Fundamentals of Management Test Bank
Course Introduction
Fundamentals of Management provides an essential introduction to the key principles and practices involved in effectively managing organizations. The course explores core management functions, including planning, organizing, leading, and controlling, alongside topics such as decision-making, motivation, communication, and team dynamics. Students will gain insights into organizational culture, the roles and responsibilities of managers, and the impact of external environments on managerial decision-making. Through case studies and real-world examples, the course equips learners with foundational knowledge and practical skills necessary for effective leadership and problem-solving in contemporary business settings.
Recommended Textbook Management 3rd Edition by Michael
A. Hitt
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15 Chapters
1496 Verified Questions
1496 Flashcards
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Chapter 1: The Nature of Management
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96 Verified Questions
96 Flashcards
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Sample Questions
Q1) According to Rosemary Stewart's dimensions of managerial jobs,within which of the following job dimensions is a manager working when he/she adheres to deadlines and follows established procedures?
A) choices
B) constraints
C) demands
D) techniques
Answer: C
Q2) Bianca is the marketing manager of a company that develops software.She interacts with key clients to learn about their reactions to new product ideas.What managerial role is Bianca playing here?
A) She is playing the role of an entrepreneur.
B) She is playing the role of a leader.
C) She is playing the role of a liaison.
D) She is playing the role of a figurehead.
Answer: C
Q3) Evaluating employee performance on completed tasks is not a part of controlling.
A)True
B)False
Answer: False
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Chapter 2: Social Responsibility and Managerial Ethics
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) A(n)________ is an individual or group that has an interest in and is affected by the actions of an organization.
A) social consensus
B) cohort
C) stakeholder
D) accommodator
Answer: C
Q2) Within the context of the efficiency perspective of social responsibility,externalities involve ________.
A) random consequences
B) marketplace interactions
C) unintended consequences
D) indirect acts of social responsibility
Answer: C
Q3) Moral intensity refers to the impact of ethics and morality on a group of people.
A)True
B)False
Answer: False
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4
Chapter 3: International Management and Globalization
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94 Flashcards
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Sample Questions
Q1) ________ is the rapid development of trust in teams with positive and reciprocal communications about the team's task activities.
A) Reciprocal trust
B) Swift trust
C) Improved trust
D) Improved reliability
Answer: B
Q2) For smaller firms and for firms entering into foreign markets,________ is the most common way to enter an international market.
A) licensing arrangements
B) exporting goods
C) creating strategic alliances
D) cross-border acquisition
Answer: B
Q3) In low-context cultures,the situation itself may or may not affect what is considered to be appropriate behavior.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Strategic Management
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) In the process of strategic management,the ________ strategy determines what business or businesses the firm wishes to operate.
A) functional
B) business-level
C) corporate-level
D) unit-level
Q2) Which of the following would lead to lower profits for an industry?
A) low entry barriers
B) many suppliers
C) few substitutes
D) quality-based competition
Q3) What happens during a SWOT analysis?
Q4) Managers pursuing a ________ seek to make their product or service different from those of competitors on dimensions valued by customers.
A) global strategy
B) differentiation strategy
C) cost leadership strategy
D) multipoint competition strategy
Q5) What is a value chain?
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Chapter 5: Planning
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92 Flashcards
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Sample Questions
Q1) Even goals that are easily achieved have a large effect on the overall results at the organizational,unit,subordinate,or personal level.
A)True
B)False
Q2) Strategic plans translate tactical plans into specific goals and actions for small units of the organization and focus on the near term.
A)True
B)False
Q3) Developing tactical plans is typically the responsibility of ________.
A) functional-level managers
B) business-level managers
C) operational-level managers
D) corporate-level managers
Q4) ________ serve as the future "end states" targeted by its managers.
A) Tactics
B) Strategies
C) Objectives
D) Plans
Q5) What tactical plans are evident in this scenario?
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Chapter 6: Organizational Structure and Design
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Which of the following is the best example of cognitive differentiation?
A) At a civil engineering firm, some engineers specialize in construction engineering, while others specialize in environmental engineering.
