MGMT 201 Summer I, 2016 Revision MCQ with anwers

1) Perception biases include:

A) halo effect, stereotypes and selective perception.
B) selective perception, target and context.
C) contrast effect, target and rationalization.
D) selective perception, situation and context.
E) past, present and future conditions.
2) The structured decision-making process includes, as a step:
A) decide the criteria for the next decision.
B) re-evaluate the weightings of the decision-making criteria when the result is not that identified
upfront.
C) select the alternative that minimizes the criteria.
D) assign alternatives to evaluate the criteria.
E) assign criteria to evaluate alternatives.
3) Types of decisions include:
A) certainty, risk and uncertainty.
B) anchoring, confirmation and escalation.
C) routine, programmed and structured.
D) programmed, unstructured and structured.
E) ethical, satisfying and satisficing.
4) According to H. Simons bounded rationality model, managers
A) systematically seek out new alternatives.
B) satisfy themselves with the first solution that appears good enough.
C) choose the last alternative encountered that solves the problem.
D) decrease commitment to previous decisions despite evidence that it is correct.
E) none of the above.
5) A(n) __________ occurs when decision-makers think they know more than they do or hold
unrealistically positive views of themselves and their performance.
A) hindsight bias.
B) confirmation bias.
C) overconfidence bias.
D) sunk costs error.
E) self-serving bias.

6) Sticking to and increasing investments into a decision despite evidence that is has not been successful
is a phenomenon called:
A) confirmation bias.
B) intuition.
C) overconfidence bias.
D) hindsight bias.
E) escalation of commitment.
7) Managers plan to:
A) be prepared when changes occur in the top management team.
B) anticipate environmental changes and develop effective responses.
C) decide what needs to be done to change the environment.
D) have the appropriate materials available when the demand for them materializes.
E) avoid internal changes.
8) Types of plans include:
A) functional plans, departmental plans and overall plans.
B) operational plans, strategic plans and specific plans.
C) objective plans, flexible plans and general plans.
D) SMART plans, subjective plans and MBO plans.
E) realistic plans, achievable plans and timely plans.
9) The concepts of goals and objectives
A) can be used interchangeably; the two words mean the same thing.
B) mean different things: goals are long-term, objectives are short-term.
C) mean different things: goals are short-term, objectives are long-term.
D) mean different things: goals are for top managers, objectives for middle managers.
E) mean different things: goals are for middle managers, objectives for top managers.
10) Top executives are mostly concerned with ________ while first-level managers focus on ______.
A) objectives; plans.
B) overall plans; directional plans.
C) flexible plans; specific plans.
D) strategic plans; operational plans.
E) MBO plans; SMART plans.
11) Which of the following statements about planning is true?
A) It is concerned with means but not ends.
B) It is concerned with ends but not means.
C) It is concerned with both means and ends.
D) It increases uncertainty.
E) It establishes goals or standards that eliminate the need for controls.
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12) Which of the following is true of the consequence of planning on organizational performance?
A) Planning is associated with better financial results on the medium to long term.
B) Organizations that plan necessarily outperform those that do not plan.
C) The amount of planning done is more important to performance than the quality of planning.
D) Companies see the impact of planning on performance a year after starting the planning process.
E) Planning establishes goals or standards to replace controls.
13) Which of the following most likely explains why planning fails to lead to higher performance?
A) The company overemphasized the control function.
B) A participative style of management was used.
C) Managers were not allowed enough autonomy.
D) The companys specific environment was unstable.
E) The company was poorly controlled.
14) Corporate growth strategies include:
A) cost leadership, differentiation and focus.
B) backward integration, forward integration and current offering.
C) concentration, related diversification and unrelated diversification.
D) market development, globalization and market share.
E) niche in the middle, unrelated diversification and multi-domestic expansion.
15) A company that is stuck in the middle cannot develop:
A) a cost or quality advantage.
B) strategic flexibility.
C) good planning techniques.
D) adequate High Performance Work Practices.
E) good services.
16) Business strategy is about:
A) deciding which departments can contribute to the bottom line.
B) deciding when launching new products or services.
C) deciding who is promoted to the Board of Directors.
D) deciding whether to compete on cost, quality or niche / focus.
E) deciding in which industries and markets the business is to compete.
17) __________ are positive trends in external environmental factors, while __________ are negative
trends.
A) Strengths; weaknesses.
B) Strengths; threats.
C) Opportunities; weaknesses.
D) Opportunities; threats.
E) Opportunities; risks.
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18) A(n) __________ strategy tries to address organizational weaknesses, stabilize operations and
revitalize organizational resources and capabilities.
A) diversification.
B) integration.
C) concentration.
D) renewal.
E) stability.
19) When an organization attempts to grow by merging with or acquiring firms in different but
associated industries, the strategy is known as a __________ strategy.
A) related differentiation.
B) horizontal integration.
C) vertical integration.
D) related diversification.
E) concentration.
20) When Nike decided to open its own chain of retail stores, it was pursuing which corporate strategy?
A) backward vertical integration.
B) forward vertical integration.
C) related diversification.
D) horizontal integration.
E) none of the above: this is an example of business strategy, not of corporate strategy.
21) Dimensions of organizational structure include:
A) functionalization, authorization and centralization.
B) authorization, departmentalization and organization.
C) specialization, formalization and centralization.
D) span of control, hierarchy and authority.
E) authorization, functionalization and decentralization.
22) The degree to which written rules and regulations direct employees and their managers is called:
A) social clustering.
B) span of control.
C) work specialization.
D) centralization.
E) formalization.

