Multiple choice questions – Part A 25 marks

Wiley management content Questions (week2, 3, 4, 5,

6, 9, 10, 11, 12)
Week 2
1. Which of the following statements is NOT a guiding principle of scientific
management?

A. Develop for every job a 'science' that includes rules of motion, standardised work
processes and proper working conditions
B. Carefully select workers with the right abilities for the job
C. Carefully train workers to do the job and give them the proper incentives to
cooperate with the job 'science'
D. Do whatever is necessary to achieve the greatest personal gain
E. Support workers by carefully planning their work and by smoothing the way as they
go about their jobs
D

Page 36-37. Factual. Learning objective 1. Scientific management includes four

guiding principles: 1. Develop for every job a 'science'; 2. carefully select workers; 3.
carefully train workers; 4. Support workers.

2. The three branches of the classical approach to management are:

A. Behaviourism, rationalism, and self-actualisation.

B. Scientific management, administrative principles and bureaucratic organisation.
C. Authoritarian, permissive and homoeostatic.
D. Economic, modern and self-actualisation
E. Open, closed and entropic.
B
Page 36. Factual. Learning objective 1. The three branches of the classical approach to
management are scientific management, administrative principles and bureaucratic
organisation
3. According to Frederick Taylor, the principal object of management should be:

A. Profitability
B. Efficiency
C. Achieving the greatest good for the greatest number.
D. The good of the community.

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 E. Securing maximum prosperity for employer and employee.
E
Page 36. Factual. Learning objective 1. According to Frederick Taylor, the principal
object of management should be securing maximum prosperity for employer
coupled with maximum prosperity for the employee.
4. Henri Fayol's __________ closely resemble the __________ that are used in
contemporary businesses.

A. three rules of management; systems and contingency approaches

B. administrative principles; systems and contingency approaches
C. five duties of management; four functions of management
D. notions of planning and organising; ideas of command and coordination
E. principles of collective and social responsibility; functions of management
C
Page 39. Factual. Learning objective 1. Henri Fayol's five 'rules' or 'duties' of management
closely resemble the four functions of management (planning, organising, leading and
controlling) that are used in contemporary businesses.
5. Mary Parker Follett believed that making every employee an owner in the business
would create feelings of:
A. collective responsibility.
B. stockholder ownership.
C. personal control.
D. individual achievement.
E. corporate sharing.
A
Page 39. Factual. Learning objective 1. Mary Parker Follett believed that making every
employee an owner in the business would create feelings of collective responsibility.
6. Weber's conception of bureaucratic organisations included all of the following
characteristics EXCEPT:
A. clear division of labour.
B. clear hierarchy of authority.
C. formal rules and procedures.
D. impersonality.
E. careers based on social and/or political connections.
E
Page 40-41. Factual. Learning objective 2. Bureaucratic organisations portray characteristics
of a clear division of labour, clear hierarchy of authority, formal rules and procedures,
impersonality and career-based merit.

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7.__________ to management assume that people at work seek to satisfy social
relationships, respond to group pressures and search for personal fulfilment.
A. Classical approaches
B. Behavioural approaches
C. Quantitative approaches
D. Socioeconomic approaches
E. Modern approaches
B
Page 41. Factual. Learning objective 2. Behavioural approaches to management maintain
that people are social and self-actualising. People at work are assumed to seek satisfying
social relationships, respond to group pressures and search for personal fulfilment.

8. The behavioural approaches to management include are also known as:

A. the Hawthorne Studies.
B. Maslow's theory of human needs.
C. McGregor's Theory X and Theory Y.
D. Human resource approaches.
E. Argyris's theory of personality and organisation.
D
Page 41. Factual. Learning objective 2. During the 1920s, an emphasis on the human side of
the workplace began to establish its influence on management thinking. Major branches
that emerged in this behavioural or human resource approach include Hawthorne studies,
Maslow's theory of human needs, Theory X and Theory Y by McGregor and personality and
organisation by Argyris.
9. Which one of the following statements does NOT accurately describe the illumination
experiments of the Hawthorne Studies or one of the experiments conducted in response
to the results found in the illumination experiments?
A. The researchers expected that better lighting would improve performance.
B. The researchers found that performance increased whether lighting was better or
poorer.
C. The researchers concluded that these unexpected results were due to unforeseen
psychological factors.
D. The researchers explored various psychological and social factors in additional
experiments.
E. The researchers failed to confirm the results of the illumination experiments with
their additional studies.
E

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Page 42-43. Factual. Learning objective 2. The initial Hawthorne studies sought to determine
how economic incentives and physical conditions of the workplace affected the output of
the workers. An initial focus was on the level of illumination in the manufacturing facilities.
The researchers found that performance increased whether lighting was better or poorer
and the researchers concluded that these unexpected results were due to unforeseen
psychological factors.
10. The Hawthorne Studies contributed to the emergence of the __________ movement as
an important influence on management thought during the 1950s and 1960s.
A. modern relations
B. human relations
C. social relations
D. scientific relations
E. cultural relations
B
Page 43. Factual. Learning objective 2. The Hawthorne Studies contributed to the emergence
of the human relations movement as an important influence on management thought
during the 1950s and 1960s.
11. The field of __________ has evolved as the study of individuals and groups in
organisations.
A. workforce relations
B. consumer behaviour
C. human relations
D. organisational behaviour
E. interpersonal relations
D
Page 43. Factual. Learning objective 2. The insights of the human relations movement set
the stage for what has now evolved as the field of organisational behaviour, the study of
individuals and groups in organisations.
12. According to Maslow, __________ refer to the needs for basic biological maintenance
such as food, water, and physical well-being.
A. Physiological needs
B. Safety needs
C. Social needs
D. Esteem needs
E. Self-actualisation needs
A
Page 44. Factual. Learning objective 2. Physiological needs refer to the needs for basic
biological maintenance such as food, water, and physical well-being.

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13. Considering Maslow's theory of human needs, the more that __________ are satisfied,
the stronger they grow.
A. physiological needs
B. safety needs
C. social needs
D. esteem needs
E. self-actualisation needs
E
Page 43. Factual. Learning objective 2. At the level of self-actualisation, the deficit and
progression principles cease to operate and the more this need is satisfied the stronger it
grows.
14. McGregor's Theory X managers believe their subordinates generally:
A. are creative, responsible, and self motivated.
B. are motivated by greed.
C. dislike work, lack ambition, are irresponsible, resistant to change and prefer to be led
rather than to lead.
D. dislike work because they prefer to lead rather than to be led.
E. are basically rational.
C
Page 44. Factual. Learning objective 2. Theory X managers tend to see their subordinates as
irresponsible, resistant to change, lacking in ambition, disliking work, and preferring to be
led rather than to lead.
15. When people act in ways that confirm another's expectations the actions are
displaying a:
A. theory Z assumption.
B. 'command-and-control' assumption.
C. self-fulfilling prophecy.
D. passive subordinate prophecy.
E. self-management prophecy.
C
Page 44. Factual. Learning objective 2. Self-fulfilling prophecies occur when people act in
ways that confirm another's expectations.
16. The use of mathematical techniques to analyse and solve management problems is
known as:
A. management science.
B. operations research.
C. management science or operations research.

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 D. mathematical analysis.
E. mathematical analysis or research science.
C
Page 45. Factual. Learning objective 3. The terms management science and operations
research are often used interchangeably to describe the scientific applications of
mathematical techniques to management problems.
17. Which of the following is NOT a true statement about quantitative analysis in
contemporary business?
A. Operations management focuses on applying quantitative management approaches
to the production of goods and services
B. The human factor can be ignored when using quantitative management techniques.
C. Organisations often employ staff specialists to help managers take advantage of
quantitative management approaches
D. Software developments are making quantitative management techniques more
readily available to managers
E. Mathematical solutions must be supported by good managerial judgement
B
Page 46. Factual. Learning objective 3. Mathematical solutions to problems must be
supported by good managerial judgement and an appreciation of the human factor.
18. A system is defined as open because:
A. it is permissive in observing the various principles of management.
B. its subsystems do not relate to one another.
C. it uses Theory X management assumptions.
D. it interacts with its environment in the continual process of transforming resource
inputs into outputs.
E. it treats its employees as responsible adults.
D
Page 47. Factual. Learning objective 4. A system is a collection of interrelated parts
working together for a purpose and an open system transforms resource inputs from the
environment into product outputs.
19. Matching responses to the unique problems and opportunities specific to different
settings is called:
A. Quantitative analysis.
B. Rationalism.
C. The theory of applicability.
D. Contingency thinking.
E. Self-actualisation.

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 D
Page 48. Factual. Learning objective 4. Contingency thinking tries to match managerial
responses with the problems and opportunities specific to different settings, particularly
those posed by individual and environmental differences.
20. Dominant themes in today's business environment include all of the following EXCEPT:
A. continuing pressures for quality
B. continuing pressures for performance excellence
C. an expanding global awareness
D. the importance of new leadership
E. division of labour for efficiency
E
Page 49. Factual. Learning objective 5. Dominant themes in today's business
environment include continuing pressures for quality, continuing pressures for
performance excellence, an expanding global awareness, and the importance of new
leadership.

Week 3
1. An organisation establishes a __________ when it uses a core competency to deal
with market and environmental forces more effectively than its competitors.
A. core advantage
B. market advantage
C. competitive advantage
D. competency advantage
E. management advantage
C
Page 60. Factual. Learning objective 1. A competitive advantage allows an organisation to
deal with market and environmental forces better than its competitors.
2. The __________ consists of all the background conditions in the external
environment of an organisation.
A. task environment
B. specific environment
C. general environment
D. management environment
E. organisational environment
C
Page 61. Factual. Learning objective 1. The general environment is comprised of cultural,
economic, legal-political and educational conditions.
3. Social-cultural conditions in the general environment include:

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A. philosophy and objectives of political parties, as well as laws and governmental
regulations.
B. inflation, income levels, gross domestic product and unemployment.
C. social values regarding human rights and the natural environment, trends in
education and demographic patterns.
D. development and availability of technology in the environment, including scientific
advancements.
E. nature and conditions of the physical environment.
C
Page 62. Factual. Learning objective 1. Socio-cultural conditions include the general state
of prevailing social values on such matters as human rights, trends in education and
related social institutions, as well as demographic patterns.
4. The term that is used to describe the actual organisations, groups, and persons
with whom an organisation must interact in order to survive and prosper is:
A. the general environment.
B. the specific environment.
C. the special environment.
D. the multiple environment.
E. the functional environment.
B
Page 63. Factual. Learning objective 1. The specific environment includes the people and
groups with whom an organisation interacts.

