Management and Organizational Theory
Exam Preparation Guide
Course Introduction
Management and Organizational Theory explores the fundamental principles that underpin effective management practices and organizational structures. The course examines key theories from classical, behavioral, and contemporary perspectives, focusing on how organizations are designed, how they operate, and how people within them are motivated and led. Students will analyze case studies to understand decision-making processes, organizational change, leadership styles, and the impact of culture and environment on organizations. By integrating theory with real-world applications, the course equips students with a broad understanding of how to address complex managerial challenges in todays dynamic business environment.
Recommended Textbook
Modern Management Concepts and Skills 13th Edition by Samuel C. Certo
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Page 2
Chapter 1: Introducing Modern Management
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Q1) Green Energy Inc.(GEI)is involved in obtaining energy from natural resources.As a manager at this organization,Jim must use his resources and strive to be both effective and efficient.To be an effective manager,Jim must ________.
A)focus on GEI's monetary resources more than its human resources
B)expand GEI's capital and help the organization's growth,even if that is not their goal
C)update knowledge by organizing training for all managers
D)use GEI's resources to attain the organization's goals
E)maximize the use of GEI's human and capital resources
Answer: D
Q2) The ________ is characterized by self-analysis and the exploration of different types of available jobs.
A)decline stage
B)career plateauing stage
C)maintenance stage
D)establishment stage
E)exploration stage
Answer: E
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Chapter 2: Managing
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Q1) Lynn is a manager in a company that manufactures optical fibre cables.She follows the Fayol principle of "esprit de corps" in her interactions with her team.Which of the following does this imply?
A)Lynn's team members are independent.
B)Lynn's team members are fiercely competitive.
C)Lynn's team members enjoy working in a centralized hierarchical system.
D)Lynn's team members receive orders only from her.
E)Lynn's team members are harmonious and upbeat.
Answer: E
Q2) According to Fayol,employee retention should not be given high priority as recruitment and selection costs of hiring new workers is low.
A)True
B)False
Answer: False
Q3) The Hawthorne studies concluded that lighting and temperature changes within organizations could significantly influence production.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Managers and Society
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Q1) A code of ethics is an informal statement that organizations release to help their customers obtain a basic understanding of ethics.
A)True
B)False
Answer: False
Q2) ________ is a guideline that determines behavior to be ethical if it reflects high moral values.
A)The utilitarian principle
B)The golden rule
C)The consequentialist principle
D)The virtue standard
E)The four-way test
Answer: D
Q3) All companies should take social responsibility measurements in the quality-of-life area and the economic function area.
A)True
B)False
Answer: True
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Chapter 4: Management and Diversity
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Q1) The assimilation approach to promoting cultural diversity ________.
A)relies on the maxim "Do unto others as you would have them do unto you"
B)addresses past injustices experienced by a particular group
C)pressurizes employees who do not belong to the dominant culture to conform
D)teaches employees the norms and practices of another culture
E)advocates incorporating changes into organization culture based on the cultures of employees
Q2) A diverse workforce in a company ________.
A)alienates the company's customers
B)enhances the company's credibility with customers
C)hampers innovation and decision making
D)increases operational costs and expenditure
E)reduces the market penetration ability of the company
Q3) Having to fill competing roles because of membership in two cultures causes
A)pluralism
B)role conflict
C)role overload
D)ethnocentrism
E)tokenism
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Chapter 5: Managing in the Global Arena
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Q1) Hugh is an American citizen currently living in Denmark.He works for a company that has its headquarters in France.He is a ________.
A)third-country national
B)host-country national
C)home-country national
D)dual citizen
E)repatriate
Q2) An international organization has a lower level of international involvement than a multinational organization.
A)True
B)False
Q3) France is a country where employees tend to follow whatever their managers say.They do not question the authority of their managers.Which of the following statements can be deduced from this information?
A)France has a culture that promotes masculinity.
B)France is a country where short-term orientation is prevalent.
C)France is a country with high power distance.
D)France is a society with low uncertainty avoidance.
E)French society promotes individualism.
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Page 7
Chapter 6: Management and Entrepreneurship
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Q1) ________ occurs when a firm tries to offer a new strategy altogether,unlike introducing a new product or service.
A)Public hosting
B)Sustained regeneration
C)Organized rejuvenation
D)Strategic renewal
E)Domain definition
Q2) If a food manufacturer raises chickens for commercial use,without using antibiotics,which type of opportunity is this?
A)new products or services
B)new geographical markets
C)new raw materials
D)new methods of production
E)new methods of organizing
Q3) Describe the four factors that influence the ability of individuals to identify opportunities.
Q4) What is entrepreneurial risk? In this context,explain downside loss.
Q5) Who is an entrepreneur?
Q6) What is corporate entrepreneurship?
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Chapter 7: Principles of Planning
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Q1) One of the disadvantages of management by objectives (MBO)is that ________.
A)the program is very quick and informal
B)the process has no effect on worker commitment
C)the program only emphasizes what should be done in an organization
D)the process is time consuming and requires additional paperwork
E)the process is a mere duplication of other management practices
Q2) A key element of any management by objectives (MBO)program is top management support and commitment.
