MGT 330 Final Exam Version 4 Answers 1) _______________ involves analyzing a situation, determining goals to be pursued, and deciding upon the actions that will be taken to achieve these goals. A. Planning B. Organizing C. Staffing D. Leading 2) The key management functions include: A. Marketing, finance, accounting, and production B. Planning, leading, controlling, and organizing C. Planning, operations, labor, and contracting D. Hiring, training, appraising, and firing 3) Planning involves all of the following EXCEPT: A. Deciding actions to be taken B. Determining rewards for goals achievement C. Analyzing current situations D. Determining objectives 4) The four traditional functions of management include planning, organizing, leading, and service. A. True B. False 5) Building a dynamic organization is another way of describing which function of management? A. Organizing B. Planning C. Leading D. Controlling 6) The macroenv

1. MGT 330 Final Exam Version 4
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MGT 330 Final Exam Version 4 Answers
1) _______________ involves analyzing a situation, determining goals to be pursu
ed, and

2. deciding upon the actions that will be taken to achieve these goals.
A. Planning
B. Organizing
C. Staffing
D. Leading
2) The key management functions include:
A. Marketing, finance, accounting, and production
B. Planning, leading, controlling, and organizing
C. Planning, operations, labor, and contracting
D. Hiring, training, appraising, and firing
3) Planning involves all of the following EXCEPT:
A. Deciding actions to be taken
B. Determining rewards for goals achievement
C. Analyzing current situations
D. Determining objectives
4) The four traditional functions of management include planning, organizing,
leading, and service.
A. True
B. False
5) Building a dynamic organization is another way of describing which function of

3. management?
A. Organizing
B. Planning
C. Leading
D. Controlling
6) The macroenvironment includes all of the following EXCEPT:
A. Government policies
B. Technology
C. International developments
D. New entrants
7) Amy Jane, a new manager at C & D Grooming, has been asked to focus o
n the
competitive environment of the organization. Which of these factors is among those
Amy Jane should focus on?
A. Technology
B. Suppliers
C. Government policies
D. Demographics
8) The competitive environment includes all of the following EXCEPT:

4. A. Financial status
B. Competitors
C. Suppliers
D. Customers
9) Organizations that are affected by and that affect their environment are called
____________.
A. outputs
B. inputs
C. open systems
D. macroenvironment
10) Robert was recently hired as the workplace safety compliance officer at ABC
Power Company. Robert will have the responsibility to monitor regulations from
which of these government agencies?
A. Occupational Safety and Health Administration
B. National Labor Relations Board
C. Federal Communications Commission
D. Environmental Protection Agency
11) Specific government organizations in a firm’s immediate task environm
ent are

5. called ______________.
A. new entrants
B. substitutes
C. regulators
D. economic indicators
12) The assignment of different tasks to different people or groups is the:
A. Organization structure
B. Value chain
C. Division of labor
D. Strategic plan
13) The assignment of additional responsibilities to a subordinate is referred to as:
A. Centralization
B. Span of control
C. Delegation
D. Pandering
14) If Rosanne, a manager at XYZ delegates responsibility to a subordinate, she is
relieved of the ultimate responsibility and accountability to higher-ups.
A. True
B. False
15) The first step in effective delegation is selecting the person to whom you will

6. delegate.
A. True
B. False
16) Which is the first step in the formal planning process?
A. Situational analysis
B. Implementation
C. Monitor and control
D. Goal and plan evaluation
17) Plans are:
A. Targets a manager wants to reach
B. Specific to differing industries
C. Inappropriate when resources are scarce
D. Actions taken to achieve goals
18) The outcome of situational analysis is:
A. The identification of the consequences of alternatives under consideration
B. The identification of planning assumptions, issues, and problems
C. The identification of alternative plans of action
D. The identification of contingency plans to be followed under various
scenarios

7. 19) The targets or ends the manager wants to reach are called:
A. Plans
B. Vision
C. Mission statement
D. Goals
20) Which of the following does NOT describe effective plans in organizations?
A. They provide a clear road map.
B. They may be formal or informal.
C. They are purposeful.
D. They are flexible.
21) _____________ plans might be referred to as “what-if” plans.
A. Strategic
B. Standing
C. Contingency
D. Single-use
22) The different types of effective plans include:
A. Complex
B. Artificial
C. Standing
D. Inconsistent

8. 23) A plan to integrate new employees into a new system of payroll is an example
of
which type of plan? Assume that you anticipate making this change only once.
A. Single-use plan
B. On-site plan
C. Implementation plan
D. Standing plan
24) A plan designed to achieve a set of goals that are not likely to be repeated in th
e
future is a:
A. Mission statement
B. Strategy
C. Standing plan
D. Single-use plan
25) A plan that focuses on ongoing activities and may become a more permanent
policy or rule is a:
A. Mission statement
B. Strategy
C. Standing plan
D. Single-use plan

