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Management Theory and Practice Review Test 1

1. The level of management tasked with supervising people performing non-managerial jobs is reflected in titles such as:
a) top level managers
b) first line managers
c) directors
d) middle managers
b) first line managers
2. Top managers are directly accountable to:
a) the employees
b) the stockholders
c) the government
d) the board of directors
e) the marketplace
d) the board of directors
3. The board of directors of a corporation are elected by the
a) Employees
b) senior managers
c) local community
d) stockholders
d) stockholders
4. The upside-down view of organizations suggests that organizations exist to serve:
a) the customers
b) the employees
c) the top managers
d) the stockholders
e) the government
a) the customers
5. The upside down pyramid suggests that the style of managers should be one of
a) Directing
b) Coaching
c) Ordering
d) all of the above
b) Coaching
6. ____________ is the process of setting goals and objectives
a) Controlling
b) Organizing
c) Planning
d) Leading
c) Planning
7. Mintzberg described the three roles of management as informational, decisional and ____________.
a) Doctorial
b) Directing
c) Emotional
d) Interpersonal
d) Interpersonal
8. When a manager is acting as a spokesperson for his / her organization, he / she is acting in a __________ role.
a) Entrepreneurial
b) Decisional
c) Interpersonal
d) informational
d) informational
9. Emotional intelligence includes all of the following facets except:
a) self awareness
b) Selfishness
c) self regulation
d) Motivation
e) Empathy
b) Selfishness
10. All of the following are positive aspects of globalization for the U.S. except:
a) borderless world for businesses
b) job migration to other countries
c) interdependence of resources flows and markets
d) global outsourcing
e) global markets
b) job migration to other countries
11. Ethics is a set of _________________ that establishes standards for what is good and right.
a) Laws
b) Policies
c) Practices
d) Moral principals
d) Moral principals
12. _____________ actively denies women and minorities the full benefits of organizational membership.
a) Discrimination
b) Prejudice
c) Affirmative action
d) Attitude
a) Discrimination
13. Employees who use primarily their minds and intellects rather than their physical capabilities are referred to as ____________.
a) managers
b) direct supervisors
c) knowledge workers
d) psychology workers
c) knowledge workers
14. Which of the following is a violation of U.S. laws regarding women and minorities?
a) Affirmative action
b) Prejudice
c) Discrimination
d) Firing without cause
c) Discrimination
15. The ______________ is a situation in which many people change jobs often and work as independent contractors for a number of employers.
a) open society
b) global economy
c) self directed employee
d) free-agent economy
d) free-agent economy
1. If a sales department supervisor is held accountable by a middle manager for the department’s performance, on whom is the department supervisor dependent in making this performance possible?
(a) Board of directors
(b) Top management
(c) Customers or clients
(d) Department salespersons
(d) Department salespersons
2. The management function of _________ is being activated when a bookstore manager measures
daily sales in the magazine section and compares them with daily sales targets.
(a) planning
(b) agenda setting
(c) controlling
(d) delegating
(c) controlling
3. The process of building and maintaining good working relationships with others who may someday help a manager implement his or her work agendas is called _________.
(a) governance
(b) networking
(c) emotional intelligence
(d) entrepreneurship
(b) networking
4. According to Robert Katz, _________ skills are more likely to be emphasized by top managers than
by first-line managers.
(a) human
(b) conceptual
(c) informational
(d) technical
(b) conceptual
5. An effective manager is someone who helps others to achieve high levels of both _________ and _________.
(a) pay; satisfaction
(b) performance; satisfaction
(c) performance; pay
(d) pay; quality of work life
(b) performance; satisfaction
6. _________ is the active oversight by boards of directors of top management decisions in
such areas as corporate strategy and financial reporting.
(a) Value chain analysis
(b) Productivity
(c) Outsourcing
(d) Corporate governance
(d) Corporate governance
7. When a manager denies promotion to a qualified worker simply because of personally disliking her because she is Hispanic, this is an example of _________.
(a) discrimination
(b) accountability
(c) self-management
(d) a free-agent economy
(a) discrimination
8. A company buys cloth in one country, has designs made in another country, has the garments sewn in
another country, and sells the finished product in yet other countries. This firm is actively engaging in
the practice of _________.
(a) job migration
(b) performance effectiveness
(c) value creation
(d) global sourcing
(d) global sourcing
9. The intellectual capital equation states: Intellectual
Capital = _________ X Commitment.
(a) Diversity
(b) Confidence
(c) Competency
(d) Communication
(c) Competency
10. If the direction in managerial work today is away from command and control, what is it toward?
(a) Coaching and facilitating
(b) Telling and selling
(c) Pushing and pulling
(d) Carrot and stick
(a) Coaching and facilitating
11. The manager’s role in the “upside-down pyramid” view of organizations is best described as providing _________ so that operating workers can directly serve _________.
(a) direction; top management
(b) leadership; organizational goals
(c) support; customers
(d) agendas; networking
(c) support; customers
12. When a team leader clarifies desired work targets and deadlines for a work team, he or she is fulfilling
the management function of _________.
(a) planning
(b) delegating
(c) controlling
(d) supervising
(a) planning
13. The research of Mintzberg and others concludes that most managers _________.
(a) work at a leisurely pace.
(b) have blocks of private time for planning.
(c) always live with the pressures of performance
responsibility.
(d) have the advantages of short workweeks.
(c) always live with the pressures of performance
responsibility.
14. Emotional intelligence helps us to manage ourselves and our relationships effectively. Someone that is high in emotional intelligence will have the capacity to _________, an ability to think before acting and to control potentially disruptive emotions and actions.
(a) set agendas
(b) show motivation
(c) self-regulate
(d) act as a leader
(c) self-regulate
15. Which of the following is a responsibility that is most associated with the work of a CEO, or chief
executive officer, of a large company?
(a) Aligning the company with changes in the external environment
(b) Reviewing annual pay raises for all employees
(c) Monitoring short-term performance of lower level task forces and committees
(d) Conducting hiring interviews for new college graduates
(a) Aligning the company with changes in the external environment
1. The Principals of Scientific Management were written in 1911 by ____________.
a) Abraham Maslow
b) Frederick W. Taylor
c) Philip Kotler
d) Douglas McGregor
b) Frederick W. Taylor
2. According to Max Weber, a _____________ is a rational and efficient form of organization based on logic, order and legitimate authority.
a) learning organization
b) Corporation
c) government agency
d) bureaucracy
d) bureaucracy
3. Which of the following is NOT a part of Max Weber’s bureaucracy?
a) Division of Labor
b) Formal rules and procedures
c) Employees personal needs
d) Careers based on merit
c) Employees personal needs
4. The individual considered by many to be a prophet of today’s management style is
a) Frederick Taylor
b) Mary Parker Follett
c) Max Weber
d) Abraham Maslow
b) Mary Parker Follett
5. All of the following “modern” management ideas actually find their roots in the writings of Mary Parker Follett except:
a) employee ownership
b) profit sharing
c) organizations as systems
d) profit above all
d) profit above all
6. The term “Hawthorne Effect” was used to explain some of the important findings of the Hawthorne studies. What does the term mean?
a) Productivity is determined by efficiency.
b) Physical conditions of work are more important than social relationships.
c) People given special attention tend to perform as expected.
d) When jobs are designed scientifically performance improves.
c) People given special attention tend to perform as expected.
