BAM315 all 4 units exams

| June 3, 2016

1) Which of the following types of managers is responsible for making organization-wide

decisions and establishing the plans and goals that affect the entire organization?

a. research managers

b. top managers

c. first-line managers

d. production managers

2) Which of the following is an example of an efficient manufacturing technique?

a. decreasing product output

b. increasing product reject rates

c. cutting inventory levels

d. increasing the amount of time to manufacture products

3) Which of the following management functions from the mid-1950s is no longer

included in the basic functions of management?

a. controlling

b. staffing

c. leading

d. planning

4) All of the following are examples of informational roles according to Mintzberg except


a. disseminator

b. monitor

c. liaison

d. spokesperson

5) Organizations that are well managed ________.

a. develop a loyal customer base, grow, and prosper

b. compete on an international basis because they have the best products

c. always have the lowest-cost products

d. choose the best suppliers for their products

6) The roles of disseminator, figurehead, negotiator, liaison, and spokesperson are more

important at the ________ levels of the organization.

a. supervisory

b. higher

c. lower

d. middle

Unit 1 Examination


Principles of Management

The Customer Meeting (Scenario)

Kelly, a production supervisor, is responsible for 10 employees who assemble components

into a finished product that is sold to distributors. Kelly reports to Ben, a production

manager, who in turn reports to Dan, a general manager, who reports to McKenna, a vice

president of operations. Recently, McKenna asked Dan to have a meeting with Kelly and

Ben regarding some customer concerns in the production area. The focus of the meeting

was to judge the validity of the customer concerns, and to develop a specific plan to ad

dress these concerns.

7) The structure of the managerial relationships among McKenna, Dan, Ben, and Kelly

can best be described as a ________.

a. flexible work group

b. innovative nuclear structure

c. communication hub

d. traditional pyramid structure

The Busy Day (Scenario)

Don Eskew, plant manager at Control Systems, Inc., sighed as he sipped his first cup of

coffee at 5 a.m. and read his agenda for the day. He is giving two company tours in the

morning: the first to a newspaper reporter who is writing a story on the new plant expan

sion, and the second to a group of Control Systems managers from the east coast. Don

then has a meeting with the unit manager, Phil Johnson, to discuss Phil’s recent drop in

performance (a task Don always hates). Next, Don is spending a couple of hours reviewing

the trade journals he receives from his high-tech association and writing up a brief synop

sis for his presentation next week to the division president. Finally, in the late afternoon,

he will be reviewing the new equipment malfunction and deciding whether to bring in

extra people to get the equipment running as soon as possible. Whew! Just another day in

the glamorous life of a manager.

8) When Don conducts the tour for the east coast managers, he will be operating in

which of the management roles?

a. liaison

b. figurehead

c. monitor

d. leader

9) When Don reviews the new equipment malfunction, what management role will he

play when deciding whether to bring in extra people?

a. resource allocator

b. monitor

c. disseminator

d. disturbance handler

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Principles of Management

10) Fayol was interested in studying ________, whereas Taylor was interested in studying


a. bureaucratic structures; chains of command

b. all managers; first-line managers

c. administrative theory; macroeconomics

d. senior managers; effective managers

11) The quantitative approach involves applications of ________.

a. surveys, strategic planning, and group problem solving

b. psychology testing, focus groups, and mathematics

c. statistics, information models, and computer simulations

d. optimization models, interviews, and questionnaires

12) In Wealth of Nations, Adam Smith described the breakdown of jobs into specialized

tasks and called this ________.

a. assembly lines

b. division of labor

c. work denomination

d. greatest common factor of work

13) One outcome of the Hawthorne Studies could be described by which of the following


a. Money is more important than the group with regards to individual productivity.

b. Social norms or group standards are the key determinants of individual work behavior.

c. Behavior and employee sentiments are inversely related.

d. Security is relatively unimportant.