9. 26) The moral principles and standards that guide behavior in the world of business
are:
A. Business ethics
B. Business development
C. Business principles
D. Business philosophy
27) A situation, problem, or opportunity in which an individual must choose among
several actions that must be evaluated as morally right or wrong is:
A. Business ethics
B. Moral rights
C. A personal issue
D. An ethical issue
28) A system of rules that governs the ordering of values is referred to as:
A. Legal system
B. Corporate legitimacy
C. Ethics
D. Justice
29) Which of the following statements is TRUE regarding employee behavior?
A. When corporations behave badly, it is usually not the problem of top

10. executives or rank-and-file employees.
B. There is no evidence that corporations ever behave badly .
C. When corporations behave badly, rank-and-file employees suffer
most.
D. When corporations behave badly, only the top executives suffer.
30) Which of the following is NOT an example of a value, as defined in the textbook
?
A. Respect for others
B. Loyalty
C. Financial success
D. Honesty
31) Honesty, caring, loyalty, fairness, and integrity are all examples of:
A. Citizenship
B. Values
C. Ethics
D. Self-focus
32) Human resources planning has three stages. They are:
A. Hiring, training, and firing
B. Recruiting, screening, and hiring

11. C. Planning, programming, and evaluating
D. Planning, executing, and delivering
33) The programming stage of human resources management consists of:
A. Implementing plans determined earlier
B. Determining appropriate automation methods
C. Hiring and firing
D. Evaluating employee performance levels
34) The planning process of human resources management begins with:
A. Recruiting individuals who will assist the organization to realize its
business plans
B. Evaluating an organization’s present employees and their
capabilities to fulfill the organization’s business plans
C. Hiring people who can assist the organization to realize its business plans
D. Determining the number and types of people needed to realize the
organization’s business plans
35) The final stage in the human resource planning process is to:
A. Distribute compensation adjustments
B. Restart the process
C. Evaluate the activities conducted to ensure they produce the desired
results

12. D. Discharge those employees determined to be ineffective at realizing
organizational goals
36) Companies use empowerment programs, continuous improvement, and total
quality initiatives to achieve:
A. Imitation
B. Rareness
C. Value
D. Complete organization
37) Establishing formal systems for managing people in the organization is the
function of:
A. Job analysis
B. Labor relations
C. Orientation training
D. Human resources management
38) An organization chart conveys all of the following EXCEPT:
A. How the work is divided
B. How decisions are made
C. The work performed by each unit
D. Who reports to whom

13. 39) Which of these is created through the division of labor and job specialization?
A. Differentiation
B. Coordination
C. Integration
D. Span of control
40) A process in which different individuals and units perform different tasks is:
A. Differentiation
B. Specialization
C. Accountability
D. Authority
41) Ruby recently accepted a job with a large insurance firm as an internal auditor.
Ruby has found that her job is different than the internship she had at an accountin
g
consulting firm. The insurance firm has strictly defined job responsibilities and lines
of communication. For every decision Ruby needs to make, approval must be
obtained from upper management. Overall, she has found the atmosphere to be
quite formal as compared to the internship. Ruby has concluded that the insurance
firm has:
A. An ineffective structure
B. A matrix design

14. C. A high degree of centralization
D. Decentralized authority
42) Which of the following statements regarding departmentalization is FALSE?
A. Geographical departmentalization can allow an organization to
provide faster service.
B. In a product structure, information needs are managed more easily.
C. Functional departmentalization is not as strong an organizational building
block as it once was.
D. Organizations will be most effective if they utilize a consistent form of
departmentalization.
43) Which of the following is an advantage of product departmentalization?
A. Information needs managed more easily
B. Decision making and lines of communication are simple
C. Suitable for stable environments
D. Efficient resource utilization
44) An organization with departmentalization that groups units around products,
customers, or geographic regions is called a:
A. Divisional organization
B. Functional organization

15. C. Centralized organization
D. Matrix organization
45) The organizational pyramid is commonly called the:
A. Framework
B. Bureaucracy
C. Hierarchy
D. Structure
46) A mental image of a possible and desirable future state of the organization is
a(n):
A. Operational plan
B. Goal
C. Strategic plan
D. Vision
47) Which of the following reflects a possible cause for an inappropriate vision?
A. The vision is too long-term.
B. The vision reflects only the leader’s needs.
C. The vision is too challenging.
D. The vision does not motivate all members of the organization.
48) Which of the following statements regarding vision is NOT accurate?
A. A single, unchanging vision is appropriate for all organizations.

