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Dear fellows!

Here is 100% correct solved M.C.Qs of principles of management mgt-503. From lec. No (01to 22)

Key feature:
In every question I have gave the page number of handout. From where this question is taken. So it is easy for you to also confirm it. If you find a little mistake in this pls it is a humble request please informs me. So I can improve it. Lucky.jan077@gmail.com Mc100200328@vu.edu.pk

Question No: 1 ( Marks: 1 ) Sociology can be defined as:

- Please choose one

The study of people in relation to their fellow human beings (page no 14 on handouts) The study of societies which help to learn about human and their activities It is the study of behavior of the individuals or groups within the political environment The science that seeks to measure and explains human behavior Question No: 2 ( Marks: 1 ) - Please choose one The Great China Wall has been built in almost: 900 years 956 years(page no 2 on handouts) 856 years 1000 years Question No: 3 ( Marks: 1 ) - Please choose one To motivate the employees a manager should give them: Monetary Incentives Promotion Appreciation certificates All of the given options (page no 88 on handouts) Question No: 4 ( Marks: 1 ) - Please choose one Which of the following is most important characteristic of an entrepreneur? Planning Communication Rapid decision making Goal setting

Question No: 5 ( Marks: 1 ) - Please choose one A manager transmits the information outside the organization. He is performing which of the following role? Spokesperson(page no 08 on handouts) Representative Disseminator Agent Question No: 6 ( Marks: 1 ) - Please choose one All of the following are managerial roles identified in Mintzbergs Model EXCEPT: Informational Interpersonal Functional(page no 08 on handouts) Decisional Question No: 7 ( Marks: 1 ) - Please choose one The concern of which of the following was to improve the performance of the overall functions of the organization? Quantitative Management Administrative Management(page no 19 on handouts) Scientific Management Bureaucratic Management Question No: 8 ( Marks: 1 ) - Please choose one Henri Fayol was a successful industrialist of : France(page no 19 on handouts) Germany America Canada Question No: 09 ( Marks: 1 ) - Please choose one Chester Barnard saw organizations as a ______system that required human assistance. Moral Ethical Social(page no 20 on handouts) Technical Question No: 10 ( Marks: 1 ) - Please choose one A company commitment to develop a process that achieves high quality product and customer satisfaction is called:

Knowledge management Total quality management(page no 24 on handouts) Marketing management System management Question No: 11 ( Marks: 1 ) - Please choose one Two major characteristics of open system are : Negative entropy and synergy(page no 25 on handouts) Positive entropy and synergy Entropy and synergy Anthropology and synergy Question No: 12 ( Marks: 1 ) - Please choose one Environment reacts to the output of organization and provides:

Feed forward Input Output Feedbac(page no 25 on handouts) Question No: 13 ( Marks: 1 ) - Please choose one All of the following are major elements of the mega environment EXCEPT: Technological Economic Socio-cultural Competitors(page no 30 on handouts) Question No: 14 ( Marks: 1 ) - Please choose one In a capitalistic economy, economic activity is governed by: Political forces Market forces(page no 30 on handouts) Economic forces Cultural forces Question No: 15 ( Marks: 1 ) - Please choose one All of the following are elements of Task environment EXCEPT :

Suppliers Culture(page no 30 on handouts) Customers Competitors Question No: 16 ( Marks: 1 ) - Please choose one All of the following are Dimensions of organizational culture EXCEPT: Innovation Aggressiveness Stability Customer orientation(page no 31 on handouts) Question No: 17 ( Marks: 1 ) - Please choose one The principle reason for formation of the regional trading alliance in Europe was to reduce the power of the United States and:

Canada Mexico Russia Japan(page no 37 on handouts) Question No: 18 ( Marks: 1 ) - Please choose one Most of the time lower level management of organizations have to deal with problems which are: Satisficing Well-structured(page no 43 on handouts) Non-programmed Ill-structured Question No: 19 ( Marks: 1 ) - Please choose one Which of the following is the basic rule of brainstorming?

Criticism is not allowed(page no 39 on handouts) Ideas should be radical Improvement of ideas is encouraged Quantity of idea production is stressed

Question No: 20 ( Marks: 1 ) - Please choose one Which one of the following plans has clearly defined objectives? Directional Flexible Specific(page no 59 on handouts) Standing Question No: 21 ( Marks: 1 ) - Please choose one Suppose as a manager of a Company you are performing an activity that involves budgeting and programming of your subordinates work. In this situation you are working as: Entrepreneur Resource allocator(page no 8 on handouts) Figurehead Monitor 22.----------- maintains self developed network of outside contacts and informers who provide favors and information.

Entrepreneur Monitor Liaison (page no 8 on handout) Figurehead


23-------------- is the planning and implementing of organizational systems and practices that maximize the potential of employees to contribute to organizational goals and develop their capabilities unhindered by group identities such as race, gender, age, or ethnic group.

Managing Diversity(page no 13 on handout) Anthropology Bureaucracy Remuneration


Question no.24.Seema desires for friendship, love, and a sense of

belonging, we can say that she fulfils the_______

Physical need Self Actualization Social need (page no 90 on handout)


Esteem

25.A manager in a manufacturing company attempts to establish a culture of quality affecting the attitudes and actions of every employee and relies on a workforce that wants to improve quality. He focuses on establishing ----------------------------------.

Total Quality Management(page no 24 on handout) Knowledge management Operations Management Management of Information System

26------------ is a condition in which the decision maker chooses a course of action without complete knowledge of the consequences that will follow implementation.

Risk Ambiguity Accuracy

Uncertainty(page no 40 on handout)
27.Which of the following is the constituency in the environment that is affected by an organization s decisions and policies and that can influence the

organization.

Stakeholders 28.NAFTA stands for :

Stockholders(page no 31 on handout) Shareholders Competitor

North American Free Trade Agreement(page no 36on


handout)

North Asian Free Trade Agreement North American Free Trade Association None of the given options
29.Which one of the following is not the characteristic of Webers ideal bureaucracy?

