In the twenty-first century the four functions of management are:

A) monitoring, organizing, suggesting, and accommodating employees.

B) planning, organizing, controlling, and leading employees.
C) planning, organizing, suggesting, and accommodating employees.
D) monitoring, suggesting, journaling, and accommodating employees.

Don MacKinnon, the person in charge of "Hear Music" has been given goals
related to the rollout and sales of this subsidiary of Starbucks. His success at
implementing the strategy will be assessed by comparing actual performance
against the goals. This comparison is known as:
A) planning.
B) organizing.
C) implementing.
D) controlling.

The three main types of managers include:

A) general, specific, and frontline managers.
B) general, specific, and detailed managers.
C) general, functional, and frontline managers.
D) general, functional, and detailed managers.

Because GE is organized into different divisions, one for each business, it is known
as a:
A) multidivisional enterprise.
B) poorly managed firm.
C) multi-business unit.
D) multi-corporate concern.

The most demanding issues that managers encounter in their first year on the job
all have to do with:
A) learning the financial ratios of their department.
B) learning to interface with the government.
 C) learning to scan the environment for things that would influence their
business strategy.
D) people challenges.

A successful person in which of the following positions may be promoted to a

management position?
A) a scientist
B) an accounting professional
C) an engineer
D) All of the above may lead to successful management positions.

One of the earliest and most enduring descriptions of managerial roles comes from:
A) Adam Smith.
B) Peter Drucker.
C) Jack Welsh.
D) Henry Mintzberg.

In a spokesperson managerial role, a CEO may persuade investment analysts that

his or her company is pursuing a good strategy. What is the likely outcome of
this?
A) The analysts may write a favorable investment report that leads to a
decrease in the company's stock price.
B) The analysts may write a favorable investment report that leads
to an increase in the company's stock price.
C) The analysts may write a favorable investment report that increases
the difficulty of raising new capital.
D) The analysts may write a favorable investment report that makes it
difficult to issue new stock.

Competencies include:
A) skills, IQ, and values.
B) skills, IQ, and motivational preferences.
C) IQ, values, and motivation.
D) skills, values, and motivational preferences.
When call center managers spend much of their time monitoring customer calls
and giving employees feedback about how to improve their dialogue with
customers in the future, these managers are using __________ skills.
A) technical
B) conceptual
C) situational
D) ethical

The general environment includes:

A) rivals.
B) complementors.
C) economic forces.
D) buyers.

SWOT stands for:

A) systems, weaknesses, origins, and threats.
B) strengths, weaknesses, opportunities, and threats.
C) strengths, weaknesses, origins, and threats.
D) strengths, weaknesses, opportunities, and treaties.

Which of the following gives buyers more power according to the five forces
model?
A) There are many buyers.
B) Switching costs are high.
C) They can choose between equivalent products from many firms.
D) They purchase small quantities.

The existence of close substitutes for a product is a strong competitive threat

because this limits:
A) the advertising that can occur in the industry.
B) the available locations of companies in the industry.
C) the prices that companies in one industry can charge for their
goods.
D) the number of people willing to serve as employees in the industry.
Intense rivalry between incumbents is a threat that:
A) increases sales of established enterprises.
B) reduces profits of established enterprises.
C) increases profits of established enterprises.
D) has no effect on profits of established enterprises.

Industry changes resulting from changes in laws and regulations are called:
A) economic forces.
B) sociocultural forces.
C) international forces.
D) political and legal forces.

When the United States steel industry persuaded the President to impose a 30
percent tariff on imports of foreign steel into the U.S., the intensity of rivalry in the
U.S. steel market:
A) was increased.
B) stayed the same.
C) was reduced.
D) increased the intensity of rivalry in the foreign marketplace.

Falling barriers to international trade __________ profitability in the domestic

country.
A) increase
B) encourage the same level of
C) has no effect on
D) decrease

Changes that do not alter the basic nature of competition in the task environment
are called:
A) substantive changes.
B) continuous changes.
C) incremental changes.
D) equilibrium changes.
The flexible work practices that are used by SW Airlines to boost productivity and
reduce costs may be categorized as which part of the internal environment of SW?
A) tangible resources
B) human capital
C) internal organization
D) intangible resources.

The process whereby national economies and business systems are becoming
deeply interlinked with each other is called:
A) globalization.
B) glocalization.
C) internationalization.
D) global linking.

