1) The decision-making process begins by identifying decision
criteria.
F
2) A decision criterion defines what is important or relevant to
resolving a problem.
t
3) In the decision-making process, after allocating weights to
the decision criteria, the decision maker lists viable alternatives
that could resolve the problem.
t
4) Once the alternatives to solving a problem have been
identified, the next step in the decision-making process is
selecting one of these alternatives.
F
5) Implementing an alternative refers to the process of
choosing the best alternative.
F
6) Decision making is a part of the planning, organizing, leading,
and controlling functions and thus, the essence of
management.
T
7) One assumption of rational decision making is that the
decision maker is not aware of all possible alternatives and
consequences.
F
8) According to the concept of bounded rationality, managers
make decisions rationally, but are limited by their ability to
process information.
T
9) The phenomenon of escalation of commitment refers to an
increased commitment to a previous decision despite evidence
that it may have been wrong.
T
10) Intuitive decision making complements rational decision
making but not bounded rational decision making.
F
11) A programmed decision is a repetitive decision that can be
handled by a routine approach.
t
12) Rules and policies are the same.
f
13) A policy is an explicit statement that tells a manager what
can or cannot be done.
f
14) Nonprogrammed decision making relies on procedures,
rules, and policies.
f
15) Risk is the condition in which a decision maker is able to
estimate the likelihood of certain outcomes.
t
16) The anchoring effect describes when decision makers fixate
on initial information as a starting point and then, once set, fail
to adequately adjust for subsequent information.
t
17) The availability bias describes the actions of decision
makers who try to create meaning out of random events.
f
18) The sunk costs error occurs when decision makers forget
that current choices cannot correct the past.
t
19) Managers need to understand cultural differences to make
effective decisions in today's fast-moving world.
t
20) Highly reliable organizations (HROs) are easily tricked by
their success.
f
21) Design thinking is an interesting new line of thinking with
broad implications for making effective business decisions by
integrating emotional elements into the process.
t
22) A series of eight steps that begins with identifying a
problem and concludes with evaluating a decision's
effectiveness is known as ____.
A) the decision-making process
B) decision support theory
C) a decision-tree analysis
D) a decision information system
a
23) A(n) ____ is the existence of a discrepancy between an
existing and a desired state of affairs.
A) hazard
B) risk
C) uncertainty
D) problem
d
24) Which of the following statements is true concerning
problem identification?
A) Problems are generally obvious.
B) A symptom and a problem are one and the same.
C) Generally, what is a problem for one manager is a problem
for all other managers.
D) Effectively identifying problems is not easy.
d
25) After identifying a problem, the next step in the decisionmaking process is ____.
A) identifying decision criteria
B) allocating weights to decision criteria
C) analyzing alternatives
D) developing alternatives
a
26) To determine the ____, a manager must determine what is
relevant or important to resolving a problem.
A) bounded rationality of a decision
B) escalation of commitment
C) weight of the decision criteria
D) decision criteria
d
27) Amanda, a single parent, is looking for a new job.
Considering that she has two school-going children, she is
particularly keen on finding an employer who can provide her
with alternative work arrangements such as flexible work hours
and telecommuting. In terms of the decision-making process,
these represent Amanda's ____.
A) decision criteria
B) problems
C) alternatives
D) heuristics
a
28) Max is planning on going away to college next year and is
currently trying to figure out which colleges he should apply to.
He would like to major in English Literature at an accredited
liberal arts college, but is also looking for a university that offers
financial aid. In terms of the decision-making process, these
represent Max's ____.
A) problems
B) alternatives
C) decision criteria
D) heuristics
c
29) After identifying the decision criteria that are important or
relevant to resolving a problem, the next step in the decisionmaking process is ____.
A) allocating weights to the criteria
B) analyzing the alternatives to solving the problem
C) reducing the number of criteria through the process of
elimination
D) implementing the alternative
a
30) Creativity is most essential in which of the following steps
of the decision-making process?
A) analyzing alternatives
B) allocating weights to the decision criteria
C) developing alternatives
D) identifying decision criteria
c
31) In the decision-making process, after allocating weights to
the decision criteria, the decision-maker must then ____.
A) list viable alternatives that could resolve the problem
B) allocate weights to each alternative that could resolve the
problem
C) evaluate each alternative that could resolve the problem
D) rate all alternatives that could solve the problem using the
decision criteria
a
32) Sue works in the finance department of a large
multinational corporation. Her manager has asked her to
submit a detailed report on the department's quarterly
expenses within the next two days. Being pressed for time, Sue
identifies three courses of action that could help her
accomplish her task—she can stretch her working hours till she
finishes the report, she can ask her colleague to chip in, or she
could ask her manager for additional time. Which stage is Sue
at in the decision-making process?
A) selecting an alternative
B) identifying decision criteria
C) developing alternatives
D) evaluating decision effectiveness
c
33) In the decision-making process, while ____, the decision
maker puts the decision into action by conveying it to those
affected by it and getting their commitment to it.
A) selecting an alternative
B) evaluating a decision's effectiveness
C) implementing an alternative
D) analyzing alternatives
c
34) Which of the following is important in effectively
implementing the chosen alternative in the decision-making
process?
A) evaluating each alternative by using the established criteria
B) being creative while implementing the alternatives
C) allowing those impacted by the outcome to participate in the
process
D) ignoring criticism concerning your chosen alternative
c
35) The final step in the decision-making process is to ____.
A) determine the criteria for the next decision
B) analyze the process of allocating weights to the decision
criteria
C) evaluate the outcome of the decision
D) implement the chosen alternative
c
36) Managers are assumed to use ____ if they make logical and
consistent choices to maximize value.
A) rational decision making
B) intuitive decision making
C) bounded rationality
D) evidence-based management
a
37) It is assumed that a rational decision maker ____.
A) faces unclear and ambiguous problems
B) is limited by his or her ability to process information
C) is unaware of all the possible alternatives and consequences
D) is fully objective and logical
d
38) Which of the following is NOT a valid assumption about
rationality?