7. A _________ is a physiological or psychological deficiency that a person wants to satisfy.
a) Wish
b) Need
c) Expendable
d) dispensable
b) Need
8. Maslow’s ____________ principal states that people act to satisfy unfulfilled needs.
a) Deficit
b) Desire
c) Want
d) Care
a) Deficit
9. Maslow’s progression principle states that _________________.
a) all needs can be satisfied by everybody
b) needs can be satisfied simultaneously
c) activated needs are not important in human behavior
d) needs must be satisfied sequentially beginning with the lowest
d) needs must be satisfied sequentially beginning with the lowest
10. If Douglas McGregor heard a faculty member complaining that her students were lazy, didn’t really want to be in school, and were very irresponsible in their studies, he would be worried that she would end up creating ___________.
a) a Theory Y effect
b) a negative self-fulfilling prophecy
c) a highly structured classroom that treats students as “infants”
d) a situation where students were only interested in satisfying their social needs
c) a highly structured classroom that treats students as “infants”
11. Which of the following is NOT a part of Theory Y thinking?
a) employees like work
b) employees want responsibility
c) employees are capable of self control
d) employees are creative
e) all are part of theory Y thinking
e) all are part of theory Y thinking
12. Argyris would argue that high absenteeism and poor morale is likely due to:
a) poorly designed tasks interfering with efficiency
b) a poorly defined hierarchy of authority
c) a mismatch between management practices and normal adult behavior
d) a lack of control and enforcement
e) the absence of managerially-defined plans and directions
c) a mismatch between management practices and normal adult behavior
13. The study of how organizations produce goods and services is called
a) marketing operations
b) learning practice
c) contingency practice
d) operations management
d) operations management
14. A(n) ______________transforms resource inputs from the environment into product outputs.
a) administrative staff
b) closed system
c) open system
d) contingency plan
c) open system
15. The best management style is _________________.
a) Classical
b) Participative
c) Administrative
d) Theory Y
e) It depends on the situation.
e) It depends on the situation.
1. A management consultant who advises managers to carefully study jobs, train workers to do them
with efficient motions, and tie pay to job performance is using ideas from _________.
(a) scientific management
(b) contingency thinking
(c) Henri Fayol
(d) Theory Y
(a) scientific management
2. The Hawthorne studies were important in management history because they raised awareness about the influence of _________ on productivity.
(a) organization structures
(b) human factors
(c) physical work conditions
(d) pay and rewards
(b) human factors
3. If Douglas McGregor heard an instructor complaining that her students were lazy and irresponsible, he would say these assumptions _________.
(a) violated scientific management ideas
(b) focused too much on needs
(c) would create a negative self-fulfilling prophecy
(d) showed contingency thinking
(c) would create a negative self-fulfilling prophecy
4. If your local bank or credit union is a complex system, then the loan-processing department of the
bank would be considered a _________.
(a) subsystem
(b) closed system
(c) learning organization
(d) bureaucracy
(a) subsystem
5. When a manager puts Danté in a customer relations job because he has strong social needs and
gives Sherrill lots of daily praise because she has
strong ego needs, he is displaying _________.
(a) systems thinking
(b) Theory X
(c) contingency thinking
(d) administrative principles
(c) contingency thinking
6. Which of the following is one of the characteristics of Weber’s ideal bureaucracy?
(a) Few rules and procedures
(b) Impersonality
(c) Promotion by privilege not by merit
(d) Ambiguous hierarchy of authority
(b) Impersonality
7. Which principle states that a person should only receive orders from one boss in an organization?
(a) Scalar
(b) Contingency
(c) Hawthorne
(d) Unity of command
(d) Unity of command
8. One of the conclusions from the Hawthorne studies was that _________.
(a) motion studies could improve performance
(b) groups can sometimes restrict the productivity of their members
(c) people respond well to monetary incentives
(d) supervisors should avoid close relations with their subordinates
(b) groups can sometimes restrict the productivity of their members
9. If an organization was performing poorly, what would Henri Fayol most likely advise as a way to
improve things?
(a) teach managers to better plan, organize, lead, and control
(b) give workers better technology
(c) promote only the best workers to management
(d) find ways to improve total quality management
(a) teach managers to better plan, organize, lead, and control
10. When a worker is a responsible parent, makes car payments, and is active in local organizations, how might Argyris explain her poor work performance?
(a) She isn’t treated as an adult at work.
(b) Managers are using Theory Y assumptions.
(c) Organizational subsystems are inefficient.
(d) She doesn’t have the right work skills.
(a) She isn’t treated as an adult at work.
11. _________ management assumes people are complex, with widely varying needs.
(a) Classical
(b) Neoclassical
(c) Behavioral
(d) Modern
(c) Behavioral
12. The big interest today in _________ refers to the management practice of using mathematics and
computing power to examine “big data” for insights on business.
(a) continuous improvement
(b) Theory X
(c) analytics
(d) total quality management
(a) continuous improvement
13. The highest level in Maslow’s hierarchy is _________.
(a) safety
(b) esteem
(c) self-actualization
(d) physiological
(c) self-actualization
14. If an organization is considered an open system, work activities that turn resources into outputs are
part of the _________ process.
(a) input
(b) transformation
(c) output
(d) feedback
(b) transformation
15. When managers make decisions based on solid facts and information, this is known as
_________.
(a) continuous improvement
(b) evidence-based management
(c) Theory Y
(d) The scalar chain
(b) evidence-based management
1. _____________ are a set of standards for what is right and wrong in our conduct.
a) Laws
b) Policies
c) Ethics
d) Practices
c) Ethics
2. Personal beliefs such as honesty, caring and integrity are called ________.
a) Beliefs
b) Ideas
c) Ethics
d) Values
d) Values
3. Sam, a college student, wants to be president of a company someday but he also wants to raise a family and enjoy recreational activities. Sam is focused on his _________ values.
a) Terminal
b) Future
c) Instrumental
d) Long term
a) Terminal
4. Bill is a business unit manager at Good Products Inc. He has inadvertently come across a competitor’s business plan. Bill’s first thought is to keep it and use it against the competitor. However, he returns it without looking at it because he feels that long term it is not in his best interest. Bill has a ________ view of moral reasoning.
a) Moral rights
b) Religious
c) Utilitarian
d) Individualism
d) Individualism
5. _________ justice focuses on the fair application of policies and rules to all.
a) Interactional
b) Procedural
c) Fair
d) Distributive
b) Procedural
6. ____________ suggests that there is no one right way to behave and that ethics is dependent on the local cultural.