Which of the following statements identifies a key difference between a market

economy and a socialist economy?
A) In a market economy there is more government intervention than in a
socialist economy.
B) In a market economy prices are set by the interaction of supply
and demand, while in a socialist economy the prices are set by the state.
C) In a market economy most large businesses are state owned, while in
a socialist economy only small businesses are state owned.
D) In a market economy private producers are excluded from certain
commercial
activities, while in a socialist economy there are no exclusions for private
producers

According to data from the World Trade Organization, from 1970 to 2004 the
volume of world merchandise trade expanded almost:
A) 26-fold.
B) 10 percent.
C) double.
D) 10-fold.
Which of the following is an example of the globalization of production?
A) Coca-Cola sells their soft drinks worldwide.
B) Hospitals outsource some radiology work to India.
C) Caterpillar and Komatsu both sell earthmoving equipment worldwide.
D) Boeing sells jet planes to firms in Japan.

The constraints limiting the pace of globalization include which of the following?
A) protectionist countertrends
B) national differences in consumer behavior
C) national differences in business systems
D) All of the above limit the pace of globalization.

Protectionist countertrends to globalization include:

A) the idea that international trade promotes economic growth and raises
living standards.
B) the argument that international trade destroys jobs.
C) the suggestion that open foreign markets help the American economy.
D) lower barriers to cross-border trade in agriculture.

Any business that has productive activities in two or more countries is called a:
A) multilocational enterprise.
B) multinational enterprise.
C) multiglobal enterprise.
D) multilevel firm.

Which of the following statements is most consistent with market expansion

through globalization?
A) By serving domestic and international markets a firm may be able to
utilize its production facilities less intensively.
B) Different locations around the world are more or less suitable for
performing different business activities.
C) Valuable skills are developed first at overseas and then transferred to
foreign operations.
D) When managers at a firm have built a valuable competency or skill,
going global is often the best way to maximize the return on their investment.
Which of the following is a decision that must be made when a firm goes global?
A) local standardization or global customization
B) how best to manage subsidiaries
C) whether to operate under host country or home country laws
D) in a publicly traded firm, which sets of accounting practices to use

Which of the following statements about global standardization is most accurate?

A) An enterprise realizes substantial scale economies.
B) An enterprise varies some aspect of its products but not its marketing
messages.
C) An enterprise varies some aspect of its marketing messages but not its
products.
D) An enterprise is taking into account local business systems and
culture.

The quest to maximize profitability should be constrained by:

A) unethical obligations.
B) lack of social responsibility.
C) stakeholders.
D) ethical obligations.

The process by which companies identify the most important stakeholders is

called:
A) stakeholder importance evaluation.
B) stakeholder impact analysis.
C) shareholder impact evaluation.
D) shareholder analysis.

If shareholders sell off their shares because they are not pleased with management
decisions, which of the following is the most likely result?
A) Nothing adverse will happen.
B) Key employees will certainly leave.
C) Revenues will fall.
D) The cost of capital will rise.
Accepted principles of right or wrong governing the conduct of businesspeople are
called:

A) business values.
B) business ethics.
C) business principles.
D) business conduct.

__________ behavior tends to arise when mangers decide to put the attainment of
their own personal goals, or the goals of the organization, above the fundamental
rights of one or more stakeholder groups.
A) Unethical
B) Confusing
C) Complementary
D) Situational

Which of the following actions will likely lead to organizational ethical behavior?

A) promoting moral courage

B) establishing an ethics office
C) developing strong governance processes
D) all of the above

Which of the following is one of the questions that can be used to determine
whether a decision is ethical?
A) Does my decision fall within the accepted values or standards that typically
apply in the organizational environment?
B) Would the people with whom I have a significant personal relationship
approve of the decision?
C) Am I willing to see the decision communicated to all stakeholders affected
by it?
D) All of the above are questions that can be used to determine whether a
decision is ethical.

Strong corporate governance procedures are needed to ensure that:

 A) stock prices remain high.
B) managers carry out business unit plans.
C) managers adhere to ethical norms.
D) all of the above occur.

Socially responsible behavior:

A) never leads to improved financial performance.
B) has adverse impact on stakeholders.
C) is in a firm's self-interest.
D) results in ill-will from the community.
Planning

Planning includes which of the following steps?

A) choosing goals
B) identifying actions
C) reviewing performance
D) all of the above

Planning is a primary function of :

A) front-line staff.
B) management.
C) the marketing department.
D) the accounting department.

The strategy concerned with deciding which industries a firm should compete in
and how the firm should enter or exit industries is a(n):
A) strategic plan.
B) business-level strategy.
C) corporate-level strategy.
D) operating strategy.

