

Management Fundamentals
Exam Answer Key
Course Introduction
Management Fundamentals introduces students to the essential concepts, principles, and practices of effective organizational management. The course covers key functions such as planning, organizing, leading, and controlling, while exploring contemporary challenges faced by managers in dynamic environments. Through case studies and practical examples, students will develop foundational skills in decision-making, leadership, communication, and teamwork, preparing them for further studies in management or entry-level supervisory roles in various sectors.
Recommended Textbook
MGMT Principles of Management 9th Edition by Chuck Williams
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18 Chapters
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2

Chapter 1: Management
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Sample Questions
Q1) _____ are equally important at all levels of management,from team leaders to chief executive officers.
A) Technical skills
B) Human skills
C) Spatial skills
D) Conceptual skills
Answer: B
Q2) Trent Automobiles Inc.was expecting a large shipment of scrap metal the previous week.Since the shipment did not arrive on time,the supply manager at Trent Automobiles was forced to place another order for the same quantity of scrap metal from a local manufacturer.As a result,its car manufacturing processes got delayed and expenses increased.In this scenario,Trent Automobiles is demonstrating a lack of _____.
A) synergy
B) disintermediation
C) instrumentality
D) efficiency
Answer: D
Q3) _________ is defined as getting work done through others.
Answer: Management
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Page 3

Chapter 2: The History of Management
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Q1) According to Henri Fayol's fourteen principles of management,order can be achieved in an organization by _____.
A) promoting individuals based on their political connections
B) resolving conflicts by the process of compromise
C) having a place for everyone and having everyone in his or her place
D) completely centralizing the process of decision making
Answer: C
Q2) Which of the following statements is true about bureaucracy?
A) It is based on the belief that management can be taught to others.
B) It allows political connections to determine an individual's power base within organizations.
C) It allows people to lead by virtue of their rational-legal authority.
D) It relies on scheduled, periodic corrective actions to operate efficiently.
Answer: C
Q3) Nearly all organizations should be viewed as open systems that interact with their environments and depend on them for survival.
A)True
B)False
Answer: True
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Page 4

Chapter 3: Organizational Environments and Cultures
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Q1) Instead of taking a smoke break every two hours,employees at a local company were asked to take an extra 30 minutes for lunch.This is an example of behavioral substitution.
A)True
B)False
Answer: True
Q2) A _____ approach typically involves framing issues as public issues; exposing questionable,exploitative,or unethical practices; and creating controversy that is likely to receive extensive news coverage.
A) petition
B) cognitive mapping
C) product boycott
D) media advocacy
Answer: D
Q3) The _________ component of the specific environment of an organization consists of regulations and guidelines that govern the business practices and procedures of specific industries,businesses,and professions.
Answer: industry regulation
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5

