Chapter: 4 (Foundations of decision making)

36) Decision making begins with ________.

A) selecting alternatives
B) identifying decision criteria
C) identifying a problem
D) eliminating false alternatives

37) Which of the following defines a problem in the decision-making process?

A) a discrepancy between what exists and what the decision maker desires to exist
B) a discrepancy between the ideal and the practical
C) something that causes irritation
D) something that calls for attention

38) The decision-making process consists of a series of eight steps that identify a problem and work
toward ultimately ________.
A) determining if there is a solution to the problem
B) solving the problem
C) making a plan to solve the problem
D) breaking down the problem into a series of steps

39) To identify a problem, a manager ________.

A) compares one set of standards or goals to a second set of standards or goals
B) looks for unhappy customers
C) uses intuition to see that things don't look right
D) compares the current state of affairs with some standard or goal

40) A manager can faithfully execute the decision-making process, but still end up with nothing of
value if ________.
A) he fails to identify the correct problem
B) he fails to assign number values to different criteria
C) he solves the problem inefficiently
D) he fails to correctly identify the steps of the process

41) A manager is considering purchasing new computers for her department. The manager spends
time assessing the computers her department now has. Which stage of the decision-making process
is she going through?
A) identification of a problem
B) identification of decision criteria
C) development of alternatives
D) implementation of an alternative
42) A manager is determining what kind of new computers she should purchase for her
department. She has made a list of five different computer models for consideration. Which stage
of the decision-making process is this?
A) selection of an alternative
B) identification of decision criteria
C) development of alternatives
D) analysis of alternatives

43) After purchasing new computers for her department, a manager is now comparing the
performance of the new computers to the computers they replaced. Which stage of the decision-
making process is she carrying out?
A) analysis of alternatives
B) evaluation of decision effectiveness
C) selection of an alternative
D) implementation of an alternative

44) For a high-tech bicycle buyer, decision criteria would be determined by ________.
A) whatever most bike buyers recommend
B) expert ratings in bike magazines
C) technical specifications
D) personal preferences of the buyer

45) Which of the following is LEAST likely to be a decision criterion for a high-tech bicycle buyer who
cares primarily about performance?
A) warranty
B) gear mechanism
C) frame composition
D) brake assembly

46) Which of the following would be a fairly objective criterion by which a bicycle buyer could
assess different bike models?
A) handling
B) weight
C) quality of craftsmanship
D) style

47) A manager chooses to ignore a rigorous decision-making process and select TV monitor A over
monitor B because he "trusts" company A more than company B. If the decision he made was
rational, which of the following is true?
A) Monitor A is really the better choice.
B) The manager should have included "trust" as a criterion.
C) Monitor B is really the better choice.
 D) The manager must have made a mistake in calculating his weighted criteria.
48) In allocating weights to the decision criteria, which of the following is most helpful to
remember?
A) All weights must be the same.
B) The total of the weights must sum to 100.
C) The high score should be a 10, and no two criteria should be assigned the same weight.
D) Assign the most important criterion a score, and then assign weights against that standard.

49) What is a heuristic?

A) a complicated and systematic method of decision making
B) a purely intuitive method of decision making
C) a totally unreliable method of decision making
D) a shortcut or rule of thumb that is used for decision making

50) Because they are not systematic or comprehensive, using heuristics in place of an eight-step
decision-making process can lead to ________.
A) errors and biases
B) consistently better decisions
C) more imaginative decisions
D) decisions that more directly solve problems

51) Which of the following is NOT a reason why managers often resort to using heuristics?
A) They seem to eliminate complexity.
B) They seem to eliminate ambiguity.
C) They save time.
D) They thoroughly explore all alternatives.

52) A banker opts for short-term gain despite indications that his decision might not pay off in the
long run. Which error or bias is the banker guilty of?
A) overconfidence
B) immediate gratification
C) selective perception bias
D) representation

53) A scientist cites two studies that show a positive effect for her drug and ignores five other
studies that show a negative effect. Which error or bias is she committing?
A) hindsight
B) anchoring effect
C) confirmation bias
D) self-serving
54) One legislator sees decreased tax revenue as the key problem in the budget. A second legislator
sees increased spending as the problem. Each of these legislators has a(n) ________.
A) representation bias
B) self-serving bias
C) availability bias
D) framing bias

55) Which of the following is NOT a common decision-making error or bias?

A) sunk costs
B) randomness
C) forest for the trees
D) overconfidence bias

56) The three main models that managers use to make decisions are ________.
A) rational, bounded rational, and intuitive
B) rational, irrational, bounded rational
C) intuitive, unintuitive, rational
D) bounded rational, intuitive, systematic

57) It is assumed that a rational decision maker ________.

A) would never make a wrong choice
B) would be subjective and impractical
C) would face only difficult decisions
D) would be objective and logical

58) What does it mean for a decision maker to maximize value?

A) to make the decision to be as clear and logical as possible
B) to make the achievement of goals as likely as possible
C) to waste as little time and energy as possible
D) to make decision making as simple as possible

59) Maximizing value for an organization means making sure that ________.
A) the organization makes money
B) the best interests of the organization are addressed
C) the decision made is as rational as possible
D) the decision is as simple as possible

60) Which of the following is NOT assumed in a rational decision?

A) a clear and specific goal
B) a clear and unambiguous problem
C) many alternatives and consequences are known
D) value is maximized
61) It is assumed that in most cases, the decisions of all managers are limited by ________.
A) greed and short-sightedness
B) having too much information
C) not being able to analyze all information for all alternatives
D) not being able to act rationally or in the best interests of their organization

62) Which term best characterizes a decision that has bounded rationality?
A) virtually perfect
B) rigorous and comprehensive
C) not good enough
D) good enough

63) Software programs that use a series of questions to aid humans in decision making are called
________.
A) text reading software
B) expert systems
C) group systems
D) support software

64) Expert systems are primarily used to help what kinds of decision makers?
A) lower-level managers
B) top managers
C) senior managers
D) experts

65) Neural networks are able to outdo the performance of humans by ________.
A) analyzing symbols
B) handling up to three variables at once
C) handling hundreds of variables at once
D) reading facial expressions

66) Neural networks differ from expert systems in that they can ________.
A) draw conclusions from data
B) ask questions to the decision maker
C) perform sophisticated calculations
D) learn from experience

67) Neural networks outperfom expert systems in uncovering ________.

A) credit card fraud
B) false positives for pregnancy
C) potential credit card customers
D) credit problems in bank mortgages
68) Herbert Simon won the Nobel Prize in economics for his work in describing ________.
A) how people spend money
B) how most people are perfectly rational
C) how people make decisions
D) how people avoid decisions

69) Which of the following is the best definition for the word satisfice?
A) very satisfying
B) not sufficient
C) accepts a less than perfect solution
D) requires a perfect solution

70) Simon found that in making decisions, most people satisficed because they had limited ability to
________.
A) be truthful and honest in situations that deal with other people
B) think independently
C) deal with difficult situations
D) grasp present conditions and anticipate future conditions

71) A person who satisfices fails to ________.

A) maximize his or her decision
B) understand his or her position
C) accept the truth of a situation
D) make any kind of decision

72) Sticking to a decision despite evidence that it is a mistake is called ________.

A) escalation of commitment
B) escalation of rationality
C) satisficing commitment
D) error enhancement

73) Escalation of commitment can occur when people don't ________.

A) want to make a decision
B) want to admit that an earlier decision was flawed
C) accept current conditions
D) understand that conditions have changed

74) Which model of decision making takes advantage of unconscious reasoning?

A) rational
B) non-rational
C) intuitive
D) factual
75) Compared to fully rational decision making, what is a major advantage of intuitive decision
making?
A) total reliability
B) fully quantified
C) thoroughness
D) speed

76) How often do managers typically use intuitive decision making?

A) 100 percent of the time
B) almost never
C) almost all of the time
D) more than half of the time

77) Intuitive decision making can complement ________.

A) rational decision making only
B) bounded rationality only
C) both rationality and bounded rationality
D) neither rationality nor bounded rationality

78) Which of the following is NOT a way in which intuition guides people who are making decisions?
A) Intuition provides ethics and values guidelines.
B) Intuition provides a formal analysis method.
C) Intuition provides experiences to draw from.
D) Intuition draws on knowledge, skills, and training.

79) Emotions and feelings ________ decision making.

A) have no effect on
B) can improve
C) decrease performance in
D) are more important than facts and logic in

80) Structured problems are ________.

A) ambiguous
B) undefined and vague
C) clear and straightforward
D) incomplete

81) Unstructured problems are ________.

A) perfectly rational
B) clear and straightforward
C) situations in which all options are known
D) situations in which all options are not known
82) Which of the following is an example of a structured problem?
A) designing a new MP3 player
B) hiring a lawyer
C) deciding shipping options for a vacuum cleaner
D) drafting a quarterback for a pro football team

83) Which of the following is an example of an unstructured problem?

A) finding the list price of different copy machines
B) choosing the best wardrobe for an executive
C) comparing gas mileage for different car models
D) measuring pollution levels in a power plant

84) Structured problems typically have ________ while unstructured problems typically have
________.
A) only one solution; many solutions
B) many solutions; one solution
C) many solutions; fewer solutions
D) two solutions; three solutions

85) Programmed decisions work well for solving ________.

A) structured problems
B) unstructured problems
C) both structured and unstructured problems
D) poorly defined problems

86) Programmed decisions draw heavily on which of the following?

A) mistakes made in the past
B) past solutions that were successful
C) past solutions that were unsuccessful
D) innovative new solutions

87) Which of the following is NOT a type of programmed decision?

A) systematic procedure
B) policy
C) brainstorm
D) rule

88) Following the directions to put together an elliptical exercise machine is an example of which
way to solve a problem?
A) procedure
B) rule
C) general practice
D) policy
89) A football coach makes the decision to punt or not to punt on fourth down based on whether or
not he is past his own 50-yard line. Which decision-making method does the coach use?
A) a policy
B) a hunch
C) a procedure
D) a rule

90) Which pair or pairs of terms is true? (This question can have more than one correct answer)
A) structured problem, programmed decision
B) structured problem, structured decision
C) unstructured problem, programmed decision
D) unstructured problem, nonprogrammed decision

91) A judge consults guidelines before handing down an award for damages in a legal case. What
kind of decision making is she doing?
A) following a policy
B) following a rule
C) programmed
D) following a procedure

92) Top managers in an organization tend to ________.

