Revel krossaprófin Flashcards
Georgia had started a small catering company three years ago. After gaining popularity and growing her clientele, Georgia was able to expand the company and hire 12 people. However, this expansion meant that the conceptual and technical tasks that Georgia used to do earlier, such as deciding the target market and cooking the food, were now delegated to the team, with Georgia focusing on interpersonal and management tasks such as supervision. Which of the following does this scenario best illustrate?
A.
Management is independent of the context in which it occurs.
B.
Management is a distinct role.
C.
Management is independent of the external environment.
D.
Management is a universal human activity.
B. Management is a distinct role.
Kevin, a manager in an international company, recently moved to a new apartment and decided to paint the walls of the living room. He got the paint and the brushes, set his goal to paint one wall a day, monitored his progress and analysed the results after finishing all the walls. Meanwhile, in his office, he handled a project in a similar way. In both cases, he took responsibility for the purpose of the work. Which of the following does this scenario most likely illustrate?
A.
Management is a distinct role.
B.
Management is independent of the context in which it occurs.
C.
Management is independent of the external environment.
D.
Management is a universal human activity.
D. Management is a universal human activity.
When Denver, a retired army officer, observed children begging for food in his neighbourhood, he decided to open a food stall that would provide these kids and other underprivileged people with free food and water. He gradually expanded this enterprise and was able to set up over 55 stalls in different areas of the city. Throughout this, Denver was less concerned with making money and more concerned with serving the poor. Which of the following concepts is best illustrated in this scenario?
A.
Sustainability.
B.
Social entrepreneurship.
C.
Networking.
D.
Corporate governance.
B. Social entrepreneurship.
Which of the following is created when resources are transformed into goods or services that are worth more than the sum of the original cost of the resources and the cost of the transformation?
A competency.
B.
Context.
C.
Value.
D.
A theory.
c. Value.
Which of the following terms refers to the skills and abilities that a company uses to deploy resources effectively, such as work processes and systems?
A.
Values.
B.
Contexts.
C.
Competencies.
D.
Tasks.
C. Competencies.
Mirage, an apparel company, has undertaken several eco-friendly practices to protect the environment. It has stopped using silk, polyester and leather to manufacture its products and has set an objective to manufacture all its products using organic cotton by the year 2020. The management has also started waste segregation in the cafeteria, with plastic waste being recycled into clothes that are then donated to the poor.
A.
Scientific management.
B.
Bureaucracy.
C.
Corporate governance.
D.
Sustainability.
D. Sustainability.
Which of the following is a way in which managers can add value to resources?
A.
Using one method of management consistently and uniformly across all contexts.
B.
Focusing on the macro-environment rather than on the micro-environment of the organisation.
C.
Transforming resources into goods or services by completing specific tasks and processes within a context.
D.
Using clear thinking rather than critical thinking to make decisions.
C. Transforming resources into goods or services by completing specific tasks and processes within a context.
Oliver, a junior executive at an investment firm, has to prepare a presentation for a potential client by Thursday. He also has to write a report analysing market trends and share it with his manager by Friday.
A.
Processes.
B.
Competencies.
C.
Tasks.
D.
Contexts.
C. Tasks.
Patricia joins a start-up and is surprised to see an easy-going company culture. Unlike her pervious company, which had a hierarchical structure and curbed initiative and creativity, her new company has a flat structure that provides an environment that fosters creativity and innovation and encourages participation. In this scenario, which of the following terms can be used to refer to the setting in which Patricia works?
A.
Context.
B.
Competency.
C.
Process.
D.
Content.
A. Context.
Enrique has invested a large part of his savings in an advertising start-up. As a result, he is concerned with the business decisions taken by the managers of the company as they will directly impact the value of the company’s stock and the dividends that he will receive at the end of the financial year. Which of the following statements is true of Enrique in this scenario?
A.
He is a contingent worker.
B.
He is an expatriate.
C.
He is a corporate citizen.
D.
He is a stakeholder
D. He is a stakeholder
Who among the following individuals is performing the management task of leading?
A.
Lisa, the HR manager of a start-up, who develops policies for human resource management.
B.
Denver, the content manager of a company, who is allocating resources to different projects.
C.
Fiona, the marketing manager of a start-up, who is monitoring the progress of her project.
D.
George, the sales manager of a company, who motivates his team to meet the weekly sales target.
D.
George, the sales manager of a company, who motivates his team to meet the weekly sales target.
Samantha, the content manager of a company, is allocating her team members to current projects and evaluating the need to hire more people based on the requirements of the projects that are yet to come in. She is considering whether the people in her team can handle additional projects to avoid increasing the fixed costs of the company. Which of the following management tasks is Samantha performing in the given scenario?
A.
Planning.
B.
Controlling.
C.
Leading.
D.
Benchmarking
A. Planning.
Which of the following is true of Henry Mintzberg’s observations in his study of managerial work?
A.
Managerial work in large organisations has much more informal communication than in small, growth-oriented businesses.
B.
Managerial work in small, growth-oriented businesses has more brevity and fragmentation than in large organisations.
C.
Every manager’s job includes 10 management roles, with their relative importance depending on the type of enterprise, the manager’s position in the organisational hierarchy and the manager’s personal preferences.
Every manager’s job includes 10 management roles, with their relative importance depending on the type of enterprise, the manager’s position in the organisational hierarchy and the manager’s personal preferences.
In the context of Mintzberg’s 10 management roles, which of the following scenarios depicts a manager who performed a decisional role?
A.
Cathy, the operations manager of a company that manufactures frozen foods, took corrective action when the company received negative publicity after worms were found in some of its products.
B.
Diana, the administrative manager of a construction company, collected and reviewed the tender applications for a housing project.
C.
Mira, the human resource manager of a company, forwarded information regarding a new piece of employment legislation to all employees of the company.
D.