14) Open organizations are those that ________.

a. consist of interdependent parts

b. are influenced by their environments, but do not interact with them

c. operate independently of their environments

d. interact with their environments

15) According to the systems approach, effective management must ensure that


a. all interdependent units within an organization operate together

b. its organization becomes self-contained

c. key departments within an organization have the greatest efficiency

d. its organization succeeds in ignoring governmental regulations

Unit 1 Examination


Principles of Management

16) The omnipotent view of management states that ________.

a. managers have little or no responsibility for an organization’s success or failure

b. managers are directly responsible for an organization’s success or failure

c. that there is only one boss in the organization, and she or he is responsible for del-

egating orders

d. the top manager is the only person in charge

17) In reality, managers are most accurately viewed as ________.

a. ultimately responsible for organizational outcomes

b. neither helpless nor all powerful

c. powerless to influence an organization’s performance

d. dominant over an organization’s environment

18) Which of the following represents the most significant ways through which corporate

cultures are transmitted to employees?

a. rituals, myths, competitions, and language

b. language, stories, rituals, and rewards

c. stories, rituals, symbols, and language

d. symbols, rituals, language, and business systems

19) Groups such as Mothers Against Drunk Driving (MADD) are examples of what factor in

the specific external environment?

a. government agencies

b. pressure groups

c. competitors

d. customers

Corporate Takeover (Scenario)

Todd works for SeaLan Tech, an environmental consulting firm that has just been pur

chased by Zerex, Inc., a biomedical research organization. Based on his early encounters

with the new upper management from Zerex, Todd feels that SeaLan is a “lower-key,

friendlier” organization. He is concerned that the new company will eliminate SeaLan’s

old culture, and he does not like the prospects

20) Todd is concerned with the degree to which managers focus on results or outcomes

rather than techniques and the processes used to achieve those outcomes. He is con-

cerned with ________.

a. stability

b. team orientation

c. outcome orientation

d. aggressiveness

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21) One reason for parochialism in the United States is that Americans tend to study

________ in school.

a. English and French

b. only two languages

c. only English

d. English and Spanish

22) A(n) ________ attitude is characterized by parochialism.

a. ethnocentric

b. geocentric

c. polylinguistic

d. acculturated

23) Which of the following is an MNC that tailors marketing strategies to the host coun-

try’s unique characteristics?

a. global company

b. multidomestic corporation

c. borderless organization

d. transnational organization

24) In the later stages of doing business globally, if an organization is ready to make a

more direct investment, it might utilize ________.

a. strategic alliances

b. foreign subsidiaries

c. joint ventures

d. all of the above

The Overseas Assignment (Scenario)

Christopher has a degree in business administration and has worked for a major corpora

tion for 5 years. He is offered a chance to work in another country.

25) Through research on the Internet, Christopher finds that in this country’s social frame-

work, people are expected to look after others in their family (or organization) and

protect them when they are in trouble. This society tends to support ________.

a. individualism

b. collectivism

c. parochialism

d. monotheism

1) The belief that businesses have the financial, technical, and managerial resources to

support needed public and charitable projects is known as which argument?

a. ethical obligations

b. possession of resources

c. public image

d. public expectations

2) There is ________ to say that a company’s socially responsible actions significantly

hurt its long-term economic performance.

a. a lot of evidence

b. not any evidence

c. little evidence

d. mounting evidence

3) With the stakeholder approach of dealing with environmental issues, the organization

chooses to respond to ________.

a. multiple demands made by social activists

b. multiple demands made by stakeholders

c. the demands made by governmental stakeholders

d. the demands made by the strongest stakeholders

4) Values shared among the organizational members can serve as ________.

a. a reason to follow federal and state environmental laws

b. a guidepost for managerial decisions to invest in new technology

c. a guidepost for managerial decisions and actions

d. a way to shape managerial decisions to invest in economic conditions

5) Ethics training sessions can provide what benefit?

a. They evaluate decisions and management practices in terms of the code of ethics.

b. They create ego strength in employees.

c. They strengthen the employees’ locus of control.

d. They clarify acceptable and unacceptable practices.

6) Many companies have ________ to encourage whistle blowers to come forward.

a. paid more attention to employees’ behavior

b. shared their values

c. set up toll-free ethics hotlines

d. posted the Sarbanes-Oxley Act

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Principles of Management

An Academic Question (Scenario)

As a university student, you wonder about some of the practices in the university and just

how some of these practices should be evaluated in reference to social issues.

