BAM 562 -Modern Management Unit 1-4 Exam



Pearson Prentice Hall

BAM 562
Modern Management
Text: Modern Management: Concepts and Skills
Twelfth Edition, 2012
ISBN-10: 0132176319
Samuel C. Certo and S. Trevis Certo

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. is the management function through which managers compare present performance to preestabl ished performance standards.
I nfluenci ng
2. Which of the following is an error managers make during the controlling stage of management?
Establishing improper communication networks
Not exploring enough viable alternatives for reaching objectives
Not taking the time to communicate properly with organization members
Not establ ish ing departments appropriately
Not monitoring progress in carrying out plans
3. resources refer to the machines used during the manufacturing process.
Raw material
4. resources refer to the ingredients used directly in the manufacturing of products.
Raw material
5. According to Katz, human skills are required for
understanding how changes in one part of the organization affect the rest of it
working with individual and group interests
understanding how the organization relates to its environment
designing work processes and procedures
applying specialized knowledge and expertise to work-related techniques

6. According to Katz, technical skills involve _
understanding how the organization relates to its environment
applying specialized knowledge and expertise to work-related techniques
understanding how changes in one part of the organization affect the rest of it
working with people, both individuals and groups, to achieve organizational goals
working with people, but not their attitudes and communication
7. People-related activities within an organization include _
consulting when making decisions
clarifying objectives of jobs in organizations
proposing new strategies and vision
short-term planning
encouraging innovative thinking
8. skills involve acting considerate, showing sympathy when someone is upset or anxious,
and provid i ng encouragement.
Clarifying roles
Sarah has been working full-time at Eves Golf Inc. for three years. While in college, she worked as a part-time employee at Burger King and as an office assistant for a manufacturing organization. She was recently promoted to manager, and manages a small team that is responsible for procuring raw materials for their line of golf bags, hats and other accessories. Considering that careers evolve through a series of stages, in this scenario Sarah’s career is at the stage.
10. The Gilbreths aimed to increase worker efficiency by _
reducing the number of movements taken to accomplish a task
i nstituti ng the piece-rate system for remuneration
enforcing minimum criteria for the types of workers hired for a job
encouraging teamwork rather than individual work
understanding what motivates employees to complete a task

11. Which one of the following conclusions was drawn by the experimenters from the bank wiring observation room experiment?
The subjects did not find working in the test room enjoyable.
Human factors within organizations could significantly influence production.
Improved working conditions resulted in increased production.
Social groups in organizations could effectively exert pressure to influence individuals to disregard monetary incentives.
Members of the work group pressured one another to work harder so that each group member would receive more pay.
The Hawthorne Studies sparked the , a people-oriented approach to management in which the interaction of people in organizations is studied to judge its impact on organizational success.
behavioral study movement
motion studies initiative
“one best way” model
human relations movement
scientific management movement
Dress codes are a contentious subject in workplaces with Gen Y workers favoring a more casual style than older workers, who are often uncomfortable with the idea of wearing casual clothes to work. Human resources departments often find it difficult to enforce company dress codes appropriately. Managers find that one of the ways to address this situation is using the contingency approach. Which of the following is the best example of the contingency approach
to management?
Rotec Inc. requires all employees to dress formally throughout the week and allows business casuals on Fridays.
Sandman Designs allows employees who don’t meet clients to dress casually, while employees who must meet clients are required to wear formals.
Waterstones observed and compared employee behavior and productivity on “formal wear” and “casual wear” days and used the findings to devise a company dress code.
Letterman Inc. invited employees to share their clothing preferences and used these suggestions to frame a company dress code.
G&B Solutions developed a series of guidelines to let employees know what is considered appropriate and inappropriate office wear.

