Question 1

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Intuitive decision making complements rational decision making but not bounded rational
decision making.
Select one:
True
False
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The correct answer is 'False'.

Question 2
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Highly reliable organizations (HROs) are easily tricked by their success.
Select one:
True
False
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The correct answer is 'False'.

Question 3
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Whenever anyone praises Mark for his good performance, he has the tendency to attribute his
success to his personal qualities such as his ability to thrive under pressure and his eye for detail.
However, any negative performance feedback is always met with excuses such as unsupportive
team members or insufficient time. This is an example of the ________.
Select one:
a. self-serving bias
Correct
b. confirmation bias
c. randomness bias
d. framing bias
Feedback
The correct answer is: self-serving bias

Question 4
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A programmed decision is a repetitive decision that can be handled by a routine approach.
Select one:
True

False
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The correct answer is 'True'.

Question 5
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Nonprogrammed decisions ________.
Select one:
a. involve standardized solutions
b. are usually made by lower-level managers
c. are associated with clear and specific goals
d. are unique and nonrecurring
Correct
Feedback
The correct answer is: are unique and nonrecurring

Question 6
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To make effective decisions in today's fast-moving world, managers need to ________.

Select one:
a. build organizations that shun complexity
b. know when it is time to call it quits
Correct
c. ignore cultural differences
d. build organizations that rely on their past successes
Feedback
The correct answer is: know when it is time to call it quits

Question 7
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Structured problems align well with which type of decisions?
Select one:
a. programmed
Correct
b. analogous
c. organic
d. nonlinear
Feedback
The correct answer is: programmed

Question 8
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To determine the ________, a manager must determine what is relevant or important to resolving
a problem.
Select one:
a. bounded rationality of a decision
b. escalation of commitment
c. weight of the decision criteria
d. decision criteria
Correct
Feedback
The correct answer is: decision criteria

Question 9
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________ results in a solution that is considered "good enough."
Select one:
a. Escalating
b. Linear thinking
c. Intuition
d. Satisficing
Correct

Feedback
The correct answer is: Satisficing

Question 10
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Managing Your Career (Scenario)
Michelle has a new job and is learning to perform the tasks assigned to her. Different situations
demand different decision-making processes.

Michelle finds a company directive that specifically restricts her from taking certain actions. This
is a(n) ________.
Select one:
a. rule
Correct
b. policy
c. agenda
d. procedure
Feedback
The correct answer is: rule

Question 11
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"Smoking and the consumption of alcohol are strictly prohibited inside the work premises." This
is most likely an example of a(n) ________.
Select one:
a. rule
Correct
b. objective
c. procedure
d. axiom
Feedback
The correct answer is: rule

Question 12
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A policy ________.
Select one:
a. typically contains an ambiguous term
Correct
b. specifically states what should or should not be done
c. is a series of sequential steps a manager uses to respond to a structured problem
d. is used when dealing with unstructured problems and nonprogrammed decisions

Feedback
The correct answer is: typically contains an ambiguous term

Question 13
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When problems are ________, managers must rely on ________ in order to develop unique
solutions.
Select one:
a. structured; nonprogrammed decision making
b. structured; pure intuition
c. unstructured; nonprogrammed decision making
Correct
d. unstructured; programmed decision making
Feedback
The correct answer is: unstructured; nonprogrammed decision making

Question 14
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The phenomenon of escalation of commitment refers to an increased commitment to a previous
decision despite evidence that it may have been wrong.

Select one:
True
False
Feedback
The correct answer is 'True'.

Question 15
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Managers cannot possibly analyze all information on all alternatives, they tend to ________,
rather than ________.
Select one:
a. maximize; satisfice
b. neutralize; satisfice
c. satisfice; neutralize
d. satisfice; maximize
Correct
Feedback
The correct answer is: satisfice; maximize

Question 16
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The Car (Scenario)
Colleen is a student, and her older brother has loaned her an old car. The car is in need of several
repairs before she will feel comfortable driving it.

