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1.Howdoesthecompetitivelandscapeshapethepotentialforsuccessorfailure?Whichofthefollowingpillarsof
managingorganizationsaddressesthisquestion?
a.Strategicpositioning
b.Organizationaldesignandstructure
c.Individualleadership
d.Shareholdervalue
ANSWER:a
2.Whichofthefollowingquestionsisaddressedbytheorganizationalperspectiveofmanagement?
a.Howshouldabusinesscompete?
b.Howwillperformancebemeasured?
c.Whatstrategywillallowafirmtoadaptasthecontextevolves?
d.Howdomanagersusepowerandinfluence?
ANSWER:b
3.Afterhiringaconsultant,aseniormanagementteamrealizedthattheorganizationsstructuredidnotenableproper
usageofitsresourcesandtheculturewasnotreinforcingemployeeperformance.Whichofthefollowingpillarsof
managingorganizationshastheorganizationfailedtoconsider?
a.Strategicpositioning
b.Organizationaldesign
c.Individualleadership
d.Organizationalclimate
ANSWER:b
4.Z-GadgetsoftenfacesoppositionwhenitgoesintoacommunitytoopenanewZ-Gadgetsstore.Onereasonforthis
isthatthemanagementofZ-Gadgetshasbeenaccusedofunethicalacts,suchasdiscriminatingagainstwomenand
minorities.Thetopmanagers'poortreatmentofwomenandminorityemployeesmightbeconsideredafailurewith
respecttowhatareaofmanagingorganizations?
a.Strategicpositioning
b.Organizationaldesign
c.Individualleadership
d.Shareholdervalue
ANSWER:c

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5.Whichofthefollowingstatementsaboutthethreepillarsofmanagementistrue?
a.Theinteractionbetweenthethreepillarsofmanagementisalinearprocess.
b.Thestrategicperspectiveinvolvesdevelopingandaligningtheorganizationalcomponentstoachievestrategic
objectives.
c.Theinterplayofstrategy,organizationaldesign,andindividualactionoperateswithinabroadcontextual
landscape.
d.Individualleadershipaddressestheimpactofglobalizationoncompetitivepositioningofabusiness.
ANSWER:c
6.Oneincreasinglypopularacronymthatcapturesthecontextinwhichtoday'sorganizationscompeteisVUCA.Which
ofthefollowingisNOTatermthatthelettersofVUCArepresent?
a.Volatile
b.Uncertain
c.Competitive
d.Ambiguous
ANSWER:c
7.Whichofthefollowingisthemostimportantskillofamiddlemanager?
a.Technicalskillstoearncredibilityofhis/herteam
b.Interpersonalskillssuchasmotivatinganddevelopingteams
c.Settingvisionandobjectivesfortheorganization
d.Conceptualskillsfordevelopingtheorganizationsstrategy
ANSWER:b
8.Whichofthefollowingindividualsisthebestexampleofafrontlinesupervisor?
a.Apersonwho,alongwithotherseniorexecutives,developstheorganizationsstrategyusingconceptualskills
b.Apersonwhodevelopsandmotivateshisteamusinginterpersonalskills
c.Apersonwhofocusesontechnicalissuestoensurethatoperationsarerunningsmoothly
d.Apersonwhosetsthevisionandobjectivesofanorganization
ANSWER:c
9.Johnisatopexecutiveinanorganization.Heisinvolvedindevelopingandimprovingtheorganization'sstrategyby
workingalongwithotherseniorexecutives.Fromthisscenario,itcanbeinferredthatJohnusesthe_______of
management.
a.technicalskills
b.conceptualskills
c.interpersonalskills
d.behavioralskills
ANSWER:b

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Chapter01IntroductiontoManagement
10.Thefactorthatdistinguishesleadershipfrommanagementisthat
a.leadershipfocusesonplanningandbudgeting.
b.leadershipistheactofworkingwithpeopletoaccomplishadesiredgoal.
c.leadershipinvolvesbudgeting,controlling,andstaffingresources.
d.leadershipistheabilitytodrivechangethroughmotivation.
ANSWER:d
11.Helen,aseniorexecutive,workswithotherstocreatethestrategicpositioningthatwillenablethefirmtoeffectively
competeinthemarketplace.Fromthisscenario,itcanbeinferredthatHelenusesthe_______ofmanagement.
a.technicalskills
b.conceptualskills
c.interpersonalskills
d.behavioralskills
ANSWER:c
12.Whichofthefollowingindividualsisthebestexampleofaseniorexecutive?
a.Apersonwhohelpsrefinetheorganizationsstrategyusingconceptualskills
b.Apersonwhodevelopsandmotivateshisteamusinginterpersonalskills
c.Apersonwhofocusesontechnicalissuestoensurethatoperationsarerunningsmoothly
d.Apersonwhosetsthevisionandobjectivesofanorganization
ANSWER:d
13.Thefrontlinemanagersofafirmarefeelingdirectionlessandresistanttochange.Middlemanagementhasfailedin
providing
a.aplan.
b.abudget.
c.delegationofduties.
d.leadership.
ANSWER:d
14.Harry,atopmanagerofanorganization,clearlydifferentiatedthetasksandresponsibilitiesofhisemployees.
Moreover,heemphasizedthattop-levelexecutivesshoulddotheplanningandlower-levelexecutivesshouldexecute
thoseplans.IdentifythemanagementtechniqueusedbyHarry.
a.Bureaucraticorganizationstructure
b.Humanrelationsmovement
c.Scientificmanagement
d.Contingentview
ANSWER:a