The plan that human resource personnel might develop for hiring a sales force to
sell a new product the division has developed is called a(n):
A) operating plan.
B) unit plan.
 C) operating strategy.
D) business-level plan.
Plans that address unique events that do not reoccur are called:
A) single-use plans.
B) standing plans.
C) strategic plans.
D) operating plans.

Which of the following statements about preparing for a crisis is most accurate?
A) Preparation requires everyone in the organization to be a spokesperson
for the organization.
B) Preparation requires a general plan of how to deal with the crisis.
C) Managing the aftermath of the crisis is taken care of in the containment
stage.
D) Preparation requires an organization to designate a crisis
management team.

The strategic planning process begins with:

A) feedback from employees.
B) performing a SWOT analysis.
C) defining the mission, vision, and values of the organization.
D) drafting an action plan.

Kodak's mission statement is to provide "customers with the solutions they need to
capture, store, process, output, and communicate imagesanywhere, anytime." It
is an example of a good mission statement because:
A) it focuses on the product Kodak produces.
B) a functional component is included.
C) it focuses on Kodak's customers.
D) all of the above apply.

Which of the following statements is true of strategic planning?

A) Planning is a central task of the accounting function.
B) Strategic planning has no impact on company performance.
 C) Some management theorists assert that the best strategies arise in
the absence of planning, and that planning can limit creativity and freedom of
action.
D) Planning is not part of a good strategy formulation process because the
environment changes so quickly.

The rational decision-making model is:

A) a perfect model for decision-making.
B) reasonable except for one problem: dialectic inquiry.
C) reasonable except for one problem: bounded rationality.
D) reasonable except for one problem: the outside view.

Which of the following actions does Wal-Mart take to lower its prices?
A) Wal-Mart uses distribution centers.
B) Wal-Mart invests in state-of-the-art information systems.
C) Sam Walton's stores are self-service.
D) Wal-Mart does all of the above to lower its prices.

For most business firms superior performance most likely means:

A) generating high profits and increasing profits over time.
B) giving back to the community.
C) providing flexible customer services.
D) having effective government relationships.

A unique strength that rivals lack is called a:

A) legacy constraint.
B) distinctive competency.
C) scope advantage.
D) horizontal advantage.

There is no codebook or book of blueprints a rival can purchase to learn how to

operate like 3M. 3M has distinctive processes for generating new product ideas and
taking those ideas from conception to market introduction that are embedded deep
within the company. These processes serve as a:
A) copyright.
 B) patent.
C) trademark.
D) barrier to imitation.

Cost advantages derived from a large sales volume are called economies of:
A) scale.
B) scope.
C) location.
D) density.

A firm with efficient internal operations and unique strengths to support its low-
cost position is likely operating on the:
A) differentiation curve.
B) low-cost cycle.
C) efficiency frontier.
D) low-cost frontier.

To use segmentation to achieve competitive advantage, a segment must have:

A) a similarity to other segments in the market.
B) an ability to change with the times.
C) Internet access.
D) enough demand for the segment to be served profitably.

Activities having to do with the design, creation, and delivery of the product; its
marketing; and its after-sales service are called:
A) secondary activities.
B) support activities.
C) primary activities.
D) fundamental activities.

Marketing and sales can create value for the firm by:
A) affecting consumers' perceptions of a product.
B) communicating consumer needs back to the R&D department.
C) discovering consumer needs.
D) doing all of the above.
__________ are the ability of senior managers to elicit high levels of performance
from the constituent businesses of a diversified enterprise.
A) External governance skills
B) Internal diversification skills
C) Internal governance skills
D) Relational management skills

Which of the following actions does Wal-Mart take to lower its prices?
A) Wal-Mart uses distribution centers.
B) Wal-Mart invests in state-of-the-art information systems.
C) Sam Walton's stores are self-service.
D) Wal-Mart does all of the above to lower its prices.

For most business firms superior performance most likely means:

A) generating high profits and increasing profits over time.
B) giving back to the community.
C) providing flexible customer services.
D) having effective government relationships.

A unique strength that rivals lack is called a:

A) legacy constraint.
B) distinctive competency.
C) scope advantage.
D) horizontal advantage.

There is no codebook or book of blueprints a rival can purchase to learn how to

operate like 3M. 3M has distinctive processes for generating new product ideas and
taking those ideas from conception to market introduction that are embedded deep
within the company. These processes serve as a:
A) copyright.
B) patent.
C) trademark.
D) barrier to imitation.
Cost advantages derived from a large sales volume are called economies of:
A) scale.
B) scope.
C) location.
D) density

A firm with efficient internal operations and unique strengths to support its low-
cost position is likely operating on the:
A) differentiation curve.
B) low-cost cycle.
C) efficiency frontier.
D) low-cost frontier.