A) The problem is clear and unambiguous.
B) A single, well-defined goal is to be achieved.
C) The decision maker is logical in his approach.
D) The decision maker accepts a solution that is good enough.
d
39) When managers make decisions that are rational but
limited by their ability to process the information, they are
following the concept of ____.
A) cognitive decision making
B) bounded rationality
C) escalation of commitment
D) intuitive decision making
b
40) Managers cannot possibly analyze all information on all
alternatives, they tend to ___, rather than ___.
A) maximize; satisfice
B) neutralize; satisfice
C) satisfice; neutralize
D) satisfice; maximize
d
41) ____ results in a solution that is considered "good enough."
A) Escalating
B) Linear thinking
C) Intuition
D) Satisficing
d
42) Toby is hunting for a new apartment. He is specifically
looking for one that is located in the heart of the city and
should be available for $600 per month. However, Toby is also
willing to pay up to $850 per month for a place that is situated
slighted away from the city center. According to him, the
second option "will also do." This is an example of ____.
A) rational decision making
B) bounded rationality
C) intuitive decision making
D) non linear thinking
b
43) Julie is keen on joining Columbia University to pursue a
masters degree in economics. However, after three months of
applying and waiting for an acceptance letter, she finally
decides to join NYU, which was one of her backup colleges. This
is an example of ____.
A) maximizing
B) neutralizing
C) minimizing
D) satisficing
d
44) Escalation of commitment refers to ____.
A) commitment to a faulty decision due to an unwillingness to
go against the opinion of the majority
B) an increased commitment to a previous decision despite
evidence that it may have been wrong
C) the strengthening of commitment to a particular course of
action due to greater motivation by others
D) greater commitment to a decision because of ones belief
that it is "the right thing to do"
b
45) In intuitive decision making, managers ____.
A) often tend to ignore their feelings or emotions
B) use data from their subconscious mind to help make their
decisions
C) use available evidence to improve their decision-making
skills
D) do not depend on their past experiences to make decisions
b
46) All of the following are aspects of intuition EXCEPT ____.
A) experienced-based decisions
B) affect-initiated decisions
C) cognitive-based decisions
D) programmed decisions
d
47) Intuitive decision making ____.
A) is the systematic use of the best available evidence to
improve decision making practice
B) generally results in poor decisions and hence managers
should learn to ignore their gut feelings
C) is the process of making decisions based on experience,
feelings, and accumulated judgment
D) complements rational decision making but not bounded
rational decision making
c
48) ____ are straightforward, familiar, and easily defined.
A) Organic problems
B) Structured problems
C) Analogous problems
D) Nonprogrammed problems
b
49) Structured problems align well with which type of
decisions?
A) programmed
B) analogous
C) organic
D) nonlinear
a
50) A(n) ____ decision is a repetitive decision that can be
handled by a routine approach.
A) nonprogrammed
B) organic
C) nonlinear
D) programmed
d
51) A procedure ____.
A) is an explicit statement that tells a manager what can or
cannot be done
B) is a series of sequential steps a manager uses to respond to a
structured problem
C) is used mainly for unstructured, rather than structured,
problems
D) is subject to the interpretation of the decision maker
b
52) A(n) ____ is an explicit statement that tells a manager what
can or cannot be done.
A) agenda
B) objective
C) rule
D) solution
c
53) A policy ____.
A) typically contains an ambiguous term
B) specifically states what should or should not be done
C) is a series of sequential steps a manager uses to respond to a
structured problem
D) is used when dealing with unstructured problems and
nonprogrammed decisions
a
54) What is a difference between a policy and a rule?
A) A policy establishes general parameters for the decision
maker.
B) A policy specifies what should or should not be done.
C) A policy is more explicit.
D) A rule typically contains an ambiguous term.
a
55) A(n) ____ typically contains an ambiguous term that leaves
interpretation up to the decision maker.
A) rule
B) procedure
C) edict
D) policy
d
56) "Smoking and the consumption of alcohol are strictly
prohibited inside the work premises." This is most likely an
example of a(n) ____.
A) rule
B) objective
C) procedure
D) axiom
a
57) Which of the following is an example of a procedure?
A) Without exception, all employees in customer-facing roles
must be formally attired at all times.
B) Before going on a leave of absence, fill up the application
form available on the company's online leave management
system. All applications will be approved/rejected within two
days by the employee's immediate supervisor.
C) We promote from within, whenever possible. If qualified
applicants are available internally, a job posting will be issued
by the HR department providing the necessary details about all
vacancies.
D) Employees working with power tools must wear safety
glasses at all times.
b
58) Which of the following is an example of a policy?
A) Before going on a leave of absence, fill up the application
form available on the company's online leave management
system. All applications will be approved/rejected within two
days by the employee's immediate supervisor.
B) Employees working with power tools must wear safety
glasses at all times.
C) Smoking and the consumption of alcohol are strictly
prohibited inside the work premises.
D) We are an equal opportunity employer with a diverse
workforce. We do not discriminate against employees and
applicants on the basis of sex, race, color, religion, national
origin, age, disability, marital status, sexual orientation or
veteran status.
d
59) Unstructured problems ____.
A) refer to the usual problems faced by organizations
B) are generally solved using procedures, rules, and policies
C) are accompanied by ambiguous or incomplete information
D) do not require the decision maker to go through an involved
decision process
c
60) Nonprogrammed decisions ____.
A) involve standardized solutions
B) are usually made by lower-level managers
C) are associated with clear and specific goals
D) are unique and nonrecurring
d
61) When problems are ___, managers must rely on ___ in
order to develop unique solutions.
A) structured; nonprogrammed decision making
B) structured; pure intuition
C) unstructured; nonprogrammed decision making
D) unstructured; programmed decision making
c
62) Lower-level managers typically confront ____.
A) unstructured problems
B) new and unusual problems
C) programmed decisions
D) nonprogrammed decisions
c
63) ____ is a situation where a manager has the ability to make
accurate decisions because the outcome of every alternative is
known.
