Management Theory and Practice
Exam Answer Key
Course Introduction
Management Theory and Practice explores the foundational principles, concepts, and techniques of effective management within organizations. This course examines classical and contemporary management theories, the roles and functions of managers, and the challenges of applying management practices in a dynamic business environment. Students will analyze key topics including planning, organizing, leading, and controlling, while also considering decision-making, strategic management, leadership styles, and organizational behavior. Real-world case studies and practical exercises help bridge theory and practice, preparing students to address complex managerial issues and adapt to the evolving demands of leadership in todays global workplace.
Recommended Textbook
Management 11th Edition by Richard L. Daft
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Page 2
Chapter 1: Innovative Management for a Changing World
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Sample Questions
Q1) The ultimate responsibility of managers is to achieve high performance by balancing efficiency and effectiveness.
A)True
B)False
Answer: True
Q2) The ability to motivate others is considered a technical management skill.
A)True
B)False
Answer: False
Q3) Consider the following three managers from Outrageous Outfitters, Inc. Tiffany Blanchard is the president, Timothy Thompson is the director of marketing, and Karen Baxter is a maintenance supervisor. Which of the following statements is true?
A) Karen Baxter does more planning than Tiffany Blanchard.
B) Timothy Thompson does more leading than Karen Baxter.
C) Tiffany Blanchard does more controlling than Timothy Thompson.
D) Tiffany Blanchard does more planning than Karen Baxter.
E) None of these.
Answer: D
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3
Chapter 2: The Evolution of Management Thinking
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Sample Questions
Q1) ______ refers to the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers.
Answer: Supply chain management
Q2) The principle that similar activities in an organization should be grouped together under one manager is the essence of the classical perspective known as:
A) unity of command.
B) division of work.
C) unity of direction.
D) scalar chain.
E) quality management.
Answer: C
Q3) Organizational development is one specific set of management techniques based in the _____ approach.
Answer: behavioral sciences
Q4) A management perspective that emerged after World War II, and applied mathematics, statistics, and other quantitative techniques to managerial problems is referred to as a(n) _____.
Answer: management science perspective
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Chapter 3: The Environment and Corporate Culture
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Sample Questions
Q1) The _____ environment represents the outer layer of the environment and affects organizations _____.
A) task; indirectly
B) general; directly
C) internal; directly
D) internal; indirectly
E) general; indirectly
Answer: E
Q2) List the four categories of culture and describe what kind of environments each fit best in.
Answer: Adaptability culture fits best in fast response and high-risk decision making environments. Achievement culture fits best in results-oriented cultures that value competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results. Involvement culture fits best in internal and employee-need focused environments where the organization is seen as having a caring, family-like atmosphere. Consistency culture fits best in internal focused organization that has a consistency orientation for a stable environment.
Q3) A(n) _____ is when two or more organizations combine to make one organization.
Answer: merger
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Page 5
Chapter 4: Managing in a Global Environment
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Sample Questions
Q1) Cultural intelligence refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.
A)True
B)False
Q2) All of the following are considered emerging economies EXCEPT _____.
A) Brazil
B) Russia
C) India
D) China
E) Canada
Q3) The degree to which people accept inequality in power among institutions, organizations, and people is called _____.
Q4) Which of these is a low-context culture?
A) German
B) Chinese
C) Korean
D) Arab
E) Japanese
Q5) List five of the countries that make up the European Union (EU).
Page 6
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Chapter 5: Managing Ethics and Social Responsibility
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Sample Questions
Q1) At the _____ level of personal moral development, individuals are most concerned with external rewards and punishments.
Q2) Economic responsibility, carried to the extreme, is called the profit-maximizing view.
A)True
B)False
Q3) List and define the stages of moral development.
Q4) List three examples of primary stakeholders.
Q5) All stakeholders of an organization are its stockholders but not all stockholders are its stakeholders.
A)True
B)False
Q6) ____ is NOT included in the model of personal moral development described in your text.
A) Preconventional level
B) Conventional level
C) Principled level
D) Postconventional level
E) All of these are included in the model
Q7) Most managers operate at the _____ level.
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Chapter 6: Managing Small Business Start Ups
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Sample Questions
Q1) A domain name gives a company an address on the Web and a unique identity.
A)True
B)False
Q2) Small businesses, according to the Small Business Administration, employ more than 90 percent of the private workforce in the United States.
A)True
B)False
Q3) Which of these means that people are motivated to excel and pick situations in which success is likely?
A) External locus of control
B) Tolerance for Ambiguity
C) Awareness of passing time
D) Internal locus of control
E) Need to achieve
Q4) The key problem, at the _____ stage of growth, is how to grow rapidly and finance that growth.
