Fundamentals of Management
Chapter Exam Questions
Course Introduction
Fundamentals of Management introduces students to the core principles and practices of effective management within organizations. The course explores the essential functions of management, including planning, organizing, leading, and controlling, while examining concepts such as decision-making, motivation, team dynamics, and organizational structure. Through case studies and real-world examples, students develop critical thinking and problem-solving skills required to navigate managerial challenges in various organizational settings. The course also emphasizes the evolving role of managers in todays dynamic business environment, covering topics such as ethics, globalization, and innovation.
Recommended Textbook
Understanding Management 10th Edition by
Richard L. Daft
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Chapter 1: The World of Innovative Management
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Q1) Used widely by Indian companies,_______ refers to an innovation mind-set that strives to meet customers' needs quickly and inexpensively.
A)benchmarking
B)organizational development
C)kaizen
D)jugaad
E)bureaucracy
Answer: D
Q2) ______ refers to the sequence of suppliers and purchasers,covering all stages of processing from obtaining raw materials to distributing finished goods to consumers. Answer: Supply chain management
Q3) A key finding in the Hawthorne studies was which of these?
A)Stronger lighting increased productivity.
B)More money resulted in increased productivity.
C)Productivity increased with autocratic leadership.
D)Higher temperatures reduced productivity.
E)Human relations increased productivity.
Answer: E
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Chapter 2: The Environment and Corporate Culture
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Q1) Jefferson and Squire is an advertising firm that is viewed as having a fast-paced and posh corporate culture.The company uses bold coloring with expensive accents in all office décor.This exemplifies which level of corporate culture?
A)Visible artifacts
B)Underlying assumptions
C)Expressed values
D)Heroes
E)Ceremonies
Answer: A
Q2) _____ plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment,challenging new opportunities,or organizational crises.
A)Mission statement
B)Vision statement
C)Competitive intelligence
D)Employee training
E)Corporate culture
Answer: E
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Chapter 3: Managing in a Global Environment
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Sample Questions
Q1) List three examples of a country's infrastructure.
Answer: Transportation facilities such as railroads and airports;energy-producing facilities such as utilities and power plants;and communication facilities such as telephone lines and radio stations.
Q2) The extent to which trade and investments,information,social and cultural ideas,and political cooperation flow between countries is called:
A)standardization.
B)industrialization.
C)globalization.
D)internationalism.
E)linguistic pluralism.
Answer: C
Q3) A country that places emphasis on fairness and values kindness would be described by the GLOBE Project as high in _____.
Answer: humane orientation
Q4) _____ is the criterion traditionally used to classify countries as developed or developing.
Answer: Per capita income
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Chapter 4: Managing Ethics and Social Responsibility
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Q1) The thinking underlying the domain of ____ is the closest to the justice approach.
A)social responsibility
B)free choice
C)law
D)discretionary responsibility
E)ethics
Q2) Social responsibility is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization.
A)True
B)False
Q3) If something is ethical,it must not be illegal.
A)True
B)False
Q4) The _____ approach to economic responsibility means that economic gain is the only social responsibility and can lead companies into trouble.
Q5) Most managers operate at the _____ level.
Q6) The _____ is an individual responsible for making an ethical choice.
Q7) List three examples of primary stakeholders.
Page 6
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Chapter 5: Planning and Goal Setting
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Q1) Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies.
A)True
B)False
Q2) Double Click,Inc.has a number of strategic business units.Their hand-held computer unit has a large market share in this rapidly growing industry.Their hand-held computer business would be classified as:
A)a dog.
B)a star.
C)a question mark.
D)a cash cow.
E)stuck in the middle.
Q3) Research has shown that strategic thinking and planning positively affect a firm's performance and financial success.
A)True
B)False
Q4) In the BCG matrix,the dog has _____ market share and _____ business growth rate.
Q5) Compare the four levels of goals and plans.
Q6) List the five characteristics of effective goals.
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Chapter 6: Managerial Decision Making
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Q1) Which style is used by people who prefer simple,clear-cut solutions to problems?
A)Behavioral
B)Conceptual
C)Directive
D)Analytical
E)Classical
Q2) Managers will frequently look for new information that contradicts their instincts or original point of view.
A)True
B)False
Q3) Briefly describe the assumptions underlying the classical model of decision making.
Q4) _____ decisions are made in response to situations that are unique,are poorly defined and largely unstructured,and have important consequences for the organization.
Q5) List four of the eight questions Kepner and Tregoe recommend that managers ask when diagnosing and analyzing causes.
Q6) _____ decision making involves a commitment to making more informed and intelligent decisions based on the best available facts and evidence.
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Chapter 7: Designing Organization Structure
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Q1) Flash Card Inc.recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes.The result of this was a stronger emphasis on horizontal coordination.This level of change is referred to as:
A)reorganization.
B)reengineering.
C)e-engineering.
D)strategic planning.
E)corporate structuring.
Q2) _____ is the process managers use to transfer authority and responsibility to positions below them in the hierarchy.
Q3) _____ production involves the production of goods in batches of one or a few products designed to customer specifications.
Q4) Which of the following factors is NOT associated with larger span of control?
A)Work performed by subordinates is stable and routine.
B)Subordinates perform similar work tasks.
C)Subordinates are located at various different locations.
D)Subordinates are highly trained and need little direction.
E)Rules and procedures defining task activities are available.
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Chapter 8: Managing Change and Innovation
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Q1) _____ is the generation of novel ideas that may meet perceived needs or respond to opportunities for the organization.
Q2) Ashley has average technical skills but her real strengths lay in visualizing the benefits of other's ideas and in finding financial and political support for these ideas.Ashley is an excellent example of a(n): A)critic.
