1. ________ is the management function through which managers compare present performance
to preestablished performance standards.
2. Which of the following is an error managers make during the controlling stage of management?
a. Establishing improper communication networks
b. Not exploring enough viable alternatives for reaching objectives
c. Not taking the time to communicate properly with organization members
d. Not establishing departments appropriately
e. Not monitoring progress in carrying out plans
3. ________ resources refer to the machines used during the manufacturing process.
d. Raw material
4. ________ resources refer to the ingredients used directly in the manufacturing of products.
c. Raw material
5. According to Katz, human skills are required for ________.
a. understanding how changes in one part of the organization affect the rest of it
b. working with individual and group interests
c. understanding how the organization relates to its environment
d. designing work processes and procedures
e. applying specialized knowledge and expertise to work-related techniques
6. According to Katz, technical skills involve ________.
a. understanding how the organization relates to its environment
b. applying specialized knowledge and expertise to work-related techniques
c. understanding how changes in one part of the organization affect the rest of it
d. working with people, both individuals and groups, to achieve organizational goals
e. working with people, but not their attitudes and communication
7. People-related activities within an organization include ________.
a. consulting when making decisions
b. clarifying objectives of jobs in organizations
c. proposing new strategies and vision
d. short-term planning
e. encouraging innovative thinking
8. ________ skills involve acting considerate, showing sympathy when someone is upset or anxious,
and providing encouragement.
b. Clarifying roles
9. Sarah has been working full-time at Eves Golf Inc. for three years. While in college, she worked
as a part-time employee at Burger King and as an office assistant for a manufacturing
organization. She was recently promoted to manager, and manages a small team that is
responsible for procuring raw materials for their line of golf bags, hats and other accessories.
Considering that careers evolve through a series of stages, in this scenario Sarah’s career is at
the ________ stage.
10. The Gilbreths aimed to increase worker efficiency by ________.
a. reducing the number of movements taken to accomplish a task
b. instituting the piece-rate system for remuneration
c. enforcing minimum criteria for the types of workers hired for a job
d. encouraging teamwork rather than individual work
e. understanding what motivates employees to complete a task
11. Which one of the following conclusions was drawn by the experimenters from the bank wiring
observation room experiment?
a. The subjects did not find working in the test room enjoyable.
b. Human factors within organizations could significantly influence production.
c. Improved working conditions resulted in increased production.
d. Social groups in organizations could effectively exert pressure to influence individuals to
disregard monetary incentives.
e. Members of the work group pressured one another to work harder so that each group
member would receive more pay.
12. The Hawthorne Studies sparked the ________, a people-oriented approach to management in
which the interaction of people in organizations is studied to judge its impact on organizational
a. behavioral study movement
b. motion studies initiative
c. “one best way” model
d. human relations movement
e. scientific management movement
13. Dress codes are a contentious subject in workplaces with Gen Y workers favoring a more
casual style than older workers, who are often uncomfortable with the idea of wearing casual
clothes to work. Human resources departments often find it difficult to enforce company dress
codes appropriately. Managers find that one of the ways to address this situation is using the
contingency approach. Which of the following is the best example of the contingency approach
a. Rotec Inc. requires all employees to dress formally throughout the week and allows
business casuals on Fridays.
b. Sandman Designs allows employees who don’t meet clients to dress casually, while
employees who must meet clients are required to wear formals.
c. Waterstones observed and compared employee behavior and productivity on “formal
wear” and “casual wear” days and used the findings to devise a company dress code.
d. Letterman Inc. invited employees to share their clothing preferences and used these
suggestions to frame a company dress code.
e. G&B Solutions developed a series of guidelines to let employees know what is
considered appropriate and inappropriate office wear.
14. The use of the classical, behavioral and management science approaches as sources of
information to analyze the management system is referred to as ________ management.
15. Every Monday morning, the hundred-odd employees at Axis Systems Ltd. meet to discuss the
work situation. The managers of various departments summarize what their departments have
done over the past week. Employees can track the various stages of any project and understand
how their tasks fit into the whole process. This illustrates the ________ aspect of a learning
a. team learning
b. triangular management
c. systems thinking
d. the contingency approach
e. the behavioral approach
16. Which of the following propositions of the Davis Model of Corporate Social Responsibility
states that business cannot be expected to completely finance activities that may be socially
advantageous but economically disadvantageous?
a. Proposition 3: The social costs and benefits of an activity, product, or service shall be
thoroughly calculated and considered in deciding whether to proceed with it.
b. Proposition 2: Business shall operate as a two-way open system, with open receipt of
inputs from society and open disclosure of its operations to the public.
c. Proposition 1: Social responsibility arises from social power.
d. Proposition 4: The social costs related to each activity, product or service shall be
passed on to the consumer.
e. Proposition 5: Business institutions, as citizens, have the responsibility to become
involved in certain social problems that are outside their normal areas of operation.