A) Certainty
B) Risk
C) Bureaucracy
D) Contingency
a
64) If an individual knows the price of three similar cars at
different dealerships, he is operating under which of the
following decision-making conditions?
A) risk
B) supposition
C) certainty
D) speculation
c
65) The manager of an apparel store estimates how much to
order for the current spring season based on last spring's sales
figures. The store manager is operating under which of the
following decision-making conditions?
A) surety
B) risk
C) homogeneity
D) certainty
b
66) Which of the following best describes the psychological
orientation of an individual making a "maximax" choice?
A) optimist
B) cynic
C) pessimist
D) defeatist
a
67) Optimistic managers follow a maximax choice when they
____.
A) maximize the maximum possible payoff
B) maximize the minimum possible payoff
C) minimize the maximum regret
D) minimize the minimum regret
a
68) What is the psychological orientation of a decision maker
who makes a "maximin" choice?
A) optimist
B) realist
C) pessimist
D) idealist
c
69) ____ is a situation in which a decision maker cannot make
reasonable probability estimates.
A) Necessity
B) Risk
C) Uncertainty
D) Certitude
c
70) The ____ thinking style is characterized by a person's
preference for using external data and facts and processing this
information through rational, logical thinking to guide decisions
and actions.
A) linear
B) normative
C) behavioral
D) organic
a
71) The ____ thinking style is characterized by a preference for
internal sources of information and processing this information
with internal insights, feelings, and hunches to guide decisions
and actions.
A) active experimentation
B) nonlinear
C) linear
D) organic
b
72) Rules of thumb that managers use to simplify decision
making are known as ____.
A) heuristics
B) folksonomies
C) algorithms
D) sophisms
a
73) When decision makers tend to think they know more than
they do or hold unrealistically positive views of themselves and
their performance, they are exhibiting the ____.
A) selective perception bias
B) the anchoring effect
C) self-serving bias
D) overconfidence bias
d
74) The ____ describes how decision makers fixate on initial
information as a starting point and then, once set, fail to
adequately adjust for subsequent information.
A) anchoring effect
B) selective perception effect
C) confirmation bias
a
75) Sophie is in charge of recruitment at her company. During a
particular interview, the first thing Sophie noticed about the
applicant was that he was improperly attired. Though the
candidate possessed the necessary qualifications and
effectively answered all her questions, Sophie rejected him.
This is an example of the ____.
A) randomness bias
B) self-serving bias
C) anchoring effect
D) representation bias
c
76) When decision makers seek out information that reaffirms
their past choices and discount information that contradicts
past judgments, they are exhibiting the ____.
A) framing bias
B) availability bias
C) representation bias
D) confirmation bias
d
77) The ____ occurs when decision makers select and highlight
certain aspects of a situation while excluding others.
A) framing bias
B) availability bias
C) representation bias
D) randomness bias
a
78) The ____ happens when decisions makers tend to
remember events that are the most recent and vivid in their
memory.
A) self-serving bias
B) availability bias
C) representation bias
D) randomness bias
b
79) Whenever anyone praises Mark for his good performance,
he has the tendency to attribute his success to his personal
qualities such as his ability to thrive under pressure and his eye
for detail. However, any negative performance feedback is
always met with excuses such as unsupportive team members
or insufficient time. This is an example of the ____.
A) self-serving bias
B) confirmation bias
C) randomness bias
D) framing bias
a
80) Sarah's sales figures show that she has been the top
performer in her department for the last eight months. Two
months prior to her annual performance review, Sarah's sales
numbers fell due to her ill health causing her manager to rate
her performance as just satisfactory. This is an example of the
____.
A) randomness bias
B) availability bias
C) self-serving bias
D) representation bias
b
85) Design thinking suggests that managers should look at
problem identification collaboratively and integratively with the
goal of ____.
A) unveiling a rational approach to address the situation
B) analyzing the situation with deductive reasoning
C) developing solutions which somehow seem inevitable
D) gaining a deep understanding of the situation
D
000000000000000000000000000000000000000000000000
22) Which of the following represents the two views of
managerial impact on the success or failure of the
organization?
A) omnipotent and symbolic
B) omnipotent and reflective
C) symbolic and interactive
D) reflective and interactive
A
23) The current dominant assumption in management theory
suggests that ____.
A) an organization's success or failure is due to external forces
outside managers' control
B) managers' roles are increasingly becoming peripheral and
staff manage their own areas of expertise
C) managers are directly responsible for an organization's
success or failure
D) managers cannot significantly affect an organization's
performance because they constrained by the abilities of their
employees
C
24) The omnipotent view of management states that ____.
A) managers' roles are peripheral and staff manage their own
areas of the business
B) managers are directly responsible for an organization's
success or failure
C) managers should allow employees to take part in decision
making
D) managers have little or no responsibility for an organization's
success or failure
B
25) Which of the following most accurately reflects the
symbolic view of management?
A) Managers are directly responsible for an organization's
success or failure.
B) Managers have to ensure that every obstacle is overcome on
the way to achieving the organization's goals.
C) External forces are responsible for an organization's success
or failure.
D) Employees are directly responsible for an organization's
success or failure.
C
26) Elmo Research & Development has been going through a
rough patch lately. Turnover has been high and employee
morale is at an all-time low. Though employees and
competitors hold management responsible for the decline, the
CEO does not let the managers go or change the management
style. Which of the following could explain this attitude?
A) The CEO holds the omnipotent view of management, which
believes that external factors have a significant effect on
performance outcomes.
B) As the organization has an autocratic management style, the
employees are responsible for organizational policies.
C) The organization has a participative management style and
decisions are guided by consensus.
D) The CEO holds the view that managers have only limited role
in organization success or failure.
D
27) The ____ view of management is consistent with the
stereotypical picture of the take-charge business executive who
can overcome any obstacle in carrying out the organization's
objectives.
A) omnipotent
B) symbolic
C) democratic
D) laissez-faire
A
28) The soccer league in England is notorious for the number of
team managers fired over the course of a single season, which
stands at no fewer than eight managers on average, owing to
poor team form and consequently, poor results. It is evident
from this information that the league endorses a(n) ____ view
of management.