Specialization of labor Formalization of rules Division of labor(page no 18 on handout) Formalization of links authority into a hierarchical structure
Question No: 30 ( Marks: 1 ) - Please choose one

Which of the following is NOT one of Fredrick Taylor's four principles of management? Avoid cooperation with workers(page no .16 on handout) Scientifically select and then train workers Divide work and responsibility Study tasks scientifically and develop best method to perform it Question No: 31 ( Marks: 1 ) - Please choose one

The managerial functions according to Fayol were : Organizing, staffing, commanding, coordinating and controlling Commanding, organizing, planning, coordinating and staffing Controlling, commanding, organizing, planning and leading Planning, organizing, commanding, coordinating and controlling(page no .19 on handout)

32..According to Maslow's hierarchy of need, a healthy work environment is an example of which of the following need? Physiological Esteem Safety(page no .90 on handout) Social Question No: 33 ( Marks: 1 ) - Please choose one

Which of the following management perspective focuses on decision making, economic effectiveness, mathematical models and use of computers? Knowledge management Total quality management Marketing management Quantitative management(page no .23 on handout) Question No: 34 ( Marks: 1 ) - Please choose one

Mega environment is also called: Open environment Close environment Flexible environment General environment(page no .29 on handout) Question No: 35 ( Marks: 1 ) - Please choose one

Environment made up of specific outside elements within which an organization interfaces in the course of conducting its business is called: Internal environment External environment The task environment(page no .30 on handout) The mega environment Question No: 36 ( Marks: 1 ) - Please choose one

Mega environment, that includes the attitudes, values, norms, beliefs, behaviors and associated demographic trends that are characteristics of a

given geographic area, is called The socio-cultural element(page no .30 on handout) The international element The economic element The legal-political element Question No: 37 ( Marks: 1 ) - Please choose one

The belief that a firm's obligation goes beyond that required by law and economics, and includes a pursuit of long-term goals that are good for society is known as: Ethical responsibility Social responsibility(page no .32 on handout) Social obligation Social responsiveness Question No: 38 ( Marks: 1 ) - Please choose one

A choice made from two or more alternatives is called: Support System Network Decision(page no .39 on handout) Question No: 39 ( Marks: 1 ) - Please choose one

Most of the time lower level management of organizations have to deal with problems which are: Satisficing Well-structured(page no .43 on handout) Non-programmed Ill-structured Question No: 40 ( Marks: 1 ) - Please choose one

When an organization encounters a serious problem which needs to be

solved immediately, it is called: Crisis problem (page no .41 on handout) Non- Crisis problem Opportunity problem Financial Problem Question No: 41 ( Marks: 1 ) - Please choose one

Which of the following refers to the concentration of decision authority at the top levels of the organizational hierarchy? Decentralization Departmentalization Centralization (page no .83 on handout) Formalization Question No: 42 ( Marks: 1 ) - Please choose one

Break-even Analysis is a means of earning profitable operations of the business through concrete calculations. Therefore, it falls under: Scientific management Behavioral management Management science Operation management Question No: 43 ( Marks: 1 ) - Please choose one

Which of the resource allocation technique gives more emphasis to allotment of time? Budgeting Scheduling(page no .53 on handout) Break even analysis Linear programming Question No: 44 ( Marks: 1 ) - Please choose one

All of the following are the parts of organizations external environment, EXCEPT:

Organizational cultures(page no .31 on handout) Target customers Company competitors Performance regulators Quiz: (45) In general, entrepreneurs are better able than managers in a traditional hierarchical organization to lead. organize. respond to a changing environment. (page no 7 on handout) respond to a static environment 46. Which of the following statements about middle managers is not true? Middle managers coordinate the work of supervisors.
Middle managers implement the objectives and plans of top management. The number of middle managers in the most organizations is increasing . (page no 11 on handout)

Operatives can report directly to middle managers. 47. -------------- involves cultivating a learning culture where organizational members systematically gather knowledge and share it with others to achieve better performance. Knowledge management . (page no 24 on handout) Learning Organization Entrepreneurship None of the given options 48. Mr. A. is a manager in a manufacturing company, he attempts to establish a culture of quality affecting the attitudes and actions of every

employee and relies on a workforce that wants to improve quality. He focuses on establishing: Total Quality Management . (page no 24 on handout) objective of tqm Knowledge management Operations Management Management of Information System 49. Ali is working in XYZ Company, he desires to get himself secure from crimes, company lay offs and other adverse impacts. We can say that he fulfils the ----------------- need. Self Actualization Social need Esteem Safety . (page no 90 on handout)safty needs pertain to the desire to be safe,secure.. 50. In -------------- theory management assumes that employees may be ambitious, self-motivated, and anxious to accept greater responsibility, and exercise self-control, self-direction, autonomy and empowerment. Theory Y manager . (page no 91 on handout) Theory X manager Theory Z manager All of the above 51. ----------- involves the products, services, and other outcomes produced by the organization. Inputs Transformation process Outputs . (page no 25 on handout) Feed Back

52. ----------- is known as the father of scientific management. Fredrick Winslow Taylor. . (page no 16 on handout) Max Weber Peter Drucker None of the given options 53. --------------- searches organization and its environment for opportunities and initiates improvement projects to bring about changes. Disturbance handler Liaison Leader Entrepreneur . (page no 8 on handout) 54. Mr. A is a manager in Xyz Company. He gets his work done with and through other people. He leads the employees motivates them and have a good interaction with his employees, which of the following skills he has: Technical Skills Human Skills Conceptual Skills Decisional Skills 55. ---------------- is the final step in the decision-making process. Implementing the decision Evaluating the decision . (page no 42 on handout) Recognizing the decision Evaluating the alternatives 56. A --------- is a series of interrelated sequential steps that can be used to respond to a structural problem.

Policy Rule Well structured problems Procedure . (page no 43 on handout) 57. Mintzberg grouped the ten managerial roles into three primary headings. Which of the following is not one of these headings? interpersonal relationships transfer of information planning. (page no 8 on handout) decision making 58. Organizations that have a high potential of offering rival products or services are called Suppliers Competitors . (page no 30 on handout) Clients Customers
59. Mr. Zafar has undertaken a new business of leather bags investing 150,000; usually with some accountability of risk. We may call Mr. Zafar: Manager Leader Competitor Entrepreneur . (ref)entrepreneur is a risk taker 60. -------------------is achieved when the cost of producing a given output is as low as possible. Efficiency. (page no 9 on handout) Effectiveness

Break even Both A and B 61. Set of the attitudes, experiences, beliefs and values of an organization is called organizations Strengths Environment Culture . (page no 30 on handout) Resources

62. Mr. X the HR manager of Star Mini Miners Club recruits labor with different skills for different jobs. This approach is characteristic of Equity Impersonality Division of labor . (page no 78 on handout) Discipline 63. In ABC Company, all the activities particularly those regarding decision-making, are concentrated within a particular location and/or group. The company observes Centralization . (page no 83 on handout) Decentralization Span of control Job Rotation 64. Which of the following is not allowed in a brainstorming session? Clear definition of the problem Criticism of poor ideas . (page no 39 on handout) Large number of alternatives

Recording of all alternatives 65. Mr. A is the HR Manager of XYZ Company. He decided to terminate a group of employees because their positions were no longer necessary in the organization. What will you say Mr. A has decided for? Restructuring Turnover Downsizing . (page no 82 on handout)refdownsizing is the process of significantly reducing the layer of employees.) Job Rotation 66. A job has high -------------- if workers are given substantial freedom, independence, and discretion in scheduling the work and determining the procedures to be used in carrying it out. Autonomy . (page no 85 on handout) Feed back Skill Variety Enlargement 67 ------------ means that the two merging companies became history and a new firm is established
Acquisition Merger (page no 70 on handout) Joint Venture Both A and B

68 ------------- means only one company became history which is the acquired company while the acquiring company remain.
Joint Venture Merger Acquisition (page no 70 on handout)

Both A and B

69. Maslow's hierarchy of needs proposes that an individual begins by satisfying ----------- needs.
Self-actualization Esteem Physiological (page no 90 on handout) Safety

70. Which element of structure refers to the continuous line of authority that extends from the highest organizational levels to the lowest and clarifies who reports to whom?
Work specialization Span of control Centralization Unity of command (page no 19 on handout)

71. Organizations that have developed the capacity to continuously adapt and change because their members take an active role in identifying and resolving work-related issues are called _____ organizations.
Learning (page no 24 on handout) Visionary Community Interdependent

72. When an organization is in several different businesses, these single businesses that are independent and formulate their own strategies are often called _____.
Strategic business units (page no 68 on handout) Monopolistic advantages Quality controllers

Stars

73. Organizations using Porter's _____ strategy select a market segment in an industry and attempt to exploit it rather than serve the broad market.
Cost leadership Differentiation Stuck in the middle Focus(page no 72 on handout)

74. ----------- involves increasing----------.