Jennifer, the operations manager of a company, addressed the employees of the company in a monthly meeting and presented the ‘Employee of the Quarter’ award to an employee.
A. Cathy, the operations manager of a company that manufactures frozen foods, took corrective action when the company received negative publicity after worms were found in some of its products.
Which of the following terms refers to behaviours that aim to develop, maintain and use informal relationships with internal and external contacts that may help work-related activities?
A.
Networking.
B.
Benchmarking.
C.
Corporate governance.
D.
Social entrepreneurship.
A. Networking
Within a week of joining a new company, Fatima realises that the company has an authoritative culture that stifles creativity and discourages employee participation. As a result, even her manager is autocratic and gives little or no autonomy to his team members. Which of the following dimensions of context does this scenario exemplify?
A.
The macro-environment.
B.
The micro-environment.
C.
The external context.
D.
The internal context.
D.
The internal context.
Who among the following is working with an element of the external context?
A.
Rebecca, who is training her employees in interpersonal skills.
B.
Anand, who is developing a comprehensive work-from-home policy for his employees.
C.
Rohan, who is preparing an organisational chart for his two-year-old start-up.
D.
Annie, who is lobbying state legislators to reduce the property tax levied on private businesses.
D.
Annie, who is lobbying state legislators to reduce the property tax levied on private businesses.
The specifics of management tasks differ in each context. Which of the following is most likely to be a planning task in a competitive environment?
A.
Lobbying government officials to prevent an environmental law from passing.
B.
Ensuring that the human resource management system has an updated record of employee performance and skills.
C.
Sending employees to work in foreign subsidiaries to create awareness about ethnic differences.
D.
Introducing a line of low-cost products to discourage a potential competitor from entering the market.
D.
Introducing a line of low-cost products to discourage a potential competitor from entering the market.
Which of the following is a process that involves identifying the assumptions behind ideas, relating them to their context and observing the context for changes, imagining alternative ways of doing things and recognising the limitations of knowledge and practice?
A.
Networking.
B.
Corporate governance.
C.
Clear thinking.
D.
Social entrepreneurship.
C.
Clear thinking.
Tina, the marketing manager of a food manufacturing company, and Peter, the operations manager of the company, are discussing sustainable ways of product packaging. When Tina proposes using paper boxes rather than plastic boxes for packaging perishables, Peter considers the impact of adopting this strategy on the sales and the fixed costs of the company. He also considers the impact of several contextual factors, such as the eco-friendly practices that have been adopted by rival firms and the inclination of customers to avoid plastics in favour of paper, on the decision to adopt this strategy. Which of the following concepts does this scenario best exemplify?
A.
The ABC model.
B.
PESTEL analysis.
C.
Corporate governance.
D.
The rational goal model.
A.
The ABC model.
Identify a characteristic of clear thinkers.
A.
They are curious and explore realistic alternative ways of achieving goals.
B.
They believe that the success of a method is independent of the context in which it is used.
C.
They are risk-takers who base their decisions on intuitive thinking rather than critical thinking.
D.
They focus on facts and ignore the assumptions behind a proposal or an idea.
A.
They are curious and explore realistic alternative ways of achieving goals.
Which of the following terms represents a complex phenomenon by recognising major elements and the relationships among those elements?
A competency.
B.
A system.
C.
A theory.
D.
A process.
A theory.
While deciding how to allocate resources to different projects, Simone, the manager of the content team in a publishing company, had to persuade the manager of the graphics team to lend her two resources to ensure that her projects were completed on time. In this scenario, which of the following is true of Simone?
A.
She engaged in the process of influencing and motivating while completing the task of organising.
B.
She engaged in the process of scanning the general environment while completing the task of controlling.
C.
She engaged in the process of analysing the micro-environment to complete the task of planning.
D.
She engaged in the process of delegation to complete the task of monitoring.
A.
She engaged in the process of influencing and motivating while completing the task of organising.
In the context of the competing values framework, who among the following is most likely to use the open systems model?
A.
Caleb, a first-line manager in a car assembly plant, who wants to maximise his team members’ productivity.
B.
Jennifer, the head of the graphics department in a publishing company, who wants to expand her department and change some of the work processes to increase efficiency.
C.
Heena, a manager in a technology firm, who wants to enhance the skills of her team members and develop their potential.
D.
Brandon, an HR manager of an organisation, who wants to establish rules and regulations to ensure uniform procedures and bring stability to the organisation
B.
Jennifer, the head of the graphics department in a publishing company, who wants to expand her department and change some of the work processes to increase efficiency.
Amanda, a manager, is using the rational goal model to maximise the output of her team. In the context of the competing values framework, which of the following is she likely to focus on to achieve her goal?
A.
Commitment, morale, participation and openness.
B.
Innovation, adaptation, growth and resource acquisition.
C.
Documentation, information management, stability and control.
D.
Direction, clarity of objectives, productivity and accomplishment.
D. Direction, clarity of objectives, productivity and accomplishment.
In the context of the rational goal model, identify a principle of scientific management.
A.
Selecting the best people to do a job by evaluating their physical and mental qualities.
B.
Ensuring decentralisation of planning and control to increase the autonomy of workers.
C.
Providing intrinsic rewards rather than extrinsic rewards to motivate workers.
D.
Shifting the responsibility for planning and organising from managers to workers.
A.
Selecting the best people to do a job by evaluating their physical and mental qualities.
A transnational organisation that provides financial services to global firms wants to balance the need to know what customers want with the need to create a system to meet those requirements efficiently and consistently. Which of the following strategies is most likely to help the organisation achieve this balance?
A.
Shifting the responsibility for organising tasks and resources from managers to employees.
B.
Cross-training employees to eliminate the division of labour and ensuring that all employees are equipped to handle all tasks.
C.
Establishing systematic work procedures with precise specifications that are followed in all branches of the organisation,
D.