Q5) _____ firms are groups of companies or individuals that invest money in exchange for a stake in the company.
Q6) List and briefly describe the stages of growth for an entrepreneurial company.
Page 8
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Chapter 7: Managerial Planning and Goal Setting
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Sample Questions
Q1) Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals?
A) Specific and measurable
B) Challenging but realistic
C) Covers key result areas
D) Defined time period
E) Linked to rewards
Q2) Which of the following refer to specific results expected from individuals?
A) Operational goals
B) Tactical goals
C) Strategic goals
D) Operational plans
E) Mission statements
Q3) Some firms engage in crisis planning to enable them to cope with unexpected events that are so sudden and devastating that they have the potential to destroy the organization.
A)True
B)False
Q4) Compare the four levels of goals and plans.
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Chapter 8: Strategy Formulation and Execution
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Sample Questions
Q1) The star has a:
A) large market share in a rapidly growing industry.
B) large market share in a slow growth industry.
C) small market share in a rapidly growing industry.
D) small share of a slow growth market.
E) moderate market share in a slow growth industry.
Q2) Some people argue that _____ is the most difficult and most important part of strategic management.
A) SWOT analysis
B) strategic formation
C) strategic execution
D) strategic analysis
E) strategy evaluation
Q3) Which of these questions is central to a functional-level strategy?
A) What business are we in?
B) How do we compete?
C) How do we support our chosen strategy?
D) What business do we buy?
E) Where to market our products?
Q4) List the four components of a SWOT analysis.
Page 10
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Chapter 9: Managerial Decision Making
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Sample Questions
Q1) Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions.
A)True
B)False
Q2) The classical model of decision making is based on _____ assumptions.
A) philosophical
B) irrational
C) economic
D) uncertainty
E) technological
Q3) In the implementation stage, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals.
A)True
B)False
Q4) A(n) _____ is assigned the role of challenging the assumptions and assertions made by the group.
Q5) _____ is the process of forming alliances among managers.
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Chapter 10: Designing Adaptive Organizations
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Sample Questions
Q1) List the five approaches to departmentalization.
Q2) Reengineering basically means preserving the past by establishing the sequence of activities by how work was done.
A)True
B)False
Q3) Carly's Clothes, Inc. manufactures children's clothes. Which of the following departments for Carly's Clothes can be considered a line department?
A) Finance department
B) Human Resources department
C) Research and development department
D) Manufacturing department
E) Marketing department
Q4) Define span of management and explain if there is an ideal span of management.
Q5) The duty to perform the task or activity an employee has been assigned is called accountability.
A)True
B)False
Q6) When each employee is held accountable to only one supervisor, it is called _____.
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Chapter 11: Managing Change and Innovation
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Sample Questions
Q1) List the five specific tactics that can be used to overcome employee resistance to change.
Q2) An idea incubator is in-house program that provides a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics.
A)True
B)False
Q3) Artful Innovations Inc. operates with open channels of communication and an established suggestion system that encourages brainstorming and freewheeling discussions. Artful Innovations can best be described as a(n)_____ type of organization.
A) experimental organization
B) cooperative organization
C) entrepreneurial organization
D) disruptive organization
E) creative organization
Q4) Explain the horizontal linkage model.
Q5) A(n) _____ is a unit separate from the rest of the organization and is responsible for developing and initiating a major innovation.
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Chapter 12: Managing Human Resources
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Sample Questions
Q1) In recruiting and selecting employees for the new positions, Gregory will apply which human resource management goal?
A) Implementing strategies
B) Managing talent
C) Maintaining an effective workforce
D) Finding the right people
E) Controlling strategies
Q2) With _____, compensation is linked to the specific tasks that an employee performs.
A) skill-based pay
B) incentive pay
C) job-based pay
D) salary
E) competency-based pay
Q3) Finding the right people to apply new information technology for e-business is a current strategic issue of particular concern for HR managers.
A)True
B)False
Q4) Define discrimination and affirmative action.
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Chapter 13: Managing Diversity
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Sample Questions
Q1) Which racial or ethnic category currently represents the largest and fastest growing minority group?
A) White
B) African American
C) Asian
D) Hispanic
E) Native American
Q2) A culture that accepts only one way of doing things and one set of values and beliefs, produced by ethnocentrism, is known as monoculture.
A)True
B)False
Q3) Although she loves her job, Gloria is contemplating leaving it to focus her energy on parenting her three children. This would demonstrate which factor affecting women's careers?
