MAN500 Midterm Exam Assessment -2017


1. Multidivisional structure is the simplest organizational structure that is based on direct lines of authority extending from the top executive to the lowest level employees of an organization.



2. The more complex organizations become, the less they need to develop formal structures to function efficiently.



3. Disadvantages of product departmentalization are that it duplicates functions and does not focus on an organization’s overall objectives.



4. A wide span of management works best when a manager and subordinates are not in close proximity.



5. Production refers to all the activities and processes used in making both tangible and intangible products.



6. Service providers are generally more labor-intensive than manufacturers because of the high level of customization.



7. Modular design, an operations process for manufacturing products, does not allow products to be repaired quickly, thus increasing the cost of labor.



8. Material-requirements planning can be, and often is, used in conjunction with just-in-time inventory management.



9. Service businesses cannot incorporate quality standards.



10. Human relations is the study of the behavior of individuals and groups in organizational settings.



11. The Hawthorne Studies found that money was the primary motivator for employees.



12. Maslow’s hierarchy lists the most basic needs people strive to satisfy first at the top of the pyramid.



13. Theory Z is more participative and encourages lifelong employee commitment more than traditional management approaches.



14. Rewarding appropriate behavior tends to be more effective in the long run than punishments for unacceptable behavior.



15. Planning as a function of human resources management includes determining the status of current personnel when planning human resource needs for the future.



16. It is not necessary for a company to verify an applicant’s references because most applicants tell the truth on applications or résumés.



17. Classroom training allows employees to learn by actually performing the tasks involved in their jobs.



18. Compensation for individuals within a specific job category depends on the compensation for that job and not on the individual’s productivity.



19. Threats against employers made on social media sites are protected speech.



20. Creating an innovative product that meets many users’ needs is sufficient in today’s volatile global marketplace.



21. The customer value of a product refers to anything a buyer must give up to obtain the benefits the product provides.



22. Trying to determine customers’ true needs is difficult because no one fully understands what motivates people to buy things.



23. Buying behavior includes the behavior of both consumers purchasing products for personal or household use as well as organizations buying products for business use.



24. It is necessary for nonprofits, government institutions, and even people to market themselves to spread awareness and achieve desired outcomes.



Session 2 True/False Questions

25. If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision making is slow, then these would be weaknesses indicative of _____ departmentalization.

A. geographical

B. functional

C. product

D. customer

E. process

26. An electronic company has a computer electronics division, telecommunications equipment division, and kitchen appliances division. Which of the following methods of departmentalization does the company use to structure its organization?

A. Product departmentalization

B. Geographical departmentalization

C. Functional departmentalization

D. Customer departmentalization

E. Process departmentalization

27. Red Finch Products Inc. groups employees based on whether they are going to handle the sales account of a wholesale customer, regular consumer, first-time buyer, or a one-time buyer. Which of the following methods of departmentalization is the company using?

A. Product departmentalization

B. Geographical departmentalization

C. Functional departmentalization

D. Customer departmentalization

E. Process departmentalization

28. Razor Automobiles Inc. has slightly different versions of the same car for the American, European, and Asian markets. Its employees are grouped into divisions based on the market they have been assigned. This is an example of _____.

A. demographic departmentalization

B. geographical departmentalization

C. functional departmentalization

D. customer departmentalization

E. process departmentalization

29. Which of the following is a drawback of centralization?

A. It fails to delegate responsibility for carrying out daily and routine procedure to lower level employees.

B. It is ineffective when the decisions to be made are risky.

C. It results in a flat organizational structure.

D. It requires lower-level managers to have strong decision-making skills.

E. It may take long for an organization as a whole to implement decisions and respond to changes on a regional scale.

30. Which of the following statements is true about span of management?

A. According to experts, top managers should directly supervise more than 10 to 20 people.

B. A narrow span of management exists when a manager directly supervises a large number of subordinates.

C. Wide spans of management work well when a manager has many responsibilities in addition to the supervision and faces many problems.

D. Wide spans of management are more common in decentralized firms, whereas narrow spans of management are typical in centralized organizations.

E. In narrow spans of management, the level of interaction between superiors and subordinates is usually low.

31. Gerald is the owner of a popular restaurant. He has appointed a manager who takes care of the day-to-day operations of the restaurant and reports to Gerald at the end of a week. The manager is assisted by a junior manager, who supervises the rest of the staff in the restaurant. Thus, Gerald’s restaurant is using a _____.

A. matrix structure.

B. line structure.

C. line-and-staff structure.

D. multidivisional structure.

E. web structure.

32. Irene is an employee involved in administering activities associated with making both tangible and intangible products that satisfy the needs of customers. Thus, Irene is a(n) _____.

