1) Planning involves which of the following?
A. Analyzing current situations
B. Determining rewards for goalsachievement
C. Motivating employees
D. Implementing necessarychanges
2) _______ is specifying the goals to be achieved and deciding inadvance the appropriate actions needed to achieve those goals.
A. Staffing
B. Leading
C. Organizing
D. Planning
3) Advances in genetic engineering and biotechnology are expectedto produce some food products that will become available year-roundeven in northern climates. These changes will provide grocers withan opportunity to reduce their shipping costs while at the sametime, offering fresher produce to their customers. These advancesare an example of changes in the
A. technological environment
B. economic environment
C. political environment
D. ecological environment
4) _________ trends regarding how people think and behave havemajor implications for management of the labor force, corporatesocial actions, and strategic decisions about products andmarkets.
A. Psychological
B. Economic
C. Technological
D. Societal
5) Which of the following is a step in the decision-makingprocess?
A. Generating an idea
B. Good business planning
C. Evaluating the decision
D. Delegating a task
6) Which is a step in the decision-making process?
A. Resolving and reducingconflict
B. Making the choice
C. Using the lack of structure
D. Delegating a task
7) The targets or ends the manager wants to reach are called
A. goals
B. missions
C. visions
D. strategies
8) In the _______________ stage of the planning process, managersshould weigh the advantages, disadvantages, and potential effectsof each alternative goal and plan.
A. goal and evaluation
B. goal and plan selection
C. implementation
D. alternate goals and plans
9) Tactical planning would include which of the following?
A. Profit goals
B. Design, test, and install theequipment needed to produce a new product line
C. Human resources requirements
D. Return on investment
10) The internal analysis component of the strategic managementprocess assesses the organization’s
A. performance levels
B. competitors
C. industry growth rate
D. product substitutions in themarket
11) Suppose you face a question regarding how to handle a defectivepiece of equipment that your company sold. To tell the customerwould cost you a substantial amount of money, but if the equipmentfails, it could lead to serious injury of the customer. You decideto disclose the defect and suggest alternatives to eliminate therisk of injury. This decision employs which ethical approach?
A. Universalism
B. Egoism (incorrect)
C. Relativism
D. Virtue ethics
12) Your organization faces an ethical question. There has been aproblem with your accounting process that has resulted in lowerprofits being reported than were actually earned. You are attendinga meeting where senior management is deciding how to handle thesituation. The people at the table have varying views of whataction to take and why. John wants to report the error immediatelybecause he believes that it is the right thing to do and that willkeep them all out of jail. Bruce wants to report the error becauseit is the honest thing to do. After hearing his colleagues’opinions, Carlos says he wants to report the error as well becausehe believes the group is right. Carlos is using which ethicalsystem for his decision making?
A. Universalism
B. Relativism
C. Utilitarianism
D. Virtue ethics
13) In the study by Lawrence and Lorsch, companies in complex,dynamic environments developed _____ levels of differentiation; and_____ levels of integration.
A. low; low
B. high; high
C. low; high
D. high; low
14) An aspect of the organization’s internal environment created byjob specialization and the division of labor is called
A. differentiation
B. integration
C. division of labor
D. specialization
15) An organization with departmentalization that groups unitsaround products, customers, or geographic regions is called a
A. divisional organization
B. centralized organization
C. matrix organization
D. functional organization
16) Which of the following statements about matrix organizations istrue?
A. A matrix organization is the sameas a functional organization.
B. A matrix organization is the sameas a product organization.
C. A matrix organization is a hybridof the functional and divisional organizational forms.
D. A matrix organization isconsidered out-of-date compared to the organic organization.
17) An organization with departmentalization that groups unitsaround products, customers, or geographic regions is called a
A. centralized organization
B. matrix organization
C. virtual organization
D. divisional organization
18) Sports International (SI) began business by making shoes forathletes. They soon expanded into making shoes for non-athleticpurposes. They now manufacture and distribute clothing, sportingequipment, and protective sports gear worldwide. They aredepartmentalized by products sold to serious athletes, productssold to “weekend” athletes and products sold to sports teams. SIhas utilized which form of departmentalization?