A)True
B)False
Q3) Which of the following is an advantage of planning?
A)It eliminates all risks.
B)It enhances decision coordination.
C)It emphasizes immediate goals.
D)It suboptimizes the use of resources.
E)It promotes individual performance.
Q4) What is the difference between an organizational objective and a statement of organizational purpose?
Q5) What is planning? What are the advantages and potential disadvantages of planning?
9
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Chapter 8: Making Decisions
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Q1) Groupthink is a group decision-making process in which group decisions can be of higher quality than individual decisions thanks to the the group members' efforts to maintain friendly relationships among themselves.
A)True
B)False
Q2) Discuss briefly the steps in the decision-making process.
Q3) Peter often asks his colleagues for their ideas and suggestions in order to make a decision.However,he never gives credit to the individuals who give him the ideas and passes the ideas off as his own.Which of the following orientations does Peter have?
A)intuitive
B)exploitative
C)hoarding
D)marketing-oriented
E)ideal
Q4) Generally,organizational decisions are made under conditions of complete certainty of future consequences.
A)True
B)False
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Page 10
Chapter 9: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Q1) The document that is written by management and describes and explains what the purpose for which the organization exists is the ________.
A)mission statement
B)strategic plan
C)operating plan
D)annual budget
E)vision statement
Q2) In strategic planning,managers consider the organization as a total unit and ask themselves what must be done in the long term,which is usually ________.
A)three to five years into the future
B)in the coming year
C)one to two years into the future
D)five to ten years from now
E)five to twenty years from now
Q3) SWOT is an acronym for Social Welfare Operating Test.
A)True
B)False
Q4) Briefly discuss the strategic management process.
Q5) What are the main strategy formulation tools of strategic management?
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Chapter 10: Fundamentals of Organizing
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Q1) Traditionally,individuals at the top of a pyramid-shaped organizational structure have more authority but less responsibility than individuals at the bottom of the pyramid.
A)True
B)False
Q2) The formal structure of an organization evolves naturally and tends to be molded by individual norms and values and social relationships.
A)True
B)False
Q3) It is recognized today that the bureaucratic approach without an appropriate emphasis on the human variable is almost certainly a formula for organizational failure.
A)True
B)False
Q4) Which of the following is a disadvantage of division of labor?
A)It makes the work more difficult.
B)It makes work more time-consuming and inefficient.
C)It can result in workers getting bored of their work.
D)It prevents workers from specializing at a task.
E)It requires workers to know about the entire process and not just one task.
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Chapter 11: Responsibility, Authority, and Delegation
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Q1) Even though organizational objectives and other conditions within the management system might change,individual job activities should remain the same.
A)True
B)False
Q2) Which of the following key dimensions of responsible management behavior is concerned with managers accepting criticism for mistakes and buffering their groups from excessive criticism?
A)behavior with upper management
B)personal attitudes and values
C)attitude toward and conduct with subordinates
D)behavior with people outside the organization
E)behavior with other groups
Q3) A manager's behavior with upper management is a way to determine the degree of responsibility a manager possesses.
A)True
B)False
Q4) Authority is the right to perform or command.
A)True
B)False
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Chapter 12: Human Resource Management
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Q1) ________ is a training technique for instructing without the presence or intervention of a human instructor.
A)Experiential learning
B)Programmed learning
C)On-the-job training
D)Active learning
E)Lecture
Q2) Two tools often used in the selection process are ________.
A)recruitment and training
B)testing and assessment centers
C)programmed learning and performance appraisal
D)affirmative action program and learning-by-doing
E)public and private employment agencies
Q3) ________ for developing skills reflect a blend of job-related knowledge and experience.
A)Position rotation
B)Overlearning
C)Virtual teams
D)Special project reviews
E)Classroom techniques
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Chapter 13: Organizational Change: Stress,Conflict and Virtuality
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Q1) Which of the following is characterized by the most extensive degree of virtualization?
A)virtual meeting
B)virtual training
C)virtual team
D)virtual corporation
E)virtual group
Q2) Which of the following is characterized by groups of employees formed by managers?
A)virtual meeting
B)virtual training
C)virtual team
D)virtual corporation
E)virtual group
Q3) Structural change emphasizes increasing organizational effectiveness by changing controls that influence organization members during the performance of their jobs.
A)True
B)False
Q4) Briefly explain the dynamics of organizational change and stability.
Page 15
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Chapter 14: Influencing and Communication
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Q1) Lateral organizational communication relates primarily to the direction and control of employees.
A)True
B)False
Q2) Carolyn joins Arbitrar Consultants as a sales trainee.Her manager sends her an email outlining her role and responsibilities and the specific tasks she will be in charge of at the company.This is an example of ________.
A)upward communication
B)parallel communication
C)downward communication
D)horizontal communication
E)lateral communication
Q3) One strategy for encouraging formal organizational communication is to ensure that all organization members have free access to formal communication channels.
A)True
B)False
Q4) What is the importance of nonverbal messages in a communicative process?
Q5) What is the importance of lateral communication in an organization?
