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TEST BANK For Management, 14th Edition by US Edition John Test Bank for Management, 14th Edition, US Edition John R. Schermerhorn Jr., Daniel G. Bachrach Schermerhorn, Daniel, Bachrach Chapter 1-18 Answers are at the End of Each Chapter Ch01: Introducing Management True/False 1. Intellectual capital is a personal asset for individuals. Answer: True Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Commitment represents one‘s talents or job-relevant capabilities. Answer: False Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

A knowledge worker is a person whose physical capabilities are the most critical assets. Answer: False Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Tech IQ is the ability to use technology and commitment to stay informed about the latest technological developments. Answer: True Learning Objective: 1.1 Difficulty: Easy AACSB: Information technology Bloom‘s Taxonomy: Knowledge

National boundaries hardly count anymore in the world of business.

1-1

Answer: True Learning Objective: 1.1 Difficulty: Easy AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Knowledge

Members of minority groups constitute less than one-third of the U.S. population. Answer: False Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

The first leaf in the shamrock organization consists of a core group of ―freelancers‖ and ―independent contractors.‖ Answer: False Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

In a free-agent economy, people do not change jobs very often. Answer: False Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

All organizations are open systems that interact with their environments. Answer: True Learning Objective: 1.2 Difficulty: Easy AACSB: Written and oral communication Bloom‘s Taxonomy: Knowledge

10.

Performance effectiveness is defined as the quantity and quality of outputs relative to the cost of inputs.

1-2

Answer: False Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

11.

Any inefficiency in an organization reduces the cost of production. Answer: False Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

12.

Performance efficiency is an output measure of resource cost associated with goal accomplishment. Answer: False Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

13.

In the context of present-day organizational trends, organizations and their members are networked for intense, real-time communication and coordination. Answer: True Learning Objective: 1.2 Difficulty: Moderate AACSB: Written and oral communication Bloom‘s Taxonomy: Knowledge

14.

A manager is a person who supports, activates, and is responsible for the work of others. Answer: True Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

1-3

15.

Middle managers are in charge of overseeing the overall operations of an organization. Answer: False Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

16.

The top managers of an organization constitute an executive team that is not accountable to any higher authority in the organization. Answer: False Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

17.

Top managers are supposed to set strategy and lead an organization consistent with its purpose and mission. Answer: True Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

18.

Typical job titles for middle managers include department head, team leader, and supervisor. Answer: False Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

19.

Line managers are responsible for work that makes a direct contribution to an organization‘s outputs. Answer: True Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

1-4

20.

Functional managers are primarily involved in using their special technical expertise to advise and support line workers. Answer: False Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

21.

Effective managers successfully help others achieve both high performance and satisfaction in their work. Answer: True Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

22.

The upside-down pyramid view of organizations shows customers at the top being served by workers who are supported by managers. Answer: True Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

23.

The top managers are primarily responsible for all the four management functions, and the other managers are in charge of any one of the functions. Answer: False Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

24.

Through controlling, a manager identifies desired results and ways to achieve them. Answer: False Learning Objective: 1.4 Difficulty: Easy

1-5

AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

25.

In the management process, if the planning is impeccable, then there is no need for controlling. Answer: False Learning Objective: 1.4 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

26.

According to Mintzberg, a manager‘s informational roles are limited to being a figurehead. Answer: False Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

27.

According to Mintzberg, as a monitor, a manager provides direction and instills enthusiasm. Answer: False Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

28.

Through agenda setting, good managers develop action priorities that include goals and plans spanning long and short time frames. Answer: True Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

29.

The learning focus in management is on classroom learning, lifelong learning, and learning agility.

1-6

Answer: True Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

30.

Long-term career success depends mainly on lifelong learning. Answer: True Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

31.

A person high in emotional intelligence does not usually sense when another person‘s emotions are negatively influencing a relationship. Answer: False Learning Objective: 1.5 Difficulty: Moderate AACSB: Written and oral communication Bloom‘s Taxonomy: Comprehension

Multiple Choice

32.

_____ is the collective brainpower or shared knowledge of a workforce that can be used to create value. A. Social capital B. Intellectual capital C. Workforce diversity D. Productivity E. Competency Answer: B Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

33.

The intellectual capital equation states: Intellectual Capital = A. Competency × Commitment B. Competency ÷ Commitment

1-7

C. Knowledge × Concept D. Knowledge ÷ Concept E. Intellect × Talent Answer: A Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

34.

_____ represents one‘s willingness to work hard in applying one‘s capabilities to important tasks. A. Intellect B. Productivity C. Commitment D. Effectiveness E. Competency Answer: C Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

35.

Which of the following is a defining characteristic of knowledge workers? A. They work only in the information technology industry. B. They have a high degree of cohesiveness and are prone to groupthink. C. They are valued for their creative minds, not just their physical capabilities. D. They are grouped together for a specific purpose and are disbanded when their task is completed. E. They are part of an unofficial group emerging from relationships and shared interests among members. Answer: C Learning Objective: 1.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

36.

The members of a _____ team are most likely to hold meetings, access common databases, share information and files, make plans, and solve problems together, all without ever meeting face to face. A. virtual B. specialized C. cross-functional D. self-managed

1-8

E. formal Answer: A Learning Objective: 1.1 Difficulty: Easy AACSB: Information technology Bloom‘s Taxonomy: Knowledge

37.

_____ is the worldwide interdependence of resource flows, product markets, and business competition. A. Collectivism B. Globalization C. Nationalization D. Diversification E. Orientalism Answer: B Learning Objective: 1.1 Difficulty: Easy AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Knowledge

38.

In today‘s world, Americans find that their customer service call is Answered in Ghana, their CAT scan read by a radiologist in India, and their tax return prepared by an accountant in the Philippines. This has become possible primarily due to _____. A. collectivism B. the glass ceiling effect C. regional trade agreements D. globalization E. distributed leadership Answer: D Learning Objective: 1.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

39.

Most people have a favorable opinion of globalization, but the issue of ___ does not make everyone happy. A. Groupthink B. Functional chimneys problem C. Job migration D. National barriers E. Debt financing Answer: C

1-9

Learning Objective: 1.1 Difficulty: Easy AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Knowledge

40.

Job migration occurs primarily: A. when firms shift jobs from one country to another. B. due to an ecological fallacy. C. when workforce diversity increases. D. when workers refrain from moving from their home country to another country. E. due to an increase in the productivity of the workforce. Answer: A Learning Objective: 1.1 Difficulty: Moderate AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Knowledge

41.

What is an advantage of reshoring? A. It helps safeguard the intellectual property of a firm. B. It shifts jobs from home countries to the overseas outlets of a firm. C. It increases the cost of transportation. D. It increases globalization. E. It increases job migration. Answer: A Learning Objective: 1.1 Difficulty: Moderate AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Comprehension

42.

Which of the following is defined as a code of moral principles that sets standards for what is ―good‖ and ―right‖ as opposed to ―bad‖ and ―wrong‖ in the conduct of a person or group? A. Synergy B. Ethics C. Behavior D. Cohesiveness E. Individualism Answer: B Learning Objective: 1.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

1-10

43.

_____ describes the differences among workers in terms of gender, race, age, ethnicity, religion, sexual orientation, and able-bodiedness. A. Ethics B. Workforce diversity C. Masculinity-femininity D. Creative economy E. Competency Answer: B Learning Objective: 1.1 Difficulty: Easy AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Knowledge

44.

Jonas, an employee of Pluto Inc., thinks that business leaders should ―be white.‖ Due to this, he holds a grudge against his manager, Asera, who is an Asian. Jonas often displays defiant behavior at the workplace. His behavior is an example of _____. A. prejudice B. whistleblowing C. subordination D. harassment E. bullying Answer: A Learning Objective: 1.1 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

45.

_____ is the display of negative, irrational attitudes toward members of diverse populations. A. Job dissatisfaction B. Subordination C. Intimidation D. Whistleblowing E. Prejudice Answer: E Learning Objective: 1.1 Difficulty: Easy AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Knowledge

1-11

46.

_____ actively denies minority members the full benefits of organizational membership. A. Discrimination B. Subordination C. Migration D. Free-riding E. Social loafing Answer: A Learning Objective: 1.1 Difficulty: Easy AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Knowledge

47.

The _____ effect is an invisible barrier limiting career advancement of women and minorities. A. ecological fallacy B. masculinity-femininity C. job migration D. nationalization E. glass ceiling Answer: E Learning Objective: 1.1 Difficulty: Easy AACSB: Diverse and multicultural work environments Bloom‘s Taxonomy: Knowledge

48.

Nicola is the most qualified candidate for the job of marketing manager at Lean Inc. However, the recruiters do not hire her because they feel that a woman would not be able to handle the responsibilities associated with such a senior position. This is an example of the _____ effect. A. ecological fallacy B. globalization C. job migration D. glass ceiling E. nationalization Answer: D Learning Objective: 1.1 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

1-12

49.