A) make programmed decisions
B) solve structured problems
C) make nonprogrammed decisions
D) solve well-defined problems

93) Which three conditions do decision makers face?

A) certainty, risk, uncertainty
B) certainty, uncertainty, confidence
C) risk, high risk, low risk
D) certainty, risk, high risk

94) In a condition of certainty, ________.

A) most outcomes are known
B) the decision is already made
C) all outcomes of all alternatives are known
D) some alternatives are not known

95) If a car buyer knows the inventory dealer price of the same car at different dealerships, he or
she is operating under what type of decision-making condition?
A) risk
B) uncertainty
C) certainty
D) factual
96) A retail clothing store manager who estimates how much to order for the current spring season
based on last spring's outcomes is operating under what kind of decision-making condition?
A) seasonal
B) risk
C) uncertainty
D) certainty

97) ________ is a situation in which a decision maker has only incomplete information about
outcomes and does not have ability to reasonably estimate outcomes that are not known.
A) Certainty
B) Risk
C) Uncertainty
D) High certainty

98) A low-level manager is most likely to solve problems under which condition?
A) certainty
B) low risk
C) uncertainty
D) low certainty

99) A top manager is most likely to solve problems under which condition?
A) certainty
B) risk
C) uncertainty
D) high certainty

100) A manager has a choice of three investment funds. To assess them, he looks at their past
investment records over the previous five years. The manager is operating under which condition?
A) certainty
B) probability
C) uncertainty
D) risk

101) A manager has a choice of three bank CDs that pay different amounts of interest over different
time periods. The manager is operating under which condition?
A) jeopardy
B) certainty
C) uncertainty
D) risk
102) A manager wants to invest in one of three start-up companies. All three of the companies
seem to have a good business plan. None of the companies has a track record. The manager is
operating under which condition?
A) uncertainty
B) certainty
C) low certainty
D) risk

103) A key to what is commonly used to assess risk is for a decision maker to examine the ________
an investment.
A) the promises made by a company for
B) the ads posted by a company for
C) historical data for
D) the minor details of

104) Managers in organizations make group decisions ________.

A) frequently
B) never
C) almost never
D) rarely

105) The eight steps of decision making ________.

A) can only be employed by individuals
B) can only be employed in very small groups
C) can be employed by individuals and groups
D) can only be employed by groups

106) One advantage of group decision making is that it usually provides ________ than individual
decision making.
A) faster decisions
B) more ethical decisions
C) less confusion
D) more information

107) Group decisions generally feature ________ acceptance than decisions made by an individual.
A) greater
B) less
C) neither greater or less
D) more enthusiastic
108) Group decision making typically increases the legitimacy of a decision because the decision
was made ________.
A) over a long period of time
B) democratically
C) by experts
D) primarily by the group leader

109) Decisions made by individuals typically suffer from suspicions that the decision maker
________.
A) is dishonest
B) is not rational
C) did not try to analyze the situation
D) did not consult all interested parties

110) Seeking the views of a diverse group of people can provide a decision maker with ________ on
issues.
A) fresh perspectives
B) conventional wisdom
C) universal agreement
D) a foolproof way to get the perfect answer

111) Which of the following is a drawback to seeking diverse views in decision making?
A) less reliable decision
B) easier decision-making process
C) more time consuming
D) less time consuming

112) Which phrase best summarizes the drawbacks of group decisions?

A) A camel is a racehorse put together by a manager.
B) A camel is a racehorse put together by a committee.
C) A camel is a no racehorse when it comes to speed.
D) A camel beats a racehorse in a long race.

113) Groups decisions are usually ________ individual decisions.

A) more efficient than
B) less efficient than
C) equal in efficiency to
D) more efficient but less effective

114) Since all members of a group are rarely equal in status, most groups suffer from ________.
A) minority domination
B) majority domination
C) too much diversity
D) gridlock
115) ________ can cause people in a group to fail to express their true opinions.
A) Ambiguous responsibility
B) Group imbalance
C) Pressure to conform
D) Years of experience

116) Which of the following is a primary characteristic of groupthink?

A) conflict among group members
B) failure to reach consensus within a group
C) complete conformity among group members
D) a group that is candid and open

117) Which of the following is NOT a factor that can increase the probability of groupthink?
A) Influential group members dominate the discussion and the decision-making process.
B) Group leaders stress the importance of consensus above all other concerns.
C) The group has more than 40 group members.
D) Group leaders solicit ideas from all group members without passing judgment on their ideas.

118) Which of the following is the most effective number of people to have in a group?
A) 5-7
B) 2-4
C) 10-15
D) 16-25

119) Which of the following is used to exclusively generate creative ideas in a group setting?
A) brainstorming
B) nominal group technique
C) groupthink
D) electronic meetings

120) Which of the following is NOT allowed in a brainstorming session?

A) clear definition of the problem
B) criticism or dismissal of poor ideas
C) large number of alternatives
D) recording of all alternatives

121) Which of the following group techniques allows group members to meet together, but at the
same time facilitates independent decision making?
A) brainstorming
B) nominal group technique
C) large meetings of over 50 individuals
D) small meetings of less than 10 individuals
122) The ________ blends the nominal group technique with sophisticated computer technology.
A) personal meeting
B) electronic meeting
C) virtual meeting
D) preliminary meeting

123) What advantages does videoconferencing provide for group decision making?
A) anonymous expression of opinions
B) less groupthink
C) less minority domination
D) savings on travel and time

124) Mid-level managers in a country with high power distance are ________ than managers from a
low power distance country.
A) more likely to make risky decisions
B) less likely to make risky decisions
C) less likely to make safe, conservative decisions
D) more likely to disagree with their leaders' decisions

125) Mid-level managers in a country with low uncertainty avoidance are ________ than managers
from a high uncertainty avoidance country.
A) more likely to make risky decisions
B) less likely to make risky decisions
C) less likely to make foolish decisions
D) more likely to avoid making decisions

126) Individualistic countries like the United States tend to have ________ than group-oriented
countries like Japan.
A) more conformity and more cooperation
B) more conformity and less cooperation
C) less conformity and more cooperation
D) less conformity and less cooperation

127) The use of ringisei in Japanese organizations reflects which of the following values in Japanese
culture?
A) tradition-following
B) consensus-seeking
C) risk taking
D) go-it-alone
128) French management style tends to be ________ in style.
A) permissive
B) group oriented
C) rule following
D) autocratic

129) When dealing with international organizations, managers must be ________ in order to
accommodate the managing styles of different cultures.
A) as flexible as possible
B) as inflexible as possible
C) as strict as possible
D) as thorough

130) ________ helps people find better solutions to problems using innovative problem-solving
methods.
A) Planning
B) Creativity
C) Organization
D) Structure

131) According to one study, about ________ of men and women were somewhat creative.
A) 1 percent
B) 10 percent
C) 30 percent
D) 60 percent

132) One well-accepted model states that individual creativity requires ________, or a commanding
understanding of a subject matter.
A) expertise
B) task motivation
C) high interest
D) intuition

133) Which of the following is NOT a characteristic of a creative problem solver?

A) self confidence
B) tolerance for ambiguity
C) frustrates easily
D) accepts risks readily
134) Which of the following traits do all creative people seem to share?
A) They like to save time.
B) They get along well with others.
C) They love their work.
D) They don't like to work hard.

135) Which of the following tends to impede a person's creativity?

A) providing time and resources
B) clearly defined goals
C) being watched while you work
D) internal motivation
 Chapter: 5 (Foundations of Planning)
44) Which of the following is NOT a function of planning?
A) defining goals
B) identifying a strategy for attaining goals
C) settling disputes between employees
D) coordinating organizational activities

45) Planning is concerned with ________.

A) both ends and means
B) ends only
C) means only
D) neither ends nor means

46) In informal planning, goals are usually ________ shared with others in the organization.
A) written, but little is
B) unwritten and little is
C) written and much is
D) unwritten, but much is

47) Informal planning is ________.

A) always performed at the lowest organizational level
B) general and usually lacks continuity
C) performed exclusively by middle managers
D) more specific than formal planning

48) In formal planning, ________.

A) specific goals covering a period of years are defined
B) to maximize flexibility, specific goals are never spelled out
C) very broad general goals are developed
D) goals may be written or unwritten

49) Which of the following is NOT a reason for managers to plan?

A) to give direction to an organization
B) to deal with change
C) to establish goals
D) to establish responsibility for mistakes

50) Planning gives organizations direction that primarily helps them ________.
A) improve teamwork and coordinate activities
B) improve their image in the business community
C) improve morale of middle managers
D) improve morale of all employees
51) Planning gives organizations a way to deal with change that ________.
A) eliminates all uncertainty
B) reduces uncertainty
C) reduces certainty
D) increases ambiguity

52) Organizations that don't formally plan may be more likely to have ________.
A) corrupt managers
B) legal problems
C) multiple departments performing the same task
D) a single department carrying out all company functions

53) One effect of planning on managers is that it forces them to ________.

A) fear change
B) anticipate and consider the effect of change
C) work to prevent change
D) ignore any change that doesn't directly affect them

54) Managers who fail to plan may ________.

A) take advantage of change
B) stimulate change
C) be positively affected by change
D) be adversely affected by change

55) Which of the following is a frequently cited criticism of formal planning?

A) Plans lock organizations into rigid goals and timetables.
B) Plans take too long to create.
C) Plans create resentment within different levels of the organization.
D) Formal planning works well only for smaller companies.

56) One criticism of formal planning is that it focuses on how to beat the competition rather than
how to ________.
A) have cordial relationships with the competition
B) focus on new opportunities
C) balance the organization's budget
D) cooperate with the competition

57) Failing to discard successful plans from the past is likely to lead to ________.
A) more success because conditions are unlikely to change in the future
B) failure because conditions are likely to change in the future
C) success because of the high quality of the plans
D) failure because of the low quality of the plans
58) Studies of performance in organizations that plan have reached ________ with respect to the
benefits of formal planning.
A) somewhat negative conclusions
B) no conclusion
C) extremely negative conclusions
D) generally positive conclusions

59) Studies of planning show that the key to successful planning is to make sure that the plans
________.
A) cover every possible detail
B) are high in quality and insight
C) are exceedingly simple to follow
D) are not shared with employees

60) In studies in which high-quality formal planning did not lead to higher performance, ________
usually the culprit.
A) unforeseen events or conditions were
B) demanding employees were
C) stubborn ownership was
D) lack of communication was

61) Formal planning typically leads to which of the following?