7) If your university were paying minimum wage when necessary and applying the mini-

mum standard to laws, such as affirmative action, it would be said to have fulfilled its


a. social expectation

b. social responsiveness

c. social obligation

d. social responsibility

8) If your university provides job-share programs, builds a day-care facility, and only uses

recycled paper, it could be said to be ________.

a. socially responsive

b. socially image conscious

c. fulfilling its social obligation

d. socially aware

Summing Up Social Responsibility (Scenario)

Max Proffit, director of research and development for National Products Company, has

learned that a new material has been developed in his department that appears as though

it will work in several products already being manufactured by National Products Compa

ny. He has discussed the potential savings with his two assistants, Susie Merriweather and

Moe Gaines, and Rush Onward, vice president of product development. Susie has stated

her opposition to the use of the new product because its durability and flame retardance

have not completed testing and have not been certified by the company’s third-party

testing laboratory. Moe argues that the initial tests that their R&D department completed

indicate minimal problems with both durability and flame retardance. Rush states that in

several meetings he has recently attended, the company president had repeatedly empha

sized the need to increase earnings per share. Rush tells Max that a decision has to be

made within the week about the new products use by National Products Company.

9) Susie’s opposition to the use of the new product is an indication that she probably


a. has a weak ego strength

b. is using the classical view of social responsibility

c. has an external locus of control

d. has an internal locus of control

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Principles of Management

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

a. The problem is clear and unambiguous.

b. Preferences are clear.

c. A single, well-defined goal is to be achieved.

d. Preferences are constantly changing.

11) An increased commitment to a previous decision despite evidence that it may have

been wrong is referred to as ________.

a. escalation of commitment

b. dimensional commitment

c. expansion of commitment

d. economies of commitment

12) Intuitive decision making is ________.

a. not utilized in organizations

b. important in supporting escalation of commitment

c. a conscious process based on accumulated judgment

d. making decisions based on experience, feelings, and accumulated judgment

13) A procedure ________.

a. is a series of interrelated sequential steps to respond to a structured problem

b. is an explicit statement detailing exactly how to deal with a decision

c. allows a manager to use broad decision-making authority

d. is a set of guidelines that channel a manager’s thinking in dealing with a problem

Decisions, Decisions (Scenario)

Sondra needed help. Her insurance company’s rapid growth was necessitating making

some changes, but what changes? Should they add to the existing information system or

should they buy a new system? She was given the responsibility of analyzing the com

pany’s present information system and deciding what the company should do that would

give them plenty of room. She was confused and needed help in making the correct deci


14) According to the decision-making process, the second step Sondra should take is to


a. evaluate her decision’s effectiveness

b. allocate weights to the criteria

c. identify decision criteria

d. analyze alternative solutions

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Is the Picture Clear? (Scenario)

Sharon was the regional manager of a large cable television company. She faced many

problems and decisions daily, such as how to price each market, who to hire, what kind

of technology she should purchase, and how she should handle the increasing customer

complaints. She needed some help sorting these issues out.

15) Sometimes Sharon instructs her local managers to follow ________ when confronted

with problem situations. These establish parameters for the manager making the deci-

sion rather than specifically stating what should or should not be done.

a. policies

b. orders

c. procedures

d. rules

16) Formal planning involves which of the following aspects?

a. distributing the plan to all managerial employees

b. writing objectives

c. developing general objectives

d. planning for up to one year

17) What is the first step in a typical MBO program?

a. Unit managers collaboratively set specific objectives for their units with their manag-


b. The organization’s overall objectives and strategies are formulated.

c. Major objectives are allocated among divisional and departmental units.

d. Action plans are specified and agreed upon by managers and employees.

18) Formal plans serve as a roadmap although the destination may be changing constant-

ly due to ________.

a. management changes

b. employment makeup

c. political changes

d. dynamic market conditions

Planning Factors (Scenario)

As vice president of a local manufacturer, you are interested in developing a new organi

zational plan. However, you are not sure who you should assign to the varying planning

tasks. At the same time, several other issues that could deeply affect your business are

pending, including rising interest rates and the potential formation of a new employee















years into the future.