A. Geographic
B. Customer
C. Functional (incorrect)
D. Matrix
19) The trait known as leadership motivation suggests that greatleaders
A. can motivate others to workhard
B. can motivate others to becomeleaders
C. can motivate others to join
D. want to lead
20) A leadership perspective that attempts to identify whateffective leaders do and the behaviors they exhibit is referred toas the
A. behavioral approach
B. trait approach
C. transformational leadership
D. strategic approach
21) __________ leadership invites colleagues at the same level tosolve problems together.
A. Horizontal
B. Collegial
C. Lateral
D. Linear
22) Leaders who relate to others to serve their needs and enhancetheir personal growth while strengthening the organization areknown as
A. lateral leaders
B. shared leaders
C. bridge leaders
D. servant-leaders
23) The basic goal of managing diversity is to:
A. treat all people the same.
B. increase the numbers ofminorities in business.
C. enhance organizationalcohesiveness.
D. understand and value employeedifferences.
24) Future trends in the labor force include a
A. smaller labor force
B. more experienced labor force
C. more homogenous labor force
D. younger labor force
25) Behavior that gives purpose and meaning to organizations, whileenvisioning and creating a positive future, is known as
A. strategic leadership
B. supervisory leadership
C. organizational leadership
D. task leadership
26) The correspondence between actions and words that includecharacteristics such as honesty and credibility is known as
A. drive
B. self-confidence
C. knowledge of the business
D. integrity
27) Owners from two businesses have asked you which type of controlsystem they should utilize. To help you make your decision, theyhave each provided a brief description of their organization. AlphaOmega, Inc., is a large corporation built in the 1950s. Theyproduce chemical concentrates for industrial cleaning. Theirorganization uses a strict set of rules and regulations with theirworkforce. They have the ability to track a large amount of datausing statistical techniques. Mid-Atlantic Health is a regionalmedical center. They want to use a control system that will allowthem to tie pricing of services and profits to specific services inthe medical center. The control systems that should be used in thescenarios above were developed by
A. William Ouchi
B. Xerox
C. Frederick Taylor
D. Motorola
28) Your manager is speaking to a group of employees about aproblem in your department. Employees are not complying with therules regarding clocking in and clocking out each day. The rules inthis situation are very important as employees will not receivetheir correct pay if the clocking procedures are not followed.There are three suggestions being considered to address thisproblem.
1. Employees will be monitored at the entranceduring shift changes to make sure that each complies with theprocedure.
2. Reports will be reviewed at the end of eachpay period. The reports will contain data tracking the number ofemployees not complying with the procedures each shift. Employeesviolating the procedure will be counseled to correct theproblem.
3. A new procedure will be developed describingan easier procedure for employees to follow. Training will beconducted so that each employee knows the policy and the procedurebefore it is enacted.
Option 1 describes which approach to bureaucratic control?
A. Feedback (incorrect)
B. Concurrent
C. Feedforward
D. Market
29) Suppose you are interviewing the CEO of a large company. TheCEO is telling you about his or her job as a manager and how he orshe spends time. Using the description below, which function ofmanagement is the CEO most likely describing in this example?
“My job, for some part of each day, is to empower our employees tothink of things in new and different ways, not just to come to workand complete the tasks on a list.”
A. Organizing
B. Leading
C. Controlling
D. Decision making
30) Suppose you are interviewing the CEO of a large company. TheCEO is telling you about his or her job as a manager and how he orshe spends time. Using the description below, which function ofmanagement is the CEO most likely describing in this example?
“Every six months or so, my senior management team and I meet todiscuss the goals that will be achieved over the next year, threeyears, and beyond. We then make sure we are clear on who will takeresponsibility to see that the appropriate actions are undertakento achieve our goals within the time frame we set.”
A. Planning
B. Organizing
C. Leading
D. Decision making