A) higher profits
B) lower productivity
C) higher sales, but lower profits
D) tension between different management levels

62) The first step in the six-step strategic management process is to ________.
A) analyze the organization's strengths and weaknesses
B) identify the organization's mission
C) identify strategies to reach the organization's goals
D) analyze the opportunities the organization has

63) The first three steps of the strategic management process involve ________ strategies.
A) planning
B) implementing
C) evaluating
D) identifying

64) A mission statement includes identification of an organization's ________.

A) strengths and weaknesses
B) products and basic philosophy
C) assets and resources
D) resources and strengths
65) A mission statement does NOT include which of the following?
A) the customers of a company
B) strategy for success
C) why the company is in business and what it hopes to accomplish
D) the company's basic beliefs

66) An external analysis, the second step of the strategic management process, helps identify
________.
A) the products that a company makes
B) the long-term goals for a company
C) a company's opportunities and threats
D) a company's concern for its employees

67) An internal analysis, the third step of the strategic management process, helps identify
________.
A) opportunities and threats
B) resources and capabilities
C) opportunities and possibilities
D) values and philosophy

68) Which term refers to an organization's capital, workers, and patents?

A) resources
B) capabilities
C) abilities
D) core competencies

69) An organization's resources identify ________.

A) how the organization gets things done
B) where the organization operates
C) when the organization operates
D) what the organization has

70) An organization's capabilities identify ________.

A) what the organization has
B) who the organization is
C) assets that the organization can rely on
D) what the organization can do

71) Together, an organization's resources and core competencies make up which of the following?
A) core philosophy
B) competitive weapons
C) core assets
D) fundamental beliefs
72) SWOT analysis identifies and analyzes an organization's ________.
A) strengths, weaknesses, opportunities, and threats
B) strategy for competing in the market
C) human resource assets
D) long-term goals

73) SWOT analysis combines ________.

A) a company's mission with its goals
B) external and internal analyses
C) a company's philosophy with its ethics
D) profit with productivity

74) Once SWOT analysis is complete, managers ________ to address the issues that came up during
the analysis.
A) formulate strategies
B) implement strategies
C) evaluate strategies
D) eliminate strategies

75) Which of the following do managers NOT typically use to formulate strategies?
A) find ways to exploit the organization's strengths
B) find ways to protect the organization from external threats
C) find ways to rule out existing organizational opportunities
D) find ways to correct organizational weaknesses

76) The three different types of strategies that managers implement are ________.
A) corporate, private, functional
B) corporate, competitive, functional
C) long-term, short-term, public
D) competitive, non-competitive, corporate

77) A corporate strategy focuses primarily on ________.

A) an organization's mission
B) an organization's strengths
C) an organization's weaknesses
D) an organization's people

78) Which of the following make up the three main types of corporate strategies?
A) growth, vertical integration, horizontal integration
B) growth, retrenchment, renewal
C) renewal, retrenchment, diversification
D) growth, stability, renewal
79) Growth strategies include ________.
A) diversification, concentration, integration, stabilization
B) vertical integration, horizontal integration, concentration, diversification
C) vertical integration, horizontal integration, lateral integration, horizontal concentration
D) integration, allocation, horizontal diversification, vertical diversification

80) General Mills expanding its line so that it sells several different types of Cheerios is an example
of which of the following?
A) concentration
B) horizontal integration
C) vertical integration
D) diversification

81) A salad dressing company that buys a large olive grove to provide olive oil is practicing which of
the following?
A) concentration
B) forward vertical integration
C) backward vertical integration
D) horizontal integration

82) A sneaker company creating its own stores where it sells only its own brand is an example of
which of the following?
A) forward vertical integration
B) backward horizontal integration
C) forward horizontal integration
D) reverse vertical integration

83) In forward vertical integration, a company becomes its own ________, while in backward
integration the company is its own ________.
A) supplier; distributor
B) supplier; customer
C) distributor; monitor
D) distributor; supplier

84) Two movie studios combining to form one larger studio is an example of which of the following?
A) forward vertical integration
B) horizontal integration
C) backward vertical integration
D) diversification
85) The U.S. Federal Trade Commission monitors horizontal integration carefully to make sure that
consumers aren't harmed by which of the following?
A) increased competition
B) too much competition
C) deceptive ads
D) decreased competition

86) When Google purchased YouTube, a company that featured different, but related products,
Google was engaging in which of the following?
A) concentration
B) forward vertical integration
C) backward vertical integration
D) diversification

87) Two companies that both sell fine time pieces combine. What are they doing?
A) diversifying, because they both sell the same products
B) integrating vertically, because they both sell the same products
C) backward vertical integration, because they are sharing distribution
D) integrating horizontally, because they both sell similar products

88) A company whose goal is to retain its ideal size and market share is employing which kind of
strategy?
A) non-corporate
B) growth
C) renewal
D) stability

89) Troubled companies seek ________ to address serious problems.

A) competitive strategies
B) corporate strategies
C) vertical and horizontal strategies
D) renewal strategies

90) To address limited, short-term problems a company is most likely to employ a ________
strategy.
A) retrenchment
B) turnaround
C) doomsday
D) self-critical
91) A company that is on the verge of collapse or bankruptcy might employ this strategy.
A) retrenchment
B) incremental improvement
C) turnaround
D) hunker down
Answer: C

92) Remedies that all renewal strategies employ include which of the following?
A) hiring efficiency experts
B) new ad campaigns
C) emulating competitors
D) cutting costs

93) The ________ strategy occupies the level below the corporate strategy.
A) business unit
B) competitive
C) functional
D) performance

94) A diversified corporation is likely to have ________.

A) multiple competitive strategies
B) a single competitive strategy
C) no more than two competitive strategies
D) thousands of competitive strategies

95) The thing that makes your product special is known as your ________.
A) assets
B) destruction device
C) competitive advantage
D) competitive strength

96) Competitive advantages for a high-prestige, premium coffee franchise like Starbucks are likely
to include all of the following EXCEPT ________.
A) high quality
B) lowest prices
C) well-trained employees
D) pleasant venues

97) A cost leadership competitive strategy focuses on which of the following?

A) efficiency
B) innovation
C) elegant design
D) luxury
98) Which of the following would you expect to find in a clothing store that follows a cost
leadership strategy?
A) only finest, most expensive materials
B) pampered, personalized service
C) state-of-the-art design
D) basic, no frills, practical items

99) A company with a differentiation strategy focuses on making its products or services ________.
A) unique and special
B) similar to its competitors
C) familiar
D) affordable

100) A differentiation strategy ________.

A) usually focuses on price
B) must focus on price
C) can focus on a brand image
D) can focus on value, but not service

101) A company that looks for a niche in the market is following which strategy?
A) cost leadership
B) differentiation
C) focus
D) turnaround

102) Which of the following describes a company that is following a focus strategy?
A) a software company that makes a wide variety of games and financial products
B) a software company that makes games for a wide audience
C) a software company that makes financial products for accountants, consumers, and businesses
D) a software company that makes financial products for accountants only

103) According to Michael Porter, a company with good products that has no clear competitive
advantage is said to be ________.
A) perfectly positioned
B) stuck in the middle
C) in the wheelhouse
D) outside of the box

104) Most successful companies find that ________ a competitive advantage is almost as difficult as
developing a competitive advantage.
A) assessing
B) sustaining
C) modifying
D) eliminating

105) All of the following are threats to a sustainable, long-term competitive advantage EXCEPT
________.
A) market stability
B) market instabilities and disturbances
C) evolution of the industry
D) new technology in the industry

106) To gain a sustainable competitive advantage, a pharmaceutical company might ________.

A) market aggressively
B) set high prices for its products
C) secure exclusive rights to produce a drug
D) produce as many generic drugs as possible

107) A company's strategic weapon is any product, service, or other attribute it has that ________.
A) gives it an edge over its competitors
B) identifies problems that the company has
C) identifies the potential of employees
D) helps diversify the company

108) To create a competitive advantage that is sustainable, a company can begin by focusing on
quality, then ________
A) make sure quality doesn't decline at too rapid a pace
B) make incremental improvements to keep quality levels high
C) change its entire product line frequently
D) slowly diminish quality and raise the prices of its products

109) This term describes an electric shaver company that carefully observes its competitor's
production line to look for ways to improve its own manufacturing process.
A) trademarking
B) benchmarking
C) quality engineering
D) reverse marketing

110) Which of the following best defines plans?

 A) documents that identify company problems
B) documents that define goals
C) documents that describe how goals will be met
D) documents that identify how goals from the past were met

111) Which of the following best defines goals?

A) likely outcomes for the future
B) unlikely outcomes for the future
C) desired outcomes for the future
D) short-term targets

112) In reality, all organizations have ________.

A) a single goal
B) multiple goals
C) the same goals
D) the same single goal

113) In most cases, strategic goals include ________.

A) all financial objectives
B) all objectives that are not financial
C) all objectives, both financial and non-financial
D) some financial objectives

114) Which of the following is an example of a strategic goal for a professional baseball team?
A) to increase attendance by 5 percent over the next three years
B) to increase television revenues over the next 5 years
C) to decrease payroll by 20 million over the next 2 years
D) to average over 90 wins a year for the next 5 years

115) An organization's real goals and priorities are best revealed by ________.
A) its official stated goals
B) its actions in the marketplace
C) its statements to the press
D) its mission statement

116) ________ are important because they provide the standards against which all organizational
accomplishments are measured.
A) Goals
B) Guidelines
C) Models
D) Rules

117) In traditional goal setting, these individuals set goals.

 A) top managers
B) middle and low-level managers
C) middle managers
D) managers and employees

118) In traditional goal setting, as they work their way from top management to employees, goals
are likely to ________.
A) become more clear
B) be more rigorously followed
C) be unchanged
D) become less clear

119) In a means-ends chain, a goal at a lower level ________.

A) is the bridge to a goal at the next higher level
B) is attained only after higher level goals are fulfilled
C) is separate from the goal at the next higher level
D) is ignored if goals at higher levels are attained

120) In management by objectives (MBO), goals ________.