Before talking to a repair person, Colleen needs to prioritize the repairs. Her first concern is
safety of the vehicle. This step in the decision-making process is called ________.
Select one:
a. weighting the decision criteria
b. analyzing alternatives
c. identifying the decision criteria
Correct
d. evaluating decision effectiveness
Feedback
The correct answer is: identifying the decision criteria

Question 17
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Toby is hunting for a new apartment. He is specifically looking for one that is located in the
heart of the city and should be available for $600 per month. However, Toby is also willing to
pay up to $850 per month for a place that is situated slighted away from the city center.
According to him, the second option "will also do." This is an example of ________.

Select one:
a. rational decision making
b. bounded rationality
Correct
c. intuitive decision making
d. non linear thinking
Feedback
The correct answer is: bounded rationality

Question 18
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One assumption of rational decision making is that the decision maker is not aware of all
possible alternatives and consequences.
Select one:
True
False
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The correct answer is 'False'.

Question 19
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Which of the following statements is true concerning problem identification?
Select one:
a. Problems are generally obvious.
b. A symptom and a problem are one and the same.
c. Generally, what is a problem for one manager is a problem for all other managers.
d. Effectively identifying problems is not easy.
Correct
Feedback
The correct answer is: Effectively identifying problems is not easy.

Question 20
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Design thinking suggests that managers should look at problem identification collaboratively and
integratively with the goal of ________.
Select one:
a. unveiling a rational approach to address the situation
b. analyzing the situation with deductive reasoning
c. developing solutions which somehow seem inevitable
d. gaining a deep understanding of the situation
Correct

Feedback
The correct answer is: gaining a deep understanding of the situation

Question 21
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An effective decision-making process ________.
Select one:
a. focuses on matters of importance
Correct
b. focuses on consistency more than logic
c. avoids subjective and intuitive thinking
d. is complex but reliable
Feedback
The correct answer is: focuses on matters of importance

Question 22
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In the decision-making process, after allocating weights to the decision criteria, the decision
maker lists viable alternatives that could resolve the problem.
Select one:

True
False
Feedback
The correct answer is 'True'.

Question 23
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The decision-making process begins by identifying decision criteria.
Select one:
True
False
Feedback
The correct answer is 'False'.

Question 24
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Pat is the manager of a large project that has been underway for the last eight months. It has now
become apparent that, due to various external factors, the project is unlikely to succeed. Even

though the best option would be to withdraw from the project, Pat continues to pump money and
resources into it in the hope that the project's prospects will change. He reasons that he doesn't
want all those months of hard work to go to waste. This is an example of the ________.
Select one:
a. availability bias
b. hindsight bias
c. sunk costs error
Correct
d. self-serving bias
Feedback
The correct answer is: sunk costs error

Question 25
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When managers make decisions that are rational but limited by their ability to process the
information, they are following the concept of ________.
Select one:
a. cognitive decision making
b. bounded rationality
Correct
c. escalation of commitment
d. intuitive decision making
Feedback
The correct answer is: bounded rationality

Question 1
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In organizations, people who act as catalysts and assume the responsibility for managing the
change process are called ________.
Select one:
a. change masters
b. change agents
Correct
c. change champions
d. change generators
Feedback
The correct answer is: change agents

Question 2
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Coercion involves exchanging something of value for an arrangement to lessen the resistance to
the change effort.
Select one:
True

False
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The correct answer is 'False'.

Question 3
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________ refers to the ability to combine ideas in a unique way or to make unusual associations
between ideas.
Select one:
a. Innovation
b. Alteration
c. Creativity
Correct
d. Diversity
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The correct answer is: Creativity

Question 4
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Which of the following is NOT an internal force of change?

