Bottom line of any business plan is

Marketing plan B)Financial plan C) Personnel plan D) Production plan

Top management works on
Strategic Plan B) Corporate Plan C) Budgeting D) Both A & B
A ''Strategic plan' is also called
Long Term Plan Short Term Plan Both A And B None Of Above
Plan which is firstly discussed in business plan is mostly
Marketing Plan Financial Plan Personnel Plan Production Plan
First step in planning process is to
Set An Objective Evaluate Alternatives Determine Strength And Weaknesses None Of Above
Bottom line of any business plan is
marketing plan Financial plan personnel plan production plan
Top management works on
Strategic plan corporate plan budgeting both A & B
A ''Strategic plan' is also called
long term plan Short term plan Both A and B None of above
Plan which is firstly discussed in business plan is mostly
marketing plan financial plan personnel plan production plan
First step in planning process is to
Set an objective Evaluate alternatives Determine strength and weaknesses none of above
FUNDAMENTALS OF MANAGEMENT ACCOUNTING - MCQS WITH ANSWERS
he term management accounting was first coined in
a) 1960 b) 1950 c) 1945 d) 1955 ANSWER: b) 1950
Management accounting is A) Subjective B) Objective a) Only A b) Only B c) Both A and B
d) None of the above ANSWER: a) Only A
3. The use of management accounting is a) Optional b) Compulsory c) Legally obligatory d) Compulsory to
some and optional to others ANSWER: a) Optional
4. The management accounting can be stated an extension of
A) Cost Accounting B) Financial Accounting C) Responsibility Accounting a) Both A and B
b) Both A and C c) Both B and C d) A, B, C ANSWER: d) A, B, C
5. Which of the following is true about management accounting?
A) Management accounting is associated with presentation of accounting data.
B) Management accounting is extremely sensitive to investors needs.
a) Only A b) Only B c) Both A and B d) None of the above ANSWER: a) Only A
6. Management accounting assists the management
a) Only in control b) Only in direction c) Only in planning d) In planning, direction and control
ANSWER: d) In planning, direction and control
7. Which of the following are tools of management accounting?
A) Decision accounting B) Standard costing C) Budgetary control D) Human Resources Accounting
a) A, B and D b) A, C and D c) A, B and C d) A, B , C, D ANSWER: c) A, B and C
8. Management accounting is related with
a) The problem of choice making b) Recording of transactions c) Cause and effect relationships
a) A and B b) B and C c) A and C d) All are false ANSWER: c) a and c
9. Management accountancy is a structure for
a) Costing b) Accounting c) Decision making d) Management ANSWER: c) Decision making
10. Who coined the concept of management accounting?
a) R.N Anthony b) James H. Bliss c) J. Batty d) American Accounting Association
ANSWER: b) James H. Bliss
12. Management accounting deals with
a) Quantitative information b) Qualitative information c) Both a and b
d) None of the above ANSWER: c) Both a and b
13. Management accounting highlights staff relationship with top management as well as other personnel.
a) True b) False ANSWER: b) False
11. When the strength provides superior and unique customer value and is difficult to imitate then the distinctive
competence creates a sustainable____________.
A. Competitive Advantage B. Scope C. Resource Deployment D. Effective Strategy
12. Which of the following organization is rigidly controlled and efficient?
A. Organic B. Mechanistic C. Horizontal D. Learning
13. In a juice making company sales manager has the set the goal of increasing the sales by 10% in summer season.
At the end of summer Manager will check either goal has archived or not. This function is known as
A. Planning B. Organizing C. Leading D. Controlling
The term manager refers to anyone who ________.
Answer: has designated responsibilities for carrying out managerial activities
What is the primary legacy of Frederick Taylor?
Answer: "one best way": standardized tools and tasks, standard quota and pay; piecework compensation; union
opposition; congressional investigation
When the strength provides superior and unique customer value and is difficult to imitate then the
distinctive competence creates a sustainable _______.
Competitive advantage Scope Resource deployment Effective strategy
Dell Company sells the variety of products like computers, laptops, accessories over the internet. Dell is
engaged in
Intranet Extranet E-commerce E- Business
The people who work under the first line managers are often called by all of the following names EXCEPT:
Non managers Supervisors Skilled workers Semi skilled workers
A plan developed to carry out a course of action that is not likely to be repeated in the future is called:
Single-use plan Specific plan Reaction plan Directional plan
The leader of an organization performs __________, as per Mintzberg.
An Interpersonal role An Informational role A Decisional role All of the given options
A manager transmits the information outside the organization. He is performing which of the following
role?
Spokesperson Representative Disseminator Agent
Which of the following skill is most essential to get most out of the people?
Technical skill Human skill Conceptual skill Mechanical skill
The degree to which jobs are standardized and guided by rules and procedures is called:
Work specialization Centralization Decentralization Formalization
Which factor has been the most rapidly changing component in an organization’s general environment in the
past quarter-century?
Global Economic Social Technological
Monitoring organizational progress towards goal attainment is called:
Planning Organizing Leading Controlling
Which one of the following individuals is most closely associated with scientific management?
Frederick Taylor Mary Parker Follett Harold Koontz Max Weber
Which of the following means that you achieve the best possible balance among several goals?
Sacrificing Satisficing Minimizing Optimizing
PERT Chart assists in _________ the tasks within an organization.
Budgeting Scheduling Evaluating Finalizing
As a transportation manager you are supposed to select transportation routes to minimize shipping cost. Which
optimum technique will be used?
Forecasting Project management Budgeting Linear programming
The process of monitoring performance, comparing it with goals and correcting any significant deviations is
known as: Planning Organizing Leading Controlling
Nestle and ICI have taken steps to address human rights issues in their overseas factories. This represent that these
companies have
Social obligation Social Screening Socially responsibility Social responsiveness
Asma, a new manager at XYZ Inc. primarily worries about assembling and coordinating the human, financial,
physical, and other resources needed to achieve her goals. Which function is Asma primarily concerned about?
Organizing Controlling Planning Leading
The set of strengths, characteristics and qualities including skills, technologies, or resources that distinguish a firm
from its competitors is called:
Scope Distinctive Competency Resource deployment Effective strategy
All of the following are the characteristics of an organization EXCEPT:
People Product Purpose Structure
Most of the countries in the world are moving towards globalization all of the following reasons EXCEPT:
For free market economy For liberalization in trade Increase efficiency Refutation of economic power
Which of the following management thinker created a role classification system based on how managers spend their
time at work to describe a manager's role?
Peter Brabeck-Letmathe Abraham Maslow Andrea Jung Henry Mintzberg
The process of collaborative goal setting by a manager and subordinate; the extent to which goals are accomplished
