Management Fundamentals
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Course Introduction
Management Fundamentals introduces students to the essential principles, concepts, and functions of management in organizations. The course covers the roles and responsibilities of managers, the evolution of management theories, and the key processes of planning, organizing, leading, and controlling. Through case studies and practical examples, students develop an understanding of effective decision-making, leadership styles, motivation techniques, and strategies for managing teams and organizational change. This foundation prepares students for more advanced studies in management and equips them with skills applicable in a variety of professional environments.
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Modern Management Concepts and Skills 12th Edition by Samuel C. Certo
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Page 2
Chapter 1: Introducing Modern Management: Concepts and Skills
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Q1) Sara is a manager in a food processing company. Her primary function is to see that organizational goals are achieved. Which of the following must she discourage in order to promote this?
A) Ben spends a lot of time on Facebook, but gets his work done on time.
B) Ted organizes an inter-departmental soccer game every month.
C) Ashley's CSR activities for the company sometimes delay her work.
D) During lull periods at work, Sally works on her Master's thesis.
E) Clare is the top performer in the department, but has no interest in the industry.
Answer: C
Q2) Human skills, unlike technical skills, involve the ability to see the organization as a whole.
A)True
B)False
Answer: False
Q3) A career is a sequence of work-related positions occupied by a person over the course of a lifetime.
A)True
B)False
Answer: True
Page 3
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Chapter 2: Managing: History and Current Thinking
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Q1) Under the piece-rate system pioneered by Taylor, ________.
A) workers were paid according to the amount they produced
B) managers develop their employees' work-related skills
C) each job was reduced to the most basic movement possible
D) workers were paid more than their managers
E) managers were paid only after the workers exceeded production
Answer: A
Q2) Jane, a manager in a soda company, believes that the classical approach to management will help her to schedule her employees' tasks and handle people better. But using only the classical approach may not be the ideal approach because ________.
A) exact scientific knowledge of what could be done by a worker is substituted for opinion
B) the scientific approach has proven to be ineffective in increasing production
C) it is concerned with the entire range of managerial performance and not just the job design
D) it does not adequately emphasize the human variables in the production process
E) it does not have a "one best way" approach to management problems
Answer: D
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Chapter 3: Corporate Social Responsibility, Ethics, and Sustainability
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Q1) Which of the following occurs during the controlling process?
A) establishing orderly uses for all the organization's resources
B) guiding the activities of organization members to help attain organizational objectives
C) determining how the organization will achieve its objectives
D) making things happen as they were planned to happen
E) determining how the organization will get where it wants to go
Answer: D
Q2) Social responsiveness can be defined as ________.
A) the speed with which an organization adapts to the changing societal culture
B) an organization's effectiveness in abiding by the laws of the society
C) the degree of effectiveness and efficiency with which an organization fulfills its stockholders' needs while benefitting the stakeholders
D) the degree of effectiveness and efficiency an organization displays in pursuing its social responsibilities
E) the degree of effectiveness with which an organization can predict the changes in a society, such as the consumers changing preferences
Answer: D
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Chapter 4: Management and Diversity
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Q1) Alice is an American student of Chinese origin. Her grades fell significantly during the last semester, and as a result, her teacher was very disappointed, telling Alice that she should be more hardworking and dedicated to her studies as a result of her Chinese heritage. The teacher's attitude can be described as ________.
A) bicultural conflict
B) tokenism
C) stereotyping
D) ethnocentrism
E) feminism
Q2) Gender-role stereotypes are negative perceptions of women based on what society believes are appropriate behaviors for them.
A)True
B)False
Q3) The assimilation approach advocates shaping organization members to fit the organization.
A)True
B)False
Q4) How can managers plan, organize, influence, and control to promote diversity?
Q5) How can diversity be promoted through equal employment and affirmative action?
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Chapter 5: Managing in the Global Arena
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Q1) STL began as a manufacturer and retailer of customized apparel and accessories. Customers could choose their specifications online, and STL would produce and deliver the products to customers' homes. Initially, its market was limited to the U.S., but the company has begun to receive enquiries from overseas customers from many other countries. However, STL does not have the financial resources or the confidence to set up operations in other countries. Which methods could the CEO use to meet this overseas demand, taking into account the company's weaknesses?
Q2) Organizations that operate globally find that ________ are the least expensive to employ.
