Principles of Management
Exam Answer Key
Course Introduction
Principles of Management introduces students to the foundational concepts, theories, and practices involved in the effective management of organizations. The course covers essential topics such as planning, organizing, leading, and controlling, emphasizing the roles and responsibilities of managers in different organizational contexts. It explores decision-making processes, motivational strategies, team dynamics, and ethical issues in management. Students will gain insights into contemporary challenges faced by managers and develop problem-solving, leadership, and communication skills essential for success in both the public and private sectors.
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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) _________ are typically responsible for planning and allocating resources to meet organizational objectives.
A.Top managers
B.Team leaders
C.Middle managers
D.First-line managers
Answer: Middle managers
Q2) Mike supervises the work of assembly line workers in an automobile manufacturing firm.Most of his time is spent on quality control,scheduling workers,and training new employees.Mike can be categorized as a _____.
A) first-line manager
B) middle manager
C) top-level manager
D) plant manager
Answer: A
Q3) Efficiency is accomplishing tasks that help fulfill organizational objectives.
A)True
B)False
Answer: False
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Page 3
Chapter 2: The History of Management
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Q1) 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
Q2) The _____ approach to management is derived from theoretical models in biology and social psychology developed in the 1950s and 1960s.
Answer: systems
Q3) According to the _____,the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.
A) principles of scientific management
B) the human relations approach
C) principles of administrative management
D) the contingency approach
Answer: D
Q4) _____ invented the micro chronometer.
Answer: Frank Gilbreth
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Chapter 3: Organizational Environments and Cultures
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Q1) Opulent Inc.,a furniture design company based in Winona,designs a wide range of office and household furniture.Umber Corp.has recently started offering custom-made furniture in the same city.The managers at Opulent are conducting a research to find out the strengths and weaknesses of Umber.The managers are also trying to figure out the strategies used by Umber.Which of the following is a component of the specific environment that is illustrated in the scenario?
A) Divesting
B) Deskilling
C) Proactive monitoring
D) Competitive analysis
Answer: D
Q2) 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
Q3) _________ are graphic depictions of how managers believe environmental factors relate to possible organizational actions.
Answer: Cognitive maps
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Chapter 4: Ethics and Social Responsibility
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Q1) The greater the corporate responsibility in conducting,encouraging,or sanctioning illegal or unethical activity,the lower the culpability score.
A)True
B)False
Q2) Delayed product delivery is less of an issue when compared to delivering a faulty product,which can potentially cause harm.This is because delivering a faulty product has a _____.
A) high magnitude of consequences
B) low magnitude of influence
C) high cultural effect
D) low probability of effect
Q3) There is no trade-off between social responsibility and economic performance.
A)True
B)False
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
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Page 6
Chapter 5: Planning and Decision Making
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Q1) The more criteria a potential solution meets,the better that solution will be.
A)True
B)False
Q2) _________ is described as the process of choosing a solution from available alternatives.
Q3) At a canning factory,new employees are instructed to wear a certain type of uniform while working around the canning machines.The description of the uniform is very detailed and specific.Which of the following kinds of standing plans is described in this scenario?
A) Rules and regulations
B) Norms
C) Policies
D) Purpose statements
Q4) The nominal group technique typically produces better decisions than the devil's advocacy and dialectical inquiry approaches.
A)True
B)False
Q5) 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) In the context of portfolio strategy,_____ is the purchase of a company by another company.
A) divestiture
B) demerger
C) acquisition
D) restructuring
Q2) Which of the following statements is true of a portfolio strategy?
A) It guides the strategic decisions of corporations that compete in a variety of businesses.
B) It guides an investor who invests in a variety of stocks.
C) It reduces risk by buying a variety of items so that the failure of one business does not doom the entire portfolio.
D) It focuses on increasing profits, revenues, or the number of places in which a company does business.
Q3) Strategic reference points are the less visible,internal decision-making routines,problem-solving processes,and organizational cultures that determine how efficiently inputs can be turned into outputs.