A) must be easily accomplished
B) are jointly determined by employees and managers
C) are determined by top management
D) are developed by employees

121) In addition to being made by by both managers and employees, MBO goals must be ________.
A) non-specific and open-ended with regard to time
B) specific and open-ended with regard to time
C) specific and include an explicit time limit
D) non-specific and include no time limit

122) MBO programs are usually successful largely because they ________.
A) give employees a sense of ownership of goals
B) free managers from the responsibility of setting goals
C) give managers a sense of ownership of goals
D) free employees from responsibility if goals are not met

123) Which goal setting sequence is correct for the following steps?
1. Evaluate resources.
2. Identify goals.
3. Review the mission and job tasks.
4. Communicate goals.
5. Link rewards to goals.
6. Build feedback mechanisms.
A) 1, 2, 4, 6, 3, 5
B) 4, 2, 5, 3, 1, 6
C) 3, 4, 2, 6, 5, 1
D) 3, 1, 2, 4, 6, 5

124) The breadth of a plan refers to ________ concerns.

A) long-term versus short-term
B) strategic versus tactical
C) specific versus directional
D) single use versus standing

125) The specificity of a plan refers to ________ concerns.

A) long-term versus short-term
B) strategic versus tactical
C) specific versus directional
D) single use versus standing

126) Strategic plans address ________.

A) overall organizational goals
B) goals for a single branch of the organization
C) how overall goals are to be achieved
D) how a single goal is to be achieved

127) Tactical plans are operational plans that identify ________.

A) overall organizational goals
B) how overall goals are to be achieved
C) the mission of an organization
D) specific goals for accomplishing a specific objective

128) A politician whose ultimate goal is to get elected is planning campaign ads for TV. In planning
the ads, the politician is functioning at a ________ level.
A) strategic
B) long-term
C) tactical
D) directional

129) Which of the following defines the time frame of a long-term plan?
 A) over seven years
B) over three years
C) under three years
D) over one year

130) Directional plans ________.

A) leave no room for interpretation
B) are flexible general guidelines
C) are difficult to modify
D) must be short-term plans

131) Standing plans typically can be used ________.

A) only once
B) only in conjunction with specific, long-term plans
C) twice at most
D) repeatedly

132) Top managers, for the most part, focus on this type of planning.
A) operational
B) strategic
C) tactical
D) short term

133) The more uncertain a situation is, the more ________ plans must be.
A) unspecific
B) long term
C) flexible
D) short term

134) The commitment concept states that plans should ________.

A) always stake out a longer time period than is estimated
B) always stake out a shorter time period than is estimated
C) stake out a time period that is neither too long nor too short
D) not include time periods because they are too confining

135) Most managers feel that formal, top-down plans created by corporate planning departments
are ________.
A) very useful
B) usually unsatisfactory
C) indispensible
D) excellent

136) In the twenty-first century, managers increasingly need to consider their plans as ________.
 A) highly explicit recipes that must be scrupulously followed
B) a vague philosophy that should not interfere with actions
C) flexible road maps with destinations that may change
D) rigid road maps with a single destination

137) A cell phone company might ask managers to do some environmental scanning of blogs that
deal with electronics as a way to ________.
A) obtain new customers
B) identify emerging trends
C) obtain new advertisers
D) identify potential rivals

138) Which of the following is NOT something that a company would be likely to do as a part of a
competitive intelligence program?
A) buy competitors' products
B) attend trade shows
C) have employees evaluate competing products
D) buy stock in a competitor's company
140) What does the story of 3M employee Art Fry inventing the Post-It Note to make church hymns
communicate to 3M employees?
A) that church is important
B) that creativity is important
C) that workers need to take a day off
D) that workers never stop working

141) All of the following show why corporate rituals can be valuable in a corporate culture EXCEPT
________.
A) rituals help initiate new employees into the culture
B) rituals reinforce corporate values
C) rituals symbolize key ideas that are important in the culture
D) rituals intimidate and silence critics of the corporate culture.

142) Which of the following most accurately reflects the difference between strong cultures and
weak cultures?
A) Strong cultures tend to encourage employee innovation, while weak cultures do not.
B) Weak cultures are found in most successful organizations, whereas strong cultures are
relatively rare.
C) Strong cultures have less of an influence on employee behavior than do weak cultures.
D) Company values are more deeply held and widely shared in strong cultures than in weak
cultures.
 Chapter: 7 (Managing Human Resources)
42) The first three activities of the human resource management (HRM) process are about _______.
A) recruiting
B) planning
C) training
D) downsizing

43) Human resource management is concerned with ________ competent employees.

A) obtaining
B) obtaining, training, motivating, and keeping
C) obtaining, training, and motivating
D) training and keeping

44) For the most part, ________ are involved in HR decisions within their own department or unit.
A) very few managers
B) some managers
C) most managers
D) all managers are

45) Separate HRM specialists are least common in these types of organizations.
A) small
B) large
C) multinational corporations
D) non-profit

46) Employment planning involves ________.

A) addition of staff only
B) addition of staff and reduction of staff only
C) addition of staff, reduction of staff, and selection only
D) addition of staff, reduction of staff, motivation of staff, and selection

47) This is the goal of employment planning.

A) selecting competent employees
B) obtaining competent employees with up-to-date skills
C) obtaining competent and high-performing employees
D) selecting high-performing employees only

48) The last steps of the HRM process all deal with ________.
A) performance and compensation
B) training and compensation
C) compensation only
D) skills
49) The most important environmental factor in the HRM process is ________.
A) the business environment
B) the natural environment
C) the legal environment
D) the scientific community

50) The ________ prohibits discrimination based on race, color, religion, national origin, or sex.
A) Privacy Act
B) Civil Rights Act, Title VII
C) Equal Pay Act
D) Sarbanes-Oxley Act

51) It is against the law to discriminate on the basis of sexual orientation ________.
A) in all 50 states
B) only in California
C) nowhere in the United States
D) in many states

52) A wheelchair-bound applicant may be denied a job ________.

A) under no circumstances
B) if the job is strenuous or physically tiring in some way
C) if the job requires complete physical mobility
D) in some states

53) Affirmative action programs seek to make sure that employers ________ minority groups.
A) pay equal wages to
B) enhance employment opportunities for
C) provide unemployment benefits for
D) establish training programs for

54) Which U.S. law gives you the legal right to see your professor's letter of recommendation?
A) Civil Rights Act of 1991
B) Privacy Act of 1974
C) Polygraph Protection Act of 1988
D) Sarbanes-Oxley Act of 2002

55) Which of the following countries' laws pertaining to HRM practices most closely parallel those in
the United States?
A) Canada
B) Mexico
C) Australia
D) Germany
56) ________ in Germany give employees the right to participate in personnel decisions.
A) Collective bargaining
B) Unionization
C) Board representatives
D) Work councils

57) The first step in any employment planning process involves making a ________.
A) job description
B) human resource inventory
C) product evaluation
D) job specification

58) The lengthy process by which a job is examined in detail in order to identify the skills,
knowledge and behaviors necessary to perform the job is known as a ________.
A) job description
B) job specification
C) job definition
D) job analysis

59) As one of his first tasks in a new job, Steve's boss asks him to develop a database that lists the
educational level, special capabilities, and specialized skills of all the employees in his firm. This is
known as a ________.
A) job description
B) human resource inventory
C) lengthy process
D) job analysis

60) A job description is ________.

A) not a written document
B) a written document used to describe a job to job candidates
C) something that employers keep secret from job candidates
D) the official title for the job

61) A job specification is ________

A) a list of job qualifications only
B) a detailed description of the job
C) the description of a job that is used by an employment agency
D) usually several pages in length

62) HR managers can estimate human resource needs by evaluating which of the following?
A) employment and unemployment statistics
B) the general state of the economy
C) demand for the organization's product
 D) how competitors are performing
63) A written statement of what a job holder does in his job, how it is done, and why it is done is
known as a ________.
A) job specification
B) job qualifications
C) job definition
D) job description

64) To find out more about a job with a title of "assistant media buyer," you would find this to be
most helpful.
A) job title
B) job specification
C) job listing
D) job description

65) Recruitment is the process of ________.

A) hiring from outside the organization
B) locating, identifying, and attracting potential employees
C) assessing the national, international, and local labor market
D) hiring from inside the organization

66) This is a key disadvantage to recruiting through employee referrals.

A) limited to entry-level positions
B) high cost
C) no diversity increase
D) lower-skilled candidates

67) While ________ can reach the greatest number of applicants for a job, many of those
candidates may be unqualified for the job itself.
A) an internal search
B) advertising
C) a temporary help service
D) school placement

68) Which of the following is an advantage of using private employment agencies for recruiting?
A) low cost
B) candidates who are familiar with the organization
C) improves employee morale
D) careful screening of applicants
69) If employment planning shows a large surplus of employees, management may want to ______.
A) recruit
B) downsize
C) expand
D) continue with current employment levels

70) The difference between firing and layoffs is that ________.

A) layoffs are not permanent
B) layoffs are permanent
C) firing is not permanent
D) firing is not voluntary

71) Which of the following is NOT a voluntary form of downsizing?

A) attrition
B) early retirement
C) job sharing
D) layoffs

72) Which of the following downsizing methods can "happen on its own" if management suspends
hiring practices?
A) firing
B) reduced workweeks
C) attrition
D) transfers

73) In the selection process there are ________ possible outcomes.

A) two
B) three
C) four
D) dozens of

74) An accept error occurs when an applicant ________.

A) who is hired performs poorly on the job
B) who is not hired would have performed well on the job
C) who is not hired is hired by another firm
D) who is hired performs adequately on the job

75) A reject error occurs when an applicant ________.

A) who is hired performs poorly on the job
B) who is not hired would have performed well on the job
C) who is hired performs the job at a high level
D) who is not hired would have performed poorly on the job
76) Today, selection techniques that result in reject errors can open the organization to ________.
A) decreased productivity and efficiency
B) charges of employee discrimination
C) reduced morale
D) a weakened workforce

77) ________ indicates how consistently a selection device measures a criterion.

A) Operational scoring
B) Qualification
C) Reliability
D) Validity

78) Which of the following is an example of selection device reliability?

A) An applicant was given very different interview scores by five independent interviewers.
B) An applicant was given the same interview score by all five independent interviewers.
C) An applicant took a test a second time and her score improved markedly.
D) An applicant took a test once and scored higher than any other applicant.

