Fundamentals of Management

Fundamentals of Management

Fall 2004 Mid-Term

Chapters one through six

Name: ______Date: ______

1. / Managers who select a course of action from among a set of rational alternatives are involved in decision making.
A) / True
B) / False
2. / Smucker's is known for its excellent relationship with its employees and quality product. Based on this information, Smucker's must be an efficient company.
A) / True
B) / False
3. / Chelsea is very concerned with worker morale, and she frequently surveys employees to determine their level of job satisfaction. She feels that people really want to work, to take more responsibility, and to make a contribution. Her approach reflects application of scientific management.
A) / True
B) / False
4. / The fundamental premise of the human relations movement is that the social aspects of the workplace are more important to increasing worker productivity than economic incentives.
A) / True
B) / False
5. / Which of the following involve management?
A) / Jill redesigns her company's management structure.
B) / Anita plans her division's annual budget.
C) / Jorge delivers a motivational speech to his sales associates.
D) / Su-Lin regulates and enforces her company's policies regarding personal use of the Internet.
E) / All of these.
6. / The internal environment of an organization consists of the organization's general environment and task environment.
A) / True
B) / False
7. / Unpleasant outcomes will not occur as long as an individual makes ethical choices.
A) / True
B) / False
8. / Toyota Motors owns factories in the US, which manufacture Toyota-brand cars for sale to US customers. Toyota is making a direct investment.
A) / True
B) / False
9. / Mergers often lead to culture conflicts within organizations.
A) / True
B) / False
10. / BMW and Mercedes are best described as
A) / strategic allies.
B) / competitors.
C) / customers.
D) / regulators.
E) / suppliers.
11. / Small businesses employed the most Americans until the year 2000, when big business took the lead.
A) / True
B) / False
12. / Tactical goals are built upon the foundation provided by the organization's mission statement.
A) / True
B) / False
13. / A firm that manufactures only one product and sells it in many distinct geographical markets is pursuing a single-product strategy.
A) / True
B) / False
14. / Identifying alternative courses of action that the organization might follow if various conditions arise is called operational planning.
A) / True
B) / False
15. / Goals set with and by line-managers are called
A) / strategic.
B) / tactical.
C) / developmental.
D) / imposed.
E) / operational.
16. / If an organization invests large amounts of cash in an SBU classified as a question mark and it subsequently becomes the market leader, the SBU will
A) / still be a question mark.
B) / become a dog.
C) / become a cash cow.
D) / become a star.
E) / None of these.
17. / Programmed decisions are most likely to be made under conditions that are certain.
A) / True
B) / False
18. / In general, the more important the decision, the more attention a manager should pay to developing alternative solutions.
A) / True
B) / False
19. / The pressure that the members of the group feel to reach consensus is a major advantage of groupthink.
A) / True
B) / False
20. / Bar code scanning computers at check out have greatly simplified the inventory _____ decisions.
A) / nonprogrammed
B) / certainty
C) / risk
D) / programmed
E) / need
21. / If you were asked to help a manager establish a nominal group, which of the following would you recommend?
A) / Alternatives are listed on a flip chart
B) / The alternative with the most votes is the solution
C) / Members are permitted to ask questions only for clarification
D) / All of these.
E) / Only “alternatives are listed on a flip chart” and “The alternative with the most votes is the solution.”
22. / All of the following are advantages of group decision making EXCEPT
A) / groupthink may occur.
B) / better decisions generally emerge.
C) / enhanced communication may result.
D) / more information and knowledge are available.
E) / None of these.
23. / Which of the following is a disadvantage of group decision making?
A) / More alternatives are likely to be generated.
B) / More information will be brought to bear on the problem.
C) / More time will be needed to make the decision.
D) / More communication about the decision will result.
E) / All of these.
24. / Which of the following decision-making models is based on the belief that human behavior is often imperfect?
A) / Rational
B) / Emotional
C) / Classical
D) / Behavioral
E) / Sequential
25. / A business owner hires a professional manager so that she, as owner, can focus her attention on developing new ideas. The owner is an entrepreneur.
A) / True
B) / False
26. / The retailing industry has more very small businesses, with fewer than 20 employees, than any other industry.
A) / True
B) / False
27. / As opportunities for women have expanded in the corporate world, the number of women starting their own businesses has declined significantly.
A) / True
B) / False
28. / Wen-Yih would like to start a small business. He is considering buying plastic picture frames from manufacturers in his home country of Taiwan, and selling them to discount and craft stores in the United States. Which industry is Wen-Yih considering?
A) / Transportation
B) / Manufacturing
C) / Retailing
D) / Services
E) / Wholesaling
29. / Which of the following is an advantage of group decision making when compared to individual decision making?
A) / The group process is less expensive.
B) / Groupthink may occur.
C) / Compromise decisions resulting from indecisiveness may emerge.
D) / More alternatives are likely to be generated.
E) / One person may dominate the group.
30. / A benefit of job specialization is that transfer time between tasks decreases.
A) / True
B) / False
31. / Michaela's lawn care business is organized so that each employee reports to one and only one supervisor. This fulfills the requirements of the scalar principle.
A) / True
B) / False
32. / The starting point for all job design activities is determining the level of desired job
A) / specialization.
B) / rotation.
C) / enlargement.
D) / enrichment.
E) / characteristics approach.
33. / George works in acquisitions for the Department of Defense. He knows that it will take years before the projects he works on will be acquired. He often states that having this job gives him great satisfaction in mowing his yard
because then he sees a task completed. His job has low
A) / autonomy.
B) / compensation.
C) / evaluation.
D) / task identity.
E) / rotation.
34. / The major advantage of the H-form structure is the simplicity associated with the similarity of the businesses that make up the organization.
A) / True
B) / False
35. / Actions of peer managers, top managers, and the organization's culture all contribute to the ethical atmosphere of the organization.
A) / True
B) / False

Answer Key

1. / A
2. / B
3. / B
4. / A
5. / E
6. / B
7. / B
8. / A
9. / A
10. / B
11. / A
12. / B
13. / B
14. / B
15. / E
16. / D
17. / A
18. / A
19. / B
20. / D
21. / D
22. / A
23. / C
24. / D
25. / B
26. / B
27. / B
28. / E
29. / D
30. / A
31. / B
32. / A
33. / D
34. / B
35. / A

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