1. Managers implement procedures and processes to ensure smooth organizational functioning, unlike leaders who motivate employees towards a common vision. 2. A corporate-level strategy provides the framework for functional managers and is the primary responsibility of top managers. 3. Organizing is the process where managers establish employee relationships to efficiently achieve company goals.

1. MGT 521 Final Exam Guide (New, 2017)
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1. Unlike leaders, managers are those who:
encourage and motivate employees to work together to achieve a common vision.
implement procedures and processes to ensure the smooth functioning of an
organization.
seek innovation rather than stability in their approach to fulfill organizational
aspiration
develop relationships with employees based on trust and mutual respect.
2. Adopting a __________ involves distributing monetary resources among divisions
to increase financial returns or to spread risks among different businesses.
differentiation strategy
global strategy
portfolio strategy
multidomestic strategy
3. Which of the following statements is true of a corporate-level strategy?
It provides the framework within which functional managers operate.
It is the primary responsibility of top managers.
It is used to identify an organization’s strengths and weaknesses.
It outlines a division’s long-term goals.

2. 4. __________ is the process by which managers establish the structure of working
relationships among employees to allow them to achieve a company’s goals
efficiently and effectively.
Leading
Organizing
Planning
Controlling
5. Identify a true statement about an effective control system?
It provides managers with accurate information about organizational performance.
It is limited in its capacity to provide managers with information in a timely manner.
It allows managers to take only programmed decisions.
It is an informal system that helps managers make decisions.
6. A __________ specifies the national markets and industries an organization plans
to compete in and why it intends to do so.
corporate-level strategy
functional-level strategy
business-level strategy
department-level strategy
7. Which of the following models of leadership focused on identifying the
characteristics of a person capable of being an effective leader?
House’s path-goal model
The trait model
The behavioral model
Fiedler’s contingency model

3. 8. Which of the following principles identified by Henri Fayol focuses on the chain of
command with an organization?
A manager should not encourage or allow his or her employees to be innovative and
creative.
An employee should receive orders from only one supervisor.
A manager is not entitled to ask for his or her employees’ obedience.
Authority should be concentrated at the top of the chain of command in an
organization.
9. A low-cost strategy requires organizations to:
focus its attention on customers from a particular geographic area.
direct its efforts to cater to a particular kind of customer.
increase the spending on research and development to differentiate its products from
those of its competitors.
develop products that can be manufactured inexpensively compared to existing rival
products.
10. The __________ of an organization is responsible for building an efficient top
management team.
first-line manager
vice-president
middle manager
chief executive officer
11. Which of the following is a feature of a high-performing organization?
The managers choose inappropriate goals but use resources effectively to achieve
them.

4. The managers choose the right goals to pursue and use resources appropriately to meet
them.
The organization produces a product that customers will want to buy but will not be
able to afford.
The organization produces a low-quality but affordable product.
12. According to Lewin’s force-field theory of change, which of the following factors
results in a change in an organization?
A stable general environment
A stable task environment
A decrease in forces for change
A decrease in resistance to change
13. Which of the following statements is true of transformational leaders?
They prefer to maintain the status quo in their organizations.
They use reward power and coercive power to command respect from their
subordinates.
They engage with subordinates and motivate them to work toward organizational
goals.
They hesitate to share information with their coworkers.
14. First-line managers in an organization are responsible for:
helping middle managers set organizational goals.
assessing the appropriateness of organizational goals.
supervising nonmanagerial employees on a day-to-day basis.
ensuring the smooth functioning of all departments.

5. 15. _____ is a measure of how productively resources are utilized to meet a goal
Efficiency
Product utilization
Centralization
Management
16. According to Henry Fayol, the planning process in an organization is effective
when:
it sets disparate, specific goals for each functional level.
it proposes multiple plans to achieve an organizational goal.
it allows plans to be designed and modified at all levels.
it produces plans that are static, thus avoiding confusion.
17. Which of the following statements is true of an evolutionary change in an
organization?
It helps the organization adapt to gradual changes in the environment.
It involves quickly finding new ways to be effective.
It is effected through reengineering and innovation.
It is likely to result in a radically new structure for the organization.
18. Which of the following is an advantage of implementing a functional structure in
an organization?
It helps managers specialize and develop expertise in only one product area.
It enables employees who perform similar kinds of jobs to observe and learn from
each other.
It lets organizations choose the set of products that serves the needs of regional
customers.

6. It allows functional managers to develop generic skills that help manage all aspects of
production.
19. Which of the following did Frederick W. Taylor believe to be an outcome of
recording the method of performing a particular task in an organization?
Tasks became complicated and time-consuming.
Job procedures became standardized and more routine.
Workers did not have to be trained for specific roles anymore.
Workers’ informal knowledge about their tasks became irrelevant.
20. Which of the following is an advantage of group decision making?
It allows managers to process more information and rectify one another’s errors.
It is unaffected by any kind of cognitive bias as it benefits from multiple perspectives.
It is easy to execute because getting two or more managers to agree on a solution is
relatively simple.
It allows managers to take decisions within relatively short periods of time compared
to individual decision makers.
21. __________ is the formal system of task and job reporting relationships that
determines how employees utilize resources to achieve a company’s goals.
Organizational culture
Organizational matrix
Organizational design
Organizational structure
22. One way of pursuing a differentiation strategy is by:
introducing products that are replicas of a competitor’s products.
investing more on research and development.

7. offering specialized products at low-costs.
looking for new ways to reduce production costs.
23. An organization’s return on investment is calculated by dividing:
its profit before interest and taxes by its total interest charges.
its operating profit by sales revenue.
its net income before taxes by its total assets.
its current assets by its current liabilities.
24. How does an increase in job specialization lead to higher organizational
performance?
Each worker becomes responsible for all the different tasks involved in producing a
product thereby increasing productivity.
Each worker specializes in a different set of tasks over a period of time.
Workers performing specific tasks become much more skilled and produce a product
faster while working in groups.
Workers join different groups and each group performs the same task at increasing
costs over a period of time.
25. A differentiation strategy can be employed by organizations to:
ensure strict control over various departments by a system of checks and balances.
achieve flexibility in organizational culture.
enhance the value consumers perceive in their products.
reduce costs in all their functions.
26. Which of the following scenarios illustrates the attraction-selection-attrition
framework?
Miriam likes experimenting with new possibilities and taking risks. She hires like-
minded people for her start-up.

8. The management of ThinkFree Inc. requires all prospective employees to attend a
basic induction program.
Serena wins the annual award for best employee of the year. She was selected from all
likely candidates for her dedication to her work.
All the newly hired employees of Style Prints Inc. are encouraged to participate in
team outings.
27. A differentiation strategy is ideal for organizations that:
try to ensure flexibility in organizational culture.
aim to produce new, innovative products.
intend to exercise strict control over various departments.
want to ensure flawless coordination among multiple divisions.
28. __________ signify what an organization and its members are trying to
accomplish.
Terminal values
Shared norms
Societal norms
Instrumental values
29. A person’s upbringing is an important source of __________.
organizational ethics
professional ethics
individual ethics
societal ethics
30. __________ is the process by which managers regulate and monitor how
efficiently and effectively an organization as a whole works to achieve organizational
goals.
Leading
Organizing
Controlling

9. Planning