is a major factor in evaluating and rewarding the subordinate’s performance. It is called:
Management by objective Management by resources Management by authority Management by system
Which of the following is the process of developing businesses to pursue trends and changes that no one else has
seen before? Entrepreneurship Division of labor Evolution E-commerce
What is the best term to describe the process of attempting to influence other people to attain the organization's
objectives?
Planning Organizing Leading Controlling
An organization that assigns specialists from different functional departments to work on one or more than one
projects being led by project managers is called -------------
Team Organization Virtual Organization Matrix organization Learning Organization
Activities such as taking visitors to dinner and attending ribbon cutting ceremonies come under which of the
following management role?
Leader Liaison Figurehead Negotiator
The degree to which decision making is confined at a single point in an organization is described as __________.
Unity of command Chain of command Span of management Centralization
Global competition, accelerated product development by competitors, and increased demands by customers for
better service have encouraged organizations to become more ___________.
Organic Mechanistic Technologically pure Task oriented
The idea that employees should also share the profit of organization was given by:
Frederick Taylor Robert Owen Charles Babbage W. Edwards Deming
Plant managers come under which of following management levels?
First-line managers Non-managerial employees Middle managers Top managers
When Shumaila is comparing actual sales figures with goals established earlier to see if her department met the
target, she is performing which of the following functions?
Planning Organizing Leading Controlling
Which one of the following ethical approaches exemplifies the belief that every person has fundamental human
rights that should be respected as well as protected?
Justice approach Rights approach Individualism approach Utilitarianism approach
________, identifies the order of activities to be performed in order to achieve a particular goal.
Budgeting Linear programming Break-even analysis Scheduling
All levels of management between the supervisory level and the top level of the organization are termed as:
Middle managers First-line managers Supervisors Foremen
A situation in which an organization is not implementing valuable strategies that are being implemented by
competing organization is called:
Competitive disadvantage Distinctive competencies Competitive edge Competitive parity
A budget is an example of which of the following plan?
Strategic plan Single use plan Informal plan Standing plan
The management function that specifies goals to be achieved and deciding in advance the appropriate actions to
achieve those goals is:
Leading Controlling Organizing Planning
_______________is a situation that offers a strong potential for significant organizational gain if appropriate
actions are taken
Crises problem Opportunity problem None crises problem None of above
Pakistan Federal government has passed disabilities act of 2005 to protect rights of disable persons and to give them
flexibility in job. This comes under which of the following environmental sub context
Economic Socio cultural Political/legal Technological
Which type of environment is best suited for mechanistic organizations?
Dynamic Manufacturing Service Stable
Global competition, accelerated product development by competitors, and increased demands by customers for
better service have encouraged organizations to become more ___________.
Organic Mechanistic Technologically pure Task oriented
The idea that employees should also share the profit of organization was given by:
Frederick Taylor Robert Owen Charles Babbage W. Edwards Deming
Computers and campus facilities given to a university are called its:
Human resources Financial resources Physical resources Information resources
Which is the most common cause of business failure?
Insufficient capital Unstable market Insufficient experience Poor entrepreneurship
Sales responsibilities divided into the Southwest, Midwest, southern, northern, and western regions would be an
example of what type of departmentalization?
Product Geographic Process Outcome
Question # 13 of 20 ( Start time: 09:51:24 PM ) Total Marks: 1
In the MBO system:
Objectives are determined by management Goals are only reviewed at the time of completion Goals are used as
controls
An organic organizational structure is characterized by-----------
Minimal formalization Rigid departmentalization Narrow spans of control High formalization
In XYZ Company HR director has negotiated with striking employees who were demanding for increase in
salaries due to inflation. He has performed the role of
Leader Negotiator Liaison
All of following are elements of planning function EXCEPT
Establishing strategies Developing Plans Monitoring Performance Coordinate activities
Which of the following statement best describes Social Obligation?
In order to communicate, motivate and delegate a manager must have:
Political skills Conceptual skills Technical skills Interpersonal skills
In the pyramid of levels of management, non-managerial staff is placed at/in:
Top Middle Bottom None of the given options
How would you define the problem if all outcomes of every alternative are known?
Bounded rationality Unbounded rationality Certainty Uncertainty
The process of monitoring performance, comparing it with goals and correcting any significant deviations is
known as:
Planning Organizing Leading Controlling
Mr. A is a Manager on XYZ company; he has a reputation for being an open and honest person and
understands how to motivate employees and customers, he said to have good____________ skills.
Sales Political Interpersonal Technical
The Continues line if authority that extends from the upper level of management to the lowest levels of the
organization is called:
Authority line of responsibility Unity of Commerce Responsibility factor Chain of command
Which ethical approach guided by what will result in the greatest good for the greatest number of People?
Moral Rights Approach Individual approach Utilitarian Approach Justice Approach
Plans that Provide guidelines form activities to be performed repeatedly like policy, procedure are called.
Single Use Plans Standard Plans Contingency Plan Snor term Plams
Which is the most common cause of business failure?
Insufficient Capital Unstable market Insufficient experience Poor Entrepreneurship
Reading of a business journal, publication on regular basis to gather information for upcoming business tends, this
role is called Disseminator Liaison Spokesperson Monitor
Which of the following is the accountability for the achievement of objectives, the use of resources, and the
adherence to organizational policy?
Power Responsibility Authority Planning
__________________ are large scale action plans of an organization for interacting with environment in order to
achieve long term goals.
Objectives Strategic Goals Strategic Actions
A plan developed to carry out a course of action that is not likely to be repeated in the future is called:
Single-use plan Specific plan Reaction plan Direction plan
Concern for employee motivation is most closely associated with which of the following management approach?
Bureaucracy Organizational behavior Scientific management Systems
Interest rates, inflation rates, and stock market indexes are all examples of which of the factor of an organization’s
general environment?
Economic Political Social Technological
