TRUE/FALSE

1. Middle managers are typically responsible for coordinating and linking groups, departments, and divisions within a company.

2. Team leaders direct the work of individuals within the team structure.

3. Companies look for a total of four sets of skills in individuals to identify potential managers. These desired skills are technical skills, human skills, conceptual skills, and motivation to manage.

4. The motivation to manage tends to be higher among managers at higher levels in the organization than it is among managers at lower levels in the organization.

5. For many managers, the knowledge, skills, and abilities that led to success early in their careers (i.e., prior to their promotion into the ranks of management) may not necessarily help them succeed as managers.

6. Frank and Lillian Gilbreth studied the psychology of groups.

7. A Gantt chart can be used to track informal communication paths.

8. According to bureaucratic management principles, those higher in the chain of command do not have the right to give commands, take action, and make decisions concerning activities occurring anywhere below them in the chain.

9. Human relations management focused on managers' roles and authority.

10. Mary Parker Follett believed that managers could deal with conflict through accommodation, mediation, and coercion.

11. Business confidence indices are a viable alternative to economic statistics for management decision making.

12. Perceptual maps are simplified models of external environments.

13. Organizational culture refers to the set of key values, beliefs, and attitudes shared by organizational members.

14. Mission statements do not have to be specific to be effective tools for creating successful organizational cultures.

15. Organizational heroes are used to make sense of organizational events and changes.

16. Ethics is the set of moral principles or values that defines right and wrong for a person or group.

17. Workplace deviance can be categorized in terms of how deviant the behavior is and the organizational cost of the deviant behavior.

18. Under the U.S. Sentencing Commission Guidelines, companies can be prosecuted and punished for the illegal or unethical actions of employees, even if management didn't know about the unethical behavior.

19. Under the U.S. Sentencing Commission Guidelines, companies without compliance programs can pay fines many times larger than companies with established compliance programs.

20. Concentration of effect is how much an act affects the average person.

21. Planning offers three important benefits. They are intensified effort, synergy, and direction.

22. At the beginning of 2004, Gateway, the computer company, set a goal of reaching over $1 billion in quarterly sales that year. This goal does not satisfy all of the S.M.A.R.T. guidelines because it is not attainable or meaningful within Gateway's competitive environment.

23. Both proximal and distal goals are used to provide additional motivation and rewards for employees.

24. Planning works best when the goals and action plans at the bottom and middle of the organization support the goals and action plans at the top of the organization.

25. The three kinds of operational plans are single-use plans, standing plans, and budgets.

26. There are four conditions that must be met if a firm's resources are to be used to achieve a sustainable competitive advantage.The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.

27. The three steps of the strategy-making process are (1) assess the need for strategic change, (2) conduct a situational analysis, and (3) choose the strategic alternatives.

28. Companies face very little uncertainty in their strategic business environments.

29. An analysis of an organization's external environment begins with an assessment of the company's distinctive competencies and core capabilities.

30. The goal of a shadow-strategy task force is to actively seek out its own company's weaknesses.Once those weaknesses are found, the group is to think like a competitor and decide how those weaknesses could be exploited to achieve a competitive advantage.

31. A technology cycle begins with the "birth" of a new technology and ends when that technology reaches its limits and "dies" as it is replaced by a newer, substantially better technology.

32. Technology cycles for low-tech products follow the typical U-curve pattern of innovation.

33. The General Electric Workout is a special kind of activity-oriented change.

34. If it is your business, it is perfectly okay to take the credit for your employee's idea.

35. Person-focused intervention would use training as well as counseling or coaching.

36. In the same way that business is defined as the buying and selling of goods and services, global business is defined as the buying and selling of goods and services by people from different countries.

37. The basis for determining whether Chupa Chups, the world's largest maker of lollipops, received an illegal subsidy from a European Union member nation lies in an examination of the category in which the candy was classified.