5. __________ are specific organisations that offer the same or similar goods and
services to the same consumer or client groups.
A. Customers
B. Suppliers
C. Employees
D. Competitors
E. Regulators
D
Page 64. Factual. Learning objective 1. Competitors are specific organisations that offer
the same or similar goods and services to the same consumer or client groups.
6. Which of the following statements accurately describes the concept of
environmental uncertainty?
A. Environmental uncertainty means that there is a lack of complete information
regarding what developments will occur in the external environment
B. High environmental uncertainty occurs when the rate of change in the environment
is high and the complexity of the environment is low

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C. Low environmental uncertainty occurs when the rate of change in the environment is
low and the complexity of the environment is high
D. All of the above statements accurately describe environmental uncertainty
E. None of the above statements accurately describe environmental uncertainty
A
Page 64. Factual. Learning objective 1. Environmental uncertainty means that there is a
lack of complete information regarding what developments will occur in the external
environment.
7. Individuals who purchase the goods or services produced by an organisation are
called:
A. merchants.
B. internal customers.
C. external customers.
D. satisfied customers.
E. producers.
C
Page 69. Factual. Learning objective 2. External customers purchase the goods or
services produced by an organisation.
8.__________ involves strategic management of all operations relating an organisation
to the suppliers of its resources, including purchasing, manufacturing, transportation
and distribution.
A. External customer responsiveness
B. Customer relationship management
C. Value chain management
D. Business relationship management
E. Supply chain management
E
Page 70. Factual. Learning objective 3. Supply chain management involves strategic
management of all operations relating an organisation to the suppliers of its resources,
including purchasing, manufacturing, transportation and distribution.
9.__________ involves operating a business or other type of organisation with a
customer-centred focus that strategically tries to build relationships with customers
and add value for them.
A. External customer responsiveness
B. Customer relationship management
C. Value chain management
D. Business relationship management
E. Supply chain management

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 B
Page 70. Factual. Learning objective 2. Customer relationship management strategically
tries to build lasting relationships with, and add value for, customers.
10. The term total quality management is used to describe the process of:
A. training managers to monitor quality and then making them responsible for overall
quality in their areas of responsibility.
B. making quality principles part of the company's strategic objectives and applying
them to all aspects of the company's operations.
C. reducing the need for quality inspections by training employees to be quality
conscious.
D. producing holistic work environments.
E. designing and manufacturing quality products.
B
Page 71. Factual. Learning objective 4. Total quality management is managing with
commitment to continuous improvement, product quality and customer satisfaction.
11. Continuous improvement is the attempt to:
A. continually watch quality control to detect errors.
B. maintain the quality advantage by always looking for new ways to improve current
performance.
C. look for ways to confirm current production methods.
D. seek competitive marketing opportunities.
E. monitor future production.
B
Page 72. Factual. Learning objective 4. Continuous improvement involves always
searching for new ways to improve operations quality and performance.
12.__________ allows processes to be changed quickly and efficiently to produce
different products or modifications to existing ones.
A. Flexible manufacturing
B. Mass customisation
C. Lean production
D. Agile manufacturing
E. Customised design
A
Page 73. Factual. Learning objective 4. Flexible manufacturing allows processes to be
changed quickly and efficiently to produce different products or modifications to existing
ones.
13. Which of the following is NOT a characteristic of a multicultural organisation:

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A. prejudice and discrimination.
B. pluralism.
C. structural integration.
D. informal network integration.
E. minimum intergroup conflict.
A
Page 74. Factual. Learning objective 5. The truly multicultural organisation has these
characteristics: pluralism, structural integration, informal network integration, absence
of prejudice and discrimination, and minimum intergroup conflict.
14. When various forms of mentoring and support groups assist in the career
development of minority-culture members, this is known as:
A. the absence of prejudice and discrimination.
B. pluralism.
C. structural integration.
D. informal network integration.
E. minimal intergroup conflict.
D
Page 74. Factual. Learning objective 5. Informal network integration occurs when various
forms of mentoring and support groups assist in the career development of minority-
culture members.
15.__________ describe(s) the presence of differences among people at work.
A. Workforce characteristics
B. Differential attributes
C. Diversity
D. Personality dimensions
E. Alternative characteristics
C
Page 74. Factual. Learning objective 5. Diversity is a term used to describe differences
among people at work. Diversity includes mainly age, race, ethnicity, gender, physical
ability, disability, personality, culture and sexual orientation.
16.__________ are common to groups of people with similar values and beliefs based
upon shared work responsibilities and personal characteristics.
A. Self-managed teams
B. Work teams
C. Subcultures
D. Social groups
E. Separate cultures
C

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Page 74. Factual. Learning objective 5. Subcultures are common to groups of people with
similar values and beliefs based upon shared work responsibilities and personal
characteristics.
17.'Baby boomers' who are now in their 50s and 60s show different values and
attitudes towards work when compared to colleagues in their 20s and early 30s. This is
the influence of:
A. occupational cultures.
B. functional subcultures.
C. generational subcultures.
D. ethnic cultures.
E. national cultures
C
Page 75. Factual. Learning objective 5. We live at a time when the influence of
generational subcultures at work is of growing importance. It is possible to identify
'generational gaps' among 'baby boomers', 'generation Xers', 'generation Yers' and the
'next generation'.
18.__________ is the process of comprehensively developing a work environment that
is for everyone.
A. Inclusion management
B. Managing diversity
C. Workplace management
D. Environmental development
E. High involvement management
B
Page 78. Factual. Learning objective 5. Managing diversity is building an inclusive work
environment that allows everyone to reach their full potential.
19. When an organisation commits to hiring and advancing minority groups and
women, they are engaging in a practice known as:
A. inclusion management.
B. affirmative action.
C. workplace management.
D. managing diversity.
E. valuing differences.
B
Page 79. Factual. Learning objective 5. Affirmative action commits the organisation to
hiring and advancing minority groups and women.

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 20. Which of the following statements accurately describe the relationship(s) between
a diverse workforce and organisational competitive advantage?
A. A diverse workforce offers a rich pool of talents, ideas and viewpoints useful for
solving complex problems
B. When well-managed, diversity becomes a major asset
C. A diverse workforce is best aligned with the needs and expectations of a diverse
customer and supplier base
D. All of the options listed
E. None of the options listed
D
Page 79. Factual. Learning objective 5. Statements in A, B and C all accurately describe the
relationship(s) between a diverse workforce and organisational competitive advantage.

Week 4
1. The worldwide interdependence of resource supplies, product markets and
business competition characterises the age of:
A. Trans-Asian management.
B. the European Union.
C. free trade.
D. a global economy.
E. the multinational economy.
D
Page 89. Factual. Learning objective 1. In the global economy, resources, markets and
competition are worldwide in scope.
2. Management activity that takes place in organisations with business interests in
more than one country is known as:
A. international management.
B. transnational interdependence.
C. globalisation.
D. trans-regional management.
E. multinational economics.
A
Page 90. Factual. Learning objective 1. International management involves managing
operations in more than one country.
3. Which of the following statements does NOT accurately characterise the Asian
economy at the beginning of the 21st century?

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 A. Asian countries are well positioned to take advantage of economic recoveries.
B. China is the world's largest consumer marketplace.
C. Asia has attained superpower status in the world economy.
D. Asian economies are expected to become larger than those of the E.U.
E. Asia has limited long-term potential in the global marketplace.
E
Page 91. Factual. Learning objective 1. Asia has attained superpower status in the world
economy. China is the world's largest consumer marketplace. Asian and Pacific Rim
economies are expected to become larger than those of the current European Union as they
are well positioned to take advantage of economic recoveries.
4. Which of the following is NOT one of the agreements among the member nations
of the European Union?
A. Lifting competitive barriers in banking and insurance
B. Restricting government procurement of a member nation to businesses
headquartered in that member nation
C. Eliminating frontier controls and trade barriers
D. Creating uniform minimum technical product standards
E. Creating a common currency
B
Page 94. Factual. Learning objective 1. Among the important business and economic
developments in the EU are agreements to eliminate frontier controls and trade barriers,
create uniform minimum technical product standards, open government procurement, lift
competitive barriers in banking and insurance, and even offer a common currency – the
euro.
5. The agreement that creates a free flow of goods and services, workers and
investments among the United States, Canada and Mexico is the:
A. Transcontinental Trade Zone (TTZ).
B. Free Trade Area of the Americas (FTAA).
C. Northern Hemisphere Free Trade Association (NHFTA).
D. North American Free Trade Agreement (NAFTA).
E. Integrated Americas Trade Alliance (IATA).
D
Page 95. Factual. Learning objective 1. NAFTA is the North American Free Trade Agreement
linking Canada, the USA and Mexico in a regional economic alliance.
6. When the central government makes basic economic decisions for an entire nation,
it is known as:
A. a maquiladoras.
B. a free-trade economy.
C. a privileged economy.

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 D. a free-market economy.
E. a central-planning economy.
E
Page 97. Factual. Learning objective 2. Countries such as Russia, Poland, Estonia and others
of the former Soviet Union used to operate with central-planning economies. That is, the
central government made basic economic decisions for an entire nation.
7. The forces that drive companies into international business include the search for
_________ – global operations offer access to financial resources
A. raw materials
B. capital
C. profits
D. lower labour costs
E. new customer markets
B
Page 97. Factual. Learning objective 2. The reasons for international business, the forces that
drive companies to the marketplaces of the world, include the search for capital – global
operations offer access to financial resources.
8. Which of the following statements is NOT an accurate description of post-apartheid
South Africa?
A. South Africa is experiencing economic recovery and attracting outside investors
B. South Africa accounts for half the African continent's purchasing power
C. Foreign investment in South Africa decreased sharply after minority white rule ended
D. Australia's exports to South Africa have more than doubled
E. New Zealand's exports to South Africa have more than trebled
C
Page 97. Factual. Learning objective 2. Since the end of apartheid (1993–94), Australia's
exports to South Africa have more than doubled and it is Australia's largest trading partner
on the African continent. South Africa is Australia's 20th largest trading partner in the world.
9. The __________ is an international organisation that monitors international trade
and tries to resolve trade disputes among countries.
A. United Nations
B. World Trade Organization
C. International Trade Council
D. International Monetary Fund
E. World Court
B
Page 98. Factual. Learning objective 2. In the World Trade Organization (WTO), member
nations agree to negotiate and resolve disputes about tariffs and trade restrictions.

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 10. Which of the following statements about the legal environment of international
business is false?
A. Legal environments vary widely from country to country
B. Organisations are expected to follow the laws of the host company in which they are
operating
C. International businesses have greater difficulty in adapting to host company ways
when home and host company laws differ significantly
D. Encouraging international trade and protecting domestic industries can lead to
conflicting laws
E. Organisations with operations in many countries are expected to use the laws of the
nation where their corporate headquarters is located to guide all operations
E
Page 98. Factual. Learning objective 2. Legal environments vary widely from place to place,
and organisations are expected to abide by the laws of the host country in which they are
operating.
11. The manufacture and/or purchase of component parts from different countries for
final assembly of a product is the international business form known as:
A. exporting/importing.
B. licensing.
C. global sourcing.
D. direct investment.
E. joint venture.
C
Page 99. Factual. Learning objective 2. In global sourcing, materials or services are
purchased around the world for local use.
12. A firm that establishes a direct investment in a foreign country in cooperation with
local firms in that country is engaging in:
A. a licensing agreement.
B. a management contract.
C. a joint venture.
D. an overseas investment fund.
E. an import/export arrangement.
C
Page 99. Factual. Learning objective 2. Joint ventures establish operations in a foreign
country through joint ownership with local partners.
13. Host countries sometimes complain about the presence of multinational
corporations (MNCs). These complaints include all of the following EXCEPT:
A. MNCs may dominate the local economy.

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 B. MNCs may export jobs to other countries.
C. MNCs fail to market products or services needed in the local economy.
D. MNCs may fail to transfer advanced technology.
E. MNCs fail to help domestic firms develop.
C
Page 102. Factual. Learning objective 3. It has been claimed MNCs extract excessive profits,
dominate the local economy, interfere with the local government, do not respect local
customs and laws, fail to help domestic firms develop, hire the most talented of local
personnel and do not transfer their most advanced technologies.
14. Ethical issues in international business include which of the following?
A. Sweatshop operations that employ local labour at low wages and often in poor
working conditions
B. Usage of child labour in the manufacture of handmade products
C. Protection of the natural environment from pollution
D. All of the options listed
E. None of the options listed
D
Pages 103-104. Factual. Learning objective 3. Corruption, sweatshops, use of child labour,
and environmental protection are key ethical issues in international business.
15. __________ cultures are those in which most communication takes place via the
spoken or written word.
A. Low-context
B. Middle-context
C. High-context
D. Corporate
E. Organisational
A
Page 105. Factual. Learning objective 4. Low-context cultures emphasise communication via
spoken or written words.

