2024/2025 MGMT Final Practice Questions with 100% Correct Verified Answers Graded A, Exams of Business Systems

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2024/2025 MGMT Final Practice Questions with 100%

Correct Verified Answers Graded A

Which of the following statements is true of organizational strategy in terms of structure and design? a. An organization's execution is not as significant as it's strategy to enable long-term success. b. Competitors often easily imitate another firm's unique organizational configuration that drives excellent implementation and performance. c. Companies implement their strategies by analyzing the organizational culture, human capital, and measurement. d. It is not possible for competitors to steal or adopt another company's strategic perspective. C _____ is defined as the pattern of organizational roles, relationships, and procedures that enable coordinated action among employees. a. Organizational structure b. Value chain c. Synergy d. Organizational culture A Which of the following statements is true of division of labor? a. Horizontal specialization refers to how much an employee creates, executes, and administers activities in a certain area of the firm. b. The repetitive nature of specialized jobs lends itself to quick and efficient training of new resources. c. Extreme job specialization tend to increase the level of job satisfaction among workers. d. Vertical specialization refers to the breadth of activities that are performed in a certain job. B Thomas, the head of the marketing department in an organization, has structured his department in such a way that the roles and responsibilities of his workers are loosely defined. Moreover, he does not exert too much control over his workers and encourages two-way communication. His workers

tend to be highly satisfied with their jobs when compared to those in the finance department, headed by John who exerts more control. From this scenario it can be inferred that Thomas has adopted a _____ mechanism for coordinating. a. bureaucratic b. authoritative c. centralized d. behavioristic D Which of the following statements is true of the bureaucratic approach? a. Bureaucracies can withstand a diverse workforce and high turnover. b. Bureaucracies are not suitable for large, complex organizations. c. Bureaucracies are often considered the most inefficient methods of control. d. Bureaucracies are more suited to creative and innovative environments. A Which of the following firms is most likely to benefit from the clan approach? a. A firm with highly uncertain working conditions b. A firm with work activities that can be easily measured c. A firm which lacks diverse working styles d. A firm operating in a price-competitive industry A Which of the following firms is most likely to benefit from a bureaucratic approach? a. A firm with constantly changing, dynamic markets b. A start-up firm with less complexity c. A firm involving creativity and innovation d. A firm with high turnover and a diverse workforce D In a functional structure: a. a firm groups diverse functions into separate divisions. b. a firm is organized in terms of the main activities that need to be performed.

c. a firm gives equal authority to both divisional and functional managers. d. a firm categorizes its employees based on their performance and commitment. B Which of the following terms refers to a structure where both divisional and functional managers have equal authority in the organization? a. Functional structure b. Divisional structure c. Matrix structure d. Network structure C Which of the following statements about the divisional structure is true? a. Coordination among functions in a divisional structure is less fluid than it is in a functional structure. b. It allows for greater accountability because each division is a separate self-contained entity. c. The general manager of a functional form has a broader purpose than the general manager in the divisional form. d. Employees tend to identify more with their function than with their division. B The factor that distinguishes functional organizational structure from divisional is that: a. a functional structure is organized around the outputs a firm produces. b. a functional structure is best suited to deal with environmental change. c. a functional structure groups diverse functions into separate divisions. d. a functional structure is organized in terms of main activities performed. D Which of the following is a weakness of the matrix structure? a. In matrix structure, the divisional managers have more authority than the functional managers, which causes an imbalance of power. b. A manager cannot use a matrix structure when resources need to be shared and optimized across divisions and within functions. c. When a firm's internal interrelationships are complex, it is not possible for managers to adopt a

matrix structure. d. It often creates confusing and inefficient scenarios for managers working in a functional group as well as across divisions. D Which of the following statements is an advantage of a network structure? a. It is quite inexpensive for virtual teams to use communication technology. b. It enables a firm adapt to a change in the marketplace. c. Virtual teams often require very less coordination. d. It promotes greater accountability than divisional structure. B In a _____ structure, "knowledge workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization. a. functional b. divisional c. matrix d. network D Which of the following is a disadvantage of a divisional structure? a. It is not suited to competitive situations where coordinated action is needed for innovation. b. This structure does not allow for much accountability. c. It is not suited to business environments marked by high degrees of uncertainty. d. Core functions are duplicated, preventing the development of economies of scale. D Fine Gadgets, a gadgets manufacturing company, has an organizational structure where the employees have to strictly follow rules and regulations stated by the management. Moreover, only the top management is allowed to make key decisions regarding organizational activities. Fine Gadgets is an example of a _____ organization. a. decentralized b. global