Which factor has been the most rapidly changing component in an organization’s general environment in the past
quarter-century?
Global Economic Social Technological
The process of monitoring performance, comparing it with goals and correcting any significant deviations is known
as: Planning Organizing Leading Controlling
When Usman decides to deploy employees to another department that is lagging behind in production, he is acting
in which of the following roles?
Spokesperson Negotiator Leader Resource allocator
The greater the risk involves in making a decision, the greater the:
Outcomes Information available Rewards Uncertainty
Each subordinate should report to one and only one superior is called:
Authority Unity of command Unity of direction Order
Which of the following is part of the 14 principles of management identified by Henri Fayol?
Scalar chain Innovation Efficiency Motivation
A learning organization has developed its________.
Educational department to keep employees trained Capacity to adapt and change
Barriers to entry of its markets A sustainable competitive advantage that is easy to maintain
Which of the following is not a suggestion for motivating employees?
Recognize individual differences Makes goals very difficult to achieve Match people to jobs
Individualize rewards
The plans which deal with fairly small set of activities are called:
Strategic plan Tactical plan Operational plan Personal plan
Which of the following is known as the process of getting activities completed efficiently and effectively with and
through other people?
Leading Management Supervision Controlling
Which of the following describe(s) a global marketplace?
The entire world is a marketplace National borders are irrelevant The potential for organizations to grow
expands dramatically All of the given options
The assignment of new or additional responsibilities to a subordinate is called:
Coordination Specialization Delegation Span of control
 Which of the following management thinker created a role classification system based on how managers spend
their time at work to describe a manager's role?
Peter Brabeck-Letmathe Abraham Maslow Andrea Jung Henry Mintzberg
Which expectancy theory linkage explains the degree to which a student desires a good job?
Expectancy Effort to performance Input to outcome Valence
Which ethical approach is guided by what will result in the greatest good for the greatest number of people?
Moral-Rights approach Individual approach Utilitarian approach Justice approach
Low level management has a complete authority to make decisions in case of:
Centralization Decentralization Scalar Chain Order
Which one of the following individuals is most closely associated with scientific management?
Frederick Taylor Mary Parker Follett Harold Koontz Max Weber
Each subordinate should report to one and only one superior is called:
Authority Unity of command Unity of direction Order
There are many healthcare products manufacturers. XYZ Company manufactures only personal hygiene products.
It markets such products deodorant, body powder, body creams, and exfoliates. Because it only stocks body care
and personal hygiene products, it is using ___ strategy.
Prospecting Emergent Focus Cost leadership
The organization that has developed the capacity to continuously learn, adapt, and change is called:
Virtual organization Learning organization Traditional organization
Bureaucratic organization
Your firm’s attorney has which of the following power when giving legal advice?
Legitimate Status Expert Coercive
Which of the following is a function of how much decision-making authority is pushed down to lower levels in the
organization?
Departmentalization Centralization Span of control Power
Organizations that are highly flexible and adaptive are described as which of the following?
Organic Mechanistic Rational (NOT SURE) Intuitive
Which of the management tasks is the most important for a supervisory manager?
Planning Organizing Controlling Staffing
A budget is an example of which of the following plan?
Strategic plan Single use plan Informal plan Standing plan
Which of the following is the final step in the decision-making process?
Identifying the problem Evaluating the decision’s effectiveness
What type of an organization actively creates, acquires, and transfers knowledge within itself and is able to modify
its behavior to reflect new knowledge?
Enlightened organization Conceptualized organization Learning organization Modern organization
A primary benefit of MBO is:
Avoid competition Resistance against new entrance Improve employee motivation Increase resources
Functional departmentalization groups jobs by which of the following?
Tasks they perform Territories they serve Products or services they manufacture or produce Type of customer
they serve
Henri Fayol, a French industrialist, first analyzed what managers do and divided that work into functions. The study
of the management function that defines goals and establishes strategies to achieve them is called:
Planning Organizing Leading Controlling
Which one of the following items best reflects the extent to which a society places a high value on reducing risk
and instability?
Uncertainty avoidance Power distance Masculinity/femininity Long-term/short-term orientation
When a manger made a decision and he is uncertain about the outcomes. His decision is likely to be:
Of Poor Quality Unacceptable Successful Risky
Forecasting techniques fall into which of the following two categories?
Fixed asset and human capital Predictive and confirmatory Quantitative and qualitative Empirical and
conceptual
A plan developed to carry out a course of action that is not likely to be repeated in the future is called:
Single-use plan Specific plan Reaction plan Directional plan
The organization which has no interaction with its external environment is called:
Open system Closed system Non-interactive system Moderated system
Which famous management thinker was related with the development of "Theory X"?
Douglas McGregor Abraham Maslow Frederick Herzberg Chester Barnard
The management function that specifies goals to be achieved and deciding in advance the appropriate actions to
achieve those goals is:
Leading Controlling Organizing Planning
Monitoring organizational progress towards goal attainment is called:
Planning Organizing Leading Controlling
Organizational culture is similar to an individual’s:
Skills Personality Motivation Ability
Which of the following is NOT an example of an organization’s general environment?
Economic conditions Political conditions Social conditions Who presented the Concept of Quality?
Henri Fayol Prof.Henry Mintzberg Frank & Lillian Gilbreth Prof.Edward Deming
In order to communicate, motivate and delegate a manager must have:
Political skills Conceptual skills Technical skills Interpersonal skills
Who is credited for the theory of motivation based on the hierarchy of needs?
Abraham Maslow Douglas McGregor Henri Fayol Mary Parker Follett
Which of the following is NOT an example of a constituency that makes up the specific environment?
Customers Socio-cultural Suppliers Competitors
The SWOT approach assesses an organization's:
Speed, Wants, Order, Timing Studies, Workflows, Opportunities, Trials Strengths, Weaknesses, Opportunities,
Threats Signs, Worries, Objectives, Techniques
An office supply firm that has three departments based upon retail, wholesale, and governmental customers is
using which of the following types of departmentalization?
Functional Product Customer Geographic
To determine the ___________, a manager must determine what is relevant or important in resolving the problem.
Geocentric behavior needed Number of allowable alternatives Weighting of decision criteria Decision criteria