79) A(n) ________ selection device shows a clear link between test performance and job
performance.
A) reliable
B) invalid
C) unreliable
D) valid

80) To use a physical test as a selection device, a company must demonstrate that ________.
A) physical ability is related to job performance
B) the test is fair
C) the test is reliable
D) the test does not discriminate against people with physical disabilities

81) Asking a candidate for an automotive mechanic's position to deconstruct and reconstruct part
of an engine motor would be an example of what kind of selection device?
A) spatial ability test
B) performance-simulation test
C) mechanical ability test
D) perceptual accuracy test

82) In an assessment center, an applicant for an engineering job might ________.

A) be interviewed by her prospective boss
B) take technical written tests
C) be interviewed by fellow employees
 D) be given an engineering problem to solve
83) The most important reason for why managers are increasingly using performance-simulation
tests is that they have been found to be ________.
A) valid predictors of job performance
B) non-discriminatory
C) a good way to test an applicant's character
D) easy to administer

84) Few people are ever selected for a job without this.
A) taking a written test
B) undergoing an interview
C) taking a performance-simulation test
D) taking a physical test

85) Interviews are valid predictors of success in the workplace if ________.

A) questions are short
B) questions are unstructured
C) questions are structured
D) the interview lasts only a few minutes

86) Which of the following is NOT a source of bias in a typical interview?

A) prior knowledge of the applicant
B) how articulate the interviewer is
C) the order in which applicants are interviewed
D) an applicant who shares the attitudes of the interviewer

87) During an interview, an applicant for a managerial job is confronted with role players who make
the claim that they have been "harassed on the job." The applicant is then asked to deal with the
complaints. What kind of selection device is being used?
A) performance-simulation test
B) structured interview
C) behavioral interview
D) high-stress interview

88) How effective are behavioral interviews?

A) no more effective than other interviews
B) less effective than other interviews
C) eight times as effective as ordinary interviews
D) twice as effective as ordinary interviews
89) A realistic job preview (RJP) includes ________ a job.
A) only factual information about
B) only positive aspects of
C) only negative aspects of
D) both positive and negative aspects of

90) All of the following are goals of the orientation process EXCEPT ________.
A) reduce anxiety
B) familiarize the employee with job
C) introduce the employee to his coworkers
D) discuss payments and benefits

91) Organizational orientation informs a new employee about ________.

A) her responsibilities for the job
B) the history and philosophy of the organization
C) what expectations she has about the job are unrealistic
D) how she will be evaluated on the job

92) Which of the following is NOT a sign to look for in a successful orientation process?
A) The new employee feels comfortable.
B) The new employee clearly exceeds all productivity goals for her work unit.
C) The new employee is less likely to resign.
D) The new employee understands her duties and responsibilities

93) Most training in U.S. organizations is ________.

A) on-the-job training
B) off-the-job training
C) classroom training
D) simulation exercise training

94) Which form of on-the-job training might have a trainee working with a single mentor from the
organization?
A) vestibule training
B) simulation exercises
C) understudy assignments
D) job rotation

95) Which of the following is NOT a positive feature of job rotation as a training method?
A) simulation of actual work tasks
B) exposure to many different work tasks
C) introduction to coworkers
D) does not take up too much of any one experienced worker's time
96) Which of the following is the best way to evaluate a training program?
A) how much trainees say they learned
B) how costly the method is
C) how much information trainees retain
D) actual job performance of trainees

97) To set pay standards HRM employs ________.

A) outside consultants
B) a federal pay scale
C) a panel of an employee's peers
D) a performance management system

98) A disadvantage of a written essay for employee appraisal is that it tends to be biased by ______.
A) the prejudice of the evaluator
B) friendship between the employee and the evaluator
C) the writing skill of the evaluator
D) the writing skill of the employee

99) All of the following are advantages of a graphic rating scale for employee evaluation EXCEPT __.
A) provides the most thorough view of the employee
B) provides objective quantitative data that can be analyzed in a variety of ways
C) not time-consuming
D) easy to draw conclusions from and summarize

100) A critical incidents employee appraisal method collects ________.

A) anecdotes that reveal the character and performance of an employee
B) statements from coworkers in support of an employee
C) statements from superiors that may or may not support an employee
D) data from an employee's computer to evaluate his or her performance

101) A performance appraisal method that combines two other well-known methods into one
process is called ________.
A) written essay
B) 360-degree feedback
C) graphic rating scales
D) BARS

102) A 360-degree feedback process differs from other appraisal methods in that it includes
________.
A) a written essay
B) feedback from an employee's supervisor
C) honest feedback
 D) feedback from the employee
103) This appraisal method is used by more major corporations than any other method.
A) management by objectives
B) 360-degree appraisal
C) critical incidents
D) graphic rating scales

104) What do the written essay, critical incidents, graphic rating scales, and BARS evaluation
methods have in common?
A) They compare individuals against standards.
B) They are multiperson comparisons.
C) They compare one employee to his or her peers.
D) They rank employees by performance.

105) How would the individual ranking method rank a group of 30 employees?
A) All 30 employees would be given a letter grade from A to F.
B) Employees would be ranked in quintiles, e.g., the top fifth, the second fifth, and so on.
C) Employees would be ranked against one another in pairs.
D) Each employee would be ranked by number from 1 to 30.

106) Which multiperson employee evaluation method allows for two or more employees to get the
same rating?
A) group-order ranking
B) individual ranking
C) paired comparison
D) 360-degree feedback

107) Which of the following would be most likely to result in a manager recommending counseling
for an employee?
A) The employee and the job are mismatched.
B) The employee isn't putting out enough effort.
C) The employee does not have the skills required for the job.
D) The employee has not been adequately trained.

108) Why do managers often offer counseling to underperforming employees rather than just fire
them?
A) to give the organization a favorable image
B) to avoid discord
C) to avoid the cost of replacing the employee
D) to avoid unsettling other employees
109) Which of the following is NOT a reason that managers put a lot of importance into developing
a good compensation system?
A) a sense of fairness
B) to attract talented employees
C) to avoid breaking the law
D) to retain talented employees

110) This is the most important factor in determining how much pay an employee receives.
A) education level
B) experience
C) the type of job the employee has
D) the amount of time and effort the employee puts into the job

111) Which of the following is NOT a factor that can influence compensation and benefits?
A) gender
B) seniority
C) geographical location
D) employee performance levels

112) Nine out of ten organizations in the United States pay their workers on a scale that is based
primarily on ________.
A) skills
B) seniority
C) status
D) performance

113) Health insurance is an example of which of the following?

A) compensation
B) employee benefit
C) salary
D) wages

114) Downsizing seems to harm ________.

A) victims who are dismissed only
B) both victims who are dismissed and survivors who stayed on
C) survivors who stayed on only
D) managers who carried out the dismissals and their families only

115) To improve workplace diversity, a manager might ________.

A) advertise in an ethnic newspapers and Internet sites
B) tighten his recruiting net
C) solicit referrals from existing employees
 D) post a notice that states he is an equal opportunity employer
116) According to the EEOC, sexual harassment is ________ that creates a hostile environment,
interferes with a person's work or diminishes the person's employment opportunities.
A) any speech
B) any unwanted or unsolicited speech or physical conduct
C) any speech of a sexual nature
D) any speech or physical conduct of a sexual nature

117) ________ are filed with the EEOC each year.

A) More sexual harassment complaints from males than females
B) More sexual harassment complaints from females than males
C) About an equal number of sexual harassment complaints from males than females
D) Almost no sexual harassment complaints from males

118) If an employee rebuffs inappropriate sexual advances from her boss but still receives a
promotion ________.
A) the boss can't be guilty of sexual harassment
B) the employee is not allowed to lodge a complaint
C) the boss can still be guilty of sexual harassment
D) the employee is not allowed to lodge a complaint if she accepts the promotion

119) The key to most sexual harassment cases against an organization is whether the organization
________.
A) knew about the behavior and what it did to stop it
B) had a policy against sexual harassment
C) fired the employee after the charges were lodged
D) had hired a known sex offender

120) What financial threat does sexual harassment pose to companies?

A) none
B) small legal fees only
C) enormous risk of major lawsuit settlements
D) none, because companies are insured against harassment

121) Workplace spirituality focuses on all of the following EXCEPT ________.

A) employees seeking meaning and purpose
B) a sense of community
C) employees carrying out religious practices
D) employees seeking to connect
122) Which of the following would you expect employees in a spiritual organization to have?
A) a strong sense of ethics
B) membership in a church or religious organization
C) distrust in the federal government
D) no interest in "worldly" matters

123) A major criticism of workplace spirituality is whether ________.

A) individuals have the right to discuss religion in the workplace
B) organizations have the right to impose spiritual values on employees
C) a spiritual organization can engage in making profits
D) workplace spirituality decreases productivity

124) Which benefit cost do companies see as their biggest worry?

A) health care
B) retirement plans
C) unemployment insurance
D) Social Security

125) Which health care or safety issue concerns companies the most?
A) smoking
B) disease
C) traffic accidents
D) obesity
 Chapter: 13 (Managing Communication & Information)
43) For managers, communication can't be overemphasized because ________ requires
communication.
A) decision making
B) planning
C) supervising and monitoring employees
D) everything a manager does

44) The communication process begins with this.

A) a receiver
B) a message
C) a thought or purpose
D) an encoded message

45) In order to transmit a message, the thought originating with the sender must be ________ to
symbolic form.
A) decoded
B) encoded
C) deciphered
D) expanded

46) Which communication sequence is correct?

A) sender ⇒ decoding ⇒ channel ⇒ encoding ⇒ receiver
B) sender ⇒ channel ⇒ medium ⇒ decoding ⇒ receiver
C) source ⇒ sender ⇒ encoding ⇒ decoding ⇒ receiver
D) sender ⇒ encoding ⇒ channel ⇒ decoding ⇒ receiver

47) Reading is an example of this communication step.

A) feedback
B) encoding
C) sending
D) decoding

48) Four conditions influence the content of an encoded message: the skills, attitudes, knowledge,
and ________ of the sender.
A) social-cultural system
B) environmental conditions
C) volume
D) political conditions
49) A ________ is the actual physical product encoded by the source.
A) channel
B) message
C) thought
D) source

50) The channel is the ________.

