Foundations of Management
Chapter Exam Questions
Course Introduction
Foundations of Management introduces students to the core principles and practices that underpin effective management in contemporary organizations. The course covers fundamental topics such as planning, organizing, leading, and controlling, while exploring the roles and responsibilities of managers in both local and global contexts. Students will examine key management theories, ethical considerations, decision-making processes, and communication strategies, gaining insights into how managers drive organizational performance and adapt to changing environments. Through case studies and practical examples, learners develop essential skills for analyzing management challenges and applying best practices in real-world settings.
Recommended Textbook Management 13th Edition by Richard
L. Daft
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Page 2
Chapter 1: The World of Innovative Management
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Q1) The process of management in the workplace is changing. In the past, a manager's task was to achieve organizational goals by maintaining tight control over his or her employees while standardizing procedures to maintain stability. Today's managers are asked to empower employees while encouraging collaboration and innovation. Contrast today's workforce with the workforce of the past. What developments in present society necessitate a shift in management style? Can you foresee other management style changes on the horizon?
Answer: People in today's society want to feel like they are making a valuable contribution in the workplace; they are much less likely to relinquish "control" to their manager. They often demand more flexibility and creativity in their work situation because their lives are fast-paced, unpredictable, and increasingly mobile. Today's managers have to accomplish more with fewer resources. They recognize the value of being an enabler rather than a controller, using an empowering leadership style, and enlisting the cooperation of willing workers who are part of a team. Improved communication techniques, use of social media, and the increase in off-site workers will surely force even more changes related to management style in the future.
Q2) Identify the four functions of management.
Answer: Planning, organizing, leading, and controlling
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Page 3
Chapter 2: The Evolution of Management Thinking
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Q1) __________ refers to the field of management that specializes in the physical production of goods or services.
Answer: Operations management
Q2) Follett and Barnard were early advocates of a more humanistic perspective on management that emphasized the importance of understanding human behaviors, needs, and attitudes in the workplace, as well as social interactions and group processes.
A)True
B)False
Answer: True
Q3) Out of all of the management perspectives, the classical perspective has been strongest from the 1950s until today.
A)True
B)False
Answer: False
Q4) The __________ draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting.
Answer: behavioral sciences approach
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Chapter 3: The Environment and Corporate Culture
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Sample Questions
Q1) Included in a(n) __________ are sectors that have a direct working relationship with the organization, among them customers, competitors, suppliers, and the labor market.
Answer: task environment
Q2) Integrated Computers, Inc. wants to compile a profile of the customer it will target in its next promotional mailing. What environment would this be found in?
A) Internal
B) Task
C) Work
D) General
E) None of these
Answer: B
Q3) An achievement culture values:
A) personal initiative.
B) meeting the needs of employees.
C) responsiveness to customers.
D) being thrifty.
E) all of these.
Answer: A
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Chapter 4: Managing in a Global Environment
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Q1) __________ means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.
Q2) Briefly explain the difference between high power distance and low power distance.
Q3) A company's risk of loss of assets, earning power, or managerial control due to politically based events or actions by host country governments is known as
Q4) With exporting, the company transfers its products for sale and maintains its production facilities in foreign countries.
A)True
B)False
Q5) One way that managers can fight their own ethnocentric tendencies is to:
A) serve the bottom of the pyramid.
B) learn a foreign language.
C) develop a high power distance.
D) understand differences in social values.
E) all of these.
Q6) In a(n) __________, people use communication primarily to exchange facts and information.
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Chapter 5: Managing Ethics and Social Responsibility
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Q1) Employee disclosure of illegal, unethical, or illegitimate practices on the employer's part is called __________.
Q2) The domain of ethics has no specific laws.
A)True
B)False
Q3) The manager of a new research and development firm wants to ensure that all business performed follows ethical practices. Compose a brief company policy statement that explains the concept of "ethics" and "ethical behavior" in a way that all employees understand expectations. Be sure to make clear the relationship between ethics, law, and free choice.
Q4) Ethics, found between the domains of law and free choice, is the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong.
A)True
B)False
Q5) The __________ contends that acts are moral when they promote the individual's best long-term interests.
Q6) __________ requires that different treatment of people not be based on arbitrary characteristics.
Page 7
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Chapter 6: Managing Start-Ups and New Ventures
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Q1) A(n) __________ is an open office environment that is shared by multiple freelance entrepreneurs as well as corporate telecommuting employees or others who don't have a regular office.
Q2) One of the biggest mistakes that new entrepreneurs is in not knowing when to pivot, which means knowing when to abandon a failing business.