The typical characteristic of a(n) _____ is that they typically operate with a core group of full-time long-term workers supported by others who work on contracts and part-time. A. shamrock organization B. ad hoc team C. combined task force D. project team E. joint task force Answer: A Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

50.

Which of the following is the defining characteristic of a free-agent economy? A. People change jobs more often, and many work on independent contracts with a shifting mix of employers. B. The structure is totally centralized, and the leader makes all key decisions while most communication is done by one on one conversations. C. It consists of boundary-less organizations whose employees communicate only through the virtual media. D. In this system, organizations are exempted from tax, given that they use surplus revenues to achieve their goals rather than distribute them as profit. E. The structure is fully functional, and it consists of long-term employees who are mostly concerned with their respective areas of interest. Answer: A Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

51.

Which of the following statements holds true for the term self-management? A. It is a skill that involves being able to recognize one‘s own strengths. B. This skill involves ignoring one‘s own shortcomings. C. It is a skill that involves taking help from others for assessing oneself realistically. D. It involves hiring managers to help improve one‘s personal development. E. This skill does not require one to be responsible for his or her actions. Answer: A Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

1-13

52.

Which of the following is a typical characteristic of an open system? A. It is an organization that is convened for a specific purpose and disbands when its task is completed. B. It is a system where each member has the authority to make decisions about how they share and complete their work. C. It is the system where communication flows only between individual members and a hub. D. It is the system in which subgroups have limited communication with one another. E. It is a system that transforms resource inputs from the environment into product outputs. Answer: E Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

53.

_____ helps in maintaining connectivity with people that in turn helps with job searches and career advancement. A. Commitment B. Self-management C. Social networking D. Performance efficiency E. Job migration Answer: C Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

54.

_____ accurately measures the quantity and quality of outputs relative to the cost of inputs. A. Commitment B. Productivity C. Competency D. Performance efficiency E. Tech IQ Answer: B Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

1-14

55.

The annual productivity report of Papyrus Inc. states that it has achieved the targets it had set for the year 2013. However, in this process, much of its resources have been wasted, and the amount spent on resources is more than the estimated amount. Its productivity has been: A. effective and efficient. B. neither effective nor efficient. C. not effective but efficient. D. effective but not efficient. E. stagnant in terms of efficiency and effectiveness. Answer: D Learning Objective: 1.2 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

56.

The productivity of a company is neither efficient nor effective when its: A. goals are not achieved and resources are wasted. B. goals are achieved and resources are not wasted. C. goals are achieved but resources are wasted. D. performance effectiveness is high. E. goals are not achieved but resources are not wasted. Answer: A Learning Objective: 1.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

57.

The productivity of a company is effective and efficient if its: A. goals are not achieved and resources are wasted. B. goals are achieved and resources are not wasted. C. goals are achieved but resources are wasted. D. performance effectiveness is low. E. goals are not achieved but resources are not wasted. Answer: B Learning Objective: 1.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

58.

_____ is an output measure of task or goal accomplishment. A. Job satisfaction B. Competency C. Performance effectiveness

1-15

D. Performance efficiency E. Tech IQ Answer: C Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

59.

The difference between performance effectiveness and performance efficiency is that the: A. former is an output measure of goal accomplishment and the latter is an input measure of the resource costs associated with goal accomplishment. B. former focuses on resource utilization and the latter focuses on the quantity and quality of work performance. C. former emphasizes machine efficiency, while the latter emphasizes human capital. D. former emphasizes the performance of the team as a whole and the latter emphasizes the performance of the individual employees. E. former leads to a decrease in customer satisfaction, while the latter reduces productivity. Answer: A Learning Objective: 1.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

60.

Mathilda, who works for an insurance company, has the capacity to sell fifteen insurance policies a day. However, she sells only ten insurance policies a day. This is a typical example of _____. A. information asymmetry B. the glass ceiling effect C. inefficiency D. an ecological fallacy E. the functional chimneys problem Answer: C Learning Objective: 1.2 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

61.

_____ is an input measure of the resource costs associated with goal accomplishment. A. Productivity B. Profit C. Performance effectiveness

1-16

D. Performance efficiency E. Revenue Answer: D Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

62.

Which of the following is true in the context of present day organizational trends? A. Workers are more tolerant of hierarchy. B. Little attention is paid to preservation of natural resources. C. There is a greater focus on valuing human capital. D. Organizations are less horizontal in focus. E. Traditional top-down bosses are popular. Answer: C Learning Objective: 1.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

63.

In nonprofit organizations such as a hospital or university, a _____ is mainly responsible for the smooth running of the organization. A. team leader B. board of trustees C. middle manager D. chief executive officer E. department head Answer: B Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

64.

Who elects the members of the board of directors? A. Top managers B. Stockholders C. Middle managers D. First-line managers E. Senior staff Answer: B Learning Objective: 1.3 Difficulty: Easy

1-17

AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

65.

To which of the following categories does the chief financial officer (CFO) of an organization typically belong? A. Board of directors B. Middle managers C. First-line managers D. Top managers E. Board of trustees Answer: D Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

66.

The chief information officer (CIO) of an organization belongs to the category of _____. A. board of directors B. middle managers C. first-line managers D. top managers E. board of trustees Answer: D Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

67.

Clinic directors in hospitals, deans in universities, and division managers in businesses belong to the category of _____. A. board of directors B. middle managers C. first-line managers D. top managers E. board of trustees Answer: B Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

1-18

68.

_____ are in charge of guiding the performance of an organization as a whole or of one of its major parts. A. Top managers B. Board of directors C. Middle managers D. First-line managers E. Board of trustees Answer: A Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

69.

The middle managers of an organization: A. are in charge of the organization as a whole. B. are appointed by the stockholders of an organization. C. oversee the work of large departments. D. hold titles such as department head, team leader, or supervisor. E. constitute an executive team that reports to the board. Answer: C Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

70.

Team leaders ideally report to the _____. A. top managers B. board of directors C. board of trustees D. first-line managers E. middle managers Answer: E Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

71.

_____ directly contribute to producing an organization‘s goods or services. A. Line managers B. Staff managers C. Top managers D. Middle managers

1-19

E. Trustees Answer: A Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

72.

Staff managers: A. directly contribute to producing an organization‘s goods. B. use special technical expertise to advise and support line workers. C. look after the administration of nonprofit organizations. D. are appointed by the stockholders. E. elect the top managers. Answer: B Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

73.

Kenneth is the sales manager of a firm and his responsibility is limited to the sphere of marketing. Kenneth‘s job profile indicates that he is a _____ of the firm. A. director B. general manager C. trustee D. stockholder E. functional manager Answer: E Learning Objective: 1.3 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

74.

Charlie oversees all the operations of a firm, from purchasing to manufacturing to human resources to finance and accounting functions. Charlie is the _____ of the firm. A. general manager B. line manager C. functional manager D. team leader E. director Answer: A Learning Objective: 1.3

1-20

Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

75.

A manager in a public or nonprofit organization might be referred to as a(n)_____. A. director B. president C. administrator D. team leader E. trustee Answer: C Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

76.

_____ is the requirement of one person to show performance results to a supervisor. A. Productivity B. Competency C. Performance effectiveness D. Accountability E. Performance efficiency Answer: D Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

77.

Corporate governance is most likely to occur when: A. a board of directors holds the top management accountable for organizational performance. B. minority members are denied the full benefits of organizational membership. C. the traditional top-down ―do as I say‖ form of management prevails. D. top managers guide the performance of an organization as a whole. E. team leaders report to middle managers about the performance of the nonmanagerial workers. Answer: A Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

1-21

78.

_____ is the overall quality of human experiences in the workplace. A. Productivity B. Competency C. Performance effectiveness D. Quality of work life E. Performance efficiency Answer: D Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

79.

The upside-down pyramid view of organizations shows: A. managers at the top being in charge of the overall operations of the organization. B. customers at the top being served by workers who are supported by managers. C. that board of directors can hold top management accountable for organizational performance. D. that operating and frontline workers are at the bottom of the pyramid followed by the middle managers. E. that the primary job of top executives is to preserve the resources of the company. Answer: B Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

80.

Which of the following is typically the first step of the management process? A. Organizing B. Analyzing C. Leading D. Controlling E. Planning Answer: E Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

81.

In the context of the management process, _____ is the process of setting objectives and determining what should be done to accomplish them. A. organizing B. inspiring

1-22

C. leading D. planning E. controlling Answer: D Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

82.

In the context of the management process, organizing is the process of: A. setting objectives and determining what should be done to accomplish them. B. assigning tasks, allocating resources, and coordinating work activities. C. preparing team members to achieve closure and disband. D. measuring performance and taking action to ensure desired results. E. motivating team members to increase team cohesiveness to ensure the occurrence of groupthink. Answer: B Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

83.

