BAM315 unit 2 exam

| June 12, 2016

Question
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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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 decision.

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

Unit 2 Examination

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Principles of Management

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-

ers.

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

union.

You

must

also

consider

your

firm’s

contracts

with

large

vendors

that

extend

five

years into the future.

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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

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