A)True
B)False
Q3) Entrepreneurs in the sustainer category like the chance to balance work and personal life and often don't want the business to grow too large.
A)True
B)False
Q4) The Small Business Administration (SBA) can provide loan financing for small business start-ups.
A)True
B)False
Q5) The __________ means that entrepreneurs are motivated to excel and pick situations in which success is likely.
Q6) Name the three ways that entrepreneurs can become business owners.
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Chapter 7: Planning and Global Setting
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Q1) One of the biggest benefits of planning is that, in a turbulent environment, plans create greater organizational flexibility.
A)True
B)False
Q2) Tactical goals and plans are the responsibility of frontline managers and supervisors.
A)True
B)False
Q3) Which of the following are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans?
A) Tactical goals
B) Strategic plans
C) Operational plans
D) Strategic goals
E) Organizational plans
Q4) Many firms engage in __________ to prepare the organization, its managers, and its employees to cope with sudden catastrophic events that could destroy the firm if a crisis-response plan were not in place.
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Chapter 8: Strategy Formulation and Execution
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Sample Questions
Q1) Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will:
A) conduct an external wage survey.
B) assess the strengths, weaknesses, opportunities, and threats that impact his firm.
C) choose a grand strategy for his firm.
D) do a cost-benefit analysis.
E) develop a mission.
Q2) Competitive advantage refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.
A)True
B)False
Q3) For successful execution, alignment of everyone in the organization must occur. A)True
B)False
Q4) Briefly describe the tools for putting strategy into action.
Q5) With a(n) __________, product design and advertising are standardized throughout the world.
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Chapter 9: Managerial Decision Making
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Sample Questions
Q1) If Vaughn uses the administrative model of decision making, which of these assumptions would he reject?
A) Most managers settle for a satisficing rather than maximizing solution.
B) Managers' searches for alternatives are limited because of human, information, and resource constraints.
C) Rational procedures will normally lead to the best solution in a complex organization.
D) Decision goals often are vague, conflicting, and lack consensus among managers.
E) Managers often are unaware of problems or opportunities that exist in the organization.
Q2) The political model of decision making assumes that managers have the time, resources, and mental capacity to identify all dimensions of the problem and process all relevant information.
A)True
B)False
Q3) __________ means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.
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Chapter 10: Designing Organization Structure
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Q1) Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach.
A)True
B)False
Q2) Most organizations today discourage managers to delegate authority to the lower levels given the challenges to meet customer needs and adapt to the environment.
A)True B)False
Q3) One major disadvantage of the virtual network approach is lack of hands-on control.
A)True
B)False
Q4) An organization that uses an organic structural approach:
A) has a rigid structure.
B) is characterized by decentralized decision-making authority. C) is highly specialized.
D) is characterized by rules and procedures.
E) typically has goals of efficiency and a stable environment.
Q5) List three disadvantages of the divisional structure.
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Chapter 11: Managing Change and Innovation
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Q1) A __________ is a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation.
A) new-product group
B) matrix group
C) new-venture team
D) new-venture fund
E) change team
Q2) With __________, organization development change agents survey employees to gather their opinions regarding corporate values, leadership, participation, cohesiveness, and other aspects of the organization, then meet with small groups to share the results and brainstorm solutions to problems identified by the results.
Q3) Exploration is the aspect of product and technology innovation that involves creating situational mechanisms to make sure new ideas are carried forward, accepted, and implemented.
A)True
B)False
Q4) Managers in creative companies avoid risk and experimentation.
A)True
B)False
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Chapter 12: Managing Human Resources
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Q1) Rock Bottom, Inc. (RBI) has a relatively high turnover rate among its new employees. Recently, the human resource department conducted a series of interviews with employees who were choosing to leave RBI after a short period of time. It was concluded that employees left the job because they didn't realize how long the average workday was going to be when they were hired.RBI can begin to solve this problem by emphasizing:
A) external recruiting.
B) affirmative action.
C) better training and development.
D) the use of realistic job previews.
E) more rigorous employment tests.
Q2) A personality test would assess all of the following characteristics of a job applicant except:
A) emotional stability.
B) creativity.
C) reasoning abilities.
D) openness to learning.
E) agreeableness.
Q3) __________ occurs when hiring and promotion decisions are made based on criteria that are not job-relevant.
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Chapter 13: Managing Diversity
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Sample Questions
Q1) Genuine efforts to accept and manage diverse people in North America are a phenomenon that emerged in the 1800s.
A)True
B)False
Q2) Which of the following refers to a higher-ranking organizational member who is committed to providing upward mobility and support to a protégé's professional career?