In the context of the management process, leading primarily involves: A. setting objectives and determining what should be done to accomplish them. B. assigning tasks, allocating resources, and coordinating work activities. C. arousing enthusiasm and inspiring efforts to achieve goals. D. preparing team members to achieve closure and disband. E. developing action priorities for accomplishing goals and plans. Answer: C Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

84.

In the context of the management process, which of the following best describes the process of controlling? A. It is the process of setting objectives and determining what should be done to accomplish them. B. It is the process of assigning tasks, allocating resources, and coordinating work activities. C. It is the process of arousing enthusiasm and inspiring efforts to achieve goals. D. It is the process of measuring performance and taking action to ensure desired results.

1-23

E. It is the process of developing action priorities for accomplishing goals and plans. Answer: D Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

85.

According to Mintzberg, a manager‘s informational roles involve being a(n) _____. A. leader B. disturbance handler C. disseminator D. entrepreneur E. resource allocator Answer: C Learning Objective: 1.4 Difficulty: Easy AACSB: Written and oral communication Bloom‘s Taxonomy: Knowledge

86.

In accordance with the ten managerial roles mentioned by Mintzberg, as a monitor, a manager is required to: A. scan for information. B. provide direction. C. handle budgets. D. forge agreements. E. share information. Answer: A Learning Objective: 1.4 Difficulty: Easy AACSB: Written and oral communication Bloom‘s Taxonomy: Knowledge

87.

According to Mintzberg, the interpersonal roles of a manager primarily involve: A. the giving, receiving, and analyzing of information. B. providing direction and instilling enthusiasm. C. handling budgets and distributing resources. D. making deals and forging agreements. E. interacting with people inside and outside the work unit. Answer: E Learning Objective: 1.4 Difficulty: Easy AACSB: Written and oral communication

1-24

Bloom‘s Taxonomy: Knowledge

88.

According to Mintzberg, as a resource allocator, a manager is mainly involved in: A. the giving, receiving, and analyzing of information. B. providing direction and instilling enthusiasm. C. handling budgets and distributing resources. D. making deals and forging agreements. E. interacting with people inside and outside the work unit. Answer: C Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

89.

Being an entrepreneur, disturbance handler, resource allocator, and negotiator are part of the _____ roles of a manager. A. decisional B. informational C. interpersonal D. monitoring E. allocation Answer: A Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

90.

_____ primarily involves developing action priorities for accomplishing goals and plans. A. Organizing B. Agenda setting C. Capitalizing D. Information scanning E. Controlling Answer: B Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

1-25

91.

The process of creating positive relationships with people who can help advance agendas is referred to as _____. A. organizing B. networking C. capitalizing D. allocating E. controlling Answer: B Learning Objective: 1.4 Difficulty: Easy AACSB: Written and oral communication Bloom‘s Taxonomy: Knowledge

92.

Which of the following best describes social capital? A. It is a unique form of ethical entrepreneurship that seeks novel ways to solve pressing social problems. B. It is the ability to manage ourselves and our relationships effectively. C. It is a capacity to create positive relationships with people who can help advance agendas. D. It is the capacity to get things done with the support and help of others. E. It is the ability to think analytically to diagnose and solve complex problems. Answer: D Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

93.

Which of the following best describes learning? A. It is a change in behavior that results from experience. B. It is the capacity to get things done with the support and help of others. C. It is the process of measuring performance and taking action to ensure desired results. D. It is the ability to use expertise to perform a task with proficiency. E. It is the ability to think analytically and achieve integrative problem solving. Answer: A Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

94.

A(n) _____ is the ability to translate knowledge into action that results in desired performance. A. concept

1-26

B. commitment C. agenda D. process E. skill Answer: E Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

95.

A technical skill is the ability to: A. work well in cooperation with other people. B. focus on the ―soft‖ skills at work. C. use expertise to perform a task with proficiency. D. think analytically and diagnose and solve complex problems. E. manage ourselves and our relationships effectively. Answer: C Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

96.

A prospective employer asks Berta, ―What kind of contribution can you make to our company with your knowledge?‖ The employer is focusing on Berta‘s _____ skills. A. human B. conceptual C. interpersonal D. critical thinking E. technical Answer: E Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

97.

Knowing how to write a business plan, using statistics to analyze data from a market survey, and preparing visual aids for a presentation are part of a manager‘s _____ skills. A. peripheral B. technical C. human D. conceptual E. advanced

1-27

Answer: B Learning Objective: 1.5 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

98.

A(n) _____ skill is the ability to think analytically to diagnose and solve complex problems. A. conceptual B. human C. technical D. kinesthetic E. interpersonal Answer: A Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

99.

Human skills are also referred to as _____ skills. A. conceptual B. interpersonal C. technical D. emotional E. intellectual Answer: B Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

100.

Which of the following is a defining characteristic of a manager with good human skills? A. Capacity to break problems into smaller parts B. Knowing how to write a business plan C. A high degree of emotional intelligence D. Expertise at handling budgets and distributing resources E. Ability to inspire efforts to achieve goals Answer: C Learning Objective: 1.5 Difficulty: Moderate AACSB: Analytical thinking

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Bloom‘s Taxonomy: Knowledge 101.

A(n) _____ skill precisely refers to the ability to work well in cooperation with other people. A. conceptual B. technical C. emotional D. human E. analytical Answer: D Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

102.

_____ is the ability to manage ourselves and our relationships effectively. A. Conceptual skill B. Technical skill C. Tech IQ D. Emotional intelligence E. Critical thinking Answer: D Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

103.

Allen, a salesman at a retail store, is a quick learner and knows how to handle customers. He could become an assistant manager if he wasn‘t reluctant to take on more responsibility and eager to get off work soon. Which of the following skills does Allen lack, for his career advancement? A. Competence B. Commitment C. Knowledge D. Aptitude E. Analytical Answer: B Learning Objective: 1.1 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

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104.

Collin, a trainee with an event management firm, was asked to coordinate the designing, production, and installment of banners and posters for an upcoming project. He was assigned a particular amount of money for this purpose. Collin completed the job in time but exhausted his resources. He made a request for additional funds to make the remaining payments to the vendors. In which of the following ways can Collin‘s performance be categorized? A. Effective but not efficient B. Effective and efficient C. Neither effective nor efficient D. Not effective but efficient E. Essential but not effective Answer: A Learning Objective: 1.2 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

105.

Ryan works in a private firm and manages the accounts department with a team of four junior accountants. In this scenario, Ryan be categorized as a _____. A. line manager B. boundary spanner C. functional manager D. general manager E. nonmanagerial worker Answer: C Learning Objective: 1.3 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

106.

As a manager, Rachel made sure that her employees‘ morale was always high by conducting open discussions on projects, initiating programs to help employees deal with various aspects of their lives, and acknowledging the work they were doing. Which of the following functions of management is being executed by Rachel? A. Planning B. Organizing C. Controlling D. Leading E. Measuring Answer: D Learning Objective: 1.4 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

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107.

Alex is a software engineer and develops games for Supergamer.com. Which of the following skills is most likely to be used by Alex for fulfilling his job responsibilities? A. Financial skills B. Gross motor skills C. Interpersonal skills D. Human skills E. Technical skills Answer: E Learning Objective: 1.5 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

108.

Glenn refused to promote Carmelia to the position of a global manager because she belonged to a minority community. He was of the opinion that her ethnic identity would limit her from working effectively and that it would make the company‘s clients uncomfortable. Which attitude has Glenn displayed in his decision? A. Discrimination B. Favoritism C. Opportunism D. Autocracy E. Incompetency Answer: A Learning Objective: 1.1 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

109.

Bumblebee is a toy manufacturing company. Though the company has been effective in managing its resources without any wastage, its productivity efficiency report shows a decrease in the year 2013 when compared to the previous year. This outcome indicates that its productivity is _____. A. efficient but not effective B. neither effective nor efficient C. effective and efficient D. effective but not efficient E. stagnant Answer: A Learning Objective: 1.2 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

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110.

Gary has been promoted to one of the top managerial positions in his company. He needs to set new goals and missions for his team. Which of the following functions will Gary ideally carry out in his new capacity? A. Make decisions regardless of a difference of opinion with his superiors B. Be attentive to any potential long-run problems and opportunities C. Take control of divisions consisting of several smaller work units D. Reduce the quality and quantity of inputs to increase the outputs E. Take charge of a small work group composed of non-managerial workers Answer: B Learning Objective: 1.3 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

111.

Pauline, a manager at Woorth Industries, acts as a translator for the company‘s clients in China because of her fluency in Mandarin. Which of the following roles of a manager is she performing in this scenario? A. Resource allocator B. Monitor C. Spokesperson D. Leader E. Disturbance handler Answer: C Learning Objective: 1.4 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

112.