A) host-country nationals
B) expatriates
C) third-country nationals
D) repatriates
E) migrant workers
Q3) What can managers do to ensure that management action taken across national borders is ethical?
Q4) Discuss the three types of organizational members found in multinational corporations.
Q5) According to Hofstede, what are the five basic dimensions of culture?
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Chapter 6: Management and Entrepreneurship
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Q1) ________ refers to the activities and investments committed to gain returns from the new product or service arising from the opportunity.
A) Exploitation
B) Information asymmetry
C) Entrepreneurial risk
D) Illusion of control
E) Social value
Q2) Mike wants to start his own laundry service. However, he intends to first study the market and consider factors like who his competitors are, how they function, their market shares, how he can attract prospective customers, etc., before he decides whether his plan is viable. Mike is engaging in ________.
A) benchmarking
B) entrepreneurial risk management
C) feasibility analysis
D) exploitation
E) angel investing
Q3) Explain feasibility analysis.
Q4) What is corporate entrepreneurship?
Q5) Explain the fundamentals of entrepreneurship.
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Chapter 7: Principles of Planning
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Q1) The protective purpose of planning is to ________.
A) decrease paper work and red tape
B) increase the degree of organizational success
C) optimize the use of organizational resources
D) minimize risk by reducing the uncertainties surrounding business conditions
E) maximize the organization's ability to leverage environmental opportunities
Q2) Which management writer popularized management by objectives (MBO)?
A) Tom Peters
B) Frederick Taylor
C) Peter Drucker
D) Abraham Maslow
E) Henry Fayol
Q3) The CEO of an organization inaugurated the company's state-of-the-art research and development facility. According to Mintzberg, the CEO performed the role of a(n) ________ in this situation.
A) monitor
B) liaison
C) organizational figurehead
D) resource allocator
E) disturbance handler
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Chapter 8: Making Decisions
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Q1) The advantage of the Delphi technique is that ________.
A) it allows members to come up with wildly impractical ideas
B) it allows members to know why individuals voted the way they did
C) it allows members to discuss ideas in person
D) it is suitable for gathering ideas from group members who are too geographically separated
E) it takes the least amount of time compared to the other decision-making techniques
Q2) What are the disadvantages of group decision-making?
Q3) In the nominal group technique of decision-making, after all the members have discussed the ideas, they ________.
A) discuss their ideas one-to-one with the group leader
B) present their personal views on each of the ideas discussed
C) write down each idea on the board for all the other members to refer to
D) take out a secret ballot to support their favorite idea
E) adopt and implement the most cost effective idea
Q4) In the nominal group technique, group members never meet face to face.
A)True
B)False
Q5) What is bounded rationality?
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Chapter 9: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Q1) According to the GE Multifactor Portfolio Matrix, businesses falling in cells that form a diagonal from lower left to upper right are the strongest and the ones the company should invest in and help to grow.
A)True
B)False
Q2) ProBot Software recently launched DX 11-a computer operating system that offers superior features compared to all the other competing products available in the market. Though ProBot operates in a high growth market, DX 11 failed to make any significant profits. Which of the following would best explain this disconnect?
A) ProBot's competitors recently reduced their advertising budgets.
B) DX 11 is in the growth stage of the product life cycle.
C) ProBot has adopted a low cost strategy and has economies of scale.
D) The operating system offered by ProBot's main competitor is the industry standard.
E) The revenue generated by ProBot is used to finance the operations of one of its subsidiaries.
Q3) Compare and contrast strategic and tactical planning.
Q4) Define strategic planning. Explain the commitment principle in strategic planning.
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Chapter 10: Plans and Planning Tools
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Q1) Define the program evaluation and review technique (PERT).
Q2) Which of the following is a characteristic of the jury of executive opinion method of sales forecasting?
A) The resulting forecast is a blend of informed opinions.
B) It is a more formal method than the Delphi method.
C) It gives accurate data because the data is collected by the sales people who continually interact with customers.
D) It utilizes historical data to predict future sales levels.
E) It predicts future sales by analyzing the historical relationship between sales and time.
Q3) The jury of executive opinion of forecasting predicts future sales levels primarily by asking appropriate salespeople to give their opinions on what will happen to sales in the future.
A)True B)False
Q4) Repetitiveness, time, scope, and length are the four dimensions of plans.
A)True
B)False
Q5) What is a Gantt chart, explain its features.
