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36) The hiring of new people with new skills, firing of people with inappropriate or substandard

skills, and/or training existing employees to learn new skills are included the process of
A) training.
B) staffing.
C) structuring.
D) operating.
E) financing
Answer: B
Diff: 1 PageRef: 350
Topic: Staffing
37) All of the following reflect characteristics of a successful integration manager EXCEPT
A) a deep knowledge of the acquiring company.
B) a flexible management style.
C) an ability to work in cross-functional project teams.
D) an ability to hire like-minded people.
E) a willingness to work independently.
Answer: D
Diff: 2 PageRef: 351
Topic: Staffing
38) Motorola provides each employee with at least ________ hours of training per year.
A) 5
B) 10
C) 20
D) 30
E) 40
Answer: E
Diff: 2 PageRef: 351
Topic: Staffing
39) For each $1 spent on training, Motorola estimates it receives ________ in productivity gains
within three years.
A) $15
B) $20
C) $25
D) $30
E) $35
Answer: D
Diff: 2 PageRef: 352
Topic: Staffing
40) Executives with a particular mix of skills and experiences may be classified as an executive
type and paired with
A) a specific personal characteristic.
B) a specific corporate strategy.
C) a certain educational background.
D) a specific experience background.
E) a specific industry.
Answer: B
Diff: 2 PageRef: 352
Topic: Staffing
41) Which of the following statements is true concerning the career life cycle for top executives?
A) During the early years of executives' tenures, they tend to experiment extensively with
product lines to learn about their business.
B) It is possible that a current CEO may not be appropriate to implement a new strategy.
C) The harvest stage occurs when executives' accumulated knowledge allows them to reduce
experimentation and increase knowledge.
D) There is an inverted U-shaped relationship between top executive tenure and the firm
financial performance.
E) all of the above
Answer: E
Diff: 3 PageRef: 352
Topic: Staffing
42) Which type of chief executive officer with a great deal of experience in that particular
industry would be appropriate for a corporation following a concentration strategy emphasizing
vertical or horizontal growth?
A) professional liquidator
B) dynamic industry expert
C) turnaround specialist
D) analytical portfolio manager
E) cautious profit planner
Answer: B
Diff: 2 PageRef: 352
Topic: Staffing
AACSB: Analytic Skills
43) Which type of chief executive officer who is highly knowledgeable in other industries and
can manage diverse product lines would be appropriate for a corporation following a
diversification strategy?
A) professional liquidator
B) dynamic industry expert
C) turnaround specialist
D) analytical portfolio manager
E) cautious profit planner
Answer: D
Diff: 2 PageRef: 30289
Topic: Staffing
AACSB: Analytic Skills
44) Which type of chief executive officer with a conservative style, a production or engineering
background, and experience with controlling budgets, capital expenditures, inventories, and
standardization procedures would be appropriate for a corporation following a stability strategy?
A) professional liquidator
B) dynamic industry expert
C) turnaround specialist
D) analytical portfolio manager
E) cautious profit planner
Answer: E
Diff: 2 PageRef: 352
Topic: Staffing
AACSB: Analytic Skills

45) Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of
A) research/engineering and general management.
B) accounting/finance, manufacturing/production, and general management.
C) marketing/sales.
D) human resources and strategy.
E) purchasing and logistics.
Answer: A
Diff: 2 PageRef: 353
Topic: Staffing
46) Successful defender firms tend to be headed by CEOs with backgrounds in the areas of
A) research/engineering and general management.
B) accounting/finance, manufacturing/production, and general management.
C) marketing/sales.
D) human resources and strategy.
E) purchasing and logistics.
Answer: B
Diff: 2 PageRef: 353
Topic: Staffing
47) Successful analyzer firms tend to be headed by CEOs with backgrounds in the areas of
A) research/engineering and general management.
B) accounting/finance, manufacturing/production, and general management.
C) marketing/sales.
D) human resources and strategy.
E) purchasing and logistics.
Answer: C
Diff: 2 PageRef: 353
Topic: Staffing
48) What did a study of 173 firms over a 25-year period reveal about CEOs of successful
corporations?
A) They tended to have less loyalty than former CEOs, switching companies as a faster pace.
B) They tended to have the same functional specialization as the former CEO.