Ronald, a marketing manager at Tesron Automobiles, is discussing an automobile concept with the design team, and the discussion quickly turns argumentative. Ronald, aware of his tendency to get angry very quickly, diffuses the argument by diverting the group‘s attention to another topic. This scenario illustrates that Ronald has a high degree of _____. A. technical skills B. critical thinking C. marketing skills D. emotional intelligence E. cognitive intelligence Answer: D Learning Objective: 1.5 Difficulty: Moderate AACSB: Application of knowledge

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Bloom‘s Taxonomy: Application

Essay Questions

113.

Why is job migration considered to be a side effect of globalization? How is it being dealt with in the U.S.? Answer: One controversial side effect of globalization is job migration, the shifting of jobs from one country to another. The U.S. economy has been a net loser to job migration while countries like China, India, and the Philippines have been net gainers. Politicians and policymakers regularly debate the high costs of job migration as local workers lose jobs, and their communities lose economic vitality. One side looks for new government policies to stop job migration and protect the jobs of U.S. workers. The other side calls for patience, believing that the national economy will strengthen and grow jobs in the long run as the global economy readjusts. Learning Objective: 1.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

114.

List some of the changes in present organizational trends. Answer: Here are some of the changes in present organizational trends: •Focus on valuing human capital: The premium is on high-involvement work settings that rally the knowledge, experience, and commitment of all members. • Demise of ―command-and-control‖: Traditional top-down ―do as I say‖ bosses are giving way to participatory bosses who treat people with respect. • Emphasis on teamwork: Organizations are more horizontal in focus and driven by teamwork that pools talents for creative problem solving. • Preeminence of technology: New developments in computer and information technology continually change the way organizations operate and how people work. • Importance of networking: Organizations and their members are networked for intense, real-time communication and coordination. • New workforce expectations: A new generation of workers is less tolerant of hierarchy, more informal, attentive to performance merit, and concerned for work– life balance. • Priorities on sustainability: Social values show more attention to the preservation of natural resources for future generations and understanding how work affects human well-being. Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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115.

Discuss the hierarchical structure of typical business organizations. Answer: At the highest levels of business organizations, we find the board of directors whose members are elected by stockholders to represent their ownership interests. In nonprofit organizations such as a hospital or university, this level is often called a board of trustees, and it may be elected by local citizens, appointed by government bodies, or invited by existing members. The top managers including the chief executive officer (CEO), chief operating officer (COO), chief financial officer (CFO), chief information officer (CIO), chief diversity officer (CDO), president, and vice president constitute an executive team that reports to the board and is responsible for the performance of an organization as a whole or for one of its larger parts. Middle managers report to top managers and are in charge of relatively large departments or divisions consisting of several smaller work units. Examples are clinic directors in hospitals; deans in universities; and division managers, plant managers, and regional sales managers in businesses. Middle managers work with top managers, coordinate with peers, and support lower levels to develop and pursue action plans that implement organizational strategies to accomplish key objectives. Team leaders report to middle managers and supervise nonmanagerial workers. Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

116.

Briefly explain the four management functions. Answer: The four functions of management in what is called the management process are—planning, organizing, leading, and controlling. Planning is the process of setting performance objectives and determining what actions should be taken to accomplish them. Through planning, a manager identifies desired results and ways to achieve them. Organizing is the process of assigning tasks, allocating resources, and coordinating work activities. Leading is the process of arousing enthusiasm and inspiring efforts to achieve goals. Controlling is the process of measuring performance and taking action to ensure desired results. Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

117.

Discuss the various roles performed by a manager. Answer: The managerial roles fall into three categories—informational, interpersonal, and decisional roles. A manager‘s informational roles involve the giving, receiving, and analyzing of information. A manager fulfilling these roles will be a monitor, scanning for information; a disseminator, sharing information; and a spokesperson, acting as

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official communicator. The interpersonal roles involve interactions with people inside and outside the work unit. A manager fulfilling these roles will be a figurehead, modeling and setting forth key principles and policies; a leader, providing direction and instilling enthusiasm; and a liaison, coordinating with others. The decisional roles involve using information to make decisions to solve problems or address opportunities. A manager fulfilling these roles will be a disturbance handler, dealing with problems and conflicts; a resource allocator, handling budgets and distributing resources; a negotiator, making deals and forging agreements; and an entrepreneur, developing new initiatives. Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Text Entry 118.

Career ____ is a set of skills, competencies, aspirations, and goals that will advance your career, even in a rapidly changing environment.

Answer: readiness Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

119.

____ represents how hard you work to apply your talents and capabilities to important tasks.

Answer: Commitment, Commitments Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

120.

Tech ____ is the ability to use technology and to stay updated as technology continues to evolve.

Answer: IQ Learning Objective: 1.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

121.

Job ____ occurs when firms shift jobs from a home country to foreign ones.

Answer: migration, migrations Learning Objective: 1.1 Difficulty: Easy

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AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

122.

A(n) ____ system transforms resource inputs from the environment into product outputs.

Answer: open Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

123.

____ is the quantity and quality of work performance, with resource utilization considered.

Answer: Productivity Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

124.

Performance ____ is an output measure of task or goal accomplishment.

Answer: effectiveness Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

125.

Performance efficiency is a(n) ____ measure of resource cost associated with goal accomplishment.

Answer: input, inputs Learning Objective: 1.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

126.

____ managers oversee the work of large departments or divisions.

Answer: Middle Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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127.

Staff managers use special technical expertise to advise and support ____ workers.

Answer: line Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

128.

_____ is the requirement to show performance results to a supervisor.

Answer: Accountability Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

129.

The ____ pyramid view of organizations shows customers at the top being served by workers who are supported by managers.

Answer: upside-down, upside down Learning Objective: 1.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

130.

____ is the process of defining and assigning tasks, allocating resources, and providing resource support.

Answer: Organizing Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

131.

Controlling is the process of ____ performance and taking action to ensure desired results.

Answer: measuring Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

132.

____ setting develops action priorities for accomplishing goals and plans.

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Answer: Agenda Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

133.

Social ____ is a capacity to get things done with the support and help of others.

Answer: capital Learning Objective: 1.4 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

134.

Learning ____ is a willingness to grow, to learn, and to have insatiable curiosity.

Answer: agility Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

135.

A(n) ____ skill is the ability to use expertise to perform a task with proficiency.

Answer: technical Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

136.

____ intelligence is the ability to manage ourselves and our relationships effectively.

Answer: Emotional Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

137.

____ analysis identifies individual strengths and weaknesses, as well as environmental opportunities and threats.

Answer: SWOT

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Learning Objective: 1.5 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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Chapter 2: Management Learning Past to Present

True/False

The principles of scientific management were proposed by Frederick Taylor. Answer: True Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Coordination refers to providing and mobilizing resources to implement a plan. Answer: False Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Henri Fayol believed that management could be taught. Answer: True Learning Objective: 2.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Time study is the science of reducing a task to its basic physical motions. Answer: False Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Formal rules and procedures are defining characteristics of Weber‘s bureaucratic organization.

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Answer: True Learning Objective: 2.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

The four administrative principles account for our rapidly changing work environments by modifying the earlier developed four functions of management. Answer: False Learning Objective: 2.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Behavioral approaches assume that people are social and self-actualizing, enjoy social relationships, respond to group pressures, and search for personal fulfillment. Answer: True Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

After a series of scientific tests, Elton Mayo and his team of researchers concluded that new a ―social setting‖ created for workers in a test room decreased the productivity of those employees. Answer: False Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

According to Elton Mayo, people would restrict their output in order to avoid the displeasure of their group, even if it meant sacrificing pay that could otherwise be earned by increasing output. Answer: True Learning Objective: 2.2 Difficulty: Moderate

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AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

10.

The Hawthorne effect is the tendency of persons singled out for special attention to perform as expected. Answer: True Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

11.

According to the deficit principle, a satisfied need is a motivator of behavior. Answer: False Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

12.

According to the progression principle, a satisfied need does not motivate behavior. Answer: False Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

13.

Physiological needs and safety needs are higher-order needs in Maslow‘s hierarchy of human needs. Answer: False Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

14.

Maslow‘s ideas point managers toward finding ways to link volunteer work with opportunities to satisfy higher-order needs like esteem and selfactualization.

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Answer: True Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

15.

Managers holding Theory Y assumptions approach their jobs believing that those who work for them generally dislike work, lack ambition, act irresponsibly, and prefer to be led rather than to lead. Answer: False Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

16.

Managers who hold Theory Y assumptions cannot create self-fulfilling prophecies. Answer: False Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

17.

Argyris asserts that psychological success occurs when people define their own goals. Answer: True Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

18.

Argyris‘s theory of adult personality counters Fayol‘s concept of unity of direction. Answer: True Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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19.