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Principles of Management

19) The issues that may deeply impact your business such as rising interest rates, forma-

tion of a new employee union, and the firm’s contracts with large vendors, are exam-

ples of ________ factors that affect planning.

a. noncontrollable

b. outside

c. environmental

d. contingency

The State Road 7 Collaborative (Scenario)

The South Florida Regional Planning Council convened a group of stakeholders, including

the Florida Department of Transportation and the Department of Community Affairs, who

are interested in working together on improving State Road 7. David Dahlstrom is the se

nior planner for the South Florida Regional Planning Council. Mr. Dahlstrom successfully

obtained a technical assistance grant. The intent is to organize the 15 small communities

along State Road 7 into an intergovernmental unit. All of the communities will share the

same visioning processes of mission, objectives, and tasks. Mr. Dahlstrom is now charged

with developing a strategic plan for this group, called the State Road 7 Collaborative.

20) First, Mr. Dahlstrom must determine the goals he wants to achieve. To do so, he must

follow a series of steps for goal setting. The first step in setting goals for this new

group should be to ________.

a. request input from others and then formulate specific goals

b. formally establish the organization’s mission

c. determine the goals individually and then ask for input from others

d. evaluate available resources

21) If a bank estimates the capabilities of its training and development department em-

ployees prior to implementing a new training program designed to change their

method of providing customer service, it is completing what step in the strategic man-

agement process?

a. doing an internal analysis

b. doing an external analysis

c. formulating strategies

d. identifying the organization’s current mission, goals, and strategies

22) An example of ________ is when an organization possesses a characteristic that sets

itself apart from competitors and gives the firm a distinctive edge.

a. legal propriety

b. competitive power

c. core competency

d. competitive advantage

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23) Functional-level strategy directly supports ________.

a. corporate strategy

b. focus strategy

c. competitive strategy

d. differentiation strategy

24) An Internet-based knowledge management system that resulted in shorter customer

response times would be one e-business technique that contributes to the competitive

advantage of a ________.

a. star

b. cost leader

c. focuser

d. differentiator

25) The first organization to bring a product or service to market is often referred to as the


a. trailblazer

b. prime player

c. first mover

d. market leader

1) ________ departmentalization is used more in recent years to better monitor the

needs of customers and to respond to changes in those needs.

a. Functional

b. Needs-based

c. Customer

d. Process

2) In recent years, there has been a movement to make organizations more flexible and

responsive through ________.

a. decentralization

b. customer-based structure

c. centralization

d. alternative organizational structure

3) In describing the relationship between structure and strategy, it can be said that


a. strategy follows structure in smaller organizations

b. structure follows strategy

c. strategy follows structure

d. strategy and structure are always handled equally

4) Joan Woodward’s study of the relationship between technology and structure is based

upon her study of small manufacturing firms in ________.

a. the south of Wales

b. France

c. southern England

d. the northeastern United States

5) In Joan Woodward’s study of the relationship between technology and structure, the

structure that was the most technically complex was ________.

a. unit production

b. mass production

c. technological production

d. process production

6) The strength of a ________ structure is based on results of managers, but it has a

weakness because duplication can occur easily within the organization.

a. functional

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b. simple

c. divisional

d. matrix

7) What type of organizational structure is made up of autonomous, self-contained


a. divisional

b. bureaucratic

c. simple

d. functional

8) Researchers have concluded that the structures and strategies of organizations world-

wide are ________ and the behavior within them is ________.

a. dissimilar; consistent with the individual cultures

b. dissimilar; similar

c. similar; consistent with the individual cultures

d. similar; also similar









Changes in banking regulations, a series of loan defaults by dotcom customers and a

decline in the California real estate market have forced Western Bank, a large regional

West Coast bank, to downsize in an effort to improve profitability and bolster its sagging

stock price. Susan Q., a regional branch supervisor for the Sacramento district, has been

tasked with preparing a management report concerning how these cuts are affecting bank

operations and customer service. Susan believes that the most important problem that

has emerged concerns span of control and decision-making authority within the bank. In

the past, bank policy was that no manager should supervise more than six subordinates

and only managers could make decisions for their individual units. However, with many

of the cuts coming in middle management, upper management has increased its span

of control while still insisting on managerial-only decision making at the unit level. The

result is that upper managers spend all of their time putting out fires and subordinates

feel they are getting answers too slowly. As a result, lower level employees are requesting

greater authority to make decisions on their own. However, they are not as experienced at

making decisions as upper-level managers. Susan Q believes that structural changes must

be made that reflect Western Bank’s new situation.