Decentralising the tasks of planning and controlling to provide autonomy to all employees.
C . Establishing systematic work procedures with precise specifications that are followed in all branches of the organisation,
Which of the following companies uses the rational goal model?
A.
A company that fosters a high-involvement employee relationship, employing a large proportion of permanent employees
B.
A company in which the process engineering department develops detailed and clear specifications for processes
C.
A company that uses systems and procedures that enable the decentralised control of individual operations
D.
A company in which each employee performs a wide variety of tasks and switches between different job roles
B.
A company in which the process engineering department develops detailed and clear specifications for processes
Which of the following organisations most likely uses the internal process model?
A.
An information technology company with a flat organisational structure that encourages employee engagement in decision-making.
B.
An e-learning organisation where performance appraisals are based on objective measures of performance that limit favouritism.
C.
A global firm that has different codes of ethics for top managers, first-line and middle managers and employees.
D.
A multinational firm where regional managers have complete control of finance, recruitment and planning.
B.
An e-learning organisation where performance appraisals are based on objective measures of performance that limit favouritism.
Identify a way in which the internal process model and the rational goal model complement each other.
A.
Both consider the impact of human factors on productivity.
B.
Both emphasise teamwork and employee participation in decision-making.
C.
Both focus on the organisation rather than on the individual worker.
D.
Both focus on an organisation’s ability to innovate and adapt to change.
C.
Both focus on the organisation rather than on the individual worker.
Which of the following was a result of the Hawthorne studies?
A.
They revealed that employees work better if managers are interested in their well-being and supervise them with compassion.
B.
They revealed that organisations with a bureaucratic structure are more likely to succeed than organisations with a flat structure.
C.
They revealed that the social factors at work are insignificant compared with the technical aspects of work.
D.
They revealed that competition is the most important factor in the effective management of human resources.
A.
They revealed that employees work better if managers are interested in their well-being and supervise them with compassion.
According to Mayo (1949), which of the following was found to be true of work output based on relay-assembly test room experiments?
A.
An increase in output was related to changes in the social situation.
B.
An increase in output was related to physical changes in the environment.
C.
As light in the work setting rose, output rose significantly.
D.
The length of breaks did not have any effect on output.
A.
An increase in output was related to changes in the social situation.
Who among the following managers is most likely to be using the human relations approach to management?
A.
Fiona, who focuses on increasing productivity and thereby focuses on the technical aspects of work.
B.
Rebecca, who makes decisions on her own and expects her team members to follow them without questions.
C.
Andrew, who encourages employee participation, collaboration and teamwork among his team members.
D.
Timothy, who establishes rules and regulations to control his team members and ensure uniform procedures and operations.
C.
Andrew, who encourages employee participation, collaboration and teamwork among his team members.
Anna, a contingency theorist, is having a discussion with Dave, a senior manager in an organisation, about ways to improve the performance of his organisation. Which of the following is Anna most likely to suggest?
A.
The performance of an organisation is best when all functions within the organisation work in a stable, predictable way; managers in Dave’s organisation can achieve this stability by using the open systems model.
B.
The performance of an organisation is best when all functions within the organisation are continuously evolving; managers in Dave’s organisation can promote innovation and evolution by using the internal process model.
C.
The performance of an organisation depends on having a structure that is appropriate to its environment; managers in Dave’s organisation should be aware of all four models in the competing values framework to enhance performance.
D.
The performance of an organisation is dependent on the entire organisation consistently following one of the four models in the competing values framework; managers in Dave’s organisation should restrict themselves to using one model in all contexts.
C.
The performance of an organisation depends on having a structure that is appropriate to its environment; managers in Dave’s organisation should be aware of all four models in the competing values framework to enhance performance.
Samantha is a manager who is using the open systems model. Which of the following is she most likely to focus on?
A.
Clarifying goals, providing direction and maximising productivity.
B.
Establishing rules, maintaining authority and resolving conflicts.
C.
Innovation, creative problem-solving and acquiring and retaining support from customers.
D.
Establishing systematic work processes, encouraging collaboration and promoting cohesion.
C. Innovation, creative problem-solving and acquiring and retaining support from customers.
Which of the following should managers in an open system environment do?
A.
They should emphasise stability and continuity by repeatedly stressing the importance of adhering to rules and regulations.
B.
They should build a power base that enables them to influence others to support the changes brought about by them.
C.
They should be aware that all the subsystems within an organisation are independent of each other and a change in one will not impact the others.
D.
They should focus extensively on the macro-environment rather than the micro-environment of their organisation to have a competitive advantage over rival firms.
B.
They should build a power base that enables them to influence others to support the changes brought about by them.
GraphiX, an advertising firm, has a flat organisational structure with decentralised authority and a culture that encourages creativity. Which of the following environmental forces does this scenario represent?
A.
GraphiX’s micro-environment.
B.
GraphiX’s macro-environment.
C.
GraphiX’s external environment.
D.
GraphiX’s internal environment.
D. GraphiX’s internal environment.
The Haven is a company that provides landscaping services to businesses and homes. Which of the following is likely to be part of the company’s micro-environment?
A.
A training programme by the employee development team of The Haven to train all employees of the company in how to use a new design tool.
B.
A new company that provides customised garden architecture and installation services to commercial spaces.
C.
A real estate company that holds shares of The Haven and provides capital for the company’s strategic plans.
D.
A new piece of legislation that requires all private companies with foreign investors to pay an additional tax on their revenue.
B.
A new company that provides customised garden architecture and installation services to commercial spaces.
Which of the following is likely to be part of a company’s general environment?
A.
The business processes of the company.
B.
Laws governing wages and overtime pay.
C.
Rival firms providing similar products to those provided by the company.
D.
The structure and culture of the company.
B. Laws governing wages and overtime pay.
Which of the following is a reason interest in organisational culture has grown?
