Archive for August 2