A) actual physical product from the source that conveys a purpose
B) person who receives the message
C) medium that the messages travels through
D) person who sends the message.

51) A spelling mistake in a message is an example of ________.

A) an encoding error
B) a decoding error
C) a transmission error
D) a receiver error

52) The final link in the communication process is ________.

A) encoding
B) decoding
C) channeling
D) feedback

53) Feedback is a message that travels from ________.

A) encoder to receiver
B) source to decoder
C) the original receiver to the original sender
D) the original sender to the original receiver

54) Skills, attitudes, knowledge, and social cultural systems affect ________.
A) the sender only
B) the receiver only
C) neither the sender nor the receiver
D) both the sender and the receiver

55) The great advantage of a written message is that it ________.

A) is informal
B) is easy to provide feedback for
C) is unambiguous
D) provides a permanent record
56) Which of the following is a disadvantage of written communication?
A) vague
B) time-consuming
C) not permanent
D) hard to store

57) Along the grapevine ________.

A) good news travels fastest
B) bad news travels slowly
C) good news travels slowest
D) bad news travels fastest

58) You would expect to find a grapevine with the most accurate rumors in ________ organization.
A) an organic
B) a mechanistic
C) a hierarchical
D) an authoritative

59) An example of nonverbal communication is ________.

A) an email
B) a smile
C) a whisper
D) a voice mail

60) Verbal intonation is a form of ________.

A) verbal communication
B) body language
C) nonverbal communication
D) facial expression

61) A live singing performance allows a listener to perceive ________ forms of communication.
A) verbal, body language, and verbal intonation as
B) only verbal
C) only nonverbal
D) body language, facial expressions, and verbal intonation as

62) Listening to a singing performance on the radio allows a listener to perceive ________ forms of
communication.
A) verbal, body language, and verbal intonation as
B) only verbal
C) only nonverbal
D) both verbal and nonverbal
63) Watching a movie in a foreign language you don't understand without subtitles allows you to
perceive ________ forms of communication.
A) verbal, body language, and verbal intonation as
B) only verbal
C) only nonverbal
D) both verbal and nonverbal

64) Reading a movie script allows you to perceive ________ forms of communication.
A) verbal, body language, and verbal intonation as
B) only verbal
C) only nonverbal
D) both verbal and nonverbal

65) Managers often travel long distances to have a face-to-face meeting with someone for this
reason.
A) It shows respect.
B) Most communication is done through body language.
C) Other forms of communication have security concerns.
D) It communicates a sense of power, rank, and mobility.

66) ________ is the deliberate manipulation of information by the sender to make it appear more
favorable to the receiver.
A) Selective perception
B) Information overload
C) Jargon
D) Filtering

67) All of the following are barriers to effective interpersonal communication EXCEPT ________.
A) filtering
B) selective perception
C) feedback
D) language

68) When an auto industry manager raves about plans for a new car design and fails to see the
flaws in the model, he is engaging in this.
A) selective perception
B) filtering
C) emotion
D) information overload
69) When an auto designer's presentation of a new design shows all of the good features of the
design but fails to mention the poor gas mileage that the model will get, she is engaging in this.
A) emotion
B) selective perception
C) information overload
D) filtering

70) Auto company engineers want technical terms such as limited slip differential used in car ads.
Ad execs, on the other hand, don't want these terms used. The cause of their disagreement is ____.
A) emotion
B) selective perception
C) language
D) gender

71) When an auto executive who is upset because his teenage son got suspended from school ends
up nixing new design plans for no apparent reason, communication has been distorted by this.
A) selective perception
B) emotion
C) filtering
D) gender

72) When an auto executive fails to notice an important demographics report in her overstuffed
inbox before going to a meeting, she is likely to be suffering from this.
A) information overload
B) emotion
C) filtering
D) gender

73) Jargon can be very useful for communication ________.

A) within a specialized, close-knit group
B) between people who speak different languages
C) outside of a specialized, close-knit group
D) between males and females

74) Filtering tends to be more prevalent in this kind of organization

A) organic
B) highly vertical
C) highly horizontal
D) non-mechanistic
75) Jargon tends to cause problems when it is used ________.
A) within a specialized, close-knit group
B) as shorthand for technical terms
C) outside of a specialized, close-knit group
D) in spoken rather than written language

76) Which slogan for a new car would be likely to appeal more to men than to women?
A) Be the top dog on your block
B) The car with a little bit of home
C) The family car for every family
D) Saving the world, one car at a time

77) Which slogan for a new car would be likely to appeal more to women than to men?
A) The ultimate among ultimates
B) Carve out your niche
C) Carry a little bit home wherever you drive
D) Be the top dog on every block

78) U.S. managers tend to rely on this style of communication.

A) formal and written
B) informal and unwritten
C) verbal and informal
D) verbal and formal

79) Japanese managers tend to rely on this style of communication.

A) formal and written
B) formal and unwritten
C) informal and verbal
D) verbal and formal

80) The purpose of feedback is to determine whether a message was ________.

A) received
B) received and understood
C) worth sending
D) verbal or nonverbal

81) Feedback ________.

A) can be spoken, nonverbal, or written
B) must be spoken
C) must be written
D) can be spoken, verbal, or oral
82) One particularly effective form of providing feedback is for the receiver to ________.
A) raise a hand to show that the message was received
B) state "message received" out loud
C) restate the message in his or her own words
D) send a written message that states "message received"

83) Simplifying language is most important when ________.

A) the speaker has little time
B) the audience is sympathetic
C) the audience is unfamiliar
D) the message is simple

84) The average listener can understand language at a rate that is ________ the average speaker
can speak.
A) much slower than
B) much faster than
C) the same rate that
D) a little bit slower than

85) Because the average listener can comprehend language at a rate that is much higher than
speakers can speak, people tend to be ________.
A) poor listeners
B) good speakers
C) slow talkers
D) good listeners

86) This is the primary goal of active listening.

A) developing empathy with the speaker
B) avoiding premature judgments or interpretations of the speaker's message
C) focusing on the speaker
D) understanding the full meaning of the speaker's message

87) Active listening is enhanced by developing ________ with the speaker.

A) apathy
B) sympathy
C) a personal friendship
D) empathy

88) Which action best shows a speaker that you are paying close attention?
A) avoiding interruptions of the speaker
B) avoiding overtalking
C) direct eye contact
D) smooth transitioning from listener to speaker
89) Which of the following is NOT true of active listening?
A) It is a skill that most people need to improve.
B) Listening demands serious intellectual effort.
C) Active listening demands intense concentration.
D) Empathy is a barrier to active listening.

90) Emotions can distort communication ________.

A) for senders only
B) for receivers only
C) for both senders and receivers
D) only when negative

91) During an interview minutes after a tough loss, a soccer coach who is frustrated with calls made
by the game's referees should probably do this.
A) blame himself for the defeat
B) blame the referees for the defeat
C) express his anger freely
D) take some time to cool down

92) A manager who is trying to sound conciliatory should make sure that ________.
A) her voice is soft
B) she smiles when she speaks
C) her voice shows no anger
D) her voice shows no emotion

93) Networked communication capabilities include all of the following EXCEPT ________.
A) email
B) the grapevine
C) instant messaging
D) electronic data exchange

94) Techniques organizations utilize to exchange standard business transaction documents, such as
invoices or purchase orders, are called ________.
A) intranets
B) extranets
C) electronic data interchange
D) teleconference

95) Ross can create web pages that are accessible only to members of his organization on ________.
A) an intranet
B) an extranet
C) an electronic data interchange
D) a videoconference
96) Which kind of electronic meeting format allows participants to view nonverbal forms of
communication that include facial expressions and body language?
A) teleconferencing
B) videoconferencing
C) electronic data interchange
D) face-to-face meeting

97) Which kind of electronic meeting format allows participants access to verbal communication
that includes voice intonation but no body language?
A) teleconferencing
B) videoconferencing
C) electronic data interchange
D) face-to-face meeting

98) An extranet is different from an intranet in that it ________.

A) allows participants to use the Internet
B) does not involve the Internet
C) is faster than an intranet
D) allows outside companies to participate

99) Terms such as BIL, NSFW, and FYEO are examples of which of the following?
A) text-messaging shorthand
B) Internet agencies
C) government education programs
D) workplace compensation bureaus

100) Which of the following characteristics is NOT typically an important part of a functioning
knowledge management system?
A) gathering knowledge
B) selling knowledge
C) organizing knowledge
D) sharing knowledge

101) Which of the following would be most likely to be an important "knowledge" that a restaurant
might make part of its knowledge management system?
A) employee phone list
B) a new logo
C) 5-pound bag of onions
D) a recipe for an onion tart
102) Top corporations find this to be the most important quality when hiring senior-level
employees.
A) honesty
B) interpersonal skills
C) technical skills
D) discipline

103) What are the four essential elements of active listening?

A) intensity, concentration, empathy, acceptance
B) summarizing, integrating, empathy, concentration
C) concentration, intensity, willingness to take responsibility for actions, receptivity
D) intensity, empathy, acceptance, willingness to take responsibility for completeness

104) The best way to use "idle" time when a speaker is speaking is to ________.
A) think of what you are going to say
B) think of suggestions that might help the speaker
C) summarize and integrate what you've heard
D) compose interesting questions you might ask

105) Which of the following essential elements of active listening requires a listener to suspend his
or her own thoughts and feelings and focus on the thoughts and feelings of the speaker?
A) empathy
B) intensity
C) willingness to take responsibility for completeness
D) acceptance

106) Which of the following essential elements of active listening requires the listener to withhold
judgment on the speaker's message?
A) acceptance
B) willingness to take responsibility for completeness
C) intensity
D) empathy

107) Which of the following essential elements of active listening requires the listener to make sure
that the speaker has gotten a chance to fully express him- or herself?
A) acceptance
B) willingness to take responsibility for completeness
C) intensity
D) empathy
108) Which of the following essential elements of active listening requires a listener to focus
completely on what a speaker is saying?
A) willingness to take responsibility for completeness
B) empathy
C) acceptance
D) intensity

109) Which kind of feedback is usually given promptly and enthusiastically?

A) negative feedback
B) accurate feedback
C) positive feedback
D) useful feedback

110) Which kind of feedback is most frequently misinterpreted?

A) negative feedback
B) accurate feedback
C) objective feedback
D) gentle feedback

111) What is the most common response to negative feedback?