Job enrichment; job variety Job enlargement; job depth Job enlargement; job scope(page no 85 on handout) Job enrichment; job feedback

75. ---------- are an organization's objectives, and --------- are the documented ways that organizations intend to meet those objectives.
Goals; plans (page no 57 on handout) Stated goals; real goals Standing plans; single-use plans Specific plans; directional plans

76. Which of the following is NOT one of the characteristics of welldesigned goals?
Goals should be written in terms of actions rather than outcomes. (page

no 62 on handout)
Goals should be measurable and quantifiable. Goals should be challenging but attainable. Goals should be communicated to all organizational members who need to know about them.

MGT503
Mc100403601Quiz#2(lec1tolec18)

Problemsolving Decisionmaking Decisiontaking Jobanalysis

Meetingitssocialobligation Meetingsocialresponsibilities Beingsociallyresponsible Payingaffectiontothebottomlines

ASEAN SAARC EU NAFTA

Hospitals Colleges Factories Allofthegivenoptions

Diversityofalternativeisavailable Groupsareperceivedasmorelegitimate Maximizesthechancesofsolutionacceptance Obstructcreativityandinnovation

Planning Organizing Leading Controlling

Authority Unityofcommand Unityofdirection order

Decreaseinitiallybutincreasedsteadily Increased Decreased Neitherincreasednordecreased

Contributingtosocialbenefitsinthenameofgoodwill Justdoingwhatthegovernmentsaystheyhavetodo Helpingmakesocietyabetterplaceforeveryonetolive Addingtothecostofdoingbusiness

Informalrulesandprocedures Awelldefinedhierarchyofauthority Careersbasedonmerit Acleardivisionoflabour

Intensefocusonthecompetition Concernforcontinualimprovement Improvementinqualityofeverythingtheorganizationdoes Accuratemeasurement

Increasedworkermotivation Decreasedworkerspecialization Increaseworkerproductivity Decreaseworkermotivation

Technical Conceptual Communication interpersonal

Toplevelmanagers Middlelevelmanagers Supervisors Operationalmanagers

Knowledgemanagement Globalization Theinternet Speedandquality

What is the term used to define the number of subordinates directly controlled by a manager? A: division management B: departmentation C: sphere of influence D: investment span E: span of management 2. Which management theorist is responsible for the motivation-hygiene theory? A: Abraham Maslow B: Dale Hawthorne C: Peter Drucker D: Frederick Herzberg E: Dave Pelz 3. What kind of organizational structure combines a vertical chain of command with horizontal reporting requirements? A: line authority B: matrix C: functional D: quality circle E: line-and-staff 4. What is the name for a contract that expressly forbids an employee from joining a union? A: fixed-price contract B: yellow-dog contract C: blacklist contract D: cost-reimbursement contract E: unfair list contract 5. What kind of training program is most appropriate for a simple task? A: on-the-job training B: vestibule training C: laboratory training D: away-from-the-job training E: job rotation 6. Which leadership theory suggests that management style should adapt itself to changing circumstances? A: autocratic theory B: participatory theory C: permissive theory D: delegation theory E: contingency theory 7. According to Abraham Maslow, the most elevated type of need is _____.

A: safety B: esteem C: self-actualization D: physiological E: social 8. Which of the following was NOT a result of the Wagner Act of 1935? A: employers were forbidden from interfering with union activity. B: the National Labor Relations Board was created. C: a normal workweek was defined as 40 hours. D: employers could no longer engage in collective bargaining with unions. E: employers could no longer discriminate in hiring and firing based on union membership. 9. Which management concept suggests that low-importance decisions be handled by subordinates, so that managers can focus on high-importance decisions? A: management by exception B: exclusionary management C: inclusionary management D: management by objective E: participatory management 10. Which human resource document outlines the qualifications required for the jobholder? A: job announcements B: job specification C: job application D: job description E: job portfolio

Dear fellows!
Here is 100% correct solved M.C.Qs of principles of management mgt-503. From lec. No (01to 22)

Key feature:
In every question I have gave the page number of handout. From where this question is taken. So it is easy for you to also confirm it. If you find a little mistake in this pls it is a humble request please informs me. So I can improve it. Lucky.jan077@gmail.com Mc100200328@vu.edu.pk

Question No: 1 (Marks: s1) - Please choose one Which of the following decision making techniques requires a panel of experts? Interacting group Delphi technique ( page no.48 on handout) Nominal group Brainstorming Question No: 2 ( Marks: 1 ) - Please choose one Which of the following is an advantage of group decision-making?

The group process takes less time Groupthink may occur More decision alternatives are generated ( page no.45 on handout) One person can dominate the group Question No: 3 ( Marks: 1 ) - Please choose one Fifth Step in the rational decision making process is: Implementation of the alternative Analyzing alternatives ( page no.41 on handout) Developing alternatives Allocating weights to the criteria Question No: 4 ( Marks: 1 ) - Please choose one Once a manager has identified a problem, the next step would be the identification of: Discrepancies Decision criteria ( page no.41 on handout) Scenarios

Factor weights Question No: 5 ( Marks: 1 ) - Please choose one All of the following are the assumptions of rational decision making EXCEPT: Alternatives are known Possible outcomes known Optimal decision is possible Information is unknown (lec no 16.ppt slides) Question No: 6 ( Marks: 1 ) - Please choose one A situation in which manager can make an accurate decision is called: Certainty ( page no.40 on handout) Uncertainty Risk Factual Question No: 7 ( Marks: 1 ) - Please choose one The single EU currency will be called: Franc Franc-mark Pound Euro ( page no.36 on handout) Question No: 08 ( Marks: 1 ) - Please choose one The customes, mores, values and demographic characteristics of the society in which the organization function are called: The socio-cultural element ( page no.30 on handout) The legal-political element The economic element The international element Question No: 09 ( Marks: 1 ) - Please choose one Systems that are not influenced by and do not interact with their environment are : Open systems Close systems ( page no.25 on handout) Flexible systems Social systems Question No: 10 ( Marks: 1 ) - Please choose one Abraham Maslow and Douglas are called: Administrative theorists Pre-classical theorists Classical theorists Behavioral theorists ( page no.20 on handout)

