Question 1. A company whose structure, policies, and capabilities allow employees to respond quickly to customer needs and changes in the business environment is termed as a(n) _____.

agile organization
hyperspecialized organization
formal organization
umbrella organization
mechanistic organization

Question 2. Which of the following chain-of-command systems was developed to address the need to combine specialization with management control?

Line organization
Line-and-staff organization
Agile organization
Formal organization
Informal organization

Question 3. _____ is defined as a pathway for the flow of authority from one management level to the next.

Span of management
Span of control
Departmentalization
Network structure
Chain of command

Question 4. Grouping departments according to similarities in product, process, customer, or geography is called _____.

network structure
virtual structure
matrix structure
functional structure
divisional structure

Question 5. Kelly, who had recently joined an organization, participates in all corporate events because she wants to be accepted as a friend by her coworkers. According to David McClelland's three-needs theory, this desire is known as _____.

need for achievement
need for self-esteem
need for affiliation
need for security

Question 6. Justin M. Brown, the operations manager at Vernon Manufacturing Company, formulated a strategy to motivate the firm's employees. Justin addressed employees' dissatisfaction by increasing their salary and incentives; he employed several industrial counselors to help employees deal with work-related stress; and improved the health insurance plan provided to employees. He also motivated employees by providing greater opportunity for advancement, recognizing employees who perform well and giving employees greater responsibility to foster a sense of achievement in them. Justin's measures are based on which of the following approaches?

Theory X
Theory Y
Herzberg's two-factor theory
Scientific management

Question 7. _____ connects an employee's efforts to the outcome he or she thinks will result from those efforts.

Herzberg's two-factor theory
David McClelland's three needs theory
Expectancy theory
Equity theory

Question 8. _____ suggests that employee satisfaction depends on the perceived ratio of inputs to outputs.

Herzberg's two-factor theory
David McClelland's three-needs theory
Expectancy theory
Equity theory

Question 9. Which of the following statements is true about management by objectives?

It suggests that employee satisfaction depends on the perceived ratio of inputs to outputs.
It has not been validated by experimental research.
It reduces employee involvement in goal setting and decision making.
It reduces employee stress by removing specific goals and targets.
It ensures that employees' activities are directly linked to achieving the organization's long-term goals.

Question 10. K.M. Retailers, an international consumer products retail chain, gives preference to women and minority-owned suppliers and subcontractors. The firm hires a large number of employees from ethnic minorities and the human resource department keeps the interests of these groups in mind while framing company policies. In this example, K.M. Retailers uses which of the following strategies?

Job enrichment
Ethnocentric policies
Decentralization
Deregulation
Diversity initiatives

Question 11. Quality of hire measures _____.
the amount of money spent in hiring and training new employees
the level of productivity of employees in the probationary period
how closely incoming employees meet the company's needs
the percentage of minority groups in a firm's workforce
the percentage of the workforce that leaves every year

Question 12. The sequence of activities that takes the longest time from start to finish in a PERT diagram is called the _____ path
external
lagging
minor
critical
buffered

Question 13. Polar Refrigerator Company reduces its inventory-carrying costs by having their vendors deliver materials right before they are needed in the production process. This is an example of _____ inventory management.
discounted
PERT
JIT
buffered
economic order based

Question 14. _____ refers to the creation of identical goods or services in large quantities
Mass customization
Batch-of-one production
Mass production
Customized production
Mass personalization

Question 15. _____ is a comprehensive approach of companywide policies, practices, and procedures to ensure that every product meets quality standards.
Statistical process control
Quality assurance
Quality control
Quality directive
Corrective management