggestion for motivating employees?


Select correct option:
Recognize individual differences
Makes goals very difficult to achieve
Match people to jobs
Individualize rewards

In Maslow's need hierarchy, a healthy work environment is an example of what type of


need?
Select correct option:
Physiological
Esteem

Safety
Social

The plans which deal with fairly small set of activities are called:
Select correct option:
Strategic plan
Tactical plan
Operational plan
Personal plan

Which of the following is known as the process of getting activities completed efficiently
and effectively with and through other people?
Select correct option:
Leading
Management
Supervision
Controlling

Which of the following describe(s) a global marketplace?


Select correct option:
The entire world is a marketplace
National borders are irrelevant
The potential for organizations to grow expands dramatically
All of the given options
The assignment of new or additional responsibilities to a subordinate is called:
Select correct option:
Coordination
Specialization
Delegation
Span of control

Which of the following management thinker created a role classification system based
on how managers spend their time at work to describe a manager's role?
Select correct option:
Peter Brabeck-Letmathe
Abraham Maslow
Andrea Jung
Henry Mintzberg

Which expectancy theory linkage explains the degree to which a student desires a good
job?
Select correct option:
Expectancy
Effort to performance
Input to outcome
Valence

The assignment of new or additional responsibilities to a subordinate is called:


Select correct option:
Coordination
Specialization
Delegation
Span of control

Which ethical approach is guided by what will result in the greatest good for the greatest
number of people?
Select correct option:
Moral-Rights approach
Individual approach
Utilitarian approach
Justice approach

Low level management has a complete authority to make decisions in case of:
Select correct option:

Centralization
Decentralization
Scalar Chain
Order

Which one of the following individuals is most closely associated with scientific
management?
Select correct option:
Frederick Taylor
Mary Parker Follett
Harold Koontz
Max Weber

Each subordinate should report to one and only one superior is called:
Select correct option:
Authority
Unity of command
Unity of direction
Order

There are many healthcare products manufacturers. XYZ Company manufactures only
personal hygiene products. It markets such products deodorant, body powder, body
creams, and exfoliates. Because it only stocks body care and personal hygiene
products, it is using ___ strategy.
Select correct option:
Prospecting
Emergent
Focus
Cost leadership

When managers give goals to employees, they must always:


Select correct option:
Use employee-recognition as a reward
Provide feedback to the employees
Let the employees participate in setting the goals
All of the given options

The organization that has developed the capacity to continuously learn, adapt, and
change is called:
Select correct option:
Virtual organization
Learning organization
Traditional organization
Bureaucratic organization

Your firms attorney has which of the following power when giving legal advice?
Select correct option:
Legitimate
Status
Expert
Coercive

Which of the following is a function of how much decision-making authority is pushed


down to lower levels in the organization?
Select correct option:
Departmentalization
Centralization
Span of control
Power

Organizations that are highly flexible and adaptive are described as which of the
following?

Select correct option:


Organic
Mechanistic
Rational (NOT SURE)
Intuitive

A human resource manager attending a local Society for Human Resource


Management meeting would be functioning in which of the following role?
Select correct option:
Informational
Leader
Liaison
Disseminator

Which type of environment is best suited for mechanistic organizations?


Select correct option:
Dynamic
Manufacturing
Service
Stable

The most outspoken advocate of the classical view of social responsibility is economist
and Nobel prize winner:
Select correct option:
Carnegie Milton
Charles Darwin
Milton Freeman
Milton Friedman
In traditional goal setting, the goals are set at the top level of management and after that
they:
Select correct option:
Become the responsibility of first-line management
Are broken down into sub goals for each level of the organization
All the efforts to achieve the goals are directed by top management

Are delegated to the next lower level to be achieved


Which of the management tasks is the most important for a supervisory manager?
Select correct option:
Planning
Organizing
Controlling
Staffing
A budget is an example of which of the following plan?
Select correct option:
Strategic plan
Single use plan
Informal plan
Standing plan

Which of the following is the final step in the decision-making process?


Select correct option:
Identifying the problem
Evaluating the decisions effectiveness
Identifying decision criteria
Selecting an alternative that can resolve the problem
The behavioral dimension of leadership involving the concern that the leader has for the
feelings, needs, personal interest, problems, and well being of followers is referred to as
which of the following?
Select correct option:
Consideration
Initiating structure
Autocratic
Democratic

What type of an organization actively creates, acquires, and transfers knowledge within
itself and is able to modify its behavior to reflect new knowledge?

Select correct option:


Enlightened organization
Conceptualized organization
Learning organization
Modern organization

A primary benefit of MBO is:


Select correct option:
Avoid competition
Resistance against new entrance
Improve employee motivation
Increase resources
Functional departmentalization groups jobs by which of the following?
Select correct option:
Tasks they perform
Territories they serve
Products or services they manufacture or produce
Type of customer they serve
Henri Fayol, a French industrialist, first analyzed what managers do and divided that
work into functions. The study of the management function that defines goals and
establishes strategies to achieve them is called:
Select correct option:
Planning
Organizing
Leading
Controlling

Which one of the following items best reflects the extent to which a society places a high
value on reducing risk and instability?
Select correct option:
Uncertainty avoidance
Power distance
Masculinity/femininity
Long-term/short-term orientation

When a manger made a decision and he is uncertain about the outcomes. His decision
is likely to be:
Select correct option:
Of Poor Quality
Unacceptable
Successful
Risky

Forecasting techniques fall into which of the following two categories?


Select correct option:
Fixed asset and human capital
Predictive and confirmatory
Quantitative and qualitative
Empirical and conceptual
A plan developed to carry out a course of action that is not likely to be repeated in the
future is called:
Select correct option:
Single-use plan
Specific plan
Reaction plan
Directional plan
The organization which has no interaction with its external environment is called:
Select correct option:
Open system
Closed system
Non-interactive system
Moderated system

Which famous management thinker was related with the development of "Theory X"?
Select correct option:

Douglas McGregor
Abraham Maslow
Frederick Herzberg
Chester Barnard

The management function that specifies goals to be achieved and deciding in advance
the appropriate actions to achieve those goals is:
Select correct option:
Leading
Controlling
Organizing
Planning

Monitoring organizational progress towards goal attainment is called:


Select correct option:
Planning
Organizing
Leading
Controlling

Organizational culture is similar to an individuals:


Select correct option:
Skills
Personality
Motivation
Ability

Which of the following is NOT an example of an organizations general environment?


Select correct option:
Economic conditions

Political conditions
Social conditions
Who presented the Concept of Quality?
Select correct option:
Henri Fayol
Prof.Henry Mintzberg
Frank & Lillian Gilbreth
Prof.Edward Deming
In order to communicate, motivate and delegate a manager must have:
Select correct option:
Political skills
Conceptual skills
Technical skills
Interpersonal skills

Which of the following departmentalization is used more in recent years to better


monitor the needs of customers and to respond to changes in those needs?
Select correct option:
Needs-based (NOT SURE)
Functional
Process
Customer

Which of the following is called output of a system?


Select correct option:
Services
Material
Human
Information resource

Who is credited for the theory of motivation based on the hierarchy of needs?
Select correct option:
Abraham Maslow
Douglas McGregor
Henri Fayol
Mary Parker Follett

Which of the following is NOT an example of a constituency that makes up the specific
environment?
Select correct option:
Customers
Socio-cultural
Suppliers
Competitors
The SWOT approach assesses an organization's:
Select correct option:
Speed, Wants, Order, Timing
Studies, Workflows, Opportunities, Trials
Strengths, Weaknesses, Opportunities, Threats
Signs, Worries, Objectives, Techniques

An office supply firm that has three departments based upon retail, wholesale, and
governmental customers is using which of the following types of departmentalization?
Select correct option:
Functional
Product
Customer
Geographic

To determine the ___________, a manager must determine what is relevant or


important in resolving the problem.
Select correct option:

Geocentric behavior needed


Number of allowable alternatives
Weighting of decision criteria
Decision criteria

A manager who strives to ensure the activities of the organization's employees are
supported and blend well with those of individuals outside the firm could be said to hold
which of the following interpersonal role within the company?
Select correct option:
Liaison
Disseminator
Figure head
Entrepreneur

(USMAN KHALID)
What would be the best description of plans that focus on the broad future of the
organization and incorporate both external environmental demands and internal
resources into managers' actions?
Select correct option:
Operational plans
Tactical plans
Strategic plans
Holistic plans

Which of the following scientist is most closely associated with the Hawthorne studies?
Select correct option:
Adams
Mayo
Lawler
Barnard

When objectives are not written down or rarely verbalized, and the planning is general
and lacks continuity, which of the following types of planning is used?
Select correct option:
Environmental planning
Economic planning
Informal planning
Formal planning

Which of the following is the power that rests on the leaders ability to punish or control?
Select correct option:
Reward power
Coercive power
Expert power
Referent power

Inspiring people to be high performer is called:


Select correct option:
Controlling
Leading
Planning
Organizing

Which of the following theory is currently the most widely accepted when describing
employee motivation?
Select correct option:
Reinforcement
Three-need
Expectancy
Equity

Activities such as taking visitors to dinner and attending ribbon cutting ceremonies come
under which of the following management role?
Select correct option:
Leader
Liaison
Figurehead
Negotiator
LG and Sony electronics agreed to cooperate on developing new technologies.
Representatives from each firm meet regularly to coordinate this new venture. Which of
the following roles these mangers are playing?
Select correct option:
Liaison
Leader
Disseminator
Spokesperson

A skill or capability that enables an organization to conceive of and implement its


strategies is its:
Select correct option:
Strength
Weakness
Opportunity
Threat

The task environment of organizations consists of constituencies that have a direct


impact on managers decisions and actions. The main constituencies are made up of
customers, suppliers, competitors, and ________.
Select correct option:
Legislators
Pressure groups
Employees
Lawyers

Set of processes involved in creating or determining the strategies of the organization is


called:
Select correct option:
Strategy formulation
Strategy implementation
Strategy evaluation
Strategy imitation

What type of an organization actively creates, acquires, and transfers knowledge within
itself and is able to modify its behavior to reflect new knowledge?
Select correct option:
Enlightened organization
Conceptualized organization
Learning organization
Modern organization

Which of the following is a general statement or understanding that guide or channelize


thinking in decision making?
Select correct option:
Policy
Procedure
Rule
Project

Which of the following is a process that involves managers from all parts of the
organization in the formulation of strategic goals?
Select correct option:
Strategic management
Strategic positioning

Strategic planning
Strategic organizing

Maslow's need hierarchy, a healthy work environment is an example of what type of


need?
Select correct option:
Physiological
Esteem
Safety
Social
What would be the best description of plans that focus on the broad future of the
organization and incorporate both external environmental demands and internal
resources into managers' actions?
Operational plans
Tactical plans
Strategic plans
Holistic plans

Which of the following is NOT a key element of the Total Quality Management
approach?
Focus on the customer
Employee involvement
Continuous improvement
Focus on the supplier

When call center managers spend much of their time monitoring customer calls and
giving employees feedback about how to improve their dialogue with customers in the
future, these managers are using which of the following skills?
Technical
Conceptual
Situational
Ethical
The process of selecting decision criteria is accomplished by:
Massaging the data that will support a given decision
Flipping a coin to produce a 50-50 chance of being right
Determining what is relevant in making the decision
Examining the difference in the opportunities available

Alternatives that an organization chooses from its operations across several industries
and several markets is called:
Business-level strategy
Corporate-level strategy
Functional-level strategy
Market-level strategy

In the MBO system:


Objectives are determined by management

Goals are only reviewed at the time of completion


Goals are used as controls
Progress is periodically reviewed
Strategic plans cover a broader view of the organization and include the formulation of
goals, whereas operational plans define ways to:
Maximize the organizations profits
Achieve the goals
Minimize the number of employees
Provide the most efficient methods of production
The first step in the decision-making process is which of the following?
Developing decision criteria
Allocating weights to the criteria
Analyzing alternatives
Identifying a problem
A skill or capability that enables an organization to conceive of and implement its
strategies is its:
Strength
Weakness
Opportunity
Threat
The management function that specifies goals to be achieved and deciding in advance
the appropriate actions to achieve those goals is:

Leading
Controlling
Organizing
Planning

The plans which deal with fairly small set of activities are called:
Strategic plan
Tactical plan
Operational plan
Personal plan

A budget is an example of which of the following plan?


Strategic plan
Single use plan
Informal plan
Standing plan

Which of the following can be defined as the art and science of formulating,
implementing and evaluating cross-functional decisions that enable an organization to
achieve its objectives?
Strategy formulation
Strategy evaluation

Strategy implementation
Strategic management

Which of the following is NOT one of the situational factors thought to influence the
relationship between leader behavior and subordinate motivation to perform in the pathgoal theory?
Preferences of the leader
Subordinate locus of control
Characteristics of the work group
Task structure

Social obligation is the obligation of a business to meet its:


Select correct option:
Social and technological responsibilities
Economic and social responsibilities
Technological and economic responsibilities
Economic and legal responsibilities

All of the following are the examples of the actions that can be taken in strategy
implementation stage EXCEPT:
Select correct option:
Changing organization's pricing strategy
Developing new employee benefits
Transferring managers among divisions
Taking corrective action when needed

The method by which strategies are operational zed or executed within the organization
is called:
Select correct option:
Strategy implementation
Strategy evaluation
Strategy formulation
Strategy imitation

The idea that employees should also share the profit of organization was given by:
Select correct option:
Frederick Taylor
Robert Owen
Charles Babbage
W. Edwards Deming

In some countries, such as Venezuela, titles, rank, and status carry a lot of weight.
These countries have a large:
Select correct option:
Power distance
Uncertainty avoidance
Short- versus long-term orientation
Individualism versus collectivism

Which of the following is associated with the classical view of social responsibility?
Select correct option:
Economist Robert Reich
Concern for social welfare
Stockholder financial return
Voluntary activities

Which of the following management thinker created a role classification system based
on how managers spend their time at work to describe a manager's role?
Select correct option:
Peter Brabeck-Letmathe
Abraham Maslow
Andrea Jung
Henry Mintzberg

Which of the management tasks is the most important for a supervisory manager?
Select correct option:
Planning
Organizing
Controlling
Staffing

Forecasting techniques fall into which of the following two categories?


Select correct option:
Fixed asset and human capital
Predictive and confirmatory
Quantitative and qualitative
Empirical and conceptual

Which of the following theory is currently the most widely accepted when describing
employee motivation?
Select correct option:
Reinforcement
Three-needs
Expectancy
Equity

A leader, such as Bill Gates of Microsoft, who can inspire followers above their own selfinterests and can have a profound effect on their performance, are known as which of
the following?
Select correct option:
Transactional leaders
Directive leaders
Informational leaders
Transformational leaders
A situation in which an organization is not implementing valuable strategies that are
being implemented by competing organization is called:
Select correct option:

Competitive disadvantage
Distinctive competencies
Competitive edge
Competitive parity

Which of the following term is defined as a business firms obligation, beyond that
required by law and economics, to pursue long-term goals that are good for society?
Select correct option:
Social obligation
Social responsibility
Social screening
Values-based management

Feed Back of ____ is necessary to improve the quality of the product.