B) An auto manufacturer produces a luxury automobile in order to enhance the image of its other vehicles.
C) At a shoe company, the product development department relies on marketing data to generate ideas for promising new products.
D) Accountants think about the organization's overall performance in terms of financial results, whereas marketers view performance in terms of customer satisfaction.
Q2) ________ exists when two or more groups depend on one another for inputs.
A) Formalized interdependence
B) Pooled interdependence
C) Reciprocal interdependence
D) Sequential interdependence
Q3) Explain the concepts of unity of command and span of control.
Q4) Describe the types of interdependence that exist among organizational units.
Q5) Describe the concept of "differentiation" in an organization.
Q6) What is an organizational chart?
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Chapter 7: Managing Diverse Human Resources
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103 Verified Questions
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Sample Questions
Q1) Immediately upon being promoted to store manager in a bookstore,Rachel receives details of her new compensation package: her salary is tied to store profit,and she must customize her benefit plan.This manager's pay structure is a form of ________,and her benefit plan is ________.
A) at-risk compensation; traditional
B) at-risk compensation; cafeteria-style
C) variable compensation; traditional
D) piece-rate compensation; cafeteria-style
Q2) Compare structured and unstructured interviews and explain which type generates more valid results.
Q3) Structured interviews tend to have lower levels of validity than unstructured interviews.
A)True
B)False
Q4) Which of the following is true for behaviorally anchored rating scales (BARS)?
A) BARS are very similar in methodology to 360-degree feedback.
B) BARS and graphic rating scales have nothing in common.
C) BARS rate employee characteristics using a quantitative scale.
D) BARS rank employees in terms of abstract qualities rather than specific behaviors.
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Chapter 8: Leadership
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Which of the following theories/models has its primary emphasis on followers' readiness to engage in learning new tasks?
A) Fiedler's leadership contingency model
B) Leader-member exchange (LMX) theory
C) Path-goal theory of leadership
D) Hersey and Blanchard's situational leadership model
Q2) Compare and contrast leading and managing.
Q3) Interim Money,Inc.,an independent organization,sells ATMs,as well as owns,operates,and manages ATMs for independent financial institutions in the United States.The organization follows a vertical organizational structure,and managers at different levels are given different levels of authority to control employees.The managers at Interim money obtain ________ power due to the vertical structure and operations.
A) expert
B) referent
C) legitimate
D) information
Q4) Briefly explain the two types of personal powers.
Q5) Briefly explain the path-goal theory of leadership.
Q6) What is organizational leadership? How can leadership be effective?
Page 10
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Chapter 9: Motivation
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) ________ is a process theory that,in part,describes how to increase an individual's sense of self-efficacy,thus increasing motivation.
A) Equity theory
B) Vroom's expectancy theory
C) Social cognitive theory
D) Herzberg's two-factor theory
Q2) The category of motivational forces that relates to both internal and external forces focuses on the characteristics of a person's job or task.
A)True
B)False
Q3) Characteristics of a work situation is considered an ________.
A) external or pull force that focuses on what happens outside the work setting
B) external or pull force that focuses on what happens to the individual
C) internal or push force that focuses on what the employee brings to the work setting
D) internal or push force that focuses on what the person does in the work setting
Q4) What are "push" forces of motivation? What are "pull" forces?
Q5) Discuss Alderfer's ERG theory.
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Chapter 10: Groups and Teams
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) When dealing with group conflict,a manager should try to increase the ratio of relationship to substantive conflict.
A)True
B)False
Q2) A command group is a type of informal group.
A)True
B)False
Q3) The chairperson of a budget committee at N&S falls ill and yields his position to a new hire who had served many years on the budget committee in her previous organization.The new chairperson's first act is to e-mail a new set of committee procedures to other members.In this case,the committee's norms are about to be affected most clearly by ________ and ________.
A) early behaviors; critical events
B) early behaviors; explicitly stated standards
C) explicitly stated standards; imported behaviors
D) imported behaviors; early behaviors
Q4) Refer to the scenario above.Will role ambiguity or role conflict likely emerge within this group?