C) They tended to be more aggressive in their risk-taking than former CEOs.
D) They tended to rely more on skills developed through group decision making.
E) They tended to be turnaround specialists.
Answer: B
Diff: 3 PageRef: 353
Topic: Staffing
49) According to the text, the process of replacing a key top manager is called
A) executive succession.
B) executive placement.
C) executive strategy.
D) executive search.
E) executive outside succession.
Answer: A
Diff: 1 PageRef: 353
Topic: Staffing
50) Research suggests that boards of directors tend to look outside the firm for the next CEO
under which following circumstance?
A) when the company is prosperous
B) when the company is having temporary difficulty
C) when the company is in trouble
D) when the company needs to follow a stability strategy
E) when the company needs to expand in order to continue growing
Answer: C
Diff: 2 PageRef: 355
Topic: Staffing
51) When Hewlett Packard searches for executive leadership, all of the following represent its
broad competency of achieving results EXCEPT
A) building a track record.
B) increasing stock price.
C) establishing accountability.
D) supporting calculated risks.
E) resolving performance problems.
Answer: B
Diff: 3 PageRef: 354
Topic: Staffing
52) Which is NOT one of the competencies Hewlett Packard uses for identifying potential
executives?
A) Practice the HP way.
B) Lead change and learning.
C) Achieve results.
D) Align the organization.
E) Manage around the external environment.
Answer: E
Diff: 3 PageRef: 354
Topic: Staffing
53) Which one of the following is NOT one of the activities and techniques typically used in an
assessment center to evaluate a person's suitability for advancement?
A) leaderless group discussions
B) management games
C) in-basket exercises
D) IQ tests
E) case analyses
Answer: D
Diff: 2 PageRef: 355
Topic: Staffing
54) According to the text, assessment centers have been able to accurately predict subsequent
A) job satisfaction.
B) job performance and career success.
C) organizational commitment.
D) organizational attachment.
E) job management skills.
Answer: B
Diff: 1 PageRef: 355
Topic: Staffing
55) To ensure employees are gaining the appropriate mix of experience to prepare employees for
future responsibilities, many corporations move people from one job to another utilizing the
technique of
A) job design.
B) job specialization.
C) job rotation.
D) job enlargement.
E) job enrichment.
Answer: C
Diff: 1 PageRef: 355
Topic: Staffing
AACSB: Reflective Thinking
56) According to a study of downsizing in the automobile-related industry, which one of the
following is NOT a problem associated with inappropriate downsizing?
A) Produced long-term benefits.
B) Blanket offers for early retirement prompted even valuable employees to leave.
C) Surviving employees experienced decreased morale.
D) Surviving employees had to do extra work in addition to their own.
E) The wrong jobs were eliminated.
Answer: A
Diff: 2 PageRef: 356
Topic: Staffing
7) Downsizing is often used to implement a(n) ________ strategy.
A) retrenchment
B) growth
C) stability
D) hold
E) integration
Answer: A
Diff: 1 PageRef: 356
Topic: Staffing
AACSB: Reflective Thinking
58) Which of the following is NOT a guideline proposed for successful downsizing?
A) Contract out work that others can do cheaper.
B) Plan for long-run efficiencies.
C) Make across-the-board cuts.
D) Communicate the reasons for actions.
E) Invest in the remaining employees.
Answer: C
Diff: 2 PageRef: 357
Topic: Staffing
59) According to the text, a complete package for an executive working in another country costs
A) $50,000 to $75,000 annually.
B) $100,000 to $200,000 annually.
C) $150,000 to 250,000 annually.
D) $200,000 to $500,000 annually.
E) $300,000 to $1 million annually.
Answer: E
Diff: 2 PageRef: 357
Topic: Staffing
60) One of the big common mistakes by corporations sending executives on global assignments
is NOT
A) raising their salaries.
B) educating executives about customs and values in other countries.
C) providing training for the regulatory environment.
D) providing excellent health care.
E) giving executives the opportunity to visit home.
Answer: B
Diff: 1 PageRef: 357
Topic: Staffing
61) According to the text, which one of the following is NOT one of the dangers of using
primarily foreign nationals to staff managerial positions in subsidiaries?
A) The increased likelihood of suboptimization.
B) Difficulty for the MNC to meet long-term, worldwide objectives.