38. When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

39. Power distance is greatest in countries where power is distributed equally across all societies and organizations.

40. The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.

MULTIPLE CHOICE:

41. In 2004, Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas, C2 and Pepsi Edge, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse since one of their key tenets is avoiding refined sugar in any amount. The new brands grabbed a combined market share of less than 1 percent.Given that the objective of both soft drink manufacturers was to increase their market share, the introductions were notably:

a. Synergistic

b. Empathetic

c. Inefficient

d. Autonomous

e. Reciprocal

42. To achieve its goal of increased market share, Krispy Kreme launched a program in Palm Beach County, Florida, that awards grade-school students a free doughnut for every A on their report cards.Which management function was used to create this program?

a. Controlling

b. Leading

c. Focusing

d. Planning

e. Organizing

43. Interstate Bakeries, the makers of Wonder bread, declared bankruptcy in 2003.The company's objectives in 2004 were to increase its revenues by at least 5 percent and reduce its net losses by at least 80 percent.Which management function was used to set these goals and will help the company meet these goals?

a. Planning

b. Organizing

c. Controlling

d. Motivating

e. Leading

44. According to the "What Really Works" box, a(n) __________ is a type of study that often shows the conditions under which management techniques may work better or worse in the real world.

a. social audit

b. meta-analysis

c. effectiveness analysis

d. SWOT analysis

e. risk assessment

45. In 2004, the Massachusetts Institute of Technology (MIT) announced that it was going to overcome the "digital divide" by making a $100 laptop for the poor children of the world. By relying strongly on the _____ function of management, MIT has nearly achieved its goal.

a. Planning

b. Organizing

c. Leading

d. Controlling

e. Evaluating

46. Which of the following statements about the origins of management is true?

a. Job enrichment was developed during the last half of the twentieth century.

b. Management as a field of study is only about 125 years old.

c. Information management appeared with the first computers.

d. The use of management functions would have made the building of the Egyptian pyramids more efficient.

e. All of the above statements about the origin of management are true.

47. How did the Industrial Revolution change jobs and organizations?

a. Managers realized the importance of synergistic tasks.

b. Managers realized the importance of customer relations.

c. Low-paid, unskilled workers running machines began to replace high-paid, skilled artisans.

d. Skilled jobs were performed in homes rather than in factories.

e. Managers learned to use delegation.

48. The goal of scientific management was to:

a. make sure workers did not consider their work boring or repetitive

b. decreased wages for individual workers

c. eliminate conflict between workers and management

d. find the one best way to perform each task

e. find different ways to motivate workers

49. A contractor was feeling defeated because the job he was working on was so far behind schedule.As he looked at the job site, he saw one worker moving bricks by carrying two at a time from where they were unloaded to where they were needed.He saw another climbing up a ladder with a few shingles, climbing back down to get more, and then repeating the process._____ could be used to determine how the workers could perform their tasks more efficiently.

a. Time and motion studies

b. Resource assessments

c. Workload analyses

d. Systems analyses

e. Cost-benefit analyses

50. In which of the following situations would a Gantt chart be appropriate to use?

a. building a bridge

b. installing a local area network for a computer system

c. rebuilding a community destroyed by a hurricane

d. planning a Mardi Gras parade

e. all of these

51. According to the __________, companies go through long, simple periods of environmental stability, followed by short, complex periods of dynamic, fundamental environmental change, finishing with a return to environmental stability.

a. environmental change theory

b. theory of environmental dynamics

c. punctuated equilibrium theory

d. theory of resource scarcity

e. environmental cycle

52. In terms of environmental complexity, __________ environments have few environmental factors, whereas __________ environments have many environmental factors.

a. non-competitive | competitive

b. simple | complex

c. stable | dynamic

d. scarce | abundant

e. market-oriented | product-oriented

53. In terms of external organizational environments, the __________ environment affects all organizations while the __________ environment is unique to each company.

a. global | national

b. customer-driven | production-driven

c. general | specific

d. informal | formal

e. specific | general

54. Environmental __________ determines how well managers can understand or predict the external changes and trends affecting their businesses.

a. Complexity

b. Change

c. Adaptability

d. Synergy

e. Uncertainty

55. Which of the following is a component of a local newspaper's general environment and will indirectly influence how it does business?

a. an Internet-based newspaper that carries local news

b. lobbyists for the local airport

c. a local advocacy group demanding the newspaper not print ads for fur coats

d. a trend toward less leisure time

e. its supplier of paper

56. There is a recognized llama industry in the United States. The industry is recovering from a period in which prearranged deals at auctions and other techniques were used to falsely inflate prices.In addition, bad-tempered animals were sedated before being sold. Today its reputation is being built by breeders who go the extra mile to make sure their customers are satisfied. The llama industry has discovered that _____ is the way to create sales.