23) A manager organizes a plant that manufactures soap and toothpaste by asking engineering,
accounting, manufacturing and marketing employees to report to their respective head of departments,
as well as to the soap and toothpaste product managers. The resulting structure is an example of a:
A) bureaucracy.
B) virtual organization.
C) matrix.
D) boundaryless organization.
E) mechanistic design.
24) As far as organizational design goes, two extreme models are possible (if rarely met in practice):
A) bureaucratic and dynamic.
B) orgasmatic and morganatic.
C) mechanistic and organic.
D) central and flexible.
E) peripheral and rigid.
25) You have just been promoted to HR manager in a manufacturing plan. Which of the following should
automatically accompany your new position?
A) delegation.
B) higher compensation.
C) acceptance by employees.
D) authority and command.
E) self-actualization.
26) The structure of Honda Corporation is divided into four product groups: marine, automobiles,
motorbikes and gardening tools. Honda has a __________ structure.
A) divisional
B) simple
C) functional
D) matrix
E) boundaryless
27) Main Human Resources Management activities include:
A) performance management; information planning; labor systems.
B) performance management; health and safety; labor planning.
C) health and safety; marketing management; planning systems.
D) strategic management, performance management; labor management.
E) recruitment and selection, labor supply; information management.

28) Which of the following is true of college recruiting?

A) limited supply.
B) generates many unqualified candidates.
C) may not increase workforce diversity.
D) limited to entry-level positions.
E) small body of potential candidates.
29) Personality tests are weak predictors of job performance because:
A) answers probe hypothetical, self-reported behavior.
B) they are easily faked.
C) they are conducted under duress.
D) there is no consensual definition of what personality is.
E) all of the above.
30) As a decruitment option, ________ are a temporary involuntary termination that can last from a few
weeks to several months.
A) transfers.
B) early retirements.
C) layoffs.
D) attritions.
E) firings.
31) Which of the following decruitment methods is accomplished by not filling openings created by
normal retirements?
A) firing.
B) attrition.
C) reduced workweeks.
D) layoffs.
E) job sharing.
32) Recruitment is the process of
A) hiring from outside the organization.
B) locating, identifying and attracting potential employees.
C) hiring employees from competitors.
D) matching employment demand and supply.
E) re-hiring employees after lay-offs.

33) If human resource planning shows a surplus of employees, management may want to reduce the
organization's workforce through
A) jobbing.
B) recruitment.
C) expansion.
D) decruitment.
E) selection.
34) Grouping jobs on the basis of product or customer is called...
A) specialization.
B) divisional departmentalization.
C) clustering.
D) formalization.
E) centralization.
35) Removing management layers results in an organization
A) with more managers, each with a smaller span of control.
B) with less managers, each with a smaller span or control.
C) with the same number of managers.
D) with a flatter hierarchical structure.
E) with a taller hierarchical structure.
36) Functional departmentalization groups jobs by
A) tasks they perform.
B) type of customer they serve.
C) territories they serve.
D) products or services they manufacture or produce.
37) Work teams composed of individuals from various functional specialties are known as ________
teams.
A) differentiated.
B) weak.
C) product.
D) cross-functional.
E) divisional.

38) The line of authority that extends from the upper levels of management to the lowest levels of the
organization is called the
A) chain of command.
B) authorized line of responsibility.
C) unity of command.
D) responsibility factor.
E) span of control.
39) ________ is the obligation or expectation to perform a duty.
A) Span of control.
B) Responsibility.
C) Chain of command.
D) Unity of command.
E) Formalization.
40) The concept that defines the number of subordinates that report to a manager and that indirectly
specifies the number of levels of management in an organization, is called
A) authorized line of responsibility.
B) span of control.
C) unity of command.
D) responsibility factor.
E) centralization.
41) Everything else remaining equal, when the span of control ________, employee performance suffers
due to a lack of time, leadership and support.
A) becomes less cost efficient.
B) becomes moderate.
C) becomes too large.
D) remains too small.
E) becomes too formal.
42) In recent years, there has been a movement to make organizations more flexible and responsive
through
A) alternative organizational structure.
B) decentralization.
C) centralization.
D) customer-based structure.
E) narrower span of controls.