Q6) What are the major characteristics of organizational grapevine?
Page 16
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Chapter 15: Leadership
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Q1) Albert decides to select a person who is likely to show the highest degree of subordinate-centered leadership behavior.Which of the following descriptions of a candidate's previous leadership experience supports this style of leadership?
A)The candidate allows subordinates to function independently within defined limits.
B)The candidate seeks the opinion of the subordinates before making an important decision.
C)The candidate conducts a poll after making a decision to evaluate the decision's effectiveness.
D)The candidate is in the habit of presenting a tentative decision that is subject to change based on the opinions of the subordinates.
E)The candidate usually suggests ideas to the group and invites questions and opinions from the followers.
Q2) The OSU studies concluded that leaders exhibit two main types of behaviorstructure behavior and consideration behavior.
A)True
B)False
Q3) Explain the Vroom-Yetton-Jago model of leadership.
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Page 17
Chapter 16: Motivation
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Q1) The process of moving workers from one job to another rather than requiring them to perform only one simple and specialized job over the long run is ________.
A)team management
B)job enlargement
C)job enrichment
D)job rotation
E)cross training
Q2) Maslow's Hierarchy of Needs has been criticized because ________.
A)it is questionable whether human needs can be arranged in such a hierarchy
B)the model is too complicated
C)no one ever reaches self-actualization
D)research suggests that esteem needs should be above all other needs
E)it is too objective a description of human needs
Q3) Behavior modification is a program that focuses on managing human activity by controlling the consequences of performing that activity,such as rewards and punishments.
A)True
B)False
Q4) Define motivation and the two basic types of motivation theories.
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Chapter 17: Groups and Teams
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Q1) Which stage of team development is characterized by conflict and disagreement as team members try to clarify their individual roles and challenge the way the team functions?
A)forming
B)norming
C)performing
D)storming
E)adjourning
Q2) Which of the following statements about a group is true?
A)They are characterized by occasional communication among members over time and a size small enough to permit face-to-face communication.
B)The most common technique for accomplishing work through people is dividing them into work groups.
C)Groups invariably cause desirable consequences within the organization.
D)Groups are a simple gathering of people consisting of 5 or more people.
E)Groups exist only in some organizational structures.
Q3) Define the six task-related steps that help managers build effective work teams.
Q4) List the stages of formal group development.
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Chapter 18: Managing Organization Culture
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Q1) ________ is not established at once by a manager,but evolves slowly over time.
A)Corporate governance
B)Organizational ecology
C)Organizational space
D)Corporate behavior
E)Organization culture
Q2) Jane is starting a company and needs to give her employees a clear purpose of the organization.Jane needs a ________.
A)vision statement
B)mission statement
C)propaganda
D)balance sheet
E)statement of faith
Q3) Leaders in an organization with a market culture tend to be ________.
A)accommodating
B)mentors
C)conservative
D)hard-driving
E)parent figures
Q4) What are the functions of organization culture?
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Chapter 19: Encouraging Creativity and Innovation
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Q1) Which of the following is one of the principles of reengineering,as outlined by Michael Hammer?
A)Work should be organized around tasks,rather than outcomes.
B)Information-processing work should be carried out separately from the real work that produces the information.
C)Geographically dispersed resources must be treated as though they are decentralized and autonomous.
D)Parallel activities should be linked instead of integrating their results.
E)Control should be built into processes by keeping the decision point apart from where the work is performed.
Q2) Which of the following is considered to be a raw material for creativity?
A)passion
B)expertise
C)motivation
D)interest
E)drive
Q3) How are innovation and creativity connected?
Q4) What is the "innovation process"? Briefly describe the different steps involved in the innovation process.
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Chapter 20: Controlling, Information, and Technology
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Q1) Irvine White's work primarily involves supervising the production in one of the factories of TM Corp,a large manufacturing and retail company.Which of the following information is most likely to be relevant for Irvine?
A)trend forecasts for the industry
B)exception reports of operating results of his company
C)detailed reports of problems in his factory
D)environmental data for the company's business
E)decisions on strategic plans for his organization
Q2) Which of the following is the first step in the controlling process?
A)controlling performance
B)taking corrective action
C)measuring performance
D)recognizing problems
E)comparing performance standards
Q3) Appropriate information for strategic planning decisions is generally not completely current,but more historical in nature.
A)True
B)False
Q4) What are the challenges faced by executives in managing the IS workforce?
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Chapter 21: Production and Control
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Q1) Briefly explain the concept of strategies,systems,and processes.
Q2) Cost control relates to all organizational costs and emphasizes activities in all organizational areas.
A)True
B)False
Q3) Which of the following is the best example of a control tool that could be used at all stages of operations?
A)quality inspections
B)value statements
C)labor force planning
D)capacity planning
E)layout strategies
Q4) According to Deming's flow diagram for improving product quality,which of the following is the next step after the receipt and test of materials?
A)testing of processes,machines,methods,costs
B)production and assembly of raw materials
C)assembly and inspection of raw materials
D)distribution of materials across the organization
E)conducting consumer research on product quality
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