A) Female advantage
B) Opt-out trend
C) Glass ceiling
D) Glass wall
E) Opaque ceiling
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Page 15
Chapter 14: Understanding Individual Behavior
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Sample Questions
Q1) The Sensation-Thinking style prefers dealing with theoretical or technical problems.
A)True
B)False
Q2) Jason has been unemployed for three months. When his wife asked him why he was not looking for a job, Jason responded, "If I am lucky, I will get my old job back." Jason would be considered as having a(n):
A) external locus of control.
B) high conscientiousness.
C) sensation and intuition type personality.
D) internal locus of control.
E) high Mach attitude.
Q3) The link between satisfaction and performance, according to research, is generally small and is affected by other factors.
A)True
B)False
Q4) Loyalty to and heavy involvement in one's organization is called ______.
Q5) Briefly describe the perception process.
Q6) A positive attitude toward one's job is called ______.
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Chapter 15: Leadership
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Sample Questions
Q1) Ian does not have much of a relationship with his subordinates. They feel obligated to do as he says because he's the boss. This is an example of:
A) referent power.
B) legitimate power.
C) coercive power.
D) reward power.
E) expert power.
Q2) A situational variable that counteracts a leadership style is known as a(n) _____.
Q3) Legitimate, reward, and expert powers are all forms of position power.
A)True
B)False
Q4) Which of these is the potential ability to influence the behavior of others?
A) Leadership
B) Management
C) Power
D) Control
E) Motivation
Q5) List the two types of personal power.
Q6) Power that results from the authority to reward others is called _____.
Page 17
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Chapter 16: Motivating Employees
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Sample Questions
Q1) Which of the following theories emphasize the needs that motivate people?
A) Process
B) Reinforcement
C) Content
D) Contingency
E) Situational
Q2) According to expectancy theory, for an employee to be highly motivated, E-P expectancy and valence must be maximized.
A)True
B)False
Q3) The arousal, direction and persistence of behavior refers to motivation.
A)True
B)False
Q4) The administration of a pleasant and rewarding consequence following a desired behavior is positive reinforcement.
A)True
B)False
Q5) _____ involves whether successful performance will lead to the desired outcome.
Q6) Briefly explain expectancy theory.
Q7) _____ theories emphasize the needs that motivate people.
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Chapter 17: Managing Communication
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Sample Questions
Q1) Good listeners exhibit all of the following characteristics EXCEPT:
A) asking questions.
B) having preconceptions.
C) tolerates bad habits.
D) judges content, not delivery errors.
E) all of these.
Q2) Managers' communication is _____-directed, in that it directs everyone's attention toward the vision, values, and desired goals of the team or organization and influences people to act in a way to achieve the goals.
A) image
B) idea
C) purpose
D) communication
E) need
Q3) Procedures and practices are downward communication topics that define the organization's rules, regulations, benefits, and structural arrangements.
A)True
B)False
Q4) Describe the three categories of horizontal communication.
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Chapter 18: Leading Teams
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Sample Questions
Q1) Which of the following is true of a team?
A) People in a team do not have to have regular interaction.
B) Four or more people are required to form a team.
C) A performance goal is shared between team members.
D) Teams tend to be small groups, usually with less than 10 people.
E) Each member tends to set his/her own goals for the team.
Q2) _____ teams typically consist of 5 to 20 multiskilled workers who rotate jobs to produce an entire product or service or at least one complete aspect or portion of a product or service.
Q3) A(n) _____ is a standard of conduct that is shared by team members and guides their behavior.
Q4) Sylvia is a member of a team that uses e-mail, instant messaging, and blogging to communicate. Although she sees members of her team on breaks and at lunch, Sylvia does not interact with them face-to-face in a professional setting. Sylvia's team can best be described as a:
A) project team.
B) global team.
C) focus group.
D) virtual team.
E) self-managed team.
Page 20
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Chapter 19: Managing Quality and Performance
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Sample Questions
Q1) In most companies, managers rely exclusively on qualitative measures to measure actual performance.
A)True
B)False
Q2) Katrina has also requested that the financial ratios be calculated and analyzed for her. Which of the following ratios will give her the best information for evaluating liquidity?
A) Profit margin on sales
B) Current ratio
C) Conversion ratio
D) Return on assets
E) None of these.
Q3) A(n) _____ is defined as any organizational department or unit under the supervision of a single person who is responsible for its activity.
Q4) The systematic process through which managers regulate organizational activities is known as _____.
Q5) The percentage representing what a company earned from its assets is called _____.
Q6) A(n) _____ lists forecasted and actual revenues of the organization.
Page 21
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