C) The ability for communication and coordination becomes increasingly difficult.
D) Promotes anger and jealousy within the nationalistic host government.
E) Problems in coordinating activities of several international subsidiaries leads to problems in
operating in a global industry.
Answer: D
Diff: 2 PageRef: 358
Topic: Staffing
AACSB: Multicultural and Diversity
62) The percentage of U.S.-based expatriate managers who fail to adjust to a host country's
social and business environment is
A) 6% or less.
B) approximately 35%.
C) between 50% and 75%.
D) around 80%.
E) greater than 90%.
Answer: B
Diff: 2 PageRef: 358
Topic: Staffing
AACSB: Multicultural and Diversity
63) The percentage of European and Japanese-based expatriate managers who fail to adjust to a
host country's social and business environment is
A) 6% or less.
B) approximately 35%.
C) between 50% to 75%.
D) around 80%.
E) greater than 90%.
Answer: A
Diff: 2 PageRef: 358
Topic: Staffing
64) Which of the following practices was not identified by Black and Gregersen in companies
that do a good job of managing foreign assignments?
A) When making international assignments they focus on transferring knowledge and developing
global leadership.
B) They offer foreign assignments to people whose technical skills are matched or exceeded by
their cross-cultural abilities.
C) They offer assignments to those who want to return home early to share their experiences.
D) They end foreign assignments with a deliberate repatriations process with career guidance.
E) They end foreign assignments with a deliberate repatriation process with jobs where the
employees can apply what they learned in their assignments.
Answer: C
Diff: 3 PageRef: 358
Topic: Staffing
AACSB: Multicultural and Diversity
65) If a planned strategy is NOT compatible with the current culture, but the culture can be easily
modified to make it more compatible with the new strategy, what should the organization do?
A) Find a joint-venture partner or contract with another company to carry out the strategy.
B) Implement the new strategy and identify how it is superior to the old strategy.
C) Move forward very carefully by introducing a set of culture-changing activities.
D) Manage around the culture by establishing a new structural unit to implement the new
strategy.
E) Move ahead with the incompatible strategy anyway.
Answer: C
Diff: 3 PageRef: 360-361
Topic: Leading
66) If a planned strategy is not compatible with the company's current culture, and management
is not willing to make major organizational changes required to manage around the culture, what
should the organization do?
A) Find a joint-venture partner or contract with another company to carry out the strategy.
B) Implement the new strategy and identify how it is superior to the old strategy.
C) Move forward very carefully by introducing small steps and modifications before full
implementation.
D) Manage around the culture by establishing a new structural unit to implement the new
strategy.
E) none of these
Answer: A
Diff: 3 PageRef: 361
Topic: Leading
67) According to the text, what is the "key" to effective management of change in culture?
A) planning
B) operationalization
C) evaluation
D) staffing
E) communication
Answer: E
Diff: 2 PageRef: 362
Topic: Leading
AACSB: Communication
68) Which one of the following is NOT one of the characteristics possessed by companies that
have made successful major culture changes?
A) The CEO has a strategic vision of what the company could become.
B) If the vision is difficult, the CEO immediately terminates the goal.
C) The vision is translated into objective, well-defined goals with appropriate incentives and
recognition aides.
D) The CEO communicates to all employees where the organization stands in relation to the
competition and its outlook on the future.
E) The CEO constantly updates the workforce as to the progress of the company in achieving
those elements identified as important in attaining the vision.
Answer: B
Diff: 2 PageRef: 362
Topic: Leading
69) Which one of the following is NOT one of Malekzadeh and Nahavardi's four general
methods of managing disparate cultures?
A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation
Answer: E
Diff: 1 PageRef: 363
Topic: Leading
70) Which method of managing disparate cultures involves a relatively balanced give-and-take
of cultural and managerial practices between the merger partners, and no strong imposition of
cultural change on either company?
A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation
Answer: C
Diff: 2 PageRef: 363
Topic: Leading
71) When Renault purchased a controlling interest in Japan's Nissan Motor Company, which
approach to managing culture was employed?
A) integration
B) separation
C) deculturation
D) assimilation
E) segmentation
Answer: A
Diff: 2 PageRef: 363
Topic: Leading
AACSB: Analytic Skills
72) Which method of managing disparate cultures involves one organization's domination over
another willing organization?