17. Managers can fulfill their social obligation towards consumers by ________.
a. abiding to the laws
b. providing safe products
c. increasing the value of the organization
d. providing safe working environments
e. repaying debts
18. Which of the following statements is true about the social responsiveness approach?
a. It sees business as having societal goals, but lacking economic goals.
b. It considers business as having primarily economic purposes and confines social
responsibility activity mainly to existing legislation.
c. It considers business as having both societal and economic goals as well as the
obligation to anticipate potential social problems and work actively toward preventing
d. It sees business as having both economic and societal goals.
e. It sees business as having societal goals and the obligation to anticipate potential social
problems, but lacking economic goals.
19. Which of the following occurs during the controlling process?
a. Determining how the organization will get where it wants to go
b. Guiding the activities of organization members to help attain organizational objectives
c. Making things happen as they were planned to happen
d. Establishing orderly uses for all the organization’s resources
e. Determining how the organization will achieve its objectives
20. A firm that is involved in assisting community organizations dedicated to education, charities
and the arts is conducting a social responsibility measurement in the ________ area.
d. economic function
e. social investment
21. The Finance department at Lewis & Sons only accounts for 10% of the employees, but wields
the most decision-making power and controls resources and information. As a result, the
Finance department is considered to be a ________ within the organization.
a. majority group
b. determinant group
c. secondary group
d. splinter group
e. model minority
22. In an organization, the group of people who lack critical resources, acceptance and social
status is known as the ________.
a. special interest group
b. prime group
c. majority group
d. advocacy group
e. minority group
23. ________ are statistical characteristics of a population.
24. In the ________ stage, managers are unaware of behaviors they engage in that are problematic
for members of other groups.
a. conscious competence
b. unconscious incompetence
c. controlled competence
d. conscious incompetence
e. unconscious competence
25. According to Donaldson and Scannell, managers in the ________ stage are the most effective
with respect to interacting in a diverse workforce.
a. conscious competence
b. unconscious competence
c. unconscious incompetence
d. conscious competition
e. conscious incompetence
1. A country in which an investment is made by a foreign company is termed as a(n) ________.
a. parent country
b. expatriate country
c. subordinate country
d. host country
e. home country
2. Hugh is an American citizen currently living in Denmark. He works for a company that has its
headquarters in France. He is a(n) ________.
a. host-country national
b. dual citizen
d. home-country national
e. third-country national
3. Which of the following is true for employees of multinational organizations?
a. Expatriates and third-country nationals have to be relocated and undergo training.
b. A host-country national is an organization member who lives and works in a country
where he or she does not have citizenship.
c. A third-country national works for a foreign organization in its home country.
d. A host-country national will face problems adjusting to the culture of the country in
which he works.
e. Host-country nationals are usually the most expensive to employ.
4. The ________ function of management involves determining how an organization will achieve its
5. When a United States computer manufacturer sells a shipment of 40 computers to a retailer in
Germany, the computer manufacturer is engaged in the process of ________.
a. developing a license agreement
d. direct investing
6. If a company in the United States allows a company in England to use its brand name for a fee,
the company is said to have entered into a(n) ________.
a. export agreement
b. import agreement
c. direct investing agreement
d. venture agreement
e. license agreement
7. Which of the following countries is a member of the APEC?
8. The manager of a multinational corporation in the U.S. thinks that following U.S. management
practices is best for its operations in New Zealand because U.S. management practices are
better than the management practices prevalent in New Zealand. This manager is said to have
a(n) ________ attitude.
9. The ________ organization transcends any single home country with ownership, control and
management being from many different countries.
10. The proportion of the total management system that a decision will affect is called
a. scope of the decision
b. span of control
c. level of management
d. unity of command
e. discretionary area
11. An alternative that is considered feasible for solving an existing problem and for
implementation is ________.
