

Management Theory and Practice
Final Exam Questions

Course Introduction
Management Theory and Practice explores the fundamental concepts, frameworks, and techniques that underpin effective management in organizations. The course provides an overview of classical, behavioral, and contemporary management theories, examining how these foundations influence decision-making, leadership, motivation, and organizational structure. Students learn to apply management principles to real-world scenarios, developing skills in planning, organizing, leading, and controlling resources to achieve organizational goals. Emphasis is placed on the integration of theory with current best practices, encouraging critical thinking and problem-solving in dynamic business environments.
Recommended Textbook
MGMT Principles of Management 9th Edition by Chuck Williams
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Page 2

Chapter 1: Management
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Sample Questions
Q1) According to Linda Hill's study,after their first year of managerial experience,managers tend to:
A) exercise formal authority.
B) use positive reinforcement.
C) view themselves as the boss.
D) tell others what to do.
Answer: B
Q2) _________ is defined as getting work done through others.
Answer: Management
Q3) The _________ is the decisional role that managers play when they decide who gets what resources and in what amounts.
Answer: resource allocator role
Q4) Arrivers are managers who started out strong in their careers but were knocked off the fast track by the time they reached the middle to upper levels of management.
A)True
B)False
Answer: False
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Chapter 2: The History of Management
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Sample Questions
Q1) Which of the following is true about the chain of command in Max Weber's bureaucracy?
A) People in lower positions are protected by a grievance procedure.
B) Organizational owners have the right to hire and fire employees.
C) Organizational owners decide on who should be promoted.
D) Tasks and responsibilities are clearly defined and divided.
Answer: A
Q2) The Gilbreths used motion picture films to analyze jobs.
A)True
B)False
Answer: True
Q3) _____ invented the micro chronometer.
Answer: Frank Gilbreth
Q4) 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

Page 4
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Chapter 3: Organizational Environments and Cultures
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Q1) _____ refers to a transaction in which one party in the relationship benefits at the expense of the other.
A) Transactional behavior
B) Opportunistic behavior
C) Altruistic behavior
D) Relational behavior
Answer: B
Q2) _________ are graphic depictions of how managers believe environmental factors relate to possible organizational actions.
Answer: Cognitive maps
Q3) The employees at Titanium Inc.have the freedom to plan their own schedules and are empowered to make decisions.They also believe in sharing common goals.The managers have high levels of trust in their employees and foster team work.These beliefs and attitudes constitute Titanium's _____.
A) opportunistic behavior
B) industry regulation
C) general environment
D) organizational culture
Answer: D
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Page 5
Chapter 4: Ethics and Social Responsibility
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Q1) A(n)_____ is a social responsiveness strategy in which a company does less than society expects.
A) discretionary strategy
B) reactive strategy
C) proactive strategy
D) accommodative strategy
Q2) Which of the following is an objective of ethics training?
A) To achieve credibility with employees
B) To enforce flexible ethical standards
C) To discourage employees from reporting violations
D) To delegate decision-making authorities to all employees
Q3) Managers can use overt integrity tests to _____.
A) select and hire ethical employees
B) assess the ethical intensity of an issue
C) differentiate between the ethics of primary and secondary stakeholders
D) reinforce the ethical principle of individual rights
Q4) The principle of government requirements states that one should never take an action that does not result in greater good for society.
A)True
B)False

Page 6
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Chapter 5: Planning and Decision Making
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Q1) Which of the following is a decision-making method in which members of a panel of experts respond to questions and to each other until an agreement is reached on how a specific issue should be handled?
A) Dialectical inquiry
B) Nominal group technique
C) Delphi technique
D) Devil's advocacy
Q2) Management by objectives is a management technique often used to develop and carry out _____.
A) strategic plans
B) standing plans
C) operational plans
D) tactical plans
Q3) The manager of a packaging and shipping company has set a goal of increasing the customer base by 2.5 percent in the next two months.In this scenario,the manager has set a _____.
A) distal goal
B) quixotic goal
C) visionary goal
D) proximal goal
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Chapter 6: Organizational Strategy
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Q1) Which of the following best defines cost leadership?
A) It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry.
B) It is the positioning strategy of providing a product or service that is sufficiently different from competitors' offerings that customers are willing to pay a premium price for it.
C) It is the positioning strategy to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment.
D) It is the positioning strategy of companies that do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur.
Q2) Sanfase,a technology company in Rockbourne,manufactures microprocessors for computers.Its product is a lot more powerful than its competitors.This scenario is an example of competitive inertia.
A)True
B)False
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Page 8

