Basic Organizational Design

21) ________ is the formal arrangement of jobs within an organization.

A) Departmentalization
B) Organizational design
C) Organizational structure
D) Work specialization
Answer: C

22) Organizational design is a process that involves decisions about ________.

A) work specialization and cost-leadership
B) chain of command and span of control
C) centralization and differentiation
D) departmentalization and diversification
Answer: B

23) The process of dividing work activities into separate job tasks is known as ________.
A) work specialization
B) differentiation
C) chain of command
D) span of control
Answer: A

24) Which of the following statements accurately defines work specialization?

A) It is the basis of grouping jobs together.
B) Individual employees specialize in doing part of an activity rather than the entire activity.
C) It is the line of authority extending from upper organizational levels to the lower levels.
D) It clarifies who reports to whom.
Answer: B

25) The process of grouping jobs together is known as ________.

A) departmentalization
B) centralization
C) formalization
D) decentralization
Answer: A

26) In case of functional departmentalization, jobs are grouped according to ________.

A) tasks
B) territories
C) product lines
D) customer flow
Answer: A
Classification: Conceptual

27) Departmentalization based on ________ groups jobs on the basis of territory or physical
location.
A) customer
B) product
C) geography
D) process
Answer: C

28) ________ departmentalization is based on the product or customer flow through the
organization.
A) Product
B) Functional
C) Process
D) Customer
Answer: C

29) What kind of departmentalization would be in place in a government organization where

different public service responsibilities are divided into activities for employees, children, and
the disabled?
A) product departmentalization
B) geographic departmentalization
C) process departmentalization
D) customer departmentalization
Answer: D

30) A disadvantage of ________ departmentalization is poor communication across the different

groups.
A) geographic
B) functional
C) process
D) customer
Answer: B

31) Work teams composed of individuals from various functional specialties are known as
________ teams.
A) cross-control
B) cross-training
C) cross-functional
D) cross-command
Answer: C

32) The line of authority that extends from upper organizational levels to lower levels, clarifying
who reports to whom, is known as the ________.
A) employee power distance
B) unity of command
C) span of control
D) chain of command
Answer: D
33) ________ refers to the rights inherent in a managerial position to tell people what to do and
to expect them to do it.
A) Responsibility
B) Liability
C) Bureaucracy
D) Authority
Answer: D

34) ________ is the obligation or expectation to perform a duty.

A) Responsibility
B) Authority
C) Ascendancy
D) Preponderance
Answer: A

35) Which one of Fayol's 14 principles of management states that a person should report to only
one manager?
A) unity of direction
B) unity of command
C) division of work
D) division of authority
Answer: B

36) According to the traditional view, managers could not and should not directly supervise
more than ________ subordinates.
A) nineteen or twenty
B) five or six
C) ten or eleven
D) fifteen or sixteen
Answer: B

37) The ________ determines the number of levels and managers in an organization.
A) delegation of authority
B) unity of command
C) chain of command
D) span of control
Answer: D

38) All other things being equal, the wider or larger the span, the more ________ an organization
is.
A) ambitious
B) rigid
C) mechanistic
D) efficient
Answer: D
39) ________ is the degree to which decision making takes place at upper levels of the
organization.
A) Centralization
B) Decentralization
C) Formalization
D) Functionalization
Answer: A

40) If top managers make key decisions with little input from below, then the organization is
________.
A) not mechanistic
B) more decentralized
C) not formalized
D) more centralized
Answer: D

41) A company is planning to revise its organizational structure and one of the managers,
Anderson Cooper, suggests increasing employee empowerment by giving them more decision-
making authority. Which of the following, if true, would support Cooper's stand?
A) The firm's employees are reluctant to disrupt the status quo and are apprehensive about any
change in responsibility.
B) The firm's employees are used to an authoritative structure and clearly defined job-roles.
C) The company's frontline workers have first-hand knowledge of what can and cannot be done.
D) The company is trying to recover from an economic downturn that caused significant losses
which necessitated downsizing.
Answer: C

42) Which of the following factors calls for a more centralized organizational structure?
A) when the decisions to be taken are significant
B) when the company is geographically dispersed
C) when the organization is facing a crisis
D) when the environment is complex
Answer: C

43) Which of the following factors would require a more decentralized organizational structure?
A) when the lower-level managers want a voice in decisions
B) when the lower level managers are not capable of making decisions
C) when the decisions to be made are not significant
D) when the company is large
Answer: A

44) As organizations become more flexible and responsive to environmental trends, there is a
distinct shift toward ________ decision making.
A) centralized
B) decentralized
C) concentrated
D) amalgamated
Answer: B

45) ________ refers to how standardized an organization's jobs are and the extent to which
employee behavior is guided by rules and procedures.
A) Specialization
B) Centralization
C) Decentralization
D) Formalization
Answer: D

46) In highly ________ organizations, there are explicit job descriptions, numerous
organizational rules, and clearly defined procedures covering work processes.
A) formalized
B) decentralized
C) leveraged
D) capitalized
Answer: A

47) A(n) ________ organization is highly specialized and rigidly departmentalized.

A) organic
B) fundamental
C) learning
D) mechanistic
Answer: D

48) A(n) ________ organization is highly formalized and centralized.

A) organic
B) mechanistic
C) rational
D) intuitive
Answer: B

49) Which of the following is a characteristic of a mechanistic organization?

A) cross functional teams
B) free flow of information
C) wide spans of control
D) clear chain of command
Answer: D

50) A(n) ________ organization is highly adaptive, loose, and flexible.

A) organic
B) centralized
C) vertical
D) mechanistic
Answer: A

51) GlaxoSmithKline would become more ________ if it starts allowing its lab scientists to set
the priorities and allocate the resources.
A) bureaucratic
B) mechanistic
C) diversified
D) organic
Answer: D

52) Which of the following is a characteristic of an organic organization?

A) high specialization
B) cross-functional teams
C) rigid departmentalization
D) narrow span of controls
Answer: B

53) Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. As PAOC has
grown, the company has gained a highly trained group of managers and analysts at the corporate
headquarters. This group is highly adaptive in its structure. Members of this group do not have
standardized jobs, but are empowered to handle diverse job activities and problems. PAOC
seems to have a(n) ________ structure.
A) mechanistic
B) divisional
C) functional
D) organic
Answer: D

54) What are the four contingency variables that an organization's structure depends on?
A) strategy, size, technology, and equity
B) management, technology, equity, and degree of environmental uncertainty
C) management, funding, technology, and degree of environmental uncertainty
D) strategy, size, technology, and environmental uncertainty
Answer: D

55) Large organizations tend to have more ________ than smaller organizations.
A) specialization
B) departmentalization
C) centralization
D) rules and regulations
Answer: A

56) Large organizations are more ________.

A) mechanistic
B) organic
C) disorganized
D) decentralized
Answer: A

57) Joan Woodward divided firms into three distinct technologies that had increasing levels of
complexity and sophistication: unit production, mass production, and ________.
A) continuous production
B) repetitive flow production
C) series production
D) process production
Answer: D

58) ________ is a type of technology that centers on small-batch production.