A grocery store receives complaints from customers that the waiting time is too long for checkouts during certain times of the day. This problem can be solved by the queuing theory. Answer: True Learning Objective: 2.3 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

20.

A real estate developer wants to control costs and finish building a new apartment complex on time. This problem can be solved by inventory analysis. Answer: False Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

21.

People and technology are outputs in an open system. Answer: False Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

22.

Goods and services are inputs in an open system. Answer: False Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

23.

A tight bureaucracy works best when the environment is relatively stable and operations are predictable and uncomplicated. Answer: True Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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24.

Continuous improvement involves always searching for new ways to improve work quality and performance. Answer: True Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

25.

Knowledge management involves making decisions based on hard facts about what really works. Answer: False Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Multiple Choice

26.

Which of the following assumes that people at work rationally consider opportunities made available to them and do whatever is necessary to achieve the greatest personal and monetary gain? A. Classical management approach B. Theory X C. Theory of human needs D. Behavioral management approach E. Modern management approach Answer: A Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

27.

Which of the following is a classical management approach? A. Theory X B. Theory Y C. Human needs theory D. Hawthorne studies E. Administrative principles

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Answer: E Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

28.

_____ emphasizes careful selection and training of workers and supervisory support. A. Bureaucratic organization B. Theory X C. Theory Y D. Scientific management E. Administrative principles Answer: D Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

29.

Who is known as the father of scientific management? A. Henri Fayol B. Frederick Taylor C. Max Weber D. Douglas McGregor E. Abraham Maslow Answer: B Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

30.

The primary goal of scientific management is to: A. make decisions based on hard facts about what really works. B. use large databases and mathematics to solve problems. C. satisfy the physiological and psychological deficiencies of a person. D. improve the productivity of people by careful selection and training. E. make every employee an owner of a business organization. Answer: D Learning Objective: 2.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

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31.

Pizza Bliss, a pizza delivery chain, assures delivery of pizza within half an hour of the placement of order. It employs various methods like specialization of work, motion study, and analysis of routes to make sure that an order reaches a customer in half an hour. Which of the following management techniques is Pizza Bliss most likely using? A. Maslow‘s theory of human needs B. Bureaucratic organization C. Scientific management D. Hawthorne studies E. Theory X and Theory Y Answer: C Learning Objective: 2.1 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

32.

Which of the following led to advances in the areas of leader-member communication and bureaucracy? A. Administrative principles B. Theory of human needs C. Theory X D. Theory Y E. Motion study Answer: A Learning Objective: 2.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

33.

_____ is to complete a plan of action for the future. A. Foresight B. Organization C. Command D. Coordination E. Control Answer: A Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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34.

Which of the following best defines organization? A. To complete a plan of action for the future B. To provide and mobilize resources to implement a plan C. To lead, select, and evaluate workers to get the best work toward a plan D. To fit diverse efforts together and to ensure information is shared and problems are solved E. To make sure things happen according to a plan and to take necessary corrective action Answer: B Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

35.

_____ is to lead, select, and evaluate workers to get the best work toward a plan. A. Foresight B. Organization C. Command D. Coordination E. Control Answer: C Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

36.

The manager of a company fits diverse efforts together. He ensures that information is shared and problems are solved. Which of the following management functions is he performing? A. Foresight B. Organization C. Command D. Coordination E. Control Answer: D Learning Objective: 2.1 Difficulty: Moderate AACSB: Interpersonal relations and teamwork Bloom‘s Taxonomy: Comprehension

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37.

In a fresh juice manufacturing plant, the production team manufactures 2,000 bottles of juice per day while the sales team sells only 1,700 bottles per day. Since the product is perishable, the extra output incurs losses to the company. Hence, the manager intervenes and sets a common standard for both the teams. Which of the following management duties is the manager performing? A. Control B. Foresight C. Coordination D. Organization E. Command Answer: C Learning Objective: 2.1 Difficulty: Hard AACSB: Application of Knowledge Bloom‘s Taxonomy: Application

38.

_____ is to make sure things happen according to plan and to take necessary corrective action. A. Foresight B. Organization C. Command D. Coordination E. Control Answer: E Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

39.

A manager employs five workers to produce a total of 36 units of a product per day. He soon realizes that the workers are able to produce only 30 units a day. He then employs an additional worker to meet the set target. Which of the following duties of management is he performing while taking the corrective action? A. Foresight B. Organization C. Command D. Coordination E. Control Answer: E Learning Objective: 2.1 Difficulty: Hard AACSB: Application of Knowledge Bloom‘s Taxonomy: Application

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40.

Which of the following is true of the scalar chain principle? A. Each person should receive orders from only one boss. B. One person should be in charge of all activities that have the same performance objective. C. There should be a clear and unbroken line of communication from the top to the bottom in an organization. D. Guidelines must be written and kept for historical record. E. Workers should be selected and promoted on ability, competency, and performance. Answer: C Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

41.

A worker receives an order to meet the daily production target from one manager and an order to train the new workers from another. Which of the following principles does the company neglect? A. Scalar chain principle B. Unity of command principle C. Unity of direction principle D. Principle of motion study E. Principle of merit Answer: B Learning Objective: 2.1 Difficulty: Moderate AACSB: Application of Knowledge Bloom‘s Taxonomy: Application

42.

Which of the following is true of the unity of direction principle? A. One person should be in charge of all activities that have the same performance objective. B. Guidelines must be written and kept for historical record. C. Each person should receive orders from only one boss. D. There should be a clear and unbroken line of communication from the top to the bottom in an organization. E. Workers should be selected and promoted on ability, competency, and performance. Answer: A Learning Objective: 2.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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43.

Which of the following best pertains to clear division of labor? A. Rules and procedures are impartially and uniformly applied, with no one receiving preferential treatment. B. Jobs are well defined, and workers become highly skilled at performing them. C. Workers are selected and promoted on ability, competency, and performance, and managers are career employees of an organization. D. Written guidelines direct behavior and decisions in jobs, and written files are kept for historical record. E. Authority and responsibility are well defined for each position, and each position reports to a higher-level. Answer: B Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

44.

Which of the following best pertains to impersonality? A. Jobs are well defined, and workers become highly skilled at performing them. B. Workers are selected and promoted on ability, competency, and performance, and managers are career employees of an organization. C. Written guidelines direct behavior and decisions in jobs, and written files are kept for historical record. D. Authority and responsibility are well defined for each position, and each position reports to a higher-level. E. Rules and procedures are impartially and uniformly applied, with no one receiving preferential treatment. Answer: E Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

45.

At Infibeam Solutions, the workers under one manager are expected to follow specific timings for their shifts, and the workers under another manager are given the liberty of flexible timings. Which of the following characteristics of a bureaucracy has the company neglected? A. Clear division of labor B. Clear hierarchy of authority C. Unity of direction D. Careers based on merit E. Impersonality

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Answer: E Learning Objective: 2.1 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

46.

According to Max Weber, which of the following is an advantage of bureaucracy? A. Relatively less paperwork B. Flexibility in the face of shifting client needs C. Reliability and stringency of discipline D. Employee enthusiasm E. Speed in handling problems Answer: C Learning Objective: 2.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

47.

Which of the following is a disadvantage of bureaucracy? A. Preferential treatment of some employees B. Unclear division of labor C. Excessive paperwork D. Unclear hierarchy of authority E. Absence of written guidelines Answer: C Learning Objective: 2.1 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

48.

The _____ approaches assume that people are social and self-actualizing, enjoy social relationships, respond to group pressures, and search for personal fulfillment. A. classical B. scientific management C. contingency thinking D. behavioral E. modern Answer: D Learning Objective: 2.2 Difficulty: Moderate

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AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

49.

Which of the following is true of Follett‘s view on organizations? A. She viewed organizations as communities in which managers and workers should work in harmony. B. She warned against the dangers of less hierarchy. C. She supported the idea of managers dominating workers. D. She propagated the idea of workers working individually, rather than in a group. E. She believed that it wasn‘t a manager‘s job to help people cooperate with one another. Answer: A Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

50.

Which of the following management theories advocates employee ownership, profit sharing, and gain-sharing plans? A. McGregor‘s Theory X and Theory Y B. Hawthorne studies C. Fayol‘s Administrative Principles D. Maslow‘s hierarchy of needs E. Follett‘s organizations as communities Answer: E Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

51.

A manager wishes to implement the conclusions of the Hawthorne studies in her organization. To do so, she should: A. create written guidelines for workers. B. implement division of labor in the workplace. C. assure good human relations between workers. D. reduce a job or task to its basic physical motion. E. define authority and responsibility for each worker. Answer: C Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

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52.

A manager finds out that the productivity of her workers has declined. Therefore, she creates a new social setting for the workers, where they share pleasant social relations with one another and receive special attention from the supervisor. The manager has implemented lessons from _____ to improve the productivity of her workers. A. the scientific management theory B. the theory of human needs C. Theory X and Theory Y D. the Hawthorne studies E. Fayol‘s administrative principles Answer: D Learning Objective: 2.2 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

53.