Chapter 4: Ethics and Social Responsibility
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Sample Questions
Q1) Which of the following is an argument put forth by economist Milton Friedman?
A) A law represents the minimal moral standards of society, so an individual should never take any action that violates the law.
B) It is unethical to take any action that is not in an organization's long-term self-interest.
C) It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations.
D) An individual's ethical decision is based on his or her level of moral development.
Q2) Which of the following factors should be taken into account when determining the ethical intensity of an action?
A) Conflict of interest
B) Peer acceptance
C) Intent of a manager
D) Temporal immediacy
Q3) Carrying out discretionary responsibilities is mandatory for every organization.
A)True
B)False
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Chapter 5: Planning and Decision Making
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Sample Questions
Q1) _________ is choosing a goal and developing a method or strategy to achieve that goal.
A.Controlling
B.Organizing
C.Leading
D.Planning
Q2) The _________ is a more specific goal that unifies company-wide efforts,stretches and challenges the organization,and possesses a finish line and a time frame.
A.policy
B.single-use plan
C.strategic objective
D.purpose statement
Q3) Specific,challenging goals provide a target for which to aim and a standard against which to measure success.
A)True
B)False
Q4) The first step in planning is to develop effective action plans.
A)True
B)False
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Chapter 6: Organizational Strategy
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Q1) _____ affects the likelihood of an attack or a response to an attack.
A) Grand strategy
B) Cost leadership
C) Differentiation
D) Market commonality
Q2) Rare resources are resources that are not controlled or possessed by many competing firms and are necessary to sustain a competitive advantage.
A)True
B)False
Q3) Which of the following best defines a distinctive competence?
A) It is what a company can make, do, or perform better than its competitors.
B) It is creating or acquiring companies in completely unrelated businesses.
C) It is the extent to which a competitor has similar amounts and kinds of resources.
D) It is the competitive move designed to reduce a rival's market share or profits.
Q4) Growth,stability,and retrenchment are all types of portfolio strategies.
A)True
B)False
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Chapter 7: Innovation and Change
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Q1) Which of the following is an error that managers make during the unfreezing stage?
A) They do not establish a great enough sense of urgency.
B) They lacking a vision for change.
C) They undercommunicate the vision by a factor of ten.
D) They do not systematically plan for short-term wins.
Q2) KelHouse Corp.specializes in mobile computing devices.It has developed a working model of a cell phone charger that can charge the battery of a cell phone in less than 15 minutes.This model is being tested for design,function,and reliability.In the context of the experiential approach to innovation,the working model is a(n)_____.
A) product prototype
B) minimum viable product
C) augmented product
D) dominant design
Q3) Over the years,flat screen television sets have been replaced by LED television sets.LED television sets are the new market standard.This is an example of a dominant design.
A)True
B)False
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Chapter 8: Global Management
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Q1) _____ is a technique in which trainees are placed in an ethnic neighborhood for three to four hours to talk to residents about cultural differences.
A) Field simulation training
B) Documentary training
C) Cultural simulation
D) Adaptability screening
Q2) In the context of cross-cultural training,the practice of adapting to cultural differences is called:
A) intercultural competence.
B) cultural conservatism.
C) cultural simulation.
D) multiculturalism.
Q3) _____ is the risk of major changes in political regimes that can result from war,revolution,death of political leaders,or other influential events.
A) Political conflict
B) Political uncertainty
C) Political failure
D) Political corruption
Q4) A(n)_________ is someone who lives and works outside his or her native country.
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Chapter 9: Designing Adaptive Organizations
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Q1) Which of the following is a disadvantage of modular organizations?
A) They cost significantly more to run than traditional organizations.
B) They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.
C) They do not let companies share costs, and because members cannot combine their efforts to meet customers' needs, they are slow.
D) They are unstable and have temporary relationships in a network alliance.
Q2) _________ are characterized by broadly defined jobs and responsibilities; loosely defined,frequently changing roles; and decentralized authority and horizontal communication based on task knowledge.
A.Mechanistic organizations
B.Organic organizations
C.Modular organizations
D.Virtual organizations
Q3) _____ is a management principle that workers should report to just one boss.
A) Unity of command
B) Line authority
C) Staff function
D) Task identity
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Page 11
Chapter 10: Managing Teams
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Sample Questions
Q1) Unlike cognitive conflict,affective conflict:
A) undermines team performance by preventing teams from engaging in the kinds of activities that are critical to team effectiveness.
B) is characterized by a willingness to examine, compare, and reconcile differences to produce the best possible solution
C) increases the satisfaction of team members, leads to cordiality between coworkers, and increases team cohesiveness.
D) refers to the emotional reactions that can occur when disagreements between coworkers are professional rather than personal.
Q2) Social loafing occurs when:
A) workers feel intense pressure not to disagree with each other so that a group can approve a proposed solution.
B) workers develop interpersonal relationships with other team members.
C) workers complete the assigned tasks and socialize with team members.
D) workers withhold their efforts and fail to perform their share of the work.
Q3) _____ represents the variances or differences in ability,experience,personality,or any other factor on a team.
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Page 12