B)sponsor.
C)idea champion.
D)inventor.
E)bureaucrat.
Q3) Jurgen is one of several middle managers sent to a training course on leadership skills.Through this effort,the organization is attempting:
A)organization change
B)organization development
C)people change
D)culture change
E)artifact change
Q4) Describe the tactics for overcoming resistance to change.
Q5) Describe the five characteristics of creative people and organizations.
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Chapter 9: Managing Human Resources and Diversity
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Q1) Define discrimination and affirmative action.
Q2) Artie's Pretzels is a small but well-known company that receives thousands of job applications every year,though it only fills about 50 positions annually.Company managers have learned that Artie's human resource practices are one of the driving factors that attract potential employees.Artie's Pretzels is an example of a(n):
A)contingency employer.
B)employer of options.
C)employer of choice.
D)employer of necessity.
E)telecommuter-friendly employer.
Q3) A(n)_____ is an in-house training and education facility that offers broad-based learning opportunities for employees.
Q4) _____ is the belief that groups and subcultures are inherently equal.
Q5) List the most frequently used selection devices.
Q6) Monetary payments and nonmonetary goods or benefits used to reward employees are known as _____.
Q7) Explain the appraisal process known as "360-degree feedback."
Q8) _____ are people who work for an organization,but not on a permanent or full-time basis.
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Chapter 10: Understanding Individual Behavior
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Q1) An internal attribution says something about the situation has caused the person's behavior.
A)True
B)False
Q2) People with an external locus of control are:
A)more achievement oriented.
B)better able to handle complex information and problem solving.
C)more independent.
D)easier to motivate.
E)easier to manage.
Q3) The tendency to place the primary responsibility for one's success or failure either within oneself (internally)or on outside forces (externally)is called the ______.
Q4) Organizations that want to challenge their employees and stay competitive can easily be stress-free.
A)True
B)False
Q5) The ______ occurs when the perceiver develops an overall impression of a person or situation based on one attribute,either favorable or unfavorable.
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Chapter 11: Leadership
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Q1) A(n)_____ for leadership makes the leadership style unnecessary or redundant.
Q2) A transformational leader is a leader distinguished by a special ability to bring about innovation and change.
A)True
B)False
Q3) A situational variable that counteracts a leadership style is known as a(n)_____.
Q4) A model of leadership that describes the relationship between leadership styles and specific organizational situations is called a(n)_____ approach.
Q5) The pragmatic survivor is a follower who participates actively in the organization but does not use critical thinking skills.
A)True
B)False
Q6) Which of the following is NOT one of Schmidt's five leadership precepts?
A)Get to know your employees
B)Create new ways to reward high performers
C)Ensure the integrity of the hierarchy
D)Let employees own the problems
E)Have employees' performance reviewed by respected others
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Chapter 12: Motivating Employees
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Q1) Daisy tried to apply the job characteristics model to her workforce,but it only worked for some of her employees.Which of the following may be a reason why it did not work for everyone?
A)Some of her employees are lazy.
B)Some of her employees are low in growth-need strength.
C)Some of her employees have a low need for power.
D)All of her employees have high growth-needs.
E)Some of her employees have low affiliation needs.
Q2) Job enlargement is a job design that incorporates achievement,recognition,and other high-level motivators into the work.
A)True
B)False
Q3) Compare the five groups of needs in Maslow's theory with the three groups of needs in Alderfer's ERG theory.
Q4) Explain employee growth-need strength and its relationship to the job characteristics model.
Q5) In David McClelland's acquired needs theory,what are the three acquired needs most commonly discussed and which is(are)not dependent on relationships with other people?
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Chapter 13: Managing Communication
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Q1) _____ and _____ are potential sources for communication errors,because knowledge,attitudes,and background act as filters.
A)Encoding; channel
B)Encoding; noise
C)Decoding; channel
D)Decoding; encoding
E)Decoding; noise
Q2) According to the text,all of the following are ways managers can improve their writing skills,except:
A)writing lengthy explanations.
B)respecting the reader.
C)getting a second opinion.
D)knowing your point and get to it.
E)writing clearly rather than impressively.
Q3) About 75 percent of effective communication is:
A)listening.
B)telling.
C)asking questions.
D)the ability to persuade.
E)choosing the channel.
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Chapter 14: Leading Teams
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Q1) Team cohesiveness does not necessarily lead to higher team productivity.
A)True
B)False
Q2) All of these behaviors are consistent with the role of a task specialist,except:
A)seek information.
B)initiation.
C)summarize.
D)compromise.
E)energize.
Q3) _____ refers to performance and the quality and quantity of task outputs as defined by team goals.
A)Productive output
B)Satisfaction
C)Commitment
D)Capacity to adapt
E)Norms
Q4) A common dysfunction of teams is the presence of conflict.
A)True
B)False
Q5) Discuss the determinants of team cohesiveness and its consequences.
Page 16
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Chapter 15: Managing Quality and Performance
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Q1) Contingency factors that can influence the success of a TQM program in a negative way include all of the following,except:
A)tasks make high skill demands on employees.
B)management expectations are unrealistically high.
C)middle managers are dissatisfied about loss of authority.
D)workers are dissatisfied with other aspects of organizational life.
E)managers wait for big, dramatic innovations.
Q2) The initial cost of implementing the SOX reforms is relatively minor for a small business once it becomes public.
A)True
B)False
Q3) The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if performance is inadequate.
A)True
B)False
Q4) An expense budget lists forecasted and actual revenues of the organization.
A)True
B)False
Q5) Describe the difference between a balance sheet and an income statement.
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