To use segmentation to achieve competitive advantage, a segment must have:

A) a similarity to other segments in the market.
B) an ability to change with the times.
C) Internet access.
D) enough demand for the segment to be served profitably.

Activities having to do with the design, creation, and delivery of the product; its
marketing; and its after-sales service are called:
A) secondary activities.
B) support activities.
C) primary activities.
D) fundamental activities.

Marketing and sales can create value for the firm by:
A) affecting consumers' perceptions of a product.
B) communicating consumer needs back to the R&D department.
C) discovering consumer needs.
D) doing all of the above.

__________ are the ability of senior managers to elicit high levels of performance
from the constituent businesses of a diversified enterprise.
A) External governance skills
 B) Internal diversification skills
C) Internal governance skills
D) Relational management skills

The different activities involved in creating an organization's products and services

are called:
A) operations.
B) productivity.
C) capitalism.
D) creative endeavors

Which of the following is the likely outcome of managing operations efficiently

and effectively?
A) Costs will go up.
B) The company will likely reach the efficiency frontier in their
industry.
C) Products will become more similar.
D) The company will be unlikely to reach the efficiency frontier in their
industry.

The production system of an organization refers to:

A) how the flow of work is configured.
B) the enterprise system software in use.
C) the people who make the product.
D) how the organization trains its employees on production
equipment.

Consider a management-consulting firm. Each job undertaken may differ

depending on the needs of the client, requiring the firm to develop a different
service for each client. The production system most likely used in this situation
would be:
A) a small batch system.
B) a large volume production system.
C) a job shop production system.
D) a continuous flow production system.
Firms that use __________ production systems charge higher prices to recoup their
costs.
A) assembly-line
B) large batch
C) job shop
D) continuous flow

Learning effects were first documented in:

A) the aircraft industry during World War II.
B) the early classrooms of the late 1800s.
C) a lighting factory in New Hampshire.
D) 1955 in the shipbuilding industry.
The extent to which assets are "working," generating income for the organization is
referred to as asset:
A) completion.
B) generation.
C) income.
D) utilization.

Which of the following is a source of cost savings when a product is reliable?

A) decreased productivity
B) improved reputation
C) higher scrap and rework costs
D) higher warranty costs

Which of the following refers to inventory that enters a production process just as
it is needed?
A) turnover inventory
B) just in time inventory
C) low quantity inventory
D) economic order inventory

Which of the following developed the TQM philosophy?

A) Joseph Juran
 B) W. Edwards Deming
C) A.V. Feigenbaum
D) all of the above

The totality of a firm's organization, including formal organization structure,

control systems, incentive systems, organizational culture, and people is referred to
as:
A) organization architecture.
B) corporate culture.
C) organization structure.
D) human capital.

Which of the following statements about organizational architecture is most

correct?
A) Organizational architecture refers to the buildings in which the
organization is housed.
B) Organizational architecture is the same regardless of industry or
strategy used.
C) Strategy supports the architecture of the firm.
D) The various components of organization architecture are not
independent of each other.

Organization structure can be thought of in terms of three dimensions:

A) vertical coordination, horizontal coordination, integrating
mechanisms.
B) vertical integration, horizontal integration, integrating
mechanisms.
C) vertical differentiation, horizontal differentiation,
integrating mechanisms.
D) vertical differentiation, horizontal differentiation, collaboration.

Vesting decision-making authority in lower-level managers or other employees is

called:
A) decentralization.
B) centralization.
 C) localization.
D) distributed authority.

Organizations with many layers of management are called:

A) wide.
B) multi-layered.
C) tall.
D) narrow.

Jonathon owns a small factory that makes wood products for the construction
industry. Initially the factory had just one manager and 10 employees. As the
factory got more orders, more people were hired including sales people,
accountants, and a factory manager. These people allowed Jonathon to focus more
on strategic issues facing the business. This is an example of how companies often
become:
A) wide.
B) tall.
C) narrow.
D) flat.

In a __________ structure the structure of the organization follows the obvious

division of labor within the firm.
A) multidivisional
B) geographic
C) matrix
D) functional

Which of the following statements about the functional structure of an enterprise is

most accurate?
A) Within a functional structure the firm is divided into different product
divisions.
B) The profitability of each distinct business is easily discerned when using
a functional structure for an enterprise that runs many businesses.
C) A functional structure can work well for a firm that is active in a
single line of business and focuses on a single geographic area.
 D) Poor organizational control may result from using a functional structure
in an organization that runs many businesses.