9) Susan believes that Western Bank should be more highly adaptive and flexible. She

would like Western Bank to possess more of a(n) ________ structure?

a. mechanistic

b. technological

c. formalized

d. organic

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10) ________ familiarizes the employee with the goals of the work unit, clarifies how his

or her job contributes to the unit goals, and includes an introduction to his or her

new co-workers.

a. An assessment center

b. Procedural orientation

c. Work unit orientation

d. Organizational orientation

11) If a training event includes learning to be a better listener or learning to interact

effectively with team members and customers, it is attempting to teach ________.

a. observational skills

b. problem-solving skills

c. interpersonal skills

d. technical skills

12) Skill-based pay systems rely on the employee’s job ________ to define his or her pay


a. performance

b. skills

c. description

d. title

13) Which of the following statements is true of current situations in human resource


a. Recent research has shown that diversity makes moving into a workforce harder for

women and minorities.

b. To improve workforce diversity, managers need to narrow their approach to recruiting.

c. Once a diverse pool of applicants is defined, a manager does not need to address

discrimination as a problem.

d. Some organizations are aggressively pursuing diversity efforts.

14) Why are workplace romances potentially problematic for organizations?

a. couples tend to act as their own team

b. flirting on the job affects productivity

c. an increased work-family life imbalance

d. the potential for sexual harassment accusations

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Principles of Management

Human Resources Selection (Scenario)

Dennis, the manager of selection in the human resources department, had been asked

by Stephen, his boss, and the vice president of human resources, to review the selection

methods their firm had been using and to recommend methods for future use. It seems

that recent hires have not been working out, and this caused friction between the human

resources group and the front-line managers, who had to utilize the talent sent to them.

Additionally, there was also a need to hire executives in the company, and due to the

responsibility these positions carry, the company wanted to ensure they selected the best

possible people. Dennis reviewed written tests as a selection method.

15) Dennis also reviewed ________, in which applicants are presented with a miniature

replica of a job and are asked to perform tasks central to that job.

a. written tests

b. intelligence tests

c. work sampling

d. job-related interviews

16) Which of the following would be considered a formal group?

a. task force for employee birthday celebrations

b. bowling team

c. reading group

d. bringing people from various functions to solve a business dilemma

17) Norming occurs when ________.

a. close relationships develop and the group demonstrates cohesiveness

b. individuals demonstrate their own cohesiveness

c. storming ends

d. leadership is team focused

The Retreat (Scenario)

The first-line managers were sent on a retreat to Silver Falls for their inaugural strategic

planning meeting. Few people knew each other, but their task was clear: design a new

performance appraisal system for subordinates that will be effective and usable. Their

years of complaining about the old system had landed them with this new responsibility.

They had 4 days to become brilliant, and everyone was a little on edge. The first day, little

was accomplished except for the jockeying to see who would be the official leader. Finally,

Jim seemed to wrangle control and helped provide the first real direction for the group. By

the second day, the group seemed to begin working well. They spent the morning deciding

how they would make decisions within the group and how to manage the idea-generation

process. On the third and fourth days, the new managers moved amazingly quickly, with

ideas flowing freely. By the end of the fourth day, they had a workable system developed,

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and they felt satisfied. That night they all signed the new document to be presented to the

regional manager the next day. They all felt a twinge of regret at having to break up the

group and return to normal work life.

18) When the management group was deciding on their decision rules, they were in the

________ stage of group development.

a. forming

b. storming

c. norming

d. adjourning

The New Professor (Scenario)

Dan Powell has recently received his Ph.D. and has begun teaching at a large university.

Prior to his first day of class, Dan’s department head had lunch with him and explained

what was expected of a new professor in terms of maintaining discipline in his classroom,

providing students with a challenging course, and keeping grades down. Later that week

Dan met with other professors in a faculty meeting. During that meeting, a number of

issues were discussed and, although Dan did not agree with all of them, he did not feel

comfortable discussing his position because he was a new assistant professor and the oth

ers were more senior. However, in watching the reactions of other professors, he got the

feeling that some of them disagreed with a few issues, too, but did not want to say any

thing because doing so might be disruptive.