Question No: 11 ( Marks: 1 ) - Please choose one When management provides orderly personnel planning and ensures that replacements are available to fill vacancies, it is called : Division of work Discipline Unity of command Stability of tenure of personnel( page no.19 on handout) Question No: 12 ( Marks: 1 ) - Please choose one All of the following are the characteristics of Max Webers ideal bureaucracy EXCEPT: Formalization of rules and procedures Impersonality in application of rules and sanctions Receiving orders from one superior only ( page no.18 on handout) Specialization of labor Question No: 13 ( Marks: 1 ) - Please choose one Which type of managerial skill refers to the ability to analyze and diagnose complex situations? Problem-solving Interpersonal Conceptual ( page no.12 on handout) Technical Question No: 14 ( Marks: 1 ) - Please choose one Controlling contingent situation comes under which of the following roles? Spokesperson Monitor Leader Disturbance handler ( page no.08 on handout) Question No: 15 ( Marks: 1 ) - Please choose one The role that involves symbolic nature duties is called: Interpersonal role ( page no.08 on handout) Managerial role Decisional role Informational role Question No: 16 ( Marks: 1 ) - Please choose one To motivate the employees a manager should give them:

Monetary Incentives Promotion Appreciation certificates All of the given options ( page no.88 on handout) Question No: 17 ( Marks: 1 ) - Please choose one

Which one of the following is the example of organization? Hospitals Colleges Factories All of the given options ( page no.03 on handout)

Question No: 18 ( Marks: 1 ) - Please choose one The science which studies the nature of things, particularly values and ethics is called: Anthropology Philosophy ( page no.14 on handout) Economics Political sciences Question No: 19 ( Marks: 1 ) - Please choose one Systems that interact with their environment dynamically are called: Close systems Open systems( page no.25 on handout) Flexible systems Social systems Question No: 20 ( Marks: 1 ) - Please choose one Field of management that focuses on designing and implementing computer based information systems for use by management is called: Marketing management Principles of management Operations management Management information system ( page no.23 on handout) Question No: 21 ( Marks: 1 ) - Please choose one All of the following are said to be the early advocates of Behavioral viewpoints EXCEPT : Robert Owen Hugo Munsterberg Mary parker Follett Max Weber ( page no.20 on handout) Question No: 22 ( Marks: 1 ) - Please choose one When management provides orderly personnel planning and ensures that replacements are available to fill vacancies, it is called :

Unity of command Stability of tenure of personnel ( page no.19 on handout) Division of work Discipline Question No: 23 ( Marks: 1 ) - Please choose one EMU is abbreviation of: Economic and Monetary Union (page no.36 on handout) European and Monetary Union English Monetary Union European English Monetary Union

QUIZ
Choose the correct option. (24) In general, entrepreneurs are better able than managers in a traditional hierarchical organization to lead. organize. respond to a changing environment. ( page no 7 on handout) respond to a static environment.

(25)The belief that a firm's obligation goes beyond that required by law and economics, and includes a pursuit of long-term goals that are good for society is known as social responsiveness. ethical responsibility. social responsibility. ( page no 32 on handout) social obligation

(26)The belief that a firm's obligation goes beyond that required by law and economics, and includes a pursuit of long-term goals that are good for society is known as social responsiveness.

ethical responsibility. social responsibility. ( page no 32 on handout) social obligation)

(27) The objective of TQM is to create an organization committed to continuous _________ Improvement. ( page no 24 on handout) Development Struggle a&b

(28) The process of assigning authority and responsibility to ones subordinates to manage a project is called centralization. supervision. delegation. ( page no 76 on handout) specialization.

(29) Time -and- motion study introduced by Henri Fayol Fredrick W. Taylor ( page no 17 on handout) Frank and Lillian Gilberth Adam Smith

(30) __________focused on the work or the job and how to do it better. Scientific management ( page no 16 on handout)

Bureaucratic management Classical management Administrative management

(31) Strategic management entails all of the basic management functions: Planning, organizing, leading, and controlling. ( page no 65 on handout) Motivation, efficiency, authority and effectiveness. Planning, bossing, controlling, and organizing. Making things happen, meeting the competition, organizing the people and leading. (32) Which of the following is not a part of strategy formulation? Identifying the mission and strategic goals. Conducting competitive analysis. Developing specific strategies. Carrying strategic plans. ( page no 65 on handout) (33) Planning involves two important elements: Goals and plans. ( page no 59ss on handout) Organizing and controlling. Lead and plans. Staffing and leading. (34) Strategic goals are concerned with : Top level managers. ( page no 60 on handout) Middle level managers.

First-Line Managers. Non-managerial Employees. (35) Tactical goals and plans typically involve time periods of _________. 1 year. 1 to 3 years. ( page no 57 on handout) 3 to 5 years. More than 5 years. (36) ______________are those targets or future end results set by lower management that address specific, measurable outcomes required from the lower levels. Strategic goals. Tactical goals. Operational goals. ( page no 57 on handout) None of given options. (37) MBO was first described by _________. Peter Drucker. ( page no 63 on handout) Henry Minzberg. Henri Fayol. Fredrick W. Taylor. (38) A__________ is a prescribed series of related steps to be taken under certain recurring circumstances. Procedure. ( page no 58 on handout) Plans. Policy. Project.

(39) Tactical plans tend to be_________ specific and concrete than strategic plans. More. ( page no 57 on handout) Less. Lower. None of given options (40)A mission statement is a __________declaration of the basic, unique purpose. Narrow. Broad. ( page no 59 on handout) Contracted. None of given options.
41. __________ is the degree to which followers perceives someone as honest, competent, and able to inspire. Credibility ( page no 103 on handout) Trust Integrity Consistency 42. Women leaders tend to adopt a more ____________than men do. Autocratic Democratic ( page no 104 on handout) Directive None of above mentioned 43 __________leadership is described as going beyond charisma with the ability to create and articulate a realistic, credible, attractive vision of the future for an organization or organizational unit that grows out of and improves on the present. Charismatic Transformational

Visionary ( page no 102 on handout) None of above mentioned 44 ___________studied three leadership styles: autocratic, democratic, and laissez-faire. Ohio State Studies University of Michigan Studies University of Iowa Studies ( page no 98 on handout) Hawthorne studies 45. When a divisional structure is superimposed over a functional structure, the type of structure that results is called a _________organization. functional divisional matrix ( page no 80 on handout) product 46. The rights inherent in a managerial position to give orders and expect them to be obeyed is known as: responsibility span of control authority ( page no 76 on handout) accountability 47. An organization that groups activities according to women's footwear, men's footwear, apparel, accessories, and leggings would use ___________ departmentalization. functional product ( page no 79 on handout) customer geographic 48. One of the following is characteristic of Democratic Leaders: Unilateral decisions

Involve group in decision making ( page no 98 on handout) Dictate work method Participate only to answer question.