According to Mayo‘s research team, _____ in a test room resulted in higher productivity. A. economic incentives B. good human relations C. scientific management D. adequate rest pauses E. timely measurement of production Answer: B Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

54.

Which of the following theories proposes that groups can have strong negative, as well as positive, influences on individual productivity? A. Scientific management theory B. Bureaucratic organization C. Theory X and Theory Y D. Hawthorne studies E. Administrative principles Answer: D Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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55.

Which of the following best describes the Hawthorne effect? A. It refers to the tendency of people who are singled out for special attention to perform as anticipated because of expectations created by the situation. B. It implies that satisfied need does not motivate behavior. C. It refers to a need that is activated only when the next-lower-level need is satisfied. D. It implies that people dislike work, lack ambition, act irresponsibly, and prefer to be led. E. It implies that people are willing to work, like responsibility, and are selfdirected and creative. Answer: A Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

56.

The deficit principle states that: A. a need is activated only when the next-lower-level need is satisfied. B. people dislike work, lack ambition, act irresponsibly, and prefer to be led. C. people are willing to work, like responsibility, and are self-directed and creative. D. people at work rationally consider opportunities made available to them and do whatever is necessary to achieve the greatest personal and monetary gain. E. a satisfied need is not a motivator of behavior. Answer: E Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

57.

Klark, an employee of Relkins & Sons Ltd., earns a good compensation, owns a house, has a stable job, and is close to his family and friends. He has been recognized as a good manager, respected by his subordinates, and has mastered his managerial skills. His company offers to pay his house rent if he negotiates a deal with a particular client. This offer fails to motivate him. Which of the following principles explains Klark‘s behavior? A. Progression principle B. Principle of motion study C. Deficit principle D. Hawthorne effect E. Self-fulfilling prophecy Answer: C

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Learning Objective: 2.2 Difficulty: Hard AACSB: Application of Knowledge Bloom‘s Taxonomy: Application

58.

Which of the following management theories is based on the deficit principle and the progression principle? A. Administrative principles B. Maslow‘s theory of human needs C. Scientific management D. Hawthorne studies E. Theory X and Theory Y Answer: B Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

59.

Which of the following refers to the lowest needs in Maslow‘s hierarchy of human needs? A. Esteem needs B. Self-actualization needs C. Social needs D. Safety needs E. Physiological needs Answer: E Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

60.

The progression principle states that: A. a need is activated only when the next-lower-level need is satisfied. B. people dislike work, lack ambition, act irresponsibly, and prefer to be led. C. people are willing to work, like responsibility, and are self-directed and creative. D. people at work rationally consider opportunities made available to them and do whatever is necessary to achieve the greatest personal and monetary gain. E. a satisfied need does not motivate behavior. Answer: A Learning Objective: 2.2 Difficulty: Easy

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AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

61.

Leonard works in a company where he receives minimum wages. He does not have sufficient money to pay his medical bills. His manager offers to award him with a ―Best Worker‖ certificate if he increases his productivity. This offer fails to motivate him. Which of the following explains Leonard‘s behavior? A. Progression principle B. Principle of motion study C. Deficit principle D. Hawthorne effect E. Weber‘s bureaucracy theory Answer: A Learning Objective: 2.2 Difficulty: Hard AACSB: Application of Knowledge Bloom‘s Taxonomy: Application

62.

Recognition is an example of: A. safety needs. B. esteem needs. C. self-actualization needs. D. physiological needs. E. social needs. Answer: B Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

63.

Which of the following matches correctly? A. Affection—Esteem needs B. Protection—Self-actualization needs C. Prestige—Safety needs D. Physical well-being—Physiological needs E. Mastery—Social needs Answer: D Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

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64.

Which of the following is an example of a self-actualization need? A. Need for self-fulfillment B. Mastery C. Affection D. Protection E. Physical well-being Answer: A Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

65.

The CEO of Charter & Co. has a good compensation, a house, a family, and many friends. He is respected by his employees and is recognized as an efficient manager. Now, he wants to start his own company. Which of the following needs is he responding to? A. Social needs B. Esteem needs C. Physiological needs D. Self-actualization needs E. Safety needs Answer: D Learning Objective: 2.2 Difficulty: Moderate AACSB: Application of Knowledge Bloom‘s Taxonomy: Application

66.

The worker of a company earns a wage that provides with him good food, shelter, and a good standard of living. According to the progression principle, which of the following needs is most likely to motivate him next? A. Recognition B. Mastery C. Protection D. Self-fulfillment E. Affection Answer: E Learning Objective: 2.2 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

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67.

The worker of a company is motivated by the need for security, protection, and stability in the events of his day-to-day life. According to the progression principle, which of the following needs has already been satisfied? A. Safety needs B. Cultural needs C. Social needs D. Esteem needs E. Physiological needs Answer: A Learning Objective: 2.2 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

68.

At the level of _____ needs, the deficit and progression principles cease to operate. A. self-actualization B. social C. safety D. esteem E. physiological Answer: A Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

69.

Penny is the manager at Peace, an international campaigning organization where volunteers work without being paid. According to Maslow‘s theory, which of the following needs should Penny focus on to increase the productivity of the volunteers? A. Physical well-being B. Safety C. Esteem D. Mastery E. Protection Answer: C Learning Objective: 2.2 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

70.

According to McGregor‘s Theory X, _____.

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A. B. C. D. E.

people are social and self-actualizing a satisfied need does not motivate behavior people at work rationally consider opportunities made available to them a need is activated only when the next-lower-level need is satisfied people dislike work, lack ambition, act irresponsibly, and prefer to be led

Answer: E Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

71.

According to McGregor‘s Theory Y, _____. A. people are willing to work, like responsibility, and are self-directed and creative B. people are social and self-actualizing C. a satisfied need does not motivate behavior D. people at work rationally consider opportunities made available to them E. a need is activated only when the next-lower-level need is satisfied Answer: A Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

72.

Which of the following is true of a self-fulfilling prophecy? A. It does not occur to managers who hold Theory X assumptions. B. It occurs when a person acts in ways that confirm the person‘s expectations. C. It does not occur to managers who hold Theory Y assumptions. D. It is the tendency of persons singled out for special attention to perform as expected. E. It tries to match management practices with situational demands. Answer: B Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

73.

Cooper is a manager who assumes that his employees dislike work and act irresponsibly. He tries to command and control his workers in every possible way. According to the self-fulfilling prophecy, Cooper‘s employees are most likely to: A. take initiatives.

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B. C. D. E.

become creative. become passive. be self-directed. perform responsibly.

Answer: C Learning Objective: 2.2 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

74.

Margaret is a manager who assumes that her workers are willing to perform well, like responsibility, and are self-directed. She encourages them to be more involved in their jobs and grants them reasonable freedom. Margaret‘s subordinates are most likely to: A. act passively. B. become dependent. C. perform reluctantly. D. perform irresponsibly. E. take initiatives. Answer: E Learning Objective: 2.2 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

75.

Which of the following is TRUE of managers with Theory X and Theory Y assumptions? A. People are willing to work and like responsibility. B. People are self-directed and creative. C. These theories typically create responsible workers. D. These theories create self-fulfilling prophecies. E. These theories create opportunities to satisfy esteem and self-actualizing needs. Answer: D Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

76.

According to Argyris, _____. A. managers who treat people positively and as responsible adults will achieve the highest productivity B. the principle of specialization increases opportunities for self-actualization

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C. bureaucracy allows workers to control their work D. the concept of unity of direction leads to psychological success E. people dislike work, lack ambition, act irresponsibly, and prefer to be led Answer: A Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

77.

What was the disadvantage Argyris found in Weber‘s bureaucratic model? A. It would create passive, dependent workers. B. It limits opportunities for self-actualization. C. It would create conditions for psychological failure. D. It creates a lenient work environment. E. It disregards motion study. Answer: A Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

78.

Argyris‘s theory of adult personality differs from the scientific management theory in that Argyris‘s theory: A. develops rules of motion. B. develops a clear and consistent approach to work. C. proposes excessive supervision of employees. D. uses the concept of ―time study‖ to improve efficiency. E. criticizes the principle of specialization. Answer: E Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

79.

According to Argyris‘s theory of adult personality, which of the following creates dependent and passive workers? A. Weber‘s bureaucracy B. Organizations as systems C. Organizations as communities D. Scientific management E. Maslow‘s theory of human needs Answer: A

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Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

80.

According to Argyris‘s theory of adult personality, which of the following may create conditions for psychological failure? A. The deficit principle B. The progression principle C. The concept of motion study D. The concept of unity of direction E. The principle of specialization Answer: D Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

81.