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15.Accordingtothecontingentview
a.organizationsmustbeunderstoodassystemsofinterdependenthumanbeings.
b.jobsmustbedesignedtoimproveproductivityusingindustrialengineeringmethods.
c.coordinationshouldtakeplacethroughastricthierarchyofauthority.
d.theorganizationsstructureshouldfitthefirmsenvironment.
ANSWER:d
16.Thefactorthatdistinguishesthehumanrelationsmovementfromscientificmanagementisthatthehumanrelations
movement
a.focusesonhowjobscouldbedesignedtoimproveproductivity.
b.emphasizestheimportanceofinformalsocialrelationsatwork.
c.viewsthefirmasamachineandthemanagerasamachineoperator.
d.shiftsemphasisfromthesocialsideofthefirmtotheoutputofthefirm.
ANSWER:b
17.Whichofthefollowingstatementsbestdescribesscientificmanagement?
a.Itfocusesonhowjobs,work,andincentiveschemescouldbedesignedtoimproveproductivityusingindustrial
engineeringmethods.
b.Itinvolvesacleardifferentiationoftasksandresponsibilitiesamongindividualsandcoordinationthroughastrict
hierarchyofauthorityanddecisionrights.
c.Itholdsthebeliefthatorganizationsmustbeunderstoodassystemsofinterdependenthumanbeingswhoshare
acommoninterestinthesurvivalandeffectivefunctioningofthefirm.
d.Itisaviewofthefirmwhereeffectiveorganizationalstructureisbasedonfitoralignmentbetweenthe
organizationandvariousaspectsinitsenvironment.
ANSWER:a
18.BestTools,amanufacturingcompany,needstocutcoststoremaincompetitive.Themanagerofthecompany
believesthattheanswerliesinfindingmoreefficientprocessesandisusingtimeandmotionstudiestoseewhere
improvementscanbemade.ThisshowsthatthemanagerofBestToolsisusing_____tomakestrategicchanges.
a.technicalskills
b.contingencyapproach
c.contextualintelligence
d.scientificmanagement
ANSWER:d

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19.Accordingtothe_____viewofthefirm,thejoboftopmanagerswastoproducethehighestpossiblestockmarket
valuationofthefirmsassets.
a.managerial
b.stakeholder
c.contingent
d.shareholder
ANSWER:d
20.Whichofthefollowingbestdescribesthemanagerialviewonthepurposeofbusiness?
a.Abusinessframeworkwherethejoboftopmanagersistoproducethehighestpossiblestockmarketvaluation
ofthefirmsassets
b.Abusinessframeworkthatattemptstoorganizeandanalyzemultiplegroupsthatinteractwiththefirm
c.Abusinessframeworkwhereorganizationalstructureisbasedonfitbetweentheorganizationandvarious
aspectsinitsenvironment
d.Abusinessframeworkwherethefirmisseenasamechanismforconvertingrawmaterialsintoproductstosell
tocustomers
ANSWER:d
21.The_____identifiesandanalyzesmultiplegroupsthatinteractwiththefirmandattemptstoalignorganizational
practicestosatisfytheneedsofthesevariousgroups.
a.stakeholderview
b.contingentview
c.shareholderview
d.managerialview
ANSWER:a
22.Through_____,seniorleadersofacorporationmeetwithbusinessunitmanagerstoassessprogresstowardspecific
goals.
a.contingencyplanning
b.scientificmanagement
c.strategicreviewprocess
d.scenariobuilding
ANSWER:c
23.Thefirststepofthestakeholdermappingprocessinvolves
a.identifyingspecificsubgroupswithineachstakeholder.
b.mappingallofthestakeholderrelationshipswiththefirm.
c.determiningstakesforeachstakeholder.
d.mappingconnectionsbetweenvariousstakeholders.
ANSWER:b
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24.Forecastingthelikelyresultthatmightoccurwhenseveraleventsandstakeholdersarelinkedtogetherisknownas
a.strategicreviewprocess.
b.environmentalscanning.
c.scenariobuilding.
d.contingencyplanning.
ANSWER:c
25.Whichofthefollowingreferstothesystematicassessmentoftheexternalenvironmenttoprepareforapossible
rangeofalternativefuturesfortheorganization?
a.Scenariobuilding
b.Trendanalysis
c.Contingencyplanning
d.Environmentalscanning
ANSWER:c
26.Henry,amanagerofanautomobilecompany,wantstoknowabouttheinfluenceofvariousenvironmentalfactorson
hisorganizationanditsstakeholders.Heneedsanappropriatetooltocarryoutthisfunction,whichinturnwillhelp
himpredictstakeholderresponse.Whichofthefollowingtoolswillbestservethispurpose?
a.Stakeholdermapping
b.Scientificmanagement
c.Strategicpositioning
d.Trendanalysis
ANSWER:d
27.FineElectronics,amanufacturingcompany,planstosecurenewsuppliersinRhodia.Therefore,themanagerofthe
companyanditsexecutivesvisitRhodiatobetterunderstanditscultureandexploreopportunities.Thisshowsthatthe
managerofFineElectronicsisusing_____tomakestrategicchanges.
a.technicalskills
b.contingencyapproach
c.contextualintelligence
d.scientificmanagement
ANSWER:c