A) Unit production
B) Mass production
C) Process production
D) Flow production
Answer: A

59) ________ is a type of technology that centers on large-batch production and requires
moderate levels of complexity and sophistication.
A) Unit production
B) Mass production
C) Process production
D) Service production
Answer: B

60) In Joan Woodward's study of the relationship between technology and structure, the structure
that was the most technically complex was ________.
A) unit production
B) mass production
C) process production
D) technological production
Answer: C

61) Low vertical differentiation, low horizontal differentiation, and low formalization are
characteristics of an organization that carries out ________.
A) unit production
B) mass production
C) process production
D) flow production
Answer: A

62) Moderate vertical differentiation, high horizontal differentiation, and high formalization are
characteristics of an organization that indulges in ________.
A) small-batch production
B) mass production
C) unit production
D) process production
Answer: B

63) High vertical differentiation, low horizontal differentiation, and low formalization are
characteristics of an organization that indulges in ________.
A) mass production
B) serial production
C) process production
D) unit production
Answer: C

64) According to Woodward's studies, what type of production technology is best suited for a
mechanistic structure?
A) unit
B) process
C) product
D) mass
Answer: D

65) In stable and simple environments, ________ .

A) organic designs are most effective
B) mechanistic designs are most effective
C) low formalization is necessary
D) decentralization is necessary
Answer: B

66) The greater the environmental uncertainty, the more an organization needs to become
________.
A) organic
B) mechanistic
C) specialized
D) departmentalized
Answer: A

67) Worldwide economic downturn, global competition, accelerated product innovation by

competitors, and increased demands from customers for high quality and faster deliveries
encourage organizations to become more ________.
A) organic
B) mechanistic
C) centralized
D) formalized
Answer: A

68) What are the different structures that traditional organizations can have?
A) simple, functional, and corporate structures
B) simple, functional, and business unit structures
C) functional, strategic, and business unit structures
D) simple, functional, and divisional structures
Answer: D

69) A company with low departmentalization, wide spans of control, centralized authority, and
little formalization possesses a ________ structure.
A) simple
B) functional
C) divisional
D) matrix
Answer: A

70) As the number of employees in an organization grows, structure tends to become more
________.
A) specialized
B) informal
C) centralized
D) relaxed
Answer: A

71) Which of the following is a strength of simple structures?

A) Employees are grouped with others who have similar tasks.
B) It focuses on results.
C) It is inexpensive to maintain.
D) It remains appropriate even as the organization changes as it grows.
Answer: C

72) Which of the following is a weakness of the simple structure?

A) Duplication of activities and resources increases costs and reduces efficiency.
B) Specialists become insulated and have little understanding of what other units are doing.
C) Pursuit of functional goals causes managers to lose sight of what is best for the overall
organization.
D) It relies too much on one person which is very risky.
Answer: D

73) Which of the following traditional organizational designs focuses on results by holding
division managers responsible for what happens to their products and services?
A) simple structure
B) functional structure
C) divisional structure
D) matrix structure
Answer: C

74) In which of the following traditional organizational designs, duplication of activities and
resources leads to increase in costs and reduced efficiency?
A) divisional structure
B) team structure
C) matrix structure
D) project structure
Answer: A

75) A ________ is an organizational design that groups similar or related occupational

specialties together.
A) matrix structure
B) functional structure
C) divisional structure
D) simple structure
Answer: B

76) The ________ is an organizational structure made up of separate business units with each
unit having limited autonomy.
A) bureaucratic structure
B) simple structure
C) functional structure
D) divisional structure
Answer: D

77) In a ________ structure the parent corporation typically acts as an external overseer to
coordinate and control the various divisions and provide financial,
legal, or other such support services.
A) divisional
B) simple
C) functional
D) matrix
Answer: A
 Managing Teams

23) Which of the following is an example of 27) The ________ stage in the group
a formal group? development process is complete when
A) people who assemble in the company members begin to think of themselves as
library to read part of a group.
B) a group of employees attending a A) forming
colleague's wedding B) storming
C) a functional department in an C) norming
organization D) performing
D) a group of employees who meet after Answer: A
work to play basketball
Answer: C 28) During the ________ stage of the group
development process, a relatively clear
24) Which of the following refers to hierarchy of leadership and agreement on
independent formal groups whose members, the group's direction emerge.
in addition to their regular jobs, take on A) forming
traditional managerial responsibilities, such B) storming
as hiring, planning and scheduling, and C) norming
evaluating performance? D) performing
A) command groups Answer: B
B) task groups
C) self-managed teams 29) The ________ stage of the group
D) cross-functional teams development process is one in which close
Answer: C relationships develop and the group
becomes cohesive.
25) Groups that are determined by the A) norming
organization chart and composed of B) forming
individuals who report directly to a given C) storming
manager are called ________. D) performing
A) command groups Answer: A
B) task groups
C) cross-functional teams 30) The ________ stage of group
D) self-managed teams development is complete when the group
Answer: A structure solidifies and the group has
assimilated a common set of expectations of
26) Which of the following stages in group what defines correct member behavior.
development involves defining the group's A) storming
structure and leadership? B) forming
A) norming C) performing
B) storming D) norming
C) performing Answer: D
D) forming
Answer: D 31) In which stage of group development
does the group focus its attention on
wrapping up activities instead of task A) Being part of a group has the ability to
performance? increase an individual's antisocial actions.
A) storming B) The most widespread norms are those
B) adjourning related to dress codes.
C) forming C) Groups become dysfunctional when they
D) norming maintain strict norms.
Answer: B D) Norms do not influence employees'
performance.
32) Which of the following is considered to Answer: A
be the last stage of group development for
permanent work groups? 37) Asch's experiment, which used lines of
A) performing varying lengths to test group behavior, has
B) norming shown the existence of ________.
C) storming A) status systems
D) adjourning B) workplace conformity
Answer: A C) social loafing
D) role conflicts
33) Which of the following traits is Answer: B
negatively related to group productivity and
morale? 38) Which of the following refers to a
A) unconventionality prestige grading, position, or rank within a
B) self-reliance group?
C) independence A) role
D) sociability B) status
Answer: A C) ownership
D) membership
34) Behavior patterns expected of someone Answer: B
occupying a given position in a social unit is
called a ________. 39) Which of the following is an accurate
A) role statement regarding status systems?
B) status A) Anything can have status value if others
C) profile in the group evaluate it that way.
D) persona B) Status is a weak employee motivator
Answer: A even though it has behavioral consequences.
C) Status can only be formally conferred on
35) The acceptable standards or expectations individuals.
that are shared by a group's members are D) Status systems are independent of aspects
referred to as ________. such as prestige and grading.
A) affiliations Answer: A
B) norms
C) criteria
D) morals 40) Age, skill, and experience are examples
Answer: B of ________.
A) formal status categories
36) Which of the following is a negative B) informal status categories
aspect of group norms? C) reserved status categories
D) external status categories D) form homogeneous groups to increase
Answer: B group cohesiveness
Answer: A
41) ________ occurs when a supervisor
earns less than his or her subordinates. 46) Which of the following statements is
A) Job enrichment true about group decision making?
B) Groupthink A) It generates more complete information
C) Role ambiguity and knowledge.
D) Status incongruence B) It takes lesser time to reach a solution
Answer: D than it would an individual.
C) It prevents any one minority from
42) In comparison to large groups, small dominating or influencing the final decision.
groups ________. D) It is most suitable for matters that need to
A) have shorter group tenure be critically evaluated.
B) are faster at completing tasks Answer: A
C) have longer norming processes
D) are better at obtaining diverse input 47) Which of the following is true about
Answer: B group decision making?
A) Groups tend to foster equal participation
43) Large groups consistently get better in decision making.
results than smaller ones, when the group is B) The pressure to conform is low when
involved in ________. working in groups.
A) groupthink C) Groups take more time to arrive at a
B) routine tasks decision.
C) problem solving D) Groups usually make decisions based on
D) long-term projects incomplete information.
Answer: C Answer: C