Select correct option:
Customers
Employees

Investors
All of the given options

Which of the following is the accountability for the achievement of objectives, the use of
resources, and the adherence to organizational policy?
Select correct option:
Power
Responsibility
Authority
Planning
Which management theory focuses on managing the total organization?
Select correct option:
Scientific management
Administrative management
Behavioral management
Quantitative management

Communication should be:


Select correct option:
From Top to Bottom level
From Bottom to top
2 way
None of the given option

The following is the process of developing businesses to pursue trends and changes
that no one else has seen before?
Select correct option:
Entrepreneurship
Division of labor

Evolution
E-commerce
A learning organization has developed its________.
Select correct option:
Educational department to keep employees trained
Capacity to adapt and change
Barriers to entry of its markets
A sustainable competitive advantage that is easy to maintain
The greater the risk involves in making a decision, the greater the:
Select correct option:
Outcomes
Information available
Rewards (NOT SURE)
Uncertainty

A skill and capability held by numerous competing firms is called:


Select correct option:
Common strength
Competitive edge
Competitive parity
Distinctive competencies
The quantitative approach has contributed directly in the areas of:
Planning and control
Control and leading
Organizing and control

Planning and leading

Which of the following early advocates of organizational behavior was the first to
argue that organizations were open systems?
Robert Owens

Hugo Munsterberg
Mary Parker Follett
Chester Barnard

The people at the bottom of the organization generally deal with repetitive and
familiar problems such as workers who are late or machinery that breaks down.
As a result, most of the decisions made by first line supervisors are:
Programmed decisions
Ill-structured decisions
Novel decisions
Non-programmed decisions

The method by which strategies are operational zed or executed within the
organization is called:
Strategy implementation
Strategy evaluation
Strategy formulation
Strategy imitation
The belief that businesses should be responsible because such actions are right
for their own sake is known as which argument for social responsibility?
Public expectation
Ethical obligation
Public image
Discouragement of government regulation
1 . _________ are involved with managing the work of employees involved directly in production.
Top managers
Chief executive officer
Middle managers
Front-line managers
First-line managers
2 . "Doing things right" describes"
top managers
middle level managers

effectiveness
leadership
efficiency
3 . : ______ managers typically have titles such as CEO, COO, VP:
agency head
subordinates
top managers
middle managers
first-line managers
4 . ______________ studied five chief executives at work and identified ten managerial roles.
Michael Porter
Max Weber
Henri Fayol
Robert Katz
Henry Mintzberg
5 . _______________ first wrote about the management functions.
Michael Porter
Max Weber
Robert Katz
Henri Fayol
Henry Mintzberg
6 . According to the text, traditional organizations need to be transformed into new organizations (more
dynamic, flexible and consumer-oriented) in order to survive.
True
False
7 . Acquiring power is a management skill associated with which management function(s):
organizing and leading
planning and organizing
designing motivating jobs
leading and controlling
resource allocation, leadership, and planning
8 . All organizations share the three following characteristics:
distinct purpose, structure, and profit maximization
distinct purpose, profit maximization, and goal attainment
distinct purpose, deliberate structure, and people
profit maximization, structure, and people
leadership, people, and profit maximization
9 . All three of Mintzberg's interpersonal roles are part of the leading function.
True
False
10 . All three of Mintzberg's interpersonal roles are part of the leading function.
True

False
11 . Bill Jackson is the coach of his college soccer team. He is probably:
a top manager
a first-line manager
a middle manager
a unit chief
a managing director
12 . Budgeting is a management skill associated with which management function(s):
planning and leading
planning and controlling
leading and controlling
planning and organizing
controlling and organizing
13 . Efficiency and effectiveness are interrelated.
True
False
14 . In new organizations, workdays have no time boundaries.
True
False
15 . In the coming years, Canada faces a shortage of managers.
True
False
16 . Interpersonal roles include leader, liaison, and figurehead.
True
False
17 . Interpersonal roles include leader, liaison, and figurehead.
True
False
18 . It is easier to be effective if one ignores efficiency.
True
False
19 . Management is defined as a process of __________.
coordinating work activities so that they are completed efficiently and effectively through other people
The work of managers.
Achieving efficiencies at the expense of effectiveness.
coordinating the work of others so that they are effective producers
managing staff and resources
20 . New organizations tend to be less flexible and more dynamic.
True
False

21 . New organizations tend to be less flexible and more dynamic.


True
False
22 . Planning involves _____________ .
determining what tasks must be done
hiring and firing staff
motivating employees
managing behavioural problems among employees
creating strategies to achieve goals
23 . Running productive meetings is a management skill associated with all four of the management
functions (planning, organizing, leading and controlling).
True
False
24 . Scanning the environment is a management skill associated with which management function(s):
planning and organizing
controlling and organizing
planning and controlling
planning and leading
leading and controlling
25 . Setting goals is a management function associated with organizing and leading.
True
False
26 . Systems which interact dynamically with their environment are:
Dynamic systems
Open systems
Nominal systems
Closed systems
Monitoring systems
27 . Technical skills become more important as the manager moves to higher levels in the organization.
True
False
28 . Technical skills become more important as the manager moves to higher levels in the organization.
True
False
29 . The contingency perspective indicates that your management style must be consistent, regardless of the
nature of the organization that you are managing.
True
False
30 . The final management function performed is:
concerned with outputs

controlling
increasing efficiency
increasing effectiveness
leading
31 . The function of leading also includes motivating and resolving conflicts.
True
False
32 . The function of leading also includes motivating and resolving conflicts.
True
False
33 . Traditional organizations tend to be more dynamic and more command-oriented.
True
False
34 . Traditional organizations tend to be more dynamic and more command-oriented.
True
False
35 . When a CEO holds board meetings, they are acting in the role of:
spokesperson
entrepreneur
disseminator
monitor
figurehead
36 . Which of the following factors is not a variable in the contingency perspective to management?
people skills
task technology
environmental uncertainty
individual differences
size of organization
37 . Which of the following is not typical of conceptual skills relevant to today's managers?
the ability to think and conceptualize about abstract situations
the ability to see the organization as a whole
the ability to see how the organization fits into its broader environment
the ability to see the relationships among the organization's sub-units
the ability to plan and lead effectively
38 . Which of the following is part of Mintzbergs Decisional management role?
Leader
Liaison
Figurehead
Negotiator
Monitor
39 . Which of the following statements about organizations is not true?

People are necessary to attain organizational goals.


A home-based business can be a one-person organization.
Each organization has a distinct purpose.
A fraternity is an organization.
Organizations develop a deliberate structure.
40 . With the systems approach to understanding organizations, information is a factor which is both an
__________ and an ___________.
output/control
transformation/output
input/output
transformation/control
input/transformation

A firm that is involved in two or more distinct businesses is known as:


A diversified company
A ventured company
A restructured company
A multinational corporation
Organizations that exploit their distinctive competencies often attain above normal economic performance
and obtain

Distinctive competencies
Common strength
Competitive edge
Competitive parity
Ref: http://books.google.com.pk/books?id=ROvGf0pvK8C&pg=PA204&lpg=PA204&dq=Organizations+that+exploit+their+distincti

Which of the following describe(s) a global marketplace?


The entire world is a marketplace
National borders are irrelevant
The potential for organizations to grow expands dramatically
All of the given options
The __ of a strategy specifies the range of markets in which an organization will
compete
Scope
Distinctive Competency
Resource deployment
Effective strategy
ref: http://www.docstoc.com/docs/24432759/Strategy-and-Strategic-Management

When a manger made a decision and he is uncertain about the outcomes. His
decision is likely to be:
Of Poor Quality
Unacceptable

Successful
Risky
Non-programmed decisions are typically made under a condition of which of the
following?
Certainty
Low levels of risk
Uncertainty
Reliability
Which of the following is part of the 14 principles of management identified by
Henri Fayol?
Scalar chain
Innovation
Efficiency
Motivation

principle . Scalar Chain.


The line term refers to the degree to which subordinates are involved in decision
making.
A well-designed goal should be:
Short and very specific about expected outcomes
Written in terms of outcomes rather than actions
Identifiable to even the first-line supervisors
Specific and within a manageable time frame
Characteristics of Well-Designed Goals
a. Written in terms of outcomes
b. Measurable and quantifiable
c. Clear as to a time frame
d. Challenging but attainable
e. Written down
f. Communicated to all organizational members

The threat of new entrants is the extent to which new competitors can easily enter
a market. Thus the threat of new entrants for a local restaurant than a automobile
company is
High
Low
Moderate
Equal
restaurant and automible company both demand a specific set of expertise and considerable
workforce. In addition to this, both demand a good amount of capital to commence the
business.
Which of the following BEST describes directional plans?
Flexible plans that set out general guidelines
Stringent plans that establish specific directions
Formal plans that provide the directions of how to assemble the product.

General plans that allow the workers to change the schedule of production
SWOT analysis divides organizational strengths into two categories; common
strength and__.
Strategic imitation
Competitive edge
Competitive parity
Distinctive competencies

Management , 11ed, By Ricky W. Griffin Evaluating an organization's strengths

Planning is often called the primary management function because it:


Select correct option:
Offers some basis for future decision making
Creates the vision for the organizational members
Establishes the basis for all the other functions
Sets the tone for the organizational culture
The organization that has developed the capacity to continuously learn, adapt, and
change is called:
Virtual organization
Learning organization
Traditional organization
Bureaucratic organization
Which of the following is important in effectively implementing the chosen
alternative in the decision-making process?
Getting upper-management support
Double-checking your analysis for potential errors
Allowing those impacted by the outcome to participate in the process
Ignoring criticism concerning your chosen alternative
Cultivating a learning culture where organizational members systematically gather
knowledge and share it with others in the organization so as to achieve better
performance is called:
Knowledge management
Technical management
Software management
Systems management
Which one of the following individuals is most closely associated with scientific
management?
Select correct option:
Frederick Taylor
Mary Parker Follett
Harold Koontz
Max Weber
http://www.vuzs.info/

All of the following are steps in objective setting, EXCEPT.


Select correct option:
Specify deadlines

Allow the employee to actively participate


Link rewards to effort
Prioritize goals
Concern for employee motivation is most closely associated with which of the
following management approach?
Select correct option:
Bureaucracy
Organizational behavior
Scientific management
Systems
TCS represents what factor to the Pakistan Postal Service in its specific
environment?
Select correct option:
Competitor
Supplier
Customer
Government agency
An appropriate managerial behavior in a given situation that depends on a wide variety of elements, is called:
Open system
Contingency perspective
Entropy
Quantitative perspective

A budget is an example of which of the following plan?


Select correct option:
Strategic plan
Single use plan
Informal plan
Standing plan
Which of the following is best described as doing something differently and has been
described as discontinuous or complementary change?
Select correct option:
Entrepreneurship
Innovation
Variance
Enterprise
First-line mangers are responsible to report to:
Select correct option:
Top level mangers
Middle-level mangers
Supervisors
Operational mangers

To run organization efficiently an organization need engineering skills as well as managerial


skills. This idea was given by:
Select correct option:
Robert Owen
Charles Babbage
Henry Towne
W. Edwards Deming
Associations of different nations like European Union & NAFTA have been established to:
Select correct option:
Share the armies of each other
Stabilize the political systems
Promote open trade among nations
All of the given options
Discrepancy between existing and a desired state of affairs is called:
Select correct option:
Opportunity
Solution
Weakness
Problem
Low level management has a complete authority to make decisions in case of:
Select correct option:
Centralization
Decentralization
Scalar Chain
Order
Ali is a manager in a multinational organization. He believes that the employees of the
company are lazy and do not have much ambition. Ali can be classed as_____ manager
based on the perspectives of Douglas McGregor.
Select correct option:
Theory Y
Bureaucratic
Theory X
Administrative
Which of the following is called an input to a system?
Select correct option:
Materials
Products
Services
Employee behavior

When objectives are not written down or rarely verbalized, and the planning is
general and lacks continuity, which of the following types of planning is used?
Select correct option:
Environmental planning
Economic planning
Informal planning
Formal planning
Which one of the following is an example of organization?
Select correct option:
Hospitals
Colleges
Factories
All of the given options
The principle of Division of Labor was given by:
Select correct option:
Frederick Taylor
Joseph Juran
Adam Smith
W. Edwards Deming
Which of the following types of plans is highly interdependent and must take into account
the resources and capabilities of the entire organization and its external environments?
Select correct option:
Operational plans
Strategic plans
Tactical plans
Budgetary plans
In some countries, such as Venezuela, titles, rank, and status carry a lot of weight. These
countries have a large:
Select correct option:
Power distance
Uncertainty avoidance
Short- versus long-term orientation
Individualism versus collectivism
Plant managers come under which of following management levels?
Select correct option:
First-line managers
Non-managerial employees
Middle managers
Top managers
At the very first stage of establishment, organizations are generally indulged in:
Select correct option:

Planning
Organizing
Leading
Controlling
Feed Back of ____ is necessary to improve the quality of the product.
Select correct option:
Customers
Employees
Investors
All of the given options
Which one of the following is weakness of MBO?
Select correct option:
Requires training of employees
Coordination of goals and plans
Clarify priorities and expectation
Foster employee motivation
The process of monitoring performance, comparing it with goals and correcting any
significant deviations is known as:
Select correct option:
Planning
Organizing
Leading
Controlling
Associations of different nations like European Union & NAFTA have been established to:
Share the armies of each other
Stabilize the political systems
Promote open trade among nations
All of the given options

A leading supporter of the classical view argues that anytime managers decide on their own
to spend their organizations resources for the social good, are:
Contributing social benefits in the name of goodwill
Just doing what the government says they have to do
Helping make society a better place for everyone to live
Adding to the costs of doing business

In an uncertain environment, managers want to develop plans that are:


Flexible but manageable
Specific and long ranging
Directional but flexible
Specific but flexible

The best way to characterize management is to say that it is:


Part of the economy
An activity or process not sure
An overcrowded career field
One of the chief difficulties for most firms

Managers are responsible for improving ________involvement in decision making and


action taking.
Stake holders
Liaison's
Leader'
Figurehead's

Managers are also responsible for improving stakeholder involvement in decisions making
and actions taking.

The organization that has developed the capacity to continuously learn, adapt, and change
is called:
Virtual organization
Learning organization
Traditional organization
Bureaucratic organization

A Learning Organization is the term given to a company that facilitates the learning of its
members and continuously transforms itself .It is an organization that has developed the
continuous capacity to adapt and change. Like every individuals learn, organizations also
learn things to adapt and change.

Tax revenues and government grants for a city are called its:
Human resources
Financial resources
Physical resources
Informational resources

Cultivating a learning culture where organizational members systematically gather


knowledge and share it with others in the organization so as to achieve better performance

is called:
Knowledge management
Technical management
Software management
Systems management

Knowledge management involves cultivating a learning culture where organizational


members systematically gather knowledge and share it with others to achieve better
performance.

The most tempting question for leader, How do I motivate people in spite of constraints?,
addresses:
Select correct option:
Planning function
Organizing function
Leading function
Controlling function

All of the following are characteristics of total quality management EXCEPT:


Select correct option:
Intense focus on the competition
Concern for continual improvement
Improvement in quality of everything the organization does
Accurate measurement

Planning is often called the primary management function because it:


Offers some basis for future decision making
Creates the vision for the organizational members
Establishes the basis for all the other functions
Sets the tone for the organizational culture

Planning involves defining the organizations goals, establishing an overall strategy for
achieving these goals, and developing a comprehensive set of plans to integrate and
coordinate organizational work. Planning is in fact the advance decision making by
managers. Keeping in mind that decision making and decision taking, may it be for present
or for future is always required and is very much a managerial job.

Which one of the following approaches to management has also been labeled as operations
research or management science?
The qualitative approach
The quantitative approach
The experimental approach
The theoretical approach

The quantitative approach, also called operations research or management science, is the
use of quantitative techniques to improve decision making, and it evolved out of the
development of mathematical and statistical solutions to military problems during World War
II.

Similar activities that are grouped together under one manager in an organization is called:
Authority
Unity of command
Unity of direction
Order
Ref http://books.google.com.pk/books?
id=CmFjF5tNmuEC&pg=PA25&lpg=PA25&dq=Similar+activities+that+are+grouped+together+under+one+manager+i
n+an+organization+is

A culture where employees show a great deal of respect for authority and where titles and
ranks are important would be an example of which dimension of national culture?
Individualism versus collectivism
Power distance
Uncertainty avoidance
Short- versus long-term orientation

Geert Hofstede found that national cultures differed on four dimensions: individualism vs.
collectivism, which describes who its believed is responsible for caring for peoplethe
individual or the group; (b) power distance, or the extent to which a society accepts the fact
that power is distributed unequally; (c) uncertainty avoidance, or the degree to which
people are tolerant of behavior and opinions that differ from their own; and (d) quantity of
life (assertiveness and the acquisition of money and material goods) vs. quality of life
(importance of relationships and concern for the welfare of others).

A guest at a hotel complains that the room hasnt been thoroughly vacuumed. This is an
event that occurs occasionally and can be handled with a standardized, routine response.
This would be a:

A programmed decision
Ill-structured decisions
Novel decisions
Non-programmed decisions

Non-programmed decisions are those for which predetermined decision rules are
impractical because the situations are novel and/or ill-structured.

Which of the following BEST describes directional plans?


Select correct option:
Have clearly defined objectives
Identify general guidelines
Meet the needs of a unique situation
Last for 35 years

Directional plans are flexible plans that set out general guidelines. Single-use plans are
one-time plans specifically designed to meet the needs of a unique situation. Standing plans
are ongoing plans that provide guidance for activities performed repeatedly and include
policies, rules, and procedures.