16. Hofstede defined his uncertainty avoidance dimension of national culture as:
A. the degree to which a society tolerates risk and situational uncertainties.
B. the degree to which a society accepts a hierarchical or unequal distribution of power
in organisations.
C. the degree to which a society emphasises individual self-interests versus the
collective values of groups.
D. the degree to which a society emphasises assertiveness and material concerns versus
greater concerns for human relationships and feelings.

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 E. the degree to which a society emphasises short-term considerations versus greater
concern for the future.
A
Page 107. Factual. Learning objective 4. Uncertainty avoidance dimension is the degree to
which a society tolerates risk and situational uncertainties.

17. Hofstede defined his time orientation dimension of national culture as:
A. the degree to which a society tolerates risk and situational uncertainties.
B. the degree to which a society accepts a hierarchical or unequal distribution of power
in organisations.
C. the degree to which a society emphasises individual self-interests versus the
collective values of groups.
D. the degree to which a society emphasises assertiveness and material concerns versus
greater concerns for human relationships and feelings.
E. the degree to which a society emphasises short-term considerations versus greater
concern for the future.
E
Page 107. Factual. Learning objective 4. Time orientation is the degree to which a society
emphasises short-term considerations versus greater concern for the future.
18. According to Fons Trompenaars, __________ is the degree to which a culture
emphasises an earned or performance-based status in relationships or awards
status based on social standing and non-performance factors.
A. individualism versus collectivism
B. universalism versus particularism
C. neutral versus affective
D. specific versus diffuse
E. achievement versus prescription
E
Page 109. Factual. Learning objective 4. Achievement versus prescription is the degree to
which a culture emphasises an earned or performance-based status in relationships or
awards status based on social standing and non-performance factors.
19. Employees who live and work in foreign countries on short-term or long-term
assignments undergo 'repatriation', defined as:
A. assigning foreign operations to 'home-office' personnel.
B. when the expatriate manager first arrives in a foreign country.
C. when the expatriate manager goes home.
D. the cultural adaptation that an expatriate manager must make when arriving home.
E. the cultural adaptation that an expatriate manager must make when first arriving in a
foreign country.

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 C
Page 111. Factual. Learning objective 5. Repatriation occurs when the expatriate manager
goes home.
20. Which of the following statements accurately describes the Japanese practice
known as keiretsu?
A. The companies involved own shares in one another
B. They are long-term industry alliances or business groups
C. The boards of the companies involved often overlap
D. All of the options listed
E. None of the options listed
D
Page 112. Factual. Learning objective 5. Context also counts in evaluating management and
organisational practices. In Japan, keiretsu are long-term industry alliances or business
groups that link together various businesses – manufacturers, suppliers and finance
companies – to attain common interests. The companies involved own shares in one
another, their boards often overlap and they often do business with one another on a
preferential basis.

Week5
1. __________ is the process of inspiring others to work hard to accomplish important
tasks.
A. Management
B. Motivating
C. Culture building
D. Leading
E. Teamwork
D
Page 339. Factual. Learning Objective 1. Leading is the process of inspiring others to work
hard to accomplish important tasks; it is about arousing enthusiasm and directing efforts
towards organisational goals.
2. The principles for meeting the challenges of visionary leadership include all of the
following EXCEPT:
A. be a pioneer, encouraging innovation and supporting people who have ideas.
B. inspire others through personal example to share in a common vision.
C. be a team player and support the efforts and talents of others.
D. keep emotion out of the workplace.
E. provide a consistent model of how others can and should act.
D

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 Page 340. Factual. Learning Objective 1. The principles for meeting the challenges of
visionary leadership include: challenge the process, show enthusiasm, help others to act, set
the example and celebrate achievements. Keeping emotions out of workplace is not one of
the challenges.
3. Reward power, coercive power, and legitimate power are different types of:
A. formal leadership.
B. position power.
C. informal leadership.
D. personal power.
E. directive leadership.
B
Page 341. Factual. Learning Objective 1. One important source of power is a manager's
official status, or position, in the organisation's hierarchy of authority. The three types of
position power are reward power, coercive power and legitimate power.
4. __________ is the capacity to offer something of value — a positive outcome — as
a way of influencing the behaviour of other people.
A. Legitimate power
B. Expert power
C. Coercive power
D. Referent power
E. Reward power
E
Page 341. Factual. Learning Objective 1. Reward power is the capacity to offer something of
value as a way of influencing other people.
5. Ralph makes it a point to always offer help in technical areas in which he is skilled
and knowledgeable. His subordinates trust his judgement, and form one of the
most productive units in the company. What type of power is Ralph exerting?
A. Legitimate power
B. Expert power
C. Coercive power
D. Referent power
E. Reward power
B
Page 341. Applied. Learning Objective 1. Expert power is the ability to influence through
special expertise. It is the capacity to influence the behaviour of other people because they
recognise your knowledge, understanding and skills.
6. In the acceptance theory of authority, there are certain conditions that determine
whether a leader's directives will be followed and true influence achieved. Which
of the following is NOT one of these conditions?

20
 A. The other person must truly understand the directive
B. The other person must feel capable of carrying out the directive
C. The other person must be motivated to carry out the directive
D. The other person must believe that the directive is in the organisation's best interests
E. The other person must believe that the directive is consistent with personal values
C
Page 342. Factual. Learning Objective 1. Chester Barnard developed the acceptance theory
of authority. Within this theory he identified four conditions that determine whether a
leader's directives will be followed and true influence achieved. All except C illustrate these
four conditions.
7. Leadership through empowerment can be exercised by:
A. getting others involved in selecting work assignments and methods for accomplishing
them.
B. finding out what others think and letting them help design the solutions.
C. maintaining high morale and confidence by recognising success and encouraging high
performance.
D. all of the options listed.
E. none of the options listed.
D
Page 343. Factual. Learning Objective 1. Leadership through empowerment can be exercised
by getting others involved in selecting work assignments and methods for accomplishing
them, finding out what others think and letting them help design the solutions, and
maintaining high morale and confidence by recognising success and encouraging high
performance.
8. Which of the following statements accurately describe the search for traits that
characterise effective leaders?
A. Researchers have been unable to isolate a definitive profile of effective leadership
traits
B. Research indicates that physical traits such as height, weight and physique have no
relationship to leadership success
C. Some personal traits, such as drive, self-confidence, creativity, cognitive ability,
business knowledge, motivation, flexibility, and honesty and integrity are considered
to be important for leadership success
D. All of the above statements are accurate
E. None of the above statements are accurate
D
Page 344. Factual. Learning Objective 2. Statements A, B and C all describes the search for
traits that characterise effective leaders.

21
 9. Behavioural theories of leadership tend to focus on two dimensions of leadership
style: concern for the __________ and concern for the _________.
A. employee; people
B. employee; employer
C. structure; people
D. task; process
E. task; people
E
Page 345. Factual. Learning Objective 2. Most research in the leader behaviour tradition
focused on two dimensions of leadership style: concern for the task to be accomplished and
concern for the people doing the work.
10. Fiedler's contingency research suggests that a _____________ leader will be most
successful in either very favourable (high-control) or very unfavourable (low-
control) situations.
A. task-oriented
B. relationship-oriented
C. employee-centred
D. older
E. younger
A
Page 348. Factual. Learning Objective 3. Fiedler's research suggests that neither the task-
oriented nor the relationship-oriented leadership style is effective all the time. A task-
oriented leader will be most successful in either very favourable or very unfavourable
situations. A relationship-oriented leader will be most successful in situations of moderate
control.
11. The extent to which task goals, procedures and guidelines are clearly spelled out is
called:
A. leader-member relations.
B. position power.
C. leadership style.
D. task structure.
E. situational control.
D
Page 348. Factual. Learning Objective 3. The extent to which task goals, procedures and
guidelines are clearly spelled out is called task structure.
12. Assume you are the supervisor of a group of bank tellers. Your subordinates are
highly supportive, their jobs are well defined, and you have clear authority to
evaluate and reward their performance. Which of the following leadership styles
would be most recommended based upon Fiedler's theory?

22
 A. Task-oriented
B. Relationship-oriented
C. Human relations
D. Team-oriented
E. Achievement-oriented
A
Page 348. Applied. Learning Objective 3. This is a high-control situation consisting of good
leader-member relations, high task structure and high position power. Therefore, task-
motivated leadership would be most effective in this situation.
13. Malcolm is not very capable of performing his job in terms of ability, willingness,
and confidence. According to Hersey and Blanchard, which style would work best
in this situation?
A. Telling
B. Selling
C. Directing
D. Delegating
E. Participating
A
Page 349. Applied. Learning Objective 3. According to Hersey and Blanchard's situational
leadership model, the telling style works best when followers are unable, unwilling, and
insecure.
14. Catherine has just been promoted to senior editor of a well-known magazine. She
has worked extensively with the assistant editors, who she now supervises. She
knows that the assistant editors are very capable workers whose decisions she can
trust. Which leadership style does House's path-goal model predict to be effective
in this situation?
A. Achievement-oriented
B. Directive
C. Participative
D. Autocratic
E. Supportive
C
Page 351. Applied. Learning Objective 3. In House's path-goal leadership theory,
participative leadership suggests that managers involve subordinates in decision making by
consulting with them, asking them for suggestions and using these suggestions when making
a decision.
15. Aspects of the work setting and the people involved that can reduce the need for a
leader's personal involvement are referred to as:
A. leadership aids.

23
 B. corporate baby-sitters.
C. leader clones.
D. substitutes for leadership.
E. mock leaders.
D
Page 352. Factual. Learning Objective 3. Substitutes for leadership are factors in the work
setting that direct work efforts without the involvement of a leader.
16. According to the Vroom-Jago leader-participation model, a(n) __________ occurs
when the leader makes the decision alone and then communicates it to the work
group.
A. authority decision
B. delegating decision
C. power-oriented decision
D. consultative decision
E. group decision
A
Page 352-53. Factual. Learning Objective 3. Within the Vroom-Jago leader-participation
model, an authority decision is a decision made by the leader and then communicated to
the group.
17. ____________ leadership is inspirational leadership that gets people to achieve
extraordinary performance.
A. Participative
B. Charismatic
C. Transformational
D. Transactional
E. Old-fashioned
C
Page 354. Factual. Learning Objective 4. Transformational leadership is leadership that is
inspirational leadership that gets people to achieve extraordinary performance.
18. Emotional intelligence is the ability to manage ourselves and our relationships
effectively. The ability to understand our own moods and emotions is known as:
A. social skill.
B. empathy.
C. self-awareness.
D. self-regulation.
E. motivation.
C

24
Page 356. Factual. Learning Objective 4. Self-awareness is an ability to understand our own
moods and emotions, and understand their impact on our work and on others.
19. Society expects organisations to be run with ___________ — by ethical standards
that clearly meet the test of being 'good' and 'right'.
A. self-regulation
B. personal integrity
C. moral leadership
D. integrity
E. authentic leadership
C
Page 358. Factual. Learning Objective 4. Moral leadership is always 'good' and 'right' by
ethical standards.
20. The Blake and Mouton Leadership Grid identifies alternative leadership styles that
reflect different combinations of:
A. concern for task and concern for people.
B. consideration and employee-centeredness.
C. consideration and relationship orientation.
D. initiating structure and job-centeredness.
E. initiating structure and task orientation.
A
Pages 345-46. Factual. Learning Objective 4. The Blake and Mouton Leadership Grid
identifies alternative leadership styles that reflect different combinations of concern for task
and concern for people.