The use of the classical, behavioral and management science approaches as sources of information to analyze the management system is referred to as management.
Every Monday morning, the hundred-odd employees at Axis Systems Ltd. meet to discuss the work situation. The managers of various departments summarize what their departments have done over the past week. Employees can track the various stages of any project and understand how their tasks fit into the whole process. This illustrates the aspect of a learning organ ization.
team learning
triangular management
systems thinking
the contingency approach
the behavioral approach
Which of the following propositions of the Davis Model of Corporate Social Responsibility states that business cannot be expected to completely finance activities that may be socially advantageous but economically disadvantageous?
Proposition 3: The social costs and benefits of an activity, product, or service shall be thoroughly calculated and considered in deciding whether to proceed with it.
Proposition 2: Business shall operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.
Proposition 1: Social responsibility arises from social power.
Proposition 4: The social costs related to each activity, product or service shall be passed on to the consumer.
Proposition 5: Business institutions, as citizens, have the responsi bi I ity to become involved in certain social problems that are outside their normal areas of operation.
17. Managers can fulfill their social obligation towards consumers by _
abiding to the laws
providing safe products
increasing the value of the organization
providing safe working environments
repayi ng debts

18. Which of the following statements is true about the social responsiveness approach?
It sees business as having societal goals, but lacking economic goals.
It considers business as having primarily economic purposes and confines social responsibility activity mainly to existing legislation.
It considers business as having both societal and economic goals as well as the obiigation to anticipate potential social problems and work actively toward preventing their occurrence.
It sees business as having both economic and societal goals.
It sees business as having societal goals and the obligation to anticipate potential social problems, but lacking economic goals.
19. Which of the following occurs during the controlling process?
Determining how the organization will get where it wants to go
Guiding the activities of organization members to help attain organizational objectives
Making things happen as they were planned to happen
Establishing orderly uses for all the organization’s resources
Determining how the organization will achieve its objectives
A firm that is involved in assisting community organizations dedicated to education, charities and the arts is conducting a social responsibility measurement in the area.
problem-recogn ition
economic function
social investment
The Finance department at Lewis & Sons only accounts for 10 of the employees, but wields the most decision-making power and controls resources and information. As a result, the Finance department is considered to be a within the organization.
majority group
determinant group
secondary group
splinter group
model minority
In an organization, the group of people who lack critical resources, acceptance and social status is known as the _
special interest group
prime group
majority group
advocacy group
minority group

23. are statistical characteristics of a population.
In the stage, managers are unaware of behaviors they engage in that are problematic for members of other groups.
conscious competence
unconscious incompetence
controlled competence
conscious incompetence
unconscious competence
According to Donaldson and Scannell, managers in the stage are the most effective with respect to interacting in a diverse workforce.
conscious competence
unconscious competence
unconscious incompetence
conscious competition
conscious incompetence

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. A country in which an investment is made by a foreign company is termed as a(n) _
parent country
expatriate country
subordinate country
host country
home country
Hugh is an American citizen currently living in Denmark. He works for a company that has its headquarters in France. He is a(n) _
host-country national
dual citizen
home-country national
third-country national
3. Which of the following is true for employees of multinational organizations?
Expatriates and third-country nationals have to be relocated and undergo training.
A host-country national is an organization member who lives and works in a country where he or she does not have citizenship.
A third-country national works for a foreign organization in its home country.
A host-country national will face problems adjusting to the culture of the country in which he works.
Host-country nationals are usually the most expensive to employ.
The function of management involves determining how an organization will achieve its objectives.
observi ng
When a United States computer manufacturer sells a shipment of 40 computers to a retailer in Germany, the computer manufacturer is engaged in the process of _
developing a I icense agreement
repatriati ng
direct investing

6. If a company in the United States allows a company in England to use its brand name for a fee, the company is said to have entered into a(n) _
export agreement
import agreement
direct investing agreement
venture agreement
license agreement
7. Which of the following countries is a member of the APEC?
The manager of a multinational corporation in the u.s. thinks that following U.S. management practices is best for its operations in New Zealand because U.S. management practices are better than the management practices prevalent in New Zealand. This manager is said to have a(n) attitude.
The organization transcends any single home country with ownership, control and management being from many different countries.
The proportion of the total management system that a decision will affect is called the _
scope of the decision
span of control
level of management
unity of command
discretionary area

