

Management Fundamentals
Textbook Exam Questions
Course Introduction
Management Fundamentals introduces students to the core principles and practices of effective management within organizations. This course covers key topics such as planning, organizing, leading, and controlling, while examining the roles and responsibilities of managers in contemporary business environments. Students will explore fundamental management theories, decision-making processes, organizational structure, communication, motivation, and team dynamics. Through case studies and real-world examples, the course emphasizes practical skills and critical thinking necessary for successful management in various professional settings.
Recommended Textbook
Understanding Management 10th Edition by
Richard L. Daft
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15 Chapters
975 Verified Questions
975 Flashcards
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Page 2

Chapter 1: The World of Innovative Management
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Sample Questions
Q1) When Terry Doyle of CommuniCom,Inc.created smaller,more independent maintenance units,he was performing the function of:
A)controlling.
B)human relations skills.
C)leading.
D)organizing.
E)resourcing.
Answer: D
Q2) _____ refers to the field of management that specializes in the physical production of goods or services.
Answer: Operations management
Q3)
TheHawthornestudiesledtotheearlyconclusionthatpositivehumanrelationscanleadtosigni ficantlyhigherperformance.
A)True
B)False
Answer: True
Q4) In the _____ role,managers initiate improvement projects,identify new ideas,and delegate idea responsibility to others.
Answer: entrepreneur
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Chapter 2: The Environment and Corporate Culture
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Sample Questions
Q1) The consistency culture has an external focus and a consistency orientation for a dynamic environment.
A)True
B)False
Answer: False
Q2) List two reasons why ceremonies are held in an organization.
Answer: Possible responses would include: to reinforce valued accomplishments,to create a bond among people by allowing them to share an important event,and to anoint and celebrate heroes.
Q3) Companies in Quadrant A represent the high-performance culture.
A)True
B)False
Answer: False
Q4) In the current external business environment,which of the following is true?
A)Corporate culture defines success.
B)The business environment is static.
C)Companies are more adversarial than ever before.
D)Mergers are declining.
E)Joint ventures are on the rise.
Answer: E

Page 4
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Chapter 3: Managing in a Global Environment
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Sample Questions
Q1) Austria's cultural preference is for achievement,heroism,assertiveness,and material success.This would be considered:
A)power distance.
B)individualism.
C)masculinity.
D)ethnocentrism.
E)collectivism.
Answer: C
Q2) An example of global outsourcing is seen when Gap,Inc.uses low-cost Caribbean labor to cheaply produce its clothing,and then finishes off and sells its clothing in the United States.
A)True
B)False
Answer: True
Q3) A multinational corporation typically receives at least _____ percent of its total sales revenues from outside the parent's home country.
Answer: 25 twenty-five twenty five
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Page 5

Chapter 4: Managing Ethics and Social Responsibility
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Sample Questions
Q1) Social responsibility covers a narrow range of issues,many of which are unambiguous with respect to right or wrong.
A)True
B)False
Q2) The moral agent is an individual who must make an ethical choice in an organization.
A)True B)False
Q3) Economic development that generates wealth and meets the needs of the current population while preserving the environment for the needs of future generations refers to sustainability.
A)True
B)False
Q4) Employee disclosure of illegal organization activities is known as _____.
Q5) Economic responsibility defines what society deems as important with respect to appropriate corporate behavior.
A)True B)False
Q6) List the four responsibilities of corporate social performance.
Page 6
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Chapter 5: Planning and Goal Setting
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Sample Questions
Q1) A business activity that an organization does particularly well relative to its competition is known as a(n)_____.
Q2) Defining operational goals and plans occurs in the execution phase of the organizational planning process.
A)True
B)False
Q3) One of the biggest benefits of planning is that,in turbulent environments,plans create greater organizational flexibility.
A)True
B)False
Q4) A desired future state that the individual or organization attempts to realize is a goal.
A)True
B)False
Q5) A group of planning specialists assigned to major departments and divisions to help managers develop their own strategic plans is called _____.
Q6) The use of managerial and organizational tools to direct resources toward accomplishing strategic results is known as _____.
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Page 7

