Operational Management
Midterm Exam
Course Introduction
Operational Management is a comprehensive course that explores the principles, practices, and strategies involved in the efficient production of goods and delivery of services. The course covers key topics such as process analysis, supply chain management, inventory control, quality assurance, project management, and capacity planning. Emphasizing both analytical tools and real-world application, students learn how to improve productivity, reduce costs, and enhance quality within organizations. Through case studies, simulations, and hands-on projects, the course equips students with the decision-making and problem-solving skills essential for effective operations in a dynamic business environment.
Recommended Textbook Management 12th Edition by Richard L. Daft
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Chapter 1: The World of Innovative Management
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Sample Questions
Q1) The nature of management is to control and dictate others in an organization.
A)True
B)False
Answer: False
Q2) According to Mintzberg, when Amanda attends a subordinate's wedding she is performing which of these roles?
A) Monitoring
B) Figurehead
C) Spokesperson
D) Leader
E) Liaison
Answer: B
Q3) Which of the following refers to the amount of resources used to achieve an organization's goal?
A) Effectiveness
B) Synergy
C) Performance
D) Efficiency
E) Management
Answer: D
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Chapter 2: The Evolution of Management Thinking
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Sample Questions
Q1) All of the following are characteristics of Weberian bureaucracy except:
A) labor is divided with clear definitions of authority and responsibility that are legitimized as official duties.
B) positions are organized in a hierarchy of authority, with each position under the authority of a higher one.
C) all personnel are selected and promoted based on technical qualifications.
D) administrative acts and decisions are recorded in writing.
E) management is the same as the ownership of the organization.
Answer: E
Q2) A(n) _____ perspective provides a broader way of thinking, a way of searching for patterns and determining whether they recur across time periods.
Answer: historical
Q3) Customer relationship management systems collect and manage large amounts of data about customers and make them available to employees.
A)True
B)False
Answer: True
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Chapter 3: The Environment and Corporate Culture
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Sample Questions
Q1) People and organizations that provide raw materials the organization uses to produce its output are called _____.
Answer: suppliers
Q2) When two or more organizations combine to become one, it is referred to as a:
A) joint venture.
B) flexible structure.
C) mechanistic structure.
D) merger.
E) inorganic venture.
Answer: D
Q3) Name one of the two dimensions that the categories of culture are based on.
Answer: Responses will be either (1) the extent to which the external environment requires flexibility or stability, or (2) the extent to which a company's strategic focus is internal or external.
Q4) The _____ environment includes the sectors that conduct day-to-day transactions within the organization.
Answer: task
Q5) A(n) _____ is when two or more organizations combine to make one organization.
Answer: merger
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Chapter 4: Managing in a Global Environment
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Sample Questions
Q1) List three examples of a country's infrastructure.
Q2) Cultural intelligence refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.
A)True
B)False
Q3) When it comes to economic development, a currently developing country is also called a(n) _____.
Q4) A cultural attitude marked by the tendency to regard one's own culture as superior to others is called:
A) ethnocentrism.
B) polycentrism.
C) geocentrism
D) technocentrism.
E) none of these.
Q5) A multinational corporation typically receives more than 25 percent of its total sales revenues from operations inside the parent's home country.
A)True
B)False
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Chapter 5: Managing Ethics and Social Responsibility
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Sample Questions
Q1) Of the following, which may whistle-blowers suffer?
A) Job loss
B) Ostracism by coworkers
C) Transfer to lower-level position
D) Hostile work environment
E) All of the above
Q2) Approximately 20% of American adults, according to your text, never reach the postconventional level of moral development.
A)True
B)False
Q3) ____ is NOT included in the model of personal moral development described in your text.
A) Preconventional level
B) Conventional level
C) Principled level
D) Postconventional level
E) All of these are included in the model
Q4) A(n) _____ arises in a situation when each alternative choice or behavior is undesirable because of potentially harmful ethical consequences.
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Chapter 6: Managing Start Ups and New Ventures
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Sample Questions
Q1) Women and minorities who have found their opportunities limited in the corporate world are seeing intrapreneurship as the only way to go.
A)True
B)False
Q2) Particularly in a turbulent environment, the three most important traits of successful entrepreneurs are realism, flexibility, and passion.
A)True
B)False
Q3) Optimizers are rewarded by chance to work on something new and creative.
A)True
B)False
Q4) A document specifying the business details prepared by an entrepreneur prior to opening a new business is known as a business plan.