A.
Because culture is part of an organisation’s competitive environment
B.
Because academics believe that culture influences behaviour
C.
Because culture is independent of beliefs and values
D.
Because cultures develop before common values can be formed
B. Because academics believe that culture influences behaviour
On her first day at Anagram Inc., Fiona observes that the office is designed in such a manner that employees sit in cubicles and managers occupy closed cabins. She further notices that all employees are dressed formally and address their managers as ‘sir’ or ‘ma’am’. Which of the following is a level of culture that Fiona observes in this scenario?
A.
Artefacts.
B.
Intellectual assets.
C.
Values.
D.
Core business principles.
A. Artefacts
Aman has joined the creative team of a marketing company as a graphic designer. After working with the team for a few weeks, he realises that a discussion with copywriters is essential to developing creative advertisements that meet client requirements. He aims to follow this practice for future projects. Which of the following levels of culture does this scenario best illustrate?
A.
Technology and courses.
B.
Artefacts.
C.
Beliefs and values.
D.
Intellectual assets
C.
Beliefs and values.
XPro, a multinational information technology organisation, is led and driven by the ideals of its CEO, who is the dominant central figure holding authority. All organisational decisions are taken by the CEO rather than being based on the consensus of employees. By contrast, Mirage, a painters’ organisation, is centred on the needs of its members rather than specific organisational objectives. It focuses on serving its employees better. In the context of Handy’s cultural types, which of the following is most likely true of XPro and Mirage?
A.
XPro has a person culture, whereas Mirage has a task culture.
B.
XPro has a role culture, whereas Mirage has a task culture.
C.
XPro has a power culture, whereas Mirage has a person culture.
D.
XPro has a role culture, whereas Mirage has a power culture.
C.
XPro has a power culture, whereas Mirage has a person culture.
While taking the annual employee engagement survey, Amanda, a sales executive in a retail company, checks the ‘Disagree’ box corresponding to the following statements: ‘I have clarity on the values and beliefs of the organisation’ and ‘I have clarity on the objectives of the organisation’. Her responses are based on the belief that the values and the objectives of the company constantly keep changing, which makes it difficult for her to understand the behaviour expected of her. In the context of Martin’s perspectives on culture, which of the following is most likely to represent Amanda’s perspective on her organisation’s culture?
A.
Integration.
B.
Differentiation.
C.
Fragmentation.
D.
Unification.
C.
Fragmentation.
Which of the following is a way in which the culture of an organisation affects its performance?
A.
By creating the macro-environment that contributes to and affects the success of the organisation.
B.
By creating the external context within which the managers and employees in the organisation need to work.
C.
By identifying artefacts such as beliefs and values that are not visible but help to create a positive first impression on the new employees in the organisation.
D.
By communicating the values of the founders of the organisation to its employees and maintaining them through shared experiences.
D.
By communicating the values of the founders of the organisation to its employees and maintaining them through shared experiences.
Which of the following is likely to be considered international management?
A.
Being a member of a team of seven individuals from different states of a country.
B.
Managing a team of contingent workers for a national company.
C.
Working as an expatriate manager in a foreign subsidiary of a company.
D.
Managing a local company that adopts international trends in product development.
C.
Working as an expatriate manager in a foreign subsidiary of a company.
SNP Motors, an automobile manufacturing company based in Germany, has decided to set up a manufacturing plant in China as part of its expansion strategy. The company plans to build the facility by the end of 2020 and start operations soon after. The company will retain all profits of the new facility and have complete control over the technology and expertise used in the facility. Which of the following forms of conducting international business does this scenario exemplify?
A.
Business process outsourcing.
B.
Franchising.
C.
Licensing.
D.
Foreign direct investment.
D.
Foreign direct investment.
Identify one difference between franchising and licensing.
A.
In a franchise agreement, the franchisor retains control over the profits and management of the franchisee, whereas in a licence agreement, the licensor retains control over the expertise and technology used by the licensee.
B.
Licensing requires the licensee to make a royalty payment to the licensor, whereas franchising does not require the franchisee to pay any fee to the franchisor.
C.
In a franchise agreement, the franchisor imposes strict conditions on quality, customer service and work procedures, whereas in a license agreement, the licensor does not.
D.
Licensing is an expansion strategy used by service businesses, whereas franchising is an expansion strategy used by businesses that produce and sell goods.
C.
In a franchise agreement, the franchisor imposes strict conditions on quality, customer service and work procedures, whereas in a license agreement, the licensor does not.
Which of the following theories states that a country can increase its economic wealth by specialising in the production of goods that it can produce more efficiently than other countries and then trading those goods?
A.
The general systems theory.
B.
The theory of absolute advantage.
C.
Agency theory.
D.
Porter’s five forces theory.
B.
The theory of absolute advantage.
Identify one reason why a country’s political factors would matter to a potential investor.
A.
Political factors such as distribution of wealth and currency stability are determined by the ruling government.
B.
Political factors shape an investor’s risk of losing assets, earning power or managerial control due to the actions of host governments or political events.
C.
Political factors such as exchange rates and telecommunications are determined by the ruling government.
D.
Political factors affect political stability and internationalisation of markets as suggested by the theory of absolute advantage.
B.
Political factors shape an investor’s risk of losing assets, earning power or managerial control due to the actions of host governments or political events.
ASN Technologies, a software company based in the country Liasia, is planning to expand by purchasing Terrabits Inc., a software company in the country Saintande. After extensive research, ASN Technologies’ management discovers that government attitudes towards foreign direct investment are unfavourable in Saintande, as is the attitude of the country’s population towards foreign companies and staff. The management also discovers that power supply in the areas surrounding Terrabits is unstable and company taxation rates are very high. As a result, the management decides to shelve the idea of purchasing Terrabits. Which of the following is a technological factor that affected the company’s decision?
