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BUAD 201 Fall 2018 Mid-Term Exam

Please take this test electronically and return to me via email by end of day Wednesday, October 3.
Mark your multiple choice answers either by bolding or marking it with color. Type your answers for all
other listing or essay questions.

Scenario - Barry Miller - 2 pts


The promotion to first line manager took place just six weeks ago for Barry Miller. He was well qualified for the
promotion, but the new job still required a lot of training. One of the challenges has been to coordinate the production of
his team with the needs of the sales department and with the availability of raw materials from his suppliers. Setting
priorities and developing schedules to accomplish the work is a part of Barry's job that he has really enjoyed. The
challenges to maintain high rapport and to build a strong team with his employees have already brought him a lot of
satisfaction. In reflecting about the last six weeks, Barry concludes that he is very happy about his new job.
1. With setting priorities and setting schedules, Barry was participating in the decisional role of:
a. entrepreneur.
b. disturbance handler.
c. disseminator.
d. resource allocator.
e. monitor.

2. List the three management skills necessary to perform effectively in organizations. - 3 pts
(1) Technical Skills
(2) Human Skills
(3) Conceptual Skills

Scenario - Melissa Hill - 2 pts


Melissa Hill, sales manager for One-Hit-Wonder Record Company, was trying to create a new strategy to turn around the
declining record sales the company was facing. Melissa needed to find a way to find out what the customers really
wanted, since One-Hit-Wonder didn't have accurate information like the competitors did. It was imperative that she find
the correct strategy and information because the company was in financial trouble. The company's President wanted all
employees to help find information and work as a team to develop better relationships that might help the company. He
also stated that he wanted the company to remain an independent company. Melissa realized that through hard work and
team efforts, the company could get back on its feet as soon as they got reliable information.
3. Which of the following best describes One-Hit-Wonder's culture?
a. Clan culture
b. Achievement culture
c. Consistency culture
d. Adaptability culture
e. None of these

4. List five of Mintzberg's ten managerial roles. - 5 pts


(1) Monitor. (2) Disseminator. (3) Spokesperson. (4) Figurehead. (5) Leader.

Scenario - SS.com - 2 pts

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Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share,
recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can
trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a
very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line
commission rates.
5. If Swift Stock's traditional brokerage business were to face a declining business growth, it may need to be reclassified
as a _____.
a. cash cow
b. dog
c. star
d. question mark
e. dead business

Scenario - Malcolm Bagget


Malcolm Bagget has been working as a production employee for the last three years. His firm is currently undergoing a
change in structure with a new management group and the production department is being restructured. Each production
employee will be assigned to a small six-member production team. Malcolm is looking forward to the extensive cross
training that has been promised and is looking forward to enjoying more power and discretion than he has had in the past.
In addition to skill training, Malcolm is receiving management training in team building.
6. When Malcolm's team encounters the establishment of order and cohesion with the leader helping to clarify
team roles and values, then his team is in the developmental stage of team development of _____.
a. forming
b. storming
c. norming
d. performing
e. adjourning

7. List the five types of upward communication. 5 pts


(1) Problems and exceptions
(2) Suggestions for improvement
(3) Performance reports
(4) Grievances and disputes
(5) Financial and accounting information
Scenario - Barry Miller - 2 pts
The promotion to first line manager took place just six weeks ago for Barry Miller. He was well qualified for the
promotion, but the new job still required a lot of training. One of the challenges has been to coordinate the production of
his team with the needs of the sales department and with the availability of raw materials from his suppliers. Setting
priorities and developing schedules to accomplish the work is a part of Barry's job that he has really enjoyed. The
challenges to maintain high rapport and to build a strong team with his employees have already brought him a lot of
satisfaction. In reflecting about the last six weeks, Barry concludes that he is very happy about his new job.
8. In his job, Barry needs to:
a. plan.
b. organize.
c. lead.
d. control.
e. all of these.

Scenario - Amy Holmes - 2 pts

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One of the most talented managers to ever work at ABC Inc. is Amy Holmes. Combining graciousness with high
intelligence and creativity, Amy has been successful in attracting and building a highly committed and competent division
of employees. When interviewed by the national news media for insight into her success, one of the topics that became a
primary focus was the challenge of communicating effectively.
9. Amy also agrees with the research that suggests that “nonverbal messages convey thoughts and feelings with
greater force than do our most carefully selected words.” Nonverbal messages include all of the following
EXCEPT:
a. facial expressions.
b. posture and dress.
c. voice and mannerisms.
d. blushing and perspiring.
e. all of these are included.