_____ is the use of large databases and mathematics to solve problems and make informed decisions using systematic investigation. A. Analytics B. Evidence-based management C. Total quality management D. Contingency thinking E. Proxemics Answer: A Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

82.

A coal extracting company is worried about the depleting coal reserves in various parts of the world. It wants to make future projections for reserve sizes and depletion rates that are useful in the planning process. Which of the following quantitative approaches should the company apply? A. Inventory analysis B. Mathematical forecasting C. Queuing theory D. Linear programming E. Network models Answer: B Learning Objective: 2.3 Difficulty: Moderate

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AACSB: Analytic thinking Bloom‘s Taxonomy: Comprehension

83.

A food chain is getting complaints from customers that the waiting time is too long from the time of order placement to the time of delivery during certain times of the day. The outlet wants to allocate service personnel and workstations based on alternative workload demands and in a way that minimizes both customer waiting times and costs of service workers. Which of the following quantitative approaches is the outlet most likely to apply? A. Inventory analysis B. Mathematical forecasting C. Queuing theory D. Linear programming E. Network models Answer: C Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytic thinking Bloom‘s Taxonomy: Comprehension

84.

_____ helps control stocks by mathematically determining how much to automatically order and when. A. Queuing theory B. Mathematical forecasting C. Inventory analysis D. Linear programming E. Network models Answer: C Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

85.

Which of the following is true of linear programming? A. It makes future projections useful in the planning process. B. It helps control inventories by mathematically determining how much to automatically order and when. C. It allocates service personnel and workstations based on alternative workload demands. D. It calculates how best to allocate production among different machines. E. It breaks large tasks into smaller components and diagrams them in stepby-step sequences. Answer: D

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Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

86.

Network models are used to: A. make future projections useful in the planning process. B. control inventories by mathematically determining how much to automatically order and when. C. allocate service personnel and workstations based on alternative workload demands. D. calculate how best to allocate production among different machines. E. break large tasks into smaller components and diagram them in step-bystep sequences. Answer: E Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

87.

_____ allow project managers to analyze, plan, and control timetables for the completion of activity sub-sets. A. Linear programming B. Bureaucracy C. Network models D. Queuing theory E. Inventory analysis Answer: C Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

88.

A _____ is a collection of interrelated parts working together for a purpose. A. contingency B. system C. motion study D. cost center E. safety need Answer: B Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking

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Bloom‘s Taxonomy: Knowledge

89.

In an open system, which of the following is an input? A. An oven used by a baker B. A service offered by a baker C. A special type of cheese offered by a deli D. A loaf of bread made by a baker E. A sandwich sold at a deli Answer: A Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

90.

In an open system, which of the following is an output? A. Technology B. People C. Supplies D. Money E. Goods Answer: E Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

91.

_____ tries to match managerial responses with problems and opportunities specific to different people and settings. A. Total quality management B. Knowledge management C. Evidence-based management D. Contingency thinking E. Quantitative analysis Answer: D Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

92.

Which of the following works best in a stable and predictable environment? A. Tight bureaucracy

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B. C. D. E.

Evidence-based management Human relations approach Knowledge management Quality management

Answer: A Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

93.

From a contingency perspective, a tight bureaucracy: A. is a dynamic way of organizing things. B. is best suited in organizations that are quick in adapting to changing circumstances. C. is best suited for quick handling of problems. D. works best in a relatively unstable environment. E. works best when the operations are predictable and uncomplicated. Answer: E Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

94.

_____ is an organization-wide commitment to continuous improvement, product attribute, and customer needs. A. Quantitative analysis B. Total quality management C. Theory X D. Theory Y E. Scientific management Answer: B Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

95.

Which of the following is true of total quality management? A. It makes quality principles part of an organization‘s strategic objectives. B. It is applied only to a few aspects of operations. C. It applies exclusively to managers. D. It applies to the inputs of a system. E. It is a one-time improvement process.

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Answer: A Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

96.

Which of the following is a predominant principle of total quality management? A. Contingency thinking B. Continuous improvement C. Quantitative analysis D. Progression principle E. Deficit principle Answer: B Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

97.

An ISO certification is a global indicator of the importance of: A. knowledge management. B. evidence-based management. C. total quality management. D. quantitative analysis. E. contingency thinking. Answer: C Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

98.

Which of the following best describes evidence-based management? A. It is the process of using intellectual capital for competitive advantage. B. It involves making decisions based on hard facts about what really works. C. It is the use of large databases and mathematics to solve problems. D. It is the science of reducing a task to its basic physical motions. E. It emphasizes careful selection and training of workers and supervisory support. Answer: B Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

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99.

Which of the following holds true for evidence-based management? A. It does not use evidence from the local context. B. An evaluation of the available research evidence is unnecessary. C. It does not use ―dangerous half-truths‖ as evidence. D. The perspectives of those people affected by a decision are irrelevant. E. It does not make decisions based on ―hard facts.‖ Answer: C Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

100.

Which of the following criteria is useful to determine a good scientific method? A. Research question or problem remains unidentified. B. Data are rigorously gathered, analyzed, and interpreted. C. Hypothesis obtained are irrelevant as evidences. D. No hypothesis is stated as an explanation. E. A research design is formed at the last stage of the conclusion. Answer: B Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

101.

Antoinette, the CEO of Magnum Heights, believes that employees who feel they are part of the organization in which they work are likely to exhibit better productivity. Keeping these ideals in mind, she has adopted a scheme in which employees are offered shares of the company. Which managerial theory does Antoinette demonstrate? A. Weber‘s bureaucracy model B. McGregor‘s Theory X C. Follett‘s organizations as communities D. Fayol‘s administrative principles E. Taylor‘s scientific management Answer: C Learning Objective: 2.1 Difficulty: Moderate AACSB: Application of knowledge Bloom‘s Taxonomy: Application

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102. Ronald was chosen as the assistant manager because of his skill to manage employees and work out solutions for emerging problems. In his organization, jobs are well defined, and employees become experts at what they do. There is a formal chain of command, yet there is no favoritism. According to this information, choose the approach to management that has been adopted by John‘s organization. A. Maslow‘s theory of human needs B. Evidence-based management C. Bureaucracy D. Taylor‘s managerial approach E. Scalar chain system Answer: C Learning Objective: 2.1 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

103. Mr. Reymont, the founder of Reymont Public School, set multiple guidelines and rules about each governing body and the hierarchical structure. He has set up a system to ensure that crucial information reaches all stakeholders in the organization. This has helped in the smooth functioning of the school and avoided managerial overrides. Which of the following principles has Mr. Reymont adhered to in this scenario? A. Scalar chain of principle B. Progression principle C. Deficit principle D. Participative management E. Total quality management Answer: A Learning Objective: 2.1 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

104. Angelica and her team of tailoring workers were put on an experimental task to see if a particular amount of work could be achieved in a week. The team worked as expected and completed the given amount of work in the given time. The members of the group were rated high on cohesiveness, and the coworkers were influenced by the energy of a few enthusiastic workers in the group. Which of the following does this behavior demonstrate? A. Scalar chain of principle B. Hawthorne effect C. Deficit principle D. Progression principle E. Self-concordance

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Answer: B Learning Objective: 2.2 Difficulty: Hard AACSB: Application of Knowledge Bloom‘s Taxonomy: Application

105. Which of the following employees can be categorized under McGregor‘s Theory Y? A. Vivian accepts her new role as a manager and strives to fulfill her responsibilities. B. Richards limits his imaginative skills, which results in his underperformance. C. Cassandra is resistant and rigid to her new work environment. D. Annie depends on her manager for direction and support. E. Cathleen refuses to delegate work to her subordinates. Answer: A Learning Objective: 2.2 Difficulty: Hard AACSB: Application of Knowledge Bloom‘s Taxonomy: Application

106. Derek, a 36-year-old bachelor, works for a security company. His employer has provided him with living quarters along with the minimum wage he receives. He doesn‘t have any close friends or family. According to Maslow‘s progression principle, which of the following needs of Derek is being fulfilled at present? A. Physiological needs B. Achievement needs C. Social needs D. Esteem needs E. Self-actualization needs Answer: A Learning Objective: 2.2 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

107. Mr. Gold believes in Argyris‘s theory of adult personality. He does not weigh down his subordinates, nor does he discriminates them by their age or intelligence. He does not limit their opinions, but rather encourages them to define their own strategies and goals. What is the reason for this approach of Mr. Gold? A. A satisfied need does not fail to motivate behavior.

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B. C. D. E.

Limitations cause psychological failure. It creates a clear hierarchy of authority. Limitations to self-actualization opportunities increase productivity. It adheres to the unity of direction principle.