c. diversified d. centralized D A _____ structure is an organizational structure where key decisions are made at all levels of the firm, not mandated from the top. a. decentralized b. multinational c. centralized d. bureaucratic A The process by which firms impact the nature of their overarching industrial environment and alter their organization in response to evolving contextual factors is called _____. a. business process reengineering b. vertical specialization c. mutual adaptation d. horizontal specialization C Which of the following statements is true of the organizational design and the life-cycle of a firm? a. Once a firm reaches maturity, the emphasis on coordination generally increases. b. The nature of leadership should remain stable as the firm keeps evolving. c. As a firm matures, it tends to emphasize division of labor. d. Start-up firms are characterized by more job specialization. C Which of the following terms refers to a functional unit that operates according to its own rules and guidelines and does not openly share information with other units? a. Artifact b. Silo c. Claim value d. Synergy

B

Of the four activities that make a firm customer-centric, connection involves: a. helping employees at the firm develop the right skills needed to better serve customers. b. creating structural mechanisms at the firm that allow workers to organize their activities to focus more exclusively on creating value for customers. c. developing relationships with parties outside the firm to increase the value of the firm's offerings. d. using informal methods such as culture and incentives to encourage people in the organization to come together in the spirit of serving customers. C Of the four activities that make a firm customer-centric, coordination involves: a. using informal methods such as culture and incentives to encourage people in the organization to come together in the spirit of serving customers. b. developing relationship with parties outside a firm to increase the value of the firm's offerings. c. helping employees at a firm develop the right skills needed to better serve customers. d. creating structural mechanisms at a firm that allow workers to organize their activities to focus more exclusively on creating value for customers. D The management of an organization is in the process of reorganizing the firm's activities with a more customer-centric focus. They are mainly focused on activities that involve helping and training employees improve their skills needed to better serve their customers. Identify the customer-centric activity used by the management. a. Capability development b. Coordination c. Cooperation d. Connection A Of the four activities that make a firm customer-centric, cooperation involves: a. helping employees at a firm develop the right skills needed to better serve customers. b. creating structural mechanisms at the firm that allow workers to organize their activities to focus

more exclusively on creating value for customers. c. developing relationship with parties outside the firm to increase the value of the firm's offerings. d. using informal methods such as incentives to encourage people in the organization to come together in the spirit of serving customers. D T/F: Competitors can easily imitate a firm's unique organizational configuration that drives excellent implementation and performance. F T/F: As firms expand and grow in complexity, they reorganize into a functional structure. F T/F: One of the most important benefits of the functional structure is the efficiency it creates. T T/F: The key advantage of the matrix structure is that it creates clear and efficient scenarios for managers working in a functional group as well as across divisions. F T/F: Vertical specialization refers to the breadth of activities that are performed in a certain job. F T/F: Behaviorists are those who support a more open organizational structure where roles and responsibilities are loosely defined. T T/F: Along the horizontal dimension of decision rights, a manager must decide whether decisions are made in a centralized or decentralized manner. F T/F: A key component of a new manager's job is to understand the informal structure of the organization.

T

T/F: Changes in work practices or informal structures tend to result in greater efficiency. T T/F: Connection involves developing relationships with parties outside a firm to increase the value of the firm's offerings. T An organization's _____ defines how people think, feel, and act and it moves at an almost subconscious level. a. structure b. design c. culture d. strategy C Which of the following is a characteristic of an organization's culture? a. Culture is unchangeable b. It is unrelated to performance c. Culture is dynamic d. It can be easily copied by competitors C Which of the following statements is true of the levels of organizational culture? a. Assumptions are deeply embedded in an organization's culture. b. It is quite difficult to note the artifacts present in an organization. c. Assumptions are the meanings that members of an organization attach to artifacts. d. Values are visible organizational structures, processes, and languages. A Which of the following refers to an organization's assumptions? a. Aspects deemed important by members of an organization b. Relational factors between an organization's culture and its performance