10. List the three formal communication channels found in organizations. - 3 pts
(1) Upward Communication
(2) Downward Communication
(3) Horizontal Communication
Scenario - Theresa Teutul - 2 pts
Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that
the color television market in the late 1970's was facing significant challenges. After two decades of highly successful
development and marketing, the sales of color televisions had slowed and replacing older color television sets largely
created her market.
11. The strategy that the BCG matrix suggests that Theresa should take for this SBU is:
a. invest and grow.
b. liquidate while still profitable.
c. ask her astrologer for advice.
d. keep the SBU healthy and use its excess earnings to invest in other SBU's.
e. divestiture.

Scenario - Barry Miller - 2 pts


The promotion to first line manager took place just six weeks ago for Barry Miller. He was well qualified for the
promotion, but the new job still required a lot of training. One of the challenges has been to coordinate the production of
his team with the needs of the sales department and with the availability of raw materials from his suppliers. Setting
priorities and developing schedules to accomplish the work is a part of Barry's job that he has really enjoyed. The
challenges to maintain high rapport and to build a strong team with his employees have already brought him a lot of
satisfaction. In reflecting about the last six weeks, Barry concludes that he is very happy about his new job.
12. By maintaining information links, Barry Miller was exhibiting the interpersonal role of:
a. figurehead.
b. leader.
c. liaison.
d. monitor.
e. spokesperson.

Scenario - Melissa Hill - 2 pts


Melissa Hill, sales manager for One-Hit-Wonder Record Company, was trying to create a new strategy to turn around the
declining record sales the company was facing. Melissa needed to find a way to find out what the customers really
wanted, since One-Hit-Wonder didn't have accurate information like the competitors did. It was imperative that she find
the correct strategy and information because the company was in financial trouble. The company's President wanted all
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employees to help find information and work as a team to develop better relationships that might help the company. He
also stated that he wanted the company to remain an independent company. Melissa realized that through hard work and
team efforts, the company could get back on its feet as soon as they got reliable information.
13. Which of the following would be the best way for One-Hit-Wonder to decrease its uncertainty?
a. To create boundary-spanning roles
b. To eliminate interorganizational partnerships
c. To merge with another company
d. To create a joint venture
e. None of these

14. Identify the four functions of management. - 4 pts


(1) Planning, (2) Organizing, (3) Leading, and (4) Controlling.
Scenario - Amy Holmes - 2 pts
One of the most talented managers to ever work at ABC Inc. is Amy Holmes. Combining graciousness with high
intelligence and creativity, Amy has been successful in attracting and building a highly committed and competent division
of employees. When interviewed by the national news media for insight into her success, one of the topics that became a
primary focus was the challenge of communicating effectively.
15. In selecting the best channel for complex communication, Amy suggests to select the richest channel possible.
Characteristics that Amy suggests a manager should recognize include all of these EXCEPT:
a. the channel's ability to handle multiple cues simultaneously.
b. the ability to facilitate rapid two-way feedback.
c. the ability to establish a personal focus for the communication.
d. the ability to clarify and rapidly reduce communication stereotyping.
e. all of these are valid characteristics of channel richness.

16. Name one of the two dimensions that the categories of culture are based on. - 2 pts
(1) The extent to which the external environment requires flexibility or stability.
Scenario - Nikki Williams - 4 pts
Nikki Williams was working as the sales manager for Industrial Instruments. Some of the sales executives were showing
signs of burnout. They were losing interest in their jobs and were no longer motivated to gain new accounts. The reward
system focused on old reliable accounts, but Nikki was now under pressure to expand the customer base. Nikki had
recently been to a seminar on corporate value systems. She recognized that the company's CEO wanted to change the way
employees thought about the firm and the way they related to one another. She further recognized that a lasting solution to
her problem required a fundamental shift in perception.
17. Nikki could use the following to affect the corporate culture:
a. structured symbolic logic.
b. stories about political heroes.
c. stories about company officers, stressing a value.
d. stories about economic depression.
e. all of these.

18. Industrial Instruments operates in an environment that requires fast response and high-risk decision making.
Which type of culture may be appropriate here?
a. Consistency
b. Adaptability
c. Clan
d. Achievement
e. Involvement

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Scenario - Amy Holmes - 2 pts
One of the most talented managers to ever work at ABC Inc. is Amy Holmes. Combining graciousness with high
intelligence and creativity, Amy has been successful in attracting and building a highly committed and competent division
of employees. When interviewed by the national news media for insight into her success, one of the topics that became a
primary focus was the challenge of communicating effectively.
19. Amy believes that successful managers solicit and respond to upward communication. Information that can be
expected with upward communication includes all of the following EXCEPT:
a. procedures and practices.
b. suggestions for improvement.
c. financial and accounting information.
d. performance reports.
e. all of these are included.