a. creating channel conflict

b. acting with discretionary responsibility

c. acting ethically

d. upholding the law

e. becoming an ethical ombudsman

57. Which of the following is a recommendation for how managers can model and encourage ethical behavior in employees?

a. use resources only for company business

b. handle information in a confidential and honest manner

c. set reasonable rather than unreasonable goals

d. create a reward system that does not reward unethical behavior

e. all of these

58. In Atlanta, independent auditors are investigating claims the metropolitan area's Boy Scout pack leaders inflated local black membership numbers to 20,000 under instructions from top Boy Scout officials.A civil rights leader contends there are no more than 500 blacks actively involved.Atlanta Boy Scout officials are being accused of:

a. violating federal government policies

b. demonstrating the "move it or lose it" syndrome

c. engaging in unintentional unethical behavior

d. acting as ethical ombudsmen

e. acting as whistleblowers

59. An individual who uses his or her influence to harm others in the company is engaged in:

a. political deviance

b. personal aggression

c. production deviance

d. property deviance

e. organizational irresponsibility

60. If a catalog retailer promised customers it would not sell their information (addresses, phone numbers, e-mail addresses, etc.) to another direct marketing company, and it did, the catalog retailer would be found guilty of invasion of privacy under:

a. the Internet Compliancy Act

b. specific Supreme Court rulings

c. the Federal Trade Act

d. the Cellar-Kefauver Act of 1995

e. the U.S. Sentencing Commission Guidelines

61. Health Canada prepared a revised Food Guide to reflect the evolving cultural profile of the country, from ethnic diversity and the aging population to changing family structure and increased home and work pressures.The aim of the new 2006 guide, which would replace the version written in 1992, was to provide "all Canadians with a vast array of food selections that broadens and enhances their healthy food choices."Which classical management function would be instrumental in achieving this goal?

a. Motivating

b. research and development

c. Planning

d. Marketing

e. Optimizing

62. Health Canada prepared a revised Food Guide to reflect the evolving cultural profile of the country, from ethnic diversity and the aging population to changing family structure and increased home and work pressures.The aim of the new 2006 guide, which would replace the version written in 1992, was to provide "all Canadians with a vast array of food selections that broadens and enhances their healthy food choices."There is a potential for the creators of the new Food Guide to assume they have reached all of the important audiences in a language that everyone can understand.This assumption reflects:

a. one of the pitfalls of planning

b. why benchmarking is often ineffective

c. the need for rules and regulations

d. the importance of distal goals

e. the need to welcome mission statement modification

63. Wal-Mart Stores Inc. has been trying to rekindle growth in its U.S. operations. Sales at its U.S. stores have been declining due to remodeling projects, limited opportunities for U.S. growth, and problems with its clothes offerings. In addition, the low-income shoppers who patronize Wal-Mart may have less money to spend due to higher gas prices. Wal-Mart has been very candid about its need to implement a growth strategy for its U.S. stores. Why has Wal-Mart been so public about this goal?

a. to establish a competitive advantage

b. to create resource munificence

c. to maintain valid benchmarks

d. to encourage goal commitment

e. to alleviate stakeholder criticism

64. A manufacturer of snowboards could set a(n) __________ goal to increase revenues by 8 percent over the next five years and a(n) __________ goal to increase sales next June in Aspen, Colorado, by 3 percent.

a. tactical; strategic

b. operational; tactical

c. distal; proximal

d. operational; strategic

e. proximal; distal

65. People who live in Baton Rouge, Louisiana, love to complain about traffic, but they have a right to complain about Interstate 110 with its truly epic traffic engineering blunders that make every drive along it a dance with death.The goal was to correct the most obvious blunders and reduce traffic accidents along the stretch of 110 that passes through the city.A Department of Transportation manager examining weekly accident reports prepared by Baton Rouge law enforcement would be using which of the accepted methods for tracking progress toward goal achievement?