c. The underlying essence of why members of an organization act as they do d. Day-to-day behaviors that can be observed C Which of the following levels of organizational culture refers to the visible organizational structures, processes, and languages? a. Artifacts b. Values c. Assumptions d. Beliefs A _____ refer to the meanings that members of an organization attach to visible aspects of a firm. a. Artifacts b. Values and beliefs c. Assumptions d. Objectives B Which of the following best describes an organization's artifacts? a. Day-to-day behaviors that can be observed b. The underlying essence of why members of an organization act as they do c. Relational factors between an organization's culture and its performance d. Aspects deemed important by members of an organization A Which of the following is a source from which a firm's culture develops? a. The employees' skill set b. The suppliers and customers c. The organization's competitors d. The founder of the organization D

Which of the following statements is true of the role of founders in influencing culture? a. The founders take the least risk and therefore do not feel as much anxiety as their employees. b. In allowing values to trump economics, founders tend to have a weak influence on the company's culture. c. A founder cannot make any risky decisions as he is required to account to everyone in the organization. d. Founders are uniquely situated to be innovative and to exemplify innovation to their employees. D Which of the following aspects of a leader's role in relation to culture is deemed critically important to an organization's success? a. Acquire more companies and adopt all elements of the acquired company's weak culture b. Reward employees and managers with pay based on commitment and continue raising the bar c. Empower employees to make independent decisions and to find ways to improve operations d. Inspire managers and employees to work as they wish in an attempt to reduce their job related stress C _____ directly impact culture in the manner in which they encounter big problems, solve those problems, and see the effects of their solutions. a. Suppliers b. Competitors c. Customers d. Teams D Which of the following evolves over three stages—from compliance to identification to internalization? a. Internal integration b. Organizational commitment c. Cultural socialization d. External adaptation

B

The process of understanding how work gets done and how individuals should interact is called _____. a. socialization b. internalization c. identification d. adaptation A Which of the following helps organizations to socialize employees? a. The intermediaries used to reach customers b. Role modeling, leader examples, and coaching c. Technologies used in manufacturing a firm's product d. Employee characteristics such as age and experience B The elements that constitute organizational commitment are: a. Artifacts, beliefs and values, and assumptions b. Compliance, identification, and internalization c. Job descriptions, strategic planning, and socialization d. Vision, mission and objectives B Which of the following is a disadvantage of a strong culture? a. A strong culture seldom influences an organization's performance. b. A strong culture tends to be difficult to change. c. In a strong culture, the goals are unclear. d. A strong culture requires more coordination and monitoring. B Which of the following is an advantage of a strong culture? a. A strong culture has been linked to better levels of performance. b. Strong cultures increase performance even in turbulent environments.

c. Organizations with strong cultures only encourage ethical behavior. d. It is a simple and easy task to change the strong culture of an organization. A Which of the following characterizes a weak culture? a. Employees require less coordination and monitoring b. High role clarity c. Allows a company to run more smoothly and quickly d. No agreement on the firm's values D Which of the following statements about strong cultures is true? a. Strong cultures often result in greater role ambiguity. b. Strong cultures allow a company to run more smoothly and quickly. c. Strong cultures lead to decreased performance in stable environments. d. In strong cultures, there are low levels of agreement among employees. B Which of the following is the best example of an organization with a strong culture? a. TechPark is a company characterized by low levels of agreement among employees about what is valued in the organization. b. The employees of Z-Gadgets, a manufacturing company, experience role ambiguity and therefore they require more coordination and monitoring. c. The performance of ElectronicZone tends to fluctuate, wherein, it's good under stable environments and very poor under turbulent environments. d. Z-Furn's organizational culture is very flexible and can be easily changed in response to changing environments. C Which of the following questions should a manager address while acquiring a company in terms of culture? a. Which culture is the best? b. How socialized are the employees?

