Corporate Strategy
Chapter Exam Questions
Course Introduction
Corporate Strategy explores the frameworks and decision-making processes used by organizations to achieve long-term objectives and create competitive advantage at the enterprise level. This course examines topics such as industry analysis, resource allocation, diversification, vertical integration, mergers and acquisitions, and global strategy. Through case studies and real-world examples, students learn how senior management aligns organizational resources, capabilities, and business portfolios to respond effectively to changing market dynamics and stakeholder expectations. The goal is to equip students with analytical tools and strategic insights necessary for formulating and implementing strategies that drive sustainable growth and value creation in complex and dynamic environments.
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ORGB 5th Edition by Debra L. Nelson
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Page 2
Chapter 1: Organizational Behavior and Opportunity
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Q1) In the context of interdisciplinary influences, _____ is the applied science of energy and matter.
A)psychology
B)engineering
C)sociology
D)medicine
Answer: B
Q2) Kantone Corp.is a producer of cars and motorcycles.Kantone Corp is part of the _____.
A)manufacturing sector
B)public sector
C)service sector
D)nonprofit sector
Answer: A
Q3) Which of the following statements is true of quality improvement?
A)It can always be optimized.
B)It enhances the probability of organizational success.
C)It leads to the stagnation of customer needs and expectations.
D)It decreases customer responsiveness and resource effectiveness.
Answer: B
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Chapter 2: Challenges for Managers
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Q1) The ethical questions in procedural justice examine the process by which an organization distributes its resources.
A)True
B)False
Answer: True
Q2) Provide a brief explanation for the character theories of ethics.
Answer: Answers will vary.Virtue ethics, of which character theories of ethics are a type, offer an alternative to understanding behavior in terms of self-interest or rules.Character theories of ethics emphasize the character of the individual and the intent of the actor instead of the character of the act itself or its consequences.These virtue-ethics theories are based on an Aristotle's view of ethics, which focused on an individual's inner character and virtuousness rather than on outward behavior.Thus, the good person who acted out of virtuous and right intentions was one with integrity and ultimately good ethical standards.Robert Solomon is the best known advocate of this Aristotelian approach to business ethics.He advocates a business ethics theory centered on the individual within the corporation, emphasizing personal virtues as well as corporate roles.Solomon's six dimensions of virtue ethics are community, excellence, role identity, integrity, judgment, and holism.Please see the section "Ethics, Character, and Personal Integrity" for more information.
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Chapter 3: Personality, Perception and Attribution
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Q1) Which of the following is a proposition of interactional psychology?
A)Behavior is a function of a discontinuous, unidirectional interaction of a person in a situation.
B)A person is inactive in the interactional process and is unaffected by the situation he or she is in.
C)Two aspects of a situation are important: the objective situation and the person's subjective view of the situation.
D)People's cognitive, affective, motivational, and ability factors do not vary.
Answer: C
Q2) The process by which individuals try to control the impressions others have of them is called impression management.
A)True
B)False
Answer: True
Q3) Self-report questionnaires suffer from potential biases as it is difficult to view your own personality objectively.
A)True
B)False
Answer: True
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Chapter 4: Attitudes, Emotions and Ethics
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Q1) Asterix Solutions, an IT firm, is downsizing to reduce its fixed costs.Erin, an employee at the firm, observes that several competent employees are being laid off while those who are incompetent are being retained.Erin decides to take revenge against her manager and sabotages the project reports on her manager's computer.Erin is engaging in _____.
A)ethical behavior
B)workplace deviance behavior
C)organizational citizenship behavior
D)altruistic behavior
Q2) To prevent and manage workplace deviance behavior, managers should:
A)increase the power distance in the organization.
B)give all employees high performance ratings.
C)terminate employees who show deviance.
D)encourage positive attitudes among employees.
Q3) Positive moods at work:
A)decrease deviance.
B)decrease organizational citizenship behavior.
C)lead to more turnover intentions.
D)increase altruistic behavior.
Q4) What are the advantages of displaying ethical behavior for a firm?
Page 6
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Chapter 5: Motivation at Work
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Q1) Work conditions related to dissatisfaction caused by discomfort or pain were labeled motivation factors.
A)True
B)False
Q2) Alderfer classified Maslow's physiological and physical safety needs in a growth need category.
A)True
B)False
Q3) In the context of Herzberg's two-factor theory, which of the following is true of hygiene factors?
A)They relate to job satisfaction.
B)They directly affect a person's drive to do a good job.
C)They challenge people to grow and invest themselves in an organization.
D)They are important to a certain level but unimportant beyond that threshold.
Q4) Adam Smith argued that a person's self-interest was determined by the government.
A)True
B)False
Q5) Briefly identify and explain the two new ideas in motivation.
Q6) Briefly explain McGregor's Theory X and Theory Y.
Page 7
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Chapter 6: Learning and Performance Management
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Q1) 360-degree feedback is based on a single source of information to improve accuracy of performance appraisals.
