08 Jul mgt/521 final exam
According to Lewin’s force-field theory of change, which of the following factors results in a change in an organization?
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A stable task environment
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A stable general environment
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A decrease in resistance to change
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A decrease in forces for change
Which of the following is a feature of a high-performing organization?
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The organization produces a product that customers will want to buy but will not be able to afford.
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The managers choose inappropriate goals but use resources effectively to achieve them.
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The organization produces a low-quality but affordable product.
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The managers choose the right goals to pursue and use resources appropriately to meet them.
An organization’s return on investment is calculated by dividing:
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its profit before interest and taxes by its total interest charges.
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its operating profit by sales revenue.
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its net income before taxes by its total assets.
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its current assets by its current liabilities.
One way of pursuing a differentiation strategy is by:
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introducing products that are replicas of a competitor’s products.
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investing more on research and development.
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looking for new ways to reduce production costs.
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offering specialized products at low-costs.
First-line managers in an organization are responsible for:
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supervising nonmanagerial employees on a day-to-day basis.
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assessing the appropriateness of organizational goals.
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ensuring the smooth functioning of all departments.
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helping middle managers set organizational goals.
Unlike leaders, managers are those who:
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seek innovation rather than stability in their approach to fulfill organizational aspirations.
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develop relationships with employees based on trust and mutual respect.
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implement procedures and processes to ensure the smooth functioning of an organization.
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encourage and motivate employees to work together to achieve a common vision.
Identify a challenge faced by managers during the shift from small-scale handmade manufacturing to large-scale mechanized production.
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They were forced to provide employment to skilled workers from small-scale manufacturing.
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They lacked skills required to face the social problems that emerged when many people worked together in a factory.
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They lacked the necessary technical skills to handle large-scale production units.
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They had to face low productivity as the workers had to handle specific tasks that deprived them of varied responsibilities.
. __________ is the formal system of task and job reporting relationships that determines how employees utilize resources to achieve a company’s goals.
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Organizational culture
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Organizational design
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Organizational matrix
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Organizational structure
. __________ is the process by which managers choose and recognize appropriate goals and courses of action for an organization.
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Controlling
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Leading
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Planning
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Organizing
__________ 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.
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Planning
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Organizing
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Controlling
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Leading
Which of the following statements is true of an evolutionary change in an organization?
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It involves quickly finding new ways to be effective.
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It helps the organization adapt to gradual changes in the environment.
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It is effected through reengineering and innovation.
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It is likely to result in a radically new structure for the organization.
__________ signify what an organization and its members are trying to accomplish.
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Societal norms
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Instrumental values
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Shared norms
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Terminal values
Which of the following models of leadership focused on identifying the characteristics of a person capable of being an effective leader?
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House’s path-goal model
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The trait model
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The behavioral model
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Fiedler’s contingency model
A __________ specifies the national markets and industries an organization plans to compete in and why it intends to do so.
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department-level strategy
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corporate-level strategy
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business-level strategy
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functional-level strategy
A low-cost strategy requires organizations to:
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direct its efforts to cater to a particular kind of customer.
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focus its attention on customers from a particular geographic area.
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develop products that can be manufactured inexpensively compared to existing rival products.
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increase the spending on research and development to differentiate its products from those of its competitors.
__________ is the process by which managers regulate and monitor how efficiently and effectively an organization as a whole works to achieve organizational goals.
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Leading
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Planning
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Controlling
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Organizing
Identify a true statement about an effective control system?
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It provides managers with accurate information about organizational performance.
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It is limited in its capacity to provide managers with information in a timely manner.
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It is an informal system that helps managers make decisions.
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It allows managers to take only programmed decisions.
Which of the following statements is true of transformational leaders?
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They prefer to maintain the status quo in their organizations.
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They engage with subordinates and motivate them to work toward organizational goals.
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They use reward power and coercive power to command respect from their subordinates.
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They hesitate to share information with their coworkers.
A __________ is an organizational structure constituted of all the departments that an organization requires to produce its goods or services.
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product team structure
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cross-functional structure
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functional structure
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divisional structure
A differentiation strategy is ideal for organizations that:
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try to ensure flexibility in organizational culture.
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intend to exercise strict control over various departments.
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aim to produce new, innovative products.
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want to ensure flawless coordination among multiple divisions.
A differentiation strategy can be employed by organizations to:
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reduce costs in all their functions.
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ensure strict control over various departments by a system of checks and balances.
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achieve flexibility in organizational culture.
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enhance the value consumers perceive in their products.
Which of the following statements is true of a corporate-level strategy?
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It outlines a division’s long-term goals.
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It is used to identify an organization’s strengths and weaknesses.
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It provides the framework within which functional managers operate.
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It is the primary responsibility of top managers.
_____ is a measure of how productively resources are utilized to meet a goal
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Management
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Product utilization
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Centralization
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Efficiency
24
How does an increase in job specialization lead to higher organizational performance?
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Each worker specializes in a different set of tasks over a period of time.
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Workers join different groups and each group performs the same task at increasing costs over a period of time.
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Each worker becomes responsible for all the different tasks involved in producing a product thereby increasing productivity.
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Workers performing specific tasks become much more skilled and produce a product faster while working in groups.
25
Which of the following is an advantage of group decision making?
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It is easy to execute because getting two or more managers to agree on a solution is relatively simple.
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It is unaffected by any kind of cognitive bias as it benefits from multiple perspectives.
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It allows managers to take decisions within relatively short periods of time compared to individual decision makers.
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It allows managers to process more information and rectify one another’s errors.
According to Henry Fayol, the planning process in an organization is effective when:
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it sets disparate, specific goals for each functional level.
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it proposes multiple plans to achieve an organizational goal.
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it produces plans that are static, thus avoiding confusion.
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it allows plans to be designed and modified at all levels.
Which of the following statements is true of middle managers?
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They are accountable for the overall performance of an organization.
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They are responsible for assessing the appropriateness of organizational goals to increase effectiveness.
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They set organizational goals with input from top management and are answerable to the shareholders of the company.
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They occupy one of the lowest positions in the managerial hierarchy.
Which of the following scenarios illustrates the attraction-selection-attrition framework?
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Serena wins the annual award for best employee of the year. She was selected from all likely candidates for her dedication to her work.
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All the newly hired employees of Style Prints Inc. are encouraged to participate in team outings.
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Miriam likes experimenting with new possibilities and taking risks. She hires like-minded people for her start-up.
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The management of ThinkFree Inc. requires all prospective employees to attend a basic induction program.
Which of the following is an advantage of implementing a functional structure in an organization?
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It allows functional managers to develop generic skills that help manage all aspects of production.
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It enables employees who perform similar kinds of jobs to observe and learn from each other.
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It helps managers specialize and develop expertise in only one product area.
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It lets organizations choose the set of products that serves the needs of regional customers.
While generating alternatives before making a decision, a manager should:
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determine the criteria that should influence the prioritization of alternatives.
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view the issue under consideration from multiple perspectives.
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assign subordinates to take follow-up decisions.
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derive guidelines that will aid in future decision making.
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