Select one:
a. technology
Correct
b. strategy
c. workforce
d. employee attitudes
Feedback
The correct answer is: technology

Question 5
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Which of the following techniques for reducing resistance to change assumes that much of the
resistance lies in misinformation?
Select one:
a. negotiation
b. education and communication
Correct
c. participation
d. facilitation and support
Feedback
The correct answer is: education and communication

Question 6
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What organizational development technique involves changing the attitudes, stereotypes, and
perceptions that work groups have about each other?
Select one:
a. team building
b. intergroup development
Correct
c. survey feedback
d. sensitivity training
Feedback
The correct answer is: intergroup development

Question 7
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An innovative culture is likely to have ________.
Select one:
a. high external controls
b. low tolerance of risks
c. closed-system focus
d. tolerance of conflict
Correct

Feedback
The correct answer is: tolerance of conflict

Question 8
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Lightspeed.com (Scenario)
Edwin Edwards is a team leader for Lightspeed.com, an e-business that has employees in every
global time zone. Some of the factors that the team has to contend with are deadlines, strong
work ethic, the creativity-innovation chain, high-speed turnaround, and professionalism. As team
leader, Edwin sees team members via video conference only a few times per year. A frustration
that he is encountering is that he works with all of these people and does not have control over
their "actual" work or the few organizational rules, regulations, and policies. Yet, due to the
position he is in, he feels he gets all of their complaints. The team does not deal well when a
member offers an "off-the-wall" solution to a team problem; team members seem to have more
trouble with this than any other team-conflict issue. What he likes most about leading the team is
that they seem to prefer getting their objective accomplished instead of wasting time trying to
decide who should be doing what.

The part Edwin likes the most is that the team seems to prefer getting their objective
accomplished instead of wasting time, which indicates that the team is ________.
Select one:
a. tolerant of conflict
b. an open-system focus team
c. able to deal with high risk
d. focused on ends rather than means
Correct
Feedback
The correct answer is: focused on ends rather than means

Question 9
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A change capable organization ________.
Select one:
a. links the present and the future
Correct
b. discourages diverse teams
c. discourages mavericks
d. follows its competitor's footsteps
Feedback
The correct answer is: links the present and the future

Question 10
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New Ideas (Scenario)
Although New Ideas, Inc., has been in business for 30 years, the company and its employees
seemingly have been in a constant state of change. Louis Snyder has been President of New
Ideas, Inc. for the last 15 years. During these 15 years, he has had to change the strategic focus of
the company three times. The employees have started becoming vocal about the decrease in their
bonus checks and their desire for increased profits. It seems as though his competition is always

introducing new products into the market and his company's niche products have to be constantly
changed in order to keep up with the competition. Moreover, the government has been active in
passing new legislation to increase the control of the product packaging and product contents.
The technology used to manufacture the products has also been continually changed to make the
process more efficient.

New Ideas, Inc., focuses on new ideas, uses technology that changes frequently, and has strong
competition in the market. This situation describes what metaphor of change?
Select one:
a. a calm water metaphor
b. a black-water rapid metaphor
c. a rapid water metaphor
d. a white-water rapids metaphor
Correct
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The correct answer is: a white-water rapids metaphor

Question 11
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A leadership change can facilitate cultural change.
Select one:
True
False
Feedback
The correct answer is 'True'.

Question 12

Correct
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A ________ helps employees whose personal lives suffer from a lack of planning to sort out
their priorities.
Select one:
a. time management program
Correct
b. wellness program
c. life insurance program
d. health and wellness program
Feedback
The correct answer is: time management program

Question 13
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________ is the process of taking a creative idea and turning it into a useful product or work
method.
Select one:
a. Innovation
Correct
b. Inspiration

c. Creativity
d. Ingenuity
Feedback
The correct answer is: Innovation

Question 14
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According to Lewin, which of the following is the objective of refreezing?
Select one:
a. directing behavior away from the status quo
b. hindering the existing equilibrium
c. eliminating the need for future change
d. stabilizing the new situation
Correct
Feedback
The correct answer is: stabilizing the new situation

Question 15
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Sensitivity training refers to activities that help team members learn how each member thinks
and works.
Select one:
True
False
Feedback
The correct answer is 'False'.

Question 16
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New Ideas (Scenario)
Although New Ideas, Inc., has been in business for 30 years, the company and its employees
seemingly have been in a constant state of change. Louis Snyder has been President of New
Ideas, Inc. for the last 15 years. During these 15 years, he has had to change the strategic focus of
the company three times. The employees have started becoming vocal about the decrease in their
bonus checks and their desire for increased profits. It seems as though his competition is always
introducing new products into the market and his company's niche products have to be constantly
changed in order to keep up with the competition. Moreover, the government has been active in
passing new legislation to increase the control of the product packaging and product contents.
The technology used to manufacture the products has also been continually changed to make the
process more efficient.

