Management Final Exam Practice

Changing established standards is not a recommended method for controlling conflict. This is because changing established standards can lead to confusion and uncertainty among team members, and may create additional conflicts. It is generally better to find other methods, such as making more resources available, maintaining superordinate goals, enhancing coordination, and managing interpersonal dynamics, to address and resolve conflicts.

C) integrating planning with control.

General Mills' goal of achieving sales of $50 million in five years demonstrates the integration of planning with control. By setting a specific sales target, General Mills is using planning to establish a goal for the future. At the same time, this goal serves as a control mechanism to evaluate the company's performance and measure its progress towards the desired outcome.

The correct answer is A) just-in-time inventory. This is because just-in-time inventory is a strategy where companies only order and receive inventory as it is needed, rather than keeping large stockpiles. In the case of Wal-Mart, 70% of merchandise is rung up at the cash register before the company pays for it, indicating that they are using a just-in-time inventory system to minimize inventory holding costs and maximize efficiency.

Dominoes was attempting to change the dimension of perceived quality. They openly admitted that their old pizza recipe tasted like cardboard, which implies that they wanted to improve the perception of their pizza's quality in the minds of their customers.

A) focus. Abercrombie uses a focus strategy by targeting a specific market segment, which is "tween" girls. They cater to the needs and preferences of this specific group, who are transitioning from being little girls to becoming teenagers. This allows Abercrombie to differentiate themselves from other clothing brands and create a unique and tailored offering for their target customers.

A differentiation strategy concentrates on increasing sales revenues, through the ability to charge premium prices for value-added products, while still maintaining an appeal for most customers.

The correct answer is B) market share and market growth rate. The BCG matrix is a strategic tool used to evaluate and classify a company's portfolio of strategic business units (SBUs). It categorizes SBUs into four quadrants: stars, cash cows, question marks, and dogs. Market share and market growth rate are the two factors used to determine the position of an SBU in the matrix. Market share represents the SBU's relative market dominance, while market growth rate indicates the attractiveness and potential of the market in which the SBU operates.

This is an example of intrapreneurship. Intrapreneurship refers to the act of behaving like an entrepreneur within a large organization. In this case, the employees at P&G identified a problem (the need for a more effective cleaning cloth) and developed a solution (the Swiffer) within the company. This demonstrates the entrepreneurial spirit and innovation within the organization, hence it is an example of intrapreneurship.

Lee admires her CEO and believes that there is no way the CEO knew about the accusations of offering bribes in other countries. This suggests that Lee is using selective perception. Selective perception refers to the tendency to selectively interpret or perceive information in a way that supports one's own beliefs or attitudes. In this case, Lee is selectively perceiving information in a way that aligns with her positive perception of the CEO, choosing to believe that the CEO was unaware of the accusations.

Organizations make the decision to have a centralized or decentralized international control system when they are addressing issues of operational control. This means that they are considering how to effectively manage and control their day-to-day operations in different locations. By centralizing control, the organization can have a unified approach and ensure consistency in operations across all locations. On the other hand, decentralization allows for more autonomy and decision-making at the local level, which can be beneficial in certain situations.

The best alternative is the most effective alternative. This means that out of all the options, the one that is most likely to achieve the desired outcome or result is considered the best alternative. Efficiency, controllability, profitability, and validity are all important factors, but effectiveness is the ultimate measure of success in this context.

A strategic challenge that faces a small business is finding a niche market. Small businesses often struggle with identifying and targeting a specific market segment that they can effectively serve and differentiate themselves from competitors. This is crucial for their success as it allows them to focus their resources and efforts on meeting the unique needs and preferences of their target customers. Emphasizing distinctive competencies, writing a business plan, and raising capital are also important challenges for small businesses, but finding a niche market is a fundamental strategic challenge that underlies these other challenges.

B) Workers leave employment at big corporations to found their own businesses.

Gore Associates has separate plants for making camping gear, uniforms, and dental floss, indicating that it uses product departmentalization. This means that the company organizes its activities and resources based on the different products it produces. Each product has its own separate plant, allowing for a more focused and efficient production process.