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Chapter 11: Fundamentals of Organizing
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Q1) The organization structure at Sinclair Funds, a financial services company, is divided horizontally into Insurance, Mutual Funds, and Wealth Management departments. Identify the departmentalization mode being used here.
A) matrix
B) customer
C) product or service
D) geographic
E) functional
Q2) Span of management refers to ________.
A) the number of levels in an organization
B) the number of organizational levels above an individual
C) the number of organizational levels below an individual
D) the number of bosses an individual has
E) the number of individuals a manager supervises
Q3) Henri Fayol recommends that businesses establish multiple guiding authorities when organizing resources.
A)True
B)False
Q4) Discuss the five main steps in the organizing process.
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Chapter 12: Responsibility, Authority, and Delegation
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Q1) The process of assigning job activities and related authority to specific individuals in the organization is termed ________.
A) delegation
B) centralization
C) job specification
D) task identification
E) task significance
Q2) ABC insurance company hired a manager for their operations team. The manager divided the job activities among his team members by examining the management system objectives, designating appropriate activities that must be performed to reach those objectives, designing specific jobs by grouping similar activities, and making specific individuals responsible for performing those jobs. Which method is the manager using to divide job activities?
A) functional similarity
B) overlapping responsibility chart
C) process control
D) centralization
E) Robert's Rules of Order
Q3) What is delegation? Explain the steps in the delegation process.
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Page 14
Chapter 13: Human Resource Management
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Q1) Performance appraisals should emphasize how well the individual is doing the job, not the evaluator's impression of the individual's work habits.
A)True
B)False
Q2) A(n) ________ is a program in which participants engage in a number of individual and group exercises constructed to simulate important activities at the organizational levels to which they aspire.
A) job analysis
B) assessment center
C) performance appraisal
D) employment audit
E) workforce plan
Q3) The activities that a job entails are collectively referred to as the ________.
A) job specification
B) job description
C) workforce profile
D) résumé
E) performance appraisal
Q4) Write a short note on the process of recruitment and its importance.
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Chapter 14: Organizational Change: Stress, Conflict, and Virtuality
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Q1) Avoiding is a conflict management technique whereby managers simply ignore the conflict.
A)True
B)False
Q2) Resistance to change can be lowered by not informing the employees about the change too early.
A)True
B)False
Q3) Grid organization development technique is commonly used for ________.
A) changing people in organizations
B) designing structural changes
C) evaluating structural changes
D) evaluating technical changes
E) changing business processes
Q4) What is organizational change? Do you think change is important to organizations? Explain your answer.
Q5) Organizational conflicts can result in positive impact for the organization.
A)True
B)False
Q6) Briefly explain the dynamics of organizational change and stability. Page 16
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Chapter 15: Influencing and Communication
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Q1) What is emotional intelligence? Why is it important in organizations?
Q2) Lateral organizational communication relates primarily to the direction and control of employees.
A)True
B)False
Q3) One of the characteristics of the grapevine is that it ________.
A) is usually controlled and monitored by managers
B) springs up and is used regularly within the organization
C) usually follows an upward communication channel
D) is heavily influenced by the top executives of an organization
E) exists largely to serve the self-interests of the people within it
Q4) Which of the following observations is consistent with the "ten commandments of good communication"?
A) All communications should be planned by the sender alone.
B) Focus more on the content than the overtones in communication.
C) Avoid communication if the receiver cannot perceive it correctly.
D) Always plan communications with the past in mind.
E) Convey as much information as possible in each communication.
Q5) Describe formal communication and explain the three basic types of formal communication.
Page 18
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Chapter 16: Leadership
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Q1) Follower maturity, as defined by the Hersey-Blanchard life cycle theory, is not necessarily linked to chronological age.
A)True
B)False
Q2) Which of the following characteristics is more closely associated with an emerging leader than a manager?
A) independence
B) persistence
C) analytical skills
D) problem-solving ability
E) tough-mindedness
Q3) Entrepreneurial leaders approach each mistake as if it is a significant error rather than a smaller error that will be neutralized by the normal functioning of the organization.
A)True
B)False
Q4) Explain the major findings of the OSU studies.
Q5) Briefly explain and discuss the four emerging leadership styles of today.
Q6) Explain the difference between a leader and a manager.
