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1. MGT 230 Final Exam
Answers are HERE!
1) Planning involves which of the following?
A. Analyzing current situations (most correct, if only one is to be selected)
B. Determining rewards for goals achievement
C. Motivating employees
D. Implementing necessary changes
2) _______ is specifying the goals to be achieved and deciding in advance the appropriate actions
needed to achieve those goals.
A. Staffing
B. Leading
C. Organizing
D. Planning
3) Advances in genetic engineering and biotechnology are expected to produce some food products that
will become available year-round even in northern climates. These changes will provide grocers with an
opportunity to reduce their shipping costs while at the same time, offering fresher produce to their
customers. These advances are an example of changes in the
A. technological environment
B. economic environment
C. political environment
D. ecological environment
4) _________ trends regarding how people think and behave have major implications for management
of the labor force, corporate social actions, and strategic decisions about products and markets.
A. Psychological
B. Economic
C. Technological
D. Societal

2. 5) Which of the following is a step in the decision-making process?
A. Generating an idea
B. Good business planning
C. Evaluating the decision
D. Delegating a task
6) Which is a step in the decision-making process?
A. Resolving and reducing conflict
B. Making the choice
C. Using the lack of structure
D. Delegating a task
7) The targets or ends the manager wants to reach are called
A. goals
B. missions
C. visions
D. strategies
8) In the _______________ stage of the planning process, managers should weigh the advantages,
disadvantages, and potential effects of each alternative goal and plan.
A. goal and evaluation
B. goal and plan selection
C. implementation
D. alternate goals and plans
9) Tactical planning would include which of the following?
A. Profit goals
B. Design, test, and install the equipment needed to produce a new product line
C. Human resources requirements
D. Return on investment
10) The internal analysis component of the strategic management process assesses the organization’s
A. performance levels
B. competitors

3. C. industry growth rate
D. product substitutions in the market
11) Suppose you face a question regarding how to handle a defective piece of equipment that your
company sold. To tell the customer would cost you a substantial amount of money, but if the equipment
fails, it could lead to serious injury of the customer. You decide to disclose the defect and suggest
alternatives to eliminate the risk of injury. This decision employs which ethical approach?
A. Universalism
B. Egoism
C. Relativism
D. Virtue ethics
12) Your organization faces an ethical question. There has been a problem with your accounting process
that has resulted in lower profits being reported than were actually earned. You are attending a meeting
where senior management is deciding how to handle the situation. The people at the table have varying
views of what action to take and why. John wants to report the error immediately because he believes
that it is the right thing to do and that will keep them all out of jail. Bruce wants to report the error
because it is the honest thing to do. After hearing his colleagues' opinions, Carlos says he wants to
report the error as well because he believes the group is right. Carlos is using which ethical system for
his decision making?
A. Universalism
B. Relativism
C. Utilitarianism
D. Virtue ethics
13) In the study by Lawrence and Lorsch, companies in complex, dynamic environments developed
_____ levels of differentiation; and _____ levels of integration.
A. low; low
B. high; high
C. low; high
D. high; low
14) An aspect of the organization’s internal environment created by job specialization and the division of
labor is called
A. differentiation
B. integration
C. division of labor

4. D. specialization
15) An organization with departmentalization that groups units around products, customers, or
geographic regions is called a
A. divisional organization
B. centralized organization
C. matrix organization
D. functional organization
16) Which of the following statements about matrix organizations is true?
A. A matrix organization is the same as a functional organization.
B. A matrix organization is the same as a product organization.
C. A matrix organization is a hybrid of the functional and divisional organizational forms.
D. A matrix organization is considered out-of-date compared to the organic organization.
17) An organization with departmentalization that groups units around products, customers, or
geographic regions is called a
A. centralized organization
B. matrix organization
C. virtual organization
D. divisional organization
18) Sports International (SI) began business by making shoes for athletes. They soon expanded into
making shoes for non-athletic purposes. They now manufacture and distribute clothing, sporting
equipment, and protective sports gear worldwide. They are departmentalized by products sold to
serious athletes, products sold to "weekend" athletes and products sold to sports teams. SI has utilized
which form of departmentalization?
A. Geographic
B. Customer
C. Functional
D. Matrix
19) The trait known as leadership motivation suggests that great leaders
A. can motivate others to work hard
B. can motivate others to become leaders
C. can motivate others to join

5. D. want to lead
20) A leadership perspective that attempts to identify what effective leaders do and the behaviors they
exhibit is referred to as the
A. behavioral approach
B. trait approach
C. transformational leadership
D. strategic approach
21) __________ leadership invites colleagues at the same level to solve problems together.
A. Horizontal
B. Collegial
C. Lateral
D. Linear
22) Leaders who relate to others to serve their needs and enhance their personal growth while
strengthening the organization are known as
A. lateral leaders
B. shared leaders
C. bridge leaders
D. servant-leaders
23) The basic goal of managing diversity is to:
A. treat all people the same.
B. increase the numbers of minorities in business.
C. enhance organizational cohesiveness.
D. understand and value employee differences.
24) Future trends in the labor force include a
A. smaller labor force
B. more experienced labor force
C. more homogenous labor force
D. younger labor force
25) Behavior that gives purpose and meaning to organizations, while envisioning and creating a positive
future, is known as

6. A. strategic leadership
B. supervisory leadership
C. organizational leadership
D. task leadership
26) The correspondence between actions and words that include characteristics such as honesty and
credibility is known as
A. drive
B. self-confidence
C. knowledge of the business
D. integrity
27) Owners from two businesses have asked you which type of control system they should utilize. To
help you make your decision, they have each provided a brief description of their organization. Alpha
Omega, Inc., is a large corporation built in the 1950s. They produce chemical concentrates for industrial
cleaning. Their organization uses a strict set of rules and regulations with their workforce. They have the
ability to track a large amount of data using statistical techniques. Mid-Atlantic Health is a regional
medical center. They want to use a control system that will allow them to tie pricing of services and
profits to specific services in the medical center. The control systems that should be used in the
scenarios above were developed by
A. William Ouchi
B. Xerox
C. Frederick Taylor
D. Motorola
28) Your manager is speaking to a group of employees about a problem in your department. Employees
are not complying with the rules regarding clocking in and clocking out each day. The rules in this
situation are very important as employees will not receive their correct pay if the clocking procedures
are not followed. There are three suggestions being considered to address this problem.
Employees will be monitored at the entrance during shift changes to make sure that each complies with
the procedure.
Reports will be reviewed at the end of each pay period. The reports will contain data tracking the
number of employees not complying with the procedures each shift. Employees violating the procedure
will be counseled to correct the problem.
A new procedure will be developed describing an easier procedure for employees to follow. Training will
be conducted so that each employee knows the policy and the procedure before it is enacted.
Option 1 describes which approach to bureaucratic control?
A. Feedback

7. B. Concurrent
C. Feedforward
D. Market
29) Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her job
as a manager and how he or she spends time. Using the description below, which function of
management is the CEO most likely describing in this example?
"My job, for some part of each day, is to empower our employees to think of things in new and different
ways, not just to come to work and complete the tasks on a list."
A. Organizing
B. Leading
C. Controlling
D. Decision making
30) Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her job
as a manager and how he or she spends time. Using the description below, which function of
management is the CEO most likely describing in this example?
"Every six months or so, my senior management team and I meet to discuss the goals that will be
achieved over the next year, three years, and beyond. We then make sure we are clear on who will take
responsibility to see that the appropriate actions are undertaken to achieve our goals within the time
frame we set."
A. Planning
B. Organizing
C. Leading
D. Decision making