19) In Dan’s first faculty meeting, his reluctance to say anything because he was a new

professor reveals that he was conscious of his ________.

a. group

b. role

c. status

d. norms

Conflicting Opinions (Scenario)

The two vice presidents were in heated debate. Celine feels that the traditional form of

marketing their company is using isn’t working any more and that loyal customers would

stay regardless. She feels the company needs to “spice it up a bit” and go after new mar

ket share. Merle disagrees vehemently. He feels the company is doing fine; they have a

good base of loyal customers, and new aggressive approaches may lose them without any

guarantee of gaining new customers. Regardless of who is right, their battle was causing

a stir in the organization. Some felt that conflict like this hurt the company and made it

appear weak to employees and stockholders. Others felt that this conflict over marketing

strategies was bound to occur eventually and may even help the company. Still others

even encouraged such conflict. They think it keeps the company from getting stuck.

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20) Those in the company who view the conflict over the marketing strategy as natural

and inevitable have a ________ view of conflict.

a. interactionist

b. strategic

c. conservative

d. human relations

21) Lewin’s theory is consistent with which view of organizational change?

a. Mayo’s

b. “calm waters”

c. continuous

d. contemporary

22) The ________ is consistent with uncertain and dynamic environments.

a. contemporary metaphor

b. continuous metaphor

c. calm waters metaphor

d. white-water rapids metaphor

23) Managing in the dynamic, chaotic world of global competition, organizations must

create new products and services, ________.

a. and adopt state-of-the-art technology if they are to compete successfully

b. at competitive prices and in the correct location

c. and adopt teams as the best way to improve the organization

d. that offer the customer what they want

New Ideas Part II (Scenario)

Although New Ideas, Inc., has been in business for 30 years, the company and its em

ployees seemingly have been in a constant state of change. Louis Snyder has been presi

dent of New Ideas, Inc. for the last 15 years. During this time, he has had to change the

strategic focus of the company three times. It seems as though his competition is always

introducing new products into the market, and New Ideas, Inc.’s niche products are con

stantly changing. Moreover, the government has been active in passing new legislation to

increase the control of the product packaging and product contents. The technology used

to manufacture the products has continually changed to make the process more efficient.

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Principles of Management

24) New Ideas, Inc., focuses on new ideas, uses technology that changes frequently, and

has strong competition in the market, describes what metaphor of change?

a. a rapid water metaphor

b. a calm water metaphor

c. a white-water rapids metaphor

d. a black-water rapid metaphor

Fred’s Situation (Scenario)

Fred was not handling the change in his department well. The company had recently

changed hands, and even though no jobs had been lost, people had been changing jobs

and were being asked to move to different locations. The new leadership had a completely

different outlook than management he had worked under for the past 21 years. Fred

found that he was unable to concentrate at work and generally felt like he did not like his

job anymore. At home he was getting headaches and having trouble sleeping, which only

enhanced his feeling that things were not going to work out well for him. When he thought

about it, he had always hated change. He had chosen this line of work partially because

it was considered stable (boring to some) and predictable. Fred’s new boss kept trying to

convince him that he was a valuable employee and that new opportunities, along with sal

ary increases, were in store in his future. Unfortunately, Fred felt like he never knew what

to expect from day to day and what Fred really wanted was to have things return to the

way they were.

25) Which of the following statements is not true concerning the stress Fred may be feel-


a. Job-related factors may be part of Fred’s stress.

b. Stress may come from any change in Fred’s life.

c. Stress may come from personal factors.

d. Stress is not related to personality differences.

1) Organizational behavior provides managers with considerable insights into hidden

aspects of the organization, which include ________.

a. strategies

b. policies and procedures

c. informal interactions

d. structure

2) The component of attitude that is made up of beliefs and opinions is ________.

a. behavioral

b. practices

c. affective

d. cognitive

3) What does the research evidence suggest about the statement, “Happy workers are

productive workers”?

a. Actually, there is no relationship between the two variables.

b. There is strong supportive evidence since the Hawthorne Studies.

c. There is a fairly strong relationship between the two variables.

d. It’s false. Instead, productive workers are least happy.