43) A(n) ________ organization is able to change rapidly as needs require.

A) organic.
B) mechanistic.
C) vertical.
D) horizontal.
E) efficient.
44) Structure is related to the size of the organization, such that larger organizations tend to have
________ than smaller organizations.
A) fewer rules and regulations.
B) less centralization.
C) less departmentalization.
D) more specialization.
E) more authority.
45a) A matrix structure violates a key element of organizational design called
A) unity of command.
B) span of management.
C) chain of command.
D) decentralization.
E) span of control.
45b) Studies have concluded that an organization's human resources department is a source of
A) frustration for employees.
B) problems for management.
C) strategic initiatives.
D) low-performance work practices.
E) distraction for top executives.
46) To improve workplace diversity, managers should
A) downsize.
B) widen the reach of their recruitment efforts.
C) ask employees to share the contact details of their friends and relatives.
D) recruit less minority candidates.
E) reduce workweeks.
47) In formal planning,
A) specific goals covering a period of years are defined.
B) general goals are developed and not written.
C) general goals covering an unspecified period of years are defined.
D) specific goals are developed and not written.
E) goals and objectives are written down, but kept secret.
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48) The effect of planning on managers is that it forces them to

A) respond indiscriminately.
B) consider the impact of change.
C) develop bureaucratic response models.
D) react to change.
E) ignore changes.
49) Planning is often called the primary management function because it
A) establishes the basis for all the other functions.
B) sets the tone for the organizational culture.
C) creates the vision for the organizational members to work toward.
D) offers some basis for future decision making.
E) all of the above.
50) Specific plans are clearly defined and
A) leave no room for interpretation.
B) give the managers authority to interpret the plans for their area of responsibility.
C) allow managers to interpret their "flexibility" on their own.
D) keep the stakeholders informed of the organization's objectives.
E) are never revised.
51) Goals provide the direction for all management decisions and actions and form the
A) bases against which actual accomplishments are measured.
B) profit basis that the organizations will accomplish for stockholders.
C) desired outcomes that the organizational members will achieve.
D) basis for the sharing of profits with the employees at the end.
E) basis for salary increases.
52) With traditional goal setting, the goals are set at the top level of management and
A) then they are broken down into sub-goals for each level of the organization.
B) then they are delegated to the next lower level to be achieved.
C) all the efforts to achieve those goals are directed by top management, to ensure that they are
achieved.
D) then it becomes the responsibility of first-line management to achieve those goals.
E) none of the above.

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53) Management by objectives (MBO) is a management system in which the first step is setting specific
performance goals that are
A) established and that can be easily accomplished.
B) determined by non-managerial employees.
C) developed in such a manner that the employees are self-directed and do not need supervision.
D) determined by top management.
E) up in the air.
54) A well-designed goal should be
A) identifiable to even the first-line supervisors.
B) specific but without a manageable time frame.
C) short and very specific about expected outcomes.
D) written in terms of outcomes rather than actions.
E) interpretable in conflicting ways.
55) The process of writing goals
A) is too time consuming.
B) is useless.
C) inspires innovative concepts.
D) forces people to think them through.
E) is relevant for incompetent managers.
56) ________ planning dominates managers' planning efforts at lower levels of the organization.
A) Functional.
B) Tactical.
C) Operational.
D) Strategic.
E) HR.
57) Planning for too long or too short a time period
A) is what commitment really is.
B) is effective planning.
C) depends on the organization.
D) is inefficient and ineffective.
E) allows for flexibility.
58) When can the traditional top-down approach to planning be effective?
A) When the planning involves lower level management.
B) When all managers understand are competent.
C) When the documents look impressive.
D) When the documents are prepared for the corporate planning staff.
E) When the environment is stable and predictable.
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59) What makes planning dangerous?

A) Plans cannot be developed for a dynamic environment.
B) Formal planning reinforces success, which eventually leads to failure.
C) Just planning isn't enough.
D) Planning creates rigidity.
E) all of the above.
60) Organizations are normally flattened as the responsibility for establishing goals and developing plans
is
A) pushed to the lowest organizational levels.
B) shifted to a formal planning department.
C) moved to the middle organizational levels.
D) more the work of the financial department.
E) centralized.

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