An alternative that is considered feasible for solving an existing problem and for implementation is _
Jared recently sent an e-mail to all the members of his department asking them for their opinions about where the department should have its quarterly team lunch. The response was overwhelming as Jared received more than 40 suggestions. This is an example of the _
confirmation bias
paradox of choice
loss aversion effect
confidence bias
bandwagon effect
13. Which of the following is the final step in the decision-making process?
Select the most beneficial alternative
Gather feedback to find out if the problem is solved
Take action
Identify organ izational objectives
I mplement the selected alternative
14. refers to the departure from rational theory that produces suboptimal decisions.
Bounded rationality
15. The formula for expected value (EV) is _
income x probability
cost of risk x probability
income / probability
cost of risk / probabi I ity
interest rate x probability

16. An SBU with a relatively small market share of a low-growth market is a _
low-cost leader
cash cow
question mark
Dun’s Burgers has decided to open takeaway counters across the city that will be open until 11 p.m. to cater to people who return late from work. This turns out to be an excellent strategy as Dun’s becomes a hot favorite with the people who work late shifts. This is an example of strategy.
technology enhancement
cost leadership
18. is the ability to provide the organizational resources necessary to implement a strategy.
Monitoring skill
Allocati ng ski II
Tactical skill
I nteracti ng ski II
Organizing skill
19. is the ability to create throughout the organization a network of people who can help solve implementation problems as they occur.
Allocating skill
Tactical skill
Interacting skill
Monitoring skill
Organizing skill
20. is short-range planning that emphasizes the current operations of various parts of the organ ization.
Tactical planning
Operational planning
Strategic planning
Intermediate planning
Strategic control