44) Individuals have the tendency to expend
less effort when working collectively than
when working individually. Which of the
following concepts relates most closely to
this behavior?
A) social loafing
B) role conflict
C) role ambiguity
D) groupthink
Answer: A
45) Which of the following suggestions will
help reduce the effect of social loafing in
groups?
A) clearly identify individual responsibilities
B) provide group rewards instead of
individual rewards
C) increase the overall size of the group
48) Which of the following is true about the
effectiveness of individual decision making
over group decision making?
A) Individual decisions tend to be more
accurate.
B) Individual decisions are better when
dealing with complex issues.
C) Individuals tend to be more creative than
groups.
D) Individual decisions are made faster than
group decisions
Answer: D
49) The ________ view of conflict
management argues that conflicts must be
avoided as it indicates a problem within the
group.
A) human relations
B) traditional Answer: B
C) interactionist
D) functional 55) A low-to-moderate level of task conflict
Answer: B consistently has a positive effect on group
performance. What is the reason for this?
50) The ________ of conflict management A) It stimulates discussion of ideas that help
argues that some conflict is absolutely groups be more innovative.
necessary for effective organizational B) It helps the organization identify
performance. employee skills gaps.
A) traditional view C) It helps groups to alter the nature of the
B) conservative view work according to the individual needs of
C) human relations view team members.
D) interactionist view D) It helps group members identify their
Answer: D individual strengths and weaknesses.
Answer: A
51) The type of conflicts that support group
goals and improve performance are called 56) In which of the following conflict
________. resolution techniques are conflicts resolved
A) planned conflicts by seeking an advantageous solution for all
B) strategic conflicts the parties involved?
C) natural conflicts A) collaborating
D) functional conflicts B) compromising
Answer: D C) forcing
D) accommodating
52) ________ conflict relates to the content Answer: A
and goals of the work.
A) Task 57) Conflicts can be resolved by
B) Process withdrawing from them or suppressing
C) Relationship them. This conflict management technique is
D) Network known as ________.
Answer: A A) compromising
B) forcing
53) Which of the following types of conflict C) accommodating
is based on how the work gets done? D) avoiding
A) process conflict Answer: D
B) relationship conflict
C) task conflict 58) Research evidence suggests that teams
D) role conflict typically outperform individuals when
Answer: A ________.
A) one or more members are allowed to
54) Which of the following types of conflict dominate the other team members
is most likely to be dysfunctional? B) projects are short-term and need quick
A) task conflict solutions
B) relationship conflict C) tasks require multiple skills, judgment,
C) process conflict and experience
D) procedural conflict D) tasks are simple and do not involve
critical thinking Answer: B
Answer: C
63) ________ are teams from the same
59) ________ interact primarily to share department or functional area involved in
information and to make decisions to help efforts to improve work activities, though
each member do his or her job more they are rarely given the authority to
efficiently and effectively. implement any of their suggested actions.
A) Informal groups A) Self-managed teams
B) Work groups B) Problem-solving teams
C) Work teams C) Virtual teams
D) Self-managed teams D) Cross-functional teams
Answer: B Answer: B

60) A work group ________. 64) An organization brings together

A) encourages open-ended discussions and members from various departments such as
active problem-solving meetings marketing, accounting, human resources,
B) works intensely on a specific goal using and finance to form a team. This is an
their positive synergy example of a ________ team.
C) measures performance directly by A) cross-functional
assessing collective work outputs B) temporary
D) has no need or opportunity to engage in C) specific
collective work that requires joint effort D) functional
Answer: D Answer: A
61) Identify the key difference between
work teams and work groups. 65) Leadership is very important to effective
A) Leadership is shared in work teams teams. In most cases, effective team leaders
whereas it rests on a particular individual in act as ________.
work groups. A) autocrats
B) Work groups have their own specific B) regulators
purpose, while the purpose of a work team is C) controllers
the same as that of the organizations. D) facilitators
C) In a work group, performance is Answer: D
measured directly, while in a work team it is
measured indirectly. 66) An incentive system which
D) In a work team, work is decided upon by appropriately recognizes team activities is
the group leader, whereas in the work group an example of which of the following
it is decided upon by group members. characteristics of effective teams?
Answer: A A) internal support
B) unified commitment
62) A work team ________. C) negotiating skills
A) focuses on efficiency rather than D) job design
collaboration Answer: A
B) has shared leadership roles
C) measures performance based on its 67) Which of the following is a drawback of
influence on others global teams?
D) cannot be quickly refocused or disbanded A) They generate only a small pool of ideas
when faced with problems.
B) They do not foster the appreciation of
multiple perspectives.
C) They are characterized by greater
potential for stereotyping.
D) They are highly susceptible to
groupthink.
Answer: C
68) Which of the following is a benefit of
global teams?
A) Communication problems are less likely
in global teams.
B) Global teams usually have a greater
diversity of ideas.
C) There is a greater trust among team
members.
D) Stress and tension are uncommon in
global teams.
Answer: B
69) Research on conformity suggests that
________.
A) conformity is a culture-bound behavior
B) conformity tends to be higher in
individualistic cultures
C) conformity is a major problem in global
teams
D) conformity is higher in larger
organizations
Answer: A
70) Which of the following countries is most
likely to assign status based on
accomplishments rather than on titles and
family history?
A) China
B) Australia
C) Brazil
D) India
Answer: B
71) Which of the following is true about
social loafing?
A) It is a common phenomenon in
collectivist cultures.
B) It is common in cultures that are
dominated by self-interest.
C) It is viewed as a positive characteristic in
some cultures.
D) It rarely occurs in Western cultures.
Answer: B
72) A social network structure refers to
________.
A) the informal connections among
individuals within groups
B) the formal norms and rules of a group
that members must abide by
C) the extent of diversity in a formal group
D) the varying skills and knowledge that the
members of a group posses
Answer: A
 Managers and Communication
23) For communication to be successful,
meaning must be imparted and ________.
A) received by the other person
B) force action from the receiver
C) feedback must be established
D) understood by the receiver
Answer: D
24) ________ consists of all the patterns,
networks, and systems of communication
within an organization.
A) The grapevine
B) Interpersonal communication
C) Organizational communication
D) Formal communication
Answer: C
25) Alec is hired as a senior analyst at Tech
Research Institute and is assigned to a
project with four other researchers. He soon
realizes that two of his team mates do not
see eye-to-eye on many issues. Far from
being solved, the situation escalates over the
next couple of months. This bothers Alec a
great deal because he is expected to
coordinate his work with them. He decides
to speak to his manager about the problem
and seek his advise. In this example,
communication is being used ________.
A) informally
B) to control
C) to motivate
D) to inform
Answer: B
26) When a communication requires
employees to follow their job description, or
to comply with company policies,
communication is being used to ________.
A) control
B) motivate
C) provide a release for emotional
expression
D) persuade
Answer: A
27) In which of the following cases is
communication used to control employee
behavior?
A) Sandy tells Mitch that she's happy with
the progress he's making.
B) Glenn lets Ann know that the deadline
for her project has been postponed.
C) Jan informs Sara that she must follow the
dress code at work.
D) Chris gives Jason tips on how to improve
his performance.
Answer: C
28) George prepares a memorandum
explaining the objectives of a newly created
work team that he is expected to manage,
and makes sure it reaches each team
member. He is involved in ________.
A) deciphering the message
B) organizational communication
C) lateral communication
D) decoding the message
Answer: B
29) Pat manages the customer care
department of her firm. She is very happy
with her team of 15 customer care
executives who've all been consistently
performing well. Customer feedback was
impressive and Pat is planning to give them
good bonuses this time around. As a
manager, Pat believes it is important to let
your subordinates know when you are happy
with their work. She does so, and also calls a
meeting to discuss what they can do to
improve further. Pat is using communication
for ________.
A) decision-making
B) negotiation
C) motivation
D) expressing emotion
Answer: C
30) During the communication process, the Answer: C
message is converted to a symbolic form.
This process is called ________. 35) Adam has to tell the members of his
A) decoding department that the office timings have
B) encoding changed from flexible timings to a strict
C) deciphering nine-to-five day. He calls a meeting to
D) expanding explain the change. Participants begin
Answer: B arguing and asking multiple questions about
the new timing policy. The next day, Adam
31) Disturbances that interfere with the realizes that most people still do not have a
transmission, receipt, or feedback of a clear idea about the change, as a result of the
message are called ________. confusion at the meeting. Which of the
A) screens following explains why the message was not
B) filters understood?
C) echoes A) The sender did not decode the message
D) noise appropriately.
Answer: D B) The recipients did not encode the
message correctly.
32) The process through which the symbols C) The noise in the process interfered with
of a message are translated by the receiver the transmission of the message.
into a form that he or she can understand is D) The channel was not appropriate for the
called ________. delivery of this message.
A) decoding Answer: C
B) encoding
C) reinstating 36) Complexity capacity refers to the degree
D) expanding to which the communication method
Answer: A ________.
A) offers a reasonable assurance of
33) The final link in the communication confidentiality
process is ________. B) makes a simple message seem more
A) encoding complex
B) decoding C) effectively processes complicated
C) receiving messages
D) feedback D) offers quick and accurate feedback
Answer: D Answer: C