What was the focus of Charles Babbages (an English mathematician) attention?
Select correct option:
Efficiencies of production
Division of labor
Unity of direction
Centralization

Charles Babbage (1792-1871) is considered to be the father of modern


computing. He foresaw the need for work specialization involving mental work.
His management ideas also anticipated the concept of profit sharing to improve
productivity.

Which of the following view is concerned with respecting and protecting individual liberties
and privileges such as the rights to privacy, freedom of conscience, free speech, life and
safety, and due process?
Select correct option:
Utilitarian view
Rights view
Theory of justice view
Integrative social contracts theory view

The rights view of ethics says that ethical decisions are concerned with respecting and protecting
individual liberties and privileges such as the rights of privacy, freedom of conscience, free speech, life
and safety, and due process.

Budget is drafted to achieve the:


Select correct option:
Short-term goals
Strategic goals
Financial goals
Long-term goals

Which of the following theory proposes that ethical decisions be based on existing ethical
norms in industries and communities in order to determine what constitutes right and
wrong?
Select correct option:
Theory of justice of ethics
Integrative social contracts
Right view of ethics
Utilitarian view of ethics

An appropriate managerial behavior in a given situation that depends on a wide variety of


elements, is called:
Select correct option:
Open system
Contingency perspective

Entropy
Quantitative perspective

contingency perspectiveSuggests that appropriate managerial behavior in a given situation depends


on, or is contingent on, a wide variety of elements

In order to achieve ___________, organizations strive to minimize their resource wastage.


Select correct option:
Efficiency
Effectiveness
Assurance
Enhancement

Which of the following statement Best describes a Procedure?


Select correct option:
An explicit statement detailing exactly how to deal with a decision
A series of interrelated sequential steps to respond to a structured problem
A set of guidelines that channel a managers thinking in dealing with a problem
Allows a manager to use broad decision-making authority

Which of the following is a one-time plan specifically designed to meet the needs of a unique
situation.
Select correct option:
Multipurpose plan
Strategic plan
Operational plan
Single-use plan

Single-use plan is a one-time plan that's specifically designed to


meet the needs of a unique situation and is created in response to non
programmed decisions that managers make. Standing plans, on the other
hand, are ongoing plans that provide guidance for activities
repeatedly performed in the organization and that are created in
response to programmed decisions that managers make.

Which of the following is a cultural dimension in which people expect others in their group to
look after them and protect them when they are in trouble?
Select correct option:
Power distance
Collectivism
Short- versus long-term orientation
Uncertainty avoidance

Individualism versus collectivism: Individualism is a cultural dimension in which people are


supposed to look after their own interest while collectivism is a cultural dimension in which
people expect others in their group to look after them and protect them.

People with which of the following decision making style have a high tolerance for ambiguity
and tend to focus on the people or social aspects of a work situation
Analytical
Behavioral
Directive
Conceptual

b. The analytic style is one characterized by a high tolerance for ambiguity and a rational
way of
thinking.

Amna has been given goals related to the rollout and sales of her department. Her success
at implementing the strategy will be assessed by comparing actual performance against the
goals. This comparison is known a
Planning
Organizing
Implementing
Controlling

Which of the following types of plans is highly interdependent and must take into account
the resources and capabilities of the entire organization and its external environments
Operational plans
Strategic plans
Tactical plans
Budgetary plans

A leading supporter of the classical view argues that anytime managers decide on their own
to spend their organizations resources for the social good, are:
Contributing social benefits in the name of goodwill
Just doing what the government says they have to do
Helping make society a better place for everyone to live
Adding to the costs of doing business

A form of group decision making in which a group is used to achieve a consensus of expert
opinion is called:
Interacting group
Delphi technique
Nominal group
Brainstorming

Pakistan is a member of which of the following associations


asean
sarc
eu

nafta

The first step of the project planning process is to


Develop an overall project schedule .
Identify all the activities in the project and the resources needed to do them
Estimate the amount of time necessary for the completion of each activity
Define the project's goals

Which of the given function plays an essential role in assuring the exact performance
towards goal attainment
Planning
Organizing
Leading
Controlling

Which of the following is NOT a valid assumption about rationalit


The problem is clear and unambiguous
A single well-defined goal is to be achieved
Preferences are clear
Preferences are constantly changing

The major contribution of the Industrial Revolution was the substitution of______ for human
power.
Machine power
Electricity

Water power
Critical thinking

Which of the following is known as the process of getting activities completed efficiently and
effectively with and through other people
Leading
Management
Supervision
Controlling

When objectives are not written down or rarely verbalized, and the planning is general and
lacks continuity, which of the following types of planning is used
Environmental planning
Economic planning
Informal planning
Formal planning

Which one of the following items best reflects the extent to which a society places a high
value on reducing risk and instability
Uncertainty avoidance
Power distance
Masculinity/femininity
Long-term/short-term orientation

The management process includes all of the following management functions EXCEPT:
Planning

Innovating
Leading
Organizing

Associations of different nations like European Union & NAFTA have been established to:
Associations of different nations like European Union & NAFTA have been established to:
Share the armies of each other
Stabilize the political systems
Promote open trade among nations
All of the given options

Chapter 6 Decision Making: The Essence of the Managers Job


81. When lower-level managers deal with well-structured problems and they rely on procedures and rules to
solve the problems, this refers to a relationship between types of problems and types of decisions known as
________________.
a. preprogramming
b. focused decision making
c. integration
d. separation
(c; moderate; p. 143)
82. Which of the following is likely to make the most programmed decisions?
a. the CEO of PepsiCo.
b. the vice president of General Motors Cadillac Division.
c. the head of the Minute Maid Division at Coca-Cola.
d. the manager of the local McDonalds.
(d; easy; p. 142)
83. Which of the following is an accurate statement concerning the impact of programmed decisions on
organizations?
a. They maximize the need for managers to exercise discretion.
b. They decrease the need for high-cost managerial talent.
c. They increase the amount of judgment needed by managers.
d. They decrease organizational efficiency.
(b; moderate; p. 142)
84. ______________ is a situation in which a manager can make accurate decisions because the outcome of

every alternative is known.


a. Certainty
b. Risk
c. Uncertainty
d. Maximax
e. Maximin
(a; easy; p. 144)
85. If an individual knows the price of three similar cars at different dealerships, he or she is operating under
what type of decision-making condition?
a. risk
b. uncertainty
c. certainty
d. factual
(c; easy; p. 144)
86. Nonprogrammed decisions are typically made under a condition of ________________.
a. certainty
b. low levels of risk
c. uncertainty
d. reliability
(c; moderate; p. 145)
87. Organizational efficiency is improved by the use of _________________.
a. programmed decisions
b. nonprogrammed decisions
c. less planning
d. lower expectations and lower demands by top manager
(a; moderate; p. 142)
88. A retail clothing store manager who estimates how much to order for the current spring season based on
last springs outcomes is operating under what kind of decision-making condition?
a. seasonal
b. risk
c. uncertainty
d. certainty
(b; difficult; p. 142)
89. ______________ is a situation in which a decision maker has neither certainty nor reasonable probability
estimates available.
a. Certainty
b. Risk
c. Uncertainty
d. Maximax
(c; easy; p. 145)
90. A person at a horse racetrack who bets all of his/her money on the odds-based long shot to win (rather
than place or show) is making what kind of choice?
a. maximax
b. maximin

c. minimax
d. minimin
(a; moderate; p. 146)
91. Which of the following best describes maximizing the minimum possible payoff?
a. maximax
b. maximin
c. minimax
d. minimin
(b; moderate; p. 146)
92. An individual making a maximin type of choice has what type of psychological orientation concerning
uncertain decision making?
a. optimist
b. realist
c. pessimist
d. satisficer
(c; moderate; p. 146)
93. Which of the following would best describe the psychological orientation of an individual making a
maximax type of choice?
a. optimist
b. realist
c. pessimist
d. satisficer
(a; moderate; p. 146)
94. Optimistic managers could be expected to utilize their maximax orientation when they _______________.
a. maximize the maximum payoff
b. maximize the minimum payoff
c. minimize the maximum regret
d. minimize the minimum regret
(a; easy; p. 146)
95. According to the textbook, a manager who desires to minimize his or her maximim regret will opt for a
______________ choice.
a. maximax
b. maximin
c. minimax
d. minimin
(c; moderate; p. 146)
96. All of the following are mentioned in the textbook as decision-making styles except _________________>
a. directive
b. egotistical
c. analytic
d. conceptual
(b; moderate; p. 147)

THE DECISION-MAKING PROCESS


Decisions, Decisions (Scenario)
Sondra needed help. Her insurance companys rapid growth was necessitating making some changes, but
what changes? Should they add to the existing information system? Buy a new system? She was given the
responsibility of analyzing the companys present information system and decide what the company should
do that would give them plenty of room. She was confused and needed help in making the correct decision.
97. According to the decision-making process, the first step Sondra should take would be to _____________.
a. analyze alternative solutions
b. identify decision criteria
c. evaluate her decisions effectiveness
d. identify the problem
(d; moderate; p. 134)
98. According to the decision-making process, the second step Sondra should take would be to
____________.
a. analyze alternative solutions
b. identify decision criteria
c. evaluate her decisions effectiveness
d. allocate weights to the criteria
(b; moderate; p. 136)
99. The very last step Sondra should take, according to the decision-making process, would be to
__________.
a. analyze alternative solutions
b. select alternatives
c. implement the alternative
d. evaluate the decisions effectiveness
(d; easy; p. 138)
100. When Sondra is conveying her decision to those affected and getting their commitment to it, she is
performing which step in the decision-making process?
a. analyzing alternative solutions
b. selecting alternatives
c. implementing the alternative
d. identifying the problem
(c; moderate; p. 138)
101. Allocating weights to the criteria is the step in the decision-making process that occurs between
identifying the decision criteria and ______________.
a. developing the alternatives
b. selecting alternatives
c. implementing the alternative
d. identifying the problem
(a; difficult; p. 138)
Colleen is a student, and her older brother has loaned her an old car. The car is in need of several repairs before she
will feel comfortable driving it.

102. Colleen needs a vehicle, but she has to decide if the vehicle is worth repairing. She is facing a(n)
_____________, a discrepancy between an existing and a desired state of affairs.
a. alternative
b. weighted problem set
c. problem
d. certainty avoidance situation
(c; moderate; p. 134)
103. In talking with an automotive repair person, Colleen needs to prioritize the repairs. Her first concern is
safety of the vehicle. This step in the decision-making process is called __________________.
a. weighting the decision criteria
b. analysis of alternatives
c. identification of decision criteria
d. selection of an alternative
(c; moderate; p. 136)
104. Colleen decides to have all of the problems fixed on the car. She assumes that the repair person has
found all the problems and that there will be no problem correcting the imperfections within a specified
budget. This is an example of a __________ decision.
a. parochial
b. irrational
c. ethical
d. rational
(d; challenging; p. 139)
105. Colleens brother has a different view of the repairs. He assumes that the repair person is using the best
information available, but there may be other unexpected repairs that might surface and that a higher budget
might be more reasonable. He is using ______________.
a. rational decision making
b. risk avoidance
c. bounded rationality
d. Stage 4 decision making
(c; challenging; p. 140)
106. Colleens brother feels the car is worth repairing because he has owned several cars made by the same
manufacturer as this car, and he has driven this car for several years. He is using _________ to decide the car
has value despite of its need of repair.
a. intuitive decision making
b. selective coordination of thought processes
c. sunk costs
d. return on investment
(a; challenging; p. 141)

THE MANAGER AS A DECISION MAKER


The First Job (Scenario)
Upon graduation, you search for a job with the universitys job placement center. Although you have studied and

prepared to work in an advertising agency, the first job that you are offered is a supervisor in a manufacturing
company working the afternoon shift from 3:00 P.M. until 11:00 P.M.
107. Although the job in the manufacturing firm was good enough, you acted in a __________ manner by
accepting a job.
a. self-righteous
b. boundedly rational
c. satisfactory
d. liberal
(b; moderate; p. 140)
108. If you had made a larger search using the Internet and other employment search processes, you might
have been able to find more employment opportunities. This would have been a more _________ decisionmaking process.
a. nonprogrammable
b. uncertain
c. risky
d. perfectly rational
(d; moderate; p. 139)
109. Under bounded rationality, you would be expected to search for a job by ________________.
a. looking at all the opportunities that can be analyzed in the time available
b. looking at all the opportunities available
c. looking outside the box in your search
d. analyzing all the opportunities until you find the perfect job

110. If you use a shortened process of searching for a job, it is likely you ___________ rather than maximized
in your decision process.
a. minimized
b. rationalized
c. satisficed
d. agreed
(c; challenging; p. 140)
111. During your job search, you depend on __________ decision making by making your decision on
accumulated judgment and experience.
a. experiential
b. legal
c. intuitive
d. formidable

THE MANAGER AS DECISION MAKER


Is the Picture Clear? (Scenario)
Sharon was the regional manager of a large cable television company. She faced many problems and decisions daily,
such as how to price each market, who to hire, what kind of technology she should purchase, and how she should
handle increasing customer complaints. She needed some help sorting these issues out.
112. Unfortunately, Sharon also faces issues containing information that is ambiguous or incomplete, such

as what kind of technology to purchase. These are known as ______________ problems.


a. poorly structured
b. variable
c. random
d. hit-and-miss
(a; moderate; p. 142)
113. When a customer calls and requests a refund for a partial months usage of cable, the fact that such
situations are routine and most likely have a standard response would make the response a ______________
decision.
a. standard
b. routine
c. policy
d. programmed
(d; moderate; p. 142)
114. Sometimes Sharon follows a ______________, a series of interrelated sequential steps for responding to
a structured problem.
a. rule
b. policy
c. procedure
d. suggestion

115. Sometimes Sharon instructs her local managers to follow ______________ when confronted with
problem situations These establish parameters for the manager making the decision rather than specifically
stating what should or should not be done.
a. rules
b. procedures
c. policies
d. orders
(c; moderate; p. 142)
Decision-Making Conditions (Scenario)
Sandy Jo is the manager for TrucksRUs, a medium-sized hauling service located in the Southeast. She is responsible
for scheduling trucks, initiating new routes, and staffing both existing and new routes. She is currently struggling with
existing information about the profitability of existing and future truck routes.
116. Joe, Sandy Jos best driver, tells her that he believes he can estimate that there is a 75 percent
probability that they can get the business of Pork Brothers, Inc. if they initiate a truck route through rural
North Carolina. Joe is operating under a condition of ______________.
a. certainty
b. risk
c. uncertainty
d. maximax

117. Sandy Jo can make accurate decisions if she is willing to pay $5,000 for research about the profitability
of various truck routes. If she pays for the research, she believes that she is operating under a condition of
____________.
a. certainty

b. risk
c. uncertainty
d. maximax
(a; difficult; p. 144)
118. Sandy Jo knows that she is operating in an uncertain environment. She is basically an optimist, and we
would, therefore, expect her to follow a ______________ strategy.
a. certainty
b. risk
c. uncertainty
d. maximax
(d; moderate; p. 146)
119. Sandy Jo knows that she is operating in an uncertain environment. She is basically a pessimist, and we
would, therefore, expect her to follow a ______________ strategy.
a. certainty
b. risk
c. minimax
d. maximin
(d; moderate; p. 146)
120. Sandy Jo wishes to minimize her regret and will probably opt for a ______________ strategy.
a. certainty
b. risk
c. minimax
d. maximax
(c; moderate; p. 146)
Managing Your Career (Scenario)
Michelle has a new job and is learning to perform the tasks assigned to her. Different situations demand different
decision-making processes.
121. Michelle finds a situation that instructs her in specific, interrelated, sequential steps to respond to a
problem. This is referred to as a _____________.
a. rule
b. policy
c. broad guideline
d. procedure
(d; challenging.; p. 142)
122. Michelle finds a company directive that specifically restricts her from taking certain actions. This is a
_____________.
a. rule
b. policy
c. broad guideline
d. procedure
(a; moderate; p. 142)
123. As she learns the general guidelines of the job, Michelle is given more decision-making authority. The
guidelines establish parameters for decision making and are referred as a _____________.
a. rule

b. policy
c. broad guideline
d. procedure
(b; challenging; p. 142)
124. Michelle eventually finds a problem that has no cut-and-dry solution. The problem is unique and will
never occur again. This problem is referred to as _____________.
a. flexible
b. programmed
c. adaptable
d. nonprogrammed
(d; moderate; p. 143)