A formal integrating mechanism is used to:

A) reward managers.
B) consolidate profitability results across the organization.
C) help achieve organizational coordination.
D) do all of the above.

Which organizational structure is designed to maximize integration among

subunits?
A) matrix
B) functional
C) geographic
D) multidivisional

To make sure an organization is operating efficiently and in a manner consistent

with its intended strategy managers use:
A) controls.
B) financial statements.
C) substandards.
D) coercion.

In the case of a business enterprise, the major goals at the top of the organizational
hierarchy are normally expressed in terms of:
A) revenue.
B) profitability.
C) expenses saved.
D) asset turnover.

Making sure through personal inspection and direct supervision that individuals
and units behave in a way that is consistent with the goals of an organization is
called:
A) output control.
B) personal control.
 C) bureaucratic control.
D) self-control.

What was the name of the first person to describe bureaucratic controls?
A) Peter Drucker
B) Adam Smith
C) Max Weber
D) Jack Welch

Which of the following is the most likely form of control used by a firm with a
functional structure and low integration?
A) bureaucratic controls
B) output controls
C) cultural controls
D) all of the above are used

Defects per thousand products is a(n) __________ control in a firm with a

functional structure and low integration.
A) output
B) bureaucratic
C) personal
D) cultural

A control approach that suggests managers use several different financial and
operational metrics to track performance and control of an organization is called:
A) the lean approach.
B) the balanced scorecard approach.
C) the six-sigma approach.
D) the unified supply chain approach.

According to its inventors, the balanced scorecard is most like which of the
following?
A) a school report card
B) measuring spoons and cups
C) financial statements
 D) the dials and indicators in an airplane cockpit

An informal channel through which managers can collect important

information is called a(n):
A) backchannel.
B) informational network.
C) information flow channel.

The values and assumptions shared within an organization are called the
organizational:
A) DNA.
B) values.
C) culture.
D) lifestyle
D) contact channel.

Those subcultures that directly oppose the organization's core values are called:
A) dominant cultures.
B) collective subcultures.
C) countervailing cultures.
D) countercultures.

The observable symbols and signs of an organization's culture are called:

A) its cultural dcor.
B) its cultural design.
C) artifacts.
D) cultural formatting.

The speed with which employees walk around BMW's corporate offices is an
example of its:
A) corporate ceremonies.
B) corporate rituals.
C) corporate legends.
D) corporate action plans.
Corporate culture __________ refers to how widely and deeply employees hold the
company's dominant values and assumptions.
A) depth
B) breadth
C) strength
D) character

A(n) __________ exists when employees focus on the changing needs of

customers and other stakeholders and support initiatives to keep pace with these
changes.
A) adaptive culture
B) responsive culture
C) aligning culture
D) complying culture

Which of the following statements about organization culture is most accurate?

A) The organization's culture begins with its employees.
B) The founder is often the visionary who provides a powerful role
model for others to follow.
C) The board of directors, not the founder sets the tone, emphasizing what is
most important.
D) All of the above are accurate.

Rewards systems can be developed to:

A) create a better place to work.
B) reward good performance.
C) reduce poor performance.
D) do all of the above.

The practice of diagnosing cultural relations between companies and determining

the extent to which cultural clashes will likely occur is called:
A) an organizational audit.
B) a cultural audit.
C) a clash sheet.
D) a bicultural audit.
Teams:
A) are groups of people who have lunch together.
B) are individuals who work on the same manufacturing line.
C) typically provide superior customer service because they
provide more breadth of knowledge and expertise to customers than
individual "stars" can offer.
D) have members who are expected to work individually to finish
the project at hand.

Which of the following statements about teams is accurate?

A) Team members are held together by their interdependence and
need for collaboration.
B) Teams require some form of communication.
C) Teams exist to fulfill some purpose.
D) All of the above are true.

Teams organized around work processes that complete an entire piece of work
requiring several interdependent tasks and have substantial autonomy over the
execution of those tasks are:
A) self-directed teams.
B) advisory teams.
C) departmental teams.
D) virtual teams.

The team's effect on the organization, individual team members, and the team's
existence is called team:
A) awareness.
B) effort.
C) robustness.
D) effectiveness.
The extent to which team members must share common inputs to their individual
tasks, need to interact while performing their work, or receive outcomes that are
partly determined by the performance of others is called:
A) task effectiveness.
B) task interdependence.
C) task interaction.
D) team tasking.