The technology change in the manufacturing process of New Ideas, Inc.'s products to make the
process more efficient is the result of a competitor lowering its price. Therefore, it was a(n)
________.
Select one:
a. external force of change
Correct
b. internal force of change

c. marketplace force of change

d. economic force of change
Feedback
The correct answer is: external force of change

Question 17
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Lightspeed.com (Scenario)
Edwin Edwards is a team leader for Lightspeed.com, an e-business that has employees in every
global time zone. Some of the factors that the team has to contend with are deadlines, strong
work ethic, the creativity-innovation chain, high-speed turnaround, and professionalism. As team
leader, Edwin sees team members via video conference only a few times per year. A frustration
that he is encountering is that he works with all of these people and does not have control over
their "actual" work or the few organizational rules, regulations, and policies. Yet, due to the
position he is in, he feels he gets all of their complaints. The team does not deal well when a
member offers an "off-the-wall" solution to a team problem; team members seem to have more
trouble with this than any other team-conflict issue. What he likes most about leading the team is
that they seem to prefer getting their objective accomplished instead of wasting time trying to
decide who should be doing what.

When a member offers an "off-the-wall" solution to a team problem, Edwin has to contend with
what cultural variable?
Select one:
a. tolerance of conflict
b. tolerance of risk
c. tolerance of the impractical
Correct
d. focus on ends

Feedback
The correct answer is: tolerance of the impractical

Question 18
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Fred Fryer's Donuts (Scenario)
Since the integration of two new stores in Littleville, U.S., Fred Fryer's Donuts, Inc., has
recognized that there is a need for reengineering the entire organization. The main need is to
install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of
all old equipment to a salvage dealer or else incur a loss. The employees will have to be trained
to operate the new computer programmed equipment. Fred is setting up the main store as a
training store. Employees from the other stores will train at the main store for five days while
their respective store's equipment is being converted. The regular employees from the main store
have the responsibility of instructing the classes or overseeing the installation of the new
equipment and testing its operation before that store's employees return from training. The
organization is also replacing the old employee reporting system. Ordering of materials will now
be done by an intranet. Fred has promised that no one will lose his or her job because of the
organizational changes. He estimates that when the employees get to the computer programming
training, as many as 10 percent of the current employees will resign or retire. He also thinks that
opening a new store in Nowhere, will absorb the excess employees.

The installation of the new equipment at Fred Fryer's Donuts, Inc., is an example of ________.
Select one:
a. people change
b. management change
c. technological change
Correct
d. structural change
Feedback

The correct answer is: technological change

Question 19
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Stress is the adverse reaction people have to excessive pressure placed on them from
extraordinary demands, constraints, or opportunities.
Select one:
True
False
Feedback
The correct answer is 'True'.

Question 20
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A realistic job preview during the selection process minimizes stress by reducing ambiguity over
job expectations.
Select one:
True
False

Feedback
The correct answer is 'True'.

Question 21
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In the "white-water rapids" metaphor of change, change is seen as an occasional disruption in the
normal flow of events.
Select one:
True
False
Feedback
The correct answer is 'False'.

Question 22
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The Government Job (Scenario)
Colin was getting accustomed to his surroundings in a state government job. His efforts at
getting people to accept change had met with little resistance due to his and the new director's
efforts as well as the hard work of his subordinates. But now the hard part really started-actually
managing the change. What techniques could he and his agency's new director employ to most

effectively implement changes that would result in increased productivity in his department? He
considered changing three aspects of his agency: the structure, the technology, and the people.