A manager who strives to ensure the activities of the organization's employees are supported and blend well with
those of individuals outside the firm could be said to hold which of the following interpersonal role within the
company? Liaison Disseminator Figure head Entrepreneur
What would be the best description of plans that focus on the broad future of the organization and incorporate both
external environmental demands and internal resources into managers' actions?

Operational plans Tactical plans Strategic plans Holistic plans

When objectives are not written down or rarely verbalized, and the planning is general and lacks continuity, which
of the following types of planning is used?
Environmental planning Economic planning Informal planning Formal planning
Inspiring people to be high performer is called:
Controlling Leading Planning Organizing
Which of the following theory is currently the most widely accepted when describing employee motivation?
Reinforcement Three-need Expectancy Equity
LG and Sony electronics agreed to cooperate on developing new technologies. Representatives from each firm meet
regularly to coordinate this new venture. Which of the following roles these mangers are playing?
Liaison Leader Disseminator Spokesperson
A skill or capability that enables an organization to conceive of and implement its strategies is its:
Strength Weakness Opportunity Threat
The task environment of organizations consists of constituencies that have a direct impact on managers’ decisions
and actions. The main constituencies are made up of customers, suppliers, competitors, and ________.
Legislators Pressure groups Employees Lawyers
 Set of processes involved in creating or determining the strategies of the organization is called:
Strategy formulation Strategy implementation Strategy evaluation Strategy imitation
What type of an organization actively creates, acquires, and transfers knowledge within itself and is able to modify
its behavior to reflect new knowledge?
Enlightened organization Conceptualized organization Learning organization Modern organization
Which of the following is a general statement or understanding that guide or channelize thinking in decision
making?
Policy Procedure Rule Project
Which of the following is a process that involves managers from all parts of the organization in the formulation of
strategic goals?
Strategic management Strategic positioning Strategic planning Strategic organizing
Maslow's need hierarchy, a healthy work environment is an example of what type of need?
Physiological Esteem Safety Social
What would be the best description of plans that focus on the broad future of the organization and incorporate both
external environmental demands and internal resources into managers' actions?
Operational plans Tactical plans Strategic plans Holistic plans
Which of the following is NOT a key element of the Total Quality Management approach?
Focus on the customer Employee involvement Continuous improvement Focus on the supplier
When call center managers spend much of their time monitoring customer calls and giving employees feedback
about how to improve their dialogue with customers in the future, these managers are using which of the following
skills?
Technical Conceptual Situational Ethical

Alternatives that an organization chooses from its operations across several industries and several markets is called:
Business-level strategy Corporate-level strategy Functional-level strategy Market-level strategy
In the MBO system:
Objectives are determined by management Goals are only reviewed at the time of completion
Goals are used as controls Progress is periodically reviewed
Strategic plans cover a broader view of the organization and include the formulation of goals, whereas operational
plans define ways to: Maximize the organization’s profits Achieve the goals Minimize the number of employees
Provide the most efficient methods of production
A skill or capability that enables an organization to conceive of and implement its strategies is its:
Strength Weakness Opportunity Threat
The management function that specifies goals to be achieved and deciding in advance the appropriate actions to
achieve those goals is: Leading Controlling Organizing Planning
The plans which deal with fairly small set of activities are called:
Strategic plan Tactical plan Operational plan Personal plan
A budget is an example of which of the following plan?
Strategic plan Single use plan Informal plan Standing plan
Which of the following can be defined as the art and science of formulating, implementing and evaluating cross-
functional decisions that enable an organization to achieve its objectives?
Strategy formulation Strategy evaluation Strategy implementation Strategic management
Which of the following is NOT one of the situational factors thought to influence the relationship between leader
behavior and subordinate motivation to perform in the path-goal theory?
Preferences of the leader Subordinate locus of control Characteristics of the work group Task structure
Social obligation is the obligation of a business to meet its:
Social and technological responsibilities Economic and social responsibilities Technological and economic
responsibilities Economic and legal responsibilities
The method by which strategies are operational zed or executed within the organization is called:
Strategy implementation Strategy evaluation Strategy formulation Strategy imitation
The idea that employees should also share the profit of organization was given by:
Frederick Taylor Robert Owen Charles Babbage W. Edwards Deming
In some countries, such as Venezuela, titles, rank, and status carry a lot of weight. These countries have a large:
Power distance Uncertainty avoidance Short- versus long-term orientation Individualism versus collectivism
Which of the following is associated with the classical view of social responsibility?
Economist Robert Reich Concern for social welfare Stockholder financial return Voluntary activities
Which of the following management thinker created a role classification system based on how managers spend
their time at work to describe a manager's role?
Peter Brabeck-Letmathe Abraham Maslow Andrea Jung Henry Mintzberg
Which of the management tasks is the most important for a supervisory manager?
Planning Organizing Controlling Staffing
Forecasting techniques fall into which of the following two categories?
Fixed asset and human capital Predictive and confirmatory Quantitative and qualitative
Empirical and conceptual
Which of the following theory is currently the most widely accepted when describing employee motivation?
Reinforcement Three-needs Expectancy Equity
A leader, such as Bill Gates of Microsoft, who can inspire followers above their own self-interests and can have a
profound effect on their performance, are known as which of the following?
Transactional leaders Directive leaders Informational leaders Transformational leaders
A situation in which an organization is not implementing valuable strategies that are being implemented by
competing organization is called:
Competitive disadvantage Distinctive competencies Competitive edge Competitive parity