a) Procedural rights
b) Universalism
c) Ethical imperialism
d) Cultural relativism
d) Cultural relativism
7. Sally’s manager has asked her to do something that strongly violates her personal values. Sally is facing an
a) impossible situation
b) immoral judgment
c) instant crisis
d) ethical dilemma
d) ethical dilemma
8. The Preconventional stage in Kohlberg’s Three Levels of Moral Development is based on ___________ behavior.
a) social-centered
b) self-centered
c) non-centered
d) principal
b) self-centered
9. The obligation of an organization to its stakeholders as well as its own interest is called _________.
a) Altruism
b) social responsibility
c) Philanthropy
d) corporate interest
b) social responsibility
10. The ____________ view of corporate social responsibility is that management’s only responsibility is to maximize profits and shareholder value.
a) Socioeconomic
b) Legal
c) Classical
d) entrepreneurial
c) Classical
11. _____________ values are preferences about desired end states.
a) Ethical
b) Instrumental
c) Terminal
d) Righteous
e) none of the above
c) Terminal
12. Beliefs that good grades are obtained through good study habits or luck in getting the “right” test questions or sitting beside “smart” friends are all examples of:
a) good ethics
b) instrumental values
c) moral-rights
d) terminal values
e) distributive justice
b) instrumental values
13. If you argue for increasing the dues for your student organization in order to keep the club solvent, even though some of the members might not be able to afford the increase, you are taking this approach to moral reasoning:
a) individualism view
b) utilitarian view
c) justice view
d) moral-rights view
e) cultural relativism view
b) utilitarian view
14. Well thought out personal rules and strategies for ethical behavior are called ___________.
a) ethical dilemmas
b) ethical frameworks
c) ethical decisions
d) unethical behavior
b) ethical frameworks
15. The term _________ is used to describe an attempt by one culture to impose its values on another culture.
a) moral rights
b) moral absolutism
c) ethical imperialism
d) cultural relativism
d) cultural relativism
1. A business owner makes a decision to reduce a plant’s workforce by 10% to cut costs and be able to
save jobs for the other 90% of employees. This decision could be justified as ethical by using the
_________ approach to moral reasoning.
(a) utilitarian
(b) individualism
(c) justice
(d) moral rights
(a) utilitarian
2. If a manager fails to enforce a late-to-work policy for all workers—that is, by allowing some favored
employees to arrive late without penalties—this would be considered a violation of _________.
(a) human rights
(b) personal values
(c) distributive justice
(d) cultural relativism
(c) distributive justice
3. According to research on ethics in the workplace, _________ is/are often a major and frequent source of pressures that create ethical dilemmas for people in their jobs.
(a) Declining morals in society
(b) Long work hours
(c) Low pay
(d) Requests or demands from bosses
(d) Requests or demands from bosses
4. Someone who exposes the ethical misdeeds of others in an organization is usually called a/an _________.
(a) whistleblower
(b) ethics advocate
(c) ombudsman
(d) stakeholder
(a) whistleblower
5. Two employees are talking about ethics in their workplaces. Jay says that ethics training and codes
of ethical conduct are worthless; Maura says they are the only ways to ensure ethical behavior by all
employees. Who is right, and why?
(a) Jay—no one really cares about ethics at work.
(b) Maura—only the organization can influence ethical behavior.
(c) Neither Jay nor Maura—training and codes can encourage but never guarantee ethical behavior.
(d) Neither Jay nor Maura—only the threat of legal punishment will make people act ethically.
(c) Neither Jay nor Maura—training and codes can encourage but never guarantee ethical behavior.
6. Which ethical position has been criticized as a source of “ethical imperialism”?
(a) Individualism
(b) Absolutism
(c) Utilitarianism
(d) Relativism
(b) Absolutism
7. If a manager takes a lot of time explaining to a subordinate why he did not get a promotion
and sincerely listens to his concerns, this is an example of an attempt to act ethically according
to _________ justice.
(a) utilitarian
(b) commutative
(c) interactional
(d) universal
(c) interactional
8. At what Kohlberg calls the _________ level of moral development, an individual can be expected to act consistent with peers, meet obligations, and follow rules of social conduct.
(a) postconventional
(b) conventional
(c) preconventional
(d) nonconventional
(b) conventional
9. In respect to the link between bad management and ethical behavior, research shows that _________.
(a) managers who set unrealistic goals can cause unethical behavior
(b) most whistleblowers just want more pay
(c) only top managers really serve as ethics role models
(d) a good code of ethics makes up for any management deficiencies
(a) managers who set unrealistic goals can cause unethical behavior
10. A person’s desires for a comfortable life and family security represent _________ values, whereas his or her desires to be honest and hard working represent _________ values.
(a) terminal; instrumental
(b) instrumental; terminal
(c) universal; individual
(d) individual; universal
(a) terminal; instrumental
11. A proponent of the classical view of corporate social responsibility would most likely agree with which of these statements?
(a) Social responsibility improves the public image of business.
(b) The primary responsibility of business is to maximize profits.
(c) By acting responsibly, businesses avoid government regulation.
(d) Businesses should do good while they are doing business.
(b) The primary responsibility of business is to maximize profits.
12. The triple bottom line of organizational performance would include measures of financial, social,
and _________ performance.
(a) philanthropic
(b) environmental
(c) legal
(d) economic
(b) environmental
13. An amoral manager _________.
(a) always acts in consideration of ethical issues
(b) chooses to behave unethically
(c) makes ethics a personal goal
(d) acts unethically but does so unintentionally
(d) acts unethically but does so unintentionally
14. In a social responsibility audit of a business firm, positive behaviors meeting which of the following
criteria would measure the highest level of commitment to socially responsible practices?
(a) Legal—obeying the law
(b) Economic—earning a profit
(c) Discretionary—contributing to community
(d) Ethical—doing what is right
(c) Discretionary—contributing to community
15. What organizational stakeholder would most likely get top priority attention if a corporate board is
having a serious discussion regarding how the firm could fulfill its obligations in respect to sustainable
development?
(a) Owners or investors
(b) Customers
(c) Suppliers
(d) Future generations
(d) Future generations
1. The ability to gather and use information to solve problems is called ______________.
a) problem solving
b) information competency
c) information management
d) inquiring
b) information competency
2. A systematic thinker will:
a) try to stay very flexible in their thinking.
b) generally be spontaneous.
c) be analytical in their approach.
d) typically be creative in their methods.
e) rely on “hunches” for direction.
c) be analytical in their approach.
3. According to Sullenberger, the four cognitive styles of decision making are sensation thinkers, intuitive thinkers, sensation feelers and
a) risk takers.
b) intuitive feelers.
c) sensation takers.
d) intuitive takers.
b) intuitive feelers.
4. The most significant factor that determines whether a decision is a programmed or nonprogrammed decision is:
a) the length of time available
b) the number of people involved in the outcome
c) whether the problem is new or unusual
d) the amount of money involved in the solution
c) whether the problem is new or unusual
5. If the issue is a drop in the company’s sales, the decision making mistake to be carefully avoided is:
a) keeping your focus broad enough.
b) focusing on the right problem.
c) keeping your focus narrow enough.
d) being sure you are looking at the problem and not a symptom.
d) being sure you are looking at the problem and not a symptom.
