Contemporary Management Issues Pre-Test Questions - 803 Verified Questions

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Contemporary Management Issues

Pre-Test Questions

Course Introduction

This course explores the dynamic landscape of modern management, examining key challenges and emerging trends that shape todays organizations. Students analyze topics such as globalization, technological change, diversity and inclusion, ethical decision-making, sustainability, and crisis management. Emphasis is placed on critical thinking and problem-solving skills needed to address current issues faced by managers in various industries. Through case studies and interactive discussions, students develop strategies to navigate complex environments and lead effectively in an ever-evolving business world.

Recommended Textbook Management An Integrated Approach 2nd Edition by Ranjay Gulati

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20 Chapters

803 Verified Questions

803 Flashcards

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Page 2

Chapter 1: Introduction to Management

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Sample Questions

Q1) Fine Electronics, a manufacturing company, plans to secure new suppliers in Rhodia. Therefore, the manager of the company and its executives visit Rhodia to better understand its culture and explore opportunities. This shows that the manager of Fine Electronics is using _____ to make strategic changes.

A) technical skills

B) contingency approach

C) contextual intelligence

D) scientific management

Answer: C

Q2) A stakeholder is any group or individual who can affect or is affected by the achievement of an organization's purpose.

A)True

B)False

Answer: True

Q3) To be successful, organizations need to develop and nurture managers and leaders throughout the organization, not just at the top.

A)True

B)False

Answer: True

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Page 3

Chapter 2: The Global Business Environment

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Sample Questions

Q1) Social values often pose a much lesser challenge than language barriers for a company wanting to expand globally.

A)True

B)False

Answer: False

Q2) Define task environment and its dimensions.

Answer: The task environment includes entities that directly affect a firm on a continuous basis, including competitors, suppliers, and customers. A competitor of a firm is any organization that creates goods or services targeted at a similar group of customers. A supplier provides resources or services for a firm to help in its creation of products and services. The customers of a firm are the people or other organizations that buy the firm's products and services.

Q3) A firm's task environment includes

A) owners and the board of directors.

B) competitors, suppliers, and customers.

C) employees and culture.

D) economic and sociocultural factors.

Answer: B

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4

Chapter 3: Ethics and Corporate Social Responsibility

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Sample Questions

Q1) Explain economic responsibilities of a firm.

Answer: Economic responsibilities refer to a business's duty to make a profit and increase shareholder value. Business institutions are the basic economic units in society; therefore, they have a duty to produce goods and services that people want and to sell them at a profit. Everything else in business is built on this fundamental assumption. Companies engage in a variety of activities to increase profits, both directly and indirectly. Direct activities can include decreasing production costs and improving efficiency. Indirect actions refer to the intangible things that, over time, improve economic performance.

Q2) Corporate social responsibility activities that are directly related to business activities so that they can combine social welfare with financial welfare are known as A) accountable CSR.

B) strategic CSR.

C) inventive CSR.

D) ethical CSR.

Answer: B

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5

Chapter 4: Introduction to Strategy

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Sample Questions

Q1) The transnational strategy is a cross between global and multinational strategies.

A)True

B)False

Q2) In the formulation of strategy, managers must create a solid fit among the activities to

A) make a competitive strategy that is different from others.

B) offer a service that cannot be easily copied by competitors.

C) decide what the company will not be doing.

D) operate more effectively than its competitors.

Q3) In considering a strategy for a firm, its leaders must decide on how they seek to position the firm within the marketplace.

A)True

B)False

Q4) In developing a strategy, a manager must realize that competitive strategy is primarily about operational efficiency.

A)True

B)False

Q5) Describe the business-level strategy.

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Chapter 5: Business-Level Strategy

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Sample Questions

Q1) Rivalry among existing competitors is higher when

A) fixed costs are low and marginal costs are high.

B) exit barriers are low.

C) industry growth is slow.

D) the product is not perishable.

Q2) Inside CHS Company, there is a culture of frugality, discipline, and efficiency. The firm pays its employees a competitive wage, but there are no perks. CHS Company is likely using a

A) differentiation strategy.