34) Which of the following is true for the 37) Which of the following describes the
communication process? number of different messages that can be
A) The decoding process takes place within transmitted using a particular method of
the channel. communication?
B) Noise cannot affect the encoding of the A) complexity capacity
message. B) breadth potential
C) Encoding takes place before the message C) scanability
reaches the medium. D) encoding ease
D) The sender decodes the message and then Answer: B
transmits it.
38) Which of the following is an example of
noise?
A) sending unsolicited sales messages to
prospects
B) adding your contact information at the
end of an e-mail message
C) leaving a message on the answering
machine when you cannot reach someone
D) thinking about the party you attended last
night while sitting in a lecture
Answer: D
39) Laura sent a text message to Betty
telling her that she would come by to pick
her up after work so they could go shopping.
Betty, however, made other plans for the
evening thinking Laura was talking about
going shopping the next day. Which of the
following best explains what went wrong
with the communication?
A) Laura used a wrong channel of
communication.
B) Scanability of the message was poor.
C) Betty decoded the message incorrectly.
D) The complexity capacity of text
messaging is poor.
Answer: C
40) Which of the following attributes of a
communication method will be the most
important for a scientist who has to send
large amounts of data to a colleague?
A) complexity capacity
B) feedback
C) formality
D) interpersonal warmth
Answer: A
41) When a sender evaluates a
communication method to judge scanability,
he is checking if ________.
A) the method can easily transmit a large
number of messages
B) the method allows recipients to process
complex messages effectively
C) the method adequately conveys personal
warmth
D) the recipient can easily browse the
message for relevant information
Answer: D
42) CISCO's Unified Personal
Communicator allows fast and easy access
to voice, video, instant messaging, web
conferencing, voicemail, and presence
capabilities through a single, multimedia
interface on your PC or Mac. Which of the
following aspects of communication
problems does this personal communicator
address?
A) security concerns arising from the use of
the Internet
B) time-space constraint
C) decoding errors
D) encoding errors
Answer: B
43) Which of the following is true of
nonverbal communication?
A) It is synonymous with body language.
B) It carries greater impact than verbal
communication.
C) It is absent in spoken communication.
D) It is involuntary; it cannot be used
deliberately.
Answer: B
44) Which of the following methods of
communication should be used when the
sender requires quick and accurate
feedback?
A) publications
B) face-to-face
C) postal mail
D) fax
Answer: B
45) Which of the following methods of
communication offers high scanability?
A) publications
B) face-to-face communication
C) meetings
D) voice mail
Answer: A
46) All of the following are barriers to
effective interpersonal communication,
EXCEPT ________.
A) filtering
B) selective perception
C) feedback
D) defensiveness
Answer: C
47) Sarah needs funding to research the
efficacy of a certain drug for the treatment
of cancer. Though her initial trials have been
inconclusive, Sarah is sure that the drug will
prove to be effective. However, the
organizations she plans to approach for
funding will not be very impressed with the
results of the previous trials and may
withhold funding. Sarah has to structure her
proposal in such a way that she emphasizes
the positives about the drug and minimizes
the negative information. Which of the
following best describes Sarah's technique
of writing her proposal?
A) diagonal communication
B) filtering
C) defensiveness
D) jargon
Answer: B
48) ________ is the deliberate manipulation
of information to make it appear more
favorable to the receiver.
A) Lateral communication
B) Encoding
C) Diagonal communication
D) Filtering
Answer: D
49) When a person tells his or her manager
what the manager wants to hear, which of
the following barriers to effective
interpersonal communication is the person
using?
A) filtering
B) selective perception
C) feedback
D) defensiveness
Answer: A
50) Which of the following is true of
filtering?
A) Filtering aids effective communication
by making a message more favorable to a
receiver.
B) The more vertical levels in an
organization, the more opportunities there
are for filtering.
C) Filtering occurs at the individual level;
the organization cannot encourage or
discourage it.
D) The use of e-mail increases filtering
because communication is more direct.
Answer: B
51) A(n) ________ occurs when the amount
of data provided exceeds the recipient's
processing capacity.
A) perceptual barrier
B) information overload
C) conceptual block
D) physical barrier
Answer: B
52) Jargon is ________.
A) the capacity of a communication method
to process complex messages
B) a technique for deliberate manipulation
of information to make it appear more
favorable to the receiver
C) specialized terminology that members of
a group use to communicate among
themselves
D) a technique that increases the breadth
potential of a communication method
Answer: C A) passive hearing
B) lateral communication
53) Which of the following is a way for C) active listening
managers to overcome the barriers to D) decoding
communication? Answer: C
A) feedback
B) decoding 58) When a manager asks an employee to
C) encoding complete a task, he or she is using ________
D) filtering communication.
Answer: A A) upward
B) lateral
54) Which of the following is true for active C) informal
listeners? D) formal
A) They should avoid making eye contact Answer: D
and nodding as this will distract the speaker.
B) They should not interrupt the speaker, but 59) Organizational communication that is
should feel free to ask questions about the not defined by the organization's structural
topic. hierarchy is known as ________
C) They should listen for full meaning and communication.
avoid paraphrasing what the speaker is A) external
saying. B) passive
D) Developing empathy for the speaker is C) informal
not advised as it proves an emotional barrier D) controlled
to listening. Answer: C
Answer: B 60) The ________ communication system
within an organization permits employees to