6. Cost benefit analysis is used in what step in the decision making process?
a) evaluate results
b) defining the problem
c) implementing the decision
d) generating alternative courses of action
d) generating alternative courses of action
7. Limits to human information processing capabilities are called _________ limitations.
a) intuitive
b) cognitive
c) behavioral
d) financial
b) cognitive
8. The behavioral decision model attempts to provide a __________ decision.
a) classical
b) satisficing
c) programmed
d) optimizing
b) satisficing
9. What is the fourth step in the decision making process?
a) evaluate results
b) implement the decision
c) conduct cost benefit analysis
d) generate alternatives
b) implement the decision
10. One factor that should be considered in all steps of the decision making process is
a) escalating commitment
b) alternative analysis
c) ethical reasoning
d) financial impact
c) ethical reasoning
11. A group-based decision would be called for in all of the following cases except if:
a) the problem is complex, and you need a lot of information.
b) the problem calls for a creative solution.
c) the problem solution needs the support of a lot of people in order to work.
d) the problem needs a quick solution.
d) the problem needs a quick solution.
12. The _________heuristic occurs when people use a stereotype to assess the likely occurrence of an event.
a) escalating commitment
b) representative
c) anchoring and adjustment
d) availability
b) representative
13. The ________ heuristic occurs when people adjust a previously existing value to make a decision.
a) escalating commitment
b) representative
c) anchoring and adjustment
d) availability
c) anchoring and adjustment
14. Continuing on a course of action even though it is not working is called a(n)
a) escalating commitment
b) framing error
c) anchoring heuristic
d) availability heuristic
a) escalating commitment
15. Attending only to information that confirms a decision already made is called a/an
a) escalating commitment
b) framing error
c) anchoring heuristic
d) confirmation error
d) confirmation error
1. A manager who is reactive and works hard to address problems after they occur is described as a
_________.
(a) problem seeker
(b) problem solver
(c) rational thinker
(d) strategic opportunist
(b) problem solver
2. A problem is a discrepancy between a/an _________ situation and a desired situation.
(a) unexpected
(b) risk
(c) actual
(d) uncertain
(c) actual
3. If a manager approaches problems in a rational and analytical way, trying to solve them in step-by-step fashion, he or she is well described as a/an _________.
(a) systematic thinker
(b) intuitive thinker
(c) problem seeker
(d) behavioral decision maker
(a) systematic thinker
4. The first step in the decision-making process is to _________.
(a) generate a list of alternatives
(b) assess the costs and benefits of each alternative
(c) identify and define the problem
(d) perform the ethics double-check
(c) identify and define the problem
5. When the members of a special task force are asked to develop a proposal for hitting very aggressive targets for the international sales of a new product, this problem most likely requires a _________ decision.
(a) routine
(b) programmed
(c) crisis
(d) nonprogrammed
(d) nonprogrammed
6. Costs, benefits, timeliness, and _________ are among the recommended criteria for evaluating
alternative courses of action in the decisionmaking process.
(a) ethical soundness
(b) past history
(c) availability
(d) simplicity
(a) ethical soundness
7. The _________ decision model views managers as making optimizing decisions, whereas the _________ decision model views them as making satisficing decisions.
(a) behavioral; judgmental heuristics
(b) classical; behavioral
(c) judgmental heuristics; ethical
(d) crisis; routine
(b) classical; behavioral
8. One reason why certainty is the most favorable environment for problem solving is because the problems can be addressed by using _________ decisions.
(a) satisficing
(b) optimizing
(c) programmed
(d) intuitive
(c) programmed
9. A common mistake made by managers facing crisis situations is _________.
(a) trying to get too much information before responding
(b) relying too much on group decision making
(c) isolating themselves to make crisis decisions alone
(d) forgetting to use their crisis management plan
(c) isolating themselves to make crisis decisions alone
10. In which decision environment does a manager deal with probabilities regarding possible courses of
action and their consequences?
(a) Risk
(b) Certainty
(c) Uncertainty
(d) Optimal
(a) Risk
11. A manager who decides against hiring a new employee that just graduated from Downstate University because the last person hired from there turned out to be a low performer is falling prey to
_________ error.
(a) availability
(b) adjustment
(c) anchoring
(d) representativeness
(a) availability
12. Which decision-making error is most associated with the old adage: “If you don’t succeed, try and try
again”?
(a) Satisficing
(b) Escalating commitment
(c) Confirmation
(d) Too late to fail
(b) Escalating commitment
13. You go to your boss and ask for a pay raise. She says: “Well, let’s take a look first at what you are making now.” The risk you face in this situation is that your boss’s decision will be biased because of
_________.
(a) a framing error
(b) escalating commitment
(c) anchoring and adjustment
(d) strategic opportunism
(c) anchoring and adjustment
14. Personal creativity drivers include creativity skills, task expertise, and _________.
(a) strategic opportunism
(b) management support
(c) organizational culture
(d) task motivation
(d) task motivation
15. The last step in the decision-making process is to _________.
(a) choose a preferred alternative
(b) evaluate results
(c) find and define the problem
(d) generate alternatives
(b) evaluate results
1. The management function of planning involves:
a) allocating and arranging resources
b) guiding the efforts of human resources
c) setting goals and objectives
d) monitoring task accomplishments
c) setting goals and objectives
2. When setting goals, step one of the planning process should include:
a) getting the mundane, trivial things planned first.
b) focusing on easy goals to build momentum.
c) keeping your eye on the past in order to know what you have accomplished.
d) developing performance targets that require you to work hard and stretch to reach.
d) developing performance targets that require you to work hard and stretch to reach.
3. A process by which one establishes lower level objectives in order to meet higher level objectives is called _____________.
a) objective analysis
b) strategic analysis
c) a hierarchy of objectives
d) a chain of command
c) a hierarchy of objectives
4. All of the following will improve your time management except:
a) saying “no” when a friend asks you to go to a movie on a night you planned to study.
b) handling all the details of a team project to make sure they are done right.
c) scheduling your school projects for the quarter at the beginning of the term.
d) screening your calls and not checking email and text messages constantly.
b) handling all the details of a team project to make sure they are done right.