A) acceptance
B) resistance
C) indifference
D) gratitude

112) Which kind of negative feedback is most likely to be well accepted?

A) objective
B) subjective
C) honest
D) accurate

113) When is subjective negative feedback most likely to be accepted?

A) when the source is a trusted top manager
B) when the source is a peer
C) when the source is not a top manager
D) when the source is not part of the organization

114) Which kind of feedback is most likely to be well accepted?

A) impersonal and subjective
B) personal and objective
C) personal and subjective
D) impersonal and objective
115) Rather than call an employee "sloppy," a manager should ________.
A) call the employee careless
B) call the employee absent-minded
C) point out some of the employee's good characteristics
D) point out events in which the employee was sloppy

116) Rather than reprimand an otherwise productive employee for making mistakes, it is better to
________.
A) discuss how to correct the mistakes
B) point out that she could be fired
C) blame the mistakes for creating ancillary problems
D) discuss your own mistakes

117) Positive or negative feedback works best when it is given ________.

A) everyday
B) not more than a few times a year
C) shortly after the event itself
D) long after the event itself

118) To make sure that feedback is likely to be constructive, it is a good idea to have the receiver
________.
A) make a verbal promise to change the behavior
B) rephrase the message to make sure it was understood
C) apologize
D) make a written promise to change the behavior

119) Criticizing an employee's behavior is usually much more constructive than criticizing his
character because ________.
A) character is permanent
B) character is not permanent
C) behavior can be controlled
D) behavior cannot be controlled

120) Delegation is increasing in today's business world primarily because of ________

A) smaller spans of control
B) the need for quick decisions
C) globalization
D) tighter budgets
121) Delegation requires that decisions are made by ________.
A) employees on their own
B) employees and managers working together
C) managers with some input from employees
D) employees with some input from managers

122) A participation work style requires that decisions are made by ________.
A) managers only
B) employees and managers working together
C) managers and consultants
D) employees on their own

123) Downsizing has increased delegation of work to employees by ________.

A) increasing managerial spans of control
B) decreasing managerial spans of control
C) decreasing the total amount of work to be done
D) changing the tasks that are needed to be done

124) When managers don't properly specify what they expect, they end up ________ their
responsibility.
A) delegating rather than abdicating
B) abdicating rather than delegating
C) increasing rather than delegating
D) decreasing rather than abdicating

125) To be successful, managerial delegation must include ________.

A) abdication
B) feedback controls
C) mistakes
D) no mistakes

126) Rather than delegate too much work to employees, inexperienced managers are likely to
________.
A) do too much themselves
B) do too little themselves
C) delegate the wrong kind of tasks
D) delegate tasks that are too hard or easy

127) When delegating work, the best policy is for a manager to specify what the ________.
A) goals are and how they should be reached
B) goals are only
C) task is but not the goals
D) task is and how it should be carried out
128) Feedback controls are designed to ________.
A) control every move that employees make
B) assess the task only after it has been completed
C) monitor progress without being constraining
D) monitor details but leave the goals to the employees

129) When delegating tasks, managers should expect ________.

A) to be ignored by employees
B) secrecy on the part of employees
C) that employees will not be entirely honest
D) small mistakes made by employees

130) Which item was rated most important for management development programs to deal with in
a survey of managers?
A) decision making
B) leadership
C) conflict management
D) communication skills

131) The human relations view of conflict states that conflict ________.
A) must be avoided
B) is natural and inevitable
C) is necessary for successful group performance
D) should be ignored

132) The interactionist view of conflict states that conflict ________.

A) is easily prevented
B) must be avoided
C) is natural and inevitable
D) is necessary for successful group performance

133) Research shows that ________ conflict has a positive effect on group performance.
A) a high level of task
B) a low-to-moderate level of task
C) a high level of process
D) a moderate level of personal

134) Personal conflicts are thought ________.

A) to be beneficial at low levels
B) to be functional at moderate levels
C) always to be dysfunctional
D) to be dysfunctional only at high levels
135) The first step in initiating functional conflict is to ________.
A) challenge the views of employees
B) bring up controversial issues with employees
C) inform employees that conflict has a legitimate place in group interactions
D) bring in outside consultants who have been instructed to upset the status quo

136) Distributive bargaining is ________.

A) win-win bargaining
B) no-win bargaining
C) zero-win bargaining
D) zero-sum bargaining

137) Integrative bargaining is ________.

A) single-win bargaining
B) win-win bargaining
C) zero-sum bargaining
D) no-sum bargaining
 Chapter: 14 (Foundations of Control)
43) The control management function ensures that ________ in an organization.
A) goals are set
B) goals are met
C) plans are made
D) plans are realistic

44) A major part of the controlling function of management is to ________.

A) formulate strategies
B) set standards
C) correct performance problems
D) structure an organization

45) The more a control system helps an organization ________, the more successful it is judged to
be.
A) make a profit
B) help employees achieve job satisfaction
C) meet its goals
D) help employees be productive

46) A well-run company that has well-thought-out plans, motivated and productive workers, and an
efficient organizational structure ________.
A) always attains its goals
B) may not always be attaining its goals
C) rarely attains its goals
D) has no reason to monitor its performance

47) The value of the controlling function is seen in three specific areas: planning, ________.
A) organizing, and leading
B) protecting employees, and empowering the workplace
C) protecting employees, and protecting the workplace
D) empowering employees, and protecting the workplace

48) Controlling is the ________ in the management process.

A) first step
B) final step
C) most important step
D) least important step

49) Controlling compares ________ to see if goals are being achieved.

A) planned performance to standard performance
B) standard performance to ideal performance
C) actual performance to competitor performance
 D) actual performance to planned performance
50) Effective controlling can help managers who are afraid to delegate authority ________.
A) empower their employees
B) set their goals
C) maximize risk
D) minimize employee empowerment

51) The controlling function helps managers protect an organization's ________.

A) reputation for honesty
B) assets
C) standing
D) good name

52) The first step in the control process is to ________.

A) take action
B) measure actual performance
C) compare performance against a standard
D) compare a standard against an ideal

53) Managers always use these for performance standards during the control process.
A) goals created during the planning process
B) plans created during the planning process
C) generic performance standards for the industry
D) standards developed by performance experts

54) A manager measuring actual performance is like a teacher ________.

A) composing a test
B) grading a test
C) helping a student study for a test
D) making an assignment

55) This is the most informal form of performance measurement.

A) oral reports
B) written reports
C) statistical reports
D) personal observation

56) MBWA stands for management by ________.

A) work area
B) work action
C) written action
D) walking around
57) An advantage of management by walking around is ________.
A) perceptual biases
B) obtrusiveness
C) personal contact
D) objectivity

58) For a baseball player a statistical report would feature such things as ________.
A) a newspaper profile of the player
B) batting average and slugging percentage
C) filmed highlights of great plays
D) scouting reports on the player

59) A disadvantage of a statistical report is that it may leave out ________ measurements of
performance.
A) subjective
B) objective
C) positive
D) negative

60) This type of performance measurement format would be most likely to include graphs, tables,
and computer outputs.
A) oral report
B) statistical report
C) MBWA
D) written report

61) This kind of performance measurement method is fast and is a good platform for feedback, yet
it can be private and scheduled for a single employee ahead of time.
A) written report
B) MBWA
C) oral report
D) statistical report

62) The most comprehensive form of performance measurement is this.

A) MBWA
B) oral report
C) statistical report
D) written report

63) Steve has a taped record of this one-on-one meeting with his boss.
A) a statistical report
B) an oral report
C) MBWA
D) a written report
64) Jessie's whole work section that consists of three work groups was assessed by this method of
performance measurement and informally judged to be "creative, innovative, hard-working, and
fun-loving."
A) MBWA
B) written report
C) statistical report
D) oral report

65) These forms of performance measurement provide the best and most immediate forms of
feedback.
A) oral report and written report
B) written report and statistical report
C) MBWA and oral report
D) statistical report and MBWA

66) What managers choose to measure largely determines an organization's ________.

A) goals
B) structure
C) image
D) leaders and leadership style

67) A car company that puts more effort into measuring quality than total units sold most likely
wants to excel at ________.
A) customer satisfaction
B) efficiency
C) employee satisfaction
D) cost per unit

68) A software company that puts almost all of its performance measurement effort into measuring
the total number of units that the company and its competitors sell most likely wants to excel at
________.
A) efficiency
B) market share
C) cost per unit
D) labor per unit

69) A state motor vehicles agency that is interested in serving the public might choose to measure
________.
A) total revenue rather than customer wait time
B) total customers rather than total revenue
C) customer wait time rather than total customers
D) employee turnover rather than customer wait time
70) Which of the following performance measurement categories must be measured subjectively
rather than in objective or quantifiable terms?
A) budget
B) absenteeism
C) efficiency
D) job satisfaction

71) The second step in the control process is to ________.

A) compare a standard against an ideal
B) measure actual performance
C) compare performance against a standard
D) take action

72) To carry out the second step of the control process, managers at an electric shaver company
need to compare the number of actual shavers sold to ________.
A) a competitor's sales totals
B) planning goals for sales totals
C) sales totals from last year
D) the number of possible shaver customers

73) In the second step of the control process, actual performance can be considered acceptable as
long as the performance doesn't fall ________.
A) short of goals by more than 15 percent
B) short of goals by more than 30 percent
C) inside of an acceptable range of variation
D) outside of an acceptable range of variation

74) In general, ________ that falls outside of an acceptable range of variation must be dealt with by
a manager.
A) an overperformance
B) an underperformance
C) any deviation
D) a small overperformance or a large underperformance

75) The third step in the control process is to ________.

A) measure actual performance
B) compare a standard against an ideal
C) take action
D) compare performance to a standard
76) When actual performance falls outside of an acceptable range of variation, it is termed a(n)
________.
A) significant deviation
B) insignificant deviation
C) acceptable deviation
D) large deviation

77) When should a manager's course of action be to do nothing?

A) if the cause of the variation has been identified
B) if the standard is acceptable
C) if the standard is not acceptable
D) if the variance is acceptable

78) Actual performance falls far short of planned goals, yet a manager takes no action. Assuming
this manager is a reasonable person and is not mistaken, what is the most likely cause of his
inaction?
A) He does not trust the data.
B) He does not consider the deviation significant.
C) He does not trust the goals that were set.
D) He does not believe in corrective action.