55) Which of the following helps an satisfy their need for social interaction with
individual to understand the actual content their peers.
of a message? A) informal
A) antipathy B) upward
B) empathy C) formal
C) apathy D) downward
D) empowerment Answer: A
Answer: B
61) Downward communication is used
56) Listening is an active search for ________.
meaning, whereas ________ is passive. A) by employees to give managers progress
A) speaking reports
B) encoding B) to coordinate and evaluate employees
C) decoding C) between employees at the same
D) hearing organizational level
Answer: D D) between people of different departments
and organizational levels
57) Listening for full meaning without Answer: B
making premature judgments or
interpretations is called ________.
62) Jon is the manager of the Finance 66) Which of the following management
department. He has to inform the employees styles will most likely encourage upward
in the department about the introduction of a communication?
new analytical software and the resultant A) dictatorial
changes in procedures. Which of the B) paternalistic
following types of communication does he C) participative
use? D) authoritarian
A) upward Answer: C
B) downward
C) lateral 67) Which of the following is an example of
D) diagonal lateral communication?
Answer: B A) George informs his superior about the
progress of the new project.
63) ________ communication is B) Brian talks to his teammate about a
communication that flows from a manager change in project specifications.
to employees. C) Richard penalizes John for not following
A) Lateral the company dress code.
B) Upward D) Paul tells the CEO about the low morale
C) Downward in his department.
D) Horizontal Answer: B
Answer: C
68) Cross-functional teams rely heavily on
64) In an effort to improve communication ________ communication, which can be
within the Accounts department of a large problematic if their managers are not kept
organization, the department head puts a informed about the decisions.
suggestion box at the door and invites A) downward
employees to communicate their thoughts, B) upward
ideas, concerns, or grievances to the C) vertical
managers in the department. Which of the D) lateral
following methods of communication is he Answer: D
encouraging?
A) upward 69) When an organization has an interest in
B) diagonal increasing the efficiency and speed of
C) downward communication between managers at
D) lateral different levels and in different departments,
Answer: A then ________.
A) upward communication works best
65) ________ communication keeps B) diagonal communication should be used
managers aware of how employees feel C) lateral communication is ideal
about their jobs, their coworkers, and the D) upward communication works the fastest
organization in general. Answer: B
A) Downward
B) Horizontal 70) In the all-channel network,
C) Lateral communication flows ________.
D) Upward A) downward from a strong leader to his
Answer: D subordinates in the work group
B) in a parallel fashion until all of the C) both a formal and an informal
members of a work group have been communication method
informed D) a filter and a feedback mechanism for
C) freely among all members of a formal managers
work team Answer: D
D) among the managers of a functional area
of an organization 75) Because rumors that flow along the
Answer: C grapevine can never be eliminated entirely,
managers can minimize the negative
71) If a company is concerned with consequences of rumors by ________.
achieving high member satisfaction for all A) ignoring them completely
the participants in a network, which of the B) communicating openly and honestly with
following communication networks is best? employees
A) chain network C) encouraging an all-channel
B) horizontal network communication network
C) wheel network D) using filtering wherever possible
D) all-channel network Answer: B
Answer: D
76) Which of the following is true for
72) In the ________ communication organizational communication?
network, communication flows according to A) It uses formal but not informal
the formal organizational hierarchy, both communication techniques.
downward and upward. B) It includes informal communication via
A) chain the grapevine.
B) all-channel C) Information flows according to the
C) wheel organization's chain of command.
D) horizontal D) It does not include interpersonal
Answer: A communication.
Answer: B
73) In a ________ communication network,
all communication passes through a clearly 77) Over the years, managers at Wilson's
identifiable leader to the others in a team Retail have discovered that the sales staff in
and upward from team members to the the retail areas have the best insights into
leader. what customers want and how they shop.
A) wheel Wilson's uses these insights to design its
B) all-channel retail spaces and decide which products to
C) chain stock. To make the sharing of information
D) circular easier, Wilson's encourages an open
Answer: A communication network, where information
flows freely between and among staff and
74) An organization's grapevine works as managers. Which of the following
________. communication networks does Wilson's use?
A) a method for managers to communicate A) chain
official policy B) wheel
B) a method for management to control the C) all-channel
dissemination of information D) downward
Answer: C D) wi-fi hot spot
78) In order to increase face-to-face Answer: D
communication among employees, the
workplace design should ________. 82) Which of the following is a
A) maximize visibility and density disadvantage of using IT in organizational
B) maximize visibility and minimize density communication?
C) minimize visibility and density A) economic drawbacks
D) minimize visibility and maximize density B) geographic constraints
Answer: A C) psychological costs
D) time constraints
79) Selenius Inc. develops and tests software Answer: C
products. The work calls for a lot of
collaboration among employees, who 83) Though IT has improved organizational
frequently brainstorm and bounce ideas off communications in recent years, ________
each other. Which of the following remains a major concern.
workplace designs will best suit Selenius' A) timeliness
requirements? B) security
A) an open workplace C) cost
B) closed cubicles D) breadth potential
C) high partitions Answer: B
D) individual offices
Answer: A