4) A person who rates high on Holland’s social scale would probably find a good match

with which of the following jobs?

a. economist

b. teacher

c. painter

d. farmer

5) If a person who is always late for work is late once again and blames it on a train,

coworkers would probably attribute that person’s lateness to ________.

a. the car

b. the train

c. an external source

d. the individual

6) ________ is the tendency for individuals to attribute their own successes to internal

factors such as ability or effort while putting the blame for personal failure on external

factors such as luck.

a. Self-serving bias

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b. Assumed similarity

c. Fundamental attribution error

d. Stereotyping

7) Managers need to recognize that their employees react to ________.

a. job descriptions

b. reality

c. attitudes

d. perceptions

8) Issues including appearance, technology, and management style may cause conflicts

and resentment for ________.

a. baby boomers





c. Gen X workers

d. centurions

Mentoring Careers (Scenario)

Jeff was glad to see the high school interns come and work in his office, and glad to see

them go. It was not that he did not enjoy their company or that they did not work hard

and attempt to perform at a high level. Many times he had seen kids come into his plant

determined to be in a particular occupation that did not suit them. It was both frustrating

and sad to see them try so hard at something they did not like and were not good at per

forming. So, for this next group of five interns, he decided to do something different. He

did a little research and found out about Holland’s Typology of Personality and Vocational

Preference. Then, as the interns arrived, he asked them to take the test to help guide

them into occupations for which they may better be suited.

9) Andrew prefers activities that involve helping and developing others. Consistent with

the testing, he is described as being social, friendly, and understanding. Which of the

following occupations is not a potentially good match for him?

a. teacher

b. writer

c. social worker

d. counselor

Written Once, Understood Anywhere (Scenario)

Margaret works as the human resource manager for Horizon Software, Inc., a software

development firm that focuses on the development and implementation of customized

Unit 4 Examination


Principles of Management

JAVA-based applications for Fortune 500 companies. Unfortunately, the past few months

have been challenging because employees have become upset due to the lack of commu

nication among company managers. Margaret decided that it was imperative to conduct

an organizational communication workshop for these managers.

10) Margaret begins by defining communication as “________ and understanding of


a. the extraction

b. the expression

c. the broadcast

d. the transfer

The Sword and the Millstone (Scenario)

Sandra Millstone, the CEO of Excalibur Manufacturing Company, had concluded that the

company would have to reduce its employee group by 10 percent within the next four

weeks due to a decreased demand for the products the company manufactured. She spent

over 30 hours preparing charts, tables, graphs, diagrams, and other forms of visual aids

for her presentation to the employees about the upcoming reduction in force so that they

could understand the reason and feel better about the company.

11) As the employees began to leave the meeting room, some were overheard grumbling

that those at the top were just profit-rakers, that it didn’t make any difference to

Sandra if employees lost their jobs, and that if the company wanted loyalty, it should

hire a dog. These statements are the result of which barrier to effective communica-


a. information overload

b. selective perception

c. downward communication

d. defensiveness

12) One employee in the finance department told her coworkers that what she heard

Sandra say was that “the company was laying off the 10 percent so that the company

could boost the dividends paid to stockholders at the end of the quarter and that the

board of directors was worried about the return on assets.” These claims are most

likely the result of which barrier to effective communications?

a. filtering

b. information overload

c. verbal intonation

d. language

Types of Communication Networks (Scenario)

Rick Smith is a regional sales manager for a health care information technology firm

Unit 4 Examination


Principles of Management

called MediFax, based in Nashville, TN. Rick is responsible for overseeing 15 salespeople

covering over 20 states spanning the mid-South to the Northeast. When the company

was smaller and there were fewer salespeople, communication flowed freely from the

field back into all areas of the home office: customer service, development, accounting

and finance, and top management. However, as the company has grown, its structure has

become more mechanistic. Management demanded that communications to and from the

field flow according to the formal chain of command. As a result, the firm has been slower

to recognize shifts in the market and respond to important market-based information de

livered by the sales force. As a result, salespeople have become more reluctant to forward

information to the home office because they perceive that it won’t be acted upon anyway.