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28.Whichofthefollowingbestdescribesenvironmentalscanning?
a.Forecastingandscanningthelikelyresultthatmightoccurwhenseveraleventsandstakeholdersarelinked
together
b.Atoolwherekeyvariablesaremonitoredandmodeledtohelppredictachangethatmightoccurinthe
environment
c.Theabilitytounderstandtheimpactofenvironmentalfactorsonafirmandtheabilitytounderstandhowto
influencethosesamefactors
d.Atoolthatmanagersusetoscanthebusinesshorizonforkeyeventsandtrendsthatwillaffectthebusinessin
thefuture
ANSWER:d
29.Whichofthefollowingisasignificantfactorinbuildingcontextualintelligence?
a.Developingappreciationandawarenessofhistory
b.Emphasizingtheimportanceofinformalsocialrelationsatwork
c.Convertingrawmaterialsintoproductstoselltocustomers
d.Developingstandardizedrulesandprocedures
ANSWER:a
30.Withregardtomanaginguncertainty,highuncertaintyrequires
a.lessvigilanceofcontextualforcesandlessadaptation.
b.strongervigilanceofcontextualforcesandlessadaptation.
c.lessvigilanceofcontextualforcesandmoreadaptation.
d.strongervigilanceofcontextualforcesandmoreadaptation.
ANSWER:d
31.Harriet,amanagerofasteelcompany,wantstodesignformalprocessesandsystemstodealwiththefirm'svarious
stakeholders.Whichofthefollowingtoolswillbestservethispurpose?
a.Stakeholdermapping
b.Scientificmanagement
c.Strategicpositioning
d.Trendanalysis
ANSWER:a
32.Theinteractionbetweentheformulationofstrategy,thedesignoftheorganization,andtheleadershipofthefirmisa
linearprocess.
a.True
b.False
ANSWER:False