A)True
B)False
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Page 8
Chapter 7: Innovation and Change
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Q1) Which of the following best defines the General Electric workout?
A) It is based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.
B) It is an approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation.
C) It is a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems.
D) It is a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance.
Q2) The compression approach to innovation is an approach to innovation that assumes a highly uncertain environment and uses intuition,flexible options,and hands-on experience to reduce uncertainty and accelerate learning and understanding.
A)True
B)False
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9
Chapter 8: Global Management
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Q1) _____ are new companies that are founded with an active global strategy and have sales,employees,and financing in different countries.
A) Joint ventures
B) Strategic alliances
C) Global new ventures
D) Global new acquisitions
Q2) Global new ventures are foreign offices,facilities,and manufacturing plants that are 100 percent owned by the parent company.
A)True
B)False
Q3) Aldhurst Corp.,a software manufacturing firm in the state of Lochmount,bought Fairden Corp.,a software manufacturing firm in the state of Vertholt.This scenario is an example of _________.
A.strategic alliance
B.direct foreign investment
C.direct export
D.joint venture
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 an advantage of matrix departmentalization?
A) It does not lead to cross-functional interaction.
B) It does not require a high level of coordination.
C) It allows companies to manage in an efficient manner large, complex tasks.
D) It reduces costs by locating unique organizational resources closer to customers.
Q2) A _________ is a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources directly.
A.simple matrix
B.complex matrix
C.network matrix
D.parallel matrix
Q3) _________ are characterized by precisely defined,unchanging roles and a rigid chain of command based on centralized authority and vertical communication.This type of organization works best in stable,unchanging business environments.
A.Mechanistic organizations
B.Organic organizations
C.Modular organizations
D.Virtual organizations
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Chapter 10: Managing Teams
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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 a difference between employee involvement teams and semi-autonomous work groups?
A) Members of employee involvement teams can change the designs of teams, whereas members of semi-autonomous groups cannot change the designs of teams.
B) Employee involvement teams do not have the authority to make decisions, whereas semi-autonomous groups have the authority to make decisions.
C) Employee involvement teams provide advice and suggestions to management, whereas semi-autonomous groups do not provide advice and suggestions to management.
D) Members of employee involvement teams are selected based on their experience, whereas members of semi-autonomous groups are selected based on their expertise.
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Chapter 11: Managing Human Resource Systems
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Sample Questions
Q1) It is unlawful to hire private investigators to conduct background checks on employees.
A)True
B)False
Q2) The top management of a company decided to lay off about twenty percent of its employees to cope with the financial loss the company incurred over the year.This scenario is an example of _________.
A.a performance appraisal
B.an involuntary separation
C.adverse impact
D.disparate treatment
Q3) The first selection devices that most job applicants encounter when they seek a job are application forms and résumés.
A)True
B)False
Q4) _________ is the process of developing a pool of qualified job applicants.
Q5) Application forms commonly ask applicants for non-job-related information.
A)True
B)False
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Chapter 12: Managing Individuals and a Diverse Work Force
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Q1) The government of a country is working to change employers' perceptions of older workers and encourage companies to abandon mandatory retirement plans.In the context of dimensions of surface-level diversity,which of the following types of discrimination is the government trying to eliminate?
A) Age discrimination
B) Sex discrimination
C) Racial and ethnic discrimination
D) Disability discrimination
Q2) A popular cell phone company is known for its diverse work force.When the company had to make a decision on product positioning in a new market,managers of different ethnic groups had different views due to cultural differences.Such conflicts were common in several decision making situations,which has become a critical issue in the company.In this scenario,_____ should be employed to minimize these differences among the managers.
A) social integration
B) emotional intelligence
C) a glass ceiling
D) an affirmative action program
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Page 14
Chapter 13: Motivation
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Q1) In the context of goal-setting theory,_________ is information about the quality or quantity of past performance and indicates whether progress is being made toward the accomplishment of a goal.
Q2) In the context of reinforcement theory,consequences of _________ follow a behavior after different times,some shorter and some longer,that vary around a specified average time.