1. ____________skills are the skills necessary to accomplish or understand the specific kind of work done in an organization. Ans:technical 2. The final phase of the management process is_____________, or monitoring the organization's progress toward its goals Ans:controlling 2. Managers are often expected to engage in ceremonial or symbolic activities, such as presenting awards and holding retirement ceremonies. Which role do managers fill in performing these activities? Spokesperson Liaison Figurehead Resource allocater Disseminator 3. ________________ managers are responsible for hiring and developing employees. Ans:human resource 4. Managers need ___________ skills to communicate with, understand and motivate both individuals and groups. Ans;interpersonal 5. _____________, a part of the planning process, involves selecting a course of action from a set of alternatives.

Ans:decision making 6. A manager that creates an organization's goals, overall strategy, and operating policies would be performing what level of management? top management middle management first-line managemen low-level management . Store managers who oversee day-to-day operations of their respective stores, hire operating employees to staff them, and handle routine administrative duties would be an example of what level of manager? top manager middle manager first-line manager low-level manager 9. __________ is the set of processes used to get members of the organization to work together to further the interests of the organization Ans:leading 10. ______________ managers supervise and coordinate the activities of operating employees. Ans :first line 11. Jim is a manager who recently merged the company's personnel and employee training departments into a single human resources department. Which management function has Jim performed? Empowerment Quality control Leading Organizing Planning and decision making

12. __________ managers make up the relatively small group of executives who manage the overall organization Ans:top 13. Select the four decisional roles that the manager's informational roles typically lead to: Entrepreneur Disturbance handler spokesperson Resource allocator Negotiator 14. Managers who spend too much time performing the controlling function are likely to lead the organization away from its goals. True False 14. __________________ managers are not associated with any particular management specialty Asn:administrative 15. __________ managers probably make up the largest group of managers in most organizations. Ans:middle 16. _______________ managers are concerned with creating and managing the systems that create an organization's products and services Asn:operations 17. ___________ skills refer to the manager's abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others.

Asn:communicational 18. By _______________, we mean making the right decisions tand successfully iplementing them. Ans:effective 19. ________ skills depend on the manager's ability to think in the abstract. Ans:conceptual 21. Which one of the following is not one of the three interpersanol roles inherent in a manager's job? Spokesperson figurehead liaison leader 22. Which one of the fo categories of resources used by an organization.llowing is not one of the four Information Resources Human Resources Physical Resources Financial Resources Intellectual Resources 23. Select the three informational roles that flow naturally from the interpersonal roles of a manager: Negotiator Monitor Disseminator Spokesperson Bookkeeper

24. Successful managers possess ________ skills, that enable them to visualize the most appropriate response to a situation. Ans:diagnostic 25. Which of the following are the four basic activities involved in management (check all that apply): Decision Making Leading Organizing Controlling Planning 26. ___________ managers are responsible for such activities as accounting, cash management, and investments. Ans:financial 27. A __________ manager is responsible for implementing the policies and plans developed by top managers and for supervising and coordinating the activities of lowerlevel managers. top middle first-line low-level 28. Modern management has become almost completely a science and almost not at all an art/ True False 29. Which one of the following is not an example on an organization: Iowa State University Municipal Employees New York City

Royal Dutch/Shell Group Susan's Corner Grocery Store 30. An organization that manufactures its product at the lowest possible cost is by definition effective True False 31. ___________ skills refer to the manager's ability to prioritize work, to work efficiently, and to delegate appropriately. Asn:line manager 32. ____________ skills refer to the manager's ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities Ans:decision making 33. Which one of the following is not a level of management: First-line managers Low-level managers Top managers Middle managers 34. In its simplest form, ______________ means setting an organization's goals and deciding how best to achieve them Ans:planning 35. By __________, we mean using resources wisely and in a cost-effective way. Ans:effiecient 36. In the spokesperson role, managers formally relay information to people outside the organization True

False 36. A(n) ______________ is group of people working together in a structered and coordinated fashion to achieve a set of goals Company Organization Party Committee Business 38. A ______________ manager works to get consumers and clients to buy the organization's products or seervices Ans:marketing 39. Which one of the following is not an example of human resources Faculty Bookkeeper Police Officers Corporate executives They are all human resources 40. _______________ is a set of activities directed at an organization's resources, with the aim of achieving organizational goals in an efficient and effective manner. Leading Organizing Decision making Management Controlling

MULTIPLE-CHOICE QUESTIONS
For each of the following choose the answer that most completely answers the question. WHATS YOUR GLOBAL PERSPECTIVE? 28. In a global marketplace ____________. a. the entire world is a marketplace b. national borders are irrelevant c. the potential for organizations to grow expands dramatically d. all of the above (d; moderate; p. 78) In a global marketplace managers must _____________. a. deal with economic, political, and cultural differences b. expect competitors to suddenly appear at any time from any place c. not take specific differences of a local environment into consideration d. a and b (d; moderate; p. 78) One reason for parochialism in the United States is that Americans tend to study _____________ in school. a. only English b. only two languages c. English and French d. English and German (a; easy; p. 79) Which of the following describes the current state of the world use of languages? a. Germans and Italians, unlike other Europeans, only speak their native language. b. Americans tend to study many other languages in school. c. Most Japanese begin learning English by their third year of high school. d. Americans tend to think of English as the only international business language. (d; moderate; p. 79) Ethnocentric views concentrate on their _____________. a. home country b. host country c. world orientation d. racial orientation (a; easy; p. 80) _____________ is a sign that Americans suffer from parochialism. a. Multinationalism b. Monolingualism c. Geocentrism d. Polycentrism (b; moderate; p. 79) Parochialism is ____________.

29.

30.

31.

32.

33.

34.

a. acceptance of diverse points of view b. a desire to leave ones own culture for a foreign culture c. a tendency to view the world through a single perspective d. recognition of diverse religious beliefs (c; moderate; p. 79) 35. For U.S. businesses to have successful global management, which of the following statements provides the best advice? a. Americans should continue to push for the use of English only. b. Stick to your own customs to avoid embarrassing incidents. c. Make sure foreign businesspeople know you are American so they will speak to you in English. d. Develop an understanding of multicultural differences. (d; moderate; p. 80) Which of the following is the least favorable attitude for an American manager who wishes to be successful in international business? a. multicultural b. multicountry c. ethnocentric d. polycentric (c; easy; p. 80) Managers with a(n) ___________ attitude view every foreign operation as different and hard to understand. a. geocentric b. ethnocentric c. selfless d. sensitive and caring (b; moderate; p. 80) Successful global management requires an attitude that is best described as _____________ . a. ethnocentric b. parochial c. polycentric d. geocentric (d; easy; p. 80) A(n) __________ attitude is characterized by parochialism. a. geocentric b. nonlinguistic c. selfless d. ethnocentric (d; moderate; p. 80) A(n) _____________ attitude is the view that host-country managers know the best practices for running their operations. a. ethnocentric b. polycentric c. geocentric d. international (b; easy; p. 80)

36.

37.

38.

39.

40.

41.