c. Is culture linked to performance? d. Where are the similarities and differences? D Thomas is the top manager of a firm which is going to acquire another firm in the similar industry. Which of the following should Thomas do after acquiring the company in terms of culture? a. Thomas should preserve those elements of each culture that are essential to the company's well- being. b. Thomas should completely sacrifice his organizational culture and adopt the culture of the acquired company. c. Thomas should encourage employees to follow both cultures in an attempt to avoid any conflict situations. d. Thomas should stick to his own organization's culture regardless of whether the acquired company's culture is efficient or not. A Internal integration refers to: a. how environmental changes impact a firm's strategy. b. how rituals reinforce an organization's culture. c. how stories and myths convey an organization's values. d. how work is accomplished in a firm. D External adaptation refers to: a. how work is accomplished in a firm. b. how ceremonies help to socialize organizational members. c. how environmental changes impact a firm's strategy. d. how an organization's founder influences its culture. C Which of the following statements is true of adapting culture to a new contextual landscape? a. In times of crisis, a company's culture cannot change quickly. b. Culture tends to be a competitive differentiator.

c. External adaptation addresses how work is accomplished in a firm. d. Culture cannot be a strong inhibitor to change. B T/F: It is the culture of the organizational structure that drives performance. T T/F: An appreciation of the company's values helps in deciphering the roots of a company's culture. T T/F: Assumptions are the meanings that members of an organization attach to artifacts. F T/F: Once a behavior has become an assumption, it is even more visible. F T/F: In formal organizations, the backbone of culture generally begins with a founder. T T/F: Over time, the process of cultural socialization can result in a decreased level of commitment to an organization. F T/F: When there is no agreement on what is valued in a firm, firms experience weak cultures. T T/F: Strong cultures lead to increased performance in both stable and turbulent environments. F T/F: A wise manager of an acquiring company should incorporate the company into another in such a way that the culture of the acquired company gets sacrificed. F

T/F: The embedded nature of culture often makes change very difficult even in the face of strong competitive pressures. T Which of the following terms refers to the value that an individual can derive from his or her contacts? a. Social value b. Synergy c. Social capital d. Value chain C _____ refers to the activities associated with developing and managing relationships that are critical to a person's ability to accomplish tasks and develop personally and professionally. a. Networking b. Satisficing c. Motivating d. Interacting A Which of the following networks are considered to be the best? a. Large closed networks with weak relationships b. Small diverse networks with strong relationships c. Small closed networks with strong and weak relationships d. Large diverse networks with strong and weak relationships D Which of the following statements about interpersonal networks is true? a. Interpersonal networks are valuable to the individuals they link but not to the organizations that employ them. b. Interpersonal relationships can be applied to personal but not to business relationships. c. Interpersonal networks are always depicted on a formal organizational chart. d. Interpersonal networks are networks of relationships that develop across functions to accomplish tasks quickly.

D

Which of the following networks best exemplifies an advice network? a. In a restaurant, George welcomes the customers, Jake's team takes the orders, and finally Jim's team serves the customers and conducts financial transactions. b. Pinky couldn't work on her project due to some personal issues. She discussed her issues with Paul, her teammate, and he helped her finish the task on time. c. John, who belongs to the marketing department in an organization often interacts with employees in other departments whenever he finds time to socialize. d. When it comes to solving technical issues, the employees in an organization often get suggestions from Victor who has more technical expertise. D Which of the following networks is the best example of a communication network? a. John, who belongs to the marketing department in an organization often interacts with employees in other departments whenever he finds time to socialize. b. Pinky couldn't work on her project due to some personal issues. She discussed her issues with Paul, her teammate, and he helped her finish the task on time. c. In a restaurant, George welcomes the customers, Jake's team takes the orders, and finally Jim's team serves the customers and conducts financial transactions. d. When it comes to solving technical issues, the employees in an organization often get suggestions from Victor who has more technical expertise. C Which of the following networks is the best example of a trust network? a. When it comes to solving technical issues, the employees in an organization often get suggestions from Victor who has more technical expertise. b. Pinky couldn't work on her project due to some personal issues. She discussed her issues with Paul, her teammate, and he helped her finish the task on time. c. In a restaurant, George welcomes the customers, Jake's team takes the orders, and finally Jim's team serves the customers and conducts financial transactions. d. John who belongs to the marketing department in an organization often interacts with employees in other departments whenever he finds time to socialize.