All of these activities (questionnaires, attitude surveys, archival data, conversations with managers) can be used as diagnostic tools in organization development. Questionnaires and attitude surveys can help gather information about employees' perceptions and attitudes towards the organization and its practices. Archival data can provide historical information about the organization's performance and trends. Conversations with managers can provide insights into the current state of the organization and potential areas for improvement. Therefore, all of these options can be used as possible diagnostic activities in organization development.

The correct answer is D) benefits. The interviewer is discussing various benefits that the company offers, such as retirement plan, life insurance, and concierge service.

Collective bargaining is a discussion process between union and management that focuses on agreeing to a written contract that will cover all relevant aspects of their relationship.

An individual's level of job satisfaction is determined by a combination of factors including compensation, work policies, relationships with co-workers and supervisors, and working conditions. These factors collectively contribute to an individual's overall experience and perception of their job, which ultimately affects their level of satisfaction.

Sales forecasting, economic forecasting, and environmental analysis are examples of the control of information resources. This is because these activities involve gathering and analyzing data and information to make informed decisions and predictions about sales, economic trends, and environmental factors. This information is a valuable resource that organizations use to plan and strategize their operations and allocate resources effectively.

The correct answer is B) all ingredients must be expressed in the same terms.

B) Bounded rationality

The most important idea for managers to remember from equity theory is that for rewards to motivate employees, employees must perceive them as being fair.

C) predispositions.

This is because Michelle has a pre-existing belief or predisposition in favor of health care reform. This predisposition is causing her to reject or ignore any statistics that contradict her belief.

The top managers of a company are most likely to need conceptual skills. Conceptual skills refer to the ability to think abstractly, understand complex situations, and see the big picture. Top managers are responsible for setting the overall direction and strategy of the company, making decisions that affect the entire organization. They need to be able to analyze and understand complex problems, identify trends and patterns, and develop innovative solutions. Interpersonal skills are important for building relationships and collaborating with others, but conceptual skills are crucial for top managers to effectively lead and make strategic decisions.

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The correct answer is E) competition. Departmentalization refers to the process of dividing an organization into different departments or units based on certain criteria. Functional, product, location, and customer are all common bases for departmentalization. However, competition is not typically used as a basis for departmentalization.

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The GE Business Screen matrix is a tool used to evaluate the attractiveness of different industries. It considers factors such as market growth, market size, competitive intensity, and capital requirements. However, it does not specifically consider product quality as a characteristic of industry attractiveness. Therefore, the correct answer is C) product quality.

The correct answer is B) Classical. The classical decision-making model is a prescriptive model because it provides a step-by-step approach for making rational decisions. It assumes that decision-makers have complete information, can evaluate all alternatives, and will choose the option with the highest utility. This model is based on the idea of maximizing outcomes and is often used in situations where there is a clear and well-defined problem.

The correct answer is E) All of these. The text suggests that being flexible, gaining experience, devoting significant time to management, and having enough financial resources are all important factors for entrepreneurial success.

E) Cognitive dissonance

Cognitive dissonance refers to the mental discomfort experienced when a person holds two conflicting beliefs, ideas, or values. In this scenario, Eleanor has suddenly come up with an idea for her science project, causing excitement and enthusiasm. This suggests that she might be experiencing cognitive dissonance as her new idea conflicts with her previous beliefs or expectations.

Based on the given information, David is exhibiting directive leader behaviors. This is because he sets standards, schedules work, and provides updates on standard achievement, which are all examples of providing clear instructions and guidance to his team.

The correct answer is D) coordination. Coordination refers to the process of ensuring that the activities of different parts of an organization are aligned and working together towards achieving the organization's goals. It involves linking together various activities, departments, and individuals in order to promote harmonious movement and avoid conflicts or duplication of efforts. Coordination is essential for effective organizational functioning and achieving desired outcomes.

The correct answer is C) Safety. Maslow's physiological needs category includes basic biological needs such as air, food, water, and sex. Safety, on the other hand, belongs to the next level of Maslow's hierarchy of needs, which is the safety needs category.

Teenagers experience interrole conflict when their personal need for independence is at odds with their parents' role requirements for a person living in the parent's home, supported by the parents.

As the product being produced becomes more complex, the type of operation control that would logically become more important is structural. This is because a complex product requires a well-structured and organized production process to ensure that all components and steps are properly coordinated and executed. Structural controls help in establishing clear roles, responsibilities, and processes within the production system, ensuring efficient and effective production of complex products.

