BAM 562  Modern Management Unit1, Unit 2, Unit 3 and Unit4

Publisher: 
Pearson Prentice Hall

BAM 562 
Modern Management 
Text: Modern Management: Concepts and Skills 
Twelfth Edition, 2012 
ISBN-10: 0132176319 
Authors: 
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. 
Organizing 
Planning 
Controlling 
Monitoring 
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. 
Capital 
Hardware 
Monetary 
Raw material 
Technology 
4. resources refer to the ingredients used directly in the manufacturing of products. 
Capital 
Technology 
Raw material 
Hardware 
Monetary 
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. 
Developing 
Clarifying roles 
Recognizing 
Supporting 
Consulting 
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. 
decline 
maintenance 
establishment 
plateauing 
exploration 
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. 
triangular 
laissez-faire 
lower-level 
democratic 
open-system 
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 
problem-solving 
quality-of-life 
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 
53

23. are statistical characteristics of a population. 
Chronographics 
Demographics 
Reprographics 
Biographics 
Psychographics 
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 
repatriate 
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. 
planning 
controlling 
observi ng 
influencing 
organizing 
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 
exporting 
direct investing 
importing

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? 
Egypt 
Australia 
Argentina 
Brazil 
Germany 
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. 
xenocentric 
geocentric 
ethnocentric 
polycentric 
gynocentric 
The organization transcends any single home country with ownership, control and management being from many different countries. 
domestic 
pan-national 
transnational 
international 
multinational 
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 _ 
tangible 
intuitive 
relevant 
certain 
stable 
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. 
Dogmatism 
Uncertainty 
Satisficing 
Bias 
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 _ 
star 
low-cost leader 
cash cow 
question mark 
dog 
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 
differentiation 
focus 
cost leadership 
divestiture 
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. 
budget 
rule 
program 
procedure 
policy 
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 
Departmentalizing 
Lateralizing 
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
functional 
customers 
geography 
products 
matrix 
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. 
Product 
Geographic 
Functional 
Customer 
Matrix 
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 
accountability 
central ization 
delegation 
line authority 
rei nforcement 
16. changes emphasize increasing organizational effectiveness by changing controls that influence organization members during the performance of their jobs. 
Structural 
Administrative 
People 
Managerial 
Technological 
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 _ 
anger 
stress 
aggression 
conflict 
denial 
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? 
Forcing 
Deflecting 
Compromising 
Resolving 
Avoiding 
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? 
Virtual 
Vertical 
Upward 
Downward 
Lateral 
24. Which of the following grapevine patterns tends to distort messages the most? 
Group 
Probability 
Single-strand 
Gossip 
Cluster 
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. 
single-strand 
probabiIity 
serial 
cluster 
gossip 
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. 
Emotion 
Cognitive dissonance 
Motivation 
Socialization 
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. 
existence 
relatedness 
growth 
esteem 
emotional 
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 _ 
affiliation 
achievement 
power 
growth 
existence

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 
Manipulation 
Punishment 
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. 
Motivation 
Creative thinking 
Expertise 
Perception 
Reasoning 
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? 
Inventing 
Diffusi ng 
Monitoring 
I ntegrati ng 
Developing 
Using video conferencing to help organization members across the globe communicate more effectively is an example of a idea. 
process 
infrastructure 
technology 
product 
management 
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 
Reprogramming 
Market correction 
22. The extent to which an individual is able to influence others so they respond to orders is called 
accountability 
authority 
strength 
power 
responsibility 
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