5. A statement that clarifies the purpose of the organization and expresses what it hopes to be in the future is called a ___________.
a) operational plan
b) vision statement
c) strategic plan
d) tactical plan
b) vision statement
6. Most people are comfortable with a time horizon of:
a) one week
b) three months
c) one year
d) five years
b) three months
7. A rule describing exactly what process to follow in a specific situation is called a ________.
a) policy
b) project plan
c) long term plan
d) procedure
d) procedure
8. All students are expected to follow the guidelines regarding sexual harassment is an example of a
a) Policy
b) Rule
c) Procedure
d) all of the above
a) Policy
9. A budget that allocates resources as if each item were brand new is called a _______ budget.
a) Strategic
b) New
c) Operating
d) zero based
d) zero based
10. Joe has just been told that he has one million dollars to spend next year. Joe has been asked to do a _________ budget.
a) Operating
b) flexible
c) fixed
d) zero-based
c) fixed
11. The process of developing alternative plans in anticipation of having problems with implementing the existing plan is called _____________.
a) contingency planning
b) Forecasting
c) scenario planning
d) budgeting
a) contingency planning
12. Identifying possible future situations and plans for dealing with them is called ____________.
a) contingency planning
b) Forecasting
c) scenario planning
d) budgeting
c) scenario planning
13. The process of using external comparisons as a means of determining how your company is doing is called __________.
a) Forecasting
b) Benchmarking
c) Allocating
d) justifying
b) Benchmarking
14. A common phrase used to define the things that world class companies do better than others is ______________.
a) best practices
b) international comparisons
c) operating procedures
d) forecasting
a) best practices
15. One of the common dangers in using staff planners is a lack of ________ on the part of those who have to implement the plan.
a) creativity
b) ability
c) resources
d) commitment
d) commitment
1. Planning is best described as the process of _________ and _________.
(a) developing premises about the future; evaluating them
(b) measuring results; taking corrective action
(c) measuring past performance; targeting future performance
(d) setting objectives; deciding how to accomplish them
(d) setting objectives; deciding how to accomplish them
2. The benefits of planning often include _________.
(a) improved focus
(b) less need for controlling
(c) more accurate forecasts
(d) guaranteed success
(a) improved focus
3. The first step in the planning process is to _________.
(a) decide how to get where you want to go
(b) define your objectives
(c) identify possible future conditions or scenarios
(d) act quickly to take advantage of opportunities
(b) define your objectives
4. As a first step to help implement her firm’s strategic plans, the CEO of a business firm would
want marketing, manufacturing, and finance executives to develop clear and appropriate _________.
(a) procedures
(b) operational plans
(c) zero-based budgets
(d) forecasts
(b) operational plans
5. _________ planning identifies alternative courses of action that can be quickly taken if problems occur with the original plan.
(a) Benchmark
(b) Participatory
(c) Staff
(d) Contingency
(d) Contingency
6. Having a clear sexual harassment policy won’t help an organization much unless it is accompanied by
clear _________ that let all members know for sure how it will be implemented.
(a) contingencies
(b) benchmarks
(c) procedures
(d) budgets
(c) procedures
7. When a manager is asked to justify a new budget proposal on the basis of projected activities rather
than as an incremental adjustment to the prior year’s budget, this is an example of _________.
(a) zero-based budgeting
(b) strategic planning
(c) operational planning
(d) contingency planning
(a) zero-based budgeting
8. One of the expected benefits of participatory planning is _________.
(a) faster planning
(b) less need for forecasting
(c) greater attention to contingencies
(d) more commitment to implementation
(d) more commitment to implementation
9. When managers use benchmarking in the planning process, they usually try to _________.
(a) set up flexible budgets
(b) identify best practices used by others
(c) find the most accurate forecasts that are available
(d) use expert staff planners to set objectives
(b) identify best practices used by others
10. In a hierarchy of objectives, plans at lower levels are supposed to act as _________ for accomplishing higher-level plans.
(a) means
(b) ends
(c) scenarios
(d) benchmarks
(a) means
11. If a team leader wants to tap the advantages of participatory planning, what type of decision-
making method should he or she use?
(a) Authority
(b) Quantitative
(c) Group
(d) Zero-based
(c) Group
12. From a time management perspective, which manager is likely to be in best control of his or her
time? One who _________.
(a) tries to never say “no” to requests from others
(b) works on the most important things first
(c) immediately responds to instant messages
(d) always has “an open office door”
(b) works on the most important things first
13. A marketing plan in a business firm would most likely deal with _________.
(a) production methods and technologies
(b) money and capital investments
(c) facilities and workforce recruiting
(d) sales and product distribution
(d) sales and product distribution
14. The best planning goals or objectives would have which of the following characteristics?
(a) Easy enough so that no one fails to reach them
(b) Realistic and possible to achieve, while still challenging
(c) Open ended, with no clear end point identified
(d) No set timetable or due dates
(b) Realistic and possible to achieve, while still challenging
15. The planning process isn’t complete until _________.
(a) future conditions have been identified
(b) stretch goals have been set
(c) plans are implemented and results evaluated
(d) budgets commit resources to plans
(c) plans are implemented and results evaluated
1. A process that identifies lessons learned through a completed project, task force assignment or special operation is called a(an)
a) performance assignment
b) planning session
c) planning function
d) after-action review
d) after-action review
2. The first step in the control process is
a) Forecasting
b) establishing objectives and standards
c) measuring actual performance
d) taking necessary action
b) establishing objectives and standards
3. The most important step in the control process is
a) Forecasting
b) establishing objectives and standards
c) measuring actual performance
d) taking necessary action
b) establishing objectives and standards
4. In order for the second step in the control process to be effective:
a) you must be able to conduct accurate measurements.
b) you must be timely in the measuring process.
c) the standards used must be agreed upon by the relevant parties.
d) the process must be able to spot differences between actual output and the standards.
e) all of the above
e) all of the above
5. The quality control manager at Athens, Inc. requires zero defects on all parts received from its suppliers. This is an example of a(n) _____________.
a) output standard
b) feedback control
c) input standard
d) historical standard
c) input standard
6. Management by _____________ focuses on substantial differences between actual and desired performance.
a) design
b) principal
c) direction
d) exception
d) exception
7. ________ control ensures that the final results meet desired standards.
a) Feedforward
b) Feedback
c) Concurrent
d) Feedmore
b) Feedback
8. When a manager stops by before a shift to see if everything is ready to go, this is an example of which control type?
a) steering control
b) feedback control
c) feedforward control
d) concurrent control
e) post-action control
c) feedforward control
9. __________ control occurs through direct supervision or administrative systems.
a) Internal
b) External
c) Bureaucratic
d) Reward
a) Internal
10. __________ control influences behavior through norms and expectations set by the organization’s culture.
a) Market
b) External
c) Bureaucratic
d) Clan
d) Clan
11. _____________ is / are a process of joint objective setting and reviews between a manager and a direct report.
a) Management by Directives
b) Management by Objectives
c) Performance Appraisals
d) Salary Reviews
b) Management by Objectives
12. The two most common types of objectives in the Management by Objectives process are work related improvement and ____________ objectives.
a) Strategic
b) Financial
c) personal development
d) specific action
c) personal development
13. A company that has verified meeting international quality standards is said to be________________.
a) Geneva approved
b) FDA approved
c) ISO certified
d) TQM certified
c) ISO certified
14. ___________ is (are) used to graphically display trends so that exceptions to quality standards are met.
a) Instruction manuals
b) Equations
c) Control charts
d) just in time data
c) Control charts
15. The process that has production materials arriving from suppliers as they are required is called ___________ scheduling.
a) on time
b) almost on time
c) Strategic
d) just in time
d) just in time
1. After objectives and standards are set, what step comes next in the control process?
(a) Measure results.