During this stage of the team development model people tend to be polite and will
defer to the existing authority of a formal or informal leader.
A) storming
B) norming
C) performing
D) forming

Norms develop because:

A) the boss requires each team to provide norms.
B) the company's revenues directly depend on norm formation.
C) government regulation specifies company norms.
D) people need to predict how others will act.

A logical calculation that other team members will act appropriately because they
face sanctions if their actions violate reasonable expectations is called:
A) sanctions-based trust.
B) knowledge-based trust.
C) calculus-based trust.
D) identification-based trust.

Conflict that occurs when team members perceive that the conflict is in the task or
problem rather than each other is called:
A) destructive conflict.
B) coordination conflict.
C) constructive conflict.
D) process conflict.
The human resource staffing process begins with:
A) planning human resource needs.
B) recruiting job applicants.
C) organizational strategy and planning.
D) developing employees.

The process of ensuring that the organization has the right kinds of people in the
right places at the right time is known as human resource:
A) planning.
B) staffing.
C) recruiting.
D) selection.

A written statement of a job analysis is called a:

A) job statement.
B) job examination.
C) job document.
D) job description.

Estimating how may current employees will be in various jobs within the
organization at some future date is which part of the HR planning process?
A) conducting a job analysis
B) estimating future internal HR supply
C) estimating HR demand
D) documenting current HR supply

Which of the following statements about job analysis is most accurate?

A) An increasing number of companies have increased their
reliance on job descriptions.
B) Job descriptions have become more precise relevant to a
specific job.
C) Job analysis allows managers to categorize work.
D) Job descriptions are an important part of HR planning but are
not a legal requirement.
Differences in the demographic, cultural, and personal characteristics of employees
are known as:
A) conceptual diversity.
B) workforce differences.
C) workforce multiplicity.
D) workforce diversity.

Which of the following is a disadvantage of attracting as many job applicants as

possible?
A) There are no disadvantages. This is an excellent strategy.
B) A high rejection rate may increase the risk of
discrimination lawsuits.
C) It costs less money overall to recruit more people.
D) The company must accept more people with a poor fit to the
job.

__________ refers to an applicant's job performance or skills and abilities that are
required for future performance as well as how well the employee's values and
interpersonal skills fit the organization's culture.
A) Suitability
B) Recruitment
C) Selection
D) Reliability

One type of application form that uses statistics to identify information in the
application form that best predicts the applicant's suitability for a job is called:
A) a reliable application form.
B) a suitable predictive form.
C) a weighted application blank.
D) a significant application form.

The first training that employees should receive is __________, the organization's
systematic process of helping new employees make sense of and adapt to the work
context.
A) the job preview
 B) performance gap analysis
C) employee orientation
D) CBT

Employees' emotional and cognitive motivation, their perceived ability to perform

the job, their clear understanding of the organization's vision and their specific role
in that vision, and their belief that they have been given the resources to get the job
done is known as:
A) employee engagement.
B) motivational engagement.
C) ability.
D) employee connection

The drive to form social relationships and develop mutual caring commitments
with others is referred to as the drive to:
A) care.
B) nurture.
C) bond.
D) connect.

Which of the following statements about four-drive theory is most accurate?

A) One drive is not inherently inferior or superior to another drive.
B) All four drives are fixed in our brains through evolution.
C) The four drives determine which emotions are triggered in each
situation.
D) All of the above statements are accurate.

Goal setting provides the critical linkage between the:

A) organization's financial statements and individual motivation.
B) organization's financial statements and the HR department.
C) organization's competition and the marketing department.
D) organization's strategic plans and individual motivation.

According to expectancy theory an individual's effort level depends on their:

A) effort-to-performance.
 B) drive for affiliation.
C) safety needs.
D) drive for power.

A positive emotional experience resulting directly and naturally from the

individual's behavior or results is called a(n):
A) drive-to-bond.
B) intrinsic reward.
C) motivator.
D) extrinsic reward

To improve performance appraisals an employer might measure the number of

people served per hour in a restaurant for example. The likely reason that this type
of measure will improve the appraisal is:
A) it is an objective measure of performance.
B) it is a 360-degree feedback mechanism.
C) managers always need to be trained in providing this type of
feedback.
D) All of the above are reasons it will improve the appraisal.

The theory that explains how people develop perceptions of fairness in the
distribution and exchange of resources is called:
A) four-drive theory.
B) exchange theory.
C) expectancy theory.
D) equity theory.