A.
The corporate tax rate for private companies
B.
The instability of power supply in the areas surrounding Terrabits.
C.
Attitudes towards foreign companies and staff
D.
Attitudes towards foreign direct investment
B.
The instability of power supply in the areas surrounding Terrabits.
Which of the following terms did Hofstede and Hofstede describe as the collective programming of the mind that differentiates one category or group of individuals from others?
A.
Culture.
B.
Sustainability.
C.
Corporate governance.
D.
Globalisation.
A. Culture
Anagram Inc., a software development firm, has a hierarchical structure and authoritarian culture. Employees are expected to obey their supervisors and managers and address them as ‘sir’ or ‘ma’am’. The employees of the company accept this inequality and consider it part of the natural order. In this context, which of the following statements is most likely to be true?
A.
Anagram Inc. is based in a country that scores high on individualism.
B.
Anagram Inc. is based in a country that has a low-context culture.
C.
Anagram Inc. is based in a country that scores high on power distance.
C.
Anagram Inc. is based in a country that scores high on power distance.
Sara lives in a country in which social gender roles overlap and both men and women are supposed to be tender, modest and concerned about the quality of life. By contrast, Megan lives in a country in which men and women have distinct gender roles. Men are supposed to be breadwinners, and women are supposed to be homemakers. In this context, which of the following statements is most likely to be true?
A.
Sara lives in a country that scores high on power distance, whereas Megan lives in a country that scores low on power distance.
B.
Sara lives in a country with a high-context culture, whereas Megan lives in a country with a low-context culture.
C.
Sara lives in a feminine country, whereas Megan lives in a masculine country.
D.
Sara lives in a country with high long-term orientation, whereas Megan lives in a country with high short-term orientation.
C.
Sara lives in a feminine country, whereas Megan lives in a masculine country.
According to Hofstede’s comparison of national cultures, who among the following individuals most likely lives in a country that scores high on long-term orientation?
A.
Kyle, who lives in Canada and seeks the immediate gratification of his needs.
B.
Alena, who lives in Hong Kong and abides by the values of perseverance and thrift.
C.
Derek, who lives in Australia and focuses on fulfilling his social obligations.
D.
Rebecca, who lives in New Zealand and is particular about her image in her social circle.
B.
Alena, who lives in Hong Kong and abides by the values of perseverance and thrift.
Which of the following best exemplifies corporate malpractice?
A.
A company laying off an employee for bad conduct and performance
B.
A company hiring only experienced candidates and refusing to hire new graduates
C.
A company outsourcing the production of its goods to a company that employs children
D.
A company acquiring another company that recently filed for bankruptcy
C.
A company outsourcing the production of its goods to a company that employs children
Which of the following is a difference between philanthropy and enlightened self-interest?
A.
Unlike philanthropy, enlightened self-interest involves a desire to give back to society as a form of gratitude.
B.
Philanthropy involves an experience of the intrinsic pleasure of giving, whereas enlightened self-interest involves giving as a form of insurance.
C.
Unlike philanthropy, enlightened self-interest enhances a company’s status and reputation.
D.
Philanthropy involves investing in something with a long-term return, whereas enlightened self-interest provides immediate gratification.
B.
Philanthropy involves an experience of the intrinsic pleasure of giving, whereas enlightened self-interest involves giving as a form of insurance.
Which of the following is an example of corporate responsibility in terms of product and service impacts?
A.
Supporting pension schemes
B.
Dealing fairly with producers and suppliers
C.
Promoting diversity
D.
Using clear and accurate labels
D.
Using clear and accurate labels
Which of the following statements is true of the ethical decision-making model?
A.
It predicts that personal characteristics of individuals such as work group norms play a bigger role in ethical decision-making than do contextual factors such as ego strength.
B.
It states that an employee’s response to an ethical dilemma is based solely on contextual factors.
C.
It predicts that an employee’s response to an ethical dilemma depends on individual characteristics and organisational policies.
D.
It states that people with an external locus of control are more likely to make ethical decisions than people with an internal locus of control.
C.
It predicts that an employee’s response to an ethical dilemma depends on individual characteristics and organisational policies.
Rubin, a junior employee in an investment company, recently became aware that a senior executive has embezzled millions from the company. He is now torn between reporting this information to an HR manager and keeping it to himself. In the context of the ethical decision-making model, which of the following is an individual factor that is likely to affect Rubin’s decision?
A.
The extent to which Rubin can follow his convictions and resist impulses.
B.
The beliefs of Rubin’s team members about ethical and unethical behaviours.
C.
The penalties established by the management for misconduct.
D.
The policy of the management on whistleblowing.
A.
The extent to which Rubin can follow his convictions and resist impulses.
Ryan, a national of the country Vietrele, is currently a manager in a company based in the country Jakavia. He needs to get some documents authorised by a government official in Jakavia and is surprised when the official asks for a bribe. Despite knowing that bribery is wrong, Ryan is aware that the culture and local norms of Jakavia need to be considered when making the decision of whether or not to pay the bribe. Which of the following concepts does this scenario best exemplify?
A.
Social entrepreneurship.
B.
Corporate responsibility.
C.
Ethical relativism.
D.
Enlightened self-interest.
C.
Ethical relativism.
Rangan (2015) believes that there are three ways in which corporate responsibility can support business strategy. Which of the following is one these ways?
A.
Engaging in enlightened self-interest, which involves social welfare activities that are not intended to produce a profit or to benefit a business directly or indirectly.
B.
Emphasising that managers view their role in economic and financial terms.
C.
Promoting ethnocentrism, which is a culture in which people value and respect the traditions and beliefs of those who belong to other cultures.
D.
Redesigning business processes to make efficient use of resources and produce less waste.
D.
Redesigning business processes to make efficient use of resources and produce less waste.