(b) Take corrective action.
(c) Compare results with objectives.
(d) Modify standards to fit circumstances.
(a) Measure results.
2. When a soccer coach tells her players at the end of a losing game, “You did well in staying with our game plan,” she is using a/an ____________ as a measure of performance.
(a) input standard
(b) output standard
(c) historical comparison
(d) relative comparison
(a) input standard
3. When an automobile manufacturer is careful to purchase only the highest-quality components for
use in production, this is an example of an attempt to ensure high performance through ____________
control.
(a) concurrent
(b) statistical
(c) inventory
(d) feedforward
(d) feedforward
4. Management by exception means ____________.
(a) managing only when necessary
(b) focusing attention where the need for action is greatest
(c) the same thing as concurrent control
(d) the same thing as just-in-time delivery
(b) focusing attention where the need for action is greatest
5. A total quality management program is most likely to be associated with ____________.
(a) EOQ
(b) continuous improvement
(c) return on equity
(d) breakeven analysis
(b) continuous improvement
6. The ____________ chart graphically displays the scheduling of tasks required to complete the project.
(a) exception
(b) Taylor
(c) Gantt
(d) after-action
(c) Gantt
7. When MBO is done right, who does the review of a team member’s performance accomplishments?
(a) The team member
(b) The team leader
(c) Both the team member and team leader
(d) The team leader, the team member, and a lawyer
(c) Both the team member and team leader
8. A good performance objective is written in such a way that it ____________.
(a) has a flexible timetable
(b) is general and not too specific
(c) is impossible to accomplish
(d) can be easily measured
(d) can be easily measured
9. A team leader is not living up to the concept of MBO if he or she ____________.
(a) sets performance objectives for individual team members
(b) stays in touch and tries to support team members in their work
(c) jointly reviews performance results with each team member
(d) keeps a written record of performance objectives for team members
(a) sets performance objectives for individual team members
10. If an organization’s top management establishes a target of increasing new hires of minority and
female candidates by 15% in the next six months, this is an example of a/an ____________ standard
for control purposes.
(a) input
(b) output
(c) clan
(d) market
(b) output
11. When a supervisor works alongside an employee and corrects him or her immediately when a mistake is made, this is an example of ____________ control.
(a) feedforward
(b) external
(c) concurrent
(d) preliminary
(c) concurrent
12. When one team member advises another team member that “your behavior is crossing the line in
terms of our expectations for workplace civility,” she is exercising a form of ________ control over the
other person’s inappropriate behaviors.
(a) clan
(b) market
(c) internal
(d) preliminary
(a) clan
13. In CPM/PERT, “CPM” stands for ____________.
(a) critical path method
(b) control planning management
(c) control plan map
(d) current planning matrix
(a) critical path method
14. In a CPM/PERT analysis, the focus is on ____________ and the event ____________ that
link them together with the finished project.
(a) costs; budgets
(b) activities; sequences
(c) timetables; budgets
(d) goals; costs
(b) activities; sequences
15. Among the financial ratios often used for control purposes, Current Assets/Current Liabilities is
known as the ____________.
(a) debt ratio
(b) net margin
(c) current ratio
(d) inventory turnover ratio
(c) current ratio
1. During the time of the great depression, Herbert Hoover promised the voters “a chicken in every pot and a car in every garage.” This could be considered a statement of __________.
a) strategic intent
b) strategy
c) competitive advantage
d) global positioning
a) strategic intent
2. The levels of strategy used in organizations are corporate, business and ________.
a) Personal
b) Competitive
c) Functional
d) legal
d) legal
3. An example of a strategic question at the corporate level is:
a) What should our next product be?
b) How will we price our newest product?
c) Should we set up more sales offices?
d) In what industries and markets should we compete?
d) In what industries and markets should we compete?
4. When a company expands by acquiring suppliers or distributors, it is called growth through ________.
a) Diversification
b) vertical integration
c) Expansion
d) globalization
b) vertical integration
5. Which of the following is not a retrenchment strategy?
a) Diversification
b) Liquidation
c) Restructuring
d) divestiture
a) Diversification
6. A __________ strategy tries to operate without a strong national identity and seeks a balance between the efficiency of worldwide operations and responsiveness to local cultures.
a) Multidomestic
b) Globalization
c) Diversification
d) transnational
d) transnational
7. Companies that use the internet to market their products and gain competitive advantage are employing a(n) ___________ strategy.
a) Communication
b) Computer
c) e-business
d) electronic
c) e-business
8. A _________ strategy uses information technology and the internet to link organizations vertically in supply chains.
a) B2C
b) B2S
c) B2G
d) B2B
d) B2B
9. The process of formulating and implementing strategies to accomplish long term goals and to maintain a competitive advantage is called __________.
a) strategic controlling
b) strategic management
c) Globalization
d) vertical integration
b) strategic management
10. Which of the following is not a part of a SWOT analysis?
a) strengths
b) standards
c) weaknesses
d) opportunities
b) standards
11. Porter suggests that industry attractiveness is a function of five forces, including:
a) profitability, market share, workforce quality, innovativeness, social responsibility
b) cost efficiency, product quality, service quality, workforce quality, innovativeness
c) differentiation, cost leadership, focused differentiation, focused cost, integration
d) rivalry, new entrant threat, supplier power, buyer power, threat of substitutes
d) rivalry, new entrant threat, supplier power, buyer power, threat of substitutes
12. A strategy that focuses on offering products that are unique with respect to competitor’s products is called a _____________ strategy.
a) integrated
b) cost leadership
c) differentiation
d) diversification
c) differentiation
13. The recommendation of the BCG matrix on question marks is retrenchment or ________.
a) invest freely
b) invest for stability
c) invest in a targeted manner
d) divest
c) invest in a targeted manner
14. What is the best strategy for products that the Boston Consulting Group would identify as dogs?
a) high growth
b) retrenchment
c) low growth
d) no growth
b) retrenchment
15. A strategic leader has to:
a) avoid communication in order to minimize distractions.
b) dictate direction.
c) strive for ambiguity in order to avoid divisions in the group.
d) create a sense of urgency.
d) create a sense of urgency.
1. Which is the best question to ask to start the strategic management process?
(a) “What is our mission?”
(b) “How well are we currently doing?”
(c) “How can we get where we want to be?”
(d) “Why aren’t we doing better?”
(a) “What is our mission?”
2. The ability of a business firm to consistently outperform its rivals is called ___________.
(a) vertical integration
(b) competitive advantage
(c) strategic intent
(d) core competency
(b) competitive advantage
3. General Electric is a complex conglomerate that owns many firms operating in very diff erent industries. The strategies pursued for each individual firm within GE umbrella would best be called
__________level strategies.
(a) corporate
(b) business
(c) functional
(d) transnational
(b) business
4. An organization that is downsizing by cutting staff to reduce costs can be described as pursuing a
_________strategy.
(a) liquidation
(b) divestiture
(c) retrenchment
(d) stability
(c) retrenchment
5. When you buy music downloads online, the firm selling them to you is engaging in which type of
e-business strategy?