21. A is a single-use plan designed to carry out a special project within the organization.
22. Planning for plant facilities and human resources are instances of _
environmental planning
community planning
system planning
input planning
process planning
Which scheduling tool is typically used to schedule management system inputs such as human resources and machinery?
Planning sheets
SWOT analysis
Work flow diagrams
PERT diagrams
Gantt charts
24. Which of the following statements is true regarding the critical path of a PERT network?
It plays a negligible role in controlling the completion time of the project.
It is essentially a bar graph mainly used for scheduling resources.
It refers to the sequence of events and activities requiring the shortest period of time to complete.
A delay in completing the sequences in the critical path causes no delay in completing the project.
It provides an insight into how the unrealistic features of a schedule can be modified.
25. Which of the following is the fourth primary step in designing a PERT network?
Determining the time needed for the completion of each activity or event
Designing a PERT network reflecting all the information needed
Listing the sequence in which the activities/events have to be performed
Listing all the activities or events that must be accomplished for the project
Identifying the sequence of events and activities requiring the longest period of time to complete
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. According to Fayol’s guidelines for organizing resources, you should _
not use sanctions against faults and errors
make extensive use of regulations and paperwork
establish multiple guiding authorities
recognize the unity of command
not link rewards to performance
2. The second and third steps of the organizing process focus on the _
allocation of resources and directives
results of the organizing strategy
tasks to be performed within the management system
organizational plans
organizational goals and objectives
Which of the following is one of the three main components of the management system that Weber termed a bureaucracy?
a loosely defined organizational hierarchy
minimum regulations and paperwork
emphasis on the human variable
close, personal relations among organization members
detai led procedures and ru les
4. Which of the following is one of Follett’s guidelines on coordination?
The human element should be minimized in coordination.
Managers can assume that if their system shows coordination now, it will show coordination in the future.
The communication process is an essential consideration in any attempt to encourage coordination.
Coordination can be achieved with least difficulty through vertical relationships.
Personal communication should be minimized in coordination.
5. Informal structure is _
usually represented in a pyramid form
represented primarily by the organization chart
usually identical to an organization’s formal structure
defined as the relationships among organizational resources as outlined by management
molded by individual norms and values and social relationships
6. is directly related to the concept of the scalar relationship-that is, the chain of command.
Matrix structuring
Horizontal dimensioning
Vertical dimensioning
7. Which of the following is a criticism of Graicuna’s work in the span of management?
He does not take into account managers’ relationships outside the organization.
He does not recognize the principle of unity of command.
He fails to specify what will happen if the number of subordinates increases or decreases.
He takes into account managers’ relationships outside the organization.
He failed to emphasize the importance of span of management on the organization.
Pixel Technologies, a manufacturer of electronic products and cell phones, has departmentalized the organization on the basis of by dividing the business into two divisions-Electronics Retai lers and Cell Phone Retai lers. Identify the departmentalization mode being used in this company
At Landmark Constructions, crucial projects are handled completely by project managers who are empowered to borrow marketing, sales, engineering, finance and R&D staff and other employees from various parts of the organization to complete their projects. Identify the departmentalization mode being used in this company.
HR Village, a staffing company, has invited applications for the position of director of recruitment and compensation. This position is accountable for planning, organizing, and managing recruitment and compensation services for the company. This list of specific activities is an example of a _
job evaluation
work plan
job specification
work sample
job description
1l. The first step in the functional similarity method of dividing jobs is to _
designate appropriate activities that must be performed to reach desired objectives
design specific jobs by grouping similar activities
make specific individuals responsible for performing specific jobs
examine management system objectives
create an organ ization chart
12. A manager responsible for executing a limited portion of a function has _
specific responsibility
operating responsibility
general responsibility
organizational responsibility
consu Itative responsi bi I ity
Which of the following is NOT one of the four key dimensions for appraising manager responsi bi I ity?
Behavior with stockholders
Behavior with subordinates
Personal attitudes and val ues
Behavior with other groups
Behavior with upper management
14. consists of the right to advise or assist those who possess line authority.
Lateral authority
Rational-legal authority
Informal authority
Staff authority
Functional authority
The management philosophy which states that individuals will be held liable for how well they use their authority or perform their activities, and wi II be rewarded or punished for doing so is
central ization
line authority
rei nforcement
16. changes emphasize increasing organizational effectiveness by changing controls that influence organization members during the performance of their jobs.
Which of the following is a type of organizational change that emphasizes modifying certain aspects of organization members to increase organizational effectiveness?
structural change
people change
administrative change
managerial change
behavioral change
The managerial grid proposes that various managerial styles can be described by a manager’s concern for _
quantity and quality
customers and company
power and acceptance
production and people
profit maximization and revenue maximization
The bodily strain that an individual experiences as a result of coping with some environmental factor is called _
A manager wants to implement some changes in the working hours of employees. Two groups of workers oppose this decision and have contrasting opinions. The manager feels arriving at a solution that will be acceptable to both parties is impossible. Which of the following strategies is best suited to handle this conflict?
Which of the following is an example of a macro barrier when a manager communicates with his or her subordinates?
The manager is a specialist in information technology and tends to use technical jargon.
The subordinates constitute a diverse population and speak different languages.
The subordinates have a strong negative attitude toward the manager.
The manager considers the subordinates to be irresponsible and unprofessional.
The manager uses words that have multiple meanings.
George is the human resources manager of a small scale manufacturing company. Which of the following is the best example of nonverbal communication?
He uses harsh words during a meeting with one of his co-workers.
He prepares a performance appraisal report for one of the employees.
He sends an angry e-mail to one of the employees.
He uses a loud tone when speaking with a group of employees.
He uses words with implicit meanings when he talks to subordinates.
The members of a company’s marketing team regularly meet with their peers from the R&D department to share information and insights on customer product preferences that they have gathered through market research. This is an example of which of the following types of communication?
24. Which of the following grapevine patterns tends to distort messages the most?
Sandra finds out that a rumor about her is doing the rounds in the office-she supposedly had a rift with her manager over her performance review and is now planning to quit the company. Though completely untrue, she sets out to find out the person who started the rumor. She confronts several of her colleagues about the matter and everyone tells her that they heard it from Sheela, her boss’s secretary. This is an example of the grapevine.
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. is the inner state that causes an individual to behave in a way that ensures the accomplishment of some goal.
Cognitive dissonance
Leadersh i p
Which of the following are the three basic categories of needs identified by Clayton Alderfer in his ERG theory?
esteem, recognition, and goal
existence, recognition, and growth
existence, related ness, and growth
existence, relatedness, and goal
esteem, relatedness, and goal
3. In Alderfer’s ERG theory, need refers to the need for continuing personal development.
Which of the following motivation theories focuses on the personal and natural development of people to explain human needs?
McClelland’s acquired needs theory
Argyris’s maturity-immaturity continuum
Alderfer’s ERG theory
Herzberg’s two-factor theory
The Vroom expectancy theory
According to McClelland, people having the desire to maintain close, friendly, personal relationships have a high need for _