A)True
B)False
Q2) In the context of reinforcement theory, _____ are the results that a person finds attractive or pleasurable.
A)theoretical frameworks
B)positive consequences
C)negative consequences
D)learning models
Q3) Formally assigned mentors from higher up in the organizational hierarchy are always more effective guides than supervisors and coworkers.
A)True
B)False
Q4) Attributions are formed based on:
A)feedback from coworkers.
B)whether informational cues are low or high.
C)objective and accurate opinions provided by managers.
D)openness and trust in the workplace.
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Chapter 7: Stress and Well-Being at Work
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Q1) Describe interpersonal demands as a source of stress.
Q2) George, a line cook at a fast-food restaurant, has been flipping burgers for more than 5 years at the same place.The management does not wish to change his position or give him a promotion.Due to this, George begins to experience apathy, and his job performance suffers.In this scenario, George is experiencing a psychological response to job stress called burnout.
A)True
B)False
Q3) Role conflict results from:
A)lack of control and poor leadership
B)emotional toxins and role ambiguity.
C)civic and volunteer work overload.
D)inconsistent or incompatible expectations.
Q4) Whether activated by an ego-ideal/self-image discrepancy, a poorly defined social role, a cognitive appraisal suggesting threat, or a lack of balance, the resulting stress response is characterized by a predictable sequence of mind and body events.
A)True
B)False
Q5) Briefly describe the psychophysiology of the stress response.
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Chapter 8: Communication
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Q1) Malcolm, a senior editor at a publishing house, often loudly criticizes his subordinates in front of the other colleagues even when the subordinates are not at fault.This leaves them embarrassed and humiliated.He also unnecessarily swears and talks at elevated tones while expressing himself.It is evident that Malcolm exhibits _____ at his workplace.
A)nondefensive communication
B)passive behavior
C)submissive behavior
D)dominant defensiveness
Q2) Seating arrangements and dynamics can be examined in a _____ study.
A)paralanguage
B)proxemics
C)kinesics
D)language
Q3) Information overload for employees is most likely caused when supervisors:
A)fail to filter and disseminate information selectively to them.
B)tend to use media of communication that lack information richness.
C)do not support two-way communication.
D)want to withhold details from them.
Q4) Describe the significance of paralanguage in nonverbal communication.
Page 10
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Chapter 9: Work Teams and Groups
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Q1) _____ issues include goals and objectives, operating guidelines, performance measures, and role specification.
A)Self-managed team
B)Virtual team
C)Status structure
D)Work team structure
Q2) In the norming stage, a group's focus will turn from interpersonal relations to:
A)decision making and task accomplishment.
B)power struggles.
C)skill enhancement.
D)evaluation of the group's performance.
Q3) _____ include the ability to enjoy competition, play fair, and be a good winner or loser; and to have access to information for monitoring where the team and members are in the competition.
A)Positive competitive teamwork skills
B)Competence skills
C)Competition skills
D)Cooperative teamwork skills
Q4) Identify the stages of group development in Bruce Tuckman's five-stage model.
Q5) Describe self-managed teams.
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Chapter 10: Decision Making by Individuals and Groups
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Q1) The organizational foundations include a _____ that is essential because of the uncertainty within the organization.
A)nominal group technique
B)social organizational scheme
C)supportive organizational culture
D)social comparison approach
Q2) Using the _____ can help an individual develop his nonpreferences.
A)truth-wins rule
B)two-thirds-majority rule
C)bounded rationality model
D)Z problem-solving model
Q3) As an economy becomes increasingly based on knowledge work, participative decision making decreases.
A)True
B)False
Q4) Over optimism is one of the reasons for escalation of commitment.
A)True
B)False
Q5) Describe the foundations for participation and empowerment.
Q6) What are the elements of the decision making process?
Page 12
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Chapter 11: Power and Political Behavior
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Q1) Which of the following is true of Kanter's symbols of power?
A)They can only identify weak people in organizations.
B)They have an active, other-directed element.
C)They are used for budget cutting.
D)They are used to create motivation.
Q2) For an agent to have referent power over a target, the agent should be superior to the target.
A)True
B)False
Q3) When employees perceive that there are dominant interest groups or cliques at work, they are less satisfied with pay and promotions.
A)True
B)False
Q4) Women tend to view political behavior more favorably than do men.
A)True
B)False
Q5) Influence is only exercised upward within an organization.
A)True
B)False
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Chapter 12: Leadership and Followership
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Q1) In the context of Fiedler's contingency theory of leadership, _____ are primarily gratified by developing good, comfortable interpersonal relationships.
A)task-oriented leaders
B)relationship-oriented leaders
C)achievement-oriented leaders
D)laissez-faire leaders
Q2) Early evidence shows that men tend to use a more people-oriented style that is inclusive and empowering than do women.
