1. Which of the following is a feature of a high-performing organization?
The managers choose the right goals to pursue and use resources appropriately to meet them.
The managers choose inappropriate goals but use resources effectively to achieve them.
The organization produces a low-quality but affordable product.
The organization produces a product that customers will want to buy but will not be able to afford.
2. A differentiation strategy can be employed by organizations to:
achieve flexibility in organizational culture.
enhance the value consumers perceive in their products.
reduce costs in all their functions.
ensure strict control over various departments by a system of checks and balances.
3. __________ is the formal system of task and job reporting relationships that determines how employees utilize resources to achieve a company’s goals.
4. Which of the following statements is true of an evolutionary change in an organization?
It is effected through reengineering and innovation.
It helps the organization adapt to gradual changes in the environment.
It is likely to result in a radically new structure for the organization.
It involves quickly finding new ways to be effective.
5. __________ is the process by which managers regulate and monitor how efficiently and effectively an organization as a whole works to achieve organizational goals.
6. How does an increase in job specialization lead to higher organizational performance?
Each worker specializes in a different set of tasks over a period of time.
Workers join different groups and each group performs the same task at increasing costs over a period of time.
Each worker becomes responsible for all the different tasks involved in producing a product thereby increasing productivity.
Workers performing specific tasks become much more skilled and produce a product faster while working in groups.
7. Identify a true statement about an effective control system?
It is an informal system that helps managers make decisions.
It allows managers to take only programmed decisions.
It is limited in its capacity to provide managers with information in a timely manner.
It provides managers with accurate information about organizational performance.
8. Which of the following principles identified by Henri Fayol focuses on the chain of command with an organization?
An employee should receive orders from only one supervisor.
Authority should be concentrated at the top of the chain of command in an organization.
A manager should not encourage or allow his or her employees to be innovative and creative.
A manager is not entitled to ask for his or her employees’ obedience.
9. __________ is the process by which managers establish the structure of working relationships among employees to allow them to achieve a company’s goals efficiently and effectively.
10. A differentiation strategy is ideal for organizations that:
want to ensure flawless coordination among multiple divisions.
try to ensure flexibility in organizational culture.
intend to exercise strict control over various departments.
aim to produce new, innovative products.
11. Which of the following is an advantage of implementing a functional structure in an organization?
It enables employees who perform similar kinds of jobs to observe and learn from each other.
It allows functional managers to develop generic skills that help manage all aspects of production.
It helps managers specialize and develop expertise in only one product area.
It lets organizations choose the set of products that serves the needs of regional customers.
12. Which of the following is an advantage of group decision making?
It is easy to execute because getting two or more managers to agree on a solution is relatively simple.
It is unaffected by any kind of cognitive bias as it benefits from multiple perspectives.
It allows managers to take decisions within relatively short periods of time compared to individual decision makers.
It allows managers to process more information and rectify one another’s errors.
13. A low-cost strategy requires organizations to:
increase the spending on research and development to differentiate its products from those of its competitors.
develop products that can be manufactured inexpensively compared to existing rival products.
focus its attention on customers from a particular geographic area.
direct its efforts to cater to a particular kind of customer.
14. According to Lewin’s force-field theory of change, which of the following factors results in a change in an organization?
A decrease in resistance to change
A stable general environment
A stable task environment
A decrease in forces for change
15. One way of pursuing a differentiation strategy is by:
looking for new ways to reduce production costs.
investing more on research and development.
introducing products that are replicas of a competitor’s products.
offering specialized products at low-costs.
16. According to Henry Fayol, the planning process in an organization is effective when:
it sets disparate, specific goals for each functional level.
it produces plans that are static, thus avoiding confusion.
it allows plans to be designed and modified at all levels.
it proposes multiple plans to achieve an organizational goal.
17. The __________ of an organization is responsible for building an efficient top management team.
chief executive officer
18. _____ is a measure of how productively resources are utilized to meet a goal
19. An organization’s return on investment is calculated by dividing:
its operating profit by sales revenue.
its current assets by its current liabilities.
its net income before taxes by its total assets.
its profit before interest and taxes by its total interest charges.
20. A __________ specifies the national markets and industries an organization plans to compete in and why it intends to do so.
21. Which of the following models of leadership focused on identifying the characteristics of a person capable of being an effective leader?
The behavioral model
House’s path-goal model
The trait model
Fiedler’s contingency model
22. Unlike leaders, managers are those who:
develop relationships with employees based on trust and mutual respect.
seek innovation rather than stability in their approach to fulfill organizational aspirations.
encourage and motivate employees to work together to achieve a common vision.
implement procedures and processes to ensure the smooth functioning of an organization.
23. First-line managers in an organization are responsible for:
helping middle managers set organizational goals.
ensuring the smooth functioning of all departments.
supervising nonmanagerial employees on a day-to-day basis.
assessing the appropriateness of organizational goals.
24. A person’s upbringing is an important source of __________.
25. __________ signify what an organization and its members are trying to accomplish.
26. Which of the following statements is true of transformational leaders?
They hesitate to share information with their coworkers.
They engage with subordinates and motivate them to work toward organizational goals.
They prefer to maintain the status quo in their organizations.
They use reward power and coercive power to command respect from their subordinates.
27. Which of the following did Frederick W. Taylor believe to be an outcome of recording the method of performing a particular task in an organization?
Workers did not have to be trained for specific roles anymore.
Tasks became complicated and time-consuming.
Workers’ informal knowledge about their tasks became irrelevant.
Job procedures became standardized and more routine.
28. Adopting a __________ involves distributing monetary resources among divisions to increase financial returns or to spread risks among different businesses.
29. Which of the following scenarios illustrates the attraction-selection-attrition framework?
The management of ThinkFree Inc. requires all prospective employees to attend a basic induction program.
All the newly hired employees of Style Prints Inc. are encouraged to participate in team outings.
Miriam likes experimenting with new possibilities and taking risks. She hires like-minded people for her start-up.
Serena wins the annual award for best employee of the year. She was selected from all likely candidates for her dedication to her work.
30. Which of the following statements is true of a corporate-level strategy?
It provides the framework within which functional managers operate.
It outlines a division’s long-term goals.
It is the primary responsibility of top managers.
It is used to identify an organization’s strengths and weaknesses.