80) SmallStuff Inc., is a start-up company.

Though small in size, it performs niche
services. Its CEO, Will McConnell, thinks
it's better to have open workplaces because
visibility increases accountability. Which of
the following facts, if true, would undermine
his strategy?
A) The company has high employee density.
B) Employees deal with proprietory
information and can function efficiently
without supervision.
C) The company is going through tough
economic conditions and must save money.
D) The company has an all-channel
communication network.
Answer: B

81) A(n) ________ is a location where

Internet users can gain wireless access to the
Internet.
A) extranet
B) LAN
C) intranet
 Understanding Individual Behavior
21) Individual behavior in organizations
inlcudes ________. 26) ________ is defined as the failure to
A) strategies, norms, and roles report to work.
B) attitudes, learning, and motivation A) Turnover
C) structure, culture, and team building B) Tardiness
D) policies and procedures C) Absenteeism
Answer: B D) Negligence
Answer: C
22) Which of the following is associated
with the study of individuals? 27) The three components that make up an
A) norms attitude are ________ components.
B) roles A) cognitive, affective, and behavioral
C) team building B) active, behavioral, and adjustable
D) perception C) emotional, creative, and environmental
Answer: D D) intentional, reactive, and adjustable
Answer: A
23) The study of group behavior includes
the study of ________. 28) The component of attitude that includes
A) perception, motivation, and learning beliefs and opinions is the ________
B) attitudes and personality component.
C) norms, roles, and leadership A) cognitive
D) organization structure, and culture B) behavioral
Answer: C C) affective
D) practical
24) Which of the following is true for Answer: A
organizational citizenship behavior (OCB)?
A) OCB is a performance measure of 29) Which component of attitude is reflected
efficiency. in the sentence "This is the best way to reach
B) The requirements of OCB are spelled out the place"?
in employee job profiles. A) cognitive
C) OCB studies the behavior leading to B) behavioral
permanent withdrawal from an organization. C) emotive
D) OCB is discretionary behavior which D) affective
promotes the effective functioning of the Answer: A
organization.
Answer: D 30) The ________ component of attitude is
based on emotions.
25) ________ is a performance measure of A) cognitive
both the efficiency and effectiveness of B) behavioral
employees. C) affective
A) Employee productivity D) practical
B) Organizational citizenship behavior Answer: C
C) Job satisfaction
D) Turnover 31) In the statement, "The highway is very
Answer: A busy at 5 P.M., and is scary to drive on, so
I'll wait until 7 P.M. to go home," the word Answer: A
"scary" represents which component of an
attitude? 36) The degree to which an employee
A) cognitive identifies with a particular organization and
B) behavioral its goals and wishes to maintain membership
C) practical in the organization is the employee's
D) affective ________.
Answer: D A) job involvement
B) organizational commitment
32) When someone chooses to act in a C) global commitment
certain way, she is demonstrating the D) organizational citizenship
________ component of her attitude. Answer: B
A) cognitive
B) behavioral 37) ________ is employees' general belief
C) affective that their organization values their
D) practices contribution and cares about their well-
Answer: B being.
A) Job involvement
33) In the statement, "The highway is very B) Organizational commitment
busy at 5 P.M. and is scary to drive on, so I'll C) Perceived organizational support
wait until 7 P.M. to go home," the phrase, "so D) Cognitive dissonance
I'll wait until 7 P.M. to go home," represents Answer: C
which component of an attitude?
A) cognitive 38) The cognitive dissonance theory
B) behavioral proposes that the intensity of the desire to
C) emotive reduce dissonance is determined by
D) affective ________.
Answer: B A) importance, influence, and rewards
B) economics, politics, and organizational
34) Which of the following is true for structure
satisfied employees with high organizational C) stability, position, and power
commitment? D) awareness, status, and punishments
A) lower rates of turnover and absenteeism Answer: A
B) higher rates of voluntary turnover
C) higher rates of cognitive dissonance 39) Jonathan is standing for election as the
D) significantly higher pay levels mayor of Willsburgh. Various pressure
Answer: A groups in the town are beginning to voice
their concerns to him, in the hope that he can
35) The degree to which an employee address them. The most vociferous among
identifies with his or her job or actively these groups is the environmentalists. They
participates in it refers to the employee's are campaigning to shut down a factory that
________. is causing the extinction of a rare breed of
A) job involvement spotted owls. Which of the following, if
B) organizational commitment true, is most likely to create cognitive
C) global commitment dissonance of Jonathan?
D) job satisfaction A) The decrease in the spotted owl
population is a nation-wide phenomena, not to the MBTI®?
a localized threat. A) Introverted types are practical and prefer
B) His main concern is to prevent the town's routine and order.
youngsters from migrating to the city, and B) Feeling types use reason and logic to
he will do whatever it takes to prevent this. handle problems.
C) Jonathan would like to preserve the C) Perceiving types are rigid and structured.
wildlife of the area, but the factory employs D) Judging types want control and prefer
one-fourth of the town's population. their world to be ordered.
D) Jonathan is a dedicated environmentalist Answer: D
with a history of voting for pro-green
causes. 44) If your boss could be described as
Answer: C flexible, adaptable, and tolerant, he or she
would probably score high on which of the
40) The regular use of ________ can alert following aspects of the MBTI®?
managers to potential problems and A) extraversion
employees' intentions early enough to do B) sensing
something about them. C) feeling
A) dissonance reduction D) perceiving
B) performance incentives Answer: D
C) employee benefit plans
D) attitude surveys 45) If you are a good planner and
Answer: D purposeful, you would probably score high
on the ________ trait of MBTI®.
41) In the Myers-Briggs Type Indicator A) extraversion
(MBTI), "sensing" personality types are B) perceiving
those who ________. C) introversion
A) like solving new problems and dislike D) judging
doing the same thing over and over again Answer: D
B) use reason and logic to handle problems
C) have a high need for closure and show 46) The Big Five Model of personality
patience with routine details includes ________.
D) are outgoing, social, and assertive A) intuition
Answer: C B) judgment
C) perception
42) As a manager, if you prefer to have a D) extraversion
harmonious work environment and dislike Answer: D
reprimanding your subordinates, you would
probably score high on the ________ aspect 47) In the Big Five Model of personality,
of the MBTI®. ________ refers to the degree to which
A) perception someone is good-natured, cooperative, and
B) thinking trusting.
C) intuition A) extraversion
D) feeling B) agreeableness
Answer: D C) conscientiousness
D) emotional stability
43) Which of the following is true according Answer: B