Scenario - Melissa Hill - 2 pts


Melissa Hill, sales manager for One-Hit-Wonder Record Company, was trying to create a new strategy to turn around the
declining record sales the company was facing. Melissa needed to find a way to find out what the customers really
wanted, since One-Hit-Wonder didn't have accurate information like the competitors did. It was imperative that she find
the correct strategy and information because the company was in financial trouble. The company's President wanted all
employees to help find information and work as a team to develop better relationships that might help the company. He
also stated that he wanted the company to remain an independent company. Melissa realized that through hard work and
team efforts, the company could get back on its feet as soon as they got reliable information.
20. The problem Melissa faced was:
a. culture gap.
b. structural instability.
c. environmental uncertainty.
d. company transformation.
e. legal problems.

21. Describe the skills necessary for performing a manager's job. Provide examples of each. 5 pts
(1) Technical skills include the understanding of and proficiency in the performance of specific skills. An example of
this would be a person mastering the methods, techniques, and equipment involved in an engineering job.
(2) Human skills refer to a manager’s ability to work with and through other people and to work effectively as part of a
group. An example of this would be a manager relating to his employees and being able to motivate, coordinate,
and lead them effectively.
(3) Conceptual skills are the cognitive abilities to see the organization as a whole and the relationship among its
parts. An example of this would be a top manager who knows where and how his or her organization fits into the
industry.
22.
Strategy formulation begins with understanding the issues that require managers to assess those factors that
influence the company's ability to compete. Choose one of the following types of organizations: a fast-food chain, a
clothing manufacturer, a communications device manufacturer or service provider, or an automobile
manufacturer. Perform a SWOT analysis on the company of your choice, using what you know about the company
to list at least three strengths, three weaknesses, three opportunities, and three threats. 5 pts

A fast-food chain: Chick-fil-a


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Strengths Weaknesses
-Good customer service (nice and caring employees) -Food is higher than competitors
-Quality food and ingredients -They only serve chicken products, no burgers.
-Pay employees more than typical fast food restaurants -Strong religious corporate culture
Opportunities Threats
-Increasing demand for “healthier/quality” fast food -Diseases that could get in the chicken and affect chicken
-Increasing franchise opportunities in hospitals, college sales.
campuses, etc. -Protests against the company and their views on certain
-Increase international presence subjects
-Cultural differences

23. List the four categories of culture and describe what kind of environments each fit best in. 5 pts
(1) Adaptability culture fits best in an environment that requires high-risk decision making and fast response.
(2) Achievement culture fits best in an environment concerned with serving specific customers in the external
environment, but without the intense need for flexibility and rapid change.
(3) Involvement culture fits best in an environment that emphasizes an internal focus on the participation of
employees to adapt rapidly to changing needs from the environment.
(4) Consistency culture fits best in an environment that uses an internal focus and a consistency orientation for a
stable environment.
24. Why are conceptual skills most important for top managers?
Conceptual skills are most important for top managers because many of their responsibilities like decision making,
resource allocation, and innovation require a broad view and requires them to think strategically.
25.
Though we may think of communication as a simple process, it is really quite complex. In a short essay,
describe the key elements of the communication process in order. Then provide examples that highlight the
various points in the process at which communication is most likely to get distorted or interrupted entirely, and
explain why these issues arise.
The communication process starts with a manager choosing how and what he or she wants to say to the employee they
want to talk to communicate with. The message is sent to the employee through a channel, which could be through the
telephone, an email, letter, face to face, etc. The employee then decodes the symbols to interpret the meaning of the
message. This is the point that communication is most likely to get distorted or interrupted entirely because the employee
might interpret the message wrong. The final step is when the employee gives feedback, or responds, to the manager
with a message of their own.
26.
Effective managers must possess technical skills, human skills, and conceptual skills in varying degrees.
After defining each term, justify your assessment of which of the three skills you deem to be most
important to a successful manager. 5 pts
(1) Technical skills include the understanding of and proficiency in the performance of specific skills.
(2) Human skills refer to a manager’s ability to work with and through other people and to work effectively as part of a
group.
(3) Conceptual skills are the cognitive abilities to see the organization as a whole and the relationship among its
parts.
I think that human skills are the most important skills for a manager because it is so important for them to be able to
relate to their employees. I would be more prone to listen to and follow a leader who I related to and liked rather than
someone who wasn’t friendly, caring, or empathetic.
27. Briefly describe the tools for putting strategy into action. 5 pts
The tools for putting strategy into action are (1) visible leadership- the ability to influence people to adopt the new
behaviors needed for putting the strategy into action, (2) clear roles and accountability- people need to understand how
their individual actions can contribute to achieving the strategy, (3) candid communication- managers openly
communicate their strategic ideas and listen to others, and (4) appropriate HR practices- the HR function appropriately
recruits, selects, trains, compensates, transfers, promotes, and lays off employees when needed.