Chapter 11: Managing Human Resource Systems
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Sample Questions
Q1) Wrongful discharge is the loss of poor-performing employees who choose to leave an organization.
A)True
B)False
Q2) Jennifer applied for the job of a waitress at Sam's Coffee shop.During the recruitment,the recruiter asked her to make five different types of beverages and wait the tables for an hour.In this scenario,the recruiter conducted a _____.
A) psychometric test
B) specific ability test
C) cognitive ability test
D) work sample test
Q3) Which of the following is a subjective performance measure?
A) Customer complaints
B) Sales
C) Rejection rates
D) Graphic rating scales
Q4) _________is the process of developing a pool of qualified job applicants from outside the company.
Q5) _________ is the process of developing a pool of qualified job applicants.
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Chapter 12: Managing Individuals and a Diverse Work Force
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Q1) In which of the following ways can companies ensure that people with disabilities have the same opportunities as everyone else?
A) Recruiting disabled candidates only for low level jobs
B) Refraining from assigning higher responsibilities to disabled employees
C) Employing people with disabilities only for jobs that do not require movement
D) Providing reasonable workplace accommodations for disabled employees
Q2) Recognizing deep-level diversity is important because it can:
A) result in less prejudice, discrimination, and conflict in the workplace.
B) help in reinforcing dimensions of surface-level diversity.
C) help in overcoming differences that are unchangeable and unmeasurable.
D) enable managers to focus on differences based on age, ethnicity, and physical capabilities.
Q3) Diversity drives business growth by:
A) attracting different customers and markets.
B) reinforcing affirmative action.
C) weakening business monopoly.
D) decreasing competition in the industry.
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Chapter 13: Motivation
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Sample Questions
Q1) In the context of equity theory,pay,fringe benefits,status symbols,and job titles and assignments are examples of _____.
A) outcomes
B) referents
C) inputs
D) valences
Q2) In industrial psychology,which of the following equations best represents job performance?
A) Job Performance = Instrumentality/(Expectancy × Valence)
B) Job Performance = Motivation/(Ability × Effort)
C) Job Performance = Instrumentality × Expectancy × Valence
D) Job Performance = Motivation × Ability × Situational Constraints
Q3) According to McClelland,_____.
A) people are motivated by their highest unsatisfied need
B) people can be motivated only by one need at a time
C) needs are learned, not innate
D) rewards are tangible, not intangible
Q4) According to equity theory,employees compare the rewards they receive from an organization with their contributions to the organization.This comparison is called
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Chapter 14: Leadership
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Q1) _________ states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the routes to goals and by increasing the number and kinds of rewards available for goal attainment.
Q2) Charismatic leaders communicate high performance expectations to followers.
A)True
B)False
Q3) Burton is the founder of Netball.com,an online gaming site.He hired a few game developers and a few experts in marketing.He set the goal of making Netball one of the top ten Internet gaming sites in the next five years.He clearly defined the job responsibilities of each of his employees and the procedures that were to be followed in order to achieve that goal.The situational factor of _________ is illustrated in this scenario.
A.leader-member relations
B.position power
C.task structure
D.initiating structure
Q4) According to path-goal theory,the subordinate contingency of _________ refers to how capable subordinates believe they are in doing their jobs well.
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Page 16
Chapter 15: Managing Communication
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Q1) Which of the following is one of the mistakes that managers tend to make when they are coaching employees?
A) They address employees' problems immediately after the employees make mistakes.
B) They wait too long before talking to employees about the problem.
C) They refer the employees to externally appointed physiologists.
D) They require the employees to pay for their additional training.
Q2) _________ is the tendency to fill in the gaps where information is missing,that is,to assume that what we do not know is consistent with what we already do know.
A.Closure
B.Proxemics
C.Kinesics
D.Admeasure
Q3) _________ is information that is collected by survey from organization members and then compiled,disseminated,and used to develop action plans for improvement.
Q4) _________ are personality-,psychology-,or experience-based differences that influence people to ignore or pay attention to particular stimuli.
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Page 17

Chapter 16: Control
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Q1) _________ are defined as a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.
A.Standards
B.Observations
C.Values
D.Deviations
Q2) Only manufacturing firms have waste disposal problems.
A)True
B)False
Q3) _________ is defined as the regulation of workers' behavior and decisions through work group values and beliefs.
A.Bureaucratic control
B.Objective control
C.Output control
D.Concertive control
Q4) _________ is a type of analysis that predicts how changes in a business will affect its ability to take in more money than it pays out.
Q5) _________ occurs when behavior and work procedures do not conform to standards.
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Chapter 17: Managing Information
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Q1) Association patterns help identify database elements that are different.
A)True
B)False
Q2) In 1965,one of the founders of Intel Corporation predicted that computer-processing power would double and that its cost would drop by 50 percent every two years.This is known as _____.
A) Moore's law
B) Amdahl's law
C) Metcalfe's law
D) Haitz's law
Q3) _________ is the process of granting authenticated users approved access to data,software,and systems.
Q4) _____ usually begins with the user telling the data mining software to look and test for specific patterns and relationships in a data set.
A) Data integration
B) Data binding
C) Supervised data mining
D) Unsupervised data mining
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Chapter 18: Managing Service and Manufacturing Operations
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Q1) _________ means products cannot be repaire
D.They can only be replace D.
Q2) Atrade Foods Inc.is a chain of supermarkets where part of employees' monthly paychecks depend on customer satisfaction.80 percent of the salary is based on earnings and the remaining 20 percent is based on customer satisfaction ratings and service quality.In this case,Atrade Foods Inc.is committed to _____.
A) total quality management
B) line-flow production
C) implementing an MRP program
D) internal service quality
Q3) Internal service quality means that an entire organization,from top to bottom,should be focused on meeting customers' needs.
A)True
B)False
Q4) _________ is a type of productivity that assesses how efficiently companies use only one input,such as labor,when creating outputs.
Q5) _________ is the average overall inventory during a particular time period.
Page 20
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