A) symbolic
B) omnipotent
C) laissez-faire
D) democratic
B
29) According to the symbolic view, managers have a(n) ____
effect on substantive organizational outcomes.
A) limited
B) extensive
C) influential
D) significant
A
30) The symbolic view of management is based upon the belief
that managers symbolize ____.
A) control and influence in developing plans and making
decisions
B) every aspect of an organization's performance, from the top
level to the operational level
C) the fluctuating fortunes of the organization as they alternate
between profits and losses
D) the take-charge executive who overcomes any obstacle to
see that the organization achieves its goals
A
31) Internal constraints that influence managers' decisions and
actions come from ____.
A) the attitudes of customers
B) the culture of the organization
C) the prevailing political conditions
D) the fluctuations in the stock market
B
32) Which of the following factors is a demographic component
of an organization's external environment?
A) lifestyles and behavior
B) political stability
C) geographic location
D) stock market fluctuations
C
33) Which of the following factors is an economic component
of an organization's external environment?
A) family composition
B) education level
C) disposable income
D) geographic location
C
34) The ____ component of an organization's external
environment is concerned with trends in population
characteristics such as age, race, gender, education level,
geographic location, income, and family composition.
A) economic
B) political
C) demographic
D) sociocultural
C
35) Grayson's has been in the publishing business for fifty years.
In the past two years, the company has noticed that book sales
have been tapering off, as more and more readers prefer
formats they can read on e-readers or smartphones. Grayson's
needs to analyze the changes in the environment so that it can
change its business strategies and meet the needs of the new
market. It commissions a market research firm to collect
information about the recent changes in reading habits. Which
of the following questions is the most irrelevant for this
purpose?
A) How many books does an individual customer buy in a
month?
B) What types of books do customers buy in traditional form?
C) Which format is more reader-friendly, e-books or traditional
books?
D) How much do readers spend on e-books in a month?
C
36) Which of the following factors is a sociocultural component
of an organization's external environment?
A) education level
B) political stability
C) behavior patterns
D) family composition
C
37) The economic environment affects the performance of an
organization, as was noted during the recent recession. Which
of the following factors is cited as one of the causes of the
recent recession triggered in the home mortgage markets in
the United States?
A) high interest rates on mortgages
B) massive global liquidity
C) lack of leverageability for business borrowers
D) difficulty in securing housing credit
C
38) The grassroots slogan of the Occupy movement, "We are
the 99%", refers to ____.
A) social discontent over the slow recovery of global economies
B) fear of chronic fiscal imbalances in government sectors
C) societal acceptance of U.S. values and ways of doing things
D) the sensitivities surrounding severe income disparities,
particularly in the United States
D
39) Which of the following groups includes individuals who
were born between the years 1946-1964?
A) the Silent Generation
B) the Gen Y-ers
C) the Baby Boomers
D) Post-Millenials
C
40) ____ is/are called the iGeneration, because they've grown
up with technology that customizes everything to the
individual.
A) Post-Millenials
B) The Silent Generation
C) Baby Boomers
D) Gen Y-ers
A
41) If the components of an organization's environment change
frequently, the organization is operating in a ____
environment.
A) stable
B) secure
C) dynamic
D) constant
C
42) Which of the following is a characteristic of a dynamic
environment?
A) high level of predictability of changes in environmental
conditions
B) few technological breakthroughs by current competitors
C) the presence of new competitors in the market
D) little activity by pressure groups to influence the
organization
C
43) If the components in an organization's environment exhibit
minimal change, such an environment is said to be ____.
A) volatile
B) dynamic
C) stable
D) active
C
44) Which of the following are the two dimensions of
environmental uncertainty?
A) degree of change and degree of complexity
B) degree of change and degree of volume
C) degree of complexity and degree of impact
D) degree of impact and degree of timing
A
45) D&B Designs has been in the landscape design business in
Pleasantville for the past twenty years. As the "first mover" in
the market, the company has built a strong market share over
the years and is the best-known firm in the area. The company
strength increased steadily, and now stands at fifty employees.
Which of the following, if true, would make the company's
business environment more uncertain?
A) Homeowners in the area take pride in their gardens and are
avid do-it-yourself gardeners.
B) Demand for landscaping services dips every autumn and
winter.
C) A long-time competitor quit the landscape design business
last year.
D) Zoning laws in the area change as each new city council
comes into power.
D
46) Which of the following is NOT true about the environmental
complexity of an organization?
A) Environmental complexity increases as the number of
competitors increases.
B) It is measured in terms of the knowledge an organization
needs about its environment.
C) Complexity decreases as the number of regulatory agencies
increases.
D) It depends on the knowledge an organization has about the
components of its environment.
C
47) Which of the following statements is true of dynamic and
complex environments?
A) They are characterized by a high degree of predictability of
change.
B) There are usually few components in such environments.
C) A high need for sophisticated knowledge of components
exists in such environments.
D) The components in such environments are somewhat
similar, but are continually changing.
C
48) In which of the following environments do managers in an
organization have the greatest influence on organizational
outcomes?
A) stable and complex environments
B) dynamic and simple environments
C) stable and simple environments
D) dynamic and complex environments
C
49) Which of the following environments is characterized by
the highest level of environmental uncertainty?
A) a stable and complex environment
B) a dynamic and simple environment
C) a stable and simple environment
D) a dynamic and complex environment
D
50) The term ____ is used to collectively refer to any
constituencies in an organization's environment that are
affected by its decisions and actions.
A) competitors
B) shareholders
C) unions
D) stakeholders
D
51) ____ has been described as the shared values, principles,
traditions, and ways of doing things that influence the way
organization members act.
A) Corporate hierarchy
B) Business configuration
C) Organization culture
D) Industrial psychology
C
52) Which of the following statements highlights the shared
aspect of culture?
A) Organizational culture is concerned with how members
perceive the culture and describe it, not with whether they like
it.