Chapter 7: Innovation and Change
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Q1) The General Electric workout is a special kind of results-driven change.
A)True
B)False
Q2) Which of the following is true of the S-curve pattern of innovation of a product?
A) The flat slope indicates that increased effort brings only small improvements in technological performance.
B) The flat slope indicates that small amounts of effort will result in significant increases in performance.
C) The steep slope indicates that further efforts to develop this particular technology will result in only small increases in performance.
D) The steep slope indicates that the performance limits of that particular technology are being reached.
Q3) An error in the refreezing stage is not systematically planning for and creating short-term wins.
A)True
B)False
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Chapter 8: Global Management
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Q1) _____ is a government's use of trade barriers to shield domestic companies and their workers from foreign competition.
A) Protectionism
B) Developmentalism
C) Economic nationalism
D) Centralism
Q2) Which of the following is a disadvantage of franchising?
A) Franchisors face tariff and nontariff barriers when trying to enter a market.
B) Franchisors face a loss of control when they sell businesses to franchisees who are thousands of miles away.
C) Franchisors give up control over the quality of a product or service sold by foreign licensees.
D) Franchisors can eventually become competitors, especially when a licensing agreement includes access to important technology or proprietary business knowledge.
Q3) A(n)_________ is someone who lives and works outside his or her native country.
Q4) A _________ is a strategic alliance in which two existing companies collaborate to form a third,independent company.
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Chapter 9: Designing Adaptive Organizations
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Q1) Which of the following is an advantage of geographic departmentalization?
A) It focuses the organization on customer needs rather than on products or business functions.
B) It can reduce costs by locating unique organizational resources closer to customers.
C) It allows managers and workers to specialize in one area of expertise.
D) It lowers costs by reducing duplication.
Q2) Empowerment can lead to changes in organizational processes because meaning,competence,impact,and self-determination produce empowered employees who take active rather than passive roles in their work.
A)True
B)False
Q3) _________ is a hybrid structure in which two or more forms of departmentalization are used together.
Q4) _____ 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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Chapter 10: Managing Teams
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Sample Questions
Q1) In which of the following ways can teams have healthy conflicts?
A) By forcing a consensus to resolve issues
B) By establishing individual goals
C) By using limited and subjective data
D) By focusing on issues rather than personalities
Q2) Which of the following is necessary for stretch goals to effectively motivate teams?
A) Teams must be empowered with control of resources, such as budgets, workspaces, and computers.
B) Teams must include employees from a single functional area.
C) Teams must go through the process of multilevel reviews and sign-offs to get management approval before making changes.
D) Teams must have a low degree of autonomy over how they achieve their goals.
Q3) Cross-training is less appropriate for teams of highly skilled workers.
A)True
B)False
Q4) _________ is the degree to which workers in a team have the discretion,freedom,and independence to decide how and when to accomplish their jobs.A.Synergy
B.CohesivenessC.GroupthinkD.Autonomy
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Chapter 11: Managing Human Resource Systems
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Sample Questions
Q1) Which of the following is a difference between a quid pro quo case and a case of hostile work environment case?
A) A quid pro quo case deals with the sexual harassment of male employees, whereas a case of hostile work environment deals with the sexual harassment of female employees.
B) A quid pro quo case can result in economic injury, whereas a case of hostile work environment can lead to psychological injury.
C) A quid pro quo case relates to intentional discrimination, whereas a case of hostile work environment relates to unintentional discrimination.
D) In a quid pro quo case, an individual submits to sexual harassment, whereas in a hostile work environment case, an individual resists sexual harassment.
Q2) From a legal perspective,the two kinds of sexual harassment are:
A) quid pro quo and hostile work environment.
B) intentional discrimination and dominant minority.
C) adverse impact and disparate treatment.
D) affirmative action and opportunistic behavior.
Q3) _________ is the process of developing a pool of qualified job applicants.
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Page 13