The job characteristics model suggests that which of the following job dimensions
contributes to meaningfulness?
A) autonomy
B) feedback from job
C) skill variety
D) knowledge of results
Employees who feel empowered care about their work and believe that what they
do is important. This dimension of empowerment is called:
A) self-determination.
B) competence.
C) meaning.
D) impact.

Physiological, behavioral, and psychological episodes experienced toward an

object, person, or event that create a state of readiness are called:
A) emotions.
B) cognitions.
C) moods.
D) attitudes.

The employee-customer-profit-chain model suggests that:

A) satisfied clients lead to lower turnover.
B) organizational practices lead to lower turnover.
C) higher profit leads to hiring happier employees.
D) higher profits lead to organizational practices.

An employee's calculative attachment to an organization, whereby an employee is

motivated to stay only because leaving would be costly is known as:
A) organizational commitment.
B) devotional commitment.
C) organizational allegiance.
D) continuance commitment.

When managers are continually paying attention to the fairness of their decisions,
they are exhibiting __________, which should lead to organizational commitment.
A) shared values
B) trust
C) justice and support
D) employee involvement

Which of the following is a symptom of stress?

 A) loose muscles
B) slower breathing
C) increased heart rate
D) less blood to the brain

Any environmental conditions that place a physical or emotional demand on a

person are known as:
A) stressors.
B) distressors.
C) eustressors.
D) stress demands.

One way to manage workplace stress is to take a vacation. This is an example of:
A) changing stress perceptions.
B) withdrawing from the stressor.
C) controlling stress consequences.
D) receiving social support.
Companies can help employees to experience more work-life balance by offering:
A) personal leave.
B) flexible hours.
C) telecommuting.
D) all of the above.

People who are careful, dependable, and self-disciplined are likely to score high on
which one of the following personality dimensions?
A) agreeableness
B) openness to experience
C) conscientiousness
D) extroversion

Power that subordinates have over their superiors is known as:

A) opposing power.
B) countervailing power.
C) subordinating power.
D) subsidiary power.
Which of the following statements about power is most accurate?
A) People with power have to exercise it to get things done.
B) Power is a one-way street.
C) A manager that controls the resources that his or her employees
need has countervailing power.
D) Person A has power over person B by controlling something
of value that person B needs to achieve his goals.

In an organization, power comes from:

A) substitutability.
B) centrality.
C) formal position within a hierarchy.
D) influence.

Power over rewards and sanctions is bounded by:

A) norms.
B) laws.
C) a need to maintain legitimacy.
D) all of the above.

These __________ are not sources of power, rather they determine the extent to
which people can leverage the power they have to make things happen within
organizations.
A) incidents of power
B) power externalities
C) contingencies of power
D) possibilities of power

At one time a strike by telephone employees would have shut down operations in a
telephone company; but computerized systems and other technological innovations
have reduced the need for telephone operators. In this example technology is an
example of __________ one of the contingencies of power.
A) centrality
B) discretion
 C) substitutability
D) visibility

__________ occurs when someone complies with a request because of role

expectations and the requester's legitimate hierarchical power.
A) Silent authority
B) Assertiveness
C) Network building
D) Implicit tactics

Which of the following statements about influence tactics is most accurate?

A) Influence tactics are a way to use power but not a way of
accumulating power.
B) Even junior managers who lack substantial sources of
power can have an impact on the CEO if influence tactics are used correctly.
C) Influence tactics are a way to accumulate power but not an
effective way to use power.
D) People with limited power cannot use influence tactics.

When one party perceives that its interests are being opposed or negatively
influenced by another party it is known as:
A) conflict.
B) resistance.
C) opposition.
D) challenge.

People who sit face-to-face during a negotiation are most likely to:
A) develop a win-win orientation toward the conflict situation.
B) develop a win-lose orientation toward the conflict situation.
C) negotiate a solution in a shorter time.
D) make excessive concessions.

The process of motivating, influencing, and directing others in the organization to

work productively in pursuit of organization goals is known as:
A) leadership.
 B) management.
C) charisma.
D) strategic thinking.

Which of the following statements describes a key difference between managers

and leaders according to Bennis and Kotter?
A) Managers do the right things, whereas leaders do things right.
B) Managers focus on vision, mission, and goals, whereas leaders
focus on efficiency.
C) Management is about coping with change, whereas leadership
is about coping with complexity.
D) Leaders see themselves as promoters of change, whereas
managers focus on preserving the status quo.

The ability of a leader to get high performance from his or her subordinates is
known as:
A) efficient leadership.
B) high-performance leadership.
C) effective leadership.
D) community leadership.

