Principles of Management Practice Exam
while good management is basic to starting and growing a business, once some measures of success has been achieved, good management becomes less important
companies that plan have larger profits and faster growth than companies that dont
typical titles used for top managers are general manger, plant manager, regional manager, and divisional manager
top managers are responsible for creating a climate for change in an organization
first-line managers are the only managers who do not supervise other managers
companies look for a total of four sets of skills in individuals to identify potential managers. these desired skills are technical skills, human skills, conceptual skllls, and motivation to change
what is defined as getting work done through others?
the failure of assistance to arrive in a timely fashion was due to a lack of what?
what is determining organizational goals and the means for achieving them?
what is monitoring progress toward goal achievement and taking corrective action when needed?
what management function was used when the warnings were mailed to subscribers?
what management function was used for the recall?
what management function was usedto boost morale?
what manager would be used for the company would be expected to develop the long-term plans needed to make the company profitable?
what type of skills tends to be equally important at all levels of management?
management ideas and practice have been used from the earliest times of recorded history
according to the principles of scientific management, work and responsibility for the work, should be divided equally between workers and management
weber’s concept of bureaucratic management supported qualification-based hiring and merit-based promotion
according to bureaucratic management principles, those higher in the chain of command do not have the right to give commands, take action, and make decisions concerning activities occurring anywhere below them in the chain
the point of integrative conflict resolution is to have both parties indicate their preferences and then work together to find an alternative that meets the needs of both
according to the systems approach to management, an open system can function without interacting with its environment
PRIOR to the introduction of what, five workers each given an identical task could use five different methods to perform the task with some methods being significantly more efficient than others
what is the goal of scientific management?
find the one best way to perform each task
what is the gantt chart?
a chart that shows when and where tasks need to be completed so that a job can be completed in a timely fashion
according to Weber, a bureaucracy is what?
is the exercise of control on the basis of knowledge, expertise, or experience
who is best known for developing the five functions of managers and the fourteen principles of managment?
the (blank) approach focuses on the psychological and social aspects of work?
according to Mary Parket Follet, (blank), is an approach for dealing with conflict in which one party satisfies its desires and objectives at the expense of the other party’s desires and objective
according to Mary Parket Follet, if managers use (blank) to settle or reduce conflict, each of the parties give up some of what they want
in general, people will be indifferent to managerial directives or orders if they what?
are understood, are consistent w/the purpose of the organization, can actually be carried out by those people, are compatible w/the people’s peronsal interests
the two kinds of external organziational environments are the general environment and the specific environment
external environments are the focus and events outside a company that have the potential to influence or affect it
resource scarcity is the degree to which an organization’s external environment has an abundance or lack of critical organizational resources
the general environment consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations
changes in any sector of the general environment eventually affect most organizations
business confidence indices are a viable alternative to economic statistics for management decision making
in terms of external organizational environments, the (blank) environment affects all organizations, while the (blank) environment is unique to each company
which of the following companies is most likely operating in a dynamic environment?
a video game manufacturer
over the past 20 years, which of the following is an industry that has experienced both the stable and dynamic environments predicted by punctuated equilibrium theory?
the airline industry
according to the (blank) theory, companies go through long simple periods of environmental stability, followed by short complex periods of dynamic fundamental environmental change, finishing with a return to environmental stability.
punctuated equilibrium theory
suppose that a Mexican car manufacturer wants to export cars to Guatemala. The fact that the distribution of income within Guatemala is highly unequal and that about 75% of the population is below the poverty line would be a(n) (blank) component in the manufacturer’s general environment.
environemental (what) is affected by environmental complexity, change, and resources.
which of the following is the LEAST aggressive approach likely to be used by an advocacy group?
managers often prefer to use business confidence indices to do what?
as predictors of future economic activity when making business decisions
the first step managers use to make sense of their changing environments is what?
under the U.S sentencing commission guidelines, a culpability score is a way of assigning blame to a company
under the U.S. sentencing commission guidelines, companies without compliance programs can pay fines many times larger than companies with established compliance programs
the concept of magnitude of consequences is the total harm or benefit derived from an ethical decision
Kohlberg’s three phases of moral development (in appropriate order0 are law and order, instrumental exchange, and universal principle.
the first step in establishing an ethical climate in a company is for managers to act ethically themselves
stakeholders are people or groups with an interest in a company’s actions
the (blank) determined that companies can be prosecuted and punished for the illegal or unethical actions of employees even if management didn’t know about the unethical behavior.