Q3) In the context of theories of motivation,_________ is the process of changing behavior by changing the consequences that follow behavior.
A.goal setting
B.expectancy
C.reinforcement
D.equity
Q4) In the context of goal-setting theory,which of the following measures should managers take to motivate employees?
A) Managers should make sure workers truly accept organizational goals.
B) Managers should refrain from giving performance feedback.
C) Managers should set broad and easy goals.
D) Managers should not involve employees in goal setting.
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Page 15
Chapter 14: Leadership
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Q1) Which of the following is a characteristic of charismatic leaders?
A) They articulate a clear vision for the future that is based on strongly held values or morals.
B) They encourage followers to make sacrifices for their organization because they know that they will prosper when the organization prospers.
C) They transform their organizations by getting their followers to accomplish more than they intended.
D) They generate awareness and acceptance of a group's purpose and get employees to see beyond their own needs.
Q2) According to Fiedler's contingency theory,relationship-oriented leaders with high Least Preferred Coworker (LPC)scores are better leaders under _____ situations.
A) highly favorable
B) moderately favorable
C) less favorable
D) unfavorable
Q3) Charismatic leaders communicate high performance expectations to followers.
A)True
B)False
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16
Chapter 15: Managing Communication
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Q1) Clarissa walks up to her supervisor's cabin in the second floor every time she needs a clarification instead of sending an email.This scenario best depicts _____.
A) the use of jargon in a communication channel
B) the use of a wrong communication medium
C) a fundamental attribution error
D) the encoding and decoding of a message
Q2) _____ is described as feedback that is aimed at correcting performance deficiencies and motivating employees.
A) Empathetic feedback
B) Participative feedback
C) Solicited feedback
D) Constructive feedback
Q3) _________ are phone numbers that anyone in a company can call anonymously to leave information for upper management.
Q4) Delayed feedback is much more effective than immediate feedback.
A)True
B)False
Q5) A _________ is a method used to deliver a message.
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Chapter 16: Control
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Q1) A disadvantage of feedback is that:
A) it is too general to apply to most situations.
B) most people are too sensitive to receive feedback.
C) it always comes after the fact.
D) it makes the control process inefficient.
Q2) Which of the following is an advantage of the balanced scorecard?
A) It reduces the need for innovation and learning.
B) It eliminates the problem of regulation costs.
C) It minimizes the chances of suboptimization.
D) It helps managers focus solely on financial measures.
Q3) Which of the following statements about feedforward control is true?
A) It is also known as concurrent control.
B) It is a mechanism for gathering information about performance deficiencies after they occur.
C) It represents the extent to which it is possible to implement each step in the control process.
D) It provides information about performance deficiencies by monitoring inputs rather than outputs.
Q4) _________ is the extent to which it is possible to implement each step in the control process.
Page 18
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Chapter 17: Managing Information
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Questions
Q1) 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
Q2) In the context of protecting information,_________ makes sure that users are who they claim to be.A.encryption
B.authorizationC.decryptionD.authentication
Q3) Which of the following best describes communication costs?
A) It is the cost of obtaining data that an organization does not possess.
B) It is the cost of transforming data into meaningful information.
C) It is the cost of transmitting information from one place to another.
D) It is the cost of physically or electronically archiving information.
Q4) Retrieval cost is the cost of transmitting information from one place to another.
A)True
B)False
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Page 19
Chapter 18: Managing Service and Manufacturing Operations
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Q1) High-value service leads to customer satisfaction and customer loyalty,which,in turn,lead to long-term profits and growth.
A)True
B)False
Q2) With respect to service recovery,empowering workers means giving service employees the authority and responsibility to make decisions that immediately solve customer problems.
A)True
B)False
Q3) _________ are typically small manufacturing operations that handle special manufacturing processes.
A.Continuous units
B.Line units
C.Batches
D.Job shops
Q4) A moderate degree of processing occurs in _____.
A) assemble-to-order operations
B) make-to-order operations
C) batch operations
D) make-to-stock operations
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