16. B. A person can develop a vision for any task.
C. Many people do not develop a clear vision.
D. Many people focus on performance, day-to-day survival.
49) A leader is:
A. The top-level manager in a firm or business
B. A strategic-level manager
C. Someone with authority over others
D. Someone who influences others to attain goals
50) Behavior that gives purpose and meaning to organizations, while envisioning
and creating a positive future is:
A. Strategic leadership
B. Organizational leadership
C. Supervisory leadership
D. Task leadership
51) Behavior that provides guidance, support, and corrective feedback for the day-
to-day activities of work unit members is:
A. Strategic leadership
B. Supervisory leadership
C. Organizational leadership

17. D. Task leadership
52) _______ power is dominant when a leader utilizes his or her ability to control
rewards.
A. Referent
B. Coercive
C. Legitimate
D. Reward
53) Which type of power is dominant when a leader utilizes her ability to control
punishments?
A. Referent power
B. Coercive power
C. Legitimate power
D. Reward power
54) Legitimate power is described as power that exists through:
A. Control over rewards
B. The authority to tell others what to do
C. Control over punishments
D. Having expertise
55) The right or authority to tell employees what to do and what they are obligated
to comply with the orders is:

18. A. Referent power
B. Legitimate power
C. Coercive power
D. Reward power
56) The ability to influence others is:
A. Charisma
B. Motivation
C. Power
D. Cohesion
57) One study found that manufacturing labor costs ___ an hour in China, compare
d
to ____ dollars in the United States.
A. about $2; about 25
B. less than $1; about 25
C. less than $1; about 15
D. about $2; about 15
58) To be competitive in a global economy, Europeans must increase their level of:
A. Philanthropic contributions
B. Espionage activity

19. C. Population density
D. Productivity
59) NAFTA combined the economies of:
A. The U.S., the European Union, and North America
B. Latin America, Pacific Rim, and the European Union
C. Canada, Mexico, and South America
D. The U.S., Canada, and Mexico
E. South America, the U.S., and Latin America
60) Control based on the use of pricing mechanisms and economic information is:
A. Feedback control
B. Clan control
C. Feed forward control
D. Market control
61) Control based on the norms, values, shared goals, and trust among group
members is:
A. Clan control
B. Feedback control
C. Feed forward control
D. Concurrent control

20. 62) Control has been called one of the Siamese twins of management. The other
twin is:
A. Organizing
B. Planning
C. Directing
D. Leading
63) Which of the following is NOT one of the four major steps in the control process
?
A. Comparing performance with standards
B. Taking corrective action
C. Revising standards
D. Setting standards
64) A process that directs the activities of individuals toward achieving
organizational goals is:
A. Control
B. Policies
C. Control points
D. Directing
65) Using budgeting, statistical reports, and performance appraisals to regulate
behavior and results are all components of:

21. A. Market control
B. Clan control
C. Isolation
D. Bureaucratic control
66) The use of rules, regulations, and authority to guide performance is:
A. Clan control
B. Bureaucratic control
C. Concurrent control
D. Market control
67) Expected performance for a given goal is a target that establishes a desired
performance level, motivates performance, and serves as a benchmark against
which actual performance, and is assessed as a:
A. Management audit
B. Standard
C. Debt-equity ratio
D. Budget
68) The last step in the control process is:
A. Setting performance standards
B. Taking corrective action

22. C. Comparing performance
D. Measuring performance
69) Which country does the text describe as becoming the largest producer and
consumer of many of the world’s goods?
A. Japan
B. Canada
C. China
D. Mexico
70) The areas described in the text as most dominant in the global economy includ
e:
A. North America, Western Europe, and Asia
B. North America, Mexico, and Asia
C. Western Europe, Asia, and Africa
D. North America, Asia, and Africa
E. North America, South America, and Western Europe
71) When Jennifer concentrates on the significant deviations from established
standards, she is using:
A. Unreasonable control
B. The principle of deviation
C. The principle of exception

23. D. Inefficient control
72) Where are performance data commonly obtained?
A. Oral and written reports and personal observation
B. Supervisors, line managers, and coworkers
C. Competitors
D. Top, middle, and lower management
73) Under ___________, member countries have agreed to adopt a common Euro
pean
currency called the Euro.
A. the Maastricht Treaty
B. the General Agreement on Tariffs and Trade
C. North American Free Trade Agreement (NAFTA)
D. Asia-Pacific Economic Cooperation
74) A basic characteristic of decentralized organizations is delegating authority to
people at lower hierarchical levels to make decisions and take action.
A. False
B. True
75) A clear advantage of the product form of departmentalization is that task
responsibilities are clear.

24. A. True
B. False
76) Which of the following is not a symptom of an out-of-control company?
A. Bad information systems
B. Lack of periodic reviews
C. Excessive policies
D. Lax top management
77) If expansion to Australia does not materialize, Widget, Inc.’s backup pla
n is to
expand to Asia. This backup plan is an example of a:
A. Trial-and-error plan
B. Contingency plan
C. Strategic plan
D. Standing plan
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