The correct answer is E) methods. The question is asking about the techniques chefs use to transform ingredients into meals, and the TQM dimension that aligns with this is methods. Methods refer to the specific processes and techniques used to prepare and cook ingredients to create a meal.

This is an example of reciprocal interdependence. Reciprocal interdependence occurs when different units or departments depend on each other to achieve their goals. In this case, the Wal-Mart distribution and sales inventory departments are dependent on each other to ensure that products are being moved to the right locations based on customer demand and weather conditions.

Standards used in organizational control are most like policies. Policies are guidelines or principles that provide a framework for decision-making and action within an organization. Similarly, standards in organizational control serve as benchmarks or criteria against which performance is measured and evaluated. They provide a basis for setting expectations, monitoring progress, and taking corrective actions when necessary. Like policies, standards help ensure consistency, fairness, and effectiveness in organizational operations.

The correct answer is D) Behavioral. The behavioral decision-making model is based on the belief that human behavior is often imperfect. This model recognizes that individuals may not always make rational decisions and instead may be influenced by biases, emotions, and other factors that can lead to imperfect decision-making. This model takes into account the cognitive and psychological aspects of decision-making and acknowledges that individuals may not always act in a rational or logical manner.

E) All of these.

The correct answer is D) 14000. The International Organization for Standardization (ISO) requires firms to document the impact of operations on the environment through its ISO 14000 standards. These standards provide guidelines for environmental management systems and help organizations minimize their negative impact on the environment. ISO 9000 and ISO 2000 are not specifically related to environmental impact, and ISO 9000:2000 is not a valid ISO standard.

The correct answer is B) salaries include benefits while wages do not. Salaries are typically a fixed amount of money paid to an employee on a regular basis, regardless of the number of hours worked. Salaries often include benefits such as health insurance, retirement plans, and paid time off. Wages, on the other hand, are typically paid based on the number of hours worked and do not typically include benefits.

A manager possesses more coercive power when the elements he or she controls are more punitive and more important to subordinates. This means that if the manager has control over highly punitive actions and resources that are crucial to subordinates, they have a greater ability to use coercion to influence and control their behavior.

The correct answer is B) job-centered leader behavior; employee-centered leader behavior. This is because the Michigan studies focused on two dimensions of leadership behavior: job-centered behavior, which refers to the extent to which a leader focuses on tasks and productivity, and employee-centered behavior, which refers to the extent to which a leader focuses on building relationships and supporting the needs of their employees. These two dimensions represent opposite ends of the continuum used in the studies.

The correct answer is B) consensus. Consensus refers to the degree to which others in the same situation behave in the same way. It is a measure of how much agreement or conformity there is among individuals in a particular group or context. In other words, if there is a high level of consensus, it means that most people in that situation are behaving in a similar manner.

The correct answer is C) why control is necessary to reduce the accumulation of errors. The report highlights that NASA did not listen to small safety issues, which suggests a lack of control and oversight. This failure to address these issues ultimately led to the disaster. This example demonstrates the importance of control in identifying and addressing errors before they accumulate and result in catastrophic consequences.

Operations management is the set of managerial activities used by an organization to transform inputs into outputs and resources. This means that operations management involves taking the resources available to an organization, such as materials, labor, and equipment, and using them to create the desired outputs, whether they are products or services. This process requires careful planning, coordination, and control to ensure that resources are effectively utilized and that the desired outputs are achieved.

C) Comparison of performance to standards. This step involves comparing the actual performance of a process or task to the established standards or criteria. In this case, McDonald's has determined the specific size and amount of onion that should be used on a hamburger, and they are checking to ensure that the onions are being chopped to the correct size and the correct amount is being used. This is a comparison of the actual performance (chopping onions) to the established standard (size and amount of onion).

The correct answer is D) job sharing. Job sharing is a work arrangement where two or more employees share the responsibilities and hours of one full-time job. In this case, Cheri and Aaron are splitting a full-time paralegal job between them, with Cheri working in the mornings and Aaron working in the afternoons. This allows both individuals to work part-time while still fulfilling the requirements of the full-time position.

