MCQs

Answers at the end of page
5. 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.
6. ______ isolate characteristics
that differentiate leaders from nonleaders.
a. Trait theories
b. Behavioural theories
c. Contingency theories
d. Transactional theories
e. Situational theories
7. 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
8. The ______ style of leadership

behaviour can be further
classified in two ways: consultative and participative.
a. autocratic
b. delegative
c. democratic
d. laissez-faire
e. free-reign
9. 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.
a. democratic-participative
b. laissez-faire
c. autocratic
e. democratic-delegative
11. 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 style of leadership.
b. laissez-faire
c. autocratic
12. A leader who allows hisemployees complete freedom tomake decisions and to
completework in whatever way they thinkis best is using which leadershipstyle?
b. laissez-faire
c. autocratic
13. According to Tannenbaum andSchmidt, in the long run, whichleadership style should
managersmove toward?
a. autocratic
b. laissez-faire
c. democratic-participative
e. boss-centred
14. Jake always consults with hisemployees and uses theirsuggestions before making
adecision. He is demonstratingwhich type of leadership style,according to House?
a. directive
b. achievement-oriented
c. participative
d. supportive
e. cooperative
15. Women tend to use a more style of leadership.
a. autocratic
b. laissez-faire
c. democratic
d. directive
e. transactional
16. Men tend to use a more _______
leadership style.
a. employee-centred
b. task-centred
c. organization-centred
d. customer-centred
e. management-centred
17. 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.
a. Integrity
b. Followership
c. Trust
d. Loyalty
e. Openness
19. The ______ dimension of trust
refers to the willingness to

protect and save face for others.
a. integrity
b. competence
c. openness
d. loyalty
e. consistency
20. As the new manager explainedthe recent sales trend, othersbegan to wonder if he
reallyknew what he was talking about.Their doubt relates to the dimension of trust.
a. integrity
b. competence
c. openness
d. loyalty
e. consistency
21. Not all leaders are managers, norare all managers leaders.
a. True
b. False
22. Managers are people who areable to influence others and whopossess managerial authority.
a. True
b. False
23. Charisma and enthusiasm aretraits that have been found toconsistently differentiateleaders
from nonleaders.
a. True
b. False
24. Lewin explored three leadershipbehavioursautocratic,democratic, and laissez-faire.
a. True
b. False
25. An autocratic leader would allowemployees to participate indecision making.
a. True
b. False
26. A democratic-participativeleader gathers information fromemployees but makes the

finaldecision alone.
a. True
b. False
27. Tannenbaum and Schmidtsuggested that in the long run,managers should move toward
anemployee-centred leadershipstyle.
a. True
b. False
28. 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.
a. True
b. False
29. Team leaders' responsibilitiesinclude coaching, facilitating,

handling disciplinary problems, reviewing team/individual performance, training, and
communication.
a. True
b. False
30. Men tend to use a moredemocratic leadership style thanwomen.
a. True
b. False
31. Leadership may not always beimportant in an organization.
a. True
b. False
32. Trust implies familiarity and risk.
a. True
b. False
Answers:
5. e
6. a
7. c
8. c
9. c
10. d
11. a
12. b
13. c
14. c
15. c
16. b
17. a
18. c
19. d
20. b
21. True
22. False
23. False
24. True
25. False
26. False
27. True
28. False
29. True
30. False
31. True
32. True
Chapter One: Managers and Management
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.
6. Effective management is using staff, time and resources wisely to minimize

unnecessary cost to the organization.
7. Managers can be classified in terms of either their level in the organization at

which they work and or their area of specialization.
8. Defining goals and setting objectives is part of the organizing function of

management.
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
11. Organizations that are more efficient are effective
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.
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.
21. The primary distinction between operatives and managers is that operatives have
employees who report directly to them.
22. Operatives direct the activities of other people in the organization.

23. Middle managers may have titles such as department head, project leader, unit
chief, or district manager.
24. Effectiveness means doing the task right and refers to the relationship between
inputs and outputs.
25. It's easier to be effective if one ignores efficiency.

26. An organization can be efficient and yet not effective.

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.
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.
32. A manager's job differs in profit and not-for-profit organizations.

33. Profit acts as an unambiguous measure of the effectiveness of a business

organization.
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.
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.
39. To see how things fit together and facilitate making good decision, managers use
conceptual skills to analyze and diagnose complex situations.
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.
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.
42. The big picture of management is often lost when management concepts are
studied under different professors.
43. Anthropology helps managers better understand differences in fundamental

values, attitudes, and behavior.
44. Philosophy can help us understand the concepts of conflict and power.
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.
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.
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)
The term manager refers to anyone who ________.
Answer: has designated responsibilities for carrying out managerial activities
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 larger-country 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 next-immediate-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
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MGT503 Principles of Management - MCQs From Quiz # 3
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 self-contained, 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

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5. 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.

6. ______ isolate characteristics

that differentiate leaders from nonleaders.

e. honesty and integrity

8. The ______ style of leadership

classified in two ways: consultative and participative.

9. A leader who tends to centralizeauthority, dictate work methods,and make unilateral

15. Women tend to use a more style of leadership.

16. Men tend to use a more _______

17. The most critical dimension indetermining another'strustworthiness is:

18. ______ is a positive expectation

that another will not act opportunistically.

19. The ______ dimension of trust

refers to the willingness to

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

25. An autocratic leader would allowemployees to participate indecision making.

26. A democratic-participativeleader gathers information fromemployees but makes the

28. Susan tells employees exactlywhat is expected of them,schedules work to be done,

29. Team leaders' responsibilitiesinclude coaching, facilitating,

30. Men tend to use a moredemocratic leadership style thanwomen.

31. Leadership may not always beimportant in an organization.

32. Trust implies familiarity and risk.

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

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

6. Effective management is using staff, time and resources wisely to minimize

7. Managers can be classified in terms of either their level in the organization at

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

9. The four processes of management consist of controlling, leading, planning and

11. Organizations that are more efficient are effective

(False; Challenging; p. 10)

14. Since you cannot measure the bottom-line in non-profit organizations,

16. Intellectual skills are most critical for successful management.

17 An understanding of interpersonal relationships that can be gained from

18. There is a universally accepted model of a successful manager.

19. A systematic arrangement of people brought together to accomplish some

22. Operatives direct the activities of other people in the organization.

25. It's easier to be effective if one ignores efficiency.

26. An organization can be efficient and yet not effective.

28. The organizing component encompasses defining an organization's goals,

29. The leading component of management includes directing and coordinating

32. A manager's job differs in profit and not-for-profit organizations.

33. Profit acts as an unambiguous measure of the effectiveness of a business

43. Anthropology helps managers better understand differences in fundamental

45. It is important to study government because management is affected by a

46. Psychology courses are relevant to managers in terms of understanding

Multiple Choice Questions

54. A manager is someone who

63. __________ is not an example of a title of a middle manager.

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

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

78. Developing an organizations structure may include creating rules and

80. Which of the following is not true about operatives?

81. Managers primarily perform which of the following tasks?

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

94. Defining goals, establishing an overall strategy, and developing a comprehensive

What is the primary legacy of Frederick Taylor?

Which of the following roles is an interpersonal role?

According to Mintzberg's theory of managerial functions, ________ roles include acting as