A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation
Answer: D
Diff: 1 PageRef: 363
Topic: Leading
73) Which method of managing disparate cultures is characterized by a separation of the two
companies' cultures because of their differences?
A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation
Answer: A
Diff: 1 PageRef: 364
Topic: Leading
74) Which method of managing disparate cultures is the most common and most destructive
method of dealing with two different cultures because one company imposes its demands at the
expense of another company's culture?
A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation
Answer: B
Diff: 2 PageRef: 364
Topic: Leading
AACSB: Reflective Thinking
75) When Admiral was acquired by Maytag Corporation, the Admiral employees were willing to
accept the dominance of Maytag's strong quality-oriented culture. This demonstrates which
approach to managing culture?
A) integration
B) separation
C) deculturation
D) assimilation
E) segmentation
Answer: D
Diff: 2 PageRef: 363
Topic: Leading
AACSB: Analytic Skills
76) When AT&T acquired NCR Corporation, which management strategy was employed in
terms of culture?
A) integration
B) separation
C) deculturation
D) assimilation
E) segmentation
Answer: C
Diff: 2 PageRef: 364
Topic: Leading
AACSB: Analytic Skills
77) The strategy implementation tool used to determine what actions are going to be taken, by
whom, during what time frame, and with what expected results is called a(n)
A) mission statement.
B) action plan.
C) MBO.
D) TQM.
E) succession plan.
Answer: B
Diff: 1 PageRef: 364
Topic: Leading
78) Strategic goals can be accomplished through defining an action plan. Which one of the
following is NOT one of the components which make up an action plan?
A) states what action is going to be taken
B) who will perform the action.
C) during what time frame the action will be done
D) where the action will be done
E) what are the expected results of the action
Answer: D
Diff: 2 PageRef: 364
Topic: Leadin
79) Action plans are important for several reasons. Which one of the following is NOT one of
these reasons?
A) If the action plan is implemented properly, it ensures that the strategy will be a success.
B) It serves as a link between strategy formulation and evaluation and control.
C) The action plan specifies what needs to be done differently from the way operations are
currently carried out.
D) During the evaluation and control process, an action plan helps in the appraisal of the
performance and identifying remedial actions needed.
E) Motivation may be improved with the assignment of specific responsibility.
Answer: A
Diff: 2 PageRef: 365-366
Topic: Leading
80) What does "MBO" stand for?
A) Market Buy-Out
B) Mergers, Buy-outs, and Options
C) Multinational Business Organization
D) Manufacturing Backlog Order
E) Management By Objectives
Answer: E
Diff: 1 PageRef: 366
Topic: Leading
81) Which one of the following is NOT part of the process of Management By Objectives
(MBO)?
A) Establishing and communicating organizational objectives.
B) Setting individual objectives that help implement organizational ones.
C) Reinforcing rules and regulations.
D) Developing an action plan of activities needed to achieve the objectives.
E) Periodically reviewing performance as it relates to the objectives.
Answer: C
Diff: 2 PageRef: 366
Topic: Leading
82) Which of the following is NOT descriptive of the purpose of Management By Objectives
(MBO)?
A) MBO provides an opportunity for the corporation to connect the objectives of people at each
level to those at the next higher level.
B) MBO operates independently and requires very little supervision or administration.
C) The goals at each level ideally contribute directly towards overall organizational objectives.
D) MBO provides a potential method of integrating the physical, financial and human resource
plans of an organization as it relates to the goals of the individual.
E) MBO ties the corporate, business, and functional objectives together along with the strategies
used to achieve them.
Answer: B
Diff: 2 PageRef: 366
Topic: Leading
83) "TQM" refers to
A) Total Questioning Methods.
B) Terrible Quantitative Management.
C) Tremulous Qualitative Methodology.
D) Total Quality Management.
E) Total Quality Methods.
Answer: D
Diff: 1 PageRef: 366
Topic: Leading
84) Which of the following is NOT one of TQM's objectives?
A) Greater flexibility in adjusting to customers' shifting requirements.
B) Lower cost through quality improvement and elimination of non-value-adding work.
C) Increased alignment of employee goals with management's objectives.
D) Quicker, less variable response in processes to customer needs.
E) Better, less variable quality of the product and service.
