Question 1
According to Henry Fayol, the planning process in an organization is effective when:
it proposes multiple plans to achieve an organizational goal.
it sets disparate, specific goals for each functional level.
it allows plans to be designed and modified at all levels.
it produces plans that are static, thus avoiding confusion.
Question 2
According to Lewin's force-field theory of change, which of the following factors results in a change in an organization?
A stable general environment
A decrease in resistance to change
A stable task environment
Question 3
Which of the following is a feature of a high-performing organization?
The organization produces a low-quality but affordable product.
The managers choose inappropriate goals but use resources effectively to achieve them.
The managers choose the right goals to pursue and use resources appropriately to meet them.
The organization produces a product that customers will want to buy but will not be able to afford.
A decrease in forces for change
Question 4
Adopting a __________ involves distributing monetary resources among divisions to increase financial returns or to spread risks among different businesses.
multidomestic strategy
global strategy
portfolio strategy
differentiation strategy
Question 5
Which of the following statements is true of a corporate-level strategy?
It provides the framework within which functional managers operate.
It is the primary responsibility of top managers.
It outlines a division's long-term goals.
It is used to identify an organization's strengths and weaknesses.
Question 6
An organization's return on investment is calculated by dividing:
its operating profit by sales revenue.
its net income before taxes by its total assets.
its profit before interest and taxes by its total interest charges.
its current assets by its current liabilities.
Question 7
__________ is the formal system of task and job reporting relationships that determines how employees utilize resources to achieve a company's goals.
Organizational culture
Organizational matrix
Organizational design
Organizational structure
Question 8
__________ is the process by which managers establish the structure of working relationships among employees to allow them to achieve a company's goals efficiently and effectively.
Controlling
Leading
Organizing
Planning
Question 9
Which of the following is an advantage of implementing a functional structure in an organization?
It allows functional managers to develop generic skills that help manage all aspects of production.
It helps managers specialize and develop expertise in only one product area.
It lets organizations choose the set of products that serves the needs of regional customers.
It enables employees who perform similar kinds of jobs to observe and learn from each other.
Question 10
First-line managers in an organization are responsible for:
ensuring the smooth functioning of all departments.
assessing the appropriateness of organizational goals.
helping middle managers set organizational goals.
supervising nonmanagerial employees on a day-to-day basis.
Question 11
__________ signify what an organization and its members are trying to accomplish.
Societal norms
Instrumental values
Shared norms
Terminal values
Question 12
Which of the following models of leadership focused on identifying the characteristics of a person capable of being an effective leader?
House's path-goal model
The behavioral model
The trait model
Fiedler's contingency model
Question 13
The __________ of an organization is responsible for building an efficient top management team.
chief executive officer
vice-president
first-line manager
middle manager
Question 14
A low-cost strategy requires organizations to:
increase the spending on research and development to differentiate its products from those of its competitors.
direct its efforts to cater to a particular kind of customer.
focus its attention on customers from a particular geographic area.
develop products that can be manufactured inexpensively compared to existing rival products.
Question 15
Which of the following statements is true of an evolutionary change in an organization?
It is likely to result in a radically new structure for the organization.
It involves quickly finding new ways to be effective.
It helps the organization adapt to gradual changes in the environment.
It is effected through reengineering and innovation.
Question 16
Which of the following is an advantage of group decision making?
It allows managers to process more information and rectify one another's errors.
It is easy to execute because getting two or more managers to agree on a solution is relatively simple.
It is unaffected by any kind of cognitive bias as it benefits from multiple perspectives.
It allows managers to take decisions within relatively short periods of time compared to individual decision makers.
Question 17
A person's upbringing is an important source of __________.
professional ethics
individual ethics
organizational ethics
societal ethics
Question 18
Which of the following principles identified by Henri Fayol focuses on the chain of command with an organization?
An employee should receive orders from only one supervisor.
A manager is not entitled to ask for his or her employees' obedience.
A manager should not encourage or allow his or her employees to be innovative and creative.
Authority should be concentrated at the top of the chain of command in an organization.
Question 19
__________ is the process by which managers regulate and monitor how efficiently and effectively an organization as a whole works to achieve organizational goals.
Leading
Planning
Organizing
Controlling
Question 20
Unlike leaders, managers are those who:
implement procedures and processes to ensure the smooth functioning of an organization.
seek innovation rather than stability in their approach to fulfill organizational aspirations.
encourage and motivate employees to work together to achieve a common vision.
develop relationships with employees based on trust and mutual respect.
Question 21
A differentiation strategy is ideal for organizations that:
aim to produce new, innovative products.
try to ensure flexibility in organizational culture.
want to ensure flawless coordination among multiple divisions.
intend to exercise strict control over various departments.