Colin decided his people will benefit from ________, a method of changing behavior through
unstructured group interaction.
Select one:
a. survey feedback
b. sensitivity training
Correct
c. team building
d. intergroup development
Feedback
The correct answer is: sensitivity training

Question 23
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A ________ personality is characterized by chronic feelings of a sense of time urgency, an
excessive competitive drive, and difficulty accepting and enjoying leisure time.
Select one:
a. Type X
b. Type Y
c. Type A
Correct
d. Type B
Feedback
The correct answer is: Type A

Question 24
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When supermarkets and other retailers use scanners that provide instant inventory information,
they are adopting ________ changes.
Select one:
a. technological
Correct
b. people
c. financial
d. structural
Feedback
The correct answer is: technological

Question 25
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A company that decides to decentralize its sales procedures is managing ________ changes.
Select one:
a. technological
b. people

c. financial
d. structural
Correct
Feedback
The correct answer is: structural

Question 1
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Studies indicate that doing a good job planning and implementing those plans play a bigger part
in high performance than does how much planning is done.
Select one:
True
False
Feedback
The correct answer is 'True'.

Question 2
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Question text
Which of the following is the last step in MBO?
Select one:
a. Progress toward objectives is periodically reviewed, and feedback is provided.
Correct
b. The organization's overall objectives and strategies are formulated.
c. Successful achievement of objectives is reinforced by performance-based rewards.
d. Action plans are implemented.
Feedback
The correct answer is: Progress toward objectives is periodically reviewed, and feedback is
provided.

Question 3
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A standing plan is ________.
Select one:
a. an ongoing plan that provides guidance for activities performed repeatedly
Correct
b. a plan that stands in place of a preferred plan in case of the failure of the latter
c. a one-time plan specifically designed to meet the needs of a unique situation
d. a flexible plan that sets out general guidelines for company strategy
Feedback
The correct answer is: an ongoing plan that provides guidance for activities performed repeatedly

Question 4

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Dynamic environments require a flatter organizational hierarchy in order to plan effectively.
Select one:
True
False
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The correct answer is 'True'.

Question 5
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________ plans are plans that are clearly defined and leave no room for interpretation.
Select one:
a. Directional
b. Stated
c. Long-term
d. Specific
Correct
Feedback
The correct answer is: Specific

Question 6
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When uncertainty is high, plans should be ________ and ________.
Select one:
a. specific; flexible
Correct
b. directional; standing
c. short-term; directional
d. general; informal
Feedback
The correct answer is: specific; flexible

Question 7
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Which is the first step managers should follow in goal setting?
Select one:
a. evaluating available resources
b. determining goals individually or with input from others
c. writing down goals and communicating them to all who need to know

d. reviewing the organization's mission

Correct
Feedback
The correct answer is: reviewing the organization's mission

Question 8
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Plans that encompass only the production or the sales goals of a company are termed ________
plans.
Select one:
a. operational
Correct
b. strategic
c. informal
d. financial
Feedback
The correct answer is: operational

Question 9
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Question text
Long-term plans are those with a time frame beyond three years.
Select one:
True
False
Feedback
The correct answer is 'True'.

Question 10
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An organization's ________ goals are official statements of what an organization says, and what
it wants its stakeholders to believe its goals are.
Select one:
a. stated
Correct
b. real
c. authentic
d. implicit
Feedback
The correct answer is: stated

Question 11
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A ________ is an integrated network of goals in which the accomplishment of goals at one level
serves as the means for achieving the goals, or ends, at the next level.
Select one:
a. reverse pyramid
b. means-ends chain
Correct
c. bottom-up ladder
d. process sequence
Feedback
The correct answer is: means-ends chain

Question 12
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Long-term plans are defined as those with a time frame beyond ________.
Select one:
a. seven years
b. one year
c. five years
d. three years
Correct

Feedback
The correct answer is: three years

Question 13
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The commitment concept says that plans should extend far enough to meet those commitments
made when the plans were developed.
Select one:
True
False
Feedback
The correct answer is 'True'.

Question 14
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Top executives are mainly involved in ________ planning.
Select one:
a. functional
b. operational

c. strategic
Correct
d. departmental
Feedback
The correct answer is: strategic

Question 15
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Most businesses have only the single goal of making profits.
Select one:
True
False
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The correct answer is 'False'.

Question 16
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What plans are preferable when uncertainty is high in the business environment?