79) Which of the following is NOT a recognized possible course of action for managers to take when
actual performance falls outside of an acceptable range of variation?
A) take corrective action
B) change the standards
C) ignore the performance data
D) do nothing

80) If a manager of a tennis store sees sales totals for a particular racquet significantly exceeding
goals and deviating from acceptable range of variation, she might ________.
A) do nothing since sales exceeded goals
B) run a sale on the racquet
C) run a sale on other products
D) inquire about ordering more racquets

81) After an extended period of unseasonably warm and sunny weather, revenues are down
sharply during the month of November at an indoor tennis club. The best strategy for the club
manager is to ________.
A) do nothing
B) run a sale on hourly rates
C) raise hourly rates to increase revenue
D) change her monthly goals for December
82) Due to a recent construction of an upscale housing community near a tennis club, customer use
has skyrocketed during the year and the club is operating at all-time high levels, far beyond the
goals set the previous year. The best strategy for the manager is to ________.
A) do nothing
B) run a sale to increase customers
C) advertise
D) change goals for the following year

83) Immediate corrective action is designed ________.

A) to get to the root cause of the problem
B) to get performance back on track
C) to shake up the organization
D) to punish employees for poor performance

84) For addressing the hardships accompanying unemployment, this is an example of immediate
corrective action.
A) a job training program
B) food stamps
C) a task force to see why jobs were lost
D) a job placement agency

85) For addressing unemployment, this is an example of basic corrective action.

A) a task force to see why jobs were lost
B) food stamps
C) unemployment compensation
D) a job training program

86) In many cases, immediate corrective action rather than basic corrective action is taken by
managers because they ________.
A) want to be thorough
B) lack time
C) lack information
D) don't understand the situation

87) Which of the following would constitute basic corrective action for employees whose
production has dropped?
A) changing the pay scale
B) taking away employee privileges
C) looking for causes of the production drop
D) changing how the work is carried out
88) A law firm manager finds that one lawyer constitutes a significant deviation because she
consistently outperforms other lawyers at the firm. Which immediate corrective action should the
manager take?
A) none
B) make a compensation change
C) disciplinary action
D) study to see why she outperformed others

89) A law firm manager finds that the firm loses too many of its civil cases while it wins an
inordinately high number of its criminal cases. Which basic corrective action can the manager take?
A) pay criminal lawyers more
B) pay civil lawyers less
C) analyze civil and criminal cases
D) fire civil lawyers

90) When might a manager be justified in revising a standard rather than taking corrective action to
remedy a significant performance deviation?
A) when performance exceeds the standard
B) when performance falls slightly short of the standard
C) when performance falls far short of the standard
D) when the standard is unrealistic

91) A professor gives a new test to an otherwise normal class and finds that only 10 percent of the
students get grades of C or above. What is the most appropriate and fair response?
A) do nothing
B) revise the grading curve downward
C) revise the grading curve upward
D) revise the test itself

92) All of the following are dangers of revising production goals downward EXCEPT ________.
A) it destroys incentive to work harder
B) it increases incentive to work harder
C) it gives employees an excuse to be less productive
D) it gives employees something to blame for their lack of effort

93) Which kind of control takes place before the actual work is carried out?
A) feedback
B) concurrent
C) recurrent
D) feedforward
94) A cell phone maker tests its new model with a sample audience when it is fully operational.
What kind of control is this?
A) pre-market control
B) feedback control
C) concurrent control
D) feedforward control

95) Which kind of control takes place while the actual work is carried out?
A) feedback
B) concurrent
C) reverse
D) feedforward

96) Direct supervision of employees is a form of ________ control.

A) concurrent
B) ineffective
C) feedback
D) feedforward

97) A comedy show producer has a read-through of a half-written show in which actors, writers,
producers, and the director are free to make comments and changes as the show progresses. What
kind of control is being used?
A) feedback control
B) concurrent control
C) spontaneous control
D) feedforward control

98) A fast food restaurant is querying prospective customers about the features they would like to
see in a new panini sandwich. What kind of control is being used?
A) concurrent control
B) feedback control
C) feedforward control
D) anticipation control

99) Which kind of control takes place after the actual work has been carried out?
A) feedback
B) forward
C) feedforward
D) concurrent
100) A basketball coach showing players how to position themselves on the court during practice is
carrying out ________, a form of concurrent control.
A) unstructured supervision
B) direct supervision
C) indirect supervision
D) feedback supervision

101) One advantage of feedback control over other forms of control is that it lets managers focus
on ________.
A) what is about to take place
B) how on-target their planning efforts were
C) how effective their organizing efforts were
D) the task as it is being carried out

102) When feedback control shows that planning goals and actual performance were dramatically
different, the most likely conclusion is that ________.
A) planning was not on-target
B) performance measurements were unreliable
C) planning was on-target
D) goals do not need to be changed

103) An advantage of feedback control is that it improves ________.

A) motivation
B) productivity
C) employee-manager relations
D) employee-employee relations

104) During a performance feedback session, managers should make an effort to create a ________
environment.
A) high-pressure
B) supportive
C) personal
D) fun

105) Comments in a performance feedback session ideally should be ________.

A) both personal and specific
B) personal
C) both impersonal and specific
D) both personal and general
106) During a performance feedback session, making sure that negative comments are ________
can prevent employees from getting the feeling that they are being attacked.
A) subjective
B) job-related
C) general
D) non-job-related

107) Giving an employee ample time to speak during a performance feedback session allows the
employee to ________.
A) make excuses
B) be empathetic
C) give his or her side of the situation
D) blame circumstances for any shortcomings

108) A performance feedback session should end with this.

A) promises to improve
B) an apology
C) mutual pledges to change
D) a plan of action for the future

109) Managers exert financial control on an organization using ________ analysis.

A) activity
B) productivity
C) ratio and budget
D) productivity and resource

110) ________ is a measure of an organization's ability to meet its current debt obligations.
A) Leverage
B) Activity
C) Liquidity
D) Profitability

111) ________ assess how efficiently a company is using its assets.

A) Profitability
B) Activity
C) Leverage
D) Liquidity

112) ________ examine the organization’s use of dept to finance its assets and whether it’s able to
meet the interest payment on the debt.
A) Profitability
B) Liquidity
C) Activity
 D) Leverage
113) ________ is a measure of how readily a company can use its assets to generate profits.
A) Profitability
B) Leverage
C) Liquidity
D) Activity

114) When a budget is formulated, it is being used as a(n) ________ tool.

A) organizing
B) controlling
C) planning
D) leadership

115) When a budget is used for controlling, it provides ________ against which resource
consumption can be compared.
A) quantitative standards
B) qualitative standards
C) flexible standards
D) non-numerical standards

116) A household that cuts back on supermarket spending after going over-budget on its food
budget is using the budget as a(n) ________.
A) planning tool
B) controlling tool
C) organizing tool
D) leading tool

117) A family that is using a computer program to create a formal household budget is using the
budget as a(n) ________.
A) planning tool
B) controlling tool
C) organizing tool
D) leading tool

118) A management information system (MIS) provides managers with ________ data.
A) analyzed and processed
B) raw
C) unanalyzed
D) numerical
119) All of the following are important in efforts to protect information in an organization EXCEPT
________.
A) firewalls
B) encryption
C) search engines
D) data backups

120) A balanced scorecard approach creates goals in four key performance areas and assesses
________.
A) whether all four goals are met
B) whether all four goals are met equally
C) whether any of the four goals are met
D) which goals are exceeded

121) When a company's scorecard is not balanced, it usually tends to overemphasize the area that
________.
A) involves customers
B) has to do with productivity
C) best matches its organizational style and philosophy
D) contrasts most with its organizational style and philosophy

122) In general, the greater the distance between the home office of a global company and its
branch, the ________.
A) more formalized the controls
B) less formalized the controls
C) more automated the controls
D) less automated the controls

123) In which country would highly centralized decision making be more likely to be prevalent?
A) Mexico
B) Scotland
C) Japan
D) Australia

124) Direct supervision as a basic means of control is much more common in ________
A) small countries
B) democracies
C) more technologically advanced countries
D) less technologically advanced countries
125) When comparing Mexico to Scotland, you would expect Scottish workers to have ________.
A) greater productivity, but lower labor cost per worker
B) lower productivity, but higher labor cost per worker
C) greater productivity and higher labor cost per worker
D) lower productivity and lower labor cost per worker

126) Which statement about employee privacy is correct?

A) Employers have a legal right to monitor on-the-job employee phone calls.
B) Employers have no legal right to monitor on-the-job employee phone calls.
C) Employers have the legal right to monitor all employee phone calls.
D) Employers do not have the right to monitor any employee phone calls.

127) Which of the following employer practices is NOT legal?

A) reading employee email
B) monitoring employees in a bathroom
C) tracking an employee's whereabouts
D) monitoring an employee's personal home computer

128) Among the choices below, this is the most common reason for companies firing employees.
A) misuse of office phones
B) inappropriate computer use
C) watching online video
D) leaking company secrets

129) This has proved to be very helpful in establishing culpability in sexual harassment cases.
A) monitoring phone calls
B) monitoring emails
C) monitoring employee whereabouts
D) monitoring Internet use

130) What fraction of U.S. employees do personal website surfing every day?
A) less than one-quarter
B) slightly less than half
C) more than half
D) almost all

131) Losses from organizational theft and fraud amount to about ________ per worker.
A) $500
B) $2500
C) $4500
D) $6000
132) An effective feedforward strategy for dealing with employee theft is ________.
A) screen workers before they are hired
B) openly state the real costs of stealing
C) have managers set good examples
D) hire professional investigators

133) An effective concurrent strategy for dealing with employee theft of supplies and equipment is
________.
A) establish theft policies
B) redesign all control measures
C) "lock-out" options on electronic devices
D) video surveillance

134) All of the following are common rationalizations that workers use to justify workplace theft
EXCEPT ________.
A) "Everyone does it."
B) "They'll never miss it."
C) "I deserve this."
D) "I owe money from gambling."

135) In any given week about ________ workers are attacked by coworkers or former coworkers
and seriously injured.
A) 1 percent of all
B) 10
C) 25
D) 100

136) Workplace violence is likely to occur in ________

A) open organic workplaces
B) functional workplaces
C) dysfunctional workplaces
D) both functional or dysfunctional workplaces—violence shows no pattern