U.S. Sentencing Commission Guidelines
According to the U.S Sentencing Commission Guidelines, what is on method used to determine the level of the offense?
examining the loss incurred by the victims
to create a compliance program that is acceptable under the U.S Sentencing Commission Guidelines, a company should what?
establish standards and procedures to meet the company’s business needs, put upper-level managers in charge of the compliance program, encourage employees to report violations, train employees on standards and procedures
the Department of Defense doesn’t classify pilferage as a major problem, as its annual inventory losses run $1-2 billion a year. The intentional theft and sale of defense secrets would have greater ethical intensity than this pilferage due to what?
magnitude of consequences
What are the 3 stages of moral development by Kohlberg?
preconventional level, conventional level, and postconventional level
to encourage more ethical decision making in an organization, managers should:
carefully select and hire new employees, establish a specific code of ethics, create an ethical climate, train employees in how to make ethical decisions
which of the following is an objective of ethics training?
develop employee awareness about ethics, push ethics training throughout the entire organization, teach employees a practical model of ethical decision making, achieve credibility with employees
why is it often difficult for an employee to assume the role of whistleblower?
because employees fear that they will be punished
what is social responsibilty?
a business’ obligation to pursue policies, make decision, and take actions that benefit society
S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely
encouraging worker participation in goal setting, making goals public, and getting top managment’s support are all recommended ways to increase goal commitment in a company.
both proximal and distal goals are used to provide additional motivation and rewards for employees
developing a purpose statement is the sole responsibility of middle management
tactial plans specify how a company will use its resources, budgets, and people to accomplish specific goals within its mission
management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of those goals
after $8 billion in profit, Shell decided to strive to double profits within the next five years. Which classical management function would be instrumental in achieving this goal?
what is planning ultimately based on?
choosing a goal and developing a method or strategy to achieve that goal
which of the following is NOT one of the characteristics of SMART goals?
which of the following is a commonly used method for increasing goal commitment?
encouraging worker participation in goal setting
a manufacturer of suntan lotion set a(n) (blank) goal to increase revenues by 8% over the next five years and a(n) (blank) goal to increase sales next June in the Miami Beach area by 3%.
what plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission?
who is primarily responsible for developing operational plans?
what is the process of choosing a solution from available alternatives?
what does groupthink occur in?
highly cohesive groups where there is a great deal of pressure to agree with each other
there are four conditions that must be met if a firm’s resources are to be used to achieve a sustainable competitive advantage. The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable
companies face very little uncertainty in their strategic business environments
character of the rivarly is a measure of the intensity of competitive behavior between companies in an industry
the threat of substitute products or services is a measure fo the ease with which customers can find substitutes for an industry’s goods or services
bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers.
a sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ?
those companies have, for the moment, stopped trying to duplicate the advantage
which of the following must be met if a firm’s resources are to be used to achieve a sustainable competitve advantage?
imperfectly imitable resources
when making travel plans, many tourists have selected Thomas Cook, a British tour operation, because they perceive that no other tour company can duplicate the customer service and satisfaction that Thomas Cook has provided over its years of operation. Thomas Cook has apparently created a sustainable competitive advantage by using (blank) resources
Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage?
no, because size is not a criteria for sustainable competitive advantage
A(n) (blank) resource is a resource that is not controlled or possessed by many competing firms:
A(n) (blank) is a resource that is impossible or extremely costly or difficult for other firms to duplicate
according to Michael Porter, five industry forces determine an industry’s overall attractiveness and potential for long-term profitability. Which of the following is one of those forces porter identified?
bargaining power of suppliers
which of the following is NOT one of the five industry forces that determine an industry’s overall attractiveness and potential for long-term profitability?
existing complementary products
Clorox corporation controls 60% of the bleach market. Imagine you are an entrepreneur who was considering developing and marketing a new brand of bleach. Which of Michael Porter’s industry forces should you be most concerned about?
bargaining power of buyers
companies that want to sustain a competitive advantage must understand and protect themselves from the strategic threats of innovation
dominant designs emerge because they solve a practical problem, are a result of the negotiations of independent standards bodies, or because of critical mass
a creative work environment requires organizational encouragement and supervisory encouragement as well as work group encouragment
resistance to change usually results from organizational factors: such as the absence of promotion guidelines, bonuses, and praise
declaring victory too soon is one of the mistakes managers often make in the refreezing stage of change
deciding where to “go global” is just as important as deciding how your company will go global
organizational (blank) is the successful implementation of creative ideas in organizations
nearly all technology cycles follow the typical (blank) pattern of innovation
patterns of innovation over time that can create sustainable competitve advantage are called what?