Essay Questions
THE DECISION-MAKING PROCESS
125. In a short essay, list and discuss the eight steps in the decision-making process.
Answer
a. Step 1: Identifying a problemthe decision-making process begins with the existence of a problem or a
discrepancy between an existing and a desired state of affairs. However, a discrepancy without pressure to take
action becomes a problem that can be postponed.
b. Step 2: Identify decision criteriaonce the manager has identified a problem that needs attention, the decision
criteria important to resolving the problem must be identified. That is, managers must determine whats relevant in
making a decision.
c. Step 3: Allocating weights to the criteriaat this step, the decision maker must weigh the items in order to give
them the correct priority in the decision. A simple approach is to give the most important criterion a weight of 10 and
then assign weights to the rest against that standard.
d. Step 4: Developing alternativesthe fourth step requires the decision maker to list the viable alternatives that could
resolve the problem. No attempt is made in this step to evaluate the alternative, only to list them.
e. Step 5: Analyzing alternativesonce the alternatives have been identified, the decision maker must critically
analyze each one. From this comparison, the strengths and weaknesses of each alternative become evident.
f. Step 6: Selecting an alternativethe sixth step is the important act of choosing the best alternative from among
those considered. All the pertinent criteria in the decision have now been determined and weighted, and the
alternatives have been identified and analyzed.
g. Step 7: Implementing the alternativeimplementation involves conveying the decision to those affected by it and
getting their commitment to it. If the people who must carry out a decision participate in the process, theyre more
likely to enthusiastically support the outcome than if they are just told what to do.
h. Step 8: Evaluating decision effectivenessthe last step in the decision-making process involves appraising the
outcome of the decision to see if the problem has been resolved. Did the alternative chosen and implemented
accomplish the desired result? If not, the manager may consider returning to a previous step or may even consider
starting the whole decision process over.
(difficult; p. 134)
THE MANAGER AS DECISION MAKER
126. In a short essay, discuss the assumptions of rationality and the validity of those assumptions.
Answer
A decision maker who was perfectly rational would be fully objective and logical. He or she would carefully define a
problem and would have a clear and specific goal. Moreover, making decisions using rationality would consistently

lead toward selecting the alternative that maximizes the likelihood of achieving that goal. The assumptions of
rationality apply to any decision. Rational managerial decision making assumes that decisions are made in the best
economic interests of the organization That is, the decision maker is assumed to be maximizing the organizations
interests, not his or her own interests. Managerial decision making can follow rational assumptions if the following
conditions are met: The manager is faced with a simple problem in which the goals are clear and the alternatives
limited, the time pressures are minimal, the cost of seeking out and evaluating alternatives is low, the organizational
culture supports innovation and risk taking, and outcomes are relatively concrete and measurable However, most
decisions that managers face in the real world dont meet all those tests.
(moderate; p. 139)
127. In a short essay, discuss bounded rationality and satisficing.
Answer
Despite the limits to perfect rationality, managers are expected to follow a rational process when making decisions.
However, certain aspects of the decision-making process are not realistic as managers make decisions. Instead,
managers tend to operate under assumptions of bounded rationality; that is, they behave rationally within the
parameters of a simplified decision-making process that is limited by an individuals ability to process information.
Managers satisfice, rather than maximize, because they cant possibly analyze all information on all alternatives. That
is, they accept solutions that are good enough. They are being rational within the limits of their informationprocessing ability.
(easy; p. 140)
128. In a short essay, discuss the difference between well-structured and poorly-structured problems.
Include specific examples of each type of problem to support your answer. Next, discuss the type of
decisions that would be used to address each of these problems.
Answer
a. Well-structured problemsthe goal of the decision maker is clear, the problem is familiar, and information about the
problem is easily defined and complete. Examples of these types of problems might include a customer wanting to
return a purchase to a retail store, a supplier being late with an important delivery, a news team responding to an
unexpected and fast-breaking event, or a colleges handling of a student wanting to drop a class. Such situations are
called well-structured problems because they are straightforward, familiar, and easily defined problems. In handling
these problem situations, the manager uses a programmed decision. Decisions are programmed to the extent that
they are repetitive and routine and to the extent that a definite approach has been worked out for handling them.
Since the problem is well structured, the manager doesnt have to go to the trouble and expense of going through an
involved decision progress. Programmed decision making is relatively simple and tends to rely heavily on previous
solutions.
b. Poorly-structured problemsthese problems are new or unusual, and information for them is ambiguous or
incomplete. For example, the selection of an architect to design a new corporate manufacturing facility in Bangkok is
an example of a poorly-structured problem. When problems are poorly structured, managers must rely on
nonprogrammed decision making in order to develop unique solutions. Nonprogrammed decisions are unique and
nonrecurring. When a manager confronts a poorly-structured problem or one that is unique, there is no cut-and-dry
solution. It requires a custom-made response through nonprogrammed decision making.
(difficult; p. 142)
129. In a short essay, discuss the differences between a procedure, a rule, and a policy. Include specific
examples of each to support your answer.
Answer
a. A procedure is a series of interrelated sequential steps that a manager can use for responding to a structured
problem. The only real difficulty is in identifying the problem. Once the problem is clear, so is the procedure. For
instance, a purchasing manager receives a request from the sales department for 15 PalmPilots for use by the
companys customer service representatives. The purchasing manager knows that there is a definite procedure for

handling this decision. The decision-making process in this case is merely executing a simple series of sequential
steps.
b. A rule is an explicit statement that tells a manager what he or she can or cannot do. Managers frequently use rules
when they confront a well-structured problem because they are simple to follow and ensure consistency. For example,
rules about lateness and absenteeism permit supervisors to make disciplinary decisions rapidly and with a relatively
high degree of fairness.
c. A policy provides guidelines to channel a managers thinking in a specific direction. In contrast to a rule, a policy
establishes parameters for the decision maker rather than specifically stating what should or should not be done.
Policies typically contain an ambiguous term that leaves interpretation up to the decision maker. For instance, each of
the following is a policy statement: The customer always comes first and should always be satisfied, We promote
from within, whenever possible, and Employee wages shall be competitive within community standards.
(moderate; p. 142)
True/False Questions
THE DECISION-MAKING PROCESS

1.

A discrepancy between an existing and a desired state of affairs is an opportunity.


(False; moderate; p. 134)

2.

The first step in the decision-making process is identifying a problem.


(True; easy; p. 134)

3.

The final step in the decision-making process is implementing the chosen alternative.
(False; moderate; p. 138)

4.
It is possible that at the end of the decision-making process you may be required to start
the decision process over again.
(True; easy; p. 138)
5.

A decision criterion defines what is relevant in a decision.


(True; moderate; p. 136)

6.
The step in the decision-making process that involves choosing a best alternative is
termed implementation.
(False; moderate; p. 138)
THE MANAGER AS DECISION MAKER

7.

Decision making is synonymous with managing.


(True; easy; p. 139)

8.

Managerial decision making is assumed to be rational.


(True; moderate; p. 139)

9.

One assumption of rationality is that we cannot know all of the alternatives.


(False; difficult; p. 139)

10.

Accepting solutions that are good enough is termed satisfying.


(False; easy; p. 140)

11.

Managers tend to operate under assumptions of bounded rationality.


(True; moderate; p. 140)

12.

Managers regularly use their intuition in decision making.


(True; easy; p. 141)

13.

Rational analysis and intuitive decision making are complementary.


(True; moderate; p. 141)

14.
do.

A policy is an explicit statement that tells a manager what he or she ought or ought not to
(False; moderate; p. 142)

15.

Programmed decisions tend to be repetitive and routine.


(True; easy; p. 142)

16.

Rules and policies are basically the same.


(False; moderate; p. 142)

17.

Nonprogrammed decisions are unique and nonrecurring.


(True; moderate; p. 143)

18.

Most managerial decisions in the real world are fully nonprogrammed.


(False; easy; p. 143)

19.

Organizational efficiency is facilitated by the use of programmed decision making.


(True; moderate; p. 142)

20.

The ideal situation for making decisions is low risk.


(False; moderate; p. 142)

21. Risk is a situation in which a decision maker has neither certainty nor reasonable
probability estimates.
(False; difficult; p. 144)
22.

An optimistic manager will follow a maximin approach.


(False; moderate; p. 146)

23. People who have a low tolerance for ambiguity and are rational in their way of thinking are
said to have a directive style.
(True; moderate; p. 147)
24. Decision makers with an analytic style have a much lower tolerance for ambiguity than do
directive types.
(False; moderate; p. 147)
25. Individuals with a conceptual style tend to be very broad in their outlook and will look at
many alternatives.
(True; moderate; p. 147)
26.

Behavioral-style decision makers work well with others.


(True; easy; p. 147)

27. Risk is the condition in which the decision maker is able to estimate the likelihood of
certain outcomes.
(True; easy; p. 144)

MANAGING WORKFORCE DIVERSITY


28. According to the boxed feature, Managing Workforce Diversity, diverse employees tend
to make decisions faster than a homogeneous group of employees.
(False; moderate; p. 149)
29.

Programmed decision making facilitates organizational efficiency.


(True; moderate; p. 149)

Multiple-Choice Questions

For each of the following choose the answer that most completely answers the question.
THE DECISION-MAKING PROCESS
30.
a.
b.
c.
d.

Decision making is (simplistically) typically described as which of the following?


deciding what is correct1
putting preferences on paper
choosing among alternatives
processing information to completion
(c; moderate; p. 134)

31. A series of eight steps that begins with identifying a problem and decision criteria and
allocating weights to those criteria; moves to developing, analyzing, and selecting an alternative
that can resolve the problem; implements the alternative; and concludes with evaluating the
decisions effectiveness is the ___________.
a.
decision-making process
b.
managerial process
c.
maximin style
d.
bounded rationality approach
(a; easy; p. 134)
32. A(n) ____________ is the existence of a discrepancy between existing and a desired state
of affairs.
a.
b.
c.
d.

33.
a.
b.
c.
d.

opportunity
solution
weakness
problem
(d; easy; p. 134)

The first step in the decision-making process is which of the following?


developing decision criteria
allocating weights to the criteria
analyzing alternatives
identifying a problem
(d; moderate; p. 134)

34.
a.
b.
c.
d.

35.
a.
b.
c.
d.

In identifying the problem, a manager _________________.


compares the current state of affairs with where they want to be
expects problems to be defined by neon lights
looks for discrepancies that can be postponed
will not act when there is pressure to make a decision
(a; easy; p. 135)

The process of selecting decision criteria is accomplished by ________________.


massaging the data that will support a given decision
flipping a coin to produce a 50-50 chance of being right
determining what is relevant in making the decision
examining the difference in the opportunities available
(c; challenging; p. 136)

36. Which of the following statements is true concerning problem identification?


a.
Problems are generally obvious.
b.
A symptom and a problem are basically the same.
c.
Well-trained managers generally agree on what is considered a problem.
d.
The problem must be such that it exerts some type of pressure on the manager to act.
e.
To be considered a problem, managers must be aware of the discrepancy but not have the
resources necessary to take action.
(d; moderate; p. 134)
37.
a.
b.
c.
d.

38.
a.
b.
c.
d.

39.
a.
b.
c.
d.

If all criteria in the decision making are equal, weighting the criteria ______________.
improves decision making when large numbers of criteria are involved
is not needed
produces excellent decisions
improves the criteria
(b; easy; p. 136)

The final step in the decision-making process is to _______________.


pick the criteria for the next decision
reevaluate the weightings of the criteria until they indicate the correct outcome
evaluate the outcome of the decision
reassign the ratings on the criteria to find different outcomes
(c; challenging; p. 138)

Which of the following must be present in order to initiate the decision-making process?
plenty of time
pressure to act
a lack of authority
a lack of resources
(b; moderate; p. 134)

40.
a.
b.
c.
d.

To determine the _____________, a manager must determine what is relevant or


important to resolving the problem.
geocentric behavior needed
number of allowable alternatives
weighting of decision criteria
decision criteria
(d; moderate; p. 136)

41. Which of the following is the step in the decision-making process that follows identifying a
problem and decision criteria?
a.
allocating weights to the criteria
b.
analyzing the alternatives
c.
selecting the best alternative
d.
implementing the alternative
(a; moderate; p. 136)
42. In allocating weights to the decision criteria, which of the following is helpful to remember?
a.
All weights must be the same.
b.
The total of the weights should sum to 1.0.
c.
Every factor criterion considered, regardless of its importance, must receive some
weighting.
d.
Assign the most important criterion a score, and then assign weights against that
standard.
(d; difficult; p. 136)
43. In Step 6 of the decision-making process, each alternative is evaluated by appraising it
against the _____________.
a.
subjective goals of the decision maker
b.
criteria
c.
assessed values
d.
implementation strategy
(b; moderate; p. 138)
44. Selecting an alternative in the decision-making process is accomplished by
__________________.
a.
choosing the alternative with the highest score
b
choosing the one you like best
c.
selecting the alternative that has the lowest price
d.
selecting the alternative that is the most reliable
(a; easy; p. 138)
45.
to it.
a.
b.
c.
d.

______________ includes conveying a decision to those affected and getting their commitment

selecting an alternative
evaluation of decision effectiveness
implementation of the alternatives
analyzing alternatives
(c; moderate; p. 138)
46. Which of the following is important in effectively implementing the chosen alternative in the
decision-making process?

a.
b.
b.
d.

getting upper-management support


double-checking your analysis for potential errors
allowing those impacted by the outcome to participate in the process
ignoring criticism concerning your chosen alternative
(c; moderate; p. 138)

47.
a.
b.
c.
d.

Which of the following is the final step in the decision-making process?


identifying the problem
evaluating the decisions effectiveness
identifying decision criteria
selecting an alternative that can resolve the problem
(b; easy; p. 138)

48. Which of the following is important to remember in evaluating the effectiveness of the
decision-making process?
a.
ignore criticism concerning the decision-making process
b.
you may have to start the whole decision process over
c.
Restart the decision-making process if the decision is less than 50 percent effective.
d.
Ninety percent of problems with decision making occur in the implementation step.
(b; difficult; p. 138)
THE MANAGER AS DECISION MAKER
49. Managers are assumed to be ______________; they make consistent, value-maximizing
choices within specified constraints.
a.
rational
b.
leaders
c.
organized
d.
satisficers
(a; easy; p. 139)
50.
a.
b.
c.
d.

It is assumed that a perfectly rational decision maker ______________.


does not follow rational assumptions
does not consider value maximizing as an objective
offers inconsistent decisions
would be objective and logical
(d; moderate; p. 139)

51. Rational managerial decision making assumes that decisions are made in the best
______________ interests of the organization.
a.
economic
b.
pay-off
c.
statistical
d.
budgetary
(a; moderate; p. 139)
52.
a.
b.
c.
d.

Managers can make rational decisions if _________________.


the problem is simple
the goals are clear
the alternatives are limited
all of the above

(d; challenging; p. 140)

53.
a.
b.
c.
d.

54.
a.
b.
c.
d.

Managers can make rational decisions if ______________.


the costs of finding and evaluating alternatives is low
the organizational culture does not encourage risk taking
outcomes are concrete and measurable
a and c
(d; challenging; p. 140)

Which of the following is not a valid assumption about rationality?


the problem is clear and unambiguous.
a single well-defined goal is to be achieved.
preferences are clear.
preferences are constantly changing.
(d; difficult; p. 140)

55. In bounded rationality, managers construct ______________ models that extract the
essential features from problems.
a.
multiple
b.
binding
c.
interactive
d.
simplified
(d; difficult; p. 140)
56. According to the textbook, because managers cant possibly analyze all information on all
alternatives, managers ______________, rather than ______________.
a.
maximize; satisfice
b.
maximize; minimize
c.
satisfice; minimize
d.
satisfice; maximize
(d; moderate; p. 140)
57. When managers circumvent the rational decision-making model and find ways to satisfice, they are following
the concept of _________________.
a.
jurisprudence
b.
bounded rationality
c.
least-squared exemptions
d.
self-motivated decisions
(b; moderate; p. 140)

58. The type of decision making in which the solution is considered good enough is known
as which of the following?
a.
intuition
b.
rationalization
c.
maximizing
d.
satisficing
(d; moderate; p. 140)

59. When a decision maker chooses an alternative under perfect rationality, she chooses a
______________ decision, whereas under bounded rationality she chooses a ______________
decision.
a.
minimizing; satisficing
b.
satisficing; maximizing
c.
maximizing; satisficing
d.
maximizing; minimizing
(c; difficult; p. 140)
60. An increased commitment to a previous decision despite evidence that it may have been
wrong, is referred to as _______________.
a.
economies of commitment
b.
escalation of commitment
c.
dimensional commitment
d.
expansion of commitment
(b; moderate; p. 141)
61.
a.
b.
c.
d.