Answer: C
Diff: 2 PageRef: 366-367
Topic: Leading
85) Which of the following is NOT an essential ingredient of TQM?
A) Intense focus on customer satisfaction.
B) Internal as well as external customers.
C) Action planning.
D) Continuous improvement.
E) Accurate measurement of every critical variable in a company's operations.
Answer: C
Diff: 2 PageRef: 367
Topic: Leading
86) Approximately what percent of manufacturing companies have implemented some form of
quality management practices.
A) 92
B) 76
C) 50
D) 22
E) 10
Answer: A
Diff: 2 PageRef: 366
Topic: Leading
87) One research study of TQM successes and failures concluded that a key ingredient in TQM
programs is
A) effective communication in all levels of management.
B) excellent customer satisfaction.
C) top management.
D) formidable manufacturing practices.
E) respected lower level employees.
Answer: C
Diff: 2 PageRef: 366
Topic: Leading
88) Which one of the following was NOT one of the cultural dimensions that Hofstede found
which could explain the success or failure of certain management practices?
A) uncertainty avoidance
B) masculinity-femininity
C) individualism-collectivism
D) power distance
E) cultural diversity
Answer: E
Diff: 1 PageRef: 367-368
Topic: Leading
AACSB: Multicultural and Diversity
89) According to Hofstede, which cultural dimension describes the extent to which a society
accepts an unequal distribution of power in organizations?
A) uncertainty avoidance
B) masculinity-femininity
C) individualism-collectivism
D) power distance
E) long-term orientation
Answer: D
Diff: 1 PageRef: 367
Topic: Leading
AACSB: Multicultural and Diversity
90) A nation whose people want career stability, formal rules, and clear-cut measures of
performance would score high on which of Hofstede's cultural dimensions?
A) uncertainty avoidance
B) masculinity-femininity
C) individualism-collectivism
D) power distance
E) long-term orientation
Answer: A
Diff: 2 PageRef: 367
Topic: Leading
AACSB: Reflective Thinking
91) According to Hofstede, which cultural dimension describes the extent to which a society
values individual freedom and independence of action compared with a tight social framework
and loyalty to the group?
A) uncertainty avoidance
B) masculinity-femininity
C) individualism-collectivism
D) power distance
E) long-term orientation
Answer: C
Diff: 2 PageRef: 367-368
Topic: Leading
AACSB: Multicultural and Diversity
92) According to Hofstede, which cultural dimension describes the extent to which society is
oriented toward money and things or towards people?
A) uncertainty avoidance
B) masculinity-femininity
C) individualism-collectivism
D) power distance
E) long-term orientation
Answer: B
Diff: 2 PageRef: 368
Topic: Leading
AACSB: Multicultural and Diversity
93) According to Hofstede's cultural dimensions, which country scored the highest on
individualism?
A) Hong Kong
B) Germany
C) Pakistan
D) United States
E) Mexico
Answer: D
Diff: 2 PageRef: 367
Topic: Leading
AACSB: Multicultural and Diversity
94) According to Hofstede's cultural dimensions, which country scored lowest on power
distance?
A) Malaysia
B) Mexico
C) Germany
D) United States
E) Great Britain
Answer: C
Diff: 2 PageRef: 367
Topic: Leading
AACSB: Multicultural and Diversity
95) According to Hofstede's cultural dimensions, which country scored lowest on uncertainty
avoidance?
A) Malaysia
B) Mexico
C) Austria
D) United States
E) Great Britain
Answer: D
Diff: 2 PageRef: 367
Topic: Leading
AACSB: Multicultural and Diversity
96) According to Hofstede, which cultural dimension describes the extent to which a society
emphasizes the importance of hard work, education, and persistence as well as the importance of
thrift?
A) uncertainty avoidance
B) masculinity-femininity
C) individualism-collectivism
D) power distance
E) long-term orientation
Answer: E
Diff: 2 PageRef: 368
Topic: Leading
AACSB: Multicultural and Diversity
97) Hofstede's work on national culture was extended to nine cultural dimensions by
A) RHR International.
B) Project GLOBE.
C) Alfred Chandler.
D) Nahavardi and Malekzadeh.
E) McKinsey & Company.
Answer: B
Diff: 1 PageRef: 368
Topic: Leadin

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