Question 22
Which of the following scenarios illustrates the attraction-selection-attrition framework?
Miriam likes experimenting with new possibilities and taking risks. She hires like-minded people for her start-up.
The management of ThinkFree Inc. requires all prospective employees to attend a basic induction program.
All the newly hired employees of Style Prints Inc. are encouraged to participate in team outings.
Serena wins the annual award for best employee of the year. She was selected from all likely candidates for her dedication to her work.
Question 23
A differentiation strategy can be employed by organizations to:
reduce costs in all their functions.
ensure strict control over various departments by a system of checks and balances.
achieve flexibility in organizational culture.
enhance the value consumers perceive in their products.
Question 24
How does an increase in job specialization lead to higher organizational performance?
Each worker specializes in a different set of tasks over a period of time.
Workers join different groups and each group performs the same task at increasing costs over a period of time.
Each worker becomes responsible for all the different tasks involved in producing a product thereby increasing productivity.
Workers performing specific tasks become much more skilled and produce a product faster while working in groups.
Question 25
A __________ specifies the national markets and industries an organization plans to compete in and why it intends to do so.
department-level strategy
business-level strategy
functional-level strategy
corporate-level strategy
Question 26
Identify a true statement about an effective control system?
It is limited in its capacity to provide managers with information in a timely manner.
It is an informal system that helps managers make decisions.
It allows managers to take only programmed decisions.
It provides managers with accurate information about organizational performance.
Question 27
Which of the following statements is true of transformational leaders?
They hesitate to share information with their coworkers.
They prefer to maintain the status quo in their organizations.
They use reward power and coercive power to command respect from their subordinates.
They engage with subordinates and motivate them to work toward organizational goals.
Question 28
One way of pursuing a differentiation strategy is by:
looking for new ways to reduce production costs.
introducing products that are replicas of a competitor's products.
investing more on research and development.
offering specialized products at low-costs.
Question 29
_____ is a measure of how productively resources are utilized to meet a goal
Centralization
Product utilization
Management
Efficiency
Question 30
Which of the following did Frederick W. Taylor believe to be an outcome of recording the method of performing a particular task in an organization?
Job procedures became standardized and more routine.
Workers did not have to be trained for specific roles anymore.
Tasks became complicated and time-consuming.
Workers' informal knowledge about their tasks became irrelevant.
According to Henry Fayol, the planning process in an organization is effective when:
it proposes multiple plans to achieve an organizational goal.
it sets disparate, specific goals for each functional level.
it allows plans to be designed and modified at all levels.
it produces plans that are static, thus avoiding confusion.
Question 2
According to Lewin's force-field theory of change, which of the following factors results in a change in an organization?
A stable general environment
A decrease in resistance to change
A stable task environment
Question 3
Which of the following is a feature of a high-performing organization?
The organization produces a low-quality but affordable product.
The managers choose inappropriate goals but use resources effectively to achieve them.
The managers choose the right goals to pursue and use resources appropriately to meet them.
The organization produces a product that customers will want to buy but will not be able to afford.
A decrease in forces for change
Question 4
Adopting a __________ involves distributing monetary resources among divisions to increase financial returns or to spread risks among different businesses.
multidomestic strategy
global strategy
portfolio strategy
differentiation strategy
Question 5
Which of the following statements is true of a corporate-level strategy?
It provides the framework within which functional managers operate.
It is the primary responsibility of top managers.
It outlines a division's long-term goals.
It is used to identify an organization's strengths and weaknesses.
Question 6
An organization's return on investment is calculated by dividing:
its operating profit by sales revenue.
its net income before taxes by its total assets.
its profit before interest and taxes by its total interest charges.
its current assets by its current liabilities.
Question 7
__________ is the formal system of task and job reporting relationships that determines how employees utilize resources to achieve a company's goals.
Organizational culture
Organizational matrix
Organizational design
Organizational structure
Question 8
__________ is the process by which managers establish the structure of working relationships among employees to allow them to achieve a company's goals efficiently and effectively.
Controlling
Leading
Organizing
Planning
Question 9
Which of the following is an advantage of implementing a functional structure in an organization?
It allows functional managers to develop generic skills that help manage all aspects of production.
It helps managers specialize and develop expertise in only one product area.
It lets organizations choose the set of products that serves the needs of regional customers.
It enables employees who perform similar kinds of jobs to observe and learn from each other.
Question 10
First-line managers in an organization are responsible for:
ensuring the smooth functioning of all departments.
assessing the appropriateness of organizational goals.
helping middle managers set organizational goals.
supervising nonmanagerial employees on a day-to-day basis.
