Fundamentals of Management
Textbook Exam Questions
Course Introduction
Fundamentals of Management introduces students to the essential principles and practices that govern the effective operation of modern organizations. This course covers key managerial functions such as planning, organizing, leading, and controlling, and explores foundational concepts including decision making, organizational structure, motivation, and communication. Through real-world examples and case studies, students will gain insight into the roles and responsibilities of managers across various industries, developing valuable skills for supervising teams, setting objectives, and achieving organizational goals in a dynamic business environment.
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Essentials of Contemporary Management 7th Edition by Gareth JonesS
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Page 2
Chapter 1: The Management Process Today
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Sample Questions
Q1) A formal system of reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals is called an organizational ________.
A) culture
B) structure
C) assimilation
D) chart
Answer: B
Q2) The outcome of organizing is the creation of a strategy.
A)True
B)False
Answer: False
Q3) Which of the four principal managerial tasks can help William understand his performance in the other three tasks?
A) Planning
B) Organizing
C) Controlling
D) Leading
Answer: C
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Page 3
Chapter 2: Values, Attitudes, Emotions, and Culture: the Manager As a Person
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Sample Questions
Q1) Managers who are high on the conscientiousness continuum are organized and self-disciplined.
A)True
B)False
Answer: True
Q2) With regard to the managerial function of leading in an organization with an innovative culture, managers ________.
A) emphasize formal top-down communication
B) emphasize caution and maintenance of the status quo and set specific goals
C) are likely to lead by example, encouraging employees to take risks and experiment
D) are likely to use management by objectives
E) constantly monitor subordinates' progress toward goals, overseeing their every move
Answer: C
Q3) People who are low on extraversion still experience positive moods.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Managing Ethics and Diversity
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Sample Questions
Q1) A top manager giving a speech to employees about the importance of diversity is acting as a(n) ________.
A) figurehead
B) leader
C) liaison
D) entrepreneur
Answer: A
Q2) Describe the relationships between ethics, law, and business.
Answer: A society passes laws based on which group within that society can summon the most support for its ethical interests and beliefs. Neither law nor ethics are a fixed principle-they change over time and vary between societies. Laws change and even disappear with changing ethical beliefs. Business must operate within societies, and must obey laws or risk the consequences.
Q3) The ADA does not cover employees with AIDS from being discriminated against in the workplace.
A)True
B)False
Answer: False
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5
Chapter 4: Managing in the Global Environment
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Sample Questions
Q1) Today in most industrialized nations, as a consequence of falling birth and death rates, the absolute number of older people has increased substantially. This is an example of ________ change.
A) sociocultural
B) economic
C) political
D) demographic
Q2) A society that emphasizes "living for the moment" is said to have ________.
A) high power avoidance
B) low power avoidance
C) long-term orientation
D) short-term orientation
Q3) Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resources needed to produce goods and services. Based on this information, we can thus say that Global Blenders is a
A) supplier, not a competitor
B) competitor, not a distributor
C) distributor, not a supplier
D) supplier, not a distributor
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Chapter 5: Decision Making, Learning, Creativity, and Entrepreneurship
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Sample Questions
Q1) A group of managers meets face-to-face and generates and debates a wide variety of alternatives from which to make a decision. What is this process of decision making called?
A) Delphi technique
B) Dialectical inquiry
C) Brainstorming
D) Nominal group technique
Q2) Managers in the field of biotechnology know that new drugs have a 10 percent chance of passing advanced clinical trials and always assign probabilities to the results of clinical trials. This is an example of ________.
A) risk
B) uncertainty
C) bounded rationality
D) incomplete information
Q3) Why is group decision making considered beneficial?
A) It takes less time than individual decision-making.
B) It is easy to get two or more managers to agree to the same solution.
C) It allows more information processing and correction of errors.
D) It cannot be undermined by biases.
Q4) Identify the advantages and disadvantages of group decision making.
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Chapter 6: Planning, Strategy, and Competitive Advantage
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Sample Questions
Q1) The least complex global operation is _______.
A) a joint venture
B) exporting
C) licensing
D) franchising
Q2) The plan for implementing a new strategy requires the development of new functional strategies.
A)True
B)False
Q3) According to Porter, organizations cannot simultaneously pursue both a low-cost strategy and a differentiation strategy. Illustrate why. Show how exceptions to this "rule" can be found, and give an example to demonstrate the point.
Q4) The corporate-level plan outlines the specific methods a division, a business unit, or an organization will use to compete effectively against its rivals in an industry.
A)True
B)False
Q5) In general, business planning involves three distinct steps. Discuss these three steps. To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Designing Organizational Structure
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Q1) CoreSol Ltd. gives one manager in each of three departments (marketing, engineering, and production) the responsibility of coordinating with each other to brainstorm new product ideas. The department managers can increase coordination by establishing ________.
A) horizontal integration
B) decentralization
C) a liaison role
D) vertical integration
Q2) Define strategic alliance and network structure. Also, discuss their usage.
Q3) The extent to which a job requires the worker to use a wide range of knowledge and abilities is known as ________.