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28.
In order to achieve competitive advantage, organizations use many types of teams. Write a short essay in which
you identify different types of teams and evaluate the organizational situations where each may be most
effective. 5 pts
(1) Functional teams are composed of a manager and his or her subordinates in the formal chain of command.
(2) Cross-Functional teams are composed of employees from about the same hierarchical level, but from different
areas of expertise.
(3) Self-Managed teams are typically made up of 5 to 20 multiskilled workers who rotate jobs to produce an entire
product or service or at least one complete aspect or portion of a product or service.
29. Managers should recognize that teamwork presents a dilemma for many people, and for good reason. In a
short essay play "devil's advocate": Use the dysfunctions common in teams to defend the concept of individual
accomplishment and achievement. 5 pts
I, personally, like to work independently rather than in a group. I feel that most people would rather work independently
because they do not have to put any trust into others and fear getting let down. A lot of times there are one or two group
members who do not put in the same amount of effort or any at all, and cause the group to fail.

30.
Managers shape cultural norms and values in an organization through cultural leadership. Write a short essay that
defines cultural leadership and describes some methods a cultural leader may use to ensure high-performance in
his organization. In your opinion, is the role of cultural leader "motivation" or "manipulation?” Explain your
answer in your essay. 5 pts
Cultural leadership is a way that managers shape cultural norms and values to build a high-performance culture. There
are two methods that cultural leaders use to ensure high-performance: (1) the cultural leader articulates a vision for the
organizational culture that employees can believe in, and (2) The cultural leader heeds the day-to-day activities that
reinforce the cultural vision. I think that the role of a cultural leader is supposed to be motivation and probably starts out
that way, but it can very easily turn into manipulation.
31.
Small businesses and nonprofit organizations require good management to achieve their goals. But the
efforts and activities of each are directed toward a different "bottom line." Write an essay in which you
a) describe a managerial position at a nonprofit where you would like to work, and b) discuss how the
requirements differ from a managerial position in a large, for-profit organization. Incorporate the
concepts you have learned about the manager's role in small businesses and nonprofit organizations. 5
pts
A managerial position at a nonprofit would probably consist of managing few employees along with all of the
advertising/marketing/etc. of the nonprofit. To take Habitat for Humanity for an example, a manager of a community’s HFH
would probably manage the “customers” or the people who need help with a house, the volunteers that are wiling to help
build, any inspections/permits that go along with the building, and things like that. In a large, for-profit organization, a
manager would be managing many employees and what each should be doing, how much his or her team is producing
and how much money they are making. I feel like both managers probably have the same amount of work load, just in
different areas of the business and different tasks.

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Answer Key
1. d

2. Conceptual, human, and technical skills.

3. d

4. Any five of the following -- monitor, spokesperson, disseminator, figurehead, leader, liaison, entrepreneur, disturbance
handler, resource allocator, and negotiator.

5. a

6. c

7. The five types of information communicated upward are (1) problems and expectations, (2) suggestions for
improvement, (3) performance reports, (4) grievances and disputes, and (5) financial and accounting information.

8. e

9. e

10. The three channels are (1) the upward communication channel, (2) the downward communication channel, and (3) the
horizontal communication channel.

11. d

12. c

13. a

14. Planning, organizing, leading, and controlling.

15. d

16. Responses will be either (1) the extent to which the external environment requires flexibility or stability, or (2) the
extent to which a company's strategic focus is internal or external.

17. c

18. b

19. a

20. c

21. The skills are conceptual, human, and technical. Conceptual skills include the cognitive ability to see the organization
as a whole system and the relationships among its parts. Human skills are demonstrated in the way that a manager relates
to other people. Technical skills include mastery of the methods, techniques, and equipment involved in specific
functions.

22.

