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1. UOP MGT 521 Final Exam Guide (New, 2017) || Recent Work ||
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1. Unlike leaders, managers are those who:
encourage and motivate employees to work together to achieve
a common vision.
implement procedures and processes to ensure the smooth
functioning of an organization.
seek innovation rather than stability in their approach to fulfill
organizational aspiration
develop relationships with employees based on trust and
mutual respect.
2. Adopting a __________ involves distributingmonetary resources
among divisions to increase financial returns or to spread risks
among different businesses.
differentiation strategy
global strategy

2. portfolio strategy
multidomestic strategy
3. Which of the following statements is true of a corporate-level
strategy?
It provides the framework within which functional managers
operate.
It is the primary responsibility of top managers.
It is used to identify an organization’s strengths and
weaknesses.
It outlines a division’s long-term goals.
4. __________ is the process by which managers establish the
structure of working relationships among employees to allow
them to achieve a company’s goals efficiently and effectively.
Leading
Organizing
Planning
Controlling
5. Identify a true statement about an effective control system?

3. It provides managers with accurate information about
organizational performance.
It is limited in its capacity to provide managers with
information in a timely manner.
It allows managers to take only programmed decisions.
It is an informal system that helps managers make decisions.
6. A __________ specifies the national markets and industries an
organization plans to compete in and why it intends to do so.
corporate-level strategy
functional-level strategy
business-level strategy
department-level strategy
7. Which of the following models of leadership focused on
identifying the characteristics of a person capable of being an
effective leader?
House’s path-goal model
The trait model
The behavioral model
Fiedler’s contingency model

4. 8. Which of the following principles identified by Henri Fayol
focuses on the chain of command with an organization?
A manager should not encourage or allow his or her employees
to be innovative and creative.
An employee should receive orders from only one supervisor.
A manager is not entitled to ask for his or her employees’
obedience.
Authority should be concentrated at the top of the chain of
command in an organization.
9. A low-cost strategy requires organizations to:
focus its attention on customers from a particular geographic
area.
direct its efforts to cater to a particular kind of customer.
increase the spending on research and development to
differentiate its products from those of its competitors.
develop products that can be manufactured inexpensively
compared to existing rival products.
10. The __________ of an organization is responsible for building
an efficient top management team.
first-line manager
vice-president

5. middle manager
chief executive officer
11. Which of the following is a feature of a high-performing
organization?
The managers choose inappropriate goals but use resources
effectively to achieve them.
The managers choose the right goals to pursue and use
resources appropriately to meet them.
The organization produces a product that customers will want
to buy but will not be able to afford.
The organization produces a low-quality but affordable
product.
12. According to Lewin’s force-field theory of change, which of
the following factors results in a change in an organization?
A stable general environment
A stable task environment
A decrease in forces for change
A decrease in resistance to change
13. Which of the following statements is true of
transformational leaders?

6. They prefer to maintain the status quo in their organizations.
They use reward power and coercive power to command
respect from their subordinates.
They engage with subordinates and motivate them to work
toward organizational goals.
They hesitate to share information with their coworkers.
14. First-line managers in an organization are responsible for:
helping middle managers set organizational goals.
assessing the appropriateness of organizational goals.
supervising nonmanagerial employees on a day-to-day basis.
ensuring the smooth functioning of all departments.
15. _____ is a measure of how productively resources are utilized
to meet a goal
Efficiency
Product utilization
Centralization
Management
16. According to Henry Fayol, the planning process in an
organization is effective when:

7. it sets disparate, specific goals for each functional level.
it proposes multiple plans to achieve an organizational goal.
it allows plans to be designed and modified at all levels.
it produces plans that are static, thus avoiding confusion.
17. Which of the following statements is true of an evolutionary
change in an organization?
It helps the organization adapt to gradual changes in the
environment.
It involves quickly finding new ways to be effective.
It is effected through reengineering and innovation.
It is likely to result in a radically new structure for the
organization.
18. Which of the following is an advantage of implementing a
functional structure in an organization?
It helps managers specialize and develop expertise in only one
product area.
It enables employees who perform similar kinds of jobs to
observe and learn from each other.
It lets organizations choose the set of products that serves the
needs of regional customers.

8. It allows functional managers to develop generic skills that
help manage all aspects of production.
19. Which of the following did Frederick W. Taylor believe to be
an outcome of recording the method of performing a particular
task in an organization?
Tasks became complicated and time-consuming.
Job procedures became standardized and more routine.
Workers did not have to be trained for specific roles anymore.
Workers’ informal knowledge about their tasks became
irrelevant.
20. Which of the following is an advantage of group decision
making?
It allows managers to process more information and rectify one
another’s errors.
It is unaffected by any kind of cognitive bias as it benefits from
multiple perspectives.
It is easy to execute because getting two or more managers to
agree on a solution is relatively simple.
It allows managers to take decisions within relatively short
periods of time compared to individual decision makers.

9. 21. __________ is the formal system of task and job reporting
relationships that determines how employees utilize resources
to achieve a company’s goals.
Organizational culture
Organizational matrix
Organizational design
Organizational structure
22. One way of pursuing a differentiation strategy is by:
introducing products that are replicas of a competitor’s
products.
investing more on research and development.
offering specialized products at low-costs.
looking for new ways to reduce production costs.
23. An organization’s return on investment is calculated by
dividing:
its profit before interest and taxes by its total interest charges.
its operating profit by sales revenue.
its net income before taxes by its total assets.
its current assets by its current liabilities.

10. 24. How does an increase in job specialization lead to higher
organizational performance?
Each worker becomes responsible for all the different tasks
involved in producing a product thereby increasing
productivity.
Each worker specializes in a different set of tasks over a period
of time.
Workers performing specific tasks become much more skilled
and produce a product faster while working in groups.
Workers join different groups and each group performs the
same task at increasing costs over a period of time.
25. A differentiation strategy can be employed by organizations
to:
ensure strict control over various departments by a system of
checks and balances.
achieve flexibility in organizational culture.
enhance the value consumers perceive in their products.
reduce costs in all their functions.
26. Which of the following scenarios illustrates the attraction-
selection-attrition framework?
Miriam likes experimenting with new possibilities and taking
risks. She hires like-minded people for her start-up.

11. The management of ThinkFree Inc. requires all prospective
employees to attend a basic induction program.
Serena wins the annual award for best employee of the year.
She was selected from all likely candidates for her dedication to
her work.
All the newly hired employees of Style Prints Inc. are
encouraged to participate in team outings.
27. A differentiation strategy is ideal for organizations that:
try to ensure flexibility in organizational culture.
aim to produce new, innovative products.
intend to exercise strict control over various departments.
want to ensure flawless coordination among multiple divisions.
28. __________ signify what an organization and its members are
trying to accomplish.
Terminal values
Shared norms
Societal norms
Instrumental values
29. A person’s upbringing is an important source of __________.

12. organizational ethics
professional ethics
individual ethics
societal ethics
30. __________ is the process by which managers regulate and
monitor how efficiently and effectively an organization as a
whole works to achieve organizational goals.
Leading
Organizing
Controlling
Planning