Select one:
a. standing plans
b. directional plans
Correct
c. specific plans
d. informal plans
Feedback
The correct answer is: directional plans

Question 17
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An organization's mission states that it "is committed to reducing its environmental footprint";
but its facilities do not comply with statutory environmental regulations. This is an instance of
how ________.
Select one:
a. strategic goals help shape financial goals
b. long-term goals differ from short-term goals
c. an organizations stated goals need not be its real goals
Correct
d. a company's real goals are derived from its mission statement
Feedback
The correct answer is: an organizations stated goals need not be its real goals

Question 18
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Community Newspaper (Scenario)
Robert Downs is in the process of setting up a small community newspaper in his home town of
Corning, New York. As a first step, he sets the following goal for his company: "To be a
champion for free speech and for the development of the community." This goal is to appear
clearly on top of every page of the newspaper.

When making editorial decisions for his newspaper, Robert Downs mostly picks issues that are
in line with his political beliefs and those that his advertisers approve of. For instance, he
recently chose not to publish a story about how a large local manufacturer, one of the paper's
biggest advertisers, was flouting environmental regulations. This indicates that ________.
Select one:
a. the company's strategic goals do not leave any room for interpretation
b. the company's stated goals are not its real goals
Correct
c. the company's goals are directional in nature
d. the company's financial goals derive from its strategic goals
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The correct answer is: the company's stated goals are not its real goals

Question 19
Correct
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Several research studies have conclusively proven that planning organizations always outperform
nonplanning organizations.
Select one:
True
False
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The correct answer is 'False'.

Question 20
Correct
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The number of years used to define short-term and long-term plans has increased considerably
because of the greater environmental certainty businesses have today.
Select one:
True
False
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The correct answer is 'False'.

Question 21
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Question text
The ________ Act makes it a crime in the United States to engage in stealth of a trade secret.
Select one:
a. Sarbanes-Oxley
b. Patriot
c. Economic Espionage
Correct
d. Glass-Steagall
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The correct answer is: Economic Espionage

Question 22
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Most company's goals can be classified as either ________ or ________.
Select one:
a. strategic; financial
Correct
b. operational; tactical
c. social; economic
d. strategic; operational
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The correct answer is: strategic; financial

Question 23
Correct

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________ planning dominates managers' planning efforts at lower levels of the organization.
Select one:
a. Strategic
b. Organization-wide
c. Operational
Correct
d. Directional
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The correct answer is: Operational

Question 24
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Which of the following reflects the way goals are set in an MBO program?
Select one:
a. Goals are not used to measure and control employee performance.
b. Goals tend to be broad and directional to encourage interpretation by individual managers.
c. Apart from being used to ensure that employees are doing what they are supposed to be
doing, goals are used as a motivating tool for employees.
Correct

d. Goals are set by top level managers and lower level employees implement them based
upon their interpretation of these goals.
Feedback
The correct answer is: Apart from being used to ensure that employees are doing what they are
supposed to be doing, goals are used as a motivating tool for employees.

Question 25
Correct
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Which of the following is an example of a single-use plan?
Select one:
a. affirmative action hiring policies of a company
b. a plan developed to implement new environmental regulations
Correct
c. the procedure to be followed for firing low-performing employees
d. a plan developed to ensure worker safety at the company's facilities
Feedback
The correct answer is: a plan developed to implement new environmental regulations

Question 1
Correct
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Which of the following is an example of a feedforward control measure used to control possible
workplace violence?
Select one:
a. Clearly communicate the security policies to employees.
Correct
b. Use corporate hotlines for reporting and investigating incidences.
c. Review company policies and change, if necessary.
d. Investigate incidences and take appropriate action.
Feedback
The correct answer is: Clearly communicate the security policies to employees.

Question 2
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The Sarbanes-Oxley Act also called for more disclosure and transparency of corporate financial
information.
Select one:
True
False
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The correct answer is 'True'.