B) Organizational culture is not something that can be
physically touched or seen, but employees perceive it on the
basis of what they experience within the organization.
C) The original source of the culture of an organization reflects
the vision of the organizaton's founders.
D) Even though individuals may have different backgrounds or
work at different organizational levels, they tend to describe
the organization's culture in similar terms.
D
53) Which of the following most accurately reflects the
difference between strong cultures and weak cultures?
A) Strong cultures tend to encourage employees to try new
approaches to changing conditions, while weak cultures do not.
B) In strong cultures, organizational values are held by top
management, while in weak cultures, values are diffused
throughout the organization.
C) Strong cultures have less of an influence on employee
behavior than do weak cultures.
D) Company values are more deeply held and widely shared in
strong cultures than in weak cultures.
D
54) Which of the following dimensions of organizational culture
refers to the degree to which organizational decisions and
actions emphasize maintaining the status quo?
A) stability
B) attention to detail
C) innovation and risk taking
D) people orientation
A
55) Google has often been cited as a model for employee
satisfaction. Google takes extensive care to ensure employees
have the best available conditions to perform, ranging from
free snack bars, free massages, innovation rooms, spas-on-site,
and many more such measures. Which dimension of
organizational culture is Google said to emphasize through such
measures?
A) stability
B) aggressiveness
C) people orientation
D) attention to detail
C
56) A company whose managers focus on results, rather than
how results are achieved, most likely possesses a high degree of
____.
A) people orientation
B) team orientation
C) outcome orientation
D) aggressiveness
C
57) Which of the following is a characteristic of an organization
with a strong culture?
A) management strives to delink shared values from behaviors
as much as possible
B) culture conveys consistent messages about what is
important to the organization
C) the core set of organizational values is zealously guarded by
the management
D) emphasis is laid on the future of the organization, rather
than acquainting employees with company history or past
heroes
B
58) Which of the following is a disadvantage of having a strong
organizational culture?
A) high employee turnover
B) decreased organizational performance
C) low loyalty towards the organization
D) inability to respond to changing conditions
D
59) The original source of an organization's culture usually
reflects ____.
A) the present conditions in which the organization functions
B) the composition of its productive workforce
C) the degree of success that the organization has achieved
D) the vision or mission of the organization's founder
D
60) ____ is a process that helps new employees learn the
organization's way of doing things.
A) Externalization
B) Socialization
C) Deculturation
D) Transculturation
B
61) Organizational ____ typically contain narratives about
significant events or people in the organization.
A) stories
B) rituals
C) language
D) material artifacts
A
62) The term ____ refers to repetitive sequences of activities
that express and reinforce the important values and goals of
the organization.
A) organizational culture
B) corporate rituals
C) business ethics
D) employee mentorin
B
63) Which of the following is an example of a corporate ritual?
A) Employees swapping stories about the company's history
and past heroes who have made significant contributions to the
company.
B) Company executives using company-specific jargon or
slogans intended to inspire other employees to perform better.
C) Companies hosting annual parties to commemorate
employee contributions and reward outstanding performance.
D) The assortment of material artifacts that characterize an
organization, including the layout of its facilities, how its
employees dress, and the types of automobiles provided to top
executives.
C
64) In an organization whose culture conveys a basic distrust of
employees, managers are more likely to use a(n) ____
leadership style.
A) participatory
B) democratic
C) authoritarian
D) laissez-faire
C
65) An organization's culture supports the belief that profits can
be increased by cost cutting and that the company's best
interests are served by achieving slow but steady increases in
quarterly earnings. What is the nature of the programs that the
organization's managers are likely to follow?
A) short-term
B) risky
C) innovative
D) expansionary
A
66) According to Swedish researcher Goran Ekvall, which of the
following is a characteristic found in an innovative culture?
A) a serious outlook toward work
B) intolerance toward uncertainty or ambiguity
C) resolution of employee issues based on personal interest
D) freedom for employees to express opinions
D
67) An innovative organizational culture is characterized by all
of the following, EXCEPT ____.
A) freedom
B) conformity
C) debates
D) risk taking
B
68) Which of the following guidelines should managers follow
while building a customer-responsive culture?
A) precisely defining employees' normal job requirements and
ensuring they perform those actions alone
B) giving service-contact employees continual training on
product knowledge, listening, and other behavioral skills
C) designing jobs with rigid rules and procedure that employees
should stick to in order to satisfy customers
D) preserving the discretion to make day-to-day decisions on
job-related activities at the top level of management
B
69) Workplace spirituality has become important in the
contemporary workplace because it ____.
A) increases organizational efficiency
B) boosts company profits
C) gives employees a sense of purpose
D) brings religion into business
C
70) A company that aims to develop a strong sense of purpose
through meaningful work has a(n) ____ organizational culture.
A) spiritual
B) authoritarian
C) profit-oriented
D) outcome-oriented
A
71) Which dimension of the organizational culture is workplace
spirituality most closely related to?
A) outcome-orientation
B) innovation and risk taking
C) attention to detail
D) people-orientation
D
72) Which of the following is a characteristic found in spiritual
organizations?
A) focus on team development, rather than individual
development
B) profit-oriented outlook towards all organizational activities
C) tolerance towards mistakes and openness with customers
and employees
D) emphasis on controlling emotions and feelings
C
73) Which of the following is most likely to have a highly
spiritual organizational culture?
A) a highly aggressive, competitive business
B) a company with high tolerance of employee expression
C) a business that focuses strictly on outcomes
D) a business that emphasizes centralized control
B
74) Which of the following is a criticism of spiritual
organizational cultures?
A) inhibition of employees' expressions and emotions
B) incompatibility between profits and spirituality
C) lack of openness with stakeholders such as customers and
suppliers
D) absence of employee empowerment
B
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Managers begin human resource planning by ____.
A. locating capable applicants
B. forecasting sales
C. job analysis
D. inventorying current employees
D
If human resource planning shows a surplus of employees,
management can reduce the organization's workforce through
____.
A. recruitment
B. increased workweeks
C. decruitment
D. reduced job sharing
C
A written statement that explains the job content,
environment, and conditions of employment is called a ____.