Chapter 12: Managing Individuals and a Diverse Work Force
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Q1) Which of the following steps should companies take to reduce age discrimination?
A) They should train recruiters to make hiring decisions on the basis of age.
B) They need to ensure that younger workers do not interact with older workers.
C) They need to monitor the extent to which older workers receive training.
D) They should refrain from recruiting baby boomers.
Q2) Sienna Inc.,a software firm,decided to hire a technical expert.The company conducted an aptitude test followed by structured interviews for candidates.David,an African American,did exceptionally well in all the assessments but was rejected.Sienna has been known for discrimination against African Americans in several instances.David filed a case against Sienna on charges of racial discrimination.In the context of affirmative action,the company is most likely required to:
A) refer David to another company.
B) hire other African Americans to compensate for David's loss.
C) promote other minority employees in the company.
D) pay attorney's fees and court costs for David.
Q3) Affirmative action is unrelated to the 1964 Civil Rights Act.
A)True
B)False
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Chapter 13: Motivation
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Q1) Citrus Inc.,a leading Internet service provider,announced an incentive for sales persons who exceeded their sales targets.The company hoped that this reward would increase its customer base.Unfortunately,the company did not witness any substantial increase in the number of its customers as very few sales persons exceeded the target marginally.Which of the following reinforcement contingencies must be applied in this scenario?
A) Extinction
B) Punishment
C) Negative reinforcement
D) Positive reinforcement
Q2) Pay,benefits,and job security/organizational financial stability are considered very important intrinsic factors that motivate employees.
A)True
B)False
Q3) Extrinsic rewards are given to motivate people to look for better jobs outside a company.
A)True
B)False
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Chapter 14: Leadership
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Sample Questions
Q1) Nisha is a retail manager at Hexagon Corp.She needs to troubleshoot customer complaints regarding a product.She has to decide on either scrapping the product or replacing it with a different brand.Based on the customer complaints and favorable online reviews of an alternate brand,she decides to switch to a different brand.According to the normative decision theory,which of the following decision-making styles has Nisha adopted?
A) AI
B) AII
C) CI
D) GII
Q2) According to path-goal theory,the subordinate contingency of _________ refers to how capable subordinates believe they are in doing their jobs well.
Q3) In the Blake/Mouton leadership grid,a leader who shows little concern for people or production is known as an impoverished leader.
A)True
B)False
Q4) Directive leadership is very similar to considerate leader behavior.
A)True
B)False
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Chapter 15: Managing Communication
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Q1) _________ communication encourages lower-level managers and employees to participate in organizational decision making.
A.Downward
B.Upward
C.Horizontal
D.Informal
Q2) _____ is the process by which individuals attend to,organize,interpret,and retain information from their environments.
A) Active hearing
B) Passive listening
C) Perception
D) Apprehension
Q3) _________ are phone numbers that anyone in a company can call anonymously to leave information for upper management.
Q4) Organizational grapevines can be managed by:
A) withholding information from employees.
B) punishing those who share information with other employees.
C) rewarding employees when they circulate rumors in the company.
D) keeping employees informed about changing strategies and policies.
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Chapter 16: Control
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Q1) Standards can be determined by listening to customers' comments and complaints.
A)True
B)False
Q2) The CEO of Fox Mart wants to know what his company's financial position looked like on the 31st of December of the previous year.The financial report he should look at is the _____.
A) cash flow analysis
B) financial ratio
C) balance sheet
D) annual budget
Q3) _____ is defined as the use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies,rules,and procedures.
A) Normative control
B) Bureaucratic control
C) Concertive control
D) Objective control
Q4) _________ are calculations typically used to track a business's liquidity,efficiency,and profitability over time compared to other businesses in its industry.
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Chapter 17: Managing Information
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Q1) A(n)_____ can be used to convert digitized documents into ASCII (American Standard Code for Information Interchange)text that can be edited by word processing software.
A) electronic bar scanner
B) radio frequency analogue software
C) optical character recognition software
D) electromagnetic wave imager
Q2) Expert systems do not permit nonexpert employees to draw on the expert knowledge base to make decisions.
A)True
B)False
Q3) Baxton Courier Services recently gave all its employees electronic tablets to accurately track the whereabouts of its shipments.In this process,the costs that Baxton Courier Services incurred is an example of _____ costs.
A) acquisition
B) processing
C) communication
D) retrieval
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Chapter 18: Managing Service and Manufacturing Operations
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Q1) A just-in-time (JIT)inventory system is used with independent demand systems. A)True
B)False
Q2) The easier it is to maintain a working product or fix a broken product,the more _____ that product is.
A) reliable
B) serviceable
C) tangible
D) durable
Q3) If a machine requires 40 tons of steel to produce 30 tons of reinforced rods,which of the following indicates the productivity of the machine?
A) 0.75
B) 1.33
C) 1.50
D) 0.67
Q4) Extrinsic productivity is an overall measure of performance that indicates how much labor,capital,materials,and energy it takes to produce an output.
A)True
B)False

20
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