12. Jared recently sent an e-mail to all the members of his department asking them for their
opinions about where the department should have its quarterly team lunch. The response was
overwhelming as Jared received more than 40 suggestions. This is an example of the ________.
a. confirmation bias
b. paradox of choice
c. loss aversion effect
d. confidence bias
e. bandwagon effect
13. Which of the following is the final step in the decision-making process?
a. Select the most beneficial alternative
b. Gather feedback to find out if the problem is solved
c. Take action
d. Identify organizational objectives
e. Implement the selected alternative
14. ________ refers to the departure from rational theory that produces suboptimal decisions.
e. Bounded rationality
15. The formula for expected value (EV) is ________.
a. income x probability
b. cost of risk x probability
c. income / probability
d. cost of risk / probability
e. interest rate x probability
16. An SBU with a relatively small market share of a low-growth market is a ________.
b. low-cost leader
c. cash cow
d. question mark
17. Dun’s Burgers has decided to open takeaway counters across the city that will be open until
11 p.m. to cater to people who return late from work. This turns out to be an excellent
strategy as Dun’s becomes a hot favorite with the people who work late shifts. This is an
example of ________ strategy.
a. technology enhancement
d. cost leadership
18. ________ is the ability to provide the organizational resources necessary to implement a
a. Monitoring skill
b. Allocating skill
c. Tactical skill
d. Interacting skill
e. Organizing skill
19. ________ is the ability to create throughout the organization a network of people who can help
solve implementation problems as they occur.
a. Allocating skill
b. Tactical skill
c. Interacting skill
d. Monitoring skill
e. Organizing skill
20. ________ is short-range planning that emphasizes the current operations of various parts of
a. Tactical planning
b. Operational planning
c. Strategic planning
d. Intermediate planning
e. Strategic control
21. A ________ is a single-use plan designed to carry out a special project within the organization.
22. Planning for plant facilities and human resources are instances of ________.
a. environmental planning
b. community planning
c. system planning
d. input planning
e. process planning
23. Which scheduling tool is typically used to schedule management system inputs such as human
resources and machinery?
a. Planning sheets
b. SWOT analysis
c. Work flow diagrams
d. PERT diagrams
e. Gantt charts
24. Which of the following statements is true regarding the critical path of a PERT network?
a. It plays a negligible role in controlling the completion time of the project.
b. It is essentially a bar graph mainly used for scheduling resources.
c. It refers to the sequence of events and activities requiring the shortest period of time to
d. A delay in completing the sequences in the critical path causes no delay in completing
e. It provides an insight into how the unrealistic features of a schedule can be modified.
25. Which of the following is the fourth primary step in designing a PERT network?
a. Determining the time needed for the completion of each activity or event
b. Designing a PERT network reflecting all the information needed
c. Listing the sequence in which the activities/events have to be performed
d. Listing all the activities or events that must be accomplished for the project
e. Identifying the sequence of events and activities requiring the longest period of time
1. According to Fayol’s guidelines for organizing resources, you should ________.
a. not use sanctions against faults and errors
b. make extensive use of regulations and paperwork
c. establish multiple guiding authorities
d. recognize the unity of command
e. not link rewards to performance
2. The second and third steps of the organizing process focus on the ________.
a. allocation of resources and directives
b. results of the organizing strategy
c. tasks to be performed within the management system
d. organizational plans
e. organizational goals and objectives
3. Which of the following is one of the three main components of the management system that
Weber termed a bureaucracy?
a. a loosely defined organizational hierarchy
b. minimum regulations and paperwork
c. emphasis on the human variable
d. close, personal relations among organization members
e. detailed procedures and rules
4. Which of the following is one of Follett’s guidelines on coordination?
a. The human element should be minimized in coordination.
b. Managers can assume that if their system shows coordination now, it will show
coordination in the future.
c. The communication process is an essential consideration in any attempt to encourage
d. Coordination can be achieved with least difficulty through vertical relationships.
e. Personal communication should be minimized in coordination.
5. Informal structure is ________.
a. usually represented in a pyramid form
b. represented primarily by the organization chart
c. usually identical to an organization’s formal structure
d. defined as the relationships among organizational resources as outlined by management
e. molded by individual norms and values and social relationships
6. ________ is directly related to the concept of the scalar relationship—that is, the chain of
a. Matrix structuring
d. Horizontal dimensioning
e. Vertical dimensioning
7. Which of the following is a criticism of Graicuna’s work in the span of management?
a. He does not take into account managers’ relationships outside the organization.
b. He does not recognize the principle of unity of command.
c. He fails to specify what will happen if the number of subordinates increases or
d. He takes into account managers’ relationships outside the organization.
e. He failed to emphasize the importance of span of management on the organization.
8. Pixel Technologies, a manufacturer of electronic products and cell phones, has
departmentalized the organization on the basis of ________ by dividing the business into two
divisions–Electronics Retailers and Cell Phone Retailers.