B) cost leadership strategy.

C) differentiated focus strategy.

D) stuck in the middle strategy.

Q3) Outline the features of SWOT analysis.

Q4) Define value chain analysis. Discuss the two types of activities in a firm's value chain.

Q5) Supply-side economies of scale arise

A) when a buyer's willingness to pay for a product increases.

B) when the demand for a firm's product keeps fluctuating.

C) when the number of buyers for a firm's product decreases.

D) when a firm manufactures products or services in high volumes.

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Chapter 6: Corporate-Level Strategy

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Sample Questions

Q1) In vertical integration, forward integration occurs when a firm

A) attempts to achieve economies of scope.

B) controls the customers for its main products.

C) owns or controls the inputs it uses.

D) generates sustainable cost savings.

Q2) The ultimate goal of an unrelated diversification strategy is usually to create some form of financial economies.

A)True

B)False

Q3) Footflyer Publishing is considering procuring editorial services from outside sources. Which of the following should NOT weigh in Footflyer's decision?

A) The administrative costs of keeping this function in-house

B) The transaction costs of procuring the outside services

C) The economies of scope achieved through vertical integration with another publisher

D) Possible damage to the firm's core competencies

Q4) Why do managers pursue diversification strategies?

Q5) Discuss the results of diversification.

Q6) Define diversification and describe its types.

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Chapter 7: Organizational Design

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Sample Questions

Q1) Discuss organizational design and the life-cycle of a firm.

Q2) The Nickells Advertising Agency assigns a team of individuals to work on a client's advertising campaign. When the project is completed, each of the team members will be assigned to new teams pulled together for new campaigns. The Nickells Advertising Agency has a _____ structure.

A) functional

B) matrix

C) divisional

D) network

Q3) In a functional structure, a firm

A) groups diverse functions into separate divisions.

B) divides people into units in terms of the main activities that need to be performed.

C) gives equal authority to both divisional and functional managers.

D) categorizes its employees based on their performance and commitment.

Q4) Which of the following statements is an advantage of a network structure?

A) It is quite inexpensive for virtual teams to use communication technology.

B) It enables a firm to move quickly to adapt to a change in the marketplace.

C) Virtual teams often require less coordination.

D) It promotes greater accountability than divisional structure.

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Chapter 8: Organizational Culture

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Sample Questions

Q1) It is the culture of the organizational structure that drives performance.

A)True

B)False

Q2) Ben & Jerry's 5-to-1 policy, whereby executives could not earn more than five times the amount of the lowest-paid employee, is an example of a company's A) cultural artifacts.

B) cultural beliefs and values.

C) cultural assumptions.

D) mission.

Q3) When employees take risks that are not financially prudent in their quest for new innovation, they are likely following in the path of the company's A) board of directors.

B) founders.

C) stockholders.

D) new CEO.

Q4) Identify the different levels of a firm's culture and their specific attributes.

Q5) Once a behavior has become an assumption, it is even more visible.

A)True

B)False

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Chapter 9: Managing Human Capital

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Sample Questions

Q1) Which of the following is an advantage of realistic job previews?

A) Large number of applicants to choose from

B) All candidates tend to be highly skilled

C) Communicate only positive job aspects

D) Decrease turnover in many organizations

Q2) After a recent downsizing, Joe's work responsibilities significantly increased. Joe felt guilty and resentful and became self-absorbed and risk adverse. Joe was suffering from A) survivor syndrome.

B) MBO.

C) post-downsizing disorder.

D) outsourcing envy.

Q3) A crucial part of employee development is providing feedback.

A)True B)False

Q4) Outline the different methods of training.

Q5) In switching jobs, individuals should always be going "from" rather than "to."

A)True B)False

Q6) What are the benefits of internal recruitment?

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Chapter 10: Performance Management

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Sample Questions

Q1) DePaul Company has been monitoring the performance of its processes against selected measures. What is DePaul's next step in the control cycle?

A) Identify measures that track the right information to assess performance.

B) Set targets for the selected measures.

C) Take corrective action.

D) Set up a balanced scorecard.