Porter and Kramer (2011) believe people tend to perceive that business is the cause of most social and environmental problems, which threatens the legitimacy of businesses in people’s eyes. According to them, which of the following is part of the problem?
A.
Managers tend to use broad measures of long-term success.
B.
Businesses allow local clusters to form.
C.
Many managers think of their roles in economic terms.
D.
Businesses constantly rethink their markets and products.
C.
Many managers think of their roles in economic terms.
Porter and Kramer (2011) believe that business is widely perceived as the cause of most social and environmental problems and that this begins to threaten the legitimacy of businesses in the eyes of many citizens. Which of the following ways do Porter and Kramer advocate for companies to perform well?
A.
Accentuating the need for managers to view their role in strictly financial and economic terms.
B.
Focusing on the internal and competitive environments rather than on the general environment.
C.
Focusing on the micro-environment rather than on the macro-environment.
D.
Focusing on creating economic value in a way that also creates value for the society by attending to its needs.
D.
Focusing on creating economic value in a way that also creates value for the society by attending to its needs.
Robert Eccles and his colleagues compared high-sustainability companies with low-sustainability companies. Which of the following is true of their findings?
A.
High-sustainability companies were less likely to outperform low-sustainability companies in the stock market as well as in accounting performance.
B.
High-sustainability companies were more likely than low-sustainability companies to assign responsibility for sustainability to all board committees rather than to a specific committee.
C.
High-sustainability companies were less likely than low-sustainability companies to assess and divulge information related to customers, employees and suppliers.
D.
High-sustainability companies were more likely than low-sustainability companies to set up a stakeholder management process that is comprehensive and engaging.
D.
High-sustainability companies were more likely than low-sustainability companies to set up a stakeholder management process that is comprehensive and engaging.
Stoian and Gilman (2017) defined five corporate responsibility (CR) practices and asked how, when combined with a firm’s strategy, they affected firm growth. Which of the following did they find after a quantitative study of 211 UK-based SMEs?
A.
CR activities that focused on environmental issues such as recycling supported firm growth.
B.
CR activities that focused on employees enhanced the growth of firms, except in firms with a differentiation strategy.
C.
CR activities that focused on human rights issues such as non-discrimination supported firm growth.
D.
CR activities that focused on the community increased the growth of firms, especially in firms with a cost leadership strategy.
D.
CR activities that focused on the community increased the growth of firms, especially in firms with a cost leadership strategy.
Jones et al. (2014) show that organisations that are active in their community and have pro-environment policies are substantially more enticing to a potential employee than are organisations without them. Three mechanisms supported this link. Identify one of these mechanisms.
A.
The potential employee’s anticipation of a masculine culture in the organisation.
B.
The potential employee’s perception of a close fit between his or her values and the organisation’s values.
C.
The potential employee’s expectation that the organisation has an ethnocentric culture.
D.
The potential employee’s expectation that the organisation has high power distance.
B.
The potential employee’s perception of a close fit between his or her values and the organisation’s values.
In the context of the generic elements involved in making a decision, which of the following is the final step?
A.
Defining success criteria based on the desired end-goal
B.
Organising and formulating the agenda
C.
Observing to see if everything is moving as planned
D.
Taking the lead and putting the plan to action
C.
Observing to see if everything is moving as planned
Which of the following is at the centre of an organisation’s decision-making process and continuously informs choices at each step in the process?
A.
Setting objectives and success criteria related to the resolution of an issue
B.
Collecting data on tasks, processes and contexts related to an issue
C.
Acting or leading to implement a decision to resolve an issue
D.
Observing the effects of a decision that has been implemented to resolve an issue
B.
Collecting data on tasks, processes and contexts related to an issue
Saran, a manager, adopts the ‘idea discovery process’ to set realistic and acceptable objectives and success criteria to resolve an organisational issue. Which of the following statements is most likely true in this context?
A.
Saran is likely to disregard the presence of forces that may hinder him from implementing a decision to resolve the issue.
B.
Saran is likely to devote time to understand the claims related to the issue by interacting with stakeholders to evaluate the strength of their views.
C.
Saran is likely to restrict his search for information within the initial claim that ‘an issue has arisen that requires a decision’.
D.
Saran is likely to set unsuccessful objectives because according to Paul Nutt, the ‘idea discovery process’ usually leads to failure.
B.
Saran is likely to devote time to understand the claims related to the issue by interacting with stakeholders to evaluate the strength of their views.
Identify a true statement about programmed, or structured, decisions.
A.
They address familiar problems, and information about such problems is easy to define and obtain.
B.
They address novel or unusual issues that require unique solutions.
C.
They arise rarely, and people are unaware of the methods to deal with such decisions.
D.
They are typically based on unclear or vague information.
A.
They address familiar problems, and information about such problems is easy to define and obtain.
Which of the following statements accurately differentiates between a procedure and a policy?
A.
A procedure specifies what a person can or cannot do in a given scenario, while a policy is a series of interconnected steps to address a structured problem.
B.
A procedure is a sequence of interconnected steps to address a structured problem, while a policy is a guideline that establishes some general principles for decision-making.
C.
A procedure is a guideline that establishes some general principles for decision-making, while a policy sets out what a person can or cannot do in a given scenario.
D.
A procedure is a measure against which the results of a decision can be evaluated, while a policy is a series of interconnected steps to address a structured problem.
B.
A procedure is a sequence of interconnected steps to address a structured problem, while a policy is a guideline that establishes some general principles for decision-making.
Which of the following is an example of a non-programmed decision?
A.
Making a decision on how to approach a novel (unusual) crisis situation
B.
Making a decision while formulating the annual budget
C.
Making a decision on employees’ performance ratings
D.
Making a decision on managing and stocking inventory
A.
Making a decision on how to approach a novel (unusual) crisis situation
Identify a true statement about certainty in the context of a decision.