Week 6
1. Controlling is the management function that:
A. sets directions and allocates resources.
B. brings people and material resources together.
C. inspires people in the use of resources.
D. ensures that the right things happen, in the right way, at the right time.
E. monitors and manipulates new employees.
D
Page 274. Factual. Learning Objective 1. The definition of controlling is 'the process of
measuring performance and taking action to ensure desired results'.
2. A self-monitoring and self-correcting control system is referred to as:
A. intelligent.
B. automated.
C. Cybernetic.
D. self-contained.

25
 E. programmed.
C
Page 275. Factual. Learning Objective 1. A cybernetic control system is self-contained in its
performance monitoring and correction capabilities.
3. The four steps of the control process are: establish performance objectives and
standards; __________; compare actual performance with objectives and standards,
and __________.
A. measure actual performance, take corrective action as needed
B. develop alternative systems, take corrective action as needed
C. revise unmet objectives, pay for the losses
D. set new objectives, evaluate results
E. measure actual performance, continue as before
A
Page 275. Factual. Learning Objective 1. The management control process involves four
steps: establish objectives and standards; measure actual performance; compare results
with objectives and standards; and take corrective action as needed.
4. __________ measure performance results in terms of quantity, quality, cost or time.
A. Input standards
B. Output standards
C. Annual reports
D. Inventories
E. Time-card summaries
B
Page 276. Factual. Learning Objective 1. Output standards measure performance results in
terms of quantity, quality, cost or time.
5. Techniques used by managers to assess organisational performance can include:
A. analysing statistical data.
B. analysing quantitative data.
C. analysing qualitative data.
D. observation.
E. all of the options listed.
E
Page 276. Factual. Learning Objective 1. Measuring actual outcomes can be achieved by
analysis of statistical/quantitative data from a variety of internal and external sources, and
qualitative data, including that acquired by observation.
6. A manager can determine the need for corrective action by using __________
comparison measures.
A. Historical

26
 B. Relative
C. Engineering
D. all of the options listed
E. none of the options listed
D
Page 276. Factual. Learning Objective 1. A manager can determine the need for corrective
action by using historical comparisons, relative comparisons and engineering comparison
measures.
7. If Woolworths uses the performance achievements of its grocery departments as a
benchmark for its general merchandise departments, this would be an example of:
A. qualitative comparison.
B. engineering comparison.
C. relative comparison.
D. historical comparison.
E. controlling.
C
Page 276. Applied. Learning Objective 1. A relative comparison uses the performance
achievements of other people, work units or organisations as the evaluation standard.
8. The healthcare facility that monitors the results of surgical procedures in terms of
resources expended and benefits achieved is using _______________ processes to
inform its decision-making.
A. management by objectives
B. management by exception
C. after-action review
D. contingency
E. benchmarking
C
Page 277. Applied. Learning Objective 1. The healthcare facility that monitors the results of
surgical procedures in terms of resources expended and benefits achieved is using after-
action review processes to inform its decision-making.
9. Which type of control ensures that performance objectives are clear and that the
correct resources are in place to accomplish them?
A. Damage control
B. Steering control
C. Feedback control
D. Feedforward control
E. Post-action control
D

27
 Page 278. Factual. Learning Objective 2. Feedforward controls ensure that directions and
resources are right before the work begins.

10. A concurrent control system focuses on:

A. work inputs.
B. work objectives.
C. work throughputs.
D. work responsibilities.
E. work outputs.
C
Page 278. Factual. Learning Objective 2. Concurrent controls focus on what happens during
the work process. They monitor ongoing operations and activities to make sure things are
being done according to plan. Therefore a shift supervisor working alongside employees is
an example of concurrent control.
11. A post-action control system focuses on:
A. work inputs.
B. work objectives.
C. work throughputs.
D. work responsibilities.
E. work outputs.
E
Page 280. Factual. Learning Objective 2. Post-action or feedback controls focus on the quality
of end results rather than on inputs and activities.
12. Internal control occurs when:
A. motivated individuals and groups are directly supervised.
B. computers are used to monitor performance inside the organisation.
C. motivated individuals and groups exercise self-discipline in fulfilling job
requirements.
D. managers take responsibility for the activities in their own departments.
E. motivated managers defend the organisation against outside competitive attacks.
C
Page 280. Factual. Learning Objective 2. Internal control occurs when motivated individuals
and groups exercise self-discipline in fulfilling job requirements.
13. Which of the following management perspectives supports the concept that most
people are willing to exercise internal control in their work?
A. McGregor's Theory X
B. McGregor's Theory Y
C. Maslow's hierarchy of needs

28
 D. Herzberg's two-factor theory
E. Adams' equity theory
B
Page 280. Factual. Learning Objective 2. Douglas McGregor's Theory Y perspective (see the
chapter on the historical foundations of management) recognises the willingness of people
to exercise self-control in their work.
14. Bureaucratic control influences behaviour through:
A. authority, policies, procedures, job descriptions, budgets and day-to-day supervision.
B. norms and expectations set by the organisation culture.
C. the influence of market competition.
D. all of the options listed.
E. none of the options listed.
A
Page 280. Factual. Learning Objective 2. Bureaucratic control is a classic form of external
control that uses authority, policies, procedures, job descriptions, budgets and day-to-day
supervision to make sure that people's behaviour is consistent with organisational interests.
15. _______________ influences behaviour through norms and expectations set by the
organisational culture.
A. Market control
B. Clan control
C. Internal control
D. External control
E. Bureaucratic control
B
Page 281. Factual. Learning Objective 3. Clan control influences behaviour through norms
and expectations set by the organisational culture.
16. In progressive discipline, the goal always is to achieve compliant with organisational
expectations through the __________ reprimand possible.
A. most extreme
B. least noticeable
C. least extreme
D. most noticeable
E. most socially acceptable
C
Page 282. Factual. Learning Objective 3. In progressive discipline, the goal always is to
achieve compliance with organisational expectations through the least extreme reprimand
possible.
17. The ability to generate cash to pay bills is known as:

29
 A. liquidity.
B. leverage.
C. profitability.
D. debt.
E. return on investment.
A
Page 283. Factual. Learning Objective 3. Liquidity is the ability to generate cash to pay bills.
18. Inventory control by ______________ orders replacement stock whenever inventory
levels fall to a predetermined point.
A. the reorder point method
B. just-in-time scheduling
C. procurement
D. centralisation
E. quality control
A
Page 285. Factual. Learning Objective 3. The reorder point method of inventory control
involves ordering replacement stock each time an inventory level falls to a predetermined
point.
19. A 'balanced scorecard' approach to management control includes keeping score of:
A. financial performance
B. customer satisfaction
C. internal process improvement
D. innovation and learning
E. all of the options listed
E
Page 288. Factual. Learning Objective 3. A balanced scorecard tallies organisational
performance in financial, customer service, internal process and learning and innovation
areas.
20. Planning and controlling must work together. A useful technique for integrating them
in day-to-day practice is:
A. clan control.
B. just-in-time management.
C. management by objectives (MBO).
D. project management.
E. none of the options listed.
C
Page 289. Factual. Learning Objective 3. While financial controls are a vital part of an overall
managerial control system, the emphasis in operations management is on using people,

30
 resources and technology to the best advantage, hence to focus on purchasing control,
inventory control and statistical quality control.

Week 9
1. Learning organisations continuously change and improve using the lessons of
experience. They share all but which one of the following characteristics?
A. Learning spaces are provided
B. There is a willingness to experiment
C. Mistakes are reprimanded
D. Diversity is celebrated
E. Learning is rewarded
C
Pages 434. Factual. Learning Objective 1. The learning organisation is characterised by: a
provision of learning spaces, a willingness to experiment, no blame – mistakes are seen as an
opportunity to learn, a celebration of diversity, a truly shared vision and rewarded learning.
2. Jo is a change leader who has built a learning organisation which has remained
competitive even in difficult and uncertain times. She has the ability to anticipate,
envision, maintain flexibility, think strategically and work with others to initiate
changes that will create a viable future for her organisation. Jo is practicing:
A. flexible management.
B. the utilisation of inventions.
C. innovation.
D. strategic leadership.
E. change management.
D
Page 434. Applied. Learning Objective 1. Strategic leaders are change leaders who build
learning organisations and keep them competitive even in difficult and uncertain times.
Strategic leadership requires the ability to anticipate, envision, maintain flexibility, think
strategically and work with others to initiate changes that will create a viable future for her
organisation.
3. Discovering a potential product or a way to modify an existing product involves the
__________ step of the product innovation process.
A. initial experimentation
B. feasibility screening
C. idea creation
D. feasibility determination
E. final application
C

31
Pages 435-36. Factual. Learning Objective 1. Idea creation is discovering a potential product
or way to modify an existing one.
4.__________ is the stage of the product innovation process in which ideas are shared
with others and prototypes are tested.
A. Idea creation
B. Initial experimentation
C. Feasibility determination
D. Feasibility screening
E. Final application
B
Page 436. Factual. Learning Objective 1. Initial experimentation is the stage of the product
innovation process in which ideas are shared with others and prototypes are tested.
4. In any innovative organisation there are critical innovation roles including
_____________ — the people who perform the technical functions needed to keep
a new project on track.
A. idea generators
B. project managers
C. product champions
D. innovation leaders
E. information gatekeepers
B
Page 437. Factual. Learning Objective 1. Project managers are the people who perform the
technical functions needed to keep a new project on track with all the necessary resource
support.
5. Top-down change is initiated and directed by top management. It usually includes
all of the following implications EXCEPT:
A. top-down change may be perceived as insensitive to the needs of lower-level
personnel.
B. top-down change may encounter excessive resistance.
C. top-down change relies on the willingness of middle-level and lower-level managers
to actively support top-management initiatives.
D. top-down change can be implemented effectively through the use of force.
E. top-down change may fail due to insufficient commitment to change.
D
Page 440. Factual. Learning Objective 2. Statements A, B, C and E all illustrate the issues
faced by an organisation initiating a top-down change.

32
7.__________ occurs when the initiatives for change come from persons throughout an
organisation and are supported by the efforts of middle-level and lower-level managers
acting as change agents.

A. Top-down change
B. Bottom-up change
C. Theory O change
D. Outside-in change
E. Inside-out change
B
Page 441. Factual. Learning Objective 2. Bottom up change comes from and is implemented
by people throughout the organisation, not only from top-level managers.
8. The discrepancy between the desired and actual state of affairs is the:
A. unexpected result.
B. performance gap.
C. unplanned deficiency.
D. planning differential.
E. change differential.
B
Page 442. Factual. Learning Objective 2. A performance gap is a discrepancy between the
desired and actual state of affairs.
9. __________ for change arise when a change in one part of the organisational
system creates the need for change in another part of the system
A. Global forces
B. External forces
C. Interdepartmental forces
D. Internal forces
E. Managerial forces
D
Page 442. Factual. Learning Objective 2. Any change in one part of the organisation can often
create the need for change in another part of the system.
10. __________ is the change phase in which a situation is prepared for change and felt
needs for change are developed.
A. Unfreezing
B. Sensing
C. Changing
D. Refreezing
E. Refocusing

33
 A
Page 445. Factual. Learning Objective 3. Unfreezing is the change phase in which a situation
is prepared for change and felt needs for change are developed.
11. Suppose that a manager uses special knowledge, empirical data and rational
argument to bring about change. This manager is relying on the __________
change strategy.
A. normative re-educative
B. rational persuasion
C. unfreezing-refreezing
D. facilitation-support
E. force-coercion
B
Page 447. Applied. Learning Objective 3. Change agents using a rational persuasion strategy
attempt to bring about change through persuasion, backed by special knowledge, empirical
data and rational argument.
12. A manager who shares power with other people, acts in a participative manner
during decision-making, and uses group process effectively in the attempt to
accomplish change is using a(n) __________ change strategy.
A. force-coercion
B. normative re-educative
C. rational persuasion
D. empirical-rational
E. human relations
B
Page 447. Factual. Learning Objective 3. A normative re-educative strategy is based on
empowerment and is highly participative in nature.
13. Which of the following is NOT a reason why people resist planned change?
A. Loss of face
B. Poor timing
C. Disrupted habits
D. Selfishness
E. Work overload
D
Page 449. Factual. Learning Objective 3. People resist planned change because of fear of the
unknown, disrupted habits, loss of confidence, loss of control, poor timing, work overload,
loss of face and lack of purpose.