(a) B2C
(b) B2B
(c) infomediary
(d) crowdsourcing
(a) B2C
6. The alliances that link firms in supply chain management relationships are examples of how
businesses can use ____________strategies.
(a) B2C
(b) growth
(c) cooperation
(d) concentration
(c) cooperation
7. Among the global strategies that international businesses might pursue, the _________strategy
most directly tries to customize products to fit local needs and cultures in diff erent countries.
(a) concentration
(b) globalization
(c) transnational
(d) multidomestic
(d) multidomestic
8. If Google’s top management were to announce that the firm was going to buy Federal Express, this
would be a strategy of growth by ____________.
(a) diversification
(b) concentration
(c) horizontal integration
(d) vertical integration
(a) diversification
9. ___________are special strengths that an organization has or does exceptionally well and that help it outperform competitors.
(a) Core competencies
(b) Strategies
(c) Alliances
(d) Operating objectives
(a) Core competencies
10. A ________in the BCG Matrix would have a high market share in a low-growth market.
(a) dog
(b) cash cow
(c) question mark
(d) star
(b) cash cow
11. In Porter’s five forces model, which of the following conditions is most favorable from the standpoint of industry attractiveness?
(a) Many competitive rivals
(b) Many substitute products
(c) Low bargaining power of suppliers
(d) Few barriers to entry
(c) Low bargaining power of suppliers
12. The two questions Porter asks to identify the correct competitive strategy for a business or
product line are: 1—What is the market scope? 2—What is the __________?
(a) market share
(b) source of competitive advantage
(c) core competency
(d) industry attractiveness
(b) source of competitive advantage
13. When Coke and Pepsi spend millions on ads trying to convince customers that their products are
unique, they are pursuing what Porter calls a ______________strategy.
(a) transnational
(b) concentration
(c) diversification
(d) differentiation
(d) differentiation
14. A firm that wants to compete with rivals by selling a very-low-priced product in a broad market would need to successfully implement a ___________ strategy.
(a) retrenchment
(b) differentiation
(c) cost leadership
(d) diversification
(c) cost leadership
15. In addition to focusing on strategy implementation and strategic control, the responsibility for strategic leadership of an organization involves success with
_______________.
(a) motivating a disposable workforce
(b) the process of continuous change
(c) Chapter 11 bankruptcy
(d) growth by liquidation
(b) the process of continuous change
1. ___________ is the process of arranging people and resources to work toward a common goal.
a) Controlling
b) Leading
c) Planning
d) Organizing
e) Disciplining
d) Organizing
2. Organizational charts provide:
a) a clear division of work
b) lines of supervisory relationships
c) recognition of the spans of control
d) identification of the major subunits in the organization
e) all of the above
e) all of the above
3. Informally defined organizations made up of unofficial employee working relationships are often referred to as ____________ organizations.
a) strategic
b) vertical
c) shadow
d) formal
c) shadow
4. The departments of Marketing, Engineering, and Manufacturing are examples of _________organizations.
a) matrix
b) cross functional
c) informal
d) functional
d) functional
5. Good Bank Inc. has many branches. They are all managed by branch managers who have loans, investments, operations and trust managers reporting directly to them. This is an example of a _________ structure.
a) dysfunctional
b) matrix
c) network
d) product
d) product
6. The lack of communications between functional departments in a functional structure often results in which of the following?
a) negative completion can occur between the functional units
b) a lack of expertise in solving technical problems
c) no clear career paths for employees
d) a lack of training within the departments
a) negative completion can occur between the functional units
7. When John, president of Global Products, decided to form a new division for marketing into China, he was implementing a __________structure.
a) product
b) geographical
c) team
d) service
b) geographical
8. Which of the following is NOT a form of division structure?
a) product
b) customer
c) supplier
d) process
c) supplier
9. Project managers are a very important part of a __________ structure.
a) virtual
b) functional
c) matrix
d) team
c) matrix
10. The major difference between a matrix structure and a team structure is that a team structure:
a) has no functional management
b) has no project management
c) is always temporary
d) has project management
b) has no project management
11. Network structures are valued because they can offer:
a) an easy switch to this structure from any other type
b) the simplicity of operating these structures
c) the control they give over each piece of the system
d) the redundancy such a system provides
e) the cost and flexibility gains these systems provide
e) the cost and flexibility gains these systems provide
12. A ____________ organization would have a ___________ span of control.
a) tall / wide
b) flat / narrow
c) flat / wide
d) narrow / wide
c) flat / wide
13. A classical management principal regarding delegation is that authority should _____________ responsibility.
a) equal
b) exceed
c) diminish
d) none of the above
a) equal
14. ___________ splits one job between two people.
a) Job design
b) Job enrichment
c) Job sharing
d) Teamwork
c) Job sharing
1. The main purpose of organizing as a management function is to _________.
(a) make sure that results match plans
(b) arrange people and resources to accomplish work
(c) create enthusiasm for the needed work
(d) link strategies with operational plans
(b) arrange people and resources to accomplish work
2. An organization chart is most useful for _________.
(a) mapping informal structures
(b) eliminating functional chimneys
(c) showing designated supervisory relationships
(d) describing the shadow organization
(c) showing designated supervisory relationships
3. Rumors and resistance to change are potential disadvantages often associated with _________.
(a) virtual organizations
(b) informal structures
(c) functional chimneys
(d) cross-functional teams
(b) informal structures
4. When an organization chart shows that vice presidents of marketing, finance, manufacturing,
and purchasing all report to the president, top management is using a _________ structure.
(a) functional
(b) matrix
(c) network
(d) product
(a) functional
5. The “two-boss” system of reporting relationships is both a potential source of problems and one of the key aspects of _________ structures.
(a) functional
(b) matrix
(c) network
(d) product
(b) matrix
6. A manufacturing business with a functional structure has recently acquired two other businesses with very different product lines. The president of the combined company might consider using a _________ structure to allow a better focus on the unique needs of each product area.
(a) virtual
(b) team
(c) divisional
(d) network
(c) divisional
7. An organization using a _________ structure should expect that more problems will be solved at
lower levels and that top managers will have more time free to engage in strategic thinking.
(a) virtual
(b) matrix
(c) functional
(d) product
(b) matrix
8. The functional chimneys problem occurs when people in different functions _________.
(a) fail to communicate with one another
(b) try to help each other work with customers
(c) spend too much time coordinating decisions
(d) focus on products rather than functions
(a) fail to communicate with one another
9. An organization that employs just a few “core” or essential full-time employees and outsources a lot of the remaining work shows signs of using a _________ structure.
(a) functional
(b) divisional
(c) network
(d) team
(c) network
10. A “tall” organization will likely have _________ spans of control than a “flat” organization with the
same number of members.
(a) wider
(b) narrower
(c) more ambiguous
(d) less centralized
(b) narrower
11. If a student in one of your course groups volunteers to gather information for a case analysis and the other members tell him to go ahead and choose the information sources he believes are most important, the group is giving this student _________ to fulfill the agreed-upon task.