A) Sponsor
B) Mentor
C) Expatriate
D) Delegate
E) Advisor
Q3) __________ is defined as all the ways in which people differ.
A) Multiplicity
B) Diversity
C) Seniority
D) Culture
E) Variation
Q4) __________ is the belief that groups and subcultures are inherently equal.
Q5) Briefly explain the concept of a glass ceiling.
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Chapter 14: Understanding Invidividual Behavior
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Q1) Social awareness is the ability to connect to others, build positive relationships, respond to the emotions of others, and influence others.
A)True
B)False
Q2) If Ben is tense, depressed, moody, and insecure, he would tend to be rated as low on which of the Big Five personality factors?
A) Agreeableness
B) Conscientiousness
C) Emotional stability
D) Openness to experience
E) Extroversion
Q3) Managers can play a large role in establishing ways that the organization can help employees cope with stress. In a short essay, describe some ways that managers and organizations can help alleviate stress in the workplace, and what initiatives some companies are taking that contribute to a healthy, productive work environment.
Q4) __________ is the belief that power and status differences should exist within the organization.
Q5) List two important approaches to enhancing self-awareness.
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Chapter 15: Leadership
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Q1) Which of the following would a job-centered leader be least concerned with?
A) Goal achievement
B) Achieving production efficiency
C) Keeping costs low
D) Making a profit
E) Meeting schedules
Q2) Two types of soft power include __________ and __________ power.
A) legitimate; reward
B) reward; referent
C) expert; referent
D) legitimate; expert
E) reward; coercive
Q3) The leader who stimulates high standards and champions a dedication to the organization's vision is a Level _____ leader.
A) 1
B) 2
C) 3
D) 4
E) 5
Q4) List the six interpersonal influence tactics for leaders.
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Chapter 16: Motivating Employees
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Q1) __________ theory focuses on individuals' perceptions of how fairly they are treated compared with others.
A) Expectancy
B) Reinforcement
C) Hierarchy of needs
D) Equity
E) ERG
Q2) A content theory that proposes that people are motivated by five categories of needs-physiological, safety, belongingness, esteem, and self-actualization-that exist in a hierarchical order is called the __________.
Q3) Differentiate between intrinsic and extrinsic rewards.
Q4) Valence is the value of outcomes, or attraction to outcomes, for the individual.
A)True
B)False
Q5) __________theories emphasize the needs that motivate people.
Q6) The job characteristic of autonomy influences the worker's experiencing meaningfulness of work.
A)True
B)False
Page 18
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Chapter 17: Managing Communication
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Q1) Research indicates that within _____ hours, most people retain only _____ percent of what they've heard.
A) 24; 10
B) 24; 25
C) 48; 20
D) 48; 25
E) 72; 10
Q2) The sender __________ the idea by selecting symbols with which to compose a message and selecting a communication channel; the receiver __________ the symbols to interpret the meaning of the message.
Q3) Which of the following is not a formal communication channel?
A) Gossip
B) Horizontal communication
C) Downward communication
D) Upward communication
E) All of these are formal communication channels.
Q4) What is downward communication, and what are five topics generally included with downward communication?
Q5) Briefly describe the communication process.
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Chapter 18: Leading Teams
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Q1) In order for a team to be successful, it must be structured so that members are fulfilling necessary roles. Write a short essay in which you describe key roles within a team, and choose which role best fits your own managerial style.
Q2) One of Malcolm's coworkers, Danny Newcomber, reduces tension in the group by telling jokes and diffusing emotions. Additionally, Danny can be counted on to energize the team by stimulating the members into action when their interest drops. Which of the following roles is Danny demonstrating?
A) The task specialist and socioemotional roles
B) The task specialist role only
C) The socioemotional role only
D) The leadership role
E) The participator role
Q3) The __________ stage of team development is a period of orientation and getting acquainted.
Q4) __________ occurs when people are so committed to a cohesive team that they are reluctant to express contrary opinions.
Q5) List the five stages of team development.
Q6) List the five behaviors associated with the task specialist role.
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Chapter 19: Managing Quality and Performance
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Q1) The feedback control model is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors.
A)True
B)False
Q2) Under hierarchical control, employees are actively engaged and committed to their work.
A)True
B)False
Q3) Buildings and equipment that are long term in nature would be included under __________ on an organization's __________.
A) fixed assets; balance sheet
B) current assets; balance sheet
C) long-term debt; income statement
D) owners' equity; income statement
E) owners' equity; balance sheet
Q4) __________involves assigning dedicated personnel within a particular functional area of the business.
Q5) List the four steps in the feedback control model.
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