A.
Certainty describes a situation in which decision makers can vaguely estimate the likelihood of the alternative outcomes using statistical methods.
B.
Certainty describes a situation in which decision makers are unclear about their goals, which makes the alternative ways of achieving the goals equally fluid.
C.
Certainty is when decision makers have little information about which course of action is most likely to succeed in helping them achieve their goals.
D.
Certainty is when all the information that decision makers need is available to them.
D.
Certainty is when all the information that decision makers need is available to them.
Which of the following scenarios most likely exemplifies the concept of ambiguity in the context of decision-making?
A.
A sales manager divides his team into four groups and asks each group to complete a project. However, he does not specify the goals of the project and gives vague instructions to his team members.
B.
A company launching a new product knows that it wants to improve its sales by 20% in the next two years. However, the company is not sure of achieving its objective because it cannot predict the likelihood of events that may impact the product’s success.
C.
An entrepreneur starting a catering business knows what she wants to achieve but is unsure if her new venture will succeed because she cannot predict future events that may impact her business.
D.
A company assesses the background of a job applicant with the help of the details provided by the applicant in the job application form. As a result, the company is able to estimate the degree of the applicant’s person–environment fit in the company.
A.
A sales manager divides his team into four groups and asks each group to complete a project. However, he does not specify the goals of the project and gives vague instructions to his team members.
Fiona, an entrepreneur, starts a software development company and wants to attain at least 5% of market share within the next two years. She has a few plans about how to achieve her goal but does not have enough information about them to decide the best plan. Moreover, she cannot predict other factors such as competitors’ actions that may affect the growth of her company in the market. In the context of decision-making, which of the following concepts does this scenario most likely exemplify?
A.
Ambiguity
B.
Uncertainty
C.
Satisficing
D.
Dependency
B.
Uncertainty
Which of the following statements is true of the rational model of decision-making?
A.
It describes the ways in which people make decisions in uncertain and ambiguous situations.
B.
It analyses the ways in which people make decisions when they disagree over goals and how to pursue them.
C.
It is based on the assumption that people make consistent choices in order to maximise economic value within specified constraints.
D.
It reflects the perspective that a company consists of groups with different interests, goals and values.
C.
It is based on the assumption that people make consistent choices in order to maximise economic value within specified constraints.
Which of the following models of decision-making is based on the concepts of bounded rationality and satisficing?
A.
The negotiated model
B.
The adaptive model
C.
The judgmental model
D.
The rational model
C.
The judgmental model
Identify a true statement about the negotiated model of decision-making.
A.
It states that an organisation acts as a political system that establishes the relative power of individuals and functions.
B.
It states that decisions are made when four independent streams of activities meet, usually by chance.
C.
It focuses on explaining the ways in which people make decisions in situations where the goal is clear.
D.
It is based on the assumption that decision makers make consistent choices to maximise economic value within specified constraints.
A.
It states that an organisation acts as a political system that establishes the relative power of individuals and functions.
Which of the following terms refers to mental shortcuts or simple rules that simplify the process of decision-making?
A.
Heuristics
B.
Operational plans
C.
Activity plans
D.
Competences
A.
Heuristics
Syed, a human resources manager in an investment company, has to decide whether or not to revise the company’s employee recruitment process. The existing recruitment process has been in use for the last eight years, and Syed believes that the process is effective. However, research shows that the existing process has been mostly ineffective and has resulted in high turnover. However, Syed ignores this evidence and decides not to revise the process based on his belief. Which of the following concepts related to decision-making does this scenario most likely exemplify?
A.
Prior hypothesis bias
B.
Emotional attachment
C.
The illusion of control
D.
Representativeness bias
A.
Prior hypothesis bias
A company had launched a product line a year ago, and the product line was very successful. The managers of the company plan to launch a similar product line in the next few weeks. Their decision is based on the assumption that the new product line will lead to high profits because it is similar to previous year’s successful product line. They ignore information related to current market conditions, customer needs and the products of rival companies. Which of the following concepts related to decision-making does this scenario most likely exemplify?
A.
Representativeness bias
B.
Emotional attachment
C.
Prior hypothesis bias
D.
The illusion of control
A.
Representativeness bias
Chae-won, a project manager in a company, is allocating people and resources to various tasks within a new project. She is also in the process of setting deadlines for these tasks. In the context of the five generic elements in planning, which of the following elements does this scenario exemplify?
A.
Acting
B.
Organising
C.
Monitoring
D.
Controlling
B.
Organising
Identify the element in planning that connects all the other elements throughout the repetitive cycle of planning.
A.
Gathering and disseminating information
B.
Controlling and monitoring progress
C.
Setting objectives and the scope of work
D.
Organising people and resources
A.
Gathering and disseminating information
Identify a true statement about planning:
A.
Informal, unwritten plans are likely to work only in situations that involve a large number of people.
B.
Setting objectives is the central element of planning that links all the other elements together.
C.
Developing a plan involves following a linear process that begins with organising.
D.
The processes involved in developing and implementing a plan shape its quality.
D.
The processes involved in developing and implementing a plan shape its quality.
A large apparel manufacturing company recently published its plan to switch to eco-friendly resources for producing its goods and double its sales by 2025. The company aims to achieve these goals by adopting sustainable ways of production, restructuring its supply chain, using global suppliers, investing in marketing and purchasing and/or investing in companies that provide eco-friendly resources and clean energy. Which of the following types of plans does this scenario exemplify?
A.
A business plan
B.
An activity plan
C.
A strategic plan
D.
An operational plan
C.
A strategic plan
Grasshoppers, a publishing company, is structured in such a manner that it has five functional departments—marketing, editorial, sales, finance and human resources. When Amir, the head of the marketing department, requires financial resources from the management for a new marketing campaign, he prepares a comprehensive plan stating the objectives of the campaign, the ways in which the department will achieve those objectives and the criteria against which the results of the campaign will be evaluated. The aim of his plan is to convince senior management to provide him with the necessary capital. Which of the following plans does Amir create in this scenario?