9. At Landmark Constructions, crucial projects are handled completely by project managers who
are empowered to borrow marketing, sales, engineering, finance and R&D staff and other
employees from various parts of the organization to complete their projects. Identify the
departmentalization mode being used in this company.
10. HR Village, a staffing company, has invited applications for the position of director of
recruitment and compensation. This position is accountable for planning, organizing, and
managing recruitment and compensation services for the company. This list of specific
activities is an example of a ________.
a. job evaluation
b. work plan
c. job specification
d. work sample
e. job description
11. The first step in the functional similarity method of dividing jobs is to ________.
a. designate appropriate activities that must be performed to reach desired objectives
b. design specific jobs by grouping similar activities
c. make specific individuals responsible for performing specific jobs
d. examine management system objectives
e. create an organization chart
12. A manager responsible for executing a limited portion of a function has ________.
a. specific responsibility
b. operating responsibility
c. general responsibility
d. organizational responsibility
e. consultative responsibility
13. Which of the following is NOT one of the four key dimensions for appraising manager
a. Behavior with stockholders
b. Behavior with subordinates
c. Personal attitudes and values
d. Behavior with other groups
e. Behavior with upper management
14. ________ consists of the right to advise or assist those who possess line authority.
a. Lateral authority
b. Rational-legal authority
c. Informal authority
d. Staff authority
e. Functional authority
15. The management philosophy which states that individuals will be held liable for how well they
use their authority or perform their activities, and will be rewarded or punished for doing so is
d. line authority
16. ________ changes emphasize increasing organizational effectiveness by changing controls that
influence organization members during the performance of their jobs.
17. Which of the following is a type of organizational change that emphasizes modifying certain
aspects of organization members to increase organizational effectiveness ?
a. structural change
b. people change
c. administrative change
d. managerial change
e. behavioral change
18. The managerial grid proposes that various managerial styles can be described by a manager’s
concern for ________.
a. quantity and quality
b. customers and company
c. power and acceptance
d. production and people
e. profit maximization and revenue maximization
19. The bodily strain that an individual experiences as a result of coping with some environmental
factor is called ________.
20. A manager wants to implement some changes in the working hours of employees. Two groups
of workers oppose this decision and have contrasting opinions. The manager feels arriving at a
solution that will be acceptable to both parties is impossible. Which of the following strategies
is best suited to handle this conflict?
21. Which of the following is an example of a macro barrier when a manager communicates with
his or her subordinates?
a. The manager is a specialist in information technology and tends to use simplified language.
b. The subordinates constitute a diverse population and speak different languages.
c. The subordinates have a strong negative attitude toward the manager.
d. The manager considers the subordinates to be irresponsible and unprofessional.
e. The manager uses words that have multiple meanings.
22. George is the human resources manager of a small scale manufacturing company. Which of the
following is the best example of nonverbal communication?
a. He uses harsh words during a meeting with one of his co-workers.
b. He prepares a performance appraisal report for one of the employees.
c. He sends an angry e-mail to one of the employees.
d. He uses a loud tone when speaking with a group of employees.
e. He uses words with implicit meanings when he talks to subordinates.
23. The members of a company’s marketing team regularly meet with their peers from the R&D
department to share information and insights on customer product preferences that they have
gathered through market research. This is an example of which of the following types of
24. Which of the following grapevine patterns tends to distort messages the most?
25. Sandra finds out that a rumor about her is doing the rounds in the office—she supposedly
had a rift with her manager over her performance review and is now planning to quit the
company. Though completely untrue, she sets out to find out the person who started the rumor.
She confronts several of her colleagues about the matter and everyone tells her that they heard
it from Sheela, her boss’s secretary. This is an example of the ________ grapevine.
1. ________ is the inner state that causes an individual to behave in a way that ensures the
accomplishment of some goal.
b. Cognitive dissonance
2. Which of the following are the three basic categories of needs identified by Clayton Alderfer in
his ERG theory?
a. esteem, recognition, and goal
b. existence, recognition, and growth
c. existence, relatedness, and growth
d. existence, relatedness, and goal
e. esteem, relatedness, and goal
3. In Alderfer’s ERG theory, ________ need refers to the need for continuing personal development.
4. Which of the following motivation theories focuses on the personal and natural development of
people to explain human needs?
a. McClelland’s acquired needs theory
b. Argyris’s maturity-immaturity continuum
c. Alderfer’s ERG theory
d. Herzberg’s two-factor theory
e. The Vroom expectancy theory
5. According to McClelland, people having the desire to maintain close, friendly, personal
relationships have a high need for ________.