A)True
B)False
Q5) A(n) _____ is an artificial entity created by the state and existing apart from its owners.
Q6) Name three of the four ways entrepreneurs can become business owners.
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Chapter 7: Managerial Planning and Goal Setting
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Sample Questions
Q1) Katelynn can anticipate enjoying the advantages of MBO which include:
A) increased orientation toward goal achievement.
B) performance can improve at all company levels.
C) employees are more motivated.
D) increased orientation toward goal achievement and motivation.
E) all of these.
Q2) A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n) _____.
A) goal
B) plan
C) mission
D) vision
E) objective
Q3) In a complex and competitive business world, traditional planning done by a select few is the only planning that works.
A)True
B)False
Q4) List and define the four major activities that must occur in order for management by objectives (MBO) to succeed.
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Chapter 8: Strategy Formulation and Execution
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Sample Questions
Q1) People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These actions are part of which tool for putting strategy into action?
A) Visible leadership
B) Candid communication
C) Human resources
D) Clear roles and accountability
E) Bargaining power of employees
Q2) When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued?
A) Functional-level strategy
B) Multi-domestic strategy
C) Corporate-level strategy
D) Retrenchment strategy
E) Business-level strategy
Q3) A business activity that an organization does particularly well relative to its competition is known as a(n) _____.
Q4) The question How do we compete? concerns _____ strategy.
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Chapter 9: Managerial Decision Making
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Sample Questions
Q1) The main difference between risk and uncertainty is that with risk you know the probabilities of the outcomes.
A)True
B)False
Q2) Individuals with a conceptual decision-making style are more socially oriented than those with an analytical style.
A)True
B)False
Q3) The _____ model of decision making is based on economic assumptions.
Q4) _____ decisions are associated with decision rules.
A) Nonprogrammed
B) Unique
C) Programmed
D) Ill-structured
E) Novel
Q5) Uncertainty means that a decision has clear-cut goals, and that good information is available, but the future outcomes associated with each alternative are subject to chance.
A)True
B)False
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Chapter 10: Designing Organization Structure
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Sample Questions
Q1) _____ means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.
Q2) The functional structure offers a way to decentralize decision making and provide direction from the teams in the field.
A)True
B)False
Q3) Advantages of the matrix structure include:
A) it increases employee participation.
B) it makes efficient use of human resources.
C) it works well in a changing environment.
D) it develops both general and specialist management skills.
E) all of these.
Q4) The divisional structure fosters excellent coordination within divisions, but coordination across divisions is often poor.
A)True
B)False
Q5) _____ means that decision authority is located near the top of the organization.
Q6) The divisional structure is sometimes called a(n) _____, _____, or _____.
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Chapter 11: Managing Change and Innovation
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Sample Questions
Q1) A fund providing resources from which individuals and groups draw to develop new ideas, products, or businesses is referred to as a _____.
A) personal fund
B) development fund
C) new-venture fund
D) change fund
E) mutual fund
Q2) The three distinct steps for achieving behavioral and attitudinal change with organizational development are planning, changing,and stabilizing.
A)True
B)False
Q3) _____ extends the search for and commercialization of new ideas beyond the boundaries of the organization.
Q4) The disparity between existing and desired performance levels is the need for change.
A)True
B)False
Q5) What is organizational change and what are two major areas of change in organizations?
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Chapter 12: Managing Human Resource
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Sample Questions
Q1) Training is typically used to refer to teaching people how to perform tasks related to their present jobs, while development means teaching people broader skills that are not only useful in their present jobs but also prepare them for greater responsibilities in future jobs.
A)True
B)False
Q2) Which of the following performance appraisal methods essentially evaluates employees by pitting them against one another?
A) Performance review ranking system
B) Semantic differential rating scale
C) Behaviorally anchored rating scale
D) Unidimensional rating scale
E) All of these
Q3) _____ are people who work for an organization, but not on a permanent or full-time basis.
Q4) List the three most common types of employment tests that organizations may use to select employees.
Q5) A process that uses multiple raters including self-rating, to appraise employee performance and guide development is called _____.
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Chapter 13: Managing Diversity
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Sample
Questions
Q1) Stephanie is nervous about giving a presentation at the marketing firm where she works. One of her male coworkers told her, "Don't be such a girl, attack that presentation!" Now Stephanie is so concerned about appearing tough that she can barely concentrate on the content of the presentation. Stephanie's anxiety stems from:
A) stereotype
B) ethnocentrism
C) plurality
D) glass ceiling threat
E) the female advantage
Q2) _____ serves as invisible barriers to important horizontal movement within the organization.
