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MGT 521 Final Exam Guide (New, 2018)
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MGT 521 Final Exam Guide (New, 2018)

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

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