6. Which theory is a set of essentially positive assumptions about human nature?
a. Theory X
b. Expectancy Theory
c. Theory Z
d. Equity Theory
e. Theory Y
7. The process of moving workers from one job to another rather than requiring them to perform
only one simple and specialized job over the long run is ________.
a. cross training
b. team management
c. job enrichment
d. job enlargement
e. job rotation
8. ________ is the presentation of an undesirable behavior consequence or the removal of a
desirable behavior consequence that decreases the likelihood the behavior will continue.
a. Positive reinforcement
c. Negative reinforcement
9. In Likert’s Management System, which style of management is characterized by complete trust
and confidence in subordinates?
a. System 4
b. System 3
c. System 1
d. System 2
e. System 5
10. Which of the following would be an example of a task group?
a. A group set up to consider the feasibility of a new product
b. A group of supervisors responsible for scheduling weekly work
c. A group of students coming together because of their music preferences
d. A group meeting to prepare the routine financial reports
e. A group of employees forming an exercise group
11. Which of the following is one of the major reasons to establish a committee?
a. To perpetuate social and cultural values that group members consider important
b. To obtain status and social satisfaction that people might not enjoy without group
c. To develop new ideas for solving existing organizational problems
d. To encourage groupthink
e. To handle routine organizational activities
12. Which of the following statements about self-managed work teams is true?
a. Self-managed teams consist of a highly integrated group who are responsible for the
b. Members of a self-managed team learn specific tasks required to produce a product and
avoid job rotation.
c. Self-managed teams never take over managerial duties as scheduling work and
vacations and ordering materials.
d. Self-managed work teams evolved in the early to middle 1980s out of problem-solving
e. Self-managed work teams laid the foundation for the special-purpose teams that arose
in the 1990s.
13. Interest groups are ________.
a. informal groups
b. task groups
c. command groups
d. formal groups
e. self-managed work teams
14. Which of the following is one of the primary benefits of informal group membership?
a. Developing new ideas for solving existing organizational problems
b. Perpetuating social and cultural values that group members consider important
c. Generating clarity on what support and input each employee can expect from others
d. Providing basic structure of division of work and responsibilities
e. Promoting discipline in the organization
15. Which of the following is considered a people-related factor that leads to effective team
a. Mutual trust and team spirit
b. Proper technical direction and leadership
c. High power struggle within the team
d. Stable goals and priorities
e. Organizational stability and job security
16. ________ is a component of creativity that refers to everything an individual knows and can do
in the broad domain of his or her work.
b. Creative thinking
17. Which of the following is characteristic of a person who is more likely to think creatively under
high time pressure?
a. He or she can focus on one activity for a significant part of the day as he or she is
undisturbed or protected.
b. He or she receives little encouragement from senior management to be creative.
c. He or she tends to have more meetings and discussions with groups rather than with
d. He or she is less likely to engage in less collaborative work overall.
e. He or she does not get the sense that the work he or she is doing is important.
18. Which of the following steps of the innovation process establishes a new idea that could help
the organization be more successful?
19. Using video conferencing to help organization members across the globe communicate more
effectively is an example of a ________ idea.
20. Which of the following is one of the possible creative ideas for enhancing organizational
success based on Deming’s thoughts on total quality management?
a. Establish an organizational bias toward handling quality issues immediately.
b. Eliminate production processes based simply on producing a quota.
c. Dedicate top management to having customers receive products as promised.
d. Begin each management meeting with a factual and financial review of quality.
e. Dedicate all managers to getting the jobs done correctly the first time.
21. ________ is managerial activity aimed at bringing organizational performance up to the level of
b. Contrarian investing
c. Corrective action
e. Market correction
22. The extent to which an individual is able to influence others so they respond to orders is called
23. In management terms, information refers to ________.
a. a collection of facts or statistics
b. the skill set of the employees carrying out a particular organizational function
c. a collection of numbers, characters, images or other outputs from devices that gather
physical quantities and symbols
d. the set of conclusions derived from the analysis of data that relate to the operation of an
e. raw, unorganized representations of individual facts and/or figures
24. Which of the following is NOT a factor that determines the value of information?
a. Information quantity
b. Information timeliness
c. Information appropriateness
d. Information quality
e. Information cost
25. Which of the following is the last step in operating an IS properly?
a. using the information
b. determining appropriate data
c. transmitting data
d. determining information needs
e. gathering appropriate data