A.
An activity plan
B.
A business plan
C.
A strategic plan
D.
An operational plan
D.
An operational plan
Kevin’s team recently received a math project, and his manager assigned specific tasks to each team member. When Kevin was assigned the task of creating algorithms for the math problems created by his colleague, Kevin created a plan specifying what he needed to do and how he will go about completing his part of the project to ensure timely completion of the entire project. Which of the following plans did Kevin create in this scenario?
A.
An activity plan
B.
An operational plan
C.
A business plan
D.
A strategic plan
A.
An activity plan
Which of the following is a method of summarising a company’s strengths and limitations relative to external opportunities and threats?
A.
A sensitivity analysis
B.
A SWOT analysis
C.
Porter’s Five Forces analysis
D.
PESTEL analysis
B.
A SWOT analysis
In the context of planning, which of the following statements is true of people who are affected by optimism bias and strategic misrepresentation?
A.
When formulating a plan, they tend to focus solely on the constituents of their plan.
B.
When formulating a plan, they tend to underestimate the benefits involved.
C.
When formulating a plan, they tend to take an outside view rather than an inside view.
D.
When formulating a plan, they tend to overestimate the costs involved.
A.
When formulating a plan, they tend to focus solely on the constituents of their plan.
Ruben, the head of the product development department of a mobile phone manufacturing firm, has developed a plan for the creation of a low-cost smartphone with high-end specifications. According to his plan, the new smartphone will gain around 15% of market share within nine months of its launch and increase the firm’s revenue by 25%. Lin, the operations manager of the firm, tests this assumption by calculating the effect on returns if the new product manages to gain only 5% or 10% of market share or surpasses expectations and gains 20% of market share. Which of the following statements is most likely true in this context?
A.
Lin conducts a SWOT analysis.
B.
Lin conducts a sensitivity analysis.
C.
Lin shows prior hypothesis bias.
D.
Lin shows optimism bias.
B.
Lin conducts a sensitivity analysis.
Which of the following statements is true of the importance of goals in successful planning and decision-making?
A.
Setting goals allows planners to establish a single important measure to indicate the success or failure of their plans
B.
Setting goals is the only generic element in planning that links all the other elements in and informs choices throughout the planning process.
C.
Goals allow planners to estimate the financial outcomes of their plans, which is of utmost importance because quantitative goals are essentially more useful than qualitative ones.
D.
Goals provide the point of reference for other decisions related to a plan, and they establish the standards against which to measure outcomes.
D.
Goals provide the point of reference for other decisions related to a plan, and they establish the standards against which to measure outcomes.
A software management company plans to expand and increase its market share by setting up a new office. This organisational objective is transformed into specific objectives for various functional departments, such as human resources, finance and operations. Managers of these departments develop various plans specifying the tasks their departments need to accomplish to achieve the overall organisational objective. The members of these departments then develop activity plans defining their tasks and objectives, which will enable the company to meet the objective of expansion and increased market share. Which of the following concepts does this scenario most likely exemplify?
A.
Performing a SWOT analysis
B.
Performing a sensitivity analysis
C.
Developing a hierarchy of goals
D.
Developing a decision tree
C.
Developing a hierarchy of goals
If Alice, the sales manager of a magazine publishing company, is using the SMART criteria for setting goals for a plan to increase the sales of the magazine, which of the following goals is she most likely to set?
A.
Increase subscriptions of the magazine by 25%.
B.
Increase sales by the next quarter.
C.
Increase subscriptions of the magazine by 8% a year over the next two years.
D.
Increase sales by creating a positive working environment.
C.
Increase subscriptions of the magazine by 8% a year over the next two years.
Which of the following scenarios describes a project manager engaged in the organising aspect of planning?
A.
Kevin, a project manager, is in discussion with a new client about a prospective project that will fetch Kevin’s company an estimated revenue of £150 million.
B.
Hiba, a project manager, has specified the tasks involved in a new project, assigned these tasks to specific team members and set deadlines for them.
C.
Lionel, a project manager, monitors the progress of a large project on a daily basis to ensure its timely completion.
D.
Shayla, a project manager, has received a new project and is understanding its scope of work before setting the objectives of the project.
B.
Hiba, a project manager, has specified the tasks involved in a new project, assigned these tasks to specific team members and set deadlines for them.
When an automobile manufacturing company decided to replace its existing assembly unit with a new unit that was time-efficient and used the latest technology, the planners focused too much on the finance and technology aspect of the company’s internal environment and failed to focus on how the change will affect the company’s structure, people and business processes. As a result, the implementation of the plan was marred by uncertainty and ambiguity regarding the people responsible for the different tasks. In the context of this scenario, identify the aspect of planning that the company most likely failed to perform satisfactorily.
A.
Controlling and monitoring progress to eliminate optimism bias
B.
Systematically specifying the tasks that needed to be accomplished
C.
Performing sensitivity and SWOT analyses
D.
Setting objectives
B.
Systematically specifying the tasks that needed to be accomplished
Managers in large companies take considerable time to communicate the objectives of and the tasks involved in a plan to everyone who will be affected by the plan. Which of the following is a reason why managers invest so much time?
A.
To ensure coordination of activities throughout the company both in practice and on paper
B.
To ensure that people have time to transform qualitative organisational goals into quantitative goals as quantitative goals are inherently more useful than qualitative ones
C.
To ensure that people who do not agree with or accept parts of the plan are excluded from the implementation process to avoid conflicts
D.
To ensure that all affected employees have time to conduct a sensitivity analysis to understand external threats and opportunities
A.
To ensure coordination of activities throughout the company both in practice and on paper