(a) responsibility
(b) accountability
(c) authority
(d) values
(c) authority
12. The bureaucratic organization described by Max Weber is similar to the _________ organization described by Burns and Stalker.
(a) adaptive
(b) mechanistic
(c) organic
(d) horizontal
(b) mechanistic
13. Which organization design would likely be a good fit for a dynamic and changing external environment?
(a) Vertical
(b) Centralized
(c) Organic
(d) Mechanistic
(c) Organic
14. Workers following a compressed workweek schedule often work 40 hours in _________ days.
(a) 3 ½
(b) 4
(c) 5
(d) a flexible schedule of
(b) 4
15. Which alternative work schedule is identified by Working Mother magazine as being used by all
companies on its list of “100 Best Employers for Working Moms”?
(a) Telecommuting
(b) Job sharing
(c) Flexible hours
(d) Part-time
(c) Flexible hours
1. Organizational culture can be thought of as:
a) the “way we do things around here”
b) a system of shared beliefs and values
c) the personality of the organization
d) a guide to acceptable behavior in the organization
e) all of the above
e) all of the above
2. Achievement award programs are ________ that contribute to a company’s core values.
a) stories
b) heroes
c) rites and rituals
d) symbols
c) rites and rituals
3. A deeper level of organizational culture that consists of the beliefs and values shared by the organizations members is called a ____________ culture.
a) bureaucratic
b) organic
c) core
d) mechanistic
c) core
4. The process of turning ideas into products/methods that can increase profits is called:
a) creativity
b) organizational development
c) business model innovation
d) transformational change
e) incremental change
c) business model innovation
5. The four steps in commercializing innovation are idea generation, initial experimentation, ____________ and final application.
a) product introduction
b) process improvement
c) process development
d) feasibility experimentation
d) feasibility experimentation
6. A person who is responsible for providing new insights and discoveries to the company is called a(n) ______________.
a) idea generator
b) information gatekeeper
c) product champion
d) project manager
a) idea generator
7. Special creative units set free from the normal organizational structure for the purpose of innovation are called ______________.
a) divisions
b) skunkworks
c) research labs
d) business units
b) skunkworks
8. A person who serves as an innovation information link between both inside and outside sources is called a(n) ______________.
a) idea generator
b) information gatekeeper
c) product champion
d) project manager
b) information gatekeeper
9. A person who is responsible for keeping innovation goals and values visible in the company is called a(n) ______________.
a) information gatekeeper
b) product champion
c) project manager
d) innovation leader
d) innovation leader
10. Sam spends a lot of time attending new product development meetings and reviewing schedules. Sam’s role is that of a(n) _____________.
a) idea generator
b) information gatekeeper
c) product champion
d) project manager
d) project manager
11. In order to lead transformational change, the leader must:
a) establish a sense of urgency
b) empower others
c) create and communicate a change vision
d) celebrate short term wins
e) all of the above
e) all of the above
12. You know that you are likely working with a “status quo” manager when they exhibit any of the following traits except:
a) appearing threatened by change
b) being bothered by uncertainty
c) preferring predictability
d) supporting the status quo
e) typically making things happen
e) typically making things happen
13. According to Lewin, the correct order in the steps of change is:
a) freezing, refreezing, changing
b) unfreezing, changing, refreezing
c) refreezing, changing, unfreezing
d) changing, unfreezing, refreezing
b) unfreezing, changing, refreezing
14. The “shared power” change strategy is most closely linked to the ____________ power base:
a) legitimate power
b) reward power
c) coercive power
d) expert power
e) referent power
e) referent power
15. All of the following could be sources of resistance to change except:
a) past successful change
b) fear of the unknown
c) loss of control
d) loss of face
a) past successful change
1. Stories told about an organization’s past accomplishments and heroes such as company founders
are all part of what is called the __________ culture.
(a) observable
(b) underground
(c) functional
(d) core
(a) observable
2. Planned and spontaneous ceremonies and celebrations of work achievements illustrate how the use of __________ helps build strong corporate cultures.
(a) rewards
(b) structures
(c) rites and rituals
(d) core values
(c) rites and rituals
3. An organization with a strong culture is most likely to have a __________.
(a) tight, bureaucratic structure
(b) loose, flexible design
(c) small staff size
(d) clearly communicated mission
(d) clearly communicated mission
4. Honesty, social responsibility, and customer service are examples of __________ that can become
foundations for an organization’s core culture.
(a) rites and rituals
(b) values
(c) subsystems
(d) ideas
(b) values
5. Product innovations create new goods or services for customers, whereas __________ innovations create new ways of doing things in the organization.
(a) content
(b) process
(c) quality
(d) task
(b) process
6. The Kindle e-reader by Amazon and the iPad by Apple are examples of __________ innovations.
(a) business model
(b) social
(c) product
(d) process
(c) product
7. Movie downloads by subscription (Netflix) and advertising revenues from Internet searches (Google) are examples of __________ innovations.
(a) business model
(b) social
(c) product
(d) process
(a) business model
8. Green innovation is most associated with the concept of __________.
(a) observable culture
(b) core culture
(c) sustainability
(d) skunkworks
(c) sustainability
9. The innovation process isn’t really successful in an organization until a new idea is __________.
(a) tested as a prototype
(b) proven to be financially feasible
(c) put into practice
(d) discovered or invented
(c) put into practice
10. The basic purpose of a starting a skunkworks is to __________.
(a) add more bureaucratic structure to the innovation process
(b) provide special space for people to work together and achieve innovation
(c) make sure that any innovation occurs according to preset plans
(d) give people free time in their jobs to be personally creative
(b) provide special space for people to work together and achieve innovation
11. __________ change results in a major change of direction for an organization, whereas __________
change makes small adjustments to current ways of doing things.
(a) Frame breaking; radical
(b) Frame bending; incremental
(c) Transformational; frame breaking
(d) Transformational; incremental
(d) Transformational; incremental
12. A manager using a force-coercion strategy is most likely relying on the power of __________ to bring
about planned change.
(a) expertise
(b) reference
(c) legitimacy
(d) information
(c) legitimacy
13. The most participative of the planned change strategies is __________.
(a) negotiation and agreement
(b) rational persuasion
(c) shared power
(d) education and communication
(c) shared power
14. The responses most likely to be associated with use of a force-coercion change strategy are best
described as __________.
(a) internalized commitment
(b) temporary compliance
(c) passive cooptation
(d) active resistance
(b) temporary compliance
15. When a change leader tries to deal with resistance by trying to covertly influence others, offering only selective information and/or structuring events in favor of the desired change, this is an example of
__________.
(a) rational persuasion
(b) manipulation and cooptation
(c) negotiation
(d) facilitation
(b) manipulation and cooptation
14. The best planning goals or objectives would have which of the following characteristics?
(a) Easy enough so that no one fails to reach them
(b) Realistic and possible to achieve, while still challenging
(c) Open ended, with no clear end point identified
(d) No set timetable or due dates
(b) Realistic and possible to achieve, while still challenging

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