Which of the following term is defined as a business firm’s obligation, beyond that required by law and economics,
to pursue long-term goals that are good for society?
Social obligation Social responsibility Social screening Values-based management
Feed Back of ____ is necessary to improve the quality of the product.
Customers Employees Investors All of the given options
Which of the following is the accountability for the achievement of objectives, the use of resources, and the
adherence to organizational policy?
Power Responsibility Authority Planning
Which management theory focuses on managing the total organization?
Scientific management Administrative management Behavioral management Quantitative management
Communication should be:
From Top to Bottom level From Bottom to top 2 way None of the given option
The following is the process of developing businesses to pursue trends and changes that no one else has seen
before?
Entrepreneurship Division of labor Evolution E-commerce
A learning organization has developed its________.
Educational department to keep employees trained Capacity to adapt and change
Barriers to entry of its markets A sustainable competitive advantage that is easy to maintain
The greater the risk involves in making a decision, the greater the:
Outcomes Information available Rewards (NOT SURE) Uncertainty
A skill and capability held by numerous competing firms is called:
Common strength Competitive edge Competitive parity Distinctive competencies
The quantitative approach has contributed directly in the areas of:
Planning and control Control and leading Organizing and control Planning and leading
The belief that businesses should be responsible because such actions are right for their own sake is known
as which argument for social responsibility?
Public expectation Ethical obligation Public image Discouragement of government regulation

Organizations
collections of people who work together and coordinate their actions to achieve a wide variety of goals or desired
future outcomes.
Management
the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals
efficiently and effectively.
organizational performance
a measure of how efficiently and effectively a manager uses resources to satisfy customers and organizational
goals.
efficiency
a measure of how productively resources are used to achieve a goal.
effectiveness
a measure of the appropriateness of the goals an organization is pursuing and of the degrees to which the
organization achieves those goals.
planning
identifying and selecting appropriate goals. one of the four principal tasks of management.
strategy
a cluster of decisions about what goals to pursue, and how to use resources to achieve goals.
organizing
structuring working relationships so organizational members work together to achieve organizational goals, one of
the four principle tasks of management.
organizational structure
a formal system of task and reporting relationships that coordinates and motivates organizational members so that
they work together to achieve organizational goals.
leading
articulating a clear vision and energizing and enabling organizational members so that they understand the part they
play in achieving goals. one of the four principle tasks of management.
controlling
evaluating how well an organization is achieving its goals and taking action to maintain or improve performance.
one of the four tasks of management.
department
a group of people who work together and possess similar skills or use the same knowledge, tools or techniques to
perform their jobs.
first-line manager
a manager who is responsible for the daily supervision of nonmanagerial employees.
middle manager
a manager who supervises the first line managers and is responsible for finding the besdt way to use resources to
achieve organizational goals.
top manager
a manager who establishes organizational goals, decides how departments should interact, and monitors the
performance of middle managers.
top-management team
a group composed of the CEO, the COO, the president, and the heads of the most important departments.
conceptual skills
the ability to analyze and diagnose the situation and to distinguish between cause and effect.
human skills
the ability to understand, alter, lead, and control the behavior of other individuals and groups.
technical skills
the job specific knowledge and techniques required to perform an organizational role.
core competency
the specific set of departmental skills, knowledge, and experience that allows one organization to outperform
another.
restructuring
downsizing an organization by eliminating the jobs or large numbers of top, middle, and first managers and
nonmanagerial employees.
outsourcing
contracting with another company, usually abroad, to have it perform an activity the organization previously
performed itself.
empowerment
the expansion of employees' knowledge, tasks, and decision making responsibilities.
self-managed team
a group of employees who assume responsibility for organizing, controlling, and supervising their own activities
and monitoring the quality of the goods and services they produce.
global organization
organizations that operate and compete in more than one country.
competitive advantage
the ability of one organization to outperform another because it produces desired goods or services more efficiently
and effectively than they do.
innovation
the process of creating new or improved goods and services or developing better ways to produce or provide them.
turnaround management
the creation of a new vision for a struggling company based on a new approach to planning and organizing to make
better use of a company's resources to allow it to survive and prosper.