A)True
B)False
Q3) The path-goal theory suggests that the leader's behavior should be adjusted to the maturity level of the followers.
A)True
B)False
Q4) Good leaders never make good followers.
A)True
B)False
Q5) Briefly explain the five guidelines for leadership.
Q6) Briefly explain the characteristics of an alienated follower.
Page 14
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Chapter 13: Conflict and Negotiation
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Q1) _____ is an approach in which the parties' goals are not seen as mutually exclusive, but the focus is on both sides achieving their objectives.
A)Distributive bargaining
B)Accommodating
C)Integrative negotiation
D)Compromising
Q2) Managers should work to stimulate functional conflict when they suspect their group is suffering from groupthink.
A)True
B)False
Q3) Administrative orbiting and secrecy are very effective conflict reduction techniques.
A)True
B)False
Q4) A key to recognizing functional conflict is that it is often cognitive in origin.
A)True
B)False
Q5) What are the different power networks as described by W.F.G.Mastenbroek?
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Chapter 14: Jobs and the Design of Work
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Q1) According to Frederick Taylor, the role of a worker in an organization is to:
A)carefully calibrate each task of the organization.
B)constantly challenge the decisions made by the top management.
C)think or deliberate what needs to be done.
D)execute tasks defined by the management.
Q2) According to the Work Value Scales study, the two common basic work dimensions across cultures are:
A)work content and job context.
B)career aspiration and organizational path.
C)job growth and work scope.
D)living status and business value.
Q3) Which of the following statements is true of sociotechnical systems (STS)?
A)STS emphasizes teamwork and self-managed and autonomous work groups.
B)STS is completely different from lean production methods.
C)STS discourages social considerations in job design.
D)STS is based on Taylor's scientific management approach to job design.
Q4) The social information-processing model emphasizes objective core job characteristics.
A)True
B)False
Page 16
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Chapter 15: Organizational Design and Structure
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Q1) _____ is the design process of linking tasks together to form an organizational structure that supports goal accomplishment.
A)Standardization
B)Formalization
C)Differentiation
D)Integration
Q2) The level of an organization's environment that includes stakeholders such as unions, customers, suppliers, competitors, government regulatory agencies, and trade associations is called the:
A)task environment.
B)operational environment.
C)mechanistic environment.
D)organic environment.
Q3) The adhocracy emphasizes the support staff and mutual adjustment among people.
A)True
B)False
Q4) Describe how the personalities of an organization's managers may adversely affect the structure of the organization.
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Chapter 16: Organizational Culture
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Q1) Managers can encourage ethical behavior in an organization by:
A)controlling instances of whistle-blowing.
B)listening to rationalizations for unethical behavior.
C)promoting the philosophy that ethical behavior makes good business sense.
D)promoting the belief that the impact of implementing a code of ethics is always positive.
Q2) Assumptions are at the deepest and most fundamental level of an organization's culture.
A)True
B)False
Q3) Which of the following statements is true of stories?
A)Stories are very specific and do not allow listeners to draw differing conclusions.
B)Stories are typically part of rites of degradation.
C)Stories help in orienting new employees.
D)Stories are always based on myths.
Q4) Provide an organizational example of each of the following artifacts: ceremony and story.
Q5) Briefly discuss the three perspectives or theories about the relationship between organizational culture and performance.
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Chapter 17: Career Management
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Q1) The top-down firm meant:
A)technical or functional development is overlooked in favor of firm specific learning.
B)being loyal to one's work group can be more important than the project allocated to the group.
C)competitiveness and added value are the responsibility of corporate experts.
D)business units are free to cultivate their own markets.
Q2) Which of the following statements is true of older workers?
A)They are more productive and less resistant to change.
B)They may face discrimination and stereotyping.
C)They have higher rates of tardiness and absenteeism and are less safety conscious.
D)They are less satisfied with their jobs than are younger workers.
Q3) _____ involves knowing what to expect, both good and bad, which gives a newcomer in a company a sense of control that is important to job satisfaction and performance.
A)Open mindedness
B)Job stabilization
C)Uncertainty reduction
D)Satisficing
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Chapter 18: Managing Change
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Q1) Identify a true statement about management by objectives.
A)It involves separate goal setting for employees and managers.
B)It leads to role conflict and ambiguity.
C)It clarifies what is expected of employees.
D)It negatively affects communication.
Q2) Fear of loss occurs when:
A)an employee's status is threatened.
B)an employee questions his or her competence to deal with changes.
C)an employee fears his or her own failure as a result of changes.
D)an employee's interpersonal relationships are threatened.
Q3) Which of the following is a disadvantage that internal change agents have in managing the change process in an organization?
A)They do not know about the organization's history and political system.
B)They are careless about managing change.
C)They do not understand the organization's culture.
D)They are too close to the situation to have an objective view of what needs to be done.
Q4) The final step in Kurt Lewin's change model is moving.
A)True
B)False
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