Fundamentals of Management Practice Exam
Course Introduction
Fundamentals of Management introduces students to the essential principles, concepts, and functions of management within organizations. The course covers topics such as planning, organizing, leading, and controlling, as well as decision-making, motivation, organizational structure, and effective communication. By exploring both classical and contemporary management theories, students develop a foundational understanding of how managers contribute to organizational effectiveness and adapt to dynamic business environments. The course also incorporates case studies and practical examples to help students apply management concepts to real-world situations.
Recommended Textbook Management 1st Edition by Luis
R. Gomez Mejia
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Page 2
Chapter 1: Management and Its Evolution
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Sample Questions
Q1) When an organization recognizes that they can reach the same goals through a number of different routes, they are demonstrating
A) synergy.
B) a closed system.
C) a subsystem.
D) equifinality.
Answer: D
Q2) Which activity would reflect a manager engaging in the organizing function?
A) Setting future objectives
B) Communicating organizational goals
C) Collecting quality feedback
D) Delegating tasks
Answer: D
Q3) When workers avoid doing their best work, it is referred to as A) soldiering.
B) empowering.
C) synergy.
D) equifinality.
Answer: A
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Page 3
Chapter 2: The Culture of Management
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Sample Questions
Q1) What are the four major changes in the world output and world trade picture that have occurred over the last few decades?
Answer: Four major changes in the world output and world trade picture occurred during the last few decades.First, the United States no longer dominates the world economy.Second, large U.S.multinationals no longer dominate international business.Third, the centrally planned communist economies that made up roughly half the world suddenly became accessible to Western businesses during the late 1980s.Finally, the global economy has become more knowledge-intensive and national barriers to labor markets are falling.This means that a growing number of firms consider the entire world their labor market, and companies now hire talent wherever it may be found.
Q2) When choosing which foreign country to enter, a country will be less appealing when
A) the size of the domestic market is large.
B) the purchasing power of consumers is projected to grow.
C) long-term profit potential is low.
D) political risk is high.
Answer: D
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Page 4
Chapter 3: Managing Social Responsibility and Ethics
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Sample Questions
Q1) A code of ethics in an organization
A) guarantees employees will act in an ethical manner.
B) describes what is legal and illegal.
C) eliminates ethical dilemmas.
D) can create consensus regarding ethical principles.
Answer: D
Q2) An example of a supervisor misusing discipline occurs when
A) using rumors as a basis to apply discipline to a targeted employee without giving the employee an opportunity to defend his or her conduct.
B) spending performance appraisal time focusing on areas of improvement.
C) terminating an employee for stealing a computer.
D) investigating plausible complaints of sexual harassment.
Answer: A
Q3) The justice approach is more flexible than other ethical approaches because it recognizes that standards of fairness vary depending on the individuals involved in the decision.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Managing Organizational Culture and Change
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Sample Questions
Q1) Studies have indicated that organizational culture can be an even more important determinant of worker commitment and loyalty than pay.
A)True
B)False
Q2) Culture can be reinforced and maintained by
A) being deliberately imposed by management.
B) only conscious processes.
C) cultural symbols, but not rituals.
D) rituals, but not cultural symbols.
Q3) The most obvious aspect of an organization's culture is
A) espoused values.
B) visible culture.
C) perceived values.
D) core values.
Q4) Southwest's culture of "be happy, enjoy your work, and make customers smile" was reinforced by
A) Herb Kelleher's leadership.
B) stories of how Southwest was founded.
C) language and acronyms used throughout the airline industry.
D) all of the above
Page 6
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Chapter 5: Managing the Planning Process
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Q1) The process that helps managers set objectives for the future and map out the activities and means that will make it possible to achieve those objectives is
A) goal setting.
B) objective setting.
C) implementing.
D) planning.
Q2) How can the political dynamics of change by managed?
Q3) When planning is conducted by specialists without the participation of other managers, there may be a tendency
A) to generate volumes of paperwork.