Question 3
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Factors that have been found to be linked to workplace violence include ________.
Select one:
a. too much caffeine
b. employee stress
Correct
c. poor employee diet
d. poor personal hygiene
Feedback
The correct answer is: employee stress

Question 4
Correct
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Statco's Control (Scenario)
Statco, Inc., is a statistical software company based in Columbia, TN. This publicly traded firm
has grown in a systematic fashion over its 25-year existence and now claims more than 12,000
employees worldwide. As it has grown, the company has adopted a hierarchical structure, which
emphasizes organizational authority. Management relies heavily on administrative rules,
regulations, and policies in order to meet its goals. However, the company has struggled to meet

projected revenues for each of the past 10 quarters. The firm hires Mark Adams, an expert in
control system design, to design a control system and offer suggestions to improve the firm's
performance.

Mark recommends that the managers at Statco should identify how and why performance has
deviated beyond the acceptable range of variation, and then correct the source of the deviation.
Here, Mark is recommending ________.
Select one:
a. bureaucratic control
b. immediate corrective action
c. basic corrective action
Correct
d. concurrent control
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The correct answer is: basic corrective action

Question 5
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Managers tend to use more direct supervision and highly centralized decision making for control
in less technologically advanced countries.
Select one:
True
False
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The correct answer is 'True'.

Question 6

Correct
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Financial Controls
Ruth Moody works as a freelance financial consultant. She renders financial services to
individuals and small businesses. Entropic Communications, Inc., a fabless semiconductor
company, seeks her services to study the financial stability of their company.

Ruth wants to analyze the organization's ability to meet its current debt obligations. Which of the
following ratios is most helpful to Ruth in analyzing this?
Select one:
a. inventory turnover ratio
b. return on investment ratio
c. current ratio
Correct
d. total asset turnover ratio
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The correct answer is: current ratio

Question 7
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Productivity decreases when an organization raises the prices of its products.

Select one:
True
False
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The correct answer is 'False'.

Question 8
Correct
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Employee Theft (Scenario)
Barbara is the product manager of an energy company which operates in the Americas. She is
concerned about the increased employee theft observed in the factory. A study has shown that
$30,000 worth of merchandise was accounted to employee theft in the year 2010.

Barbara wants to take corrective measures to prevent future theft. Which of the following is a
feedback tactic that Barbara could use to control theft?
Select one:
a. use the services of professional investigators
Correct
b. openly communicate the costs of stealing
c. use corporate hotlines for reporting incidences
d. educate and train employees about the policies
Feedback
The correct answer is: use the services of professional investigators

Question 9

Correct
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Clinical psychologists suggest that employee theft ________.
Select one:
a. occurs primarily when there are poor management-labor relations
b. is a symptom of poor planning and management control
c. happens because people find ways to rationalize this behavior as correct
Correct
d. reflects deep cultural problems in the society
Feedback
The correct answer is: happens because people find ways to rationalize this behavior as correct

Question 10
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The Industry Leader (Scenario)
Frank, the new CEO for First Fidelity, is working hard to turn around the formerly successful
real estate business. His goal is to make First Fidelity a leader in the industry. He understands the
importance of improving organizational productivity in achieving his goals. Mark is keen to
improve organizational performance and effectiveness.

The operations manager suggests a hike in the prices to improve productivity. However, Frank
rules this option out. What could be the possible reason for this?
Select one:
a. Product prices are not related to organizational productivity.
b. Selling price is negatively correlated to organizational productivity.
c. The real estate business is characterized by intense competition.
Correct
d. Such an action would lead to reduced employee satisfaction.
Feedback
The correct answer is: The real estate business is characterized by intense competition.

Question 11
Correct
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________ is the search for the best practices among competitors or non competitors that lead to
their superior performance.
Select one:
a. Factor analysis
b. Total quality management
c. Market positioning
d. Benchmarking
Correct
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The correct answer is: Benchmarking

Question 12
Correct

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The comparing step in the control process determines ________.
Select one:
a. a company's relative position in the industry in terms of the standards used
b. a company's relative position in the industry in terms of performance variances
c. the ideal standard to be used in measuring organizational performance
d. the variation between actual performance and the standard
Correct
Feedback
The correct answer is: the variation between actual performance and the standard

Question 13
Correct
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Which of the following is considered the most desirable type of control to prevent anticipated
problems?
Select one:
a. feedforward control
Correct
b. concurrent control
c. feedback control
d. reactive control

Feedback
The correct answer is: feedforward control

Question 14
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Which of the following sources provides information which is comprehensive, formal, and easy
to file and retrieve?
Select one:
a. oral reports
b. personal observations
c. statistical reports
d. written reports
Correct
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The correct answer is: written reports

Question 15
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Workplace Violence (Scenario)

Three employees were injured in shootings at the Premier Bear Factory located in Arizona. An
employee about to lose his job opened fire to cause this debacle. Helen Gates, the factory
manager, is looking for ways to control such incidents.