A) task identity
B) task significance
C) autonomy
D) skill variety
Q4) Explain the problems present in tall organizations.
Q5) Explain how boundaryless organizations operate.
Q6) Discuss the advantages and disadvantages of "decentralization" in organizational design.
Q7) Describe the matrix structure and the concept of the "two-boss employees."
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Chapter 8: Control, Change, and Entrepreneurship
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Sample Questions
Q1) When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) ________ budget approach.
A) capital
B) revenue
C) expense
D) profit
Q2) The manager of Triks Burgers keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of Triks Burgers is utilizing ________ control.
A) output
B) bureaucratic
C) input
D) MBO
Q3) List the common problems entrepreneurs have in managing their organizations.
Q4) Standard operating procedures are mechanisms for clan control.
A)True
B)False
Q5) How does organizational culture help managers exert control over subordinates?
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Chapter 9: Motivation
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Sample Questions
Q1) According to operant conditioning theory, people learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences.
A)True
B)False
Q2) Which of the following motivators is the most basic need in Maslow's hierarchy of needs?
A) Safety
B) Belongingness
C) Physiological
D) Esteem
Q3) The degree to which an employee keeps trying, when faced with obstacles, to accomplish a goal is referred to as ________.
A) assertiveness
B) persistence
C) conscientiousness
D) effort
Q4) Discuss the pros and cons of using punishment. If managers use punishment, how should they minimize the negative side effects?
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Chapter 10: Leaders and Leadership
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Sample Questions
Q1) The process of giving all employees the authority to make decisions and be responsible for their outcomes is known as ________.
A) coercion
B) leadership
C) empowerment
D) delegation
Q2) Compared to women, men as leaders tend to ________.
A) be more participative
B) initiate structure more
C) be harsher when punishing workers
D) be more effective leaders
Q3) Which of the following refers to the amount of legitimate, reward, and coercive power that a leader has by virtue of his or her position in an organization?
A) Leader style
B) Task structure
C) Position power
D) Leader relations
Q4) Compare and contrast "transformational leadership" with "transactional leadership."
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Page 12
Chapter 11: Effective Team Management
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Sample Questions
Q1) In terms of group performance, the idea that "the whole is more than the sum of its parts" is the fundamental point in the concept of ________.
A) division of labor
B) synergy
C) social deviance
D) norming
Q2) Daniel is the vice president of an insurance company that sells workers' compensation insurance. Recently, the company has identified problems of cost control in all of its offices. Daniel formed a team composed of the sales managers of all the four regions, along with some staff members from the company's informational technology and administration departments, to study the problem and make recommendations. This team is an example of a ________.
A) functional group
B) task force
C) virtual assembly
D) command group
Q3) Discuss how groups and teams can be utilized as performer enhancers.
Q4) All teams are groups, but not all groups are teams. Discuss the two characteristics that distinguish "teams" from "groups."
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Chapter 12: Building and Managing Human Resources
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Sample Questions
Q1) Newly hired programmers at Microsoft Corporation join small work teams so that experienced workers can serve as mentors to them while they are adjusting to their new job. This is the HRM process of ________.
A) self-managing work teams
B) selection
C) performance appraisal
D) training and development
Q2) Trait appraisals have both advantages and disadvantages for the organization. Explain what is meant by this term and discuss three disadvantages of this technique.
Q3) Lion Motors asks applicants for assembly-line positions to complete a computer exercise on their reading and mathematical abilities in order to determine if they have the mental skills necessary to do these types of jobs. Lion is utilizing the screening procedure of ________ tests.
A) personality
B) ability
C) situational
D) unstructured
Q4) What is pay level? What is its impact on an organization?
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Page 14
Chapter 13: Communication and Information Technology Management
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Sample Questions
Q1) Information that is useful to the particular circumstances facing a manager is known as ________ information.
A) timely
B) relevant C) complete
D) real-time
Q2) A decision support system gives managers a model-building capability and so provides them with the ability to manipulate information in a variety of ways.
A)True
B)False
Q3) Anything that hampers any stage of the communication process is known as ______.
A) decoding
B) encoding
C) a medium
D) noise
Q4) Product life cycle is the way demand for a product changes in a predictable pattern over time.
A)True
B)False
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Chapter 14: Operations Management: Managing Vital
Operations and
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Sample Questions
Q1) When setup times for complex production equipment is reduced, ________.
A) efficiency of the production unit goes down
B) time spent in producing something will increase
C) flexible manufacturing techniques become irrelevant
D) employees have to be paid for nonproductive time
Q2) The total amount of raw materials and component parts that an organization has on hand is known as ________.
A) buffer
B) layout
C) inventory
D) facilities
Q3) A fixed-position layout is most likely to be used in production of ________.
A) aircraft carriers
B) custom furniture
C) beer bottling
D) clothing
Q4) Describe the three basic facility layouts.
Q5) Describe the products that most customers prefer.
Page 16
Q6) Discuss customer relationship management (CRM) and its three interconnected components with an example.
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Page 17