Q2) The accounting system used to assess the specific cost components of producing a product or service is known as

A) economic value added.

B) return on equity.

C) activity-based costing.

D) economies of scale.

Q3) The _____ was created to help businesses translate strategy into action by identifying the most critical measures to drive business success and linking long-term strategic goals with short-term operational actions.

A) ISO 9000 program

B) strategic review process

C) balanced  scorecard

D) value chain analysis

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Page 12

Chapter 11: Organizational Change

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Sample Questions

Q1) Briefly describe the change process.

Q2) Which of the following statements about globalization is true?

A) Customization becomes easy as global competitors seek production efficiencies.

B) Globalization has led to rivals coming from afar into home markets.

C) It is not necessary for firms to customize their products to expand globally.

D) Globalization hasn't changed the dynamics of the workforce.

Q3) Organic change is a process where change is initiated in response to some known external threat or opportunity.

A)True

B)False

Q4) Leaders must not allow employees affected by change to vent their frustrations or concerns.

A)True

B)False

Q5) Which of the following is a most cited reason why organizations initiate change?

A) To satisfy customers

B) To motivate employees

C) To improve performance

D) To avoid monotony

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Chapter 12: Leadership in Organizations

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Sample Questions

Q1) Harry, a firm's marketing head, has certain characteristics that make him gain his team's loyalty. Moreover, he can elicit performance beyond expectations from his team members. He has the ability to motivate his team members through strong communication skills. From this description, it can be inferred that Harry is a _____ leader.

A) transactional

B) bureaucratic

C) charismatic

D) task-oriented

Q2) John is an organization's marketing lead. He has sound knowledge about the organizational activities and can make effective job-related decisions. However, his team members are unable to achieve sales targets that he sets for them. His team members complain that John does not respond or even pay attention to their problems and interests. This shows that John lacks _____ skills of leadership.

A) cognitive

B) interpersonal

C) technical

D) intellectual

Q3) Discuss the darker side of charismatic leadership.

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Page 14

Chapter 13: Becoming a Leader: Knowing Yourself

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Sample Questions

Q1) During adversity, personal helplessness occurs when people blame themselves, believing that there might be an appropriate personal response but that it is beyond their reach or repertoire of skills and abilities.

A)True

B)False

Q2) Intelligence involves a person's ability to adapt to changes in the environment.

A)True

B)False

Q3) Briefly explain Howard Gardner's multiple intelligences.

Q4) Identify some of the characteristics of people with internal and external locus of control.

Q5) Which of the following refers to people's belief that there is nothing they can do to rectify a bad situation?

A) Conscientiousness

B) Emotional instability

C) Learned helplessness

D) Resilience

Q6) Define self-monitoring. Explain the characteristics of high and low self-monitors.

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Chapter 14: Power and Influence

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Sample Questions

Q1) A type of interpersonal power that gives someone the ability to punish another for his or her behavior is referred to as _____ power.

A) referent

B) coercive

C) reward

D) expert

Q2) Susan completed tasks that were assigned but without a sense of excitement or personal buy-in. Susan demonstrated which type of reaction to power?

A) Commitment

B) Active resistance

C) Compliance

D) Passive resistance

Q3) Which of the following is required to sustain power?

A) Willingness to engage in constructive feedback

B) Inflated view of self

C) Sense of entitlement

D) Willingness to use others

Q4) Define the terms leadership, power, and influence.

Q5) Briefly describe the reactions to power.

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Chapter 15: Decision Making

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Sample Questions

Q1) Intuitive decision making often emerges from subconscious activity.

A)True

B)False

Q2) Programmed decisions generally do not require a manager or higher-level employee to execute.

A)True

B)False

Q3) A model of decision making that seeks to maximize economic or other outcomes using a rational choice process is known as the _____ model.

A) garbage can

B) political

C) classical

D) administrative

Q4) Outline heuristics and its types.

Q5) Bounded rationality refers to

A) decisions being based on a certain starting point.

B) simple and straightforward rational decisions.

C) decisions made easily without any restrictions.

D) making decisions within a set of constraints.

Q6) List the actions that can help managers "de-bias" their judgments.