B) to generate formulas that are not relevant in turbulent times
C) to misunderstand the logic.
D) all of the above
Q4) How can managers maintain control during the change transition?
Q5) Who is normally responsible for developing strategic action plans?
A) Mid-level managers
B) First-line managers
C) Top executives
D) Subordinates
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Chapter 6: Decision Making
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Sample Questions
Q1) Which of the following is not considered a benefit of group decision making?
A) Greater pool of knowledge
B) Increased acceptance
C) Increased logrolling
D) Different perspectives on problems
Q2) Why do managers delegate?
Q3) Which decision-making technique tabulates and summarizes anonymous questionnaires then returns them to group members again for solutions until a consensus is reached?
A) The nominal group technique
B) Brainstorming
C) Storyboarding
D) The Delphi technique
Q4) Which decision-making technique is most useful when the group members are geographically dispersed?
A) The nominal group technique
B) Brainstorming
C) Storyboarding
D) The Delphi technique
Q5) List the benefits and problems of group decision making.
Page 8
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Chapter 7: Strategic Management
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Sample Questions
Q1) The erosion of CD sales and the increase in music downloads reflects which of Porter's five forces in the industry?
A) Suppliers
B) Threat of new entrants
C) Threat of substitutes
D) Intensity of rivalry
Q2) The changes that Mattel made in Barbie after the 1960s were in response to which component of the external environment?
A) Demographic trends
B) Political/legal forces
C) Economic trends
D) Socio-cultural trends
Q3) The McKinsey-General Electric Portfolio Analysis Matrix and the Boston Consulting Group's Growth-Share Matrix are techniques of
A) portfolio analysis.
B) five-forces analysis.
C) business-level strategy.
D) value-chain analysis.
Q4) What are the components of the strategic management process?
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Chapter 8: Entrepreneurship and Innovation
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Q1) Describe Gary Hamel's five steps in the wheel of innovation.
Q2) What are the most common reasons for entrepreneurial business failure?
Q3) Which of the following statements is true about Michael Dell?
A) Dell realized he could build a company on the same business model of other computer firms.
B) Michael Dell became one of the youngest CEOs of a major U.S. corporation.
C) Dell avoided the use of the Internet as a distribution channel.
D) all of the above
Q4) The launch of CNBC by the National Broadcasting Company (NBC)is an example of A) franchising.
B) spin-offs.
C) corporate entrepreneurship.
D) all of the above
Q5) Entrepreneurship has provided an alternative career path for many minorities in the United States.
A)True
B)False
Q6) List some entrepreneurial skills related to success.
Q7) What are the advantages and disadvantages of forming a partnership?
Q8) Explain equity financing for entrepreneurs.
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Chapter 9: Managing the Structure and Design of Organizations
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Q1) What are the three basic approaches to departmentalization?
Q2) Standardized products using an assembly line with a heavy reliance on automated machines is
A) mass production technology.
B) continuous process technology.
C) small-batch technology.
D) digital technology.
Q3) General Motors was one of the companies that pioneered the divisional structure, creating divisions based on its different automobile brands.
A)True
B)False
Q4) Fayol's concept that a subordinate should have only one direct supervisor is referred to as
A) authority.
B) accountability.
C) unity of command.
D) organization structure.
Q5) What is authority? How is it different from accountability?
Q6) What are the three basic organization designs? Describe their features.
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Chapter 10: Human Resource Management
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Sample Questions
Q1) A fashion designer that creates male apparel may hire male models for the fashion show and refuse to hire females as a result of
A) affirmative action.
B) adverse impact.
C) a BFOQ.
D) seniority.
Q2) Union membership in the United States
A) has been declining to a low of approximately 10 percent in 2011.
B) has been increasing to a high of approximately 35 percent in 2011.
C) has been steadily increasing since 1945.
D) is not influential in any industries today.
Q3) The law considered to be the most important addressing discrimination is
A) the Occupational and Safety Act.
B) the Fair Labor Standards Act.
C) Title VII of the Civil Rights Act.