The management team has asked Rick to review this issue and provide recommendations

for improving this situation.

13) In times past, information flowed freely from the sales force to all areas of the home

office. This is most representative of what kind of communications network?

a. chain network

b. all-channel network

c. wheel network

d. informal network

14) Once the company grew and became more mechanistic, management insisted that

information flow vertically according to the authority structure. This is most represen-

tative of what kind of communications network?

a. wheel network

b. formal network

c. chain network

d. all-channel network

Paul Locke (Scenario)

Paul Locke is a chemical engineer and research lab manager for the U.S. Navy’s muni

tions research facility in suburban Washington, D.C.

15) Paul realizes that interactive web sites, e-mail, and videoconferencing are essential

communication tools but can create the same communication problems that individu-

als face such as:

a. over-documentation

b. feedback

c. non-verbal communication

d. active listening

Unit 4 Examination


Principles of Management

16) Which of the following is considered a lower-order need?

a. safety

b. self-actualization

c. esteem

d. social









a. work to satisfy hygiene factors

b. avoid responsibility and need to be closely controlled

c. want to work and can exercise self-direction

d. want to belong more than anything else

18) Consistent with a legacy of communism and centrally planned economies, employees

exhibit ________.

a. low interest in rewards

b. less expectations of outputs

c. a greater entitlement attitude

d. a low desire for interesting work

Changing Jobs (Scenario)

Marty sat in his favorite chair at home and pondered his work situation. The funding in his

division had been cut by 25 percent, but the numerical goals did not budge. Something

had to change, and he knew it was his job to figure out how to make the goals reachable.

He had decided to try to make it work by changing the way tasks are combined in each

job. First, he needed to know how many tasks there were to each job and how frequently

each task is repeated. He also knew that because of the funding cut, people were going to

be asked to increase their job tasks horizontally. But, he also felt that to balance this he

should add planning and evaluating responsibilities. No one looked forward to this coming

year; managers or staff, but it was do or die.

19) Together, even though the employees were clearly being asked to contribute more, he

felt they would have a greater degree of control over their work. ________ describes

the degree of control the employees will have over their work.

a. Job design

b. Job enlargement

c. Job enrichment

d. Job depth

Unit 4 Examination


Principles of Management






The employees at Acme Toilets Inc. are not working as hard as Jill, their supervisor, would

like. The salespeople aren’t meeting their sales quotas, and Jill can’t seem to motivate

them to try harder. Jill has been studying expectancy theory and has decided to try to put

it into practice.

20) Jill has arranged for the bonus system to be changed so that the bonus for meeting

sales quotas is much higher than it has ever been before. Jill has altered the


a. valence

b. expectancy

c. performance-reward linkage

d. instrumentality

21) The ________ style of leadership describes a leader who tends to involve employees

in decision making, delegate authority, encourage participation in deciding work

methods and goals, and use feedback as an opportunity for coaching employees.

a. laissez-faire

b. cultural

c. autocratic

d. democratic

22) The main role of the leader is to facilitate and communicate in which of the following

leadership styles?

a. selling

b. delegating

c. participating

d. telling

23) Who developed path-goal theory?

a. Lewin

b. Blake and Mouton

c. Fiedler

d. House

24) When a young child emulates a professional sports star’s behavior, the star has what

kind of power over the child?

a. legitimate

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Principles of Management

b. coercive

c. referent

d. expert

Jack and Jill (Scenario)

Jack Jones and Jill Smith are both managers at a medium-sized medical supply firm. Jack

emphasizes to his people that the work must be done, regardless of circumstances, and

encourages his employees to meet their sales quotas. He is generally liked, but because

sales are unstructured, sometimes his employees resent his rather heavy-handed ap

proach. Jill has tried hard to build a good rapport with her employees and knows each of

their families. She encourages her employees to work hard, but to be certain to take time

for themselves and their families.

25) Fiedler would expect that the best leadership style was a function of ________.

a. type of organization, personality of leader, and education of employees

b. formal authority, production process, and personality of employees

c. chain of command, relationships, and power

d. leader-member relations, task structure, and position power

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