62.
a.
b.
c.
d.

63.
a.
b.
c.
d.

Managerial decisions are strongly influenced by ________________.


the organizations culture
internal politics
power considerations
all of the above
(d; easy; p. 141)

Intuitive decision making is _______________.


not utilized in organizations
a conscious process based on accumulated judgment
making decisions based on experience, feelings, and accumulated judgment
important in supporting escalation of commitment
(c; moderate; p. 141)

In studying intuitive decision making, researcher have found that __________________.


managers do not make decisions based on feelings or emotions
managers use data from their subconscious mind to help make their decisions
rational thinking always works better than intuitive
accumulated experience does not support intuitive decisions
(b; moderate; p. 141)

64. According to the textbook, all of the following are aspects of


intuition except __________________.
a.
experienced-based decisions
b.
affect-initiated decisions
c.
cognitive-based decisions
d.
programmed decisions
(d; easy; p. 141)
65. According to the textbook, _____________ are straightforward, familiar, and easily defined
problems.
a.
poorly structured problems

b.
c.
d.

structured problems
unique problems
nonprogrammed problems
(b; moderate; p. 142)

66.
a.
b.
c.
d.

Structured problems align well with which type of decision making?


programmed
satisficing
intuition
gut feeling
(a; moderate; p. 142)

67. The most efficient way to handle structured problems is through ______________
decision making.
a.
linear
b.
unique
c.
focused
d.
programmed
(d; moderate; p. 142)
68. ______________ decision making is relatively simple and tends to rely heavily on
previous solutions.
a.
Nonprogrammed
b.
Linear
c.
Satisficing
d.
Programmed
(d; moderate; p. 142)
69.
a.
b.
c.
d.
70.
a.
b.
c.
d.

Programmed decision making tends to rely on which of the following?


the problem solvers ability to think on his or her feet
the development of a clear set of alternative solutions
previous solutions
identification of the actual problem
(c; easy; p. 142)
A procedure _______________.
is an explicit statement detailing exactly how to deal with a decision
is a series of interrelated sequential steps to respond to a structured problem
is a set of guidelines that channel a managers thinking in dealing with a problem
allows a manager to use broad decision-making authority
(b; moderate; p. 142)

71. A ______________ is an explicit statement that tells a manager what he or she can or
cannot do.
a.
procedure
b.
policy
c.
rule
d.
solution
(c; moderate; p. 142)

72.
a.
b.
c.
d.

73.
a.
b.
c.
d.

A policy ____________.
typically contains an ambiguous term
is used frequently when a manager faces a well-structured problem
allows little discretion on the part of the manager
offers strict rules as to how a problem should be solved
(a; moderate; p. 142)

Which of the following factors contrasts the difference between a policy and a rule?
a policy establishes parameters
a rule establishes parameters
a policy is more explicit
a rule is more ambiguous
(a; difficult; p. 142)

74. According to the textbook, a ______________ typically contains an ambiguous term that
leaves interpretation up to the decision maker.
a.
system
b.
rule
c.
solution
d.
policy
(d; moderate; p. 142)
75. A business schools statement that it strives for productive relationships with local
organizations is an example of a ________________.
a.
rule
b.
policy
c
procedure
d.
commitment
(b; moderate; p. 142)
76.
a.
b.
c.
d.

77.
a.
b.
c.
d.

Poorly structured problems _____________.


are easily solved
present new or unusual circumstances
force managers to deal with incomplete or ambiguous information
b and c
(d; moderate; p. 143)

Nonprogrammed decisions are best described as ________________.


recurring, but difficult to make
very similar to problems in other areas of the organization
requiring more aggressive action on the decision makers thought processes
unique and nonrecurring
(d; moderate; p. 143)

78. When problems are ______________, managers must rely on ______________ in order
to develop unique solutions.
a.
well structured; nonprogrammed decision making
b.
well structured; pure intuition
c.
poorly structured; nonprogrammed decision making
d.
poorly structured; programmed decision making
(c; moderate; p. 143)

79.
a.
b
c.
d.

Which of the following terms is associated with nonprogrammed decisions?


unique
recurring
routine
repetitive
(a; moderate; p. 143)

80.
a.
b.
c.
d.

Lower-level managers typically confront what type of decision making?


unique
nonroutine
programmed
nonprogrammed
(c; moderate; p. 142)

98.
Linda has spent the day in a session where the future of her company was discussed. The people
involved were trying to determine what the role of their company was as the 21st century approaches. Goals
were then developed based upon their vision of the company's mission. Linda spent her day on the _____
process.
a. planning
b. organizing
c. leading
d. controlling
(a; Easy; p. 8)
99.
The process of monitoring performance, comparing it with goals, and correcting any significant deviations is
known as
a. planning.
b. organizing.
c. leading.
d. controlling.
(d; Moderate; p. 9)
100. Ann is the CEO of a large manufacturing plant. She has spent her day trying to ensure that the light bulbs
coming off the assembly line light 99.4% of the time. She has spent her day performing the management process of
a. planning.
b. organizing.
c. leading.
d. controlling.
(d; Moderate; p. 9)
101. Mintzberg grouped the ten managerial roles into three primary headings. Which of the following is not one of
these headings?
a. interpersonal relationships
b. transfer of information
c. planning
d. decision making

(c; Moderate; p. 9)
102. The importance of managerial roles varies depending on the _____.
a. managers salary
b. managers acceptance by the employees
c. managers level in the organization
d. length of time the manager has worked in the organization
(c; Challenging; p. 11)
103.

Which of the following acts as an unambiguous measure of the effectiveness of a business organization?
a. efficiency
b. employee satisfaction
c. increased revenues
d. profits
(d; Moderate; p. 12)

104. Managers in not-for-profit organizations, as opposed to profit-seeking organizations, do not face a(n) _____
test for performance.
a. profit-maximizing
b. evaluation
c. employee accountability
d. management by objectives
(a; Challenging; p. 12)
105.

According to Mintzberg, which management category includes the roles of figurehead, leader, and liaison?
a. interpersonal
b. informational
c. decisional
d. planning
(a; Easy; p. 11; Ex. 15)
106.

According to Mintzberg, monitor, disseminator, and spokesperson activities are all


a. interpersonal roles.
b. informational roles.
c. decisional roles.
d. planning roles.
(b; Easy; p. 11; Ex. 15)
107. According to Mintzberg, which management role includes entrepreneur, disturbance handler, resource
allocator, and negotiator?
a. interpersonal
b. informational
c. decisional
d. planning
(c; Easy; p. 11; Ex. 15)
108. George is representing his company at the local Chamber of Commerce Annual Business Recognition
luncheon. He is performing which managerial role?
a. negotiation
b. monitor
c. figurehead

d. liaison
(c; Easy; p. 11; Ex. 15)
109. Jose is involved with discussions among employees, management, and the union to which his employees
belong. They are discussing wage issues. Management is interested in keeping the wages at minimum wage. The
employees/union want $.50 plus minimum wage. Jose is performing which managerial role?
a. monitor
b. entrepreneur
c. negotiator
d. organizer
(c; Easy; p. 11; Ex. 15)

110

As managers move up the organization, they do more


a. leading.
b. controlling.
c. direct overseeing.
d. planning.
(d; Moderate; p. 12; Ex. 16)
111. As managers move up the organization, they do less
a. leading
b. controlling
c. planning
d. organizing
(a; Moderate; p. 12; Ex. 16)
112. Which of the following is not a criterion that can be used in determining if a business qualifies as a small
business?
a. profits
b. sales
c. total assets
d. number of employees
(a; Moderate; p. 12)
113.

According to the author, small businesses will account for _____ of new job growth in the next decade.
a. 25%
b. 33%
c. 50%
d. 75%
(c; Challenging; p. 12)
114.

Small businesses account for _____ of all non-farm businesses in the United States.
a. 27%
b. 38%
c. 79%
d. 98%
(d; Moderate; p. 12)
115.

Compared to the manager of a large organization, a small business manager is more likely to be a(n)
a. specialist.
b. figurehead.

c. generalist.
d. information monitor.
(c; Easy; p. 13)

116.

In addition to the percent of time spent in each of the four major management activities, as a manager moves
up the ranks, the _____ of the managerial activities also changes.

a. context
b. synergy
c. content
d. responsibilities
(c; Challenging; p. 11)
117.

Which of the following roles is most important for managers in small firms?
a. disseminator
b. leader
c. spokesperson
d. figurehead
(c; Moderate; p. 13; Ex. 17)
118. Managers in both small and large organizations perform essentially the same activities; only _____ and the
_____ is/are different.
a. how they go about them; company budgets
b. the proportion of time they spend on each; number of employees
c. how they go about them; proportion of time they spend on each
d. length of time they spend on each; professionalism used
(c; Challenging; p. 13)
119.

The universality of management concept typically applies to all except which of the following countries?
a. United States
b. Chile
c. Canada
d. Australia
(b; Moderate; p. 14)
120.

Almost everything managers do requires them to


a. plan.
b. allocate resources.
c. hold meetings.
d. make decisions.
(d; Moderate; p. 14)
121. Katz developed four critical skills that managers must possess. Which of the following is not one of those four
skills?
a. conceptual
b. interpersonal
c. technical
d. connection
(d; Moderate; p. 15)

122.

Which skill centers on a manager's mental ability to coordinate all of the organization's interests and
activities?

a. conceptual
b. interpersonal
c. technical
d. political
(a; Moderate; p. 15)
123. The skill that centers on a manager's ability to work with, understand, and motivate other people is known as
_____ skill.
a. conceptual
b. interpersonal
c. technical
d. political
(b; Moderate; p. 15)
124. The skill that centers on a manager's ability to build a power base and establish the "right" connections is
known as _____ skill.
a. conceptual
b. interpersonal
c. technical
d. political
(d; Moderate; p. 15)
125. Becky has joined an organization that promotes the discussion of current management topics. The majority of
the managers in North Carolina belong to the organization. Which managerial skill is Becky addressing?
a. conceptual
b. interpersonal
c. technical
d. political
(d; Moderate; p. 15)
126. Angelo is well known for his skills in using the advanced programming software of the engineering field. In
fact, it was his specialized knowledge that led to his promotion as manager. Which managerial skill is Angelo
demonstrating?
a. conceptual
b. interpersonal
c. technical
d. political
(c; Easy; p. 15)
127. Nancys strength as a manager lies in her ability to work with people. She is able to work with, motivate, and
lead others easily. Nancy is demonstrating which managerial skill?
a. conceptual
b. interpersonal
c. technical
d. political
(b; Moderate; p. 15)

128.

Research has identified six sets of behaviors that explain more than 50% of a manager's effectiveness. Which
of the following is not one of these six sets of behavior?

a. making human resource decisions


b. organizing and coordinating
c. strategic problem solving
d. motivating employees and handling conflicts
(a; Challenging; pp. 15)
129. Managers with this skill tend to be better at getting resources for their groups and appear to receive higher
evaluation and get more promotions. What is it?
a. organizing and coordinating
b. providing for growth and development
c. political skills
d. motivating employees and handling conflicts
(c; Moderate; p. 15)
130. The most recent approach to defining the manager's job focuses on _____, a cluster of related knowledge,
skills, and attitudes related to effective managerial performance.
a. the management skill set
b. management competencies
c. behavioral traits
d. executive activities
(b; Easy; p. 16)
131.

The management charter initiative (MCI) is based on an analysis of management activities and focuses on
a. what effective managers know, rather than what they should be able to do.
b what skills efficient managers should have.
c. what education is needed by effective managers.
d. what effective managers should be able to do, rather than what they know.
(d; Challenging; p. 16)
132.

The annual income of senior managers at large toy manufacturing firms ranges between
a. $100,000$200,000.
b. $200,000$600,000.
c. $225,000$750,000.
d. $300,000$900,000.
(d; Challenging; p. 17)
133. The average cash compensation in 2001 for 727 of the top executives at the 363 largest publicly
held US corporations was over
a. $100,000.
b. $1,000,000.
c. $2,000,000.
d. $2,800,000.
(c; Challenging; p. 17)

134.

On average, American CEO salaries are more than _____ times as much as the average employee.

a. 100
b. 250
c. 425
d. 500
(d; Challenging; p. 18)
135.

Specific topics of concern to political scientists include structuring of conflict, allocating power, and _____.
a. values
b. responsibilities
c. manipulating power for individual self interest
d. ethics
(c; Moderate; p. 21)
136. _____ courses help managers gain a better understanding of motivation, leadership, trust, employee
selection, performance appraisals, and training techniques.
a. Psychology
b. Sociology
c. Political science
d. Anthropology
(a; Moderate; p. 21)
137. An organization interested in changing demographics that alter customer and employment markets could
benefit from topics taught in a(n) _____ course.
a. psychology
b. sociology
c. economics
d. anthropology
(b; Moderate; p. 21)

Scenario-Based Questions
Application of Mintzberg's Management Roles
Suzanne was amazed. She had just spent the day with the CEO of a major manufacturing firm through a
"Visit with a Manager Program" developed by the college she attends. She was exhausted and wondered how the
CEO managed the hectic pace. Suzanne was amazed by the number of "hats" that the CEO was wearing throughout
the day. The day had started with a general managers meeting where, the latest news concerning the competition
had been announced by the CEO. Then Suzanne and the CEO had spent an hour completing a report to be given the
following day to the board of directors. Lunch, where Suzanne had hoped to have time to ask questions, was an
informal meeting with a group of suppliers who were concerned about their increasing costs. As soon as they had
returned to the office, the CEO received a message of a fire in one of the major warehouses. They were immediately
off to the location to assess the damage. Then that evening, there was a formal dinner sponsored by the local
Chamber of Commerce, which the CEO had invited Suzanne to attend. Suzanne had declined, because she was
exhausted.
138. The General Managers meeting was most likely a result of the following management function:
a. Organizing
b. Planning
c. Decision-Making
d. Controlling
(b; Moderate; p. 13)

139. Jack Jones was a middle manager who managed the facility where the fire occurred. He took responsibility for
making sure that the fire was extinguished and communicating to the local community and others outside of the
company. When he completed these activities, what roles was Jack performing?
a. Disseminator and leader
b. Leader and spokesperson
c. Spokesperson and disturbance handler
d. Disturbance handler and disseminator
(c, Challenging; p. 11, Ex. 1-5)
140. When Gina Wright, Head of Plant Safety brought employees together to discuss the fire safety procedures at
the plant after the fire, she was performing the following role:
a. Leader
b. Disturbance handler
c. Disseminator
d. Spokesperson
(c; Moderate; p. 11, Ex. 1-5)
141. At the General Managers Meeting, the budget for new fire alarms sensors were approved along with a
program for training all employees in first aid, what role(s) were the General Managers performing at the meeting?
a. Disturbance handler and leader
b. Resource allocator and negotiator
c. Disturbance handler and resource allocator
d. Leader and resource allocator
(d; Moderate; p. 11, Ex. 1-5)
142. When the General Managers meet annually to approve the business unit strategies and new acquisitions,
they are performing the ________________role.
a. disturbance handler
b. planner
c. leader
d. entrepreneur
(d; Moderate; p. 11, Ex. 1-512)
143.

When the CEO was speaking at the manager's meeting, which of the following roles was being performed?
a. figurehead
b. entrepreneur
c. resource allocator
d. disseminator
(d; Moderate; p. 11; Ex. 15)
144.

The CEO's role at lunch was an example of which of the following roles?
a. monitor
b. negotiator
c. resource allocator
d. disseminator
(b; Moderate; p. 11; Ex. 15)
145.

When the CEO attended the supper held by the Chamber of Commerce, which role was the CEO displaying?
a. monitor
b. negotiator
c. figurehead

d. spokesperson
(c; Easy; p. 11; Ex. 15)

Application of Mintzberg's Roles to Size of Organization


John is the CEO of a large manufacturing firm that produces construction equipment. George is the owner
and operator of a small business that produces one of the key engine components for John's manufacturing firm.
Both are managers; however, George has noticed some differences between his activities and the activities John
performs. George spends much of his time in outwardly directed activities such as meeting with customers and
potential investors. John seems to spend more of his time on activities that are directed internally, such as allocating
resources to appropriate departments. George wonders what accounts for this difference, and he goes to a
management consultant for input.
146. The consultant tells George that the major difference between managers of large organizations and small
business owners is which of the following?
a. The roles that are played by the managers are different.
b. The manager of a large organization is more likely to be a generalist.
c. The proportion of time spent on each function is different.
d. There is no difference between manager roles.
(c; Challenging; p. 13)
147. The consultant informs George that the most important role of a small business manager is which of the
following?
a. monitor
b. disseminator
c. spokesperson
d. negotiator
(c; Moderate; p. 13; Ex. 17)
148.