48) In the Big Five Model of personality,
conscientiousness refers to ________.
A) the degree to which someone is calm,
enthusiastic, and secure (positive) or tense,
nervous, depressed, and insecure (negative)
B) the degree to which someone is sociable,
talkative, assertive, and comfortable in
relationships with others.
C) the degree to which someone is reliable,
responsible, dependable, persistent, and
achievement oriented
D) the degree of influence the individual
believes he or she has over certain factors
Answer: C
49) According to the Big Five Model of
personality, a person who has a wide range
of interests and is imaginative, fascinated
with novelty, artistically sensitive, and
intellectual is described as ________.
A) conscientious
B) extraverted
C) emotionally stable
D) open to experience
Answer: D
50) If you believe that you control your own
destiny, which of the following personality
traits are you likely to possess?
A) external locus of control
B) risk aversion
C) high self-esteem
D) internal locus of control
Answer: D
51) According to research, employees who
have a high internal locus of control
________.
A) exhibit more satisfaction with their jobs
than externals
B) are more alienated from their work
setting than externals
C) are less involved in their jobs as
compared to externals
D) blame their bosses for poor performance
more often than externals
Answer: A
52) A person who believes that what
happens to him is due to luck or chance is
said to have a(n) ________.
A) internal locus of control
B) Machiavellian personality
C) external locus of control
D) self-monitoring personality
Answer: C
53) Anna has recently been promoted to the
managerial ranks which has increased her
interaction with the senior managers at her
company. She realizes that Peter, her
assistant manager, exhibits a distinct lack of
emotional involvement with his colleagues
and subordinates. His entire focus is on
achieving the goals he sets, no matter what
the course he has to take to get there. These
traits lead Anna to conclude that Peter
________.
A) is high on Machiavellianism
B) has low self-esteem
C) is high on self-monitoring
D) has high cognitive dissonance
Answer: A
54) Though clearly capable, Mary does not
seem very confident of herself. She is
always unsure of whether she can handle
assignments that are difficult and as a result
ends up choosing jobs that are fairly straight
forward and involve routine work. She is
also susceptible to evaluations from other
people. Mary seems to have ________.
A) high cognitive dissonance
B) a high Machiavellianism score
C) low self-monitoring
D) low self-esteem
Answer: D
55) Sarah, the floor supervisor, seems to be
a different person depending on whom she is
with and what the situation demands. She
has the ability to adjust her behavior as and
when required. This indicates that she
________.
A) has low self-esteem
B) is low on Machiavellianism
C) has a high risk appetite
D) is high in self-monitoring
Answer: D
56) Kevin is a whirlwind as research and
development supervisor. His colleagues are
surprised that even though he makes
decisions very quickly and always with less
information than others, his decisions are as
good as anybody else's. This information
implies that Kevin has ________.
A) an external locus of control
B) low Machiavellianism
C) high risk-taking ability
D) low cognitive dissonance
Answer: C
57) An individual who is high in ________
is pragmatic, maintains emotional distance,
and believes that ends can justify means.
A) self-esteem
B) Machiavellianism
C) self-monitoring
D) risk taking
Answer: B
58) Which of the following is true of a
person who believes that "the ends justify
the means"?
A) He is likely to be low on self-confidence.
B) He is likely to be high in
Machiavellianism.
C) He is likely to have an external locus of
control.
D) He is likely to be risk averse.
Answer: B
59) If you like yourself, then your
personality would be described as having
________.
A) an internal locus of control
B) a low Machiavellianism score
C) high self-esteem
D) an external locus of control
Answer: C
60) People with high self-esteem ________.
A) are more prone to conform to the beliefs
of those they respect
B) are more likely to seek approval from
others
C) are more likely to take unpopular stands
D) are more susceptible to external influence
Answer: C
61) ________ is a personality trait that
measures an individual's ability to adjust his
or her behavior according to external
situational factors.
A) Machiavellianism
B) Self-esteem
C) Self-monitoring
D) Locus of control
Answer: C
62) A person who can adapt and adjust
behavior to external factors has ________.
A) low self-esteem
B) an internal locus of control
C) high self-monitoring
D) high risk-taking ability
Answer: C
63) A manager makes decisions very
quickly and requires little information for
making the decisions. Which of the
following is a likely reason for this?
A) The manager has low self-esteem.
B) The manager has an external locus of
control.
C) The manager is high in emotional
stability.
D) The manager is high in risk-taking.
Answer: D
64) People who identify opportunities, show
initiative, take action, and persevere until
meaningful change occurs are said to have
_______ personalities.
A) proactive
B) self-aware
C) resilient
D) agreeable
Answer: A
65) Emotional intelligence has been shown
to be ________.
A) negatively related to job performance at
all levels
B) negatively related to job performance in
middle management only
C) positively related to job performance
only in government agencies
D) positively related to job performance at
all levels
Answer: D
66) The ability to sense how others are
feeling is known as ________.
A) emotional stability
B) empathy
C) resilience
D) self-awareness
Answer: B
67) Holland's theory proposes that
satisfaction is highest and turnover lowest
when ________.
A) the locus of control is external
B) an employee is social and realistic
C) personality and occupation are
compatible
D) an employee can adjust behavior to
external factors
Answer: C
68) What is a key point of Holland's theory?
A) There are no intrinsic differences in
personality among individuals.
B) All jobs are relatively the same, it is
personality types that differ.
C) People in job environments compatible
with their personality types should be more
satisfied.
D) Employee turnover is highest when
personality and occupation are compatible.
Answer: C
69) A test that Jake took at a career
counseling session indicated that he
preferred coordinated physical activity. He
also turned out to be stable and conforming
to expected standards. Which of the
following occupations is likely to be a good
match for Jake?
A) counselor
B) farmer
C) biologist
D) economist
Answer: B
70) When Darrin went to a career counselor,
Joanna, he took a test that would allow the
counselor to gain an insight into his
personality. After speaking to Darrin and
analyzing his answers in the test, Joanna
realized that he is curious by nature. He
preferred activities that involved
understanding and organizing, and that he is
basically analytical. Which of the following
occupations is a potentially good match for
him?
A) painter
B) farmer
C) social worker
D) news reporter
Answer: D
71) Bridget prefers rule-regulated, orderly,
and unambiguous activities. She doesn't
have a lot of imagination but could be
described as conforming and efficient.
Which of the following describes Bridget's
personality?
A) social
B) artistic
C) enterprising
D) conventional
Answer: D
 C) assumption of similarity
72) Andrew is social, friendly, and D) halo effect
understanding, and prefers activities that Answer: A
involve helping and developing others.
Which of the following occupations is a 77) ________ is the tendency for individuals
potentially good match for him? to attribute their own successes to internal
A) accountant factors such as ability or effort while putting
B) teacher the blame for personal failure on external
C) artist factors such as luck.
D) news reporter A) Assumed similarity
Answer: B B) Stereotyping
C) Fundamental attribution error
73) ________ is the process of organizing D) Self-serving bias
and interpreting sensory impressions to give Answer: D
meaning to the environment.
A) Attribution 78) In ________, the observer's perception
B) Selection of others is influenced more by the
C) Learning observer's own characteristics than by those
D) Perception of the person observed.
Answer: D A) stereotyping
B) self-serving bias
74) ________ theory explains how we judge C) assumed similarity
people differently depending on what D) the halo effect
meaning we ascribe to a given behavior. Answer: C
A) Perception
B) Behavior 79) When people judge someone on the
C) Attribution basis of the perception of a group they are a
D) Social contrast part of, they are using the shortcut called
Answer: C ________.
A) stereotyping
75) If everyone who's faced with a similar B) self-serving bias
situation responds in the same way, we can C) assumed similarity
say the behavior shows ________. D) the halo effect
A) reliability Answer: A
B) distinctiveness
C) consensus 80) By using ________, we form a general
D) internal attribution impression about a person based on only a
Answer: C single characteristic, such as intelligence or
appearance.
76) Underestimating the influence of A) stereotyping
external factors and overestimating the B) selectivity
influence of internal factors when making C) the halo effect
judgments about others is known as the D) assumed similarity
________. Answer: C
A) fundamental attribution error
B) self-serving bias 81) ________ behavior is voluntary or
learned behavior. graduated steps, he is using ________.
A) Reflexive A) retention processes
B) Dissonant B) motor reproduction processes
C) Operant C) attentional processes
D) Reactive D) shaping processes
Answer: C Answer: D