Chapter 3 Organizational Culture and Environment

THE MANAGER: OMNIPOTENT OR SYMBOLIC?
In the symbolic view of management, managers are seen as directly responsible for an organization’s success or
failure. (False; easy; p. 50)
The current dominant assumption in management theory suggests that managers are omnipotent.
(True; moderate; p. 50)
The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business
executive who can overcome any obstacle in carrying out the organization’s objectives. (True; moderate; p.
The symbolic view of management impact is useful in explaining the high turnover among college and professional
sports coaches, who can be considered the “managers” of their teams.(False; difficult; p. 50)
In the omnipotent view of management, much of an organization’s success or failure is due to forces outside
management’s control. (False; easy; p. 50)
If an organization subscribes to the symbolic view of managers, it is unreasonable to expect managers to have a
significant effect on the organization’s performance. (True; easy; p. 50)
A manager’s role in the omnipotent view of management is to create meaning out of randomness, confusion, and
ambiguity. (False; moderate; p. 50)
An organizational culture refers to a system of shared meaning. (True; moderate; p. 52)
The organizational culture is a system of shared meaning held by members that distinguishes the organization from
other organizations. (True; moderate; p. 52)
Organizational culture is a perception, not reality. (True; moderate; p. 52)
Presently, there is no method for analyzing or assessing organizational culture. (False; moderate; p. 52)
Strong cultures have more influence on employees than weak ones. (True; moderate; p. 53)
An increasing body of evidence suggests that strong cultures are associated with high organizational performance.
(True; easy; p. 53)
Compensation is mentioned in the textbook as a dimension of organizational culture. (False; moderate;
Most organizations have very weak cultures. (False; moderate; p. 53)
An organization’s founder has little influence on its culture. (False; moderate; p. 54)
Rituals are repetitive sequences of activities that express and reinforce the key values of an organization.
(True; moderate; p. 57)
Organizational stories typically contain a narrative of significant events or people. (True; moderate; p. 56)
Employee stock options are mentioned in the textbook as an example of a material symbol. (FALSE;
The link between values and managerial behavior is fairly straightforward. (True; moderate; p. 59)
THE ENVIRONMENT
The part of the environment directly related to achievement of an organization’s goals is the specific environment.
(True; moderate; p. 64)
The general environment refers to everything inside the organization. (False; easy; p. 66)
Environmental uncertainty can be divided into two dimensions: degree of trust and degree of integration.
(False; difficult; p. 69)
Because certainty is a threat to an organization’s effectiveness, managers try to minimize it. (False;
The term suppliers includes providers of financial and labor inputs. (True; moderate; p. 65)
To a national network such as NBC, your home VCR is considered a competitor. (True; moderate; p. 66)

Industry conditions are an example of an organization’s general environment. (False; moderate; p. 66)
Economic conditions are part of the organization’s specific environment. (False; moderate; p. 66)
THE MANAGER: OMNIPOTENT OR SYMBOLIC?
What are the two views of managerial impact on the success or failure of the organization?
omnipotent and symbolic omnipotent and reflective symbolic and interactive reflective and interactive
(a; moderate; p. 50)
The omnipotent view of management means .
the top manager is the only person in charge
managers are directly responsible for an organization’s success or failure
that there is only one boss in the organization, and she or he is responsible for delegating orders
managers have little or no responsibility for an organization’s success or failure (b; easy; p. 50)
The view of management is consistent with the stereotypical picture of the take-charge business executive who
can overcome any obstacle in carrying out the organization’s objectives.
Omnipotent symbolic functional systems (a; hard; p. 50)
The symbolic view of management means .
anagers are directly responsible for an organization’s success or failure
managers have little or no responsibility for an organization’s success or failure
that external forces are directly responsible for an organization’s success or failure
the employees are directly responsible for an organization’s success or failure (c; easy; p. 50)
Internal constraints that restrict a manager’s decision options .
exist within every organization do not exist, as all managers can decide as they please
exists only to the extent that upper management imposes them
exist only to the extent that followers won’t do as they are told (a; easy; p. 51)
The current dominant assumption in management theory .
suggests a balanced view of managers as symbolic and omnipotent
suggests managers are symbolic suggests managers are omnipotent
is that both the symbolic and omnipotent views are fading (c; moderate; p. 50)
Which of the following views of managerial impact is useful in explaining the high turnover among college and
professional sports coaches who can be considered the “managers” of their teams?
symbolic omnipotent generalist autocratic (b; moderate; p. 50)
According to the symbolic view, managers have a(n) effect on substantive organizational outcomes.
Substantial moderate limited unlimited (c; moderate; p. 57)
Managers operate within the constraints imposed by .
government at the federal and state level the employees of the organization
the organization’s culture and environment the organization’s board of directors (c; moderate; p. 51)
A manager may be able to expand their area of discretion by .
telling the employees what to do changing and influencing their organization’s culture and environment
electing new government officials at the federal and state level changing employers and thus their boss
(b; moderate; p. 51)
that restrict a manager’s decision options exist within every organization.
Internal constraints External constraints Organizational external environments
Organizational environment changes (a; hard; p. 51)
Organizational culture is similar to an individual’s .
skills personality motivation ability (b; easy; p. 52)