The least important role of the manager of a large organization is which of the following?
a. monitor
b. disseminator
c. spokesperson
d. negotiator
(b; Moderate; p. 13; Ex. 17)
149.

The most important role played by John will be which of the following?
a. resource allocator
b. entrepreneur
c. spokesperson
d. negotiator
(a; Moderate; p. 13; Ex. 17)

Application of Management Skills


Shawna had spent the day "tagging" her uncle. He is the CEO of a large firm that manufactures cereal and
related products. Shawna was a management major at a local college, and one of her class assignments was to
interview a business manager. When she approached her uncle about the assignment, he told her that he felt she
would get a better feel for management if she would "shadow" him for a day. So, over fall break, she had spent the
day with him. He had spent his day dealing with a variety of issues. The first agenda item for the day had been a
meeting with the division manager who was having difficulties meeting his target amount due to his inability to
motivate his employees. Then it had been off to the assembly line floor to inspect a new procedure for filling cereal

boxes. Lunch had been with a group of local CEOs where everything from the new hiring laws to the latest economic
reports had been discussed. After lunch, Shawna had sat in on a meeting where the five-year strategic plan for the
company was being evaluated. All in all, it had been a day full of information Shawna could use for her class
assignment.
150.
of

The meeting with the division manager concerning his inability to motivate his employees is a demonstration

a. political skills.
b. interpersonal skills.
c. technical skills.
d. conceptual skills.
(b; Moderate; p. 15)
151.

Inspecting the new procedure for filling cereal boxes is an example of which of the following competencies?
a. political skills
b. interpersonal skills
c. technical skills
d. conceptual skills
(c; Challenging; p. 15)
152.

The five-year meeting for setting a strategic plan was an example of _____.
a. political skills
b. interpersonal skills
c. technical skills
d. conceptual skills
(d; Moderate; p. 15)

153.

The five-year meeting for setting a strategic plan requires management to have specific skills in all of the
following areas except which of the following?

a. handling information
b. organizing and coordinating
c. controlling the organizations environment and its resources
d. technical skills
(d; Challenging; p. 15)

Short Discussion Questions


154.

Describe the Mintzbergs Figurehead and Spokesperson roles. Are they related?

Figurehead is a symbolic role in which the manager is the legal or social representative of the company. The
spokesperson transmits information to outsiders about events are actions taken by the company or serves as an
expert in communicating with the press or media. These roles are related in that the same person often performs the
Figurehead and Spokesperson roles, when the company is addressing issues important that are raised by the
community or the media.
(Challenging; p. 11, Ex 1-5)
155.

Describe the difference between managers and operative employees.

Operatives work directly on a job or task and have no responsibility for overseeing the work of others. Managers
direct the activities of others.
(Easy; p. 5)
156.

Compare and contrast the three levels of management.

First-line managers are usually called supervisors, are responsible for day-to-day activities, and work with the
operatives. Middle managers are usually called department or agency heads or project leaders, manage other
managers, and are responsible for translating the goals set by top management into specific details that lower
managers can perform. Top managers, typically called presidents, CEOs, or managing directors, are responsible for
making decisions about the direction of the organization and establishing policies that affect all organizational
members.
(Moderate; p. 6)
157.

What is the difference between efficiency and effectiveness?

Efficiencydoing the thing correctly; accomplishing the goal with the least amount of resources.
Effectivenessdoing the right task; goal attainment.
(Easy; p. 7)
158.

Briefly describe the four management processes.

Planningdefining goals, establishing strategy, and developing plans to coordinate activities.


Organizingincludes determining what tasks are to be done, who is to do them, how the tasks are to be grouped,
and who reports to whom.
Leadingincludes motivating employees, directing the activities of others, selecting the most effective
communication channels, and resolving conflicts.
Controllingthe process of monitoring performance, comparing it with goals, and correcting any significant
deviations.(Moderate; pp. 8-9)
159. What is the major difference between profit-making and not-for-profit organizations?

The most important difference the way that organizational effectiveness is measured. In not-for profit organizations,
they cannot use the Bottom-Line or profits as an unambiguous measure of performance. There is no such universal
measure in non-profit organizations.
(Moderate; p. 12)
160.

What factors influence the how managers are paid?

Several factors impact management compensation. Companies base their decisions on the managers skills and
experience and what other companies are paying in the marketplace. However, level in the organization, education,
type of business, comparable pay standards in the community and the managers effectiveness also determine how
much managers are paid.
(Moderate; p. 17)

Medium Length Discussion Questions


161.

Describe three levels of management and explain the major responsibilities at each level.

The managers at the three levels of management are top managers, middle managers and first-line managers or
supervisors;
Supervisors are responsible for directing the day-to day activities of operative employees.
Middle Managers are typically responsible for managing supervisors and operative employees and for translating the
goals set by top management into specific details and objectives that lower-level managers can perform.
Top Managers are responsible for making decisions about the direction of the organization and establishing policies
that affect all organizational members.
(Easy; pp. 5-6)
162.

Compare and contrast Mintzberg's managerial roles.

Interpersonalroles consist of being the figurehead for the organization, assuming the leadership role, and acting as
a liaison for the organization.
Informationalroles consist of being a monitor of current information which is then dispersed to employees needing
that information; also involves being the spokesperson for the organization.
Decisionalroles consist of being an entrepreneur for the organization, handling disturbances, allocating resources,
and negotiating.
(Easy; p. 11; Ex. 15)
163.

Discuss the relative importance of the managerial roles in small and large businesses.

Small businessesspokesperson is important; entrepreneur, figurehead, and leader are of moderate importance;
and disseminator is low.
Large firmsresource allocator is important; liaison, monitor, disturbance handler, and negotiator are of moderate
importance; and entrepreneur is low.
(Moderate; p. 13; Ex. 17)

164.

Briefly describe the four skills that successful managers must possess.

Conceptual skillsthe ability to coordinate all of the organization's interests and activities.
Interpersonal skillsthe ability to work with, understand, and motivate people.
Technical skillsthe ability to use the tools, procedures, and techniques of a specialized field.
Political skillsthe ability to enhance one's own power, build a power base, and establish the right connections.
(Moderate; p. 15)
165.

Explain the first three basic competencies found in the Management Charter Initiative Competencies.

The first competency is to initiate and implement change and improvement in services, products, and systems. This is
done by identifying opportunities for improvement in services, products, and systems, as well as negotiating and
agreeing on the introduction of change. The second is to monitor, maintain, and improve service and product delivery.
This can be attained by establishing and maintaining the supply of resources into the organization/department and by
establishing and agreeing on customer requirements. Number three competency is to monitor and control the use of
resources. An example is to control costs and enhance value. Also, managers must monitor and control activities
against budgets.
(Challenging; p. 17; Ex. 18)

Comprehensive Essays Questions


166. Based on the research findings presented in the text, how do managers at different levels in the organization
(Top, Middle and First-Line Managers) differ in terms of the amount of time they spend on different management
functions and activities; what are the greatest differences between each level. Can you give an example of this in an
organization that you have read about?
All levels spend about the same amount of time on controlling. Top managers spend most time planning; Middle
managers First-line managers spend more time leading than top managers. Top and middle managers spend more
time on organizing than first-line managers.
EXAMPLE Page 9 Ronald A. Williams, President of Aetna spends time planning how his organization can be a
positive force in the community.
(Easy; pp. 4-5, 9)
167. Research has identified six sets of behavior that explain a bit more than 50% of a manager's effectiveness.
What are these six behaviors?
Controlling the organization's environment and its resources.
Organizing and coordinating.
Handling information.
Providing for growth and development.
Motivating employees and handling conflicts.
Strategic problem solving.
(Easy; p. 15)

True/False
1.

There are many models that describe the behavior and roles of successful managers but no one model can
be applied to all types of managers and situations.

(True; Moderate; p. 5)

2.

To be effective, an organization must have clearly defined sets of goals and objectives.

(False; Difficult; p. 4)

3.

First-line supervisors are responsible for directing the day-to-day activities of operative employees.

(True; Easy; p. 6)

4.

Middle managers set goals and objectives and make decisions about the direction of the organization that
affect everyone in the organization.

(False; Moderate; p. 6)

5.

Operatives are managers who supervise the work of other people in the organization.

(False; Moderate; p. 5)

6.

Effective management is using staff, time and resources wisely to minimize unnecessary cost to the
organization.

(False; Moderate; p. 7)

7.

Managers can be classified in terms of either their level in the organization at which they work and or their
area of specialization.

(False; Moderate; p. 5)

8.

Defining goals and setting objectives is part of the organizing function of management.

(False; Moderate; p. 6)

9.

The four processes of management consist of controlling, leading, planning and outsourcing

(False; Easy; p. 8)

10.

Monitoring budgets, costs, performance and improvement are part of the management process known as
controlling

(True; Moderate; p. 9)

11.

Organizations that are more efficient are effective

(False; Moderate; p. 7)

12.

Mintzberg found that mangers carefully processed information before deciding what actions to take.

(False; Challenging; p. 10)

13.
Mintzberg concluded that managers perform 10 interrelated activities that relate to decision making, using
information and interpersonal relationships.
(True; Easy; p. 10)
14.
Since you cannot measure the bottom-line in non-profit organizations, managers do not need to focus on
the financial aspects of their operations.
(False; Difficult, p. 12)
15.
Middle managers spend more time on leading than on any of the other management function.
(True; Moderate; p. 12, Ex.1-6)
16.
Intellectual skills are most critical for successful management.
(False; Easy; p. 15)
17
An understanding of interpersonal relationships that can be gained from studying the humanities and social
sciences play an important role in influencing management skills and practices.
(True; Moderate; p. 20)
18.
There is a universally accepted model of a successful manager.
(False; Easy; p. 4)
19.
A systematic arrangement of people brought together to accomplish some specific purpose is an organization.
(True; Easy; p. 4)
20.
All organizations develop a systematic structure that defines and limits the behavior of their members.
(True; Moderate; p. 4)
21.
The primary distinction between operatives and managers is that operatives have employees who report
directly to them.
(False; Moderate; p. 5)
22.
Operatives direct the activities of other people in the organization.
(False; Moderate; p. 5)
23.
Middle managers may have titles such as department head, project leader, unit chief, or district manager.
(True; Moderate; p. 6)
24.
Effectiveness means doing the task right and refers to the relationship between inputs and outputs.
(False; Challenging; p. 7)
25.
It's easier to be effective if one ignores efficiency.
(True; Moderate; p. 7)

26.
An organization can be efficient and yet not effective.
(True; Moderate; p. 7)
27.
The four processes of management are completely independent and should be treated as separate activities.
(False; Easy; p. 8)

28.
The organizing component encompasses defining an organization's goals, establishing overall strategy, and
developing plans to integrate and coordinate activities.
(False; Moderate; p. 9)
29.
The leading component of management includes directing and coordinating people.
(True; Easy; p. 9)
30.
Comparing actual performance with previously set goals is part of controlling.
(True; Easy; p. 9)
31.
Mintzberg found that managers were reflective thinkers who carefully and systematically processed
information before making decisions.
(False; Challenging; p. 10)
32.
A manager's job differs in profit and not-for-profit organizations.
(False; Easy; p. 12)
33.
Profit acts as an unambiguous measure of the effectiveness of a business organization.
(True; Moderate; p. 12)
34.
The Associate Dean is responsible for preparing the schedule of classes for next semester. She schedules
each faculty member's classes at appropriate times as part of her role as "negotiator."
(False; Moderate; p. 11; Ex. 15)
35.
Top managers spend a larger percentage of their time organizing compared to first-level and middle
managers.
(True; Moderate; p. 12; Ex. 16)
36.
Small businesses employ over 75% of the private workforce.
(False; Challenging; p. 12)
37.
While there may be differences in degree and emphasis of functions, the same management functions apply
to owners of small businesses as to the CEO of major corporations.
(True; Challenging; p. 13)
38.
Studies that have compared managerial practices between countries have generally supported the
universality of management concepts.
(False; Moderate; p. 14)
39.
To see how things fit together and facilitate making good decision, managers use conceptual skills to analyze
and diagnose complex situations.
(False; Moderate; p. 15)
40.
Operatives tend to be more highly paid than managers; therefore, many organizations willingly offer extremely
lucrative compensation packages to get and keep good operatives.
(False; Easy; p. 16)
41.
One reason for studying management is that we all have a vested interest in improving our own chances of
finding a quality and secure job.
(False; Moderate; p. 18)
42.
The big picture of management is often lost when management concepts are studied under different
professors.

(False; Moderate; p. 20)


43.
Anthropology helps managers better understand differences in fundamental values, attitudes, and behavior.
(True; Moderate; p. 20)
44.
Philosophy can help us understand the concepts of conflict and power.
(False; Moderate; p. 20)
45.
It is important to study government because management is affected by a nations form of government.
(True; Easy; p. 21)
46.
Psychology courses are relevant to managers in terms of understanding motivation, leadership, and trust.
(True; Easy; p. 21)
Multiple Choice Questions
47.
Katz and found that all of the following are critical management skills EXCEPT _____.
a. Technical/functional
b. Interpersonal
c. Intellectual
d. Political
(c; Easy; p. 15)
48.
When we classify managers according by their level in the organization they are described as _______.
a. functional, staff and line managers
b. top managers, middle managers and supervisors
c. high level and lower level managers
d. general managers and administrative managers
(b; Easy; p. 6)

49.
Which of the following is NOT one of the values of studying management described in chapter 1?
a. Recognizes the important role that management and managers play in society
b. Provides essential knowledge to be effective in managerial positions
c. Gives you insight into your personality and behavior
d. Gives insight into the way that organizations work
(c; Moderate; p. 18)
50.

All of the following are primary management functions except _______.


a. setting goals
b. hiring employees
c. monitoring activities
d. motivating employees
(b; Moderate; pp. 5-6)

51.
Many business school professors make use of the case method of teaching in which students are asked to
solve various types of business problems. Which managerial skills are most likely to be developed using this teaching
method?
a. Diagnostic and intellectual
b. Conceptual and interpersonal.
c. Diagnostic and analytical
d. Technical and Interpersonal
(c; Moderate; p. 15)
52.

Conceptual skills relate to a managers ability to


a take a strategic view of how the part of the organization function.
b. solve detailed problems in groups.
c. correctly evaluate organizational problems.
d. understand and interact effectively with others in the organization.
(a; Moderate; p. 15)
53.
The ability to build networks and power bases that increase ones power in the organization is referred to as
_____.
a. influence skill
b. political skill
c. controlling
d. strategic skill
(b; Challenging; p. 15)
54.

A manager is someone who


a. actually performs the service or produces the product.
b. works anonymously behind the scenes.
c. sets the goals of the organization.
d. who supervises the work of others.
(d; Moderate; p. 5)

55.

Which of the following skills are most important for top managers (CEOs)?
a. Interpersonal
b. Technical
c. Functional
d. Conceptual
(d; Moderate; p. 15)
56.
A manager who has a reputation for being open and honest and understands how to motivate employees and
customers is said to have good ________ skills.
a. sales
b. political
c. Interpersonal
d. technical
(c; Challenging; p. 15)

57.
Joe Gleason is the supervisor of the machine shop, where he has the most experience of any employee using
the tool and die making equipment; he shows his people how to complete tasks using the most practical and efficient
methods. Joe demonstrates a high level of ___________ skills.
a. technical
b. supervisory
c. decision-making
d. Both a and b.
(d; Moderate; p. 15)
58.
Josh is a middle manager in the engineering department at a power plant. Which of the following competency
is LEAST important in his position?
a. Monitor, maintain and improve service
b. Recruit and select qualified people
c. Exchange information to solve problems and make decisions
d. Supervise the day-to-day work and tasks of each of his subordinates
(d; Easy; p. 6)
59. Which of the following statements about middle managers is not true?
a. Middle managers coordinate the work of supervisors.
b. Middle managers implement the objectives and plans of top management.
c. The number of middle managers in the most organizations is increasing.
d. Operatives can report directly to middle managers.
(c; Moderate; p. 6)
60.
Annies Pies produces cakes and pies that come in 207 different flavors that are shipped across the USA.
Each week, 3 or 4 new flavors are added. Annies produces high quality cakes and pies using the best ingredients, it
wastes little, and few employees work overtime because the business operates
a. effectively.
b. reliably.
c. efficiently.
d. flexibly.
(c; Easy; p. 7)

61.