Question 11
__________ signify what an organization and its members are trying to accomplish.
Societal norms
Instrumental values
Shared norms
Terminal values
Question 12
Which of the following models of leadership focused on identifying the characteristics of a person capable of being an effective leader?
House's path-goal model
The behavioral model
The trait model
Fiedler's contingency model
Question 13
The __________ of an organization is responsible for building an efficient top management team.
chief executive officer
vice-president
first-line manager
middle manager
Question 14
A low-cost strategy requires organizations to:
increase the spending on research and development to differentiate its products from those of its competitors.
direct its efforts to cater to a particular kind of customer.
focus its attention on customers from a particular geographic area.
develop products that can be manufactured inexpensively compared to existing rival products.
Question 15
Which of the following statements is true of an evolutionary change in an organization?
It is likely to result in a radically new structure for the organization.
It involves quickly finding new ways to be effective.
It helps the organization adapt to gradual changes in the environment.
It is effected through reengineering and innovation.
Question 16
Which of the following is an advantage of group decision making?
It allows managers to process more information and rectify one another's errors.
It is easy to execute because getting two or more managers to agree on a solution is relatively simple.
It is unaffected by any kind of cognitive bias as it benefits from multiple perspectives.
It allows managers to take decisions within relatively short periods of time compared to individual decision makers.
Question 17
A person's upbringing is an important source of __________.
professional ethics
individual ethics
organizational ethics
societal ethics
Question 18
Which of the following principles identified by Henri Fayol focuses on the chain of command with an organization?
An employee should receive orders from only one supervisor.
A manager is not entitled to ask for his or her employees' obedience.
A manager should not encourage or allow his or her employees to be innovative and creative.
Authority should be concentrated at the top of the chain of command in an organization.
Question 19
__________ is the process by which managers regulate and monitor how efficiently and effectively an organization as a whole works to achieve organizational goals.
Leading
Planning
Organizing
Controlling
Question 20
Unlike leaders, managers are those who:
implement procedures and processes to ensure the smooth functioning of an organization.
seek innovation rather than stability in their approach to fulfill organizational aspirations.
encourage and motivate employees to work together to achieve a common vision.
develop relationships with employees based on trust and mutual respect.
Question 21
A differentiation strategy is ideal for organizations that:
aim to produce new, innovative products.
try to ensure flexibility in organizational culture.
want to ensure flawless coordination among multiple divisions.
intend to exercise strict control over various departments.
Question 22
Which of the following scenarios illustrates the attraction-selection-attrition framework?
Miriam likes experimenting with new possibilities and taking risks. She hires like-minded people for her start-up.
The management of ThinkFree Inc. requires all prospective employees to attend a basic induction program.
All the newly hired employees of Style Prints Inc. are encouraged to participate in team outings.
Serena wins the annual award for best employee of the year. She was selected from all likely candidates for her dedication to her work.
Question 23
A differentiation strategy can be employed by organizations to:
reduce costs in all their functions.
ensure strict control over various departments by a system of checks and balances.
achieve flexibility in organizational culture.
enhance the value consumers perceive in their products.
Question 24
How does an increase in job specialization lead to higher organizational performance?
Each worker specializes in a different set of tasks over a period of time.
Workers join different groups and each group performs the same task at increasing costs over a period of time.
Each worker becomes responsible for all the different tasks involved in producing a product thereby increasing productivity.
Workers performing specific tasks become much more skilled and produce a product faster while working in groups.
Question 25
A __________ specifies the national markets and industries an organization plans to compete in and why it intends to do so.
department-level strategy
business-level strategy
functional-level strategy
corporate-level strategy
Question 26
Identify a true statement about an effective control system?
It is limited in its capacity to provide managers with information in a timely manner.
It is an informal system that helps managers make decisions.
It allows managers to take only programmed decisions.
It provides managers with accurate information about organizational performance.
Question 27
Which of the following statements is true of transformational leaders?
They hesitate to share information with their coworkers.
They prefer to maintain the status quo in their organizations.
They use reward power and coercive power to command respect from their subordinates.
They engage with subordinates and motivate them to work toward organizational goals.
Question 28
One way of pursuing a differentiation strategy is by:
looking for new ways to reduce production costs.
introducing products that are replicas of a competitor's products.
investing more on research and development.
offering specialized products at low-costs.
Question 29
_____ is a measure of how productively resources are utilized to meet a goal
Centralization
Product utilization
Management
Efficiency
Question 30
Which of the following did Frederick W. Taylor believe to be an outcome of recording the method of performing a particular task in an organization?
Job procedures became standardized and more routine.
Workers did not have to be trained for specific roles anymore.
Tasks became complicated and time-consuming.
Workers' informal knowledge about their tasks became irrelevant.