A. finance manager

B. sales manager

C. marketing manager

D. human resource manager

E. operations manager

33. The products of service providers tend to be more customized than those of manufacturers because:

A. different customers have different needs.

B. the requirements of all customers are more or less the same.

C. technological innovations have reduced variability.

D. there is more capital required in service provision.

E. service providers have limited contact with customers.

34. Service providers are often more limited than manufacturers in selecting work methods, assigning jobs, scheduling work, and exercising control over operations because:

A. services are not labor-intensive.

B. services are highly standardized.

C. services cannot be customized.

D. of their tangibility.

E. of their need for customer contact.

35. Which of the following is an accurate description of the difference between manufacturers and service providers?

A. Service providers have more control over the amount of variability of the resources they use than manufacturers do.

B. For service providers, measuring productivity is fairly straightforward, whereas for manufacturers measuring productivity is more complicated.

C. Manufacturers can separate the production of a product from its actual use, whereas the actual performance of a service typically occurs at the point of consumption.

D. The products of manufacturers tend to be more customized than those of service providers.

E. Manufacturers make more contact with their customers when compared to service provider

36. Carbon Devices Inc. is a contract manufacturer of 32GB USB flash drives. All USB devices sold under the brand name Carbon are identical to each other and are of the same quality. This is an example of _____.

A. flexible manufacturing

B. customization

C. standardization

D. benchmarking

E. lean manufacturing

37. _____ is a philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers’ perceptions of quality.

A. The just-in-time (JIT) inventory concept

B. The service quality model

C. Economies of scale

D. The economic order quantity (EOQ) model

E. Total quality management (TQM)

38. Marino Autos Inc. measures and evaluates the quality of its cars and services against the market leaders in the automobile industry. Wherever there is a gap, Marino Autos Inc. tries to cover that gap by imitating the best practices of these market leaders. This is known as _____.

A. crowdsourcing

B. benchmarking

C. sampling

D. nearshoring

E. licensing

39. Which of the following is labeled the Hawthorne effect?

A. Decrease in productivity as work hours increased

B. Increase in productivity regardless of physical conditions

C. Decrease in productivity regardless of supervision

D. Increase in productivity as pay increased

E. Productivity remaining the same despite increase in efficiency

40. Which of the following is one of the important discoveries of the Hawthorne studies?

A. Money is the only motivator for high productivity.

B. Better physical conditions will improve employee productivity.

C. Supervisors who micromanage their employees stand a higher chance of motivating workforces.

D. Employees who are not motivated to work are unlikely to be motivated by any incentives related to work.

E. Managers who understand the needs, beliefs, and expectations of people have the greatest success in motivating their workers.

41. According to Maslow’s hierarchy of needs, the need for love, companionship, and friendship—the desire for acceptance by others is a part of the _____.

A. security needs

B. social needs

C. physiological needs

D. esteem needs

E. self-actualization needs

42. In the context of the Herzberg’s two-factor theory, which of the following factors relate directly to the content of the work itself?

A. Creativity

B. Social needs

C. Security needs

D. Responsibility

E. Self-respect

43. _____ involves determining, through observation and study, the specific tasks that comprise a job and the knowledge, skills, and abilities necessary to perform the job.

A. Job description

B. Job specification

C. Job design

D. Job analysis

E. Job appraisal

44. Which of the following statements is true of a job specification as well as a job description?

A. Both the job description and job specification are used exclusively for internal job postings.

B. Both the job description and job specification determine, through observation and study, pertinent information about a job.

C. Both the job description and job specification are used to develop recruiting materials.

D. Both the job description and job specification specify the cost of hiring current employees to fill job openings.

E. Both the job description and job specification specify the educational qualification required for a job.

45. Lazar Inc., a software firm, has taken to recruiting potential employees from engineering colleges to fill its entry-level vacancies. On the basis of the given information, which of the following observations holds true?

A. The management at Lazar is engaging in the process of head hunting.

B. The management at Lazar is hiring its employees from external sources.

C. The management at Lazar is putting up internal job listings.

D. The management at Lazar is engaged in the process of employee orientation.

E. The management at Lazar is offering internships.

46. Solutions Inc., an HR consultancy firm, specializes in luring qualified people away from other companies. Many companies hire Solutions Inc. to fill vacancies. On the basis of the given information, we can conclude that Solutions Inc. is included in the category of:

A. headhunters.

B. arbitrators.

C. limited liability companies.

D. partnerships.

E. public limited companies.

47. _____ is best described as a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas.

A. Auditing

B. Marketing

C. Recruiting

D. Bootstrapping

E. Brainstorming

48. Ryan has produced 1,000 jars of pickled oranges, using the oranges in his orchard. By concentrating his efforts on advertising and publicity, he is trying to encourage people to notice and buy his product. Through his promotional activities, Ryan is primarily engaging in the marketing function of _____.

A. financing

B. grading

C. warehousing

D. buying

E. selling

49. _____ is the chance of loss associated with marketing decisions.

A. Value

B. Utility

C. Liability

D. Risk

E. Cost

50. _____ is the process of moving products from the seller to the buyer.

A. Selling

B. Transporting

C. Grading

D. Storing

E. Buying

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