B

Which of the following statements about communication networks is true? a. Communication networks are used to share sensitive information and support one another in a crisis. b. Examining communication networks can be helpful in identifying some of the gaps in information flow. c. Communication networks involve employees performing tasks by depending on one another at all times. d. Communication networks are seldom used to exchange work-related information. B Which of the following networks allows employees to share sensitive information and support one another in a crisis? a. Trust networks b. Communication networks c. Advice networks d. Diverse networks A Advice networks in organizations allows employees to: a. share sensitive information and support one another in times of crisis. b. get help from others to solve problems and to receive information. c. formally exchange work-related information with others to achieve their goals. d. transfer information from one department to another following standard procedures. B Of the three conceptions of centrality, degree of centrality: a. accounts for how close a person is to all other people in the network through his or her direct and indirect ties. b. accounts for the extent to which people fall between pairs of other people who may be trying to reach each other. c. represents potential control over information and over connections to others that anyone may want

to reach. d. represents the number of contacts to whom a person is connected in a social network. D Which of the following is one of the conceptions of centrality? a. Value b. Range c. Closeness d. Distinctness C Which of the following conceptions of centrality represents potential control over information and over connections to others that anyone may want to reach? a. Degree b. Closeness c. Distance d. Betweenness D The act of leveraging network position to connect people who are not otherwise connected to one another to generate and control information is called _____. a. redundancy b. social loafing c. brokerage d. framing C Which of the following statements about redundant contacts is true? a. These contacts are more helpful when engaging in novel endeavors. b. These contacts provide individuals with the same information. c. These types of networks are also called open networks. d. These contacts do not lead to the same people in the network.

B

Non-redundant contacts: a. involve little exposure outside the network. b. are only useful in working through standardized operations. c. often lead to the same people in the network. d. allow individuals to bridge structural holes. D Individuals who connect their immediate work group with other parts of the company or with groups in other organizations are called _____. a. redundant contacts b. boundary spanners c. peripheral specialists d. network brokers B According to David Krackhardt, the components of strong ties are: a. interaction, affection, and time. b. importance, capability, and personality. c. interest, similarity, and acceptance. d. intimacy, attitude, and knowledge. A Sam was unemployed and looking for a job. None of his close friends could help him as they themselves were unemployed. However, Sam got a good job through James, whom he met a few months ago during travelling. From this scenario, it can be inferred that: a. James belongs to Sam's closed network. b. Sam belongs to James's strong ties. c. James belongs to Sam's weak ties. d. Sam belongs to James's communication network. C

Which of the following statements about the strength of ties is true? a. Weak ties are effective in sharing information and they often provide redundant information. b. Unlike strong ties, weak ties provides individuals with exposure to novel information. c. Trust, larger time commitments, and similar interests are features of weak ties. d. Strong ties serve as bridges and are more likely to link members of dissimilar groups than are weak ones. B Effective networks: a. include a proper balance between the breadth of contacts and the depth or strength of contacts. b. consists of only a few deep contacts that tend to be better sources of high-quality information. c. are a group of non-redundant contacts that provide access to a wide range of potential opportunities. d. include contacts that are connected to one another and tend to recirculate similar insights among themselves. A Which of the following, if true, is one of the six myths that exist about the best ways to build useful networks? a. To build better networks, we must communicate less. b. I already know what is going on in my network. c. We should build a small network. d. Central people should make themselves less accessible. B According to Brian Uzzi and Shannon Dunlap, which of the following is the first step in building a useful internal network? a. Cultivating brokers b. Mapping your network c. Sharing information d. Forging better connections B

Dolly has arranged for a get-together in her house for which she invited all her friends. Most of her friends were meeting the others in the group for the first time. Moreover, they were from diverse backgrounds with differing interests and experiences. Though all were not known to each other, all were known to Dolly. From this description of Dolly, it can be inferred that Dolly is: a. good at forging better connections. b. focusing only on closed networks. c. lacking weak ties in relationships. d. more exposed to redundant contacts. A Which of the following entities allows individuals to develop professional relationships outside work? a. Redundant contacts b. Strong ties c. Networking clubs d. Communication networks C T/F: Social capital is not only beneficial to individuals within organizations but also to those organizations themselves. T T/F: Trust networks often reveal the pattern of linkages between employees who talk about work- related matters on a regular basis. F T/F: Examining communication networks helps in identifying some of the gaps in information flow. T T/F: Of the three conceptions of centrality, betweenness represents the number of contacts to whom a person is connected in a social network. F T/F: A structural hole is the gap that exists between two individuals.