A. job manual
B. job preview
C. job description
D. job specification
C
Which one of the following would be considered a factor most
directly influencing the human resource process?
A. changes in consumer preferences
B. offshoring of jobs
C. changes in technology
D. the economy
D
The first three activities of the human resource management
process involve ____.
A. identifying and selecting competent employees
B. providing employees with up-to-date knowledge and skills
C. retaining competent and high-performing employees
D. providing employees with flexible job assignments
A
The two types of orientations are ____.
A. work unit orientation and organization orientation
B. organization orientation and group orientation
C. job orientation and procedural orientation
D. work unit orientation and group orientation
A
Which one of the following Acts gives employees the legal right
to examine personnel files and letters of reference?
A. Privacy Act
B. Worker Adjustment and Retraining Notification Act
C. Civil Rights Act, Title VII
D. Consolidated Omnibus Reconciliation Act
A
Steve introduces in-house technical training programs for
employees, as well as a provision to reimburse the tuition fees
for employees who take college courses that benefit both the
employee and the organization. Steve is using ____ to motivate
and retain employees.
A. mentoring
B. performance appraisal methods
C. affirmative action
D. high-performance work practices
D
Which one of the following is a type of general training
provided by organizations?
A. managing change
B. customer education
C. basic life-work skills
D. customer service
D
The essence of affirmative action is to ____.
A. prevent discrimination and enhance the status of members
from protected groups
B. provide experiential exercises and on-the-job coaching for
employees
C. provide positive reinforcements to encourage desirable
behavior
D. prevent employees from behaving unethically
A
Which of the following steps in human resource management
helps retain competent and high-performing employees?
A. selecting
B. performance management
C. orientation
D. training
B
Recruitment is the process of ____.
A. locating, identifying, and attracting capable applicants
B. moving employees laterally to reduce intra-organizational
supply-demand imbalances
C. screening job applicants to determine who is the best
D. selecting candidates to fill open positions
A
In his report, Wade described the strengths and weaknesses of
each of his subordinates. He made a note of their past
performances and the potential they displayed. He even
provided suggestions for their improvements. Wade is using
the ____ method of conducting a performance appraisal.
A. multiperson comparison
B. written essay
C. behaviorally anchored rating scale
D. graphic rating scale
B
Because Quentin is the only male worker in a group of women,
other male employees have made jokes about his gender
identity. The jokes have affected Quentin's motivation to work
and he is absent more often. This situation may constitute
____.
A. normal workplace activity
B. protected free speech
C. hostile environment sexual harassment
D. unwelcome sexual advances
C
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What organizational development technique involves changing
the attitudes, stereotypes, and perceptions that work groups
have about each other?
A. team building
B. sensitivity training
C. survey feedback
D. intergroup development
D
____ is the term used to describe change methods that focus
on people and the nature and quality of interpersonal work
relationships.
A. Organizational development
B. Comprehensive development
C. Career development
D. Commercial development
A
Which of the following is a physical symptom of stress?
A. changes in attitude
B. changes in productivity
C. changes in metabolism
D. changes in mood
C
Organizational change is any alteration of ____.
A. people, structure, or technology
B. technology, goals, or management
C. structure, management, or goals
D. rules, procedures, or management
A
Stress symptoms are grouped under the categories of ____.
A. physical, psychological, and behavioral
B. physical, political, and social
C. physical, economic, and legal
D. physical, psychological, and cultural
A
Which type of change might include a shift from a functional to
a product structure?
A. a technological change
B. a structural component change
C. a people change
D. a structural design change
D
Organizational change can best be defined as ____.
A. any alteration of people, structure, or technology.
B. rethinking the organization's target markets
C. innovation that affects employees and customers
D. a "cleaning house" of the top executives
A
In the ____ metaphor, change is normal and expected and
managing it is a continual process.
A. smooth water
B. calm waters
C. water over the dam
D. white-water rapids
D
Organizations need change because ____.
A. employees get bored with the status quo
B. the environment is stable
C. the future is unpredictable
D. external and internal factors create the forces for change
D
According to Lewin, which of the following is the objective of
refreezing?
A. directing behavior away from the change
B. stabilizing the new situation
C. eliminating the need for future change
D. hindering the existing equilibrium
B
A ____ personality is characterized by chronic feelings of a
sense of time urgency, an excessive competitive drive, and
difficulty accepting and enjoying leisure time.
A. Type A
B. Type X
C. Type Y
D. Type B
A
Increasing the numbers of employed women and minorities
forces managers to pay attention to what change factor?
A. changes in the composition of the workforce
B. organizational strategy
C. new equipment
D. changing technology
A
Which of the following is an example of a psychological
symptom of stress?
A. changes in metabolism
B. increased heart and breathing rate
C. procrastination
D. changes in productivity
C
During his first year of employment, Arnold saw mostly white
male faces in his plant. Now he sees women and men of all ages
and ethnicities. Communication has become challenging.
Arnold has noticed a change in the ____.
A. employment laws
B. workforce composition
C. lifestyle choices
D. employee attitudes
B
Edwin would like to increase the level of creativity and
innovation in his department. One step he could take would be
to ____.
A. decrease diversity of opinions
B. resolve conflict
C. decrease external control
D. reduce resources
C
____ is a process of setting mutually-agreed upon goals and
using those goals to evaluate employee performance.
A. Management by observation
B. Management by exception
C. Management by objectives
D. Management by walking around
C
Darby is a member of a global team of engineers who are
required to coordinate their design efforts. Emailing files to
each other doesn't work well, as several versions may be
circulating simultaneously. Darby and his team could benefit
from ____.
A. the use of social media
B. Google Analytics
C. cloud computing
D. frequent face-to-face meetings
C
The commitment concept says that plans should ____.
A. extend far enough to meet those commitments made when
the plans were developed
B. not commit to specifically meeting the goals made when the
plans were developed
C. be done for as short a time period as possible
D. be done for as long a time period as possible
A
Long-term plans are defined as those with a time frame beyond
____.
A. three years
B. seven years
C. five years
D. one year
A
Which aspect of planning refers to documents that outline how
results are to be achieved?
