Final Examination Study Guide

MGT/230 Version 1

MGT/230 Final Examination Study Guide

This study guide will prepare you for the Final Examination you will complete in Week Five. It contains
practice questions, which are related to each weeks objectives. In addition, refer to each weeks readings
and your student guide as study references for the Final Examination.
Week One: Functions of Management
Objective: Define the four functions of management.
1. ______ is the process of working with people and resources to accomplish organizational goals.
a. Planning
b. Management
c. Controlling
d. Decision making
Objective: Define the four functions of management.
2. The key management functions include
a. planning, leading, controlling, and organizing
b. marketing, finance, accounting, and production
c. planning, operations, labor, and contracting
d. marketing, management, finance, and accounting
Objective: Explain how internal and external factors affect the four functions of management.
3. Organizations that are affected by and that affect their environment are called
a. inputs
b. outputs
c. open systems
d. closed systems
Objective: Explain how internal and external factors affect the four functions of management.
4. Amy, a new manager at Delectable Baked Goods, has been asked to focus on the competitive
environment of the organization. Which of the following factors should she focus on?
a. Government policies
b. Demographics
c. Suppliers
d. Technology
Objective: Identify the steps in the decision-making process.
5. Characteristics of managerial decisions include which of the following?
a. Success
b. Certainty
c. Convention
d. Lack of structure
Objective: Identify the steps in the decision-making process.
6. Which of the following is a step in the decision-making process?
a. Resolving and reducing conflict
b. Using and evaluating the organization structure
c. Thinking about the future
d. Evaluating alternatives

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Week Two: Planning as a Management Function

Objective: Describe the planning function of management.
7. Which of the following describes effective plans in organizations?
a. Set and firm
b. Provides the framework, focus, and direction required for a meaningful effort
c. Formal and operational
d. Organizational improvements are best accomplished in the moment without a plan
Objective: Describe the planning function of management.
8. What is the first step in the formal planning process?
a. Situational analysis
b. Monitor and control
c. Implementation
d. Goal and plan evaluation
Objective: Analyze various factors that influence strategic, tactical, operational, and contingency
planning.
9. What are the three levels of planning?
a. strategic, business, and operational
b. strategic, synergistic, and operational
c. strategic, tactical, and operational
d. visionary, business, and detailed
Objective: Analyze various factors that influence strategic, tactical, operational, and contingency
planning.
10. Typical operational planning might focus on
a. production scheduling and training of personnel
b. profit levels, share value, growth, return on investment
c. advertising expenditures, sales levels, product use innovations, customer feedback
d. absenteeism levels, benefit usage and value, human resource utilization, compliance with civil
rights laws
Objective: Analyze the effect that legal issues, ethics, and corporate social responsibility have on
management planning.
11. Two managers at RW Oil, Inc. are discussing the latest e-mail they received from headquarters.
Jimmy Joe's reaction is simply to say, "All this thing needs to say, as far as I'm concerned, is if you
don't get busted for it, you're innocent. If you do get caught, you pay the price." His friend, Eddie, has
a very different idea. His response is, "I believe, however, that every individual should take personal
responsibility for his or her behavior. I would like for our organization to integrate that idea into
everything we do here at work." The e-mail they are reading concerns how decisions are evaluated
on the basis of right and wrong at their company.
The assessment of how decisions are evaluated in the company refers to the organization's
a. social responsibility
b. ethical climate
c. ethical perspective
d. corporate culture
Objective: Analyze the effect that legal issues, ethics, and corporate social responsibility have on
management planning.

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12. Your organization faces an ethical question. There has been a problem with your accounting process
that has resulted in lower profits being reported than were actually earned. You are attending a
meeting where senior management is deciding how to handle the situation. The people at the table
have varying views of what action to take and why. John wants to report the error immediately
because he believes that it is the right thing to do and that will keep them all out of jail. Bruce wants to
report the error because it is the honest thing to do. After hearing his colleagues' opinions, Carlos
says he wants to report the error as well because he believes the group is right.
Which ethical system is Bruce using for his decision-making process?
a. Universalism
b. Egoism
c. Utilitarianism
d. Virtue ethics
Week Three: Organizing as a Management Function
Objective: Describe the organizing function of management.
13. Which of the following depicts the positions in a firm and how they are arranged?
a. Departmentalization
b. Division of labor
c. Organization chart
d. Value chain
Objective: Describe the organizing function of management.
14. The assignment of different tasks to different people or groups in the organization is the
a. strategic plan
b. organization structure
c. division of labor
d. value chain
Objective: Identify various types of organizational structures.
15. An organization in which high-level executives make most decisions and pass them down to lower
levels for implementation is a
a. matrix organization
b. divisional organization
c. functional organization
d. centralized organization
Objective: Identify various types of organizational structures.
16. A __________ type of organization would cluster jobs according to the following departments:
marketing, finance, operations, accounting, and human resources.
a. geographical
b. matrix
c. functional
d. customer
Objective: Explain the relationship between organizational functions and organizational structure.
17. Hot Tamales, Inc., began business by making hot sauce specifically targeted to the Hispanic market.
The company soon expanded into making various types of hot sauce. They now manufacture and
distribute sauces, kitchen equipment, and specialty spices worldwide. They are departmentalized by
sauces, kitchen equipment, and spices. Hot Tamales, Inc. uses which form of departmentalization?
a. Geographic
b. Functional