a. setting realistic and attainable goals

b. gathering and providing performance feedback

c. developing concrete action plans

d. making sure goals are measurable

e. comparing dynamic with mechanistic goals

66. An organization that has __________ has the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

a. grand strategies

b. distinctive competencies

c. competitive advantages

d. Resources

e. strategic stances

67. Top-Flite manufactures Strata golf balls and prices these balls at about three times what ordinary golf balls costs. The Strata ball is selling exceptionally well because customers perceive the ball's patented three-layer construction to improve handling and increase distance.The patent on these golf balls gives Top-Flite a(n):

a. sustainable competitive advantage

b. aggregate marketing strategy

c. reliable differentiation

d. strategic stance

e. differential stance

68. The first step in the strategy-making process is to:

a. assess the need for strategic change

b. conduct a situation analysis

c. choose strategic alternatives

d. evaluate the impact of changes on the internal environment

e. create a strategic budget

69. When you're a bike-lock maker whose slogan is "Tough World, Tough Locks," it doesn't get much tougher than finding out that most of the locks you've been making for the last 30 years can be picked with a Bic pen. That, sadly, is what happened to Ingersoll-Rand subsidiary Kryptonite, after bloggers begin posting videos showing just how easy it is to pop open the company's U-shaped locks. A spokeswoman for the company said that the locks nonetheless provide "an effective deterrent against theft."This reluctance to change how the lock was made is known as:

a. competitive dissonance

b. strategic apathy

c. competitive inertia

d. strategic inertia

e. competitive apathy

70. U.S. residents accounted for over 75 percent of cruise ship passengers, and U.S. ports had 8 million passengers leaving on cruises in 2004.The growth in cruise travel was phenomenal after the terrorist attacks on September 11, 2001.According to a situational analysis, this event created an _____ for the industry.

a. internal strength

b. internal weakness

c. internal threat

d. external weakness

e. external opportunity

71. McDonald's restaurants are involved in a long-term, worldwide movement to change consumers' perceptions of its products by selling food that is healthier. McDonald's is engaged in:

a. organizational change

b. reverse engineering

c. Demarketing

d. market diversification

e. product revitalization

72. In the successful implementation of creative ideas in organizations, ____ must necessarily come before ____.

a. synergy; resource deployment

b. organizational innovation; creativity

c. resource development; creativity

d. organizational development; organizational innovation

e. creativity; organizational innovation

73. David Waters intended Honolulu-based Centaur Zone Cafe to be the prototype of an international franchise of coffeehouses.He opened his first coffeehouse right next to Hawaii Pacific University in October.After a slow beginning, college students found the coffeehouse, and Waters made enough to pay the coffeehouse's bills, but then came summer and his customers went home.But by the time students returned, Hawaii's poor economy was entering its seventh year of decline and the coffeehouse was running at a net loss.Waters failed to see that a year-round business could not depend on college students nor did he take into account the Hawaiian economy.He was in which stage of organizational decline?

a. Blinded

b. Inaction

c. Crisis

d. Divestment

e. Dissolution

74. The management of a large urban-based hospital wanted to increase its profits. The consulting firm developed a plan to enhance the hospital's profitability. In step one of this plan, clinical documentation specialists hired by the hospital and trained by the consultants reviewed patients' charts and posted queries in the charts for the physicians to answer about treatment and tests conducted but physicians refused to answer the questions because they didn't want to lose their freedom to determine the best treatments for their patients. Which of the following actions should be taken to overcome this resistance to change?

a. include the physicians in the planning and implementing decision making

b. show the physicians how much the hospital administration supports these changes

c. use formal power and authority to force the physicians to comply

d. educate the physicians about why the change is needed and communicate change-related information to them

e. create self-mentoring units among teams of physicians

75. There are eight general steps for organizational development intervention. The first step is:

a. Pioneering

b. Inception

c. Introduction

d. Entry

e. Startup

76. ____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.

a. A strategic alliance

b. Direct foreign investment

c. A global new venture

d. A joint venture

e. Direct exporting

77. The U.S. Rice Millers' Association claims that if the Japanese rice market were opened to imports by lowering tariffs, the resultant lower prices would save Japanese consumers about $6 billion annually. The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of:

a. a voluntary government restriction

b. geocentrism

c. protectionism

d. a security quota

e. a bureaucratic subsidy

78. Trade barriers and free trade agreements matter to consumers because they do which of the following:

a. increase choices

b. increase competition

c. increase purchasing power

d. decrease what people pay for necessities

e. all of the choices

79. Sodiaal is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. Before it purchased a controlling stake in Yoplait S.A.S. in 2011, General Mills paid Sodiaal for the right to sell Yoplait yogurt in the United States. This is an example of:

a. licensing

b. a global joint venture

c. exporting

d. a strategic alliance

e. direct investment

80. The most important factor used by a globalizing company for determining if a country or a region has an attractive business climate is:

a. easy access to growing markets

b. marketplace metamorphosis

c. global synergy

d. a large, unskilled workforce

e. natural boundaries