Chapter 6: Managerial Decision Making
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Sample Questions
Q1) A(n)_____ is a choice made from available alternatives.
Q2) Differences among people with respect to how they perceive problems and make decisions is called _____.
Q3) Most bad decisions are errors in judgment that originate in the human mind's limited capacity and in the natural biases of the manager.
A)True
B)False
Q4) Melissa is a manager at InStylez Clothing.Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions.Melissa's situation is most consistent with which of the following concepts?
A)Bounded rationality
B)The classical model of decision making
C)Satisficing
D)Brainstorming
E)Scientific management
Q5) Making a choice is the most significant part of the decision-making process.
A)True
B)False
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Chapter 7: Designing Organization Structure
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Sample Questions
Q1) _____ production involves the production of goods in batches of one or a few products designed to customer specifications.
Q2) _____ is the process managers use to transfer authority and responsibility to positions below them in the hierarchy.
Q3) Swift Move Facilities manufacturers two different bicycle models.The company produces a high volume of products using standardized production runs.The company does very little product customization.Swift Move uses what type of technology structure?
A)Service production
B)Mass production
C)Large-batch production
D)Small-batch production
E)Continuous process production
Q4) The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated.
A)True
B)False
Q5) Describe service technology.
Q6) The _____ is the number of employees reporting to a supervisor.
Page 9
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Chapter 8: Managing Change and Innovation
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Sample Questions
Q1) After every quarterly board meeting,Bernice's Bracelets,Inc.announces big changes.They usually do not follow through on these changes.What is causing this lack of enthusiasm?
A)Disagreements about the benefits
B)Self-interests
C)A lack of trust
D)Goals and assessments
E)Competitors
Q2) The disparity between existing and desired performance levels is the need for change.
A)True
B)False
Q3) What is organizational change and what are two major areas of change in organizations?
Q4) People change starts with training everyone in the organization.
A)True
B)False
Q5) Explain the concept of force-field analysis.
Q6) The _____ role in organizational change involves providing a "reality test."
Q7) Explain the horizontal linkage model.
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Chapter 9: Managing Human Resources and Diversity
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Sample Questions
Q1) Wage and salary surveys show what other organizations pay incumbents in jobs that match a sample of "key" jobs selected by the organization.
A)True
B)False
Q2) List and describe the five forms of sexual harassment.
Q3) Affirmative action requires that an employer take positive steps to guarantee promotion from within.
A)True
B)False
Q4) Monetary payments and nonmonetary goods or benefits used to reward employees are known as _____.
Q5) Which of the following means that an organization accommodates several subcultures?
A)Monoculturalism
B)Pluralism
C)Ethnorelativism
D)Geocentricism
E)Ethnocentrism
Q6) Name five dividends of workplace diversity.
Page 11
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Chapter 10: Understanding Individual Behavior
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Sample Questions
Q1) ______ is the ability to engage in self-regulating thoughts and behaviors to accomplish all your tasks and handle challenging situations.
Q2) The ability to connect to others,build positive relationships,respond to the emotions of others,and influence others is referred to as relationship management.
A)True
B)False
Q3) ______ are judgments about what caused a person's behavior-something about the person or something about the situation.
Q4) The last step in getting organized is to empty your head.
A)True
B)False
Q5) A halo blinds the perceiver to other attributes that should be used in generating a more complete assessment.
A)True B)False
Q6) Self-management is NOT a component of emotional intelligence. A)True B)False
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Chapter 11: Leadership
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Sample Questions
Q1) List the two types of personal power.
Q2) Beth,a middle manager at Heather's Handbags,uses threats and punishments as ways of influencing the behavior of his subordinates.Which of the following sources of power is Beth relying on?
A)Reward power
B)Coercive power
C)Expert power
D)Referent power
E)Personal power
Q3) The alienated follower is a person who is an independent,critical thinker but is passive in the organization.
A)True
B)False
Q4) Research indicates people rate leaders as "more effective" when they are perceived to use one influence tactic.
A)True
B)False
Q5) A(n)_____ for leadership makes the leadership style unnecessary or redundant.
Q6) Distinguish between charismatic and transformational leadership.
Page 13
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Chapter 12: Motivating Employees
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Sample Questions
Q1) At Rightway Industries,new hires spend a significant portion of their first week of training just walking around the factory,observing other workers and watching them get rewarded for doing their jobs well.This is an example of:
A)vicarious learning.
B)self-efficacy.
C)self-reinforcement.
D)delegation.
E)experiential learning.
Q2) _____ is a motivational compensation program that allows workers to set their own hours.
Q3) Samuel,a sales associate at an electronics store,learns that his base pay is higher than any other sales associate in the store.He justifies his higher salary to the idea that he must be a top sales associate,generating more revenue than anyone else.This example demonstrates which method for reducing perceived inequity?
A)Working harder, not smarter
B)Changing outcomes
C)Changing work effort
D)Changing perceptions
E)Leaving the job
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Page 14

Chapter 13: Managing Communication
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Sample Questions
Q1) Louise,a top-level manager at INF Inc.,has the difficult task of informing 12 employees that they are about to be laid off.Which communication channel should Louise use to break the news?
A)Face-to-face
B)E-mail
C)Instant messaging
D)Telephone
E)Handwritten letter
Q2) What percentage of a manager's time is spent in direct communication?
A)20 percent
B)100 percent
C)50 percent
D)80 percent
E)40 percent
Q3) A(n)_____ is a team communication structure in which team members communicate through a single individual to solve problems or make decisions.
Q4) To translate the symbols used in a message for the purpose of interpreting its meaning is called _____.
Q5) In a(n)_____ network,individuals can communicate freely with other team members.
15
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Chapter 14: Leading Teams
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Sample Questions
Q1) A task force is sometimes called a(n):
A)vertical team.
B)cross-functional team.
C)command team.
D)special-purpose team.
E)executive team.
Q2) Two common behaviors of the socioemotional role are energizing and encouraging.
A)True
B)False
Q3) Work team effectiveness is based on three outcomes: productive output,capacity to adapt and learn,and:
A)cohesiveness.
B)satisfaction.
C)commitment.
D)leadership.
E)norms.
Q4) A team created outside the formal organization to undertake a project of special importance or creativity is known as a(n)_____.
Q5) What are the three key components of the author's definition of a team?
Q6) List the five stages of team development.
Page 16
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Chapter 15: Managing Quality and Performance
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Sample Questions
Q1) What is the first step in the feedback control system?
A)Establishing strategic objectives
B)Establishing standards of performance
C)Taking corrective action
D)Comparing performance to standard
E)Measuring previous performance
Q2) The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if performance is inadequate.
A)True
B)False
Q3) At LBK Industries,responsibility for quality control rests with a team of quality control inspectors and supervisors rather than with employees.LBK uses what type of organizational control?
A)Matrix control
B)Hierarchical control
C)Decentralized control
D)Bottom-up control
E)Balanced control
Q4) List the four steps in the feedback control model.
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