The geocentric attitude is a _____________ view. a. national b. world c. culture-bound d. narrow (b; moderate; p. 80) _____________ management requires enhanced sensitivity to differences in national customs and practices. a. Ethnocentric b. Polycentric c. Global d. Parochial (c; moderate; p. 81) Successful global management requires ______________. a. rigid application of home-country practices b. enhanced sensitivity to differences in national customs and practices c. Americanization of foreign managers d. teaching English to foreign nationals (b; moderate; p. 81)

42.

43.

UNDERSTANDING THE GLOBAL ENVIRONMENT 44. The _____________ was created by the unification of 12 countries in Europe. a. European Common Market b. European Union c. Western European Alliance d. Trans-European Market (TEM) (b; moderate; p. 81) The _____________ is a collection of countries that use a common currency. a. European Common Market b. European Union c. Western European Alliance d. Economic and Monetary Union (EMU) (d; difficult; p. 82)

45.

46.

The principle reason for formation of the regional trading alliance in Europe was to reduce the power of the United States and _________. a. Canada b. Mexico c. Japan d. Russia (c; moderate; p. 82) The European Union covers ______________. a. border controls, taxes, and subsidies b. nationalistic policies and travel

47.

c. employment, investment, and trade d. all of the above (d; moderate; p. 82) 48. The single EU currency will be called the ____________. a. franc b. franc-mark c. pound d. euro (d; moderate; p. 82) The European Union consists of ___________. a. 12 countries b. 15 countries c. 12 countries with plans to add more d. 25 countries with plans to add 2 more in 2007 (d; difficult; p. 81) Within the members of the North American Free Trade Agreement, trade has ___________ since the treaty was signed. a. decreased initially, but increased steadily b. increased c. decreased d. increased in commodities, but decreased in manufactured goods (b; moderate; p. 82) The primary motivation for joining the European Union was ______________. a. to reduce the economic competitiveness with other parts of the world b. to increase the political power of European countries in worldwide peace negotiations c. to control tax exemptions within Europe and encourage intermember cooperation in apprehending tax cheaters d. to reassert their economic power against America and Japan (d; moderate; p. 82)

49.

50.

51.

52.

The North American Free Trade Agreement _________________. a. includes Mexico, Canada, and the United States b. includes Mexico, Brazil, and Columbia c. reduced trade between the United States and Canada d. reduced the economic power of Canada and the United States and increased the power of Mexico (a; easy; p. 82) Thirty-six countries in the Caribbean region, South America, and Central America are developing a regional trade alliance called __________. a. NAFTA b. FTAA c. Mercosur d. ASEAN (b; difficult; p. 83)

53.

54.

The overall effect of the North American Free Trade Agreement was to ________________. a. eliminate the need for import licensing b. increase the customs user fees while reducing tariffs c. reduce trade between Mexico and the United States d. increase trade between the United States and Venezuela (a; moderate; p. 83) International businesses have been around since about what date? a. the fifteenth century b. the seventeenth century c. the nineteenth century d. the twentieth century (c; difficult; p. 84) Multinational corporations (MNCs) have only become commonplace since approximately what date? a. mid-1960s b. mid-1970s c. 1945 d. mid-1980s (a; moderate; p. 84) The Association of Southeast Asian Nations includes ________________. a. the members of the European Union and India b. the members of the North American Free Trade Agreement and the European Union c. the countries of the former Soviet Union d. none of the above (d; difficult; p. 83) Multinational corporations are known for _______________. a. ethnocentric attitudes b. polycentric attitudes c. multicentric attitudes d. having their holdings in one country (a; moderate; p. 84) Transnational corporations _________________. a. maintain operations in multiple counties, but do not allow managers in each country to make their own decisions b. utilize ethnocentric attitudes in financial decisions, but favor polycentric views in human resources issues c. utilize decentralization to make decisions in management in local countries d. follow the tastes, preferences, and values of the home country (c; moderate; p. 84) When an organization drops its structure based on countries and reorganizes according to industries, it is pursuing a global organizational operation known as ___________. a. ethnocentrism b. polycentrism c. borderless organization d. multinational organization

55.

56.

57.

58.

59.

60.

(c; moderate; p. 85) 61. Borderless organizations are developed to _________________. a. increase efficiency b. increase effectiveness c. become more aggressive in international sales d. all of the above (d; moderate; p. 85) A borderless organization __________________. a. utilizes ethnocentrism b. focuses its efforts on a polycentric attitude c. globalizes by eliminating structural divisions that impose artificial geographical barriers d. is another version of a multinational organization (c; difficult; p. 85) Which of the following is a basic definition of a multinational corporation? a. a company that maintains significant operations in at least two different countries b. a company that maintains significant operations in at least two different countries but is based in one home country c. a company that maintains significant operations in at least two different countries and has multiple home bases d. a company that does business and pays taxes in at least two countries (b; difficult; p. 84) Which of the following is the basic difference between multinational corporations and transnational corporations? a. Multinational corporations typically do business with more countries than transnational corporations do. b. Transnational corporations are run by the parent company but must be owned by a local, national company. c. Decision making in transnational corporations takes place locally rather than from the home country. d. Multinational corporations pay more in taxes than transnational corporations do. (c; difficult; p. 84) Which of the following is not a feature of a transnational corporation? a. decision making takes place at the local level. b. nationals are typically hired to run operations in each country. c. marketing strategies are tailored to each countrys culture. d. products are manufactured only in the local country. (d; easy; p. 84) Which of the following types of global organizations reflects the polycentric attitude? a. multinational b. transnational c. polycentric d. regional (b; difficult; p. 84)

62.

63.

64.

65.

66.

HOW ORGANIZATIONS GO GLOBAL

67.

How many stages are there in an organizations evolution into a global organization? a. one b. two c. three d. five (c; easy; p. 85) In an attempt to be more aggressive, a company might export and import more. This is referred to as the ____________. a. Stage I of doing business globally b. Stage II of doing business in a polycentric manner c. Stage III of business incorporation d. abnormal operations for an geocentric organization (a; difficult; p. 85) In Stage II of doing business globally, an organization would ________________. a. begin importing and exporting b. begin importing, but not exporting goods c. send employees to foreign countries as salespeople or hire brokers in other countries d. keep employees in the home country (c; moderate; p. 85) In Stage III of doing business globally, an organization would utilize ______________. a. licensing and franchising b. strategic alliances c. joint ventures d. all of the above (d; moderate; p. 85)

68.

69.

70.

71.

Which of the following characterizes the first stage of an organizations global evolution? a. exporting its products to other countries b. cross-culturally training its managers c. hiring foreign brokers to represent the organizations product line d. sending domestic employees on regular foreign business trips (a; difficult; p. 85) Which of the following characterizes Stage II of an organizations global evolution? a. exporting its products to other countries b. cross-culturally training its managers c. hiring foreign representation d. licensing another firm to use its brand name (c; difficult; p. 85) Joint ventures are also termed ____________. a. licenses b. franchises c. foreign subsidiaries d. strategic alliances (d; moderate; p. 86)

72.