Doing a job in a way that achieves results without wasting any resources is referred to as being ______.
a. effective.
b. efficient
c. conservative
d. Both a and b.
(d; Moderate; p. 7)
62.
_____ are responsible for carrying out the decisions and objectives that are developed by middle level
managers.
a. Operatives
b. First-line supervisors
c. Both a and b.
d. Functional managers
(c; Easy; p. 5)
63.
__________ is not an example of a title of a middle manager.
a. First-line
b. District manager

c. Dean
d. Division manager
(a; Easy; p. 6)
64.
John Challenger is the plant manager for Edison Fuse Company in Greenville, North Carolina. Based on his
job title he is most likely a ____________.
a. top manager
b. middle manager
c. supervisor
d. first-line supervisor
(b; Moderate; p. 6)
65.

The greatest number and concentration of managers in most organizations can be found
at the _____ level.
a. top manager
b. middle manager
c. district manager
d. first-line supervisor
(d; Moderate; p. 6)
66.
Jennifer assigns George a project to be completed by the end of the month and then holds periodic meetings
with him to review his progress. Which of the management functions is Jennifer performing?
a. planning
b. leading
c. controlling
d. organizing
(c; Moderate; p. 9)

67.
Gabe Adams is a production supervisor for Waste Management Corp.; in his job, he makes the right decisions
and is able to implement them. We refer to Gabe as a(n)_________ manager.
a. effective
b. efficient
c. resource maximizing
d. competent
(a; Moderate; p. 7)
68.
When the CEO of a large retail store chain decided to sell off or close some of the locations that were not
profitable, he was performing the management function referred to as _________.
a. leading
b. planning
c. controlling
d. organizing
(b; Easy; p. 8)
69.
When the VP for Marketing from Wal Mart establishes a good relationship with the Executive Director of the
Senior Citizens Center, he helps create a positive image among the senior citizens who are protesting high prices at
the local store. He is performing the ______________role.
a. leader
b. figurehead

c. negotiator
d. spokesperson
(b; Challenging; p. 11; Ex. 1-5)
70.

Which of the following is not a managerial role identified in Mintzbergs Model?


a. Informational
b. Interpersonal
c. Functional
d. Decisional
(c; Moderate; p. 11; Ex. 1-5)
71.

Which of the following roles is categorized as a decisional role?


a. Monitor
b. Disseminator
c. Resource allocator
d. Leader
(c; Moderate; p. 11; Ex. 1-5)
72.
Martin is the physician who heads the Critical Care Unit at Mercy Hospital, the most important roles that he
performs probably __________ roles.
a. monitor
b. decisional
c. figurehead
d. disseminator
(b; Easy; p. 11; Ex. 1-5)

73.
Martin is the Branch manager at Montana Mutual Saving Bank. If he is your average middle manager, which
of the four management activities is he likely to spend the greatest amount of time?
a. Planning
b. Controlling
c. Leading
d. Negotiating
(c; Easy; p. 9)
74.
Jerry Bickford is the CFO at Montana Mutual Saving Bank. According to research studies, which management
activities are likely to take up the greatest amount of time?
a. Planning
b. Organizing
c. Controlling
d. Leading
(b; Moderate; p. 9)
75.
A universally accepted model of what a successful manager looks like would be described as _____.
a. one who practices the four universal processes or functions
b. one who executes all of the roles in a professional manner
c. one who possesses all management skills at high levels
d. there is no universally accepted model of a successful manager
(d; Easy; p. 4)
76.

An organization must contain all except which of the following characteristics?


a. purpose

b. people
c. structure
d. product
(d; Moderate; p. 4)
77.

The distinct purpose of an organization is typically expressed in terms of


a. a systematic structure.
b. a goal or set of goals.
c. management competencies.
d. its vision statement.
(b; Moderate; p. 5)
78.
Developing an organizations structure may include creating rules and regulations, giving some members
supervisory control over other members, or _____.
a. forming work teams
b. writing job descriptions
c. creating viable pay and benefits
d. Both a and b.
(d; Challenging; p. 5)

79.

Operatives can best be described as


a. those who actually perform the service or produce the product.
b. those who work anonymously behind the scenes.
c. those who set the goals of the organization.
d. those who supervise others.
(a; Moderate; p. 5)
80.

Which of the following is not true about operatives?


a. They have no responsibility for overseeing the work of others.
b. They work directly on a job or task.
c. They have no more than four employees who report directly to them.
d. A person on an assembly line could be described as an operative.
(c; Challenging; p. 5)
81.

Managers primarily perform which of the following tasks?


a. selling
b. stocking merchandise
c. directing the activities of other people
d. ordering merchandise
(c; Moderate; p. 5)
82.

At Augusta College, the Department Head who oversees activities of the faculty is a(n)
a. first-line manager.
b. middle manager.
c. top manager.
d. operative.
(a; Moderate; p. 5)

83.

The managers who work most closely with the operatives are known as
a. top management.
b. middle management.
c. first-line managers.
d. operative managers.
(c; Easy; p. 5)
84.
The level of management that translates the goals of the organization into specific plans that lower-level
managers can perform is known as
a. top management.
b. middle management.
c. first-line managers.
d. operative managers.
(b; Moderate; p. 6)
85.
_____ are responsible for making decisions about the direction of the organization and establishing policies
that affect all organizational members.
a. Operatives
b. Top managers
c. Middle managers
d. First-line supervisors
(b; Easy; p. 6)
86.

Performing the task right and considering the relationship between inputs and outputs is
a. effectiveness.
b. goal attainment.
c. efficiency.
d. a management characteristic.
(c; Moderate; p. 7)
87.

If you get more output for a given input, you have


a. decreased effectiveness.
b. increased effectiveness.
c. decreased efficiency.
d. increased efficiency.
(d; Moderate; p. 7)
88.

In an organization, _____ translate(s) into goal attainment.


a. effectiveness
b. efficiency
c. resource minimization
d. managerial functions
(a; Moderate; p. 7)
89.
If a college cuts the cost of an education by using mostly part-time faculty and at the same time fails to
adequately educate its students, it can be said to be doing the wrong things well. In other words, the college is
a. efficient and effective.
b. efficient but not effective.
c. effective but not efficient.
d. neither efficient nor effective.
(b; Challenging; p. 7)

90.
The goal of Dempsey's Dumpsters is to provide trash services to the city of Apex, whose motto is "The peak
of good living." The customers are satisfied with the level of service, but costs at Dempsey's Dumpsters are double
that of their competition. Dempsey's is
a. efficient and effective.
b. efficient but not effective.
c. effective but not efficient.
d. neither efficient nor effective.
(c; Challenging; p. 7)
91.
Tim's Tire Shop is concerned only with using the least amount of labor possible as it repairs/replaces the tires
of its customers. Its primary goal is
a. effectiveness.
b. goal attainment.
c. efficiency.
d. management characteristics.
(c; Moderate; p. 7)

92.

All of the following are included in the four components of the management process except
a. planning.
b. organizing.
c. leading.
d. delegating.
(d; Easy; p. 8)
93.
In the early part of the 20th century, a French industrialist by the name of _____ wrote that managers perform
five functions, referred to as the management process.
a. Henri Fayol
b. Henry Mintzberg
c. Max Weber
d. Douglas McGregor
(a; Moderate; p.8)
94.
Defining goals, establishing an overall strategy, and developing a comprehensive hierarchy of plans is known
as which of the following processes of management?
a. planning
b. leading
c. organizing
d. controlling
(a; Moderate; p. 8)
95.
Determining the tasks to be accomplished, how the tasks are to be grouped, and who is responsible for the
various tasks is known as which of the following processes of management?
a. planning
b. organizing
c. leading
d. controlling
(b; Moderate; p. 9)

96.
When managers motivate employees, direct the activities of others, select the most effective communication
channel, and resolve conflicts, they are performing which of the following processes of management?
a. controlling
b. organizing
c. leading
d. planning
(c; Moderate; p. 9)
97.
John is the CEO of a major hospital. He has spent his day planning the schedules of employees for the next
month. He had to ensure that there was a registered nurse on every shift. He spent his day
a. planning.
b. organizing.
c. leading.
d. controlling.
(b; Easy; p. 9)

Answers at the end of page


5.

6.

Which of the following isgenerally not true about amanager?


a.

He or she can punish orreward others.

b.

He or she has legitimatepower.

c.

He or she should ideallybe a leader.

d.

His or her influence isbased on formal authority orposition.

e.

He or she emerges froma group.

______ isolate characteristics


that differentiate leaders from nonleaders.
a.

Trait theories

b.

Behavioural theories

c.

Contingency theories

d.

Transactional theories

e.

Situational theories

7.

8.

Which of the following traits isnot among those thatdifferentiate leaders fromnonleaders?
a.

job-relevant knowledge

b.

self-confidence

c.

enthusiasm

d.

intelligence

e.

honesty and integrity

The ______ style of leadership


behaviour can be further

classified in two ways: consultative and participative.

9.

a.

autocratic

b.

delegative

c.

democratic

d.

laissez-faire

e.

free-reign

A leader who tends to centralizeauthority, dictate work methods,and make unilateral decisions
isa(n) _____ leader.
a.

democratic

b.

laissez-faire

c.

autocratic

d.

democratic-consultative

e.

free-reign

10.

A leader who involves employeesin decision making, delegatesauthority, and gathers inputfrom employees, but
makes thefinal decision herself is using the style of leadership.

11.

a.

democratic-participative

b.

laissez-faire

c.

autocratic

d.

democratic-consultative

e.

democratic-delegative

A leader who involves employeesin decision making, delegatesauthority, and allows theemployees to have
direct inputinto the final decision, with theleader serving as only one inputfrom the group is using
the

12.

style of leadership.
a.

democratic-participative

b.

laissez-faire

c.

autocratic

d.

democratic-consultative

e.

democratic-delegative

A leader who allows hisemployees complete freedom tomake decisions and to completework in whatever way
they thinkis best is using which leadershipstyle?

13.

a.

democratic-participative

b.

laissez-faire

c.

autocratic

d.

democratic-consultative

e.

democratic-delegative

According to Tannenbaum andSchmidt, in the long run, whichleadership style should managersmove toward?

14.

a.

autocratic

b.

laissez-faire

c.

democratic-participative

d.

democratic-consultative

e.

boss-centred

Jake always consults with hisemployees and uses theirsuggestions before making adecision. He is
demonstratingwhich type of leadership style,according to House?

15.

16.

a.

directive

b.

achievement-oriented

c.

participative

d.

supportive

e.

cooperative

Women tend to use a more style of leadership.


a.

autocratic

b.

laissez-faire

c.

democratic

d.

directive

e.

transactional

Men tend to use a more _______


leadership style.
a.

employee-centred

17.

b.

task-centred

c.

organization-centred

d.

customer-centred

e.

management-centred

The most critical dimension indetermining another'strustworthiness is:


a.

integrity.

b.

loyalty.

c.

competence.

d.

consistency.

e.

openness.

18. ______ is a positive expectation


that another will not act opportunistically.

19.

a.

Integrity

b.

Followership

c.

Trust

d.

Loyalty

e.

Openness

The ______ dimension of trust


refers to the willingness to

protect and save face for others.

20.

a.

integrity

b.

competence

c.

openness

d.

loyalty

e.

consistency

As the new manager explainedthe recent sales trend, othersbegan to wonder if he reallyknew what he was
talking about.Their doubt relates to the

21.

22.

23.

a.

integrity

b.

competence

c.

openness

d.

loyalty

e.

consistency

dimension of trust.

Not all leaders are managers, norare all managers leaders.


a.

True

b.

False

Managers are people who areable to influence others and whopossess managerial authority.
a.

True

b.

False

Charisma and enthusiasm aretraits that have been found toconsistently differentiateleaders from nonleaders.
a.

True

b.

24.

25.

26.

27.

False

Lewin explored three leadershipbehavioursautocratic,democratic, and laissez-faire.


a.

True

b.

False

An autocratic leader would allowemployees to participate indecision making.


a.

True

b.

False

A democratic-participativeleader gathers information fromemployees but makes the finaldecision alone.


a.

True

b.

False

Tannenbaum and Schmidtsuggested that in the long run,managers should move toward anemployee-centred
leadershipstyle.

28.

a.

True

b.

False

Susan tells employees exactlywhat is expected of them,schedules work to be done, andgives specific guidance
on howthe tasks should be completed.She is a supportive leader.

29.

a.

True

b.

False

Team leaders' responsibilitiesinclude coaching, facilitating,


handling disciplinary problems, reviewing team/individual performance, training, and communication.
a.

True

b.
30.

False

Men tend to use a moredemocratic leadership style thanwomen.

31.

a.

True

b.

False

Leadership may not always beimportant in an organization.


a.

True

b.

False

32. Trust implies familiarity and risk.


a.

True

b.

False

Answers:
5.

6.

7.

8.

9.

10.

11. a
12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

True

22.

False

23.

False

24.

True

25.

False

26.

False

27.

True

28.

False

29.

True

30.

False

31.
32.

True
True

valuable strategies that are being implemented by competing organization is called:


Select correct option:
Competitive disadvantage
Distinctive competencies
Competitive edge
Competitive parity

Which of the following is NOT an important leadership role for team leaders?
Select correct option:
Liaison with external constituencies
Liaison with internal constituencies
Troubleshooter
Conflict manager
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Which of the following is NOT an important leadership role for team leaders?
Select correct option:
Liaison with external constituencies
Liaison with internal constituencies
Troubleshooter
Conflict manager

Selecting an alternative in the decision-making process is accomplished by:


Select correct option:
Choosing the alternative with the highest score
Choosing the One You Like Best
Selecting the alternative that has the lowest price
Selecting the alternative that is the most reliable
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Reference:
Page # 43
involves selecting an alternative. The act of selecting the best alternative from among those identified
and assessed is critical. If criteria weights have been used, the decision maker simply selects the
alternative with the highest score

A plan developed to carry out a course of action that is not likely to be repeated in the future is called:
Select correct option:

Single-use plan
Specific plan
Reaction plan
Direction plan

Concern for employee motivation is most closely associated with which of the following management approach?
Select correct option:
Bureaucracy
Organizational behavior (NOT SURE)
Scientific management
Systems
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(PARISHY AZIZ)
Interest rates, inflation rates, and stock market indexes are all examples of which of the factor of an organizations
general environment?
Select correct option:
Economic
Political
Social
Technological

Which factor has been the most rapidly changing component in an organizations general environment in the past
quarter-century?
Select correct option:
Global
Economic
Social
Technological

The process of monitoring performance, comparing it with goals and correcting any significant deviations is known as:
Select correct option:
Planning
Organizing
Leading
Controlling

When Usman decides to deploy employees to another department that is lagging behind in production, he is acting in
which of the following roles?

Select correct option:


Spokesperson
Negotiator
Leader
Resource allocator

The greater the risk involves in making a decision, the greater the:
Select correct option:
Outcomes
Information available
Rewards
Uncertainty

Each subordinate should report to one and only one superior is called:
Select correct option:
Authority
Unity of command
Unity of direction
Order

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Which of the following is part of the 14 principles of management identified by Henri Fayol?
Select correct option:
Scalar chain
Innovation
Efficiency
Motivation

A learning organization has developed its________.


Select correct option:
Educational department to keep employees trained
Capacity to adapt and change
Barriers to entry of its markets
A sustainable competitive advantage that is easy to maintain

Which of the following is not a suggestion for motivating employees?


Select correct option:

Recognize individual differences


Makes goals very difficult to achieve
Match people to jobs
Individualize rewards

In Maslow's need hierarchy, a healthy work environment is an example of what type of need?
Select correct option:
Physiological
Esteem
Safety
Social

The plans which deal with fairly small set of activities are called:
Select correct option:
Strategic plan
Tactical plan
Operational plan
Personal plan

Which of the following is known as the process of getting activities completed efficiently and effectively with and
through other people?
Select correct option:
Leading
Management
Supervision
Controlling

Which of the following describe(s) a global marketplace?