what are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged?
creative work environments
what is the segmenting of markets based on the region of the country or the world, market size, market density, or climate?
which of the following is one of the sources of resistance to change?
the three steps in the basic process of managing organizational change outlined by Kurt Lewin are ?
unfreezing, change intervention, and refreezing
according to Hofstede’s research on cultural dimension, (blank) cultures emphasize the importance of relationships, modesty, caring for the weak, and family
the term (blank) is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured ,ambiguous, and unpredictable situations
organizational structure is the description of the vertical and horizontal configuration of departments, authority, and jobs within a company
functional departmentalization organizes work and workers into separate units responsible for particular kinds of customers
in matrix departmentalization, as in other forms of departmentalization, most employees report to a single boss
specialized jobs are generally inefficient
job enlargement and job enrichment mean essentially the same thing
as a class project, Senora is working with other classmates to create a company that would market NASCAR memorabilia. Senora’s teacher has instructed her to use the traditional approach to create the organization’s structure. What should Senora do?
create an organizational structure w/vertical and horizontal configurations
while (blank) emphasizes jobs and their authority relationships, (blank) emphasizes the activities through which work gets done in the organization.
organizational structure; organizational process
which of the following statements about functional departmentalization is true?
functional departmentalization allows work to be done by highly qualified specialists
hallmark has four departments. These departments are (1) flowers and gifts, (2) cards and e-cards, (3) hallmark collectibles, and (4) photo albums and scrapbooks. Hallmark uses (blank) departmentalization
a manufacturer of acrylic and latex gloves sells to medical laboratories, to factories where employees handle chemicals, to companies that manufacture micro-tech equipment, and to cleaning services. Because it is organized to better satisfy the needs of each of its four target markets, the manufacturer uses (blank) departmentalization
the primary advantage of (blank) departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplications
in terms of chain of command, (blank) authority is the right to command subordinates, while (blank) authority is the right to advise but not command others who are not subordinates
as a result of their structures, matrix organizations automatically violate the principle of what?
unity of command
leads to faster decision making and more satisfied customers and employees
teams are typically required when tasks are complex, require multiple perspectives, or require repeated interaction with others to complete.
autonomy is the degree to which workers have the discretion, freedom, and independence to decide how and when to accomplish their jobs.
as teams develop and grow, they pass through three stages of development. these three stages are 1) perceived teams, 2) felt team, and 3) manifest team
once teams have made it to the performing stage, they no longer need fear a decline in performance
a group in Great Britain has been established to improve the employment, retention, and promotion prospects of black and other ethnic minorities as well as women in the Fire and Rescue Service, which at present has a largely white, male demographic. At its inception, this group was in the (blank) stage of team development
group cohesion tends to be relatively strong at the (blank) stage of team development
a team has finally matured into a fully-functioning team at the (blank) stage of development
a group in Great Britain has been established to improve employment, retention, and promotion prospects of ethnic minorities as well as women in the Fire and Rescue Service, which at present has a largely white, male demographic. By the (blank) stage of team development, the group members will have resolved petty differences, developed friendships, and begun to establish some group cohesiveness
human resource management is the process of finding, developing, and keeping the right people for the company
job analysis is a purposeful and systematic process of collecting information on the important work-related aspects of a job
background checks can be used to verify the truthfulness and accuracy of information that applicants provide about themselves
training provides opportunities for employees to develop the job-specific skills, experience, and knowledge they need to do their jobs or improve their performance
employee turnover is always bad for an organization
the fact that a 98-pound job candidate is not hired as a dock worker to move 60-pound boxes of produce is legal as a result of what?
bona fide occupational qualifications (BFOQs)
what is intentional discrimination that occurs when people are purposefully not given the same hiring, promotion or membership opportunities because of their race, sex, age, ethnic group, national origin, or religious beliefs?
when a CEO opened the nationwide sales force meeting with a crude sexually explicit joke, this is an example of what?
which of the following types of information would typically be collected as part of a job analysis?
work activites, tools and equipment used, knowledge, skills, and abilities needed to do the job, job context
which of the following is an internal recruiting method?
the first selection device most job applicants encounter when they seek a job are what?
application forms and resumes
a study in the construction industry found when equipment is stolen from building sites, workers are the culprits 82% of the time. Which type of selection information would help employers receive the greatest benefit from if their goal was to stop employee theft?