82) The influence of models depends on 85) If an employee does not exhibit a
how well an individual remembers the desired behavior, a manager might use
model's behavior. This refers to the ________.
individual's ________. A) negative reinforcement to increase the
A) retention process recurrence of the behavior
B) motor reproduction process B) shaping to guide the employee to learn
C) attentional process the desired behavior
D) reinforcement process C) positive reinforcement by reducing the
Answer: A threat of a punishment
D) reflexive behavior to encourage positive
83) After watching a behavior in a social results
learning situation, a person can learn by Answer: B
performing the behavior. This is known as
learning by ________. 86) Eliminating any reinforcement that's
A) retention maintaining an undesirable behavior is
B) motor reproduction called ________.
C) attention A) penalizing
D) reinforcement B) extinction
Answer: B C) punishment
84) When a manager molds an individual's D) extraction
behavior by guiding his or her learning in Answer: B
 Introduction to Controlling
22) ________ refers to the process of place
monitoring, comparing, and correcting work D) employee monitoring costs are part and
performance. parcel of doing business
A) Controlling Answer: C
B) Leading
C) Planning 27) The first step in the control process is
D) Organizing ________.
Answer: A A) setting the desired standards
B) measuring actual performance
23) Which of the following is the final step C) comparing performance against
in the management process? expectations
A) organizing D) enforcing managerial control
B) planning Answer: B
C) controlling
D) leading 28) Managers should use subjective
Answer: C measures when ________.
A) work activities cannot be expressed in
24) Which of the following corresponds to quantifiable terms
the controlling step in the management B) work activities are critical to the
process? organization
A) performance measurements C) organizational processes and activities
B) employee motivation are complex
C) strategy formulation D) immediate managerial action is required
D) organizational structuring Answer: A
Answer: A
29) Which of the following sources of
25) Which of the following observations is information for measuring performance has
true of organizational controlling? the disadvantage of being subject to personal
A) An effective control system facilitates biases, and is time consuming and
employee empowerment. obtrusive?
B) Forming an organizational structure is a A) oral reports
crucial control activity. B) personal observations
C) Human resource management is a subset C) statistical reports
of the controlling process. D) written reports
D) Organizational strategies are formed Answer: B
during the controlling stage.
Answer: A 30) Which of the following is one of the
main advantages of using statistical reports
26) The control process assumes that as the source of information?
________. A) Statistical reports can be used to obtain
A) employees require clear directions from firsthand knowledge.
management B) Unfiltered information can be obtained
B) employees are under-qualified and using statistical reports.
require training C) Statistical reports are effective for
C) performance standards are already in showing relationships.
D) Statistical reports allow verbal and non-
verbal feedback.
Answer: C
31) Which of the following sources usually
provides filtered information which cannot
be documented?
A) oral reports
B) personal observations
C) statistical reports
D) written reports
Answer: A
32) Which of the following sources provides
information which is comprehensive,
formal, and easy to file and retrieve?
A) oral reports
B) personal observations
C) statistical reports
D) written reports
Answer: D
33) The comparing step in the control
process determines ________.
A) a company's relative position in the
industry in terms of the standards used
B) a company's relative position in the
industry in terms of performance variances
C) the ideal standard to be used in
measuring organizational performance
D) the variation between actual performance
and the standard
Answer: D
34) ________ corrects the problem at once
to get performance back on track.
A) Basic corrective action
B) Immediate corrective action
C) Revision of standards
D) Revision of benchmarks
Answer: B
35) If a manager investigates how and why
performance has deviated beyond the
acceptable range of variation, and then
corrects the source of the deviation, she is
using ________.
A) bureaucratic control
B) immediate corrective action
C) basic corrective action
D) concurrent control
Answer: C
36) Managers could choose to do nothing
when ________.
A) an employee fails to attain the standard
because of internal problems
B) the difference between actual
performance and standard performance is
low and acceptable
C) performance standards are acceptable,
though the employees have not attained it
D) the variance observed from the expected
performance is caused due to unrealistic
standards
Answer: B
37) Which of the following refers to the
overall output of goods or services produced
divided by the inputs needed to generate that
output?
A) Yield
B) Demand function
C) Effectiveness
D) Productivity
Answer: D
38) ________ is measured by the costs of
acquiring and transforming organizational
resources into outputs.
A) Input
B) Quality
C) Effectiveness
D) Efficiency
Answer: A
39) Which of the following is considered the
easiest way to increase organizational
productivity?
A) increasing the price of outputs
B) increasing the amount of inputs
C) hiring more employees
D) decreasing the value of the products 44) Which of the following is considered the
Answer: A most desirable type of control to prevent
anticipated problems?
40) In order to increase the ratio of outputs A) feedforward control
to inputs, a manager would have to B) concurrent control
________. C) feedback control
A) decrease the selling price D) reactive control
B) increase productivity Answer: A
C) increase the quality of inputs
D) hire additional employees 45) The management control that takes place
Answer: B while a work activity is in progress is known
as ________.
41) Organizational ________ is a measure A) feedforward control
of how appropriate organizational goals are B) concurrent control
and how well an organization is achieving C) feedback control
those goals. D) reactive control
A) productivity Answer: B
B) effectiveness 46) Management by walking around is an
C) efficiency example of ________ control.
D) yield A) feedback
Answer: B B) concurrent
C) feedforward
42) Certain organizations conduct culture D) reactive
audits to find out which companies are the Answer: B
best to work for. What is the major benefit
associated with these rankings? 47) ________ is when a manager in the
A) The rankings indicate the effectiveness of work area interacts directly with employees
an organization's concurrent control. to maintain supervision.
B) The rankings indicate how well a A) Preventive maintenance
company performs in comparison to others. B) Management by walking around
C) These rankings are used by governments C) Reactive control
to make decisions on corporate grants. D) Feedforward control
D) These rankings affect the credit rating of Answer: B
concerned organizations.
Answer: B 48) The ________ ratios measure an
organization's ability to meet its current debt
43) An organization hires additional obligations.
personnel as soon as they get a major A) activity
contract. The organization is using B) liquidity
________ control. C) leverage
A) feedforward control D) profitability
B) concurrent control Answer: B
C) feedback control
D) management control 49) Which of the following ratios examines
Answer: A the organization's use of debt to finance its
assets and its ability to meet the interest
payments on the debt? C) fact
A) liquidity ratios D) a structure
B) leverage ratios Answer: B
C) profitability
D) activity ratios 55) Raw, unanalyzed facts are called
Answer: B ________.
A) data
50) ________ ratios measure how efficiently B) information
the firm is using its assets. C) database
A) Liquidity D) data center
B) Leverage Answer: A
C) Profitability
D) Activity 56) ________ is the search for the best
Answer: D practices among competitors or
noncompetitors that lead to their superior
51) Which of the following ratios measures performance.
how efficiently and effectively the firm is A) Factor analysis
using its assets to generate revenue? B) Total quality management
A) liquidity ratios C) Market positioning
B) leverage ratios D) Benchmarking
C) activity ratios Answer: D
D) profitability ratios
Answer: D 57) Control techniques can be quite different
for different countries. The differences are
52) The ________ approach to performance primarily in the ________.
measurement was introduced as a way to A) types of tasks that employees perform in
evaluate organizational performance from various countries
more than just the financial perspective. B) way employees respond to the controlling
A) market value measures
B) economic value C) strategic orientation of each technique
C) balanced scorecard D) measurement and corrective action steps
D) financial control of the control process
Answer: C Answer: D

53) Which of the following is a performance
measurement tool that looks at four areas
that contribute to a company's performance?
A) market value method
B) economic value method
C) balanced scorecard approach
D) information control approach
Answer: C
54) When data is analyzed and processed, it
becomes ________.
A) a systemB) information
58) Fraudulent filing of expense reports is
an example of ________.
A) employee theft
B) workplace piracy
C) workplace violence
D) privacy intrusion
Answer: A
59) Clinical psychologists suggest that
employee theft ________.
A) occurs primarily when there are poor
management-labor relations
B) is a symptom of poor planning and
management control
C) happens because people find ways to
rationalize this behavior as correct
D) reflects deep cultural problems in the
society
Answer: C
60) Factors that have been found to be
linked to workplace violence include
________.
A) too much caffeine
B) employee stress
C) poor employee diet
D) poor personal hygiene
Answer: B
61) Experts have described employee work
driven by TNC as a primary contributor to
workplace violence. TNC refers to
________.
A) time, numbers, and crises
B) time, number, and chaos
C) time, neglect, and crises
D) time, neglect, and chaos
Answer: A
62) Which of the following is an example of
a feedforward control measure used to
control possible workplace violence?
A) Clearly communicate the security
policies to employees.
B) Use corporate hotlines for reporting and
investigating incidences.
C) Review company policies and change, if
necessary.
D) Investigate incidences and take
appropriate action.
Answer: A
63) An organization communicates openly
to its employees about violent incidences in
the workplace and what's being done to
handle them. This is an example of a
________ control strategy.
A) feedback
B) proactive
C) concurrent
D) feedforward
Answer: A
64) The service profit chain is the service
sequence from employees to customers to
profit. According to this concept, the
company's strategy and service delivery
system determines ________.
A) the skill development of employees
B) how the firm performs in the short run
C) the employee satisfaction in the company
D) how employees service customers
Answer: D
65) Corporate governance ________.
A) refers to executive governance practices
in companies
B) is a system used to govern a corporation
so that the interests of corporate owners are
protected
C) is a term that refers to legal agreements
made between two or more partner firms
D) refers to the negative influence of the
corporate in society
Answer: B
66) Two areas in which corporate
governance is being reformed are the role of
boards of directors and ________.
A) employee stock options
B) financial reporting
C) executive compensation
D) top level management
Answer: B
67) The Sarbanes-Oxley Act called for
________.
A) increased pollution control measures
from the government
B) more disclosure and transparency of
corporate financial information
C) limited accountability of directors and
executives of corporates
D) more social contribution from companies
in the United States Answer: B