Select correct option:
The entire world is a marketplace
National borders are irrelevant
The potential for organizations to grow expands dramatically
All of the given options

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The assignment of new or additional responsibilities to a subordinate is called:
Select correct option:
Coordination
Specialization

Delegation
Span of control

(IRFAN SHAHZAD)
Which of the following management thinker created a role classification system based on how managers spend their
time at work to describe a manager's role?
Select correct option:
Peter Brabeck-Letmathe
Abraham Maslow
Andrea Jung
Henry Mintzberg

Which expectancy theory linkage explains the degree to which a student desires a good job?
Select correct option:
Expectancy
Effort to performance
Input to outcome
Valence

The assignment of new or additional responsibilities to a subordinate is called:


Select correct option:
Coordination
Specialization
Delegation
Span of control

Which ethical approach is guided by what will result in the greatest good for the greatest number of people?
Select correct option:
Moral-Rights approach
Individual approach
Utilitarian approach
Justice approach

Low level management has a complete authority to make decisions in case of:
Select correct option:
Centralization
Decentralization
Scalar Chain
Order

Which one of the following individuals is most closely associated with scientific management?
Select correct option:
Frederick Taylor
Mary Parker Follett
Harold Koontz
Max Weber

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Each subordinate should report to one and only one superior is called:
Select correct option:
Authority
Unity of command
Unity of direction
Order

There are many healthcare products manufacturers. XYZ Company manufactures only personal hygiene products. It
markets such products deodorant, body powder, body creams, and exfoliates. Because it only stocks body care and
personal hygiene products, it is using ___ strategy.
Select correct option:
Prospecting
Emergent
Focus
Cost leadership

When managers give goals to employees, they must always:


Select correct option:
Use employee-recognition as a reward
Provide feedback to the employees
Let the employees participate in setting the goals
All of the given options

The organization that has developed the capacity to continuously learn, adapt, and change is called:
Select correct option:
Virtual organization
Learning organization
Traditional organization
Bureaucratic organization

Your firms attorney has which of the following power when giving legal advice?
Select correct option:
Legitimate
Status
Expert
Coercive

Which of the following is a function of how much decision-making authority is pushed down to lower levels in the
organization?
Select correct option:
Departmentalization
Centralization
Span of control
Power

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Organizations that are highly flexible and adaptive are described as which of the following?
Select correct option:
Organic
Mechanistic
Rational (NOT SURE)
Intuitive

A human resource manager attending a local Society for Human Resource Management meeting would be
functioning in which of the following role?
Select correct option:
Informational
Leader
Liaison
Disseminator

Which type of environment is best suited for mechanistic organizations?


Select correct option:
Dynamic
Manufacturing
Service
Stable

(ZAIN)
The most outspoken advocate of the classical view of social responsibility is economist and Nobel prize winner:
Select correct option:
Carnegie Milton
Charles Darwin
Milton Freeman
Milton Friedman
In traditional goal setting, the goals are set at the top level of management and after that they:
Select correct option:
Become the responsibility of first-line management
Are broken down into sub goals for each level of the organization
All the efforts to achieve the goals are directed by top management
Are delegated to the next lower level to be achieved
Which of the management tasks is the most important for a supervisory manager?
Select correct option:
Planning
Organizing
Controlling
Staffing
A budget is an example of which of the following plan?
Select correct option:
Strategic plan
Single use plan
Informal plan
Standing plan
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Which of the following is the final step in the decision-making process?
Select correct option:
Identifying the problem
Evaluating the decisions effectiveness
Identifying decision criteria
Selecting an alternative that can resolve the problem
The behavioral dimension of leadership involving the concern that the leader has for the feelings, needs, personal
interest, problems, and well being of followers is referred to as which of the following?
Select correct option:
Consideration
Initiating structure
Autocratic
Democratic

What type of an organization actively creates, acquires, and transfers knowledge within itself and is able to modify its
behavior to reflect new knowledge?
Select correct option:
Enlightened organization
Conceptualized organization
Learning organization
Modern organization

A primary benefit of MBO is:


Select correct option:
Avoid competition
Resistance against new entrance
Improve employee motivation
Increase resources
Functional departmentalization groups jobs by which of the following?
Select correct option:
Tasks they perform
Territories they serve
Products or services they manufacture or produce
Type of customer they serve
Henri Fayol, a French industrialist, first analyzed what managers do and divided that work into functions. The study of
the management function that defines goals and establishes strategies to achieve them is called:
Select correct option:
Planning
Organizing
Leading
Controlling

Which one of the following items best reflects the extent to which a society places a high value on reducing risk and
instability?
Select correct option:
Uncertainty avoidance
Power distance
Masculinity/femininity
Long-term/short-term orientation

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When a manger made a decision and he is uncertain about the outcomes. His decision is likely to be:
Select correct option:
Of Poor Quality
Unacceptable
Successful
Risky

Forecasting techniques fall into which of the following two categories?


Select correct option:
Fixed asset and human capital
Predictive and confirmatory
Quantitative and qualitative
Empirical and conceptual
A plan developed to carry out a course of action that is not likely to be repeated in the future is called:
Select correct option:
Single-use plan
Specific plan
Reaction plan
Directional plan
The organization which has no interaction with its external environment is called:
Select correct option:
Open system
Closed system
Non-interactive system
Moderated system
(UMEED.E. SUBH)
Which famous management thinker was related with the development of "Theory X"?
Select correct option:
Douglas McGregor
Abraham Maslow
Frederick Herzberg
Chester Barnard

The management function that specifies goals to be achieved and deciding in advance the appropriate actions to
achieve those goals is:
Select correct option:
Leading
Controlling
Organizing
Planning

Monitoring organizational progress towards goal attainment is called:


Select correct option:
Planning
Organizing
Leading
Controlling
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Organizational culture is similar to an individuals:
Select correct option:
Skills
Personality
Motivation
Ability

Which of the following is NOT an example of an organizations general environment?


Select correct option:
Economic conditions
Political conditions
Social conditions
Who presented the Concept of Quality?
Select correct option:
Henri Fayol
Prof.Henry Mintzberg
Frank & Lillian Gilbreth
Prof.Edward Deming

In order to communicate, motivate and delegate a manager must have:


Select correct option:
Political skills
Conceptual skills
Technical skills
Interpersonal skills

Which of the following departmentalization is used more in recent years to better monitor the needs of customers and
to respond to changes in those needs?
Select correct option:

Needs-based (NOT SURE)


Functional
Process
Customer

Which of the following is called output of a system?


Select correct option:
Services
Material
Human
Information resource

Who is credited for the theory of motivation based on the hierarchy of needs?
Select correct option:
Abraham Maslow
Douglas McGregor
Henri Fayol
Mary Parker Follett

Which of the following is NOT an example of a constituency that makes up the specific environment?
Select correct option:
Customers
Socio-cultural
Suppliers
Competitors

The SWOT approach assesses an organization's:


Select correct option:
Speed, Wants, Order, Timing
Studies, Workflows, Opportunities, Trials
Strengths, Weaknesses, Opportunities, Threats
Signs, Worries, Objectives, Techniques

An office supply firm that has three departments based upon retail, wholesale, and governmental customers is using
which of the following types of departmentalization?
Select correct option:
Functional
Product

Customer
Geographic

To determine the ___________, a manager must determine what is relevant or important in resolving the problem.
Select correct option:
Geocentric behavior needed
Number of allowable alternatives
Weighting of decision criteria
Decision criteria

A manager who strives to ensure the activities of the organization's employees are supported and blend well with
those of individuals outside the firm could be said to hold which of the following interpersonal role within the
company?
Select correct option:
Liaison
Disseminator
Figure head
Entrepreneur

(USMAN KHALID)
What would be the best description of plans that focus on the broad future of the organization and incorporate both
external environmental demands and internal resources into managers' actions?
Select correct option:
Operational plans
Tactical plans
Strategic plans
Holistic plans
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Which of the following scientist is most closely associated with the Hawthornestudies?
Select correct option:
Adams
Mayo
Lawler
Barnard

When objectives are not written down or rarely verbalized, and the planning is general and lacks continuity, which of
the following types of planning is used?

Select correct option:


Environmental planning
Economic planning
Informal planning
Formal planning

Which of the following is the power that rests on the leaders ability to punish or control?
Select correct option:
Reward power
Coercive power
Expert power
Referent power

Inspiring people to be high performer is called:


Select correct option:
Controlling
Leading
Planning
Organizing

Which of the following theory is currently the most widely accepted when describing employee motivation?
Select correct option:
Reinforcement
Three-need
Expectancy
Equity

Activities such as taking visitors to dinner and attending ribbon cutting ceremonies come under which of the following
management role?
Select correct option:
Leader
Liaison
Figurehead
Negotiator
umeed.e. subh: 2
Irfan Shahzad: 2
Muhammad Zeeshan: 2

LG and Sony electronics agreed to cooperate on developing new technologies. Representatives from each firm meet
regularly to coordinate this new venture. Which of the following roles these mangers are playing?
Select correct option:
Liaison
Leader
Disseminator
Spokesperson

A skill or capability that enables an organization to conceive of and implement its strategies is its:
Select correct option:
Strength
Weakness
Opportunity
Threat

The task environment of organizations consists of constituencies that have a direct impact on managers decisions
and actions. The main constituencies are made up of customers, suppliers, competitors, and ________.
Select correct option:
Legislators
Pressure groups
Employees
Lawyers

Set of processes involved in creating or determining the strategies of the organization is called:
Select correct option:
Strategy formulation
Strategy implementation
Strategy evaluation
Strategy imitation

What type of an organization actively creates, acquires, and transfers knowledge within itself and is able to modify its
behavior to reflect new knowledge?
Select correct option:
Enlightened organization
Conceptualized organization
Learning organization
Modern organization

Which of the following is a general statement or understanding that guide or channelize thinking in decision making?
Select correct option:
Policy
Procedure
Rule
Project
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Which of the following is a process that involves managers from all parts of the organization in the formulation of
strategic goals?
Select correct option:
Strategic management
Strategic positioning
Strategic planning
Strategic organizing

Maslow's need hierarchy, a healthy work environment is an example of what type of need?
Select correct option:
Physiological
Esteem
Safety
Social

(MZEESHAN)
What would be the best description of plans that focus on the broad future of the organization and incorporate both
external environmental demands and internal resources into managers' actions?
Operational plans
Tactical plans
Strategic plans
Holistic plans

Which of the following is NOT a key element of the Total Quality Management approach?
Focus on the customer

Employee involvement
Continuous improvement
Focus on the supplier

When call center managers spend much of their time monitoring customer calls and giving employees feedback about
how to improve their dialogue with customers in the future, these managers are using which of the following skills?
Technical
Conceptual
Situational
Ethical

The process of selecting decision criteria is accomplished by:


Massaging the data that will support a given decision
Flipping a coin to produce a 50-50 chance of being right
Determining what is relevant in making the decision
Examining the difference in the opportunities available

Alternatives that an organization chooses from its operations across several industries and several markets is called:
Business-level strategy
Corporate-level strategy
Functional-level strategy
Market-level strategy

In the MBO system:


Objectives are determined by management

Goals are only reviewed at the time of completion


Goals are used as controls
Progress is periodically reviewed
Strategic plans cover a broader view of the organization and include the formulation of goals, whereas operational
plans define ways to:
Maximize the organizations profits
Achieve the goals
Minimize the number of employees
Provide the most efficient methods of production

The first step in the decision-making process is which of the following?


Developing decision criteria
Allocating weights to the criteria
Analyzing alternatives
Identifying a problem

A skill or capability that enables an organization to conceive of and implement its strategies is its:
Strength
Weakness
Opportunity
Threat
The management function that specifies goals to be achieved and deciding in advance the appropriate actions to
achieve those goals is:
Leading
Controlling

Organizing
Planning
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The plans which deal with fairly small set of activities are called:
Strategic plan
Tactical plan
Operational plan
Personal plan

A budget is an example of which of the following plan?


Strategic plan
Single use plan
Informal plan
Standing plan

Which of the following can be defined as the art and science of formulating, implementing and evaluating crossfunctional decisions that enable an organization to achieve its objectives?
Strategy formulation
Strategy evaluation
Strategy implementation
Strategic management

Which of the following is NOT one of the situational factors thought to influence the relationship between leader
behavior and subordinate motivation to perform in the path-goal theory?

Preferences of the leader


Subordinate locus of control
Characteristics of the work group
Task structure

(sHANi)
Social obligation is the obligation of a business to meet its:
Select correct option:
Social and technological responsibilities
Economic and social responsibilities
Technological and economic responsibilities
Economic and legal responsibilities

All of the following are the examples of the actions that can be taken in strategy implementation stage EXCEPT:
Select correct option:
Changing organization's pricing strategy
Developing new employee benefits
Transferring managers among divisions
Taking corrective action when needed

The method by which strategies are operational zed or executed within the organization is called:
Select correct option:
Strategy implementation
Strategy evaluation
Strategy formulation
Strategy imitation

The idea that employees should also share the profit of organization was given by:
Select correct option:
Frederick Taylor
Robert Owen
Charles Babbage
W. Edwards Deming

In some countries, such as Venezuela, titles, rank, and status carry a lot of weight. These countries have a large:

Select correct option:


Power distance
Uncertainty avoidance
Short- versus long-term orientation
Individualism versus collectivism

Which of the following is associated with the classical view of social responsibility?
Select correct option:
Economist Robert Reich
Concern for social welfare
Stockholder financial return
Voluntary activities

Which of the following management thinker created a role classification system based on how managers spend their
time at work to describe a manager's role?
Select correct option:
Peter Brabeck-Letmathe
Abraham Maslow
Andrea Jung
Henry Mintzberg

Which of the management tasks is the most important for a supervisory manager?
Select correct option:
Planning
Organizing
Controlling
Staffing

Forecasting techniques fall into which of the following two categories?


Select correct option:
Fixed asset and human capital
Predictive and confirmatory
Quantitative and qualitative
Empirical and conceptual

Which of the following theory is currently the most widely accepted when describing employee motivation?
Select correct option:
Reinforcement

Three-needs
Expectancy
Equity

A leader, such as Bill Gates of Microsoft, who can inspire followers above their own self-interests and can have a
profound effect on their performance, are known as which of the following?
Select correct option:
Transactional leaders
Directive leaders
Informational leaders
Transformational leaders

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A situation in which an organization is not implementing valuable strategies that are being implemented by competing
organization is called:
Select correct option:

Competitive disadvantage
Distinctive competencies
Competitive edge
Competitive parity

Which of the following term is defined as a business firms obligation, beyond that required by law and economics, to
pursue long-term goals that are good for society?
Select correct option:
Social obligation
Social responsibility
Social screening
Values-based management

Feed Back of ____ is necessary to improve the quality of the product.


Select correct option:

Customers
Employees
Investors
All of the given options

Which of the following is the accountability for the achievement of objectives, the use of resources, and the adherence
to organizational policy?
Select correct option:
Power
Responsibility
Authority
Planning

(WASIM)
Which management theory focuses on managing the total organization?
Select correct option:
Scientific management
Administrative management
Behavioral management
Quantitative management
Communication should be:
Select correct option:
From Top to Bottom level
From Bottom to top
2 way
None of the given option
The following is the process of developing businesses to pursue trends and changes that no one else has seen
before?
Select correct option:
Entrepreneurship
Division of labor
Evolution
E-commerce
A learning organization has developed its________.
Select correct option:
Educational department to keep employees trained
Capacity to adapt and change

Barriers to entry of its markets


A sustainable competitive advantage that is easy to maintain
The greater the risk involves in making a decision, the greater the:
Select correct option:
Outcomes
Information available
Rewards (NOT SURE)
Uncertainty
A skill and capability held by numerous competing firms is called:
Select correct option:
Common strength
Competitive edge
Competitive parity
Distinctive competencies
The quantitative approach has contributed directly in the areas of:
Select correct option:
Planning and control
Control and leading
Organizing and control
Planning and leading
Which of the following early advocates of organizational behavior was the first to argue that organizations were open
systems?
Select correct option:
Robert Owens
Hugo Munsterberg
Mary Parker Follett
Chester Barnard
The people at the bottom of the organization generally deal with repetitive and familiar problems such as workers who
are late or machinery that breaks down. As a result, most of the decisions made by first line supervisors are:
Select correct option:
Programmed decisions
Ill-structured decisions
Novel decisions
Non-programmed decisions
The method by which strategies are operational zed or executed within the organization is called:
Select correct option:
Strategy implementation
Strategy evaluation
Strategy formulation
Strategy imitation
The belief that businesses should be responsible because such actions are right for their own sake is known as which
argument for social responsibility?

Select correct option:


Public expectation
Ethical obligation
Public image
Discouragement of government regulation

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