“References Etc” will pose as a prospective employer, call a prior employer on an employer’s behalf, and find out what the former employer is saying. If the prior employer provides unsubstantiated negative information, then the job applicant what?
can sue for defamation
A (blank) is a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and co-workers as well as the employees themselves
once lower-order needs are satisfied, it is difficult to predict which higher-order needs will motivate behavior
an intrinsic reward is a reward associated with performing a task or activity for its own sake
for punishment to work, the punishment must be strong enough to stop the undesired behavior, and must be administered objectively, impersonally, consistently and contingently, and quickly
one of the simplest, most effective ways to motivate workers is to give them specific, challenging goals that they accept
for goal-setting theory to motivate employees, mangers must provide frequent, specific, performance-related feedback
process theories of work motivation explain what motivates employees
McClellend’s Learned Needs Theory identifies three needs. they are the needs for what?
power, achievement, and affiliation
According to Alderfer’s ERG theory, the lowest-order need is what?
managers can motivate employees to increase their efforts by what?
relying on the innate value of extrinsic rewards
A (blank) is a target, objective, or result
states that people will be motivated when they perceive that they are being treated fairly
people will be motivated to the extent which they believe that their efforts will lead to good performance
behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently and behavior will have negative consequences or not followed by positive consequences, will occur less frequently
goal setting theory
people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement
leadership is the process of influencing others to achieve group or organizational goals
one of the differences between managers and leaders is that managers focus on visions, missions, goals, and objectives, and leaders focus solely on productivity and efficiency
the primary difference between leaders and managers is that leaders are concerned with doing the right thing, while mangers are concerned with doing things right
initiating structure leader behavior has also been referred to as “job-centered leadership” and “concern for production” while the leadership behavior of consideration has also been referred to as “concern for people” and “employee-centered leadership.”
since there are no consistent trait differences between leaders and non-leaders, or between effective and ineffective leaders, trait theory is wrong
the major situuational leadership theories all assume that the effectiveness of any leadership style depends on the situation.
the “great person” theory is another name for the (blank) theory of leadership
successful business leaders are not like other people. Successful business leaders are what?
are accurately described by all of these
Walter Reed Army Institute of Research has made a study of how important it is for military leaders to be friendly with and to show concern for their troops. Its research shows that a leadership behavior high in (blank) positively influences soldiers and their ability to adapt to a stressful environment.
coaching football at the collegiate level requires that coaches design every facet of practices, set goals for their players, determine schedules, and even direct all of the plays during the games. College football coaching uses (blank) type of managing
Bill Belichick is the coach of the New England Patriots football team. As a successful coach, he has to schedule structured practices, emphasize careful planning, and assign tasks. He also has to show the players that he genuinely cares about them as people. According to the Blake and Mouton grid, Belichick’s leadership style would be characterized as what?
which of the following is an example of a situational theory of leadership?
Fielder’s contingency theory
which of the following approaches to implementing Fiedler’s contingency theory in the workplace has proven effective?
accurately measuring and matching leaders to situations
According to which of the following leadership model occurs when leaders make it clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals, these leaders are demonstrating what?
the path-goal theory
which of the following is NOT one of the 4 leadership styles identified in Hershey & Blanchard’s Situational Leadership Model?
in the perceptual process, apprehension is the process of remembering interpreted information
managers with better listening skills are rated as better managers by their employees and are much more likely to be promoted
in communicating feedback to employees, managers need to recognize that feedback can be constructive or destructive
frequent, informal meetings between top managers and lower-level employees are one of the best ways for top managers to hear what others feel and think
in general, blogs serve no value in the corporate world
the steps in the basic perception process include all of the following EXCEPT what?
what is the tendency to overestimate our value by attributing successes to ourselves(internal causes) and attributing failures to others or the environment(external causes)
a self-serving bias
in the model of the communication process, (blank), makes senders aware of possible miscommunications and enables them to continue communicating until the receiver understands the intended message
the three formal communication channels in organizations are categorized as what?
downward, horizontal, and upward
the (blank) is the sytem of official channels that carry organizationally approved messages and information
formal communication channel
in the (blank) type of grapevine communication network, one highly connected individual shares information with many other managers and workers
(blank) is a kind of one-on-one communication used by managers to improve an employee’s on-the-job performance or behavior
in which of the following cases would written communication be preferable to oral communication?
when messages are straightforward
the first thing that mangers need to recognize when communicating feedback one-on-one to employees is that feedback can be what?
constructive or destructive
one of the best ways for top managers to hear what others feel and think is through what?
frequent informal meetings