D) The Age Discrimination in Employment Act.
Q4) Discuss the importance of strategic compensation.
Q5) How has workforce diversity impacted the human resource department?
Q6) What is the role of the human resource department in organizations?
Q7) Describe the three components of the staffing process.
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Chapter 11: Managing Employee Diversity
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Sample Questions
Q1) ________ passed the toughest immigration law in the United States in 2010.
A) California
B) Arizona
C) Texas
D) Florida
Q2) The perception that Asian Americans are already successful paradoxically makes some managers insensitive to their needs and problems.
A)True
B)False
Q3) It is difficult for women to move beyond a certain level in the hierarchy due to
A) the glass ceiling.
B) lack of mentoring.
C) the mommy track.
D) all of the above
Q4) The term invisible minority is used to describe
A) homosexuals.
B) people with disabilities.
C) Hispanics.
D) Asian Americans.
Q5) What are the potential problems with increasing employee diversity?
Page 13
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Chapter 12: Leadership in Management
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Sample Questions
Q1) Describe the five power bases identified by French and Raven.
Q2) The view of leadership that most top executives, no matter how good they are, are limited in what they can do to solve problems, so that leadership responsibilities are spread throughout the firm, is known as
A) self-leadership.
B) transactional leadership.
C) leadership substitutes.
D) postheoric leadership.
Q3) Often when people who are promoted on the basis of technical ability fail in their new jobs, it is because they lack emotional competencies that are crucial at the higher level.
A)True
B)False
Q4) What are hygienes and motivators as described by Herzberg's two-factor theory. Provide examples of each.
Q5) What are the three needs identified by David McClelland?
Q6) Describe the four reinforcement techniques. Provide an example of each.
Q7) What is the liability of a charismatic leader?
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Q8) According to House's path-goal theory, what are the four leadership behaviors?
Chapter 13: Managing Teams
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Q1) An important role for team leaders in the storming stage of development is
A) establishing ground rules.
B) identifying the purpose of the team.
C) defusing the negative aspects of conflict to achieve harmony and cohesion.
D) capturing the synergies between individuals with complementary skills.
Q2) Which auto manufacturer used self-managed teams to achieve one of the highest levels of customer satisfaction of any U.S. firm in the industry?
A) Chevrolet
B) Ford
C) Toyota
D) Saturn
Q3) What is a nonconforming high performer?
Q4) The win-win negotiating style requires the parties to convert a potential conflict into a problem-solving process in which each party seeks to identify common goals.
A)True
B)False
Q5) Discuss the task- facilitating and relationship-building roles.
Q6) What are norms?
Q7) Describe the stages of team development.
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Chapter 14: Managing Communication
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Sample Questions
Q1) If Sam's e-mail message ends with the emoticon :-| , he is communicating
A) sarcasm.
B) happiness.
C) indifference.
D) sadness.
Q2) Informal communication is sometimes referred to as
A) MBWA.
B) feedback.
C) the grapevine.
D) horizontal communication.
Q3) The ________ meeting addresses strategic issues and involves executives who formulate long-range goals.
A) team
B) corporate or business-unit
C) staff
D) task force
Q4) When writing memos, it is best to send the memo to as many people who might be interested in the content.
A)True
B)False
Page 16
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Chapter 15: Operation and Information System Management
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Q1) Which of the following is not a statistical process control tool?
A) Pareto analysis
B) Check sheets
C) Gantt charts
D) Cause-and-effect diagrams
Q2) Discuss three tools to analyze the steps to determine an efficient sequence and to monitor the process.
Q3) Contrast a product, process, and fixed-position layout.
Q4) Quality today
A) has become less visible.
B) is often "baked in" to the management process.
C) continues to be critically important to the survival and competitiveness of business.
D) all of the above
Q5) Creating capacity that exceeds the amount of products that can be sold is inefficient because unused capacity wastes the firm's resources.
A)True
B)False
Q6) What is operations management and what are the three stages of operation?
Page 17
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