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c. Customer
d. Product
Objective: Explain the relationship between organizational functions and organizational structure.
18. Which type of divisional structure requires diligent attention to managing decentralization and
delegation?
a. Functional
b. Product
c. Customer
d. Geographic
Week Four: Leading as a Management Function
Objective: Differentiate between management and leadership.
19. A leader is
a. someone with authority over others
b. the top level manager in an organization or business
c. someone who influences others to attain goals
d. someone well-respected by others
Objective: Differentiate between management and leadership.
20. A leadership perspective that focuses on individual leaders and attempts to determine the personal
characteristics that leaders share is referred to as the
a. Behavioral approach
b. Leadership Grid
c. Leader-Member Exchange (LMX) theory
d. Trait approach
Objective: Describe the role and responsibilities of leaders in creating and maintaining a healthy
organizational culture.
21. Leaders who develop their repertoire by living, working or traveling in other cultures, and therefore
are able to help disparate groups reconcile conflicting value systems are known as
a. lateral leaders
b. authentic leaders
c. bridge leaders
d. servant-leaders
Objective: Describe the role and responsibilities of leaders in creating and maintaining a healthy
organizational culture.
22. Matt, Renee, and Anders were on a team together at their engineering company. Though Matt had
the most experience of the three, he did not always assume the leadership role. Some projects fell
into the specialized areas of the other team members, so Matt moved the leadership role around the
group as appropriate.
Matt's style would be classified as
a. lateral leadership
b. authentic leadership
c. shared leadership
d. bridge leadership
Objective: Explain considerations of leading a diverse workforce.

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23. The term used to refer to all kinds of differences, including religious affiliation, age, disability status,
economic class and lifestyle in addition to gender, race, ethnicity, and nationality is:
a. diversity
b. dimensions
c. selection differences
d. personal categories
Objective: Explain considerations of leading a diverse workforce.
24. Riya has recently been denied a promotion. This is the third time she has been turned down for
promotion despite excellent performance reviews. Her manager assures her that she was qualified for
the promotion but that "that's just the way things go." After this last disappointment, Riya took a good
hard look at her company. She found that only two women or minority candidates have been
promoted to upper management positions. Riya appears to have:
a. a diversity-oriented employer
b. a lack of communication skills
c. hit the glass ceiling
d. a need to brush up on her skills
Objective: Explain the relationship between setting effective expectations and organizational
performance.
25. Behavior that provides guidance, support and corrective feedback for the day-to-day activities of work
unit members is known as:
a. strategic leadership
b. supervisory leadership
c. organizational leadership
d. performance leadership
Objective: Explain the relationship between setting effective expectations and organizational
performance.
26. Which of the following statements regarding "vision" is accurate?
a. Strong leaders often do not develop a clear vision
b. Vision properly focuses on performance and day-to-day survival
c. A person can develop a vision for any task
d. A vision is optional for effective leadership
Week Five: Controlling as a Management Function
Objective: Identify various control mechanisms.
27. Owners from two businesses have asked you which type of control system they should use. To help
you make your decision, they have each provided a brief description of their organization. Alpha
Omega, Inc. is a large corporation built in the 1950s. They produce chemical concentrates for
industrial cleaning. Their organization uses a strict set of rules and regulations with their workforce.
They have the ability to track a large amount of data using statistical techniques. Mid-Atlantic Health
is a regional medical center. They want to use a control system that will allow them to tie pricing of
services and profits to specific services in the medical center.
Which control system should Alpha Omega, Inc., use? Assume they will not change their current
method of operation.
a. Bureaucratic
b. Market
c. Clan
d. Concurrent
Objective: Identify various control mechanisms.

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28. Owners from two businesses have asked you which type of control system they should use. To help
you make your decision, they have each provided a brief description of their organization. Alpha
Omega, Inc. is a large corporation built in the 1950s. They produce chemical concentrates for
industrial cleaning. Their organization uses a strict set of rules and regulations with their workforce.
They have the ability to track a large amount of data using statistical techniques. Mid-Atlantic Health
is a regional medical center. They want to use a control system that will allow them to tie pricing of
services and profits to specific services in the medical center.
Which control system should Mid-Atlantic Health use? Assume they will not change their current
method of operation.
a. Bureaucratic
b. Market
c. Clan
d. Feedforward
Objective: Apply management functions to achieve business goals.
29. Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her
job as a manager and how he or she spends time. Using the description below, which function of
management is the CEO most likely describing in this example?
"Recently, I spent a great deal of time looking at how to define jobs and group jobs together to most
efficiently utilize the employees in those jobs. Other times, my focus is more towards financial
resources."
a. Planning
b. Organizing
c. Leading
d. Decision making
Objective: Apply management functions to achieve business goals.
30. Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her
job as a manager and how he or she spends time. Using the description below, which function of
management is the CEO most likely describing in this example?
"My days are filled with opportunities to ask if we are meeting our goalswondering if things are
going as we plannedand making adjustments where needed."
a. Planning
b. Leading
c. Controlling
d. Decision making

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