73.

74.

Creating a strategic alliance occurs during which stage of an organizations global evolution? a. I b. II c. III d. IV (c; easy; p. 85) A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country is called a ____________. a. franchising agreement b. joint venture c. foreign subsidiary d. brokering agreement (b; moderate; p. 86) Which of the following characterizes Stage III of an organizations global evolution? a. Cross-culturally training its managers b. Sending domestic employees on regular foreign business trips c. Hiring foreign brokers to represent the organizations product line d. Management may create a joint venture (d; difficult; p. 86) _____________ present(s) the greatest risk to an organization going international. a. Joint ventures b. Strategic alliances c. Licensing d. Foreign subsidiaries (d; difficult; p. 86)

75.

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77.

MANAGING IN A GLOBAL ENVIRONMENT 78. Which of the following is not listed by your textbook as an area of significant challenge for an American manager working in a foreign country? a. legal environment b. economic environment c. cultural environment d. religious environment (d; difficult; p. 87) From an economic standpoint, a threat to the global manager is _________________. a. widely fluctuating inflation rates in foreign countries b. marginal revenues exceeding marginal costs c. a stable exchange rate between currencies in various countries d. all of the above (a; easy; p. 87) Compared to many other countries, the U.S. legalpolitical environment is considered ____________. a. radical b. stable

79.

80.

c. unstable d. fixed (b; moderate; p. 87) 81. Compared to many other countries, changes to the U.S. legalpolitical environment are considered ___________. a. very fast and effective b. fast, but not efficient c. radical d. slow (d; moderate; p. 87) The reason that a nations cultural differences are the most difficult to gain information about is because __________________. a. people tend to be sensitive about their own culture b. providing this information to foreign organizations reduces a competitive business advantage c. there is little written on the issue d. natives are least capable of explaining the unique characteristics of their own culture (d; difficult; p. 89) According to the textbook, the most valuable framework to help managers better understand differences between national cultures was developed by ______________. a. Milton Friedman b. Michael Porter c. Geert Hofstede d. Abraham Maslow (c; moderate; p. 90)

82.

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_____________ is a cultural dimension in which people expect others in their group to look after them and protect them when they are in trouble. a. Power distance b. Collectivism c. Quantity of life d. Uncertainty avoidance (b; easy; p. 90) Which of the following would you find in a country with a high power distance? a. Society accepts narrow differences in organizations. b. Title carries little power, but status power is high. c. There is little respect for those in authority. d. In a meeting, organizational representatives have widely different status and titles. (d; moderate; p. 90) _____________ is a cultural measure of the degree to which people will tolerate risk and unconventional behavior. a. Power distance b. Uncertainty avoidance c. Quantity of life d. Quality of life

85.

86.

(b; easy; p. 90) 87. According to the textbook, organizations in which of the following cultures are likely to have formal rules and little tolerance for unusual ideas and behaviors? a. high power distance b. low power distance c. high uncertainty avoidance d. low uncertainty avoidance (c; easy; p. 90) In a society with a large ______________, titles, rank, and status carry a lot of weight. a. collectivism b. power distance c. compassionate conservatism d. uncertainty avoidance (b; difficult; p. 90) _____________ is a national culture attribute describing the extent to which societal values are characterized by assertiveness and materialism. a. Power distance b. Uncertainty avoidance c. Quantity of life d. Quality of life (c; moderate; p. 90)

88.

89.

90.

_____________ is a national culture attribute that reflects the emphasis placed on relationships and concern for others. a. Power distance b. Uncertainty avoidance c. Quantity of life d. Quality of life (d; moderate; p. 90) Which of the following is most like the United States in terms of power distance, uncertainty avoidance, and quantity-of-life dimensions? a. Singapore b. Great Britain c. Portugal d. Pakistan (b; easy; p. 90)

91.

SCENARIOS AND QUESTIONS


For each of the following choose the answer that most completely answers the question. WHATS YOUR GLOBAL PERSPECTIVE? First Visit Abroad (Scenario) Bill Sanderson is halfway over the Atlantic and is excited about his first European business trip. His goal

is to scout out potential locations and basically provide input on how the company should proceed with expansion abroad. There are many options, including maintaining the business head office in the United States and sending over company representatives when necessary or developing a separate company in Europe and hiring locals as managers. In any case, he is confident about this trip but is somewhat concerned about the strange habits and foreign languages (if only they would just speak English like everyone else!).

92.

Bills tendency to view the world only through his U.S.-based eyes and perspectives is an international business problem known as which of the following? a. nondiversity b. discrimination c. parochialism d. monolingualism (c; moderate; p. 79) If Bills company decided to open another company in France but maintain the base in the United States, it would be considered _________________. a. a transnational corporation b. an international company c. a regional trade alliance d. a multinational corporation (d; moderate; p. 84)

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94.

If Bills company decides to open a completely new operation in Germany, tailoring the company to local customs and marketing strategies and hiring local managers, they would be considered _______________. a. a transnational corporation b. an international company c. a regional trade alliance d. a multinational corporation (a; moderate; p. 84) If Bills company eliminated country-designated locations and reorganized based on industry groups, it would best be considered a __________________. a. borderless organization b. transnational organization c. global business alliance d. multinational corporation (a; moderate; p. 85) If Bill is to become successful as a global manager, he must _______________. a. attempt to change other cultures to American ways b. learn and accept other cultures c. compete internationally but remain in the United States d. learn to manipulate other business cultures (b; moderate; p. 85)

95.

96.

Jane wants to expand her career opportunities in international operations of a company. She is 19 years old and currently attends a university. She has only lived in her current country and has never traveled to foreign countries. 97. Jane decides to enroll in a foreign language class to help her overcome her ______________. a. parochialism b. ethnocentric attitude c. monolingualism d. polycentric attitudes (c; moderate; p. 79) In talking with her advisor at the university, Jane decides she probably has a(n) __________ attitude, as she has never traveled abroad and only relates well to people from her home country. a. parochialistic b. polycentric c. ethnocentric d. geocentric (c; moderate; p. 80)

98.

Jane becomes involved with an international student association to give her experiences that will allow her to understand the views of students from other countries. She is trying to become more _________ in her attitude. a. parochialistic b. polycentric c. ethnocentric d. geocentric (d; difficult; p. 80) 100. Jane selects a class that helps to learn about licensing, franchises, strategic alliances, and joint ventures. She hopes to find an employer who is or plans to move toward being in _________ of their global business operations. a. Stage I b. Stage II c. Stage III d. Stage IV (c; moderate; p. 85) 101. In the university catalog she finds a class description that includes the acronyms, EU, NAFTA, FTAA, and ASEAN. These refer to ________________. a. regional trade alliances b. foreign airlines c. soccer teams in Europe d. new multinational corporations (a; difficult; p. 81) Theodore and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, but in looking for opportunities in the future, they decide to explore international operations. What is Your Global Perspective?

99.