A) Barriers to entry
B) Affirmative action
C) Equal opportunity
D) The glass wall
E) The glass ceiling
Q3) _____ means that an organization accommodates several subcultures, including employees who would otherwise feel isolated and ignored.
Q4) _____ is designed to make people aware of their own prejudices and stereotypes.
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Chapter 14: Understanding Individual Behavior
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Sample Questions
Q1) From attributions viewpoint, if the behavior is in consensus, the perceiver will probably respond to similar situations in the same way.
A)True
B)False
Q2) The tendency to overestimate the contribution of internal factors to one's successes and the contribution of external factors to one's failures is a result of:
A) self-serving bias.
B) openness to experience.
C) over stability.
D) emotional plateau.
E) Machiavellianism.
Q3) According to research, an individual's personality has no affect on how they respond to stressors.
A)True
B)False
Q4) Loyalty to and heavy involvement in one's organization is called ______.
Q5) Errors in perceptual judgment that arise from inaccuracies in any part of the perception process are called ______.
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Chapter 15: Leadership
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Sample Questions
Q1) Referent power depends on the leader's:
A) formal title.
B) position in the hierarchy.
C) personal characteristics.
D) salary.
E) reward power.
Q2) Power is the potential ability to influence the behavior and decisions of other people.
A)True
B)False
Q3) Self-confidence, honesty and integrity, and the desire to lead, are all components of which personal characteristic of leaders?
A) Physical characteristics
B) Intelligence and Ability
C) Personality
D) Social Characteristics
E) Social Background
Q4) A(n) _____ for leadership makes the leadership style unnecessary or redundant.
Q5) A situational variable that counteracts a leadership style is known as a(n) _____.
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Chapter 16: Motivating Employees
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Sample Questions
Q1) Differentiate between intrinsic and extrinsic rewards.
Q2) Sally enjoys her job as a teacher, not because of the pay or benefits, but because she feels good about shaping the minds of tomorrow's leaders. Sally is motivated by: A) power factors.
B) leadership factors.
C) hygiene factors.
D) extrinsic rewards.
E) intrinsic rewards.
Q3) The equity theory, by J. Stacy Adams, states that equity exists when the ratio of outcomes to inputs for one person is equal to the same ratio for another person.
A)True
B)False
Q4) A content theory that proposes that people are motivated by five categories of needs-physiological, safety, belongingness, esteem, and self-actualization-that exist in a hierarchical order is called the _____ theory.
Q5) Job enlargement combines a series of tasks into one new, broader job.
A)True B)False
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Chapter 17: Managing Communication
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Sample Questions
Q1) Horizontal communication is particularly important in teaching organizations, where teams of workers are continuously solving problems and searching for new ways of doing things.
A)True
B)False
Q2) _____ refers to messages designed to motivate employees to adopt the company's mission and cultural values and to participate in special ceremonies.
A) Job instructions
B) Implementation of strategies
C) Practices
D) Performance feedback
E) Indoctrination
Q3) Managers facilitate strategic conversations by using open communication, actively listening to others, applying the practice of dialogue, and using feedback for learning and change.
A)True
B)False
Q4) In a(n) _____ network, individuals can communicate freely with other team members.
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Chapter 18: Leading Teams
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Sample Questions
Q1) During the norming stage of team development, individual personalities emerge causing conflict and disagreements.
A)True
B)False
Q2) List the four ways team norms develop.
Q3) _____ are goals that cannot be attained by a single party.
A) Conflict goals
B) Mission-driven goals
C) Superordinate goals
D) Competitive goals
E) Extraordinary goals
Q4) Tamika is a manager at Sleeveless Clothes, Inc. Recently, she was assigned a work team. She is in charge of the team and it consists of the subordinates under her authority. This is an example of a _____ team.
A) horizontal
B) functionall
C) self-managed
D) special-purpose
E) social
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Chapter 19: Managing Quality and Performance
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Sample Questions
Q1) Which of the following is a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets?
A) Open-book management
B) Economic value-added system
C) Activity-based costing
D) Inappropriate control system
E) None of these
Q2) Ophelia, the new CEO at Odyssey Inc., plans to implement a highly effective systematic process of regulating organizational activities to make them consistent with the expectations that are established by managers within the company. This is referred to as _____ control.
A) organizational
B) feedback
C) budgetary
D) systems
E) quality
Q3) The _____ estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations.
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