Answer: B Learning Objective: 2.2 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

108. Adrian is worried about his factory‘s consecutive decrease in profits due to the goods that are damaged in the storehouse. This has increased his cost of factors of production. In an attempt to tackle the problem, he has set up a system of measuring the needs of his clients and manufacturing the required number of products. Which of the following approaches has Adrian adopted? A. Mathematical forecasting B. Queuing theory C. Linear programming D. Inventory analysis E. Network models Answer: D Learning Objective: 2.3 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

109. Vernon‘s team has published a quarterly report that shows a significant decline in sales regarding a particular retailer. Till now, the retailer has been a profitable customer for Vernon‘s company. Vernon needs to find out the problem and deal with the situation quickly. In this situation, which of the following management styles would be most appropriate for Vernon to adopt? A. Quality management B. Knowledge management C. Contingency thinking D. Networks model E. Linear programming Answer: C Learning Objective: 2.3 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

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110. Brad, a manager at an online shopping company, wants to figure out a way for cost effective logistics. While a few suggestions have been made by his colleagues, Brad wants to select only that technique that has been proved to be effective according to hard facts. In this situation, which of the following approaches is being adopted by Brad? A. Evidence-based management B. Knowledge management C. Total quality management D. Contingency thinking E. Linear programming Answer: A Learning Objective: 2.3 Difficulty: Hard AACSB: Application of knowledge Bloom‘s Taxonomy: Application

Essay

111. Explain the conclusion of the Hawthorne studies. Answer: Elton Mayo and his colleagues conducted the Hawthorne studies and concluded that the new ―social setting‖ created for workers in the test room made them want to do a good job. They shared pleasant social relations with one another and received lots of special attention that made them feel important. They were given a lot of information and were frequently asked for their opinions. Mayo‘s team concluded that good ―human relations‖ in the test room seemed to result in higher productivity. Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Comprehension

112. Explain the two underlying principles that form the basis for Maslow‘s theory of human needs. Answer: Abraham Maslow described a need as a physiological or psychological deficiency a person feels the compulsion to satisfy, suggesting that needs create tensions that can influence a person‘s work attitudes and behaviors. Maslow‘s theory is based on two underlying principles. The first is the deficit principle—a satisfied need is not a motivator of behavior. People act to satisfy ―deprived‖ needs, those for which a satisfaction ―deficit‖ exists. The second is the progression principle—the five needs exist in a hierarchy of ―prepotency.‖ A need at any level is activated only when the next-lower-level need is satisfied. Learning Objective: 2.2

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Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

113. What are the two different assumptions that create a self-fulfilling prophecy? Answer: Theory X and Theory Y are the two assumptions that create selffulfilling prophecies. Managers with Theory X assumptions, for example, act in a very directive ―command-and-control‖ fashion that gives people little personal say over their work. These supervisory behaviors create passive, dependent, and reluctant subordinates, who tend to do only what they are told to or required to do. This reinforces the original Theory X viewpoint. In contrast to Theory X, managers with Theory Y assumptions tend to behave in ―participative‖ ways that allow subordinates more job involvement, freedom, and responsibility. This creates opportunities to satisfy esteem and selfactualization needs; workers tend to perform as expected with initiative and high performance. Learning Objective: 2.2 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

114. Discuss organizations as systems. Answer: Organizations have long been described as cooperative systems that achieve great things by combining resources and the contributions of many individuals to achieve a common purpose. But the reality is that cooperation among the many people and parts is often imperfect and can be improved. That is why it‘s important to understand the full complexity of an organization as a system of interrelated parts or subsystems that work together to achieve a common purpose. It is helpful to view organizations as open systems that interact with their environment in a continual process of transforming inputs— people, technology, information, money, and supplies—into outputs—goods and services for their customers and clients. Learning Objective: 2.3 Difficulty: Moderate AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge Text Entry 115. ____ management emphasizes careful alignment of worker training, incentives, and supervisory support with job requirements. Answer: Scientific Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking

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Bloom‘s Taxonomy: Knowledge

116. A(n) ____ study is the science of reducing a task to its basic physical motions. Answer: Motion Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

117. A(n) _____ is a rational and efficient form of organization founded on logic, order, and legitimate authority. Answer: bureaucracy Learning Objective: 2.1 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

118.

Organizational ____ is the study of individuals and groups in organizations.

Answer: behavior Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

119. The ____ effect is the tendency of persons singled out for special attention to perform as expected. Answer: Hawthorne Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

120. A need is a physiological or psychological _____ that a person feels compelled to satisfy. Answer: deficiency Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

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121. According to the ____ principle, a satisfied need does not motivate behavior. Answer: deficit Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

122. According to the progression principle, a need is activated only when the next-lower-level need is _____. Answer: satisfied Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

123. Theory _ assumes people dislike work, lack ambition, act irresponsibly, and prefer to be led. Answer: X Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

124. Theory ___ assumes people are willing to work, like responsibility, and are self-directed and creative. Answer: Y Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

125. A self-fulfilling prophecy occurs when a person acts in ways that confirm another‘s _____. Answer: expectations, expectation Learning Objective: 2.2 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

126. Data analytics is the ____ analysis of large databases to solve problems and make informed decisions.

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Answer: systematic Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

127. A(n) ____ is a collection of interrelated parts working together for a purpose. Answer: system Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

128.

A(n) ____ is a smaller component of a larger system.

Answer: subsystem, sub-system Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

129. A(n) ____ system interacts with its environment and transforms resource inputs into outputs. Answer: open Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

130. _____ thinking tries to match management practices with situational demands. Answer: Contingency Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

131. Total ____ management is an organization-wide commitment to continuous improvement, product quality, and customer needs. Answer: quality Learning Objective: 2.3

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Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

132. Continuous improvement involves searching for ____ ways to improve work quality and performance. Answer: new Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

133. ____ certification indicates conformance with a rigorous set of international quality standards. Answer: ISO Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

134. ____ management involves making decisions based on hard facts about what really works. Answer: Evidence-based, Evidence based Learning Objective: 2.3 Difficulty: Easy AACSB: Analytical thinking Bloom‘s Taxonomy: Knowledge

Chapter 03: Ethics and Social Responsibility

True/False

Values are broad beliefs about what is appropriate behavior. Answer: True Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

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Terminal values are preferences regarding the means to desired ends. Answer: False Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

Among the terminal values held important by managers are honesty, ambition, imagination, and self-discipline. Answer: False Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

The utilitarian view considers ethical behavior to be that which delivers the greatest good to the greatest number of people. Answer: True Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

Cultural view is based on the belief that ethical decisions treat people impartially and fairly, according to legal rules and standards. Answer: False Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

Procedural justice involves the degree to which policies and rules are fairly applied to all individuals. Answer: True Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

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Distributive justice is the degree to which others are treated with dignity and respect. Answer: False Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

Commutative justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria. Answer: False Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

Ethical behavior is determined by its cultural context. Answer: True Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

10.

Cultural relativism suggests ethical standards apply universally across all cultures. Answer: False Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

11.

Ethical imperialism is an attempt to impose one‘s ethical standards on other cultures. Answer: True Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

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12.

Cultural relativism is a form of ethical imperialism. Answer: False Learning Objective: 3.1 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

13.

An ethical dilemma is a situation that offers potential benefit or gain and that may also be considered unethical. Answer: True Learning Objective: 3.2 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

14.

Questions such as ―Is it legal?,‖ ―Is it right?,‖ ―Whom does it affect?,‖ ―Who benefits?,‖ and ―Who gets hurt?‖ are referred to as spotlight questions. Answer: False Learning Objective: 3.2 Difficulty: Moderate AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Comprehension

15.

Asking and answering spotlight questions when having to make an uncomfortable decision is a powerful way to double-check and test whether a decision is consistent with an individual‘s personal ethical standards. Answer: True Learning Objective: 3.2 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

16.

In Kohlberg‘s preconventional level of moral development, moral thinking is largely limited to issues of punishment, obedience, and personal interest. Answer: True Learning Objective: 3.2 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

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17.

In Kohlberg‘s conventional level of moral development, the individual is strongly principle-centered. Answer: False Learning Objective: 3.2 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

18.

The ethics culture in an organization sets high standards and may even push people to behave more ethically than they otherwise would. Answer: True Learning Objective: 3.2 Difficulty: Moderate AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

19.

A common statement by a rationalizer is ―It‘s in everyone‘s best interests.‖ This response involves the mistaken belief that because someone can be found to benefit from the behavior, the behavior is also in the individual‘s or the organization‘s best interests. Answer: True Learning Objective: 3.2 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

20.

Government laws and regulations can describe and encourage ethical behavior, but they can‘t guarantee ethical conduct. Answer: True Learning Objective: 3.2 Difficulty: Easy AACSB: Ethical understanding and reasoning Bloom‘s Taxonomy: Knowledge

21.

An amoral manager chooses to behave unethically. Answer: False Learning Objective: 3.3 Difficulty: Easy AACSB: Ethical understanding and reasoning

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