Q5) How might norms be developed within a group?
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Chapter 11: Communication and Negotiation
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Sample Questions
Q1) Briefly describe the basic model of communication.
Q2) A manager is considering three staff members as possible candidates for a new position.One morning she asks each of them,in private,whether they might be interested in the new position.She also asks them not to discuss the new position with anyone.At a function after work,she is approached by several staff members.They ask her about the new position they have heard about "on the grapevine." What important feature of informal communication channels does this scenario illustrate?
A) They only carry work-related information.
B) They often transfer information rapidly.
C) They often transfer inaccurate information.
D) They tend to follow the organizational hierarchy.
Q3) Networking is a process of developing regular patterns of communication with particular individuals or groups to send and receive information.
A)True
B)False
Q4) What is a communication network? What is its significance in the organizational scheme of things?
Q5) Give a general description of the negotiation process.
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Chapter 12: Individual and Group Decision Making
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Sample Questions
Q1) Which of the following statements is true about dialectical inquiry?
A) It is like the devil's advocate approach except that more than one opposing view is presented.
B) It forces group members to "think outside the box" and look at new ways to analyze the problem.
C) Each group involved in making a decision is assigned the responsibility of representing the opinions of its constituents.
D) It is a frequently used mechanism to provide a maximum number of ideas in a short period of time.
Q2) ________ is a symptom of groupthink where group members often reassure themselves about obvious dangers,become overly optimistic,and are willing to take extraordinary risks.
A) Self-censorship
B) Illusion of invulnerability
C) Illusion of morality
D) Illusion of unanimity
Q3) Technology is helpful for routine but complex decisions.
A)True
B)False
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Page 14
Chapter 13: Operations Management
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Could continuous process improvement be used in this scenario?
Q2) Total quality management (TQM)encompasses a commitment from employees at all levels to continually strive to make improvements and satisfy customers.
A)True
B)False
Q3) ________ occur when a firm gets more experienced at making a product and develops greater insight about how to do the task more efficiently.
A) Learning effects
B) Economies of scale
C) Work standards
D) Capacity expansions
Q4) Lotus Cars uses a manufacturing process in which individual steps in the assembly of the product are carried out by workers or machines as the product is moved along.Which manufacturing process is Lotus Cars using?
A) continuous flow production
B) assembly-line processes
C) job shops
D) small batch processes
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Chapter 14: Control
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Sample Questions
Q1) Which of the following is an approach to determine the focus of control?
A) balanced scorecard
B) break-even point
C) leverage
D) return on equity
Q2) ________ represents a firm's ability to meet long-term financial obligations.
A) Leverage (total debt/total assets)
B) Liquidity (current assets/current liabilities)
C) Inventory turnover (annual sales/inventory)
D) Return on equity (net profit before taxes/total assets invested
Q3) When managers predict a turbulent external environment,they should establish centralized strategic control systems to anchor the firm.
A)True
B)False
Q4) Which of the following defines a liquidity ratio?
A) revenue in relation to investment
B) current assets in relation to current liabilities
C) total debt in relation to total assets
D) amount of sales in relation to cost to produce
Q5) How is control related to flexibility in an organization?
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Chapter 15: Organizational Change and Development
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Sample Questions
Q1) Explain with examples how a change in staff can be brought in effectively.
Q2) Organizational change efforts focus on six areas.Are any of them present in this scenario?
Q3) The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in the last 6 months.The manager believes this precipitous decline may be due to the extensive marketing campaign a competitor is running to promote its "good-to-go" breakfast menu.Which of the following steps would be most likely to regain the lost customers?
A) retrain the members of the breakfast crew
B) introduce exotic items on the breakfast menu
C) match the competitors ad campaign but with lower prices
D) survey staff and customers on what changes need to be implemented
Q4) Change is typically stimulated when something is anticipated to change or actually changes in the environment.
A)True
B)False
Q5) Does proactive recognition or reactive recognition occur in this scenario?
Q6) Why is Dan Wilson resisting this change?
Q7) Why might people resist seeing the initial need for change?
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