T

T/F: Weak ties are usually formed among similar individuals who are exposed to the same kinds of information. F T/F: Networks characterized by breadth tend to have many non-redundant contacts that provide access to a wide range of potential opportunities. T T/F: To build better networks, we must communicate all the time. F T/F: To build useful networks, managers and leaders should consider promoting less formal social networks in the workplace. T T/F: The first step in building a useful network is to identify information brokers. F Which of the following refers to the "Great Man" theory? a. A theory of leadership that explained leadership by examining the traits and characteristics of renowned leaders of human history b. A theory in which leaders are more effective depending on the favorability of a leadership situation, which is described by leader-member relations and task structure c. A theory of leadership in which leaders treat each member differently, and as a result, develop unique relationships with each member d. A theory of leadership that tries to reveal a set of universal traits and skills that are relevant in all leadership situations A A theory of leadership that tries to reveal a set of universal skills that are relevant in all leadership situations is referred to as the _____ theory of leadership. a. path-goal

b. traits-based c. contingency d. Great Man B Which of the following is one of the most common leadership traits? a. Self-sacrificing nature b. Sense of humor c. Contextual intelligence d. Self-confidence D _____ skills refer to a leader's ability to understand the internal and external environments, use sound reasoning to make decisions, and communicate effectively. a. Research b. Technical c. Financial d. Cognitive D Technical skills of leadership refer to: a. a leader's ability to make decisions with sound reasoning. b. a leader's knowledge about an organization and job-related activities. c. a leader's ability to understand the internal and external environments. d. a leader's ability to interact with others. B John is an organization's marketing lead. He has sound knowledge about the organizational activities and can make effective job-related decisions. However, his team members are unable to achieve sales target that he sets without any delay. His team members complain that John does not respond or even pay attention to their problems and interests. This shows that John lacks _____ skills of leadership. a. cognitive b. interpersonal

c. technical d. intellectual B Which of the following statements is true about leadership skills? a. Interpersonal skills refer to a leader's ability to interact with others. b. Cognitive skills are developed through experience. c. Technical and interpersonal skills are more innate. d. Cognitive skills refer to a leader's knowledge about an organization. A Referring to core values and fundamental beliefs, which of the following refers to a constant factor that drives behavior in variable situations? a. Knowledge b. Cognition c. Character d. Personality C Which of the following is a core benefit of relations-oriented leadership style? a. Improved performance b. Employee satisfaction c. Close monitoring d. Clearer objectives B Which of the following is a benefit of task-oriented leadership style? a. Employee satisfaction b. More creativity c. Improved performance d. Deeper commitment C

Which of the following statements about the managerial grid is true? a. It holds that task-oriented and relations-oriented behaviors are at two ends of the same spectrum. b. It holds that the quality of leadership style depends on the level of each behavior portrayed. c. It holds that a leader's personal history and knowledge can seldom influence his or her style. d. It holds that effective leaders should exhibit either task-oriented or relations-oriented leadership styles. B Harry, a firm's marketing head, had certain characteristics that made him gain his team's loyalty. Moreover, he can elicit performance beyond expectations from his team members. He has the ability to motivate his team members through strong communication skills. From this description, it can be inferred that Harry is a _____ leader. a. transactional b. bureaucratic c. charismatic d. task-oriented C The three objectives of a charismatic leader are to: a. mark, motivate, and monitor. b. involve, integrate, and implement. c. envision, empathize, and empower. d. support, sympathize, and solve. C Which of the following statements is true about charismatic leaders? a. They usually possess an unwillingness to take personal risks. b. Not all charismatic leaders are positive role models. c. Charismatic leaders often lack confidence about their abilities. d. They do not promote any disillusioned ideals to gain power. B