The correct answer is D) Path-goal. Path-goal theory suggests that leaders should clarify the path to achieve goals, provide support and rewards, and remove obstacles to motivate and guide their followers. This theory is based on the expectancy theory of motivation, which states that individuals are motivated to exert effort when they believe it will lead to desired outcomes. Both theories focus on the relationship between motivation and achieving goals, making Path-goal a direct extension of the expectancy theory.

The lowest performance results from high cohesiveness and low performance norms. When a group is highly cohesive, members feel a strong sense of belonging and loyalty to the group. However, if the group has low performance norms, there is a lack of emphasis on achieving high performance and excellence. This combination can lead to complacency and a lack of motivation to improve performance, resulting in the lowest performance.

International firms, which use a decentralized strategic control system keep more decision-making power in their headquarters, while firms that use a centralized strategic control system give more decision-making power to each local facility.

Economic. The given aspects of high unemployment, slow investment, and increasing government debt are all indicators of the economic environment. They reflect the state of the economy and its impact on investors' concerns about the stock market.

The correct answer is E) bad intuition.

The records department at Chelsea Community Hospital is an example of a functional group. A functional group is a group of individuals who work together to perform specific tasks and responsibilities that are essential to the functioning of an organization. In this case, the records department is responsible for organizing and maintaining the hospital's patient records, which is a critical function for the hospital's operations.

The University of Michigan develops a budget that shows its projected income from various sources, such as the state of Michigan, tuition and fees, alumni contributions, and research grants. This indicates that the budget focuses on the university's projected revenue. Therefore, the correct answer is E) revenue.

One way managers can improve the effectiveness of the control system is to integrate control with planning. This means that the control system should be closely aligned with the planning process, so that goals and objectives are clearly defined and can be monitored and evaluated effectively. By integrating control with planning, managers can ensure that the control system is proactive and helps to guide the organization towards its desired outcomes. This also allows for timely adjustments and corrective actions to be taken if deviations from standards occur, leading to improved overall performance.

Lynne is working in the functional area of Administration. This is because her job responsibilities are related to training, which is typically associated with the administrative function of an organization.

The correct answer is E) synergy. Synergy refers to the combined effect or cooperation of multiple elements, resulting in a greater outcome than the sum of their individual effects. In this case, Hexagon is acquiring Intergraph in order to utilize the strengths and capabilities of both companies' subsystems, with the goal of achieving a higher level of productivity and efficiency than they would have achieved separately. This aligns with the concept of synergy, as they are seeking to produce more by working together.

A manager who provides reinforcement on a periodic basis, regardless of performance, is using a fixed-interval schedule. In this schedule, the reinforcement is delivered after a fixed amount of time has passed, regardless of the behavior or performance of the individual. This type of schedule can lead to a decrease in motivation and performance, as individuals may only engage in the desired behavior right before the reinforcement is due.

Businesses that use H-form or M-form organizational design may have several controllers who are responsible for helping line managers with their control functions, for coordinating the organization's overall control system, and for gathering and assimilating relevant information.

If Disney wants to focus on the marketing strength of its theme parks, it will use return on investment. This ratio measures the profitability of an investment and can be used to assess the effectiveness of marketing efforts in generating revenue and attracting customers to the theme parks.

The group in this scenario was experiencing the disadvantage of domination by one member. Donald Rumsfeld, as the Secretary of Defense, had a strong-willed personality and was able to persuade the generals and admirals to follow his decisions. This domination by one member can limit the input and perspectives of other group members, potentially leading to a lack of diverse viewpoints and a less effective decision-making process.

A company that carefully evaluates job applicants is using screening control. Screening control refers to the process of carefully reviewing and assessing job applicants to determine their suitability for a particular position. This involves conducting interviews, checking references, and evaluating qualifications and experience to ensure that only the most qualified candidates are selected for the job.

Managing organizational culture is likely to become more difficult when the firm has recently undergone a merger, management has no clear idea of the desired culture, or the firm has recently suffered from poor performance. This is because a merger can lead to clashes between different cultures and values, making it challenging to establish a unified culture. Additionally, if management does not have a clear idea of the desired culture, it becomes difficult to align employees and implement necessary changes. Poor performance can also create a negative culture and make it harder to motivate employees and drive positive change.