An organization’s culture is .
represented in organizational meetings by the top manager of the organization
represented by a common perception held by interest groups that watch the organization
represented by a common perception held by the organization’s members
changed when the organization is purchased by new owners (c; hard; p. 52)
Organizational culture is concerned with how members perceive the organization not whether they
.
like it like their peers like their boss like their customers (a; easy; p. 52)
Strong cultures .
are found in organizations with strong leaders
have a minimal influence on the employee when she or he is making decisions
can be found in all organizations that exist have a greater influence on employees than do weak cultures
(d; moderate; p. 53)
Employees in organizations with strong cultures .
are more committed to their organization are more likely to leave the organization than stay
are more willing to perform illegal activities are more likely to follow directives from peers (A;
Which of the following phrases is associated with the definition of organizational culture?
individual response shared meaning diversity of thought explicit directions (b; easy; p. 52)
Which of the following is not mentioned in the textbook as a dimension of organizational culture?
attention to detail people orientation compensation aggressiveness (c; moderate; p. 52)
Sony Corporation’s focus on product innovation is an example of which of the following dimensions of
organizational culture?
attention to detail people orientation outcome orientation aggressiveness (c; moderate; p. 53)
Corporate are repetitive sequences of activities that express and reinforce the values of the organization, what
goals are most important, which people are important, and which are expendable.
Languages rituals symbols ceremonies (b; easy; p. 57)
The most significant ways that culture is transmitted to employees consist of .
rituals, tales of woe, symbols, and language symbols, rituals, language, and systems
stories, rituals, symbols, and language language, stories, rituals, and rewards (c; moderate; p. 56)
When employees at Microsoft use words such as: work judo, eating your own dog food, and flat food, they are
using organizational .
Languages ritual symbols ceremonies (a; easy; p. 57)
Most organizations have cultures.
very weak weak to moderate moderate moderate to strong (d; moderate; p. 53)
The original source of an organization’s culture usually .
is shared among the first workers hired into the organization
is formulated by the board of directors when the organization is formed
identifies what the organization is successful doing
reflects the vision or mission of the organization’s founder (d; moderate; p. 53)
Organizational typically contain(s) a narrative of significant events or people.
Stories rituals charts material symbols (a; moderate; p. 56)
All of the following are mentioned in the textbook as examples of material symbols except .
dress attire size of offices employee stock options reserved parking spaces for certain employees
(c; moderate; p. 57)
The link between organizational values and managerial behavior is .
Uncertain fairly straightforward loose and difficult to see unimportant (b; moderate; p. 59)
By learning organizational language, member’s .
can communicate with the stockholders of the organization
know that the boss will be promoting them to greater responsibility
attest to their acceptance of the culture and their willingness to help preserve the culture
can share material symbols with other members (c; hard; p. 57)
An organization’s culture .
constrains what managers can do and are rarely explicit
seldom constrains what managers can, cannot do, and are rarely explicit
seldom constrains what managers can, cannot do, and are rarely implicit
constrains what managers can, cannot do, and are rarely explicit (d; hard; p. 52)
External environment refers to .
institutions outside the organization that affect the organization’s performance
forces and institutions outside the organization that potentially can affect the organization’s performance
forces and institutions inside the organization that affect the organization’s performance
forces inside the organization that affect the organization’s performance (b; hard; p. 64)
According to the textbook, the environment includes those constituencies that have a direct and immediate
impact on managers’ decisions and actions and are directly relevant to the achievement of the organization’s goals.
General specific secondary forward (b; moderate; p. 64)
An organization’s specific environment .
is unique and changes with conditions is the same regardless of the organization’s age
is determined by the top level of management is quantified to determine its existence (a; moderate; p. 64)
The specific environment of organizations consists of constituencies that have a direct impact on managers’
decisions and actions. The main constituencies are made up of customers, suppliers, competitors, and .
Legislators pressure groups employees lawyers (b; moderate; p. 64)
Which of the following is not an example of a constituency that makes up the specific environment?
Customers sociocultural factors suppliers competitors (b; moderate; p. 64)
When you think of an organization’s suppliers, you .
know that they are the main customers of the organization
typically think of governments that pass the laws the organization must follow
know that they are located close to the buying organization
typically think in terms of organizations that provide materials and equipment (d; moderate; p. 65)
Managers seek to ensure a steady .
cash flow from stockholders into the organization flow of needed inputs at the lowest price available
flow of customers at the company’s outlet store flow of suppliers to keep the competition among suppliers at a peak
(b; moderate; p. 65)
The Internet is having an impact on who an organization’s competitors are because it has
defined the common markets for the organizations made the products they sell invaluable to the customer
virtually eliminated the need for shopping malls virtually eliminated the geographic boundaries (D)
For a company such as Walt Disney World in Florida, a bank would be an example of what kind of factor in their
specific environment?
Competitor supplier special-interest group government agency (b; moderate; p. 66)
Which of the following is not an example of a specific environmental factor?
Suppliers political conditions governmental agencies B and C are correct. (d; moderate; p. 65)

For an organization such as a hospital that needs nurses, the labor union and the local labor market are examples of
what kinds of factors in their specific environment?
special-interest group and supplier customer and special-interest group both are examples of suppliers
government agency and competitor (c; difficult; p. 65)
Typically, the specific organizational environment includes which of the following?
economic factors political conditions technological factors competitors (d; moderate; p. 64)
United Parcel Service represents what factor to the U.S. Postal Service in its specific environment?
Competitor supplier customer government agency (a; moderate; p. 65)
The general economic condition consist of all of the following except .
legislation recently passed by Congress interest rates change in disposable income
stock market fluctuations (a; moderate; p. 66)
Sociocultural conditions consist of .
demographic profiles of the organization’s suppliers legal issues as determined by court decisions
the level of unemployment and real economic incomes of workers
changing expectations of the society in which they operate (d; hard; p. 67)
To a national network such as NBC, your home VCR is considered a .
Customer supplier special-interest group competitor (d; moderate; p. 66)
According to the textbook, is having an impact on determining an organization’s
competitors because it has virtually eliminated the geographic boundaries.
local area network the intranet the Internet video conferencing (c; easy; p. 66)
Ralph Nader’s Center for Responsive Law is an example of what factor in the specific external environment?
Competitor pressure group customer government agency (b; moderate; p. 66)
Typically, the general organizational environment includes which of the following?
political conditions issues directly relevant to achieving organizational goals stakeholders
suppliers (a; moderate; p. 66)
Compared to the specific environment, which of the following is an accurate statement about the general
environment of an organization?
It has less impact on the organization’s operations. It has more impact on the organization’s operations.
It has about the same impact on an organization’s operations. It is the concern of upper management.
(a; difficult; p. 66)
Which of the following is not an example of an organization’s general environment?
economic conditions political conditions social conditions industry conditions (d; moderate; p. 66)
Interest rates, inflation rates, and stock market indexes are all examples of what factor in an organization’s general
environment?
Economic political social technological (a; moderate; p. 66)
The Americans with Disabilities Act of 1990 is an example of a .
sociolegal condition political/legal condition political/sociological condition
sociocultural condition (b; moderate; p. 66)
A downturn in the contributions from the public to the United Way charity is an example of the impact from what
factor in its general environment?
Political social technological economic (d; moderate; p. 66)
According to the textbook, which of the following groups includes individuals who were born between the years
1946–1964? the Depression group the World War II group the baby boomers Generation X
(c; difficult; p. 58)