34
 14. Threatening and/or reminding employees of undesirable consequences if they do
not agree to proposed changes is the __________ approach to overcoming
resistance to change.
A. manipulation and co-optation
B. explicit and implicit coercion
C. facilitation and agreement
D. facilitation and support
E. participation and involvement
B
Page 450. Factual. Learning Objective 3. Explicit and implicit coercion forces people to accept
change by threatening resistors with a variety of undesirable consequences if they do not go
along as planned.
15. Niki works in a _____________________; a web-based organisation that depends
largely on customer participation. The organisation has very little infrastructure
and strategic alliances are continually shifting.
A. changing environment
B. global department
C. virtual organisation
D. non-hierarchical structure
E. resource pooling company
C
Page 451. Applied. Learning Objective 3. Virtual organisations are shifting networks of
strategic alliances, linked by technology, with very little infrastructure, that are engaged as
needed.
16. The goal of __________ is to help organisations cope with various pressures for
change while also improving their internal problem solving capabilities.
A. organisation expansion
B. the organisational superstructure
C. strategic management
D. systemic organisational management
E. organisation development
E
Page 455. Factual. Learning Objective 4. The goal of organisational development is to help
organisations cope with various pressures for change while also improving their internal
problem solving capabilities.
17. Stages of the organisation development process include all of the following EXCEPT:
A. establishing a change relationship.
B. gathering and analysing data.
C. conducting an evaluation.

35
 D. establishing a leader.
E. achieving a terminal relationship.
D
Page 456. Factual. Learning Objective 4. A, B, C, and E all illustrate stages of the organisation
development process.
18. Management perceives a performance gap and proceeds to analyse the situation
via a process of systematically collecting data, feeding it back to the organisation
members for action planning, and evaluating results by collecting more data and
repeating the process as necessary. The organisation is using which process?
A. Organisation development process
B. Action research
C. Planned-change process
D. Organisation-innovation process
E. Organisation research
B
Page 456. Factual. Learning Objective 4. Action research is a collaborative process of
collecting data, using it for action planning and evaluating the results.
19. Which of the following is a correct description of individual interventions in
organisation development?
A. Management training is an unstructured session where participants learn
interpersonal skills and increased sensitivity to other people.
B. Sensitivity training involves structured educational opportunities for developing
important managerial skills and competencies.
C. Job redesign focuses on structured interactions to clarify and negotiate role
expectations among people who work together.
D. Role negotiation involves realigning task components to better fit the needs and
capabilities of the individual.
E. Career planning provides structured advice and discussion sessions to help
individuals plan career paths and programs of personal development.
E
Page 457. Factual. Learning Objective 4. Statements A, B, C and D are all incorrectly worded
and only E accurately describes the role of career planning in individual interventions in
organisational development.
20. Building a combination of personal attributes that allow you to consistently
outperform others in meeting the needs of your employer involves establishing
and maintaining:
A. a sustainable career advantage.
B. competitive advantage.
C. personal attributes.

36
 D. continuous learning skills.
E. self-management.
A
Page 451. Factual. Learning Objective 5. Sustainable career advantage is a combination of
personal attributes that allow you to consistently outperform others in meeting the needs of
employers.

Week 10
1. __________ reflect(s) the moral principles of a person or group that sets standards
as to what is 'good' versus 'bad' or 'right' versus 'wrong' in one's conduct, and
thereby guides the behaviour of a person or group.
A. Group norms
B. Legal behaviour
C. Ethics
D. Civil law
E. Humanistic behaviour
C
Page 122. Factual. Learning Objective 1. Ethics sets standards as to what is good or bad, or
right or wrong in a person's conduct.
2. Which statement accurately describes the relationship between law and ethics?
A. Even though an action is legal, it may not be ethical
B. An action that is not illegal is without question an ethical action
C. Living up to the 'letter of the law' is a sufficient guarantee that a person's actions are
truly ethical
D. All of the options listed
E. None of the options listed
A
Page 123. Factual. Learning Objective 1. Living up to 'the letter of the law' is not sufficient to
guarantee that your actions will or should be considered ethical.
3. The main emphasis of the utilitarian view of ethical behaviour is:
A. assessing the implications of a decision in terms of its long-term personal
consequences.
B. promoting honesty and integrity.
C. ensuring that people's rights are protected and respected.
D. evaluating a decision on the basis of its impartiality and fairness.
E. ensuring that the greatest number of people benefit to the greatest extent possible.
E

37
Page 123. Factual. Learning Objective 1. The utilitarian view considers ethical behaviour as
that which delivers greatest good to the greatest number of people.
4. A manager who operates in a foreign country with the premise that ethical
behaviour is always determined by its cultural context is adopting a perspective of:

A. cultural activism.
B. cultural relativism.
C. ethical imperialism.
D. cultural socialism.
E. ethical realism.
B
Page 125. Factual. Learning Objective 1. Cultural relativism suggests there is no one right
way to behave; ethical behaviour is determined by its cultural context.
5. An ethical dilemma:
A. is rare among managers.
B. is resolved in most organisations by a formal code of ethics.
C. always involves pressures to commit illegal acts.
D. can usually be resolved without much personal stress.
E. arises when action must be taken but there is no clear 'ethically right' option.
E
Page 127. Factual. Learning Objective 2. An ethical dilemma arises when action must be
taken but there is no clear 'ethically right' option.
6. When a manager denies promotion or appointment to a job because of the
candidate's race, religion, gender, age or other criteria that are not relevant to the
job, the manager may get caught in an ethical dilemma involving:
A. discrimination.
B. sexual harassment.
C. conflicts of interest.
D. customer confidence.
E. organisational resources.
A
Page 127. Applied. Learning Objective 2. Discrimination is where a manager denies
promotion or appointment to a job because of the candidate's race, religion, gender, age or
other criterion not relevant to the job.
7. The text identifies four rationalisations that are commonly used to justify unethical
conduct. Which of the following is NOT one of the four rationalisations?
A. It's not really illegal
B. It's in everyone's best interests

38
 C. No one will ever know about it
D. The organisation will stand by me
E. Everybody does it
E
Page 127. Factual. Learning Objective 2. There are four common rationalisations that may be
used to justify misconduct, which are highlighted in answers A to D. Answer E is not one of
those rationalisations.
8. Factors influencing ethical managerial behaviour include which of the following?
A. The organisation
B. The person
C. The environment
D. All of the options listed
E. None of the options listed
D
Page 128. Factual. Learning Objective 2. Factors influencing ethical managerial behaviour
include the person, organisation and environment.
9. According to the text, all of the following are ways of maintaining high ethical
standards in management EXCEPT:
A. media coverage of unethical acts.
B. ethics training.
C. whistleblower protection.
D. top management support.
E. formal codes of ethics.
A
Page 130. Factual. Learning Objective 3. Some of the most important ways of maintaining
high ethical standards in management involve ethics training, whistleblower protection, top
management support, formal codes of ethics and strong ethical cultures.
10. Someone who exposes the misdeeds of others in organisations in an attempt to
preserve ethical standards and protect against wasteful, harmful or illegal acts is
called:
A. a retaliator.
B. a whistleblower.
C. an ethics steward.
D. an ethics evaluator.
E. an ethics officer.
B

39
 Page 131. Factual. Learning Objective 3. A whistleblower is someone who exposes the
misdeeds of others in organisations in an attempt to preserve ethical standards and protect
against wasteful, harmful or illegal acts.
11. Even though top managers set the tone of an organisation, ___________ is also in a
position to influence the people who work for and with them.
A. the whistleblower
B. the ethics evaluator
C. the ethics officer
D. every manager
E. every employee
D
Page 132. Factual. Learning Objective 3. Even though top managers set the tone of an
organisation, every manager is also in a position to influence the people who work for and
with them. This means that all managers must act as ethical role models and set an ethical
tone in their areas of responsibility.
12. Formal codes of ethics are official written guidelines on how to behave in situations
susceptible to the creation of ethical dilemmas. Which of the following statements
does NOT accurately describe a code of ethical conduct?
A. They cannot cover all situations
B. The value of any formal code of ethics still rests on its managers and other
employees
C. There is no replacement for leadership by committed managers who are willing to
set examples and act as positive ethical role models
D. They play important roles in setting the ethical tone and expectations in
organisations
E. None of the options listed
E
Pages 132-33. Factual. Learning Objective 3. Although interest in codes of ethical conduct is
growing, it must be remembered that the codes have limits. They cannot cover all situations,
but they do play important roles in setting the ethical tone and expectations in
organisations. The value of any formal code of ethics still rests on its managers and other
employees. There is no replacement for leadership by committed managers who are willing
to set examples and act as positive ethical role models.
13. The persons, groups and other organisations directly affected by the behaviour of
an organisation and holding a stake in its performance are referred to as:
A. a board of directors.
B. organisational stakeholders.
C. trustees.
D. role senders.
E. regulators.

40
 B
Pages 133-34. Factual. Learning Objective 4. Organisational stakeholders are directly affected
by the behaviour of the organisation and hold a stake in its performance.
14. Which of the following leadership beliefs is NOT appropriate for guiding socially
responsible organisational practices?
A. People do their best in a healthy work environment that allows for job involvement
as well as a good balance between work and family life.
B. Organisations function best over the long run when located in healthy communities
with high qualities of life.
C. Organisations realise performance gains and efficiencies by exploiting the natural
environment.
D. Organisations must be managed and led for long-term success.
E. An organisation's reputation must be protected as a valuable asset.
C
Page 134. Applied. Learning Objective 4. The leadership beliefs that guide socially
responsible organisational practices include areas of people, communities, natural
environment, long term and reputation.
15. __________ is the social responsibility view holding that management's only
responsibility in running a business is to maximise profits.
A. The shareholder model
B. The free market model
C. The corporate view
D. The classical view
E. The socioeconomic view
D
Page 136. Factual. Learning Objective 4. The classical view holds that management's only
responsibility in running a business is to maximise profits.
16. Which of the following does NOT reflect a question that may be posed in the
formal assessment of corporate social performance?
A. Is the organisation's economic responsibility met?
B. Is the organisation's legal responsibility met?
C. Is the organisation's political responsibility met?
D. Is the organisation's ethical responsibility met?
E. Is the organisation's discretionary responsibility met?
C
Page 137. Applied. Learning Objective 4. A formal assessment of corporate social
performance might include questions posed at four levels: Is the organisation's economic
responsibility met? Is the organisation's legal responsibility met? Is the organisation's ethical
responsibility met? And is the organisation's discretionary responsibility met?