The correct answer is E) the BCG matrix. The GE business screen is a strategic tool that helps businesses analyze their portfolio of products or business units. It is an expansion of the BCG matrix, which categorizes products or business units into four quadrants based on their market growth rate and market share. The GE business screen adds additional dimensions such as industry attractiveness and competitive strength to provide a more comprehensive analysis.

Fiedler uses the Least Preferred Coworker (LPC) score to determine leader style. The LPC score measures a leader's perception of their least preferred coworker on a scale of positive to negative. A high LPC score indicates a leader who is more relationship-oriented and values interpersonal relationships, while a low LPC score indicates a leader who is more task-oriented and values task accomplishment. Fiedler's theory suggests that the effectiveness of a leader depends on the match between their leadership style and the favorableness of the situation.

The correct answer is E) replacement chart. Human resource planning involves various steps such as job analysis, job evaluation, forecasting human resource supply, and forecasting human resource demand. A replacement chart, on the other hand, is a tool used for succession planning, which is a separate process from human resource planning. It is used to identify potential candidates for key positions within an organization in case of vacancies or promotions.

The correct answer is C) group goals. Alejandro joined The Seeing Eye puppy raisers because he believes in the group's goal of making a difference in a blind person's life.

A) body language.

Henri Fayol was attempting to systematize the practice of management by giving managers guidelines he had found useful when he developed his principles of management.

George should look at the job analysis to determine how long Jennifer has been in her position and when she is likely to get promoted. Job analysis involves gathering information about the duties, responsibilities, qualifications, and skills required for a particular job. This information can provide insights into the duration of Jennifer's tenure in her current position and potential career advancement opportunities.

According to Maslow, the need that people have for respect and recognition is the need for esteem. Esteem refers to the desire for a positive self-image and the desire to be valued and respected by others. This need includes both self-esteem, which involves feelings of self-worth and confidence, and the need for the esteem of others, which involves receiving recognition and respect from others.

The correct answer is D) perceived quality. The price of OpenSkies flights being half that of major airline business class fares suggests that customers may perceive the quality of OpenSkies' service to be lower than that of major airlines. This perception of lower quality may be based on factors such as the smaller size of the airline, the absence of certain amenities offered by major airlines, or a perceived difference in the overall level of service provided.

The correct answer is D) diagnostic activities. This is because the members of the various boards of the church are gathering information about the church in order to diagnose its current state and identify areas for improvement. They are using various methods such as surveys, meetings, interviews, and examining past meeting minutes to gather data and analyze the church's functioning. This aligns with the diagnostic activities of OD intervention, which involve collecting and analyzing data to understand the current situation and identify areas for intervention.

Mason should receive overtime for the time he worked in addition to his regular 40-hour shift according to the Fair Labor Standards Act.

Agreeableness is similar to the EQ dimension of empathy. Agreeableness refers to a person's tendency to be kind, sympathetic, and cooperative towards others. This aligns with empathy, which involves understanding and sharing the feelings of others. Both agreeableness and empathy involve being considerate and compassionate towards others, making the two concepts similar.

The given answer is E) competencies. This is because the traits described - talented, motivated, professional, and loyal - are all examples of skills, abilities, or qualities that Annika possesses. These competencies contribute to her overall effectiveness and success in her work or profession.

According to GE's Business Screen, Tesla has a competitive position of medium and the industry attractiveness is high. This combination suggests that Tesla is a "star" in the business screen framework. "Stars" are businesses that have a strong competitive position in an attractive industry, indicating high growth potential and future success.

Tim's raise failed the test for feasibility. The HR explained that the company is having a bad year and there is no money for raises, indicating that giving Tim a raise is not feasible at the moment.

Suzanne has limited coercive power because volunteers have a tendency to quit if they do not like something.

Anu is comparing the performance of her small landscaping business against the standards she established. This means that she is using these standards as a benchmark to evaluate her business's performance. Therefore, it would not be appropriate for her to eliminate the control standards, as they are necessary for her to assess and improve her business's performance.

The bureaucratic approach to organizational control is characterized by a tall organizational structure, limited employee participation, reliance on rules and a rigid hierarchy. Rewards focused on individual performance and reliance on group norms are not characteristic of the bureaucratic approach.