A. goals
B. performance guidelines
C. plans
D. objectives
C
The ____ Act makes it a crime in the United States to engage in
theft of a trade secret.
A. Economic Espionage
B. Industrial Espionage
C. Patriot
D. Sarbanes-Oxley
A
Which one of the following statements is true of traditional
goal setting?
A. Evaluation of performance is carried out concurrently with
the flow of goals through the organization.
B. Goals defined narrowly by top managers need to be made
more directional as they flow down through the organization.
C. Managers at each level define goals and apply their own
interpretations and biases as they make them more specific.
D. Traditional goal setting assumes that employees know best
and employs a bottom-up approach of setting organizational
goals.
C
A ____ is a broad statement of an organization's purpose that
provides an overall guide to what organizational members think
is important.
A. vision
B. preamble
C. project
D. mission
D
How can managers effectively plan when the external
environment is continually changing?
A. They should discontinue formal planning.
B. They should be ready to change directions if environmental
conditions warrant.
C. They should continue to follow the set organizational plans
as persistence will eventually pay.
D. They should set general, but rigid plans.
B
The effect of planning on managers is that it forces them to
____.
A. anticipate and respond to change
B. generate higher profits
C. work at cross purposes
D. eliminate uncertainty
A
When is the traditional top-down approach to planning most
likely to be effective?
A. when the management avoids the use of a formal planning
department
B. when lower level employees develop plans
C. when plans are developed that can actually be used by
organizational members
D. when the plans focus on developing a large number of plans
and carefully documenting them
C
Operational plans are usually ____.
A. short term, directional, and standing
B. long term, directional, and single use
C. long term, specific, and standing
D. short term, specific, and standing
D
If top management set a goal that each store in the company
should have sales equal to or greater than $100 per square foot
per day, this would be an example of ____.
A. a strategic goal
B. a financial goal
C. a strategic plan
D. a directional plan
B
Strategic plans are usually ____.
A. short term, directional, and standing
B. long term, directional, and single use
C. long term, specific, and standing
D. short term, specific, and standing
B
____ involves the theft of proprietary materials or trade secrets
by any means.
A. Data mining
B. Data aggregation
C. Business intelligence
D. Corporate espionage
D
People's Airlines offers what it calls "no frills" flights: no
reserved seating, no snacks or meals on flights, small planes
that fly to smaller airports away from the city centers. People's
Airlines is likely following a ____ strategy.
A. focus
B. differentiation
C. cost leadership
D. quality
C
A(n) ____ strategy determines what businesses a company is in
or wants to be in, and what it wants to do with those
businesses.
A. operating
B. functional
C. corporate
D. competitive
C
A bank estimates the capabilities of its customer service
employees prior to implementing a new training program
designed to change their method of providing customer
service. The bank is ____.
A. performing an internal analysis
B. formulating its competitive strategies
C. conducting an external analysis
D. performing an employee audit
A
As smartphone cameras improved, consumers turned away
from traditional cameras. Polaroid lost market share and finally
realized their product was no longer desired. At that point,
Polaroid would be considered a ____ in the BCG matrix.
A. question mark
B. cash cow
C. dog
D. star
C
In ____, a company grows by combining with competitors.
A. vertical integration
B. concentrated integration
C. horizontal integration
D. lateral integration
C
Heavy investment in ____ will help take advantage of the
market's growth and help maintain high market share.
A. dogs
B. stars
C. question marks
D. cash cows
B
A company that competes by offering unique products that are
widely valued by customers is following a ____.
A. focus strategy
B. differentiation strategy
C. functional strategy
D. leadership strategy
B
Which of the following strategies involves a cost advantage or a
differentiation advantage in a narrow segment?
A. functional strategy
B. leadership strategy
C. retrenchment strategy
D. focus strategy
D
Which of the following is a competitive force under the five
forces model?
A. vertical integration
B. past rivalry with competitors
C. threat of new entrants
D. bargaining power of distributors
C
A ____ describes how a business will compete in its primary
market.
A. corporate strategy
B. mission statement
C. competitive strategy
D. competitive advantage
C
____ is the ability to recognize major external changes, to
quickly commit resources, and to recognize when a strategic
decision is not working.
A. Strategic leadership
B. Strategic apprenticeship
C. Strategic flexibility
D. Strategic management
C
Managers should "milk" cash cows for as much as they can,
limit any new investment in them, and use the large amounts of
cash generated to invest in ___ and ___.
A. question marks; dogs
B. dogs; stars
C. stars; question marks
D. cash cows; dogs
C
Which one of the following provides a framework for
understanding diverse businesses and helps managers establish
priorities for allocating resources?
A. a competitive strategy
B. a business unit matrix
C. a differentiation matrix
D. a corporate portfolio matrix
D
Hendricks Ceramics sells items it buys from ceramic factories. If
it were to purchase one of these factories, it would be engaging
in ____ integration.
A. backward vertical
B. concentrated
C. horizontal
D. forward vertical
A
The final step in the strategic management process allows an
organization to understand the ____.
A. resources and capabilities it possesses
B. external environment
C. implementation of the strategies
D. effectiveness of the strategies used
D
"There is absolutely no reason why I, the founder of this
enterprise, should be making the choice of floor cleaner. The
housekeepers know what works and what doesn't. Let them
choose." So said Juan, owner of Miller's Office Cleaning. Juan's
comment indicates he believes in ____.
A. self-direction
B. problem solving
C. autonomy
D. employee empowerment
D
Decades ago only former military personnel and hoodlums
sported tattoos. Today tattoos are considered an art form,
giving rise to a plethora of tattoo shops. These body artists
have taken advantage of changes in ____.
A. market structure
B. demographics
C. processes
D. perception
D
Karlee, a production worker, is working on a project with
employees from accounting, purchasing, engineering, and
customer service. Karlee is part of a ____ team.