Page 19
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Chapter 17: Motivation
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Q1) Leadership is the inner state that causes an individual to behave in a way that ensures the accomplishment of some goal.
A)True
B)False
Q2) When Jenn Williams joined Conrad Inc., as a business analyst, she was very happy with her job profile and the pay package. However, one year into the job has made her realize that this is not the right place to be. While the she has a good relationship with her co-workers and her supervisors are understanding, she feels that her hardwork often goes unnoticed. Being an ambitious person herself, this lack of acknowledgment is unsettling. Which of the following is most likely to be true in this scenario?
A) Jenn has a high need for affiliation.
B) Conrad Inc. promotes job enrichment.
C) Jenn has the tendency to blame external factors when things go wrong.
D) Jenn is motivated by extrinsic rewards.
E) Conrad Inc. focuses more on hygiene factors rather than motivating factors.
Q3) According to Herzberg, the work itself should be considered a motivating factor.
A)True
B)False
Q4) Define motivation and the two basic types of motivation theories.
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Chapter 18: Groups and Teams
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Q1) Which of the following is one of the major reasons to establish a committee?
A) to obtain status and social satisfaction that people might not enjoy without group membership
B) to perpetuate social and cultural values that group members consider important
C) to encourage groupthink
D) to handle routine organizational activities
E) to develop new ideas for solving existing organizational problems
Q2) The ________ stage of team development normally occurs only in teams established for some special purpose to be accomplished in a limited time period.
A) adjourning
B) performing
C) norming
D) storming
E) forming
Q3) As used in management-related discussions, a group is simply a gathering of people.
A)True
B)False
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Chapter 19: Managing Organization Culture
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Q1) Mark is an intern with Preston and Southend, a law firm. He finds that the senior employees are highly involved in the training and acquaintance of younger staff within the organization. The firm also displays a high degree of commitment towards employees and resembles a close-knit family, with emphasis placed on teamwork and shared values. What type of organization is prevalent in Preston and Southend?
A) clan culture
B) adhocracy culture
C) hierarchy culture
D) market culture
E) bureaucracy culture
Q2) A(n) ________ is a belief of a person or social group in which they have an emotional investment.
A) more
B) value
C) aesthetic
D) virtue
E) vice
Q3) Provide a brief description of organization culture.
Q4) Write a short note on the importance of organization culture.
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Chapter 20: Encouraging Creativity and Innovation
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Q1) ________ is presented as the degree of excellence on which products or services can be ranked on the basis of selected features.
A) Design
B) Quality
C) Aesthetics
D) Practicality
E) Novelty
Q2) Which of the following is a consequence of organizational activities that contribute to product quality?
A) lower market share
B) lower warranty costs
C) greater rework and scrap costs
D) greater service costs of products after they are sold
E) higher manufacturing costs
Q3) Identifying job candidates who are creative and hiring them is one of the more easily implemented steps for increasing organizational creativity.
A)True
B)False
Q4) Describe the importance of creativity in organizations.
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Chapter 21: Controlling, Information, and Technology
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Q1) Generally, the top management of a company would most benefit from information such as summary reports of transactions, detailed reports of problems, and operating plans and policies.
A)True
B)False
Q2) The extent to which an individual is able to influence others so they respond to orders is called ________.
A) authority
B) responsibility
C) accountability
D) power
E) strength
Q3) Which of the following is the last step in operating an IS properly?
A) transmitting data
B) determining appropriate data
C) using the information
D) determining information needs
E) gathering appropriate data
Q4) Define the terms technology, information technology, and information systems.
Q5) Describe the six steps necessary to operate an IS properly.
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Chapter 22: Production and Control
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Q1) A process layout is a layout pattern that groups together similar types of equipments.
A)True
B)False
Q2) Compare and contrast quality assurance and quality control. Which one do you think is preferable to organizations? Explain your answer.
Q3) Which of the following is the first stage in a cost control program?
A) measuring actual labor costs incurred
B) making changes to reduce actual labor and material costs
C) comparing planned labor and material costs to incurred costs
D) measuring actual material and process costs incurred
E) establishing standard or planned cost amounts
Q4) A system is a flow of interrelated events toward a goal, purpose, or end.
A)True
B)False
Q5) Explain and discuss the concept of operations strategies.
Q6) What is productivity and how is it important to organizations?
Q7) Explain how managers should use ratio analysis to assist in effectively controlling an organization.
25
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