41
 17. The obstructionist strategy involves a corporate social responsibility commitment
that:
A. reflects mainly economic priorities.
B. seeks to protect the organisation by doing the minimum legally required to satisfy
expectations.
C. is congruent with society's prevailing norms, values and expectations.
D. takes preventive action to avoid adverse social impact.
E. is inconsistent with prevailing societal norms.
A
Page 139. Factual. Learning Objective 4. An obstructionist strategy avoids social
responsibility and reflects mainly economic priorities.
18. Which of the following social responsibility strategies 'meets all the criteria of
social responsibility, including discretionary performance'?
A. A proactive strategy
B. An accommodative strategy
C. A defensive strategy
D. An obstructionist strategy
E. A constructionist strategy
A
Page 139. Factual. Learning Objective 4. A proactive strategy meets all the criteria of social
responsibility including discretionary performance.
19. In general, governmental agencies have the primary responsibility of:
A. serving the public interest by expanding the number of jobs available in the
economy.
B. creating an extensive series of forms and reports to document as many business
activities as possible.
C. making sure that businesses are not controlled by criminal elements.
D. monitoring and ensuring that businesses comply with legislative mandates.
E. serving as a balance to powerful business lobbies that attempt to influence the
decisions made by parliament.
D
Page 140. Factual. Learning Objective 5. Governments often pass laws and establish
regulating agencies to control and direct the behaviour of organisations. Behind every piece
of legislation is a government agency charged with the responsibility of monitoring and
ensuring compliance with its mandates.
20. Expressing opinions and preferences to government officials is best described as:
A. campaigning.
B. Networking
C. good public relations.

42
 D. lobbying.
E. corruption.
D
Page 141. Factual. Learning Objective 5. Through lobbying (expressing opinions and
preferences to government officials), often done with the assistance of professional lobbying
consultants, executives can have their positions and preferences communicated directly to
government officials.

Week 11
1. __________ are self-administered and they occur 'naturally' as a person performs a
task.
A. Extrinsic rewards
B. Intrinsic rewards
C. Lower-order needs
D. Higher-order needs
E. Valences
B
Page 402. Factual. Learning Objective 1. Intrinsic rewards are self-administered and they
occur 'naturally' as a person performs a task and are, in this sense, built directly into the job
itself.
2. Extrinsic rewards are ___________ administered.
A. Self
B. Professionally
C. Externally
D. Internally
E. verbally
C
Page 401.Factual. Learning Objective 1. Extrinsic rewards are externally administered. They
are valued outcomes given to someone by another person; typically a superior or higher
level manager.
3. Self-actualisation needs can be fulfilled with all of the following outcomes EXCEPT:
A. creative and challenging work.
B. participation in decision-making.
C. job flexibility.
D. praise and recognition from the boss.
E. autonomy.
D

43
Page 404. Factual. Learning Objective 2. Self-actualisation needs can be fulfilled with creative
and challenging work, participation in decision-making, job flexibility and autonomy.
4. The __________ of ERG theory holds that an already satisfied, lower-level need
becomes reactivated and can influence behaviour when a higher-level need cannot
be satisfied.
A. frustration-regression principle
B. deficit principle
C. progression principle
D. law of effect
E. contingency principle
A
Page 405. Factual. Learning Objective 2. According to the frustration-regression principle of
Alderfer's ERG theory, an already satisfied, lower-level need becomes reactivated and can
influence behaviour when a higher-level need cannot be satisfied.
5. In Herzberg's two-factor theory, hygiene factors involve __________ and affect
__________.
A. job content, job satisfaction
B. job content, job dissatisfaction
C. job context, job satisfaction
D. job context, job dissatisfaction
E. both job context and content, both job satisfaction and dissatisfaction
D
Pages 405-6. Factual. Learning Objective 2. Hygiene factors are found in the job context,
such as working conditions, interpersonal relations, organisational policies and salary and
are a source of job dissatisfaction.
6. According to acquired needs theory, the need for __________ is a manifestation of
the desire to establish and maintain friendly and warm relations with other people.
A. Affiliation
B. Power
C. social belonging
D. esteem
E. achievement
A
Page 406. Factual. Learning Objective 2. Need for affiliation is the desire to establish and
maintain good relations with people.
7. Joe feels that the rewards given to his co-workers are not equal to those he
receives. He feels that he is being treated unfairly. Equity theory predicts that Joe
may do any of the following EXCEPT:
A. changing work inputs by putting less effort into their jobs.

44
 B. changing the rewards received by asking for better treatment.
C. changing the comparison points by finding ways to make things appear better.
D. changing the situation by transferring or quitting the job.
E. doing nothing.
E
Pages 409-10. Applied. Learning Objective 3. According to the equity theory, when people
believe that they have been unfairly treated in comparison to others, they will be motivated
to eliminate the discomfort and restore a perceived sense of equity to the situation.
8. Which statement most accurately reflects the ways people deal with perceived
inequity?
A. People ignore felt negative inequities until they become major issues
B. People are concerned only with inequities that are associated with pay
C. People change the comparison points by finding ways to make things seem better
D. People maintain pay secrecy at all costs
E. People do not to talk to each other about their rewards
C
Pages 409-10. Factual. Learning Objective 3. The equity theory predicts that people will try
to deal with perceived negative inequity by changing their work inputs by putting less effort
into their jobs, changing the rewards received by asking for better treatment, changing the
comparison points to make things seem better or changing the situation by leaving the job.
9. __________ suggests that 'people will do what they can do when they want to do
it'.
A. Equity theory
B. Goal-setting theory
C. Process theory
D. Expectancy theory
E. Content theory
D
Page 411. Factual. Learning Objective 3. Expectancy theory suggests that 'people will do
what they can do when they want to do it'. More specifically, Victor Vroom suggests that the
motivation to work depends on the relationships between the three expectancy factors;
expectancy, instrumentality and valence.
10. According to expectancy theory, motivation will suffer when:
A. expectancy is high and instrumentality and valence are low.
B. valence is high and expectancy and instrumentality are low.
C. expectancy, instrumentality, and valence are all low.
D. A and B.
E. A, B, and C.
E

45
 Page 411. Factual. Learning Objective 3. Expectancy theory posits that motivation (M),
expectancy (E), instrumentality (I), and valence (V) are related to one another in a
multiplicative fashion: M = E x I x V. Mathematically speaking, a zero at any location on the
right side of the equation will result in zero motivation. If expectancy is low, motivation will
suffer. The person may feel that he or she cannot achieve the performance level necessary
to get promoted. So why try? If instrumentality is low, motivation will suffer. The person may
lack confidence that a high level of task performance will result in being promoted. So why
try? If valence is low, motivation will suffer. The person may place little value on receiving a
promotion. It simply isn't much of a reward. So once again, why try? Managers must act in
ways that maximise all three components of the expectancy theory equation. Not one of
these factors can be left unattended.
11. __________ provide(s) direction to people in their work, clarify performance
expectations, establish a frame of reference for feedback, and provide a foundation
for behavioural self-management.
A. Expectancies
B. Instrumentalities
C. Task goals
D. The law of effect
E. Reinforcers
C
Page 412. Factual. Learning Objective 3. Task goals can be highly motivating if they are
properly set and well managed. Goals give direction to people in their work, clarify
performance expectations, establish a frame of reference for task feedback and provide a
foundation for behavioural self-management. Task goals can therefore enhance individual
work performance and job satisfaction.
12. __________ is one example of a way in which self-efficacy can be enhanced. It
involves working at a task to build experience and confidence.
A. Vicarious modelling
B. Enactive mastery
C. Verbal persuasion
D. Emotional arousal
E. Vicarious mastery
B
Page 414. Factual. Learning Objective 3. There are four major ways in which self-efficacy can
be enhanced. First is enactive mastery – when a person gains confidence through positive
experience. The more you work at a task, so to speak, the more your experience builds and
the more confident you become at doing it.
13. The law of effect states that:
A. every behaviour is the effect of some environmental motivator.
B. every reward has some effect.

46
 C. behaviour that results in pleasant outcomes is likely to be repeated; behaviour that
results in unpleasant outcomes is not likely to be repeated.
D. the effects of an environmental response can be determined by monitoring
behaviours.
E. people can be motivated to perform both pleasant and unpleasant tasks.
C
Page 415. Factual. Learning Objective 4. The law of effect states that behaviour followed by
pleasant consequences is likely to be repeated; behaviour followed by unpleasant
consequences is not.
14. An organisational behaviour modification strategy designed to strengthen or
increase the frequency of a behaviour by making a pleasant consequence
contingent on the occurrence of the behaviour is called:
A. equity exchange.
B. expectancy development.
C. progression.
D. executive conditioning.
E. positive reinforcement.
E
Page 415. Factual. Learning Objective 4. Positive reinforcement strengthens or increases the
frequency of desirable behaviour by making a pleasant consequence contingent on its
occurrence. For example, a manager nods to express approval to someone who makes a
useful comment during a staff meeting.
15. A manager who advised someone's co-workers to ignore that person's disruptive
behaviours during meetings is using __________ as an organisational behaviour
modification strategy.
A. positive reinforcement
B. negative reinforcement
C. punishment
D. extinction
E. shaping
D
Page 415. Factual. Learning Objective 4. Extinction discourages a behaviour by making the
removal of a desirable consequence contingent on its occurrence.
16. The creation of a new behaviour by the positive reinforcement of successive
approximations to the desired behaviour is called:
A. operant conditioning.
B. expectancy development.
C. classical conditioning.
D. progression.

47
 E. shaping.
E
Page 416. Factual. Learning Objective 4. Shaping is the creation of a new behaviour by the
positive reinforcement of successive approximations to the desired behaviour.
17. __________ reinforcement rewards behaviour only periodically.
A. Selective
B. Continuous
C. Intermittent
D. Contingent
E. Immediate
C
Page 416. Factual. Learning Objective 4. An intermittent reinforcement schedule rewards
behaviour only periodically. Therefore it should take longer to elicit a desired behaviour than
continuous reinforcement. The behaviour acquired will be more permanent than will
behaviour acquired under an intermittent schedule.
18. A manager can __________ an employee by denying the person a valued reward,
such as verbal praise or pay.
A. Encourage
B. Punish
C. Reward
D. Reinforce
E. satisfy
B
Page 417. Factual. Learning Objective 4. As a reinforcement strategy, punishment attempts
to eliminate undesirable behaviour by making an unpleasant consequence contingent with
its occurrence. To punish an employee, for example, a manager may deny the individual a
valued reward, such as verbal praise or merit pay, or the manager may administer an
unpleasant outcome, such as verbal reprimand or pay reduction.
19. The integrated model of motivation has several implications for motivational
dynamics in the workplace. Which of the following is/are included among these
motivational dynamics?
A. Motivation leads to effort that, when combined with appropriate individual abilities
and organisational support, leads to performance
B. The motivational impact of any rewards received for this performance depends on
equity and reinforcement considerations
C. Ultimately, satisfaction with rewards should lead to increased motivation to work
hard in the future.
D. Options A and C
E. Options A, B, and C

48
 E
Page 418. Factual. Learning Objective 5. Answers A, B, and C all accurately describe
motivational dynamics.
20. A merit pay system:
A. is a logical extension of motivational theories in that it makes sense to reward people
in proportion to their work contributions.
B. must have a solid foundation of agreed-upon and well-defined performance
measures.
C. must be consistently applied at all levels of the organisation.
D. all of the options listed.
E. none of the options listed.
D
Page 419. Factual. Learning Objective 5. Answers A, B, C and E all accurately describe merit
pay. These answers are indicative of why answer D accurately describes merit pay.