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Chapter 16: Conflict and Negotiation

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Sample Questions

Q1) Which of the following statements best describes negotiation?

A) A cognitive response that occurs when interests and behaviors of one individual explicitly differs from that of another individual

B) An increase in conflict that occurs when one person's negative behaviors encourage or foster another person's negative behaviors

C) A situation that is characterized by uncertainty and risk and where the optimal decision is not clear or obvious

D) A process by which two parties attempt to reach agreement on an issue by offering and reviewing various courses of action

Q2) A mediator is an individual who listens to both sides of a disagreement and makes a final, binding decision based on the arguments.

A)True

B)False

Q3) Which of the following is a symptom of groupthink?

A) Underestimation of the group's opinion

B) Open-mindedness

C) Pressures toward uniformity

D) High interpersonal conflicts

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18

Chapter 17: Leading Teams

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Sample Questions

Q1) The factor that differentiates work groups from teams is that work groups

A) possess the authority to manage their own work processes.

B) involve individual accountability and clearly defined leadership.

C) involve individuals working together to achieve a common goal.

D) are preferred when the task is complex and sophisticated.

Q2) Identify and describe the behaviors of effective team leaders.

Q3) Which of the following statements about team size is true?

A) The optimal size of a team ranges from 20-30.

B) It is generally better to have too many than too few members.

C) As the size of a team increases beyond 20 members, the tendency to collaborate increases.

D) Team size should reflect the nature of the task.

Q4) _____ teams are composed of a manager and his or her subordinates in the formal chain of command, usually in one functional department.

A) Collocated

B) Vertical

C) Cross-functional

D) Self-directed

Q5) What defines a team, and under what conditions is the use of teams appropriate?

Q6) Describe manager-led teams.

Page 19

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Chapter 18: Motivation

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Sample Questions

Q1) Adam, a team leader, while assessing the performance of his team members, came to realize that their performance was deteriorating. In order to motivate them, Adam adopted the four-drive theory of motivation and differentiated good performers from average and poor performers. Moreover, he designed a reward system such that it was tied clearly to performance. From this scenario, it can be inferred that Adam tried to fulfill the employees' drive to A) acquire.

B) bond.

C) comprehend. D) defend.

Q2) Individuals who are motivated by personalized power like to make an impact on and influence others.

A)True B)False

Q3) Discuss the process theories of motivation.

Q4) Unlike Maslow, Alderfer believed that individuals could pursue multiple needs at once.

A)True B)False

Q5) Outline the content theories of motivation.

Page 20

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Chapter 19: Communication

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Sample Questions

Q1) Which of the following statements best describes interpersonal communication?

A) Communication that occurs in one-on-one or small group settings

B) The use of body language and objects to convey meaning to messages

C) A process of offering advice and suggestions and relating similar experiences

D) Communication that involves using sounds, letters, words, pictures, and symbols

Q2) Define persuasion. List the principles for enhancing persuasion.

Q3) Which of the following is a disadvantage of the ladder of inference?

A) Slow information processing

B) Indecisiveness

C) Biased thought processes

D) Not suitable for stressful situations

Q4) Aristotle believed that pathos was the most important element of persuasion. A)True

B)False

Q5) Briefly describe communication networks.

Q6) One of the most cited reasons for dissatisfaction by direct reports is that their managers share too much information.

A)True

B)False

21

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Chapter 20: Networking

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Sample Questions

Q1) To build useful networks, managers and leaders should consider promoting less formal social networks in the workplace.

A)True

B)False

Q2) Marvin is a high-performance general manager who has built and cultivated a strong network of relationships. Marvin has worked to create _____ capital.

A) financial

B) human

C) network

D) social

Q3) What are networking clubs? What are their purpose and how do they differ?

Q4) Raj and Lee are both connected to Bob, but Raj and Lee are not connected to each other. From this scenario we can infer that

A) Raj and Lee are redundant contacts.

B) Bob is a structural hole.

C) Bob is a broker.

D) Bob is a boundary spanner.

Q5) Define centrality and its conceptions.

Q6) Define networking. How can one build diverse networks?

Page 22

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