6. Which theory is a set of essentially positive assumptions about human nature?
Theory X
Expectancy Theory
Theory Z
Equity Theory
Theory Y
The process of moving workers from one job to another rather than requiring them to perform only one simple and specialized job over the long run is _
cross training
team management
job enrichment
job enlargement
job rotation
8. is the presentation of an undesirable behavior consequence or the removal of a desirable behavior consequence that decreases the likelihood the behavior will continue.
Positive reinforcement
Exti nction
Negative rei nforcement
In Likert’s Management System, which style of management is characterized by complete trust and confidence in subordinates?
System 4
System 3
System 1
System 2
System 5
10. Which of the following would be an example of a task group?
A group set up to consider the feasibility of a new product
A group of supervisors responsible for scheduling weekly work
A group of students coming together because of their music preferences
A group meeting to prepare the routine financial reports
A group of employees forming an exercise group
11. Which of the following is one of the major reasons to establish a committee?
To perpetuate social and cultural values that group members consider important
To obtain status and social satisfaction that people might not enjoy without group membership
To develop new ideas for solving existing organizational problems
To encourage groupthink
To handle routine organizational activities
12. Which of the following statements about self-managed work teams is true?
Self-managed teams consist of 5 to 15 employees who work together to produce an entire product.
Members of a self-managed team learn specific tasks required to produce a product and avoid job rotation.
Self-managed teams never take over managerial duties as scheduling work and vacations and ordering materials.
Self-managed work teams evolved in the early to middle 1980s out of problem-solving teams.
Self-managed work teams laid the foundation for the special-purpose teams that arose in the 1990s.
13. Interest groups are _
informal groups
task groups
command groups
formal groups
self-managed work teams
14. Which of the following is one of the primary benefits of informal group membership?
Developing new ideas for solving existing organizational problems
Perpetuating social and cultural values that group members consider important
Generating clarity on what support and input each employee can expect from others
Providing basic structure of division of work and responsibilities
Promoting discipline in the organization
Which of the following is considered a people-related factor that leads to effective team performance?
Mutual trust and team spirit
Proper technical direction and leadership
High power struggle within the team
Stable goals and priorities
Organizational stability and job security
16. is a component of creativity that refers to everything an individual knows and can do in the broad domain of his or her work.
Creative thinking
17. Which of the following is characteristic of a person who is more likely to think creatively under high time pressure?
He or she can focus on one activity for a significant part of the day as he or she is und isturbed or protected.
He or she receives little encouragement from senior management to be creative.
He or she tends to have more meetings and discussions with groups rather than with individuals.
He or she is less likely to engage in less collaborative work overall.
He or she does not get the sense that the work he or she is doing is important.
Which of the following steps of the innovation process establishes a new idea that could help the organization be more successful?
Diffusi ng
I ntegrati ng
Using video conferencing to help organization members across the globe communicate more effectively is an example of a idea.
Which of the following is one of the possible creative ideas for enhancing organizational success based on Deming’s thoughts on total quality management?
Establ ish an organ izational bias toward hand I ing qual ity issues i mmed iately.
Eliminate production processes based simply on producing a quota.
Dedicate top management to having customers receive products as promised.
Begin each management meeting with a factual and financial review of quality.
Dedicate all managers to getting the jobs done correctly the first time.
21. is managerial activity aimed at bringing organizational performance up to the level of performance standards.
Ladderi ng
Contrarian investing
Corrective action
Market correction
22. The extent to which an individual is able to influence others so they respond to orders is called
23. In management terms, information refers to _
a collection of facts or statistics
the skill set of the employees carrying out a particular organizational function
a collection of numbers, characters, images or other outputs from devices that gather physical quantities and symbols
the set of conclusions derived from the analysis of data that relate to the operation of an organ ization
raw, unorganized representations of individual facts and/or figures
24. Which of the following is NOT a factor that determines the value of information?
I nformation quantity
Information timeliness
I nformation appropriateness
Information quality
I nformation cost
25. Which of the following is the last step in operating an IS properly?
using the information
determining appropriate data
transmitting data
determining information needs
gathering appropriate data


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