Which of the following is something that a leader with people-oriented behavior

would most likely do?
A) establish stretch goals
B) challenge employees
C) ensure employees follow company rules
D) listen to employee suggestions

Which of the following statements about the behavior perspective on leadership is

most accurate?
A) The best leaders are those that are task-oriented.
B) Effective leaders such as Jack Welsh are task-oriented and not
people oriented.
C) Generally absenteeism is worse in subordinates who work
for leaders with low levels of people-oriented leadership behaviors.
 D) All of the above statements are correct.

Which of the following is a contingency theory of leadership?

A) power-influence theory
B) Fiedler's theory
C) trait theory
D) emotional intelligence theory

Which of the following is an assumption that Fiedler makes?

A) Leaders can change their style to fit the situation.
B) The effectiveness of a leaders should be judged on his or her
own performance.
C) Leaders cannot change their style.
D) There are three main types of leaders.
A leader who helps an organization achieve its current objectives is known as a(n):
A) achievement-oriented leader.
B) directive leader.
C) transactional leader.
D) objective leader.

Transformational leaders:
A) make meaningful changes in the activities and architecture
of the organization.
B) communicate with some of the staff irregularly because they are
busy communicating with other stakeholders.
C) practice "do as I say" rather than "do as I do" because they
realize that everyone cannot do the same thing.
D) realize that they have the answers and employees help them to
carry out the solutions.

The process by which information is exchanged and understood between people is

called:
A) communication.
B) interaction.
C) transmission.
 D) transfer effect.

Which of the following statements about the communication process is most

accurate?
A) Communication is a one-way process.
B) The sender forms a message and decodes it into symbols,
words, gestures or other signs.
C) The meaning of the communication to the receiver is always
what the sender intended when the sender crafts a wonderful message.
D) Communication channels are also called media.

__________ includes any part of communication that does not use words.
A) Verbal communication
B) Non-oral communication
C) Nonverbal communication
D) Non-vocal communication

The most media-rich channel for exchanging information is:

A) e-mail communication.
B) face-to-face communication.
C) telephone communication.
D) written memos.

Systems of officially sanctioned channels within an organization that are used

regularly to communicate information are called:
A) official channels.
B) recognized channels.
C) informal channels.
D) formal channels.

A __________ occurs when a new technology or business model comes along that
dramatically alters the nature of demand and competition.
A) paradigm shift
B) model shift
C) archetype shift
 D) exemplar shift

In the 1980s and 1990s IBM saw its traditional mainframe computer business
shrink in the face of new competition from the companies that were driving the
personal computer revolution, including Microsoft, Intel, and Dell. This was most
likely a result of:
A) indifferent management.
B) changing government regulations.
C) a falling economy.
D) a technological paradigm shift.

Internal and external forces that make it difficult to change the strategy or
organization architecture of an enterprise are collectively known as:
A) cognitive schema.
B) organizational inertia.
C) organizational culture.
D) organizational standards.

The ability of established airlines such as United to respond to low-cost

competitors such as Jet Blue and Southwest, for example, has been hindered by
strong labor unions that have resisted attempts to change aspects of their
employment contracts and to restructure pensions, which has kept the cost
structure of United Airlines high. This is an example of a(n) __________, which
slows United's ability to meet low-cost competition.
A) external institutional constraint
B) strategic commitment
C) internal political constraint
D) organizational culture type

In many cases change is __________ instead of __________ because leaders are

unable to recognize quickly enough that change is necessary.
A) reactive; proactive
B) bad; good
C) proactive; reactive
An important first step in moving the organization is:
 A) disposing of assets.
B) firing employees.
C) building a top management team committed to change.
D) shifting the culture of the enterprise.

Startling employees out of their comfort zone is an example of which of the

following actions managers can take to ensure successful organizational change?
A) creating a powerful guiding coalition
B) providing a compelling vision
C) removing the obstacles to change
D) establishing a sense of urgency

An organization architecture that continues to foster old habits is an example of

which of the following actions managers should avoid when implementing
organizational change?
A) not establishing a great enough sense of urgency
B) failing to remove obstacles to the change effort
C) not creating a powerful enough guiding coalition
D) not planning for and creating short-term wins

Innovations that incorporate new technology and disrupt competition, shifting the
dominant paradigm are known as __________ innovations.
A) dominant
B) quantum
C) super-
D) incremental

One reason that new products fail is because the demand for innovations is
inherently uncertain. To reduce this uncertainty a firm can:
A) rely on good market research.
B) hire the best scientists to invent excellent items.
C) hire a famous ad agency to promote the product.
D) do all of the above.