A. product launch
B. cross-functional team
C. self-directed
D. process improvement
B
To demonstrate social responsibility, entrepreneurs are
encouraged to ____.
A. participate in community organizations such as Kiwanis and
Rotary
B. sponsor youth sports teams
C. use recycled materials in their production processes
D. consider community goals in their business plans
D
As her business grew and competitors entered the market, Inez
knew she had to step up her game. What had worked well
when the company was brand new no longer enabled her
company to meet its goals. Inez realizes she must become a(n)
____ if her company is to continue to grow and prosper.
A. visionary
B. better manager
C. charismatic leader
D. change agent
D
Geneva needs additional capital to launch her business but
does not want to share management responsibility with
partners. Neither does she want to pay the high taxes often
assessed on businesses. Her best option may be a(n) ____.
A. C corporation
B. sole proprietorship
C. S corporation
D. limited liability partnership
D
____ is what distinguishes an entrepreneurial venture.
A. Competitive advantage
B. Innovation
C. Determination
D. Growth
B
If Camden wants his new business to be a good corporate
citizen, he should ____.
A. observe all the local ordinances and employment laws
B. minimize the risks his business takes
C. consider community goals in his business plan
D. hire only union labor
C
Which one of the many personality traits of entrepreneurs
appeared on two separate lists?
A. abundance of self-confidence
B. persistent problem solver
C. moderate risk taker
D. high energy level
D
When Michele had only three employees, she performed most
of the records-keeping tasks herself and kept a general idea of
finances in her head. Now that her business has expanded, she
is having money problems. What should Michele do?
A. Relinquish some of her other duties so she can focus on the
money end of the business.
B. Create and follow a set of financial controls.
C. Take a course in financial accounting at the local college.
D. Reach out to the local business development organization
for assistance.
C
Ignacio knows he cannot pay what the "big boys" pay, so he
decides instead to emphasize the ____ his company offers.
A. health insurance benefits
B. performance incentives
C. retirement savings plan
D. learning opportunities and recognition
D
Juanita gathers her employees to solicit their opinions
regarding big issues facing the young business. After
considering their input, Juanita makes the final decision. Juanita
is engaging in ____.
A. autocratic management
B. participative management
C. democratic management
D. employee empowerment
B
In the days before sterile adhesives, bandages were tied onto
the patient. Next came adhesive tape with small squares of
gauze attached, but making these in the doctors' office was
tedious and time consuming. Finally Earle Dickson invented the
Band-Aid for his wife, who needed a bandage she could apply
to herself for small kitchen burns. Dickson saw ____.
A. a new industry
B. the unexpected
C. a process need
D. new knowledge
C
Ned has built his entrepreneurial venture into a successful
business. Part of his original plan was to build the business then
sell it to another company that could take it to the next level of
success. In other words, Ned intends to ____ his business.
A. reap
B. harvest
C. co-opt
D. relinquish
B
Farrah has created a computer-generated mockup of her new
product for inclusion in the ____ section of her business plan.
A. executive summary
B. analysis of the context
C. description of the business
D. supporting documentation
D
Work teams composed of individuals from various functional
specialties are known as ____ teams.
A. cross-department
B. cross-functional
C. cross-control
D. cross-training
B
In highly ____ organizations, there are explicit job descriptions,
numerous organizational rules, and clearly defined procedures
covering work processes.
A. formalized
B. specialized
C. decentralized
D. departmentalized
A
____ is the formal arrangement of jobs within an organization.
A. Departmentalization
B. Work specialization
C. Organizational structure
D. Organizational design
C
Michelle is very concerned about the formal framework by
which job tasks are divided, grouped, and coordinated within
her unit. This implies that she is concerned about ____.
A. the organizational design
B. decentralization
C. the organizational structure
D. the chain of command
C
The building of a bridge would be a type of ____.
A. mass production
B. process production
C. unit production
D. flow production
C
Robert owns a small engineering firm serving customers on
three continents. He has only three employees and contracts
with freelancers as needed to fulfill his customers' needs. At
any given time, he could have 50 or more engineers under
contract. Robert operates a ____.
A. boundaryless organization
B. freelance agency
C. virtual organization
D. network organization
C
Paul, the HR manager, works in the Townsville plant and
reports to the plant manager there, but he also reports to the
corporate HR director in Cityburg. This reporting structure
violates the principle of ____.
A. unity of purpose
B. unity of command
C. chain of command
D. division of authority
B
Joan Woodward divided firms into three distinct technologies
that had increasing levels of complexity and sophistication: unit
production, mass production, and ____.
A. process production
B. repetitive flow production
C. product production
D. continuous production
A
Bill manages the quality department. His people check parts
made by the production departments to assure all
specifications are met. Bill is ____.
A. a line manager
B. a staff manager
C. a middle manager
D. a non-manager
A maybe
____ refers to the rights inherent in a managerial position to
tell people what to do and to expect them to do it.
A. Authority
B. Bureaucracy
C. Liability
D. Responsibility
A
____ is the degree to which decision making takes place at
upper levels of the organization.
A. Formalization
B. Departmentalization
C. Centralization
D. Decentralization
C
Large organizations are more ____.
A. disorganized
B. organic
C. decentralized
D. mechanistic
D
In stable and simple environments, ____.
A. mechanistic designs are most effective
B. low formalization is necessary
C. decentralization is necessary
D. organic designs are most effective
A
Which of the following statements accurately defines work
specialization?
A. It clarifies who reports to whom.
B. It is the basis of grouping jobs together.
C. Individual employees specialize in doing part of an activity
rather than the entire activity.
D. It is the line of authority extending from upper organizational
levels to the lower levels.
C
A(n) ____ organization is highly adaptive, loose, and flexible.
A. customer-oriented
B. organic
C. mechanistic
D. centralized
B
The final three activities of the human resource management
process ensure ____.
A. the best compensation packages for the new hires
B. that the organization retains competent and high-performing
employees
C. that the organization selects and trains competent
employees
D. that employees are continuously provided with up-to-date
knowledge and skills
B.
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