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33.Leadershipisdefinedastheabilitytodrivechangeandinnovationthroughinspirationandmotivation.
a.True
b.False
ANSWER:True
34.Tobesuccessful,organizationsneedtodevelopandnurturemanagersandleadersthroughouttheorganization,notjust
atthetop.
a.True
b.False
ANSWER:True
35.Bureaucraticorganizationstructureinvolvesverticalseparationofplanningandexecutionsothatplansaremadein
theupperranksofanorganizationandexecutedinthelower.
a.True
b.False
ANSWER:True
36.Thehumanrelationsmovementemphasizedtheimportanceofinformalsocialrelationsatwork.
a.True
b.False
ANSWER:True
37.Managerialviewisabusinessframeworkwherethejoboftopmanagersistoproducethehighestpossiblestock
marketvaluationofthefirmsassets.
a.True
b.False
ANSWER:False
38.Astakeholderisanygrouporindividualwhocanaffectorisaffectedbytheachievementofanorganizations
purpose.
a.True
b.False
ANSWER:True
39.Describethethreepillarsofmanagingorganizations.
ANSWER:Thethreepillarsofmanagingorganizationsarestrategicpositioning,organizationaldesign,andindividual
leadership.Thestrategiclevelorperspectivewillencompassanunderstandingoftheenvironmental
landscapeinwhichbusinessescompeteandtheelementsofstrategythathelporganizationsaligntheir
resourcesforsuccessinachangingcontext.Organizationaldesignperspectiveinvolvesdevelopingand
aligningtheorganizationalcomponentstoachievethestrategicobjectives.Finally,anorganizationis
nothingmorethanacollectionofindividualswhocometogethertoachieveacommongoalorobjective.
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40.Differentiatebetweenmanagementandleadership.
ANSWER:Thedistinctionbetweenmanagementandleadershipisoftenverysubtle.Infact,mostpeopleusethe
termsinterchangeablywhentheyrefertotheoperationofabusiness.Inaseminalanalysisonthe
differencebetweenmanagersandleaders,JohnKotternotedthatleaderssetadirectionforafirm,align
peopletofocusontheorganizationsvision,andmotivateandinspirepeople.Conversely,henotedthat
managersgenerallyfocustheireffortsonplanningandbudgeting,organizingandstaffingresources,and
controllingandproblemsolving.Managementhasgenerallybeendefinedastheactofworkingwithand
throughagroupofpeopletoaccomplishadesiredgoalorobjectiveinanefficientandeffectivemanner.
Leadershiphasbeendefinedastheabilitytodrivechangeandinnovationthroughinspirationand
motivation.Thedevelopmentandexecutionofstrategyrequirestheskillsandexpertiseofleadersand
managers,andbothareequallyimportanttoanorganizationssuccess.Avisionordirectionwithouta
soundplanforexecutionisoftenmerelyadream.Theexecutionofaplanwithoutavisionoftenlacks
strategicorcompetitiveadvantage.
41.Brieflydiscussthehumanrelationsmovement.
ANSWER:Inthe1930s,theoriesofmanagementshiftedawayfromtheviewoftheorganizationasamachine.
Duringthisperiod,thehumanrelationsmovementemerged,whichemphasizedtheimportanceofinformal
socialrelationsatwork.Asopposedtoscientificmanagementsviewofthefirmasamachine,human
relationsscientistsbelievedthatorganizationsmustbeunderstoodassystemsofinterdependenthuman
beingswhoshareacommoninterestinthesurvivalandeffectivefunctioningofthefirm.Throughthe
humanrelationsmovement,emphasisshiftedfromtheoutputofthefirmtotheinformalandsocialsideof
thefirm.Fromthisstandpoint,organizationsservedasameansforpeopletointeractandlearnaswellas
produceaprofit.
42.Definebusinessenvironmentanddiscussthechangingperspectivesonthepurposeofbusiness.
ANSWER:Thebusinessenvironmentisthecombinationofallcontextualforcesandelementsintheexternaland
internalenvironmentofafirm.Overtheyears,theviewofhowtoapproachthebusinessenvironmentand
driveperformancehaschanged.
Foragoodpartofthetwentiethcentury,manymanagerssubscribedtothemanagerialviewofthefirm,
whichsawthefirmasamechanismforconvertingrawmaterialsintoproductstoselltocustomers.Inthis
framework,managersfocusedonrelationshipsbetweenthefirmanditssuppliers,customers,owners,and
employees.
Inthelate1960s,manymanagersbegantoviewthefirmthroughamoreshareholder-focusedlens.
Accordingtotheshareholderviewofthefirm,thejoboftopmanagerswastoproducethehighest
possiblestockmarketvaluationofthefirmsassets.Theshareholderviewofthefirmreacheditszenith
duringthe1980s,resultinginasubstantialchangeinthinkingaboutthepurposeofbusiness.Asthe
shareholderviewofthefirmprogressed,shareholderscontinuedtopushmanagerstoachievespecific
quarterlytargets.Themanagersfocuswasstretchedbetweendealingwithnewsourcesofexternaland
internalcomplexityanddealingwithpressurefromshareholderstoproduceresults.Thecombinationof
theseforcesledtothedevelopmentofanewparadigmfromwhichtoviewthefirm.
Thestakeholderviewofthefirmemergedamidstthisincreasingcomplexityandturbulenceinthe
economicenvironment.Itisabusinessframeworkthatattemptstoorganizeandanalyzemultiplegroups
thatinteractwiththefirm.

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43.Definestakeholder.Whatarethestepsinvolvedinstakeholdermapping?
ANSWER:Accordingtothestakeholdertheory,astakeholderisanygrouporindividualwhocanaffectoris
affectedbytheachievementofanorganizationspurpose.
Thefirststepofstakeholdermappingistomapallofthestakeholderrelationshipsofthefirm.Thenext
stepinthemappingprocessistoidentifyspecificsubsetswithinstakeholders.Thethirdstepisto
determinestakesforeachstakeholder.Thefinalstepinstakeholdermappinginvolvesdefining
connectionsbetweenstakeholders.

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