Week 12
1. Which of the following statements does NOT accurately describe how human
resource management should be approached in modern organisations?
A. People are the most critical and valuable strategic assets an organisation can have
B. People should be viewed as intelligent, motivated, trustworthy individuals
C. People should be viewed as costs to be reduced
D. Toxic workplaces have human resource policies and practices that promote poor
treatment of employees
E. Start-up companies that have an early and strong commitment to a positive human
resource philosophy are able to operate with reduced administrative overhead in
succeeding years
C
Page 298. Factual. Learning Objective 1. There is ample research that indicates a strong
connection between how firms manage their people and the economic results achieved. As
such, people should be viewed as an asset, not as a cost to be reduced.
2. The interests of employees are represented in an industry, occupation or
organisation by:
A. the government.
B. workplace relations.
C. industrial relations.
D. business associations.
E. unions.
E

49
 Page 306. Factual. Learning Objective 2. Unions represent the interests of employees in an
industry, occupation or organisation.
3. The responsibility of __________ encompasses the management of employee
retention and turnover, performance appraisal, and compensation and benefits.
A. developing a quality workforce
B. attracting a quality workforce
C. planning for a quality workforce
D. staffing a quality workforce
E. maintaining a quality workforce
E
Page 309. Factual. Learning Objective 2. The responsibility of maintaining a quality workforce
encompasses the management of employee retention and turnover, performance appraisal,
and compensation and benefits.
4. The foundations for HR planning are set by _____________ — the orderly study of
job facts to determine just what is done, when, where, how, why, and by whom in
existing or potential new jobs.
A. job descriptions
B. job analysis
C. job specifications
D. all of the options listed
E. none of the options listed
B
Pages 310. Factual. Learning Objective 2. The foundations for HR planning are set by job
analysis — the orderly study of job facts to determine just what is done, when, where, how,
why, and by whom in existing or potential new jobs.
5. If a manager recommends a subordinate for advancement, or an organisation
creates an opportunity for a long-term career path, they are practicing:
A. realistic job recruitment.
B. traditional recruitment.
C. internal recruitment.
D. external recruitment.
E. job analysis.
C
Page 313. Factual. Learning Objective 3. Internal recruitment seeks applicants from inside
the organisation. Organisations will rely on managers to recommend subordinates as
candidates for advancement. Internal recruitment creates opportunities for long-term career
paths.

50
 6. The recruitment approach that tries to provide the job candidates with all
pertinent information about the job and the organisation without distortion and
before the job is accepted is called a(n):
A. open job preview.
B. traditional job preview.
C. realistic job preview.
D. holistic job preview.
E. comprehensive job preview.
C
Page 314. Factual. Learning Objective 3. Realistic job previews give the candidate all
pertinent information about the job and organisation without distortion and before the job
is accepted.
7. The process of choosing the person/s offering the greatest performance potential
from a pool of applicants is known as:
A. recruitment.
B. human management.
C. selection.
D. succession planning.
E. orientation.
C
Page 315. Factual. Learning Objective 3. Selection is choosing from a pool of the best
qualified job applicants.
8. A selection device is said to be valid when it:
A. yields approximately the same results over time if taken by the same person.
B. can be passed by at least 75 per cent of all applicants.
C. shows a demonstrated relationship between a person's score or rating and their
eventual job performance.
D. is sanctioned by the EEOC.
E. is administered by a qualified personnel specialist.
C
Page 315. Factual. Learning Objective 3. A selection device is said to be valid when it shows a
demonstrated relationship between a person's score or rating and his or her eventual job
performance.
9. Managers conducting an interview can maximise what they learn from an applicant
by following all these rules EXCEPT:
A. establish the business-like atmosphere of a subordinate reporting to a superior to
test the candidate 'under fire'.
B. conduct a goal-oriented interview.

51
 C. create a good interview climate by providing adequate time for the interview and
choosing a quiet place to conduct it.
D. focus all questions on the job and the candidate's true qualifications for it.
E. write notes on the interview immediately on its completion.
E
Page 316. Factual. Learning Objective 3. Managers should create a good interview climate
and allow sufficient time to choose a quiet place. They should also be friendly, show interest
and give the candidate the full attention.
10. __________ can be used to find out important background information about job
applicants that was not discovered in the application, interviewing or testing steps.
A. Reference checks
B. Assessment centres
C. Management simulation games
D. Apprenticeships
E. Realistic job previews
A
Page 317. Factual. Learning Objective 3. Reference checks can be used to find out important
background information about job applicants that was not discovered in the application,
interviewing or testing steps.
11. A physical examination may be required as a condition of employment because:
A. it can ensure that the person is physically capable of fulfilling job requirements.
B. it can be used as a basis for enrolling the employee in the health-related fringe
benefit programs.
C. it can be used to do employee drug testing.
D. all of the options listed.
E. none of the options listed.
D
Page 318. Factual. Learning Objective 3. A physical examination may be required as a
condition of employment because it can ensure that the person is physically capable of
fulfilling job requirements, it can be used as a basis for enrolling the employee in the health-
related fringe benefit programs, and it can be used to do employee drug testing.
12. The process of influencing the expectations, behaviour and attitudes of a new
employee in a way desirable by the organisation is known as:
A. coaching.
B. mentoring.
C. orientation.
D. Socialisation.
E. training.
D

52
 Page 318. Factual. Learning Objective 4. Socialisation systematically changes the
expectations, behaviour and attitudes of new employees.
13. The formal or informal sharing of specific technical advice by a supervisor or
experienced co-worker is an on-the-job training method known as:
A. coaching.
B. management development.
C. job rotation.
D. modelling.
E. mentoring.
A
Page 320. Factual. Learning Objective 4. The formal or informal sharing of specific technical
advice by a supervisor or experienced co-worker is an on-the-job training method known as
coaching.
14. __________ will likely benefit from management development programs that
emphasise delegating duties.
A. Non-supervisory workers
B. Beginning managers
C. Middle managers
D. Top managers
E. None of the options listed
B
Page 320. Factual. Learning Objective 4. Beginning managers will likely benefit from
management development programs that emphasise delegating duties.
15. A __________ sets standards, assesses results, and plans actions to improve future
performance.
A. performance appraisal system
B. performance management system
C. performance development system
D. employee rating system
E. goal-setting system
B
Pages 320-21. Factual. Learning Objective 4. Performance management systems set
standards, assess results, and plan actions to improve future performance.
16. A manager is using the __________ method of performance appraisal when the
employee's performance is evaluated using checklists of traits or characteristics
that are related to high performance outcomes in a given job.
A. multi-person comparisons
B. behaviourally anchored rating scale
C. traits rating scale

53
 D. graphic rating scale
E. 360º feedback
D
Page 321. Factual. Learning Objective 4. A graphic rating scale uses a checklist of traits or
characteristics to evaluate performance.
17. An appraisal method that involves using specific descriptions of actual behaviours
to rate various levels of performance is known as the:

A. critical-incident technique
B. multi-person comparisons method
C. graphic rating scales method
D. behaviourally anchored rating scales method
E. 360-degree feedback method
D
Page 322. Factual. Learning Objective 4. A behaviourally anchored rating scale uses specific
descriptions of actual behaviours to rate various levels of performance.
18. __________ is the process of systematically matching career goals and individual
capabilities with opportunities for their fulfilment.
A. Needs analysis
B. Goal development
C. Management by objectives
D. Career planning
E. Career management
D
Page 326. Factual. Learning Objective 5. Career planning is the process of systematically
matching your career goals and individual capabilities with opportunities for fulfilment.
19. Additional non-wage or non-salary forms of compensation that are provided to an
organisation's workforce are called:
A. base compensation plus.
B. bonuses.
C. fringe benefits.
D. incentives.
E. added base pay.
C
Page 329. Factual. Learning Objective 5. Fringe benefits programs allow employees to
choose from a range of benefit options.
20. Which statement concerning retention and turnover is FALSE?

54
 A. Replacement both concludes and recycles the human resource management process
B. Replacement can remove a person from an assigned job
C. Replacement can shift people between positions within an organisation
D. Replacement always entails costs, but rarely offers benefits
E. Replacement is an opportunity to review human resource plans
D
Page 330-31. Factual. Learning Objective 5. Any replacement situation should be approached
as an opportunity to review human resource plans, update job analyses, rewrite job
descriptions and job specifications, and ensure that the best people are selected to perform
the required tasks.

ALS management language Questions (week1, 2, 3, 4,

5, 7, 8)
Week 1

55
 1. Open your week 1 journal article by Hamel (2011). Read the first twenty (20) lines
from the "Beyond Management as Usual" section on page 51 from your reading for
this week.

Why is the authors' topic important?

A. Managers need to know what skills are important so they can be effective.
B. Managers should understand different management roles.
C. Managers need to understand the characteristics of the new, changing workplace.
D. Managers are responsible for employees' use of iphone in the workplace.
C
2. How well do you know business vocabulary?
Your article says that organisations have introduced 'flatter structures'. What does this
mean?
A. The organisational buildings are becoming flatter.
B. The managers work in offices which are flatter.
C. The organisation has fewer levels of management.
D. There are no managers in the organisation.
C
3. How well do you know business vocabulary?
Your article refers to 'downsizing'. What does this mean?
A. An organisation reduces the number of its staff (or personnel).
B. An organisation reduces the size of its office space.
C. An organisation moves offshore.
D. An organisation reduces its expenses.
A
4. Read the extract from the Literature Review section in a related article (below).
There is reason to believe that skills once deemed important for managers may have
adjusted in relative importance since much has changed in the world of work since these
studies. One can assume that the changes in the world of work may coincide with possible
changes in the importance of different managerial skills. Organizations have become flatter
and less hierarchical with fewer levels and more responsibilities (Allen et al., 2001; McKinley
et al., 2000; Miller, 1990). Also, organizational downsizing is commonplace due to the
increasing need to reduce costs, to eliminate unnecessary levels of management, and to
streamline operations (DeMeuse et al., 2004). As organizations become less hierarchical,
there is reason to believe that the skills managers thought were important in the past may
have changed in scope.

56
What is the best summary of this paragraph?
A. Different managerial skills become important when the nature of work changes.
B. Different managerial skills may be important as management has become less
hierarchical as organisations have become flatter and there has been downsizing.
C. Different managerial skills may be important because organizational structures have
become flatter.
D. Different managerial skills may be important because downsizing has reduced the
number of managers and thus created a less hierarchical structure.
B
5. Read the extract from the Discussion section in a related article (below):
Though many have commented on how the world of work has changed over the past 15
years (e.g. Allen et al., 2001; DeMeuse et al., 2004; Kanter, 1989; McKinley et al., 2000;
Miller, 1990; Salas et al., 2004, 2005; Wallace, 2004; Zaccaro et al., 2004), the data of the
present research suggests that despite the changes in the work environment, the
importance of certain managerial skills is somewhat similar. For instance, what was believed
to be important in 1988-1992 (i.e. “Communicating information, ideas” and “Taking action,
making decisions, following through”) is still considered important for managers today. In
addition, skills that were not thought of as important in 1988-1992 (i.e. “Self-management,
self-insight, self-development” and “Openness to influence; flexibility”) are still not thought
of as important for managers in today’s work context.
Which managerial skills did the authors' research show to be important in both the 1980s
and in 2006?
A. “Communicating information, ideas” and “Taking action, making decisions, following
through” and “Self-management, self-insight, self-development” and “Openness to
influence; flexibility”
B. “Communicating information, ideas” and “Taking action, making decisions, following
through”
C. “Self-management, self-insight, self-development” and “Openness to influence;
flexibility”
D. All skills were valued differently.
B

Week 2
1. Scientific management is one of the theories Schermerhorn et al. (2014) examine as
part of the Classical approach to management. It was originally outlined by Taylor in
1911.
Why do we still discuss Taylor's theory of scientific management?