102. Theodore and James feel that people in foreign countries will not have the skills, expertise, knowledge, or experience to write, sell, or install the software. They have a(n) _________ attitude. a. self-righteous b. ethnocentric c. polycentric d. geocentric (b; moderate; p. 80) 103. After Theodore and James began their companys operations in the United States, they realized that a regional trade agreement existed that would allow them to avoid tariffs in ___________. a. Japan and Germany b. Europe c. Western, but not Eastern Europe d. Mexico and Canada (d; difficult; p. 82) 104. The international operations in this firm grew. Theodore and James have come to see that decentralized management using foreign nationals to run operations in their home countries works well. Their firm has developed into a(n) ____________ organization. a. transnational b. multinational c. borderless d. international (a; moderate; p. 84) 105. A new and exciting opportunity has appeared that enables Theodore and James to form a joint venture with an insurance company in Japan. This will move their firm into a global role of a ___________ organization. a. Stage I b. Stage II c. Stage III d. multinational (c; difficult; p. 85) 106. Theodore and James decide to allow a firm in Europe to use the rights to their software, its brand name, and software specifications in return for a lump-sum payment. This agreement is known as a ________________. a. strategic alliance b. licensing agreement c. franchise d. foreign subsidiary (c; difficult; p. 86) UNDERSTANDING THE GLOBAL ENVIRONMENT A Foreign Alliance Talk (Scenario) As manager of the international department for your company, you have been asked by the local Chamber of Commerce to deliver a speech on foreign trade. The Chamber president even goes so far as to say and be sure to include the EU, NAFTA, and all that stuff because were afraid that Ross Perot is rightall the good jobs will leave the United States. As you pour over your notes, you are trying to decide what is the

best information you can present in the allotted half hour. 107. One of the hottest topics of your talk will be NAFTA, an issue that has the attention of the local business community. You realize that the results are not in, but one outcome that seems certain is that ______________. a. the United States will definitely come out the worst of the three nations b. Canada will profit the most in this arrangement c. the expansion of NAFTA would be essential to North Americas future competitiveness and economic power d. U.S. high-tech companies, such as computer manufacturers, will be hit hard (c; difficult; p. 82) 108. You will close by giving them a likely view of the future of NAFTA, which suggests that _______________. a. it will likely disband by the year 2010 b. it is expected to merge with the EU by 2020 c. other Latin American counties will soon become partners d. Cuba is the next partner in NAFTA (c; moderate; p. 83)

MANAGING IN A GLOBAL ENVIRONMENT A Different View (Scenario) John has done well in his company. In only 5 years, he has risen to the position of divisional manager. However, he knows that in order to rise to the level of senior management, he needs to spend some time managing abroad in his companys foreign subsidiaries. Although he has traveled to foreign countries on business and vacations, he has never lived abroad and wonders what differences he would find. He is considering applying for a new foreign-based position, but first wants to learn about some basic differences between managing in the United States and managing in a foreign country. He researched the topic of international management and found many helpful facts about countries and their people. 109. John found out that, compared to managers in many other countries, U.S. managers are accustomed to legal and political systems that are ____________. a. stable b. fixed c. boring d. extreme (a; easy; p. 87) 110. John found out that wealthier nations, such as the United States, tend to ______________. a. have high uncertainty avoidance b. be individualistic c. be collectivist d. have large power distance (b; moderate; p. 90) 111. John also found out that in some countries, such as Venezuela, titles, rank, and status carry a lot of weight. These countries have a large _________________. a. uncertainty avoidance b. quality of life c. quantity of life d. power distance (d; moderate; p. 90) 112. John knew that he did not want to manage in a country where the people have high anxiety, nervousness, and stress. He will, therefore, try to avoid countries characterized as having high _______________. a. uncertainty avoidance b. quality of life c. quantity of life d. power distance (a; moderate; p. 90) The European Expansion (Scenario) You have been hired by a company to look at the ways to best move the company into the European market but you have to first determine what kind of company you are dealing with.

113. If the company that has hired you is primarily used by manufacturing organizations, it is a ___________. a. licensing company b. franchising company c. strategic alliance d. joint venture (a; moderate; p. 86) 114. If the company that has hired you is primarily used by service organizations, it is a ______________. a. licensing company b. franchising company c. strategic alliance d. joint venture (b; moderate; p. 86) 115. If the company that has hired you is really a partnership between an organization and a foreign company in which both share resources and knowledge in developing new products, than it is a _______________. a. licensing company b. franchising company c. strategic alliance d. joint venture (c; moderate; p. 86)

The Overseas Assignment (Scenario) Christopher has a degree in business administration and has worked for a major corporation for 5 years. He is offered a chance to work in another country. 116. Through research on the Internet, Christopher finds that in this countrys social framework, people are expected to look after others in their family (or organization) and protect them when they are in trouble. This society tends to support ______________. a. collectivism b. parochialism c. individualism d. monotheism (a; difficult; p. 90) This new countrys people are favorably influenced by Christophers job title, and the status given by his experience of having worked in the home office for 5 years. This country has a large _______________. a. interest in attracting foreign executives b. sense of uncertainty avoidance c. uncertainty avoidance d. power distance (d; difficult; p. 90)

117.

118.

Through talking to executives in the international division, Christopher realizes that his home country has the highest individualism, low power distance and uncertainty avoidance, and a high quantity of life. He probably lives in _____________. a. Great Britain b. Japan c. United States d. Canada (c; difficult; p. 90)

ESSAY QUESTIONS
WHATS YOUR GLOBAL PERSPECTIVE? 119. In a short essay, define parochialism. Next, discuss why parochialism is a problem for U.S. managers and discuss reasons why it is important to overcome parochialism in todays business environment. Answer Parochialism is when a person views the world solely though his or her own eyes and perspectives. People with a parochial attitude do not recognize that other people have different ways of living and working. Parochialism is a significant obstacle for many managers working in a global business world. If managers fall into the trap of ignoring foreign values and customs and rigidly apply an attitude of ours is better than theirs to foreign cultures, they will find it difficult to compete with other managers and organizations around the world that are seeking to understand foreign customs and market differences. (easy; p. 79) 120. In a short essay, list and discuss the three attitudes managers might have toward international business. Answer a. Ethnocentric attitudethe parochialistic belief that the best work approaches and practices are those of the home country. Managers with an ethnocentric attitude believe that people in foreign countries do not have the needed skills, expertise, knowledge, or experience to make the best business decisions as people in the home country do. They wouldnt trust foreign employees with key decisions. b. Polycentric attitudethe view that managers in the host country know the best work approaches and practices for running their business. Managers with a polycentric attitude view every foreign operation as different and hard to understand. Thus, these managers are likely to leave their foreign facilities alone and let foreign employees figure out how best to do things. c. Geocentric attitudethis is a world-oriented view that focuses on using the best approaches and people from around the globe. Managers with this type of attitude believe that its important to have a global view both at the organizations headquarters in the home country and in the various foreign work facilities. Major issues and decisions are viewed globally by looking for the best approaches and people regardless of origin. (moderate; p. 80)

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