Which factor has been the most rapidly changing component in an organization’s general environment in the past
quarter-century?
Global economic social technological (d; moderate; p. 68)
The enhanced speed and quality of managerial decision making due to an integrated office system is an example of
the impact of which general environmental factor?
Global social political technological (d; moderate; p. 68)
Which of the following are the two dimensions of environmental uncertainty?
degree of change and degree of complexity degree of change and degree of volume
degree of complexity and degree of impact degree of impact and degree of timing (a; moderate; p. 60)
We call it a environment if the components in an organization’s environment change frequently.
Moving diverse dynamic difficult (c; hard; p. 69)
Managers try to minimize because it is a threat to an organization’s effectiveness.
product development uncertainty price charges the number of suppliers (b; moderate; p. 69)
 are any constituencies in the organization’s external environment that are affected by the organization’s
decisions and actions.
Stockholders Pressure groups Suppliers Stakeholders (d; moderate; p. 71)
According to the textbook, refers to the number of components in an organization’s environment and the extent
of the knowledge that the organization has about those components.
degree of stability openness degree of complexity change (c; moderate; p. 70)
The first step of managing external stakeholder relationships is to identify who the stakeholders are. The second
step is to .
determine what specific approach they should use to manage the stakeholder relationship
determine what the courts might do when stakeholder files a claim against the organization
determine what particular interests or concerns these stakeholders might have
determine how many stakeholders there are in each stakeholder group
(c; hard; p. 71)
If you were talking with Todd and asked him what the term culture meant, he would reply that, basically, it is .
the formal rules of an organization the nationality of the workers in the company
a system of shared meaning a system that reflects diversity and respect for differences (c; easy; p. 52)
Todd is concerned with the degree to which managers focus on results or outcomes rather than techniques and the
processes used to achieve those outcomes. He is concerned with .
Stability aggressiveness team orientation outcome orientation (d; moderate; p. 53)
Todd notices that management is very concerned with the effects of outcomes on people within the organization.
This is referred to as .
Stability aggressiveness team orientation people orientation (d; moderate; p. 53)
Todd is assessing the organization’s , the degree to which organizational activities emphasize maintaining
the status quo in contrast to growth.
Stability aggressiveness team orientation outcome orientation (a; moderate; p. 52)
Todd has been learning the seven dimensions of organizational culture. Which of the following is not one of those
seven dimensions?
Stability aggressiveness member orientation outcome orientation (c; moderate; p. 52)

Mary asked employees if they knew what constituted “good employee behavior.” She found that very few
understood, and most had a variety of ideas. This is one indication that her company .
has a strong culture has a weak culture has no culture must have high turnover (b; moderate; p. 53)
Mary also found out that in order to build a strong new culture, she should do all but which of the following?
utilize their recruitment efforts develop socialization practices to build culture
encourage a high turnover rate have management make explicit what is valued in the organization
(c; difficult; p. 53)
Mary was surprised to find that most organizational culture strengths are .
Weak weak to moderate moderate to strong strong (c; moderate; p. 53)
Mary has also been asked, as part of the cultural change, to build on the belief that managers are directly
responsible for the organization’s success or failure and not forces outside their control. This would be consistent
with an organizational culture that has a(n) view of management.
Traditional omnipotent standard symbolic (b; moderate; p. 50)
The new view of management change for the new culture will be difficult because, in the past, success has been
viewed as being outside management’s control, a view known as .
Traditional omnipotent standard symbolic (d; moderate; p. 50)
As a manager, if you were working in an industry that was dependent on Internet connections and the many new
customers vying for the same space, this would be an example of what kind of environment?
General static stable dynamic (d; moderate; p. 69)
Political conditions, which include attitudes that officials hold toward specific industries, fall within an
organization’s environment.
Global internal competitive general (d; moderate; p. 69)
The changes in the presidency and congress compose what for your organization?
general environment specific environment pressure group
interest group (a; moderate; p. 66)
The change in how the customer wants your product to look in design is an example of what?
general environment specific environment
pressure group interest group (b; hard; p. 64)
To have the product made in the newly discovered plastics used in the construction of your product is an example
of which of the following?
economic condition political/legal condition
sociocultural condition technological condition (d; moderate; p. 68)
When looking at the introduction of the new product into particular market niche, this niche is which of the
following to the organization as a whole?
general environment specific environment political/legal condition
sociocultural condition (b; hard; p. 64)
The research and development department is acting on the common perception held by that department known as
what?
omnipotent view of management organizational culture
internal constraint external constraint (b; hard; p. 52)
The marketing staff’s resistance to introducing the new medical product is which of the following for the marketing
manager?
omnipotent view of management organizational culture
external constraint internal constraint (d; moderate; p. 51)

If the marketing department staff had agreed with the research and development staff, then it could be said that the
organization probably possesses what?
strong culture weak culture specific internal environment specific internal constraint (a; easy; p. 53)

Imagine you are the manager of a real estate office trying to maximize profits. If the mortgage interest rates
increase, this would be an example of changing in your general environment.
economic conditions political conditions competition social conditions (a; moderate; p. 66)

Mr. Taylor finds out how critical each stakeholder is to the organization’s decisions and actions. This is the
first step second step third step final step (c; easy; p. 71)
Mr. Taylor identifies who the organizations’ stakeholders are. This is the .
first step second step third step final step (a; easy; p. 71)
Mr. Taylor decides how to manage the external stakeholder relationships. This is the .
first step second step third step final step (d; easy; p. 71)