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 A. We should not discuss old theories.
B. Taylor's scientific management is still relevant in some contexts 100 years after it was
developed.
C. We discuss Taylor's scientific management because it is the best management theory to
follow.
D. a and b
B
2. Look at your article for week 2 (Parr, 1992). He discusses 3 paradigms. Paradigms are
like theories.
Which paradigm does Parr follow?
A. Classical management paradigm
B. Modern management paradigm
C. Managing suprasystems for customer value paradigm
D. He does not follow any paradigm.
C
3. Why is theory useful in explaining a situation?
A. It indicates the significant factors to consider in a situation.
B. It indicates the significant relationships in a situation.
C. It is abstract and general.
D. a and b
D
4. Type the correct word to fill in the blank. The meaning of the word is supplied in
brackets.
Schermerhorn et al. (2014, p. 40) claimed that Weber saw bureaucracy as "an ideal,
intentionally ___rational____ (organised using logical principles so that the means lead to
the desired goals) and very efficient form of organisation founded on principles of logic,
order and legitimate authority".
5. Type the correct word to fill in the blank. The meaning of the word is supplied in
brackets.
Parr (1992) aims to ___optimize__ (make the best of the available resources [to enhance])
the performance of organisations by focussing on the generation of customer value in
suprasystems.
6. This a theoretical statement.
"Modern management ... uses contingency thinking that tries to match managerial
responses with the problems and opportunities specific to different settings, particularly
those posed by individual and environmental differences" (Schermerhorn, et al., 2014, p.
48).
What is the key relationship the theory focusses on?

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 A. problems and opportunities specific to different settings
B. individual and environmental differences
C. It describes a management approach and offers a guide to managerial behaviour (it tells
management what to focus on).
D. matching managerial responses to problems and opportunities in different settings.
D

Week 3
1. The case you are given shows an organisation which is very successful. How can
you find symptoms of an issue that management need to address?
A. You can invent symptoms.
B. You can infer a current symptom from some fact in the case.
C. You can infer a future symptom from some fact in the case.
D. b and c
D
2. This is a statement of a management issue written by a student in Case report (1):
The management issue evident in organisation X is that they do not have good customer
relations.
What is wrong with it? (Think in terms of Case report (1)
A. A management approach is not named.
B. A symptom is described, not a management issue.
C. It is a good statement of a management issue.
D. a and b.
D
3. You are given a case which describes the loss of jobs in the ANZ bank due to the
global financial crisis.
You begin your analysis of the management issue by writing:
The management issue within the ANZ bank is that an ________________ approach to
management is being used within a context that demands a different approach.
Select the word for the blank space in the sentence.
A. Wrong
B. Incorrect
C. Unsuitable
D. Inept
C

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 4. Where could you use the quote below in your Case report?
"the contingency perspective tries to help managers understand situational differences [i.e.
different industires, products, regions, labour forces, skills, technology etc] and respond to
them in appropriate ways" (Schermerhorn, Davidson, Simon, Woods, & Chau, 2011, p. 99).

A. 1.0 Introduction
B. 2.0 Issue Identification
C. 3.0 Conclusion
D. References
B

Week 4
1. Select the word or words for the gap in the sentence below.
Australia's tariffs on most automotive goods and, especially on car parts and commercial
vehicles, were eliminated as a result of a _____________________ (an agreement to make
trade between 2 countries easier) between Australia and the United States.
A. trade barriers
B. free trade
C. free trade agreement
D. economic indicator
C
2. Select the word or words for the gap in the sentence below.
The Australian Government under Prime Minister Hawke changed Australia from being a
country with __ _________________ (tariffs and subsidies) that acted to protect its
domestic markets to an open economy supplying global markets.
A. free trade
B. trade barriers
C. free trade agreement
D. economic indicator
B
3. Select the word or words for the gap in the sentence below.
A report from the World Bank and International Finance Corporation (Austrade, 26
November, 2012) which examined Australia's _______________(rules) in relation to

60
business, found that Australia was the 10th best country in terms of the "ease of doing
buiness".
A. Regulations
B. Regulatory
C. Legislation
D. economic indicators
A
4. Select the word or words for the gap in the sentence below.
Singapore has few trade barriers. For example, there is generally no ___________ (a charge
placed on imported goods) placed on goods as they enter Singapore.
A. Subsidy
B. Tariff
C. free trade
D. regulation
B
5. Select the word or words for the gap in the sentence below.
The CEO for a major technology organisation was quoted saying that he would invest in any
country which had the right ______________ (facilities), an educated workforce and a
government which would support his business (Schermerhorn et al., 2011, p. 116).
A. economic indicators
B. GDP
C. Infrastructure
D. inflation rate
C
6. Select the word or words for the gap in the sentence below.
One of Hofstede's ______________ (aspects) of cultural difference is 'power distance'.
A. Signs
B. Barriers
C. Ideas
D. Dimensions
D
7. Select the word or words for the gap in the sentence below.
Managers need to be careful in any ____________________ (involving 2 or more cultures)
situation as different cultures will have different practices.
A. cross-cultural

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 B. cultural
C. expatriate
D. diversity
A

Week 5
1. Initially, leadership was based on the "Great Person Theory of Leadership," whereby
'great leaders' were born with some personal qualities to lead (Pierce & Newstrom,
2003, p.6). This is a description of a trait theory of leadership.

2. ... a study done by Ohio State University in 1945 which basically summarized the two
dimensions of behavior into "concern for people" and "concern for task completion"
(Shani & Lau, 2000, p. 49). This is an example of a behaviour theory of leadership.

3. Murphy (1941) described [leadership] as sociological in nature. According to him,

situation is an influencing variable that defines creates the need of defining what
combination of traits and behavior is required by the leader to be successful in that
particular situation. Hence, he defined as leadership "to be a function of the whole
situation and not something that resides in a person" (Pierce & Newstrom, 2003, p.4)
This is an example of the contingency approach to leadership.

4. In 1996, Robert House presented a reformulated path-goal theory. The reformulated

theory is a theory of work unit leadership. "It specifies leader behaviors that
increase subordinate empowerment [giving power to] and satisfaction and work
unit and subordinate effectiveness.

The above quotes have been taken from: McLaurin, J. R. (2006). The role of situation in the
leadership process: A review and application. Academy of Strategic Management Journal, 5,
97 - 114. Retrieved from www.proquest.com
Note: This article may be offered to you as a reading article in week 7. It is useful for
showing how to construct a critical discussion of leadership theories.

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Week 7
1. Read the following extract from an article written by Wilburn and Wilburn (2011, p.
165):
One company, JDS Uniphase Corp, a company that designs and produces optical
communication instruments, was ready for the downturn. It began scenario planning in
2004; each spring, executives consider three potential sales scenarios. In 2008, a worst
case scenario allowed the company to be proactive in responding to what appeared to
be an economic downturn. Revenue was up by mid-year.
What role is this paragraph playing?
Reference: Wilburn, K. & Wilburn, H. (2011). Scenarios and strategic decision making.
Journal of Management Policy and Practice, 12(4), 164-178. Retrieved from
www.proquest.com
A. It describes a theory.
B. It provides a criticism.
C. It provides a criticism and assesses the theory.
D. It provides an example of the theory being used in a particular situation.
D
2. Read the extract below from an article written by Cesnovar (2006, p. 230):
The positive effects of using strategic management are mentioned in many studies. For
example, Hunger (1996) ascertained that strategic planning is shown to be beneficial in 89%
of studied companies. Those which use strategic planning are more successful than the
branch average (1986), while companies that do not not apply strategic management have
fewer chances of surviving.
This paragraph is outlining the value of strategic planning. What words does the author
use to emphasize the value?
Reference: Cesnovar, T. (2006). The impact of strategic management on business outcomes -
empirical research. Journal for East European Management Studies, 11(3), 227-243.
Retrieved from www.proquest.com
A. Positive
B. Beneficial
C. Successful
D. All of the above
D
3. Read this extract from Mason (2007, pp. 14 -15):
There is agreement amongst chaos and complexity authors that traditional strategy making
is ineffective in turbulent environments. Traditional strategy making is not innovative,

63
creative or original, leading to strategic rigidity (Nilson, 1995; Edgar and Nisbet, 1995; Brown
and Eisenhardt, 1998, and Roos, 1999).
How would you cite the information that traditional strategy making leads to rigidity?
A. (Nilson as cited in Mason, 2007. p. 15)
B. (Nilson, 1995 as cited in Mason, 2007. p. 15)
C. (Nilson, 1995; Edgar and Nisbet, 1995; Brown and Eisenhardt, 1998, and Roos, 1999)
D. (Mason, 2007, p. 15)
A
4. Read this extract from a Literature review of an article written by Fulk, Bell, and
Bodie (2011, p. 18):
Management by objectives (or MBO) stands as an example of a controversial management
concept that, nevertheless, continues to accumulate evidence of its value for organizational
performance. It has been criticized for its negative effects (e.g., for impinging on employees’
creativity (Roth, 2009)). It has also been branded as part of a string of fads calling for caution
by managers (Gibson & Tesone, 2001), which have been followed by newer concepts such as
quality work life (e.g., Connell & Hannif, 2009; Lau & May, 1998). However, previous research
suggests that MBO can improve performance for organizations adopting the principles
making it up (e.g., Kluger & DeNisi, 1996).
This paragraph is part of a Literature review. What is the paragraph doing?
Reference: Fulk, H., Bell, R., & Bodie, N. (2011). Team management by objectives: Enhancing
developing teams' performance. Journal of Management Policy and Practice, 12(3), 17-26.
Retrieved from www.proquest.com
A. It is describing the theory.
B. It is criticising the theory.
C. It is criticising and assessing the criticism.
D. It is providing an example of the theory in a particular situation.
C

Week 8
1. Read this small extract from a case on p. 58 of your textbook.
"Google is considered one of the best companies to work for in the world, if not the best.
One of the reasons for this is that it creates an inclusive environment for its diverse staff...".

64
What search terms would you use to find an article close to the case and related to
theories of inclusivity?
A. inclusivity + Google
B. inclusivity + internet
C. inclusivity + salary
D. inclusivity + Australia
E. All of the above
A
2. Which of the following sentences would you use to begin the recommendation
section?
A. The recommendation is justified because there is evidence to support its success in
other similar organisations.
B. A recommendation will now be made for organisation X.
C. It is likely that the recommendation will be successful as there is evidence of its
success in similar organisations.
D. It is recommended that the managers in organisation X adopt a transformational
leadership style.
D
3. Which of the following sentences would you use to begin the justification (after
you have outlined the details of the recommendation)?
A. The recommendation is justified because there is evidence to support its success in
other similar organisations.
B. Howell and Avolio (1993) claimed that transformational leadership was related to
improved performance of financial managers.
C. It is likely that the recommendation will be successful as there is evidence of its
success in similar organisations.
D. A number of studies have shown that performance pay leads to increases in
performance.
C
4. A recommendation usually includes a statement of one or more limitations. Which
of the following would be suitable sentences indicating limitations?
Tick as many as you believe are correct.
a. The recommendation is likely to succeed providing the economic climate remains
relatively stable.
b. The success of the recommendation will depend on the employees' trust in the
manager.
c. There are no limitations for this recommendation as it is certain to succeed in
returning the company to profitability.
d. This is only a recommendation and so no guarantee can be given as to its success.

65
 a,b

Short answer questions Exam practice – Part B

15 marks

1. Ethical behaviour or Social Responsibility (Lec10 Chap 5)

 How can ethic theory help managers?

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68
 Use social responsibility theory to evaluate organisation.

69
70
2. Management approach (Lec2 Chap 2)
 What management approach used?

71
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73
 Is this right management approach for 2016?

74
3. Management vs Leadership (Management Functions) (Lec5 Chap 12)
 Is organisation focused on management or leadership?

75
4. Employee Motivation (Lec11 Chap 14)
 How can motivation theory be used develop a strong
organisation culture?

76
5. Human Resource Management (HRM) (Lec12 Chap11)
 What recruitment approaches can organisation use to attract
employees?

77
6. Organisational Diversity (Lec3 Chap3)
 How can a diversity approach to employee recruitment make
organisation stronger?

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