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Information about internal strengths and weaknesses comes from sources, such as financial reports, profit and loss
statements, employee surveys, and company meetings. Strengths are positive internal characteristics, like a talented,
productive staff; weaknesses are internal characteristics that inhibit performance, like an inadequate marketing budget.
Information about external opportunities and threats comes from sources, such as customers, consultants, government
reports, association meetings, Internet research, and competitive intelligence professionals. Opportunities are
characteristics of the external environment that can help the organization achieve its goals, like a competitor's public
relations problems; threats are characteristics of the external environment that may inhibit performance, like shifting
public opinions on a social or environmental issue.

23. Adaptability culture fits best in fast response and high-risk decision making environments. Achievement culture fits
best in results-oriented cultures that value competitiveness, aggressiveness, personal initiative, and willingness to work
long and hard to achieve results. Involvement culture fits best in internal and employee-need focused environments where
the organization is seen as having a caring, family-like atmosphere. Consistency culture fits best in internal focused
organization that has a consistency orientation for a stable environment.

24. Top managers are often the keys to holding the whole company together. In order to accomplish this, top managers
must be able to see the "big picture," i.e., perceive the critical situational issues as well as the relationships between all
organizational parts.

25.
Manager encodes a thought or idea and selects symbols (such as words) to compose a message (which is
tangible) to send to employee; channel is the medium by which the message is sent (such as telephone call, e-
mail, face-to-face conversation). Employee decodes the symbols to interpret the meaning of the message.
Feedback is employee response to a manager’s communication with a return message. Sender and receiver may
exchange messages several times to achieve a mutual understanding. Distortion and interruption can occur at
every phase in the process because people may not be clear about their message, do not listen well, combine
messages with their own thoughts, do not confirm that a message has been received, and so on.

26.
(Answer will contain some or all of the following elements.): Technical – understands and is proficient in the performance
of tasks (knowledge and use of tools and techniques, as well as troubleshooting and problem solving). Human – can work
with and work through other people, both individually and as a group (motivate, communicate, coordinate, lead, resolve
conflict). Conceptual – can think strategically and see one's team as part of a bigger system (a company, an industry, a
community, a society). Failed management is overwhelmingly attributed to lack of human skills, e.g., poor
communication with employees and/or customers and lack of relationship building with the team.

27.
The tools for putting strategy into action include visible leadership, clear roles and accountability, human resources, and
candid communication.
∙ Visible leadership is used to motivate people, shape culture and values, and model desired behaviors
∙ Clear roles and accountability include delegating authority and responsibility, creating teams, and defining roles
∙ Human resource tools include recruiting employees, providing training, and managing transfers and promotions
∙ Candid communication is used to open lines of communication and to encourage honesty and debate

28.
Functional team: composed of manager and subordinates in formal chain of command; typically includes single
department, such as members of quality control team; created by organization to attain specific goals through joint
interactions.
Cross-functional team: composed of employees from different areas of expertise, same hierarchical level, such as
members of a task force formed temporarily to deal with a specific issue; members of special purpose teams often formed
for particular important project, such as new product development.
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Self-Managed team: composed of multi-skilled workers who rotate jobs to produce entire product or service; designed to
increase worker involvement in decision making; has access to resources needed to complete task; monitors own
performance and alters behaviors accordingly; prevalent in boss-less environments.

29.
Many workers who willingly sacrifice for individual initiatives are uncomfortable with sacrificing for group success,
especially if they are from a culture that values individualism; free riders put little effort into group project but benefit
from team membership; teams can be dysfunctional because of lack of effective management, evidenced by lack of trust,
fear of conflict, lack of commitment, avoidance of accountability and inattention to results when members put personal
ambition first.

30.
Cultural leader defines and articulates important values that are tied to a clear mission; must over-communicate, by words
and example, to make sure employees have sufficient level of understanding when old values have to change and new
values are instituted; establishes a vision and purpose that employees can believe in and support; makes sure that day-to-
day work procedures and rewards systems comport with the established values; must emphasize both solid business
results and values to create a high-performance culture. A high-performance culture is based on a solid mission, embodies
shared values that guide business decisions and practices, and encourages employee responsibility for results. Essay will
include student assessment of role of cultural leader.

31.
(Answer will contain some or all of the following elements.): Managers in both arenas must adjust various management
functions and roles to fit their unique work environment. Managers in small businesses often act as the face of the
company, spokesperson, and entrepreneur who must be innovative and help their company thrive and be competitive.
Their efforts and activities are directed toward improving products and services, increasing sales, and earning money for
the company. Managers in nonprofit organizations also act as the public face of their nonprofit, the spokesperson who
solicits government and donor funding, the leader who builds a community of employees and volunteers who are mission-
driven, and the resource allocator. Their efforts and activities are directed toward making an impact on society.

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