Helen investigates the incident to take measures to control its effects. By doing this she is
exerting ________ control over the incident.
Select one:
a. feedback
Correct
b. concurrent
c. parallel
d. feedforward
Feedback
The correct answer is: feedback

Question 16
Correct
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A service profit chain is the service sequence from employees to customers to profit.
Select one:
True
False
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The correct answer is 'True'.

Question 17
Correct

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Controlling Operations
Charles is the operations manager of a firm which operates as a leaf tobacco merchant and
processor worldwide. Charles believes that the firm's productivity can be increased substantially
from the current level. He wants to exert control to improve organizational performance and
productivity.

Charles interacts directly with the employees in the work area to identify problem areas. He
works with various departments to obtain a holistic idea of the business. This type of direct
supervision is an example of ________ control.
Select one:
a. proactive
b. concurrent
Correct
c. feedforward
d. feedback
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The correct answer is: concurrent

Question 18
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________ is the final step in the management process, which provides a critical link back to
________.
Select one:
a. Organizing; planning
b. Planning; controlling
c. Controlling; planning
Correct
d. Leading; organizing
Feedback
The correct answer is: Controlling; planning

Question 19
Correct
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Which of the following is a performance measurement tool that looks at four areas that
contribute to a company's performance?
Select one:
a. market value method
b. economic value method
c. balanced scorecard approach
Correct
d. information control approach
Feedback
The correct answer is: balanced scorecard approach

Question 20
Correct

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Statco's Control (Scenario)
Statco, Inc., is a statistical software company based in Columbia, TN. This publicly traded firm
has grown in a systematic fashion over its 25-year existence and now claims more than 12,000
employees worldwide. As it has grown, the company has adopted a hierarchical structure, which
emphasizes organizational authority. Management relies heavily on administrative rules,
regulations, and policies in order to meet its goals. However, the company has struggled to meet
projected revenues for each of the past 10 quarters. The firm hires Mark Adams, an expert in
control system design, to design a control system and offer suggestions to improve the firm's
performance.

Which of the following is a key activity that the proposed control system should perform?
Select one:
a. organizational planning
b. organizational structuring
c. performance measurement
Correct
d. strategic planning
Feedback
The correct answer is: performance measurement

Question 21
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Question text
The earthquake/tsunami which hit Japan in March of 2011 highlights the contemporary need to
design organizational controls for ________.
Select one:
a. cross-cultural differences
b. global turmoil and disasters
Correct
c. workplace privacy
d. workplace safety
Feedback
The correct answer is: global turmoil and disasters

Question 22
Correct
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The ________ approach to performance measurement was introduced as a way to evaluate
organizational performance from more than just the financial perspective.
Select one:
a. market value
b. economic value
c. balanced scorecard
Correct
d. financial control
Feedback
The correct answer is: balanced scorecard

Question 23

Correct
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The control process assumes that ________.
Select one:
a. employees require clear directions from management
b. employees are under-qualified and require training
c. performance standards are already in place
Correct
d. employee monitoring costs are part and parcel of doing business
Feedback
The correct answer is: performance standards are already in place

Question 24
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Benchmarks for a company must be created based on the previous performance of the company.
Select one:
True
False
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The correct answer is 'False'.

Question 25
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Control techniques can be quite different for different countries. The differences are primarily in
the ________.
Select one:
a. types of tasks that employees perform in various countries
b. way employees respond to the controlling measures
c. strategic orientation of each technique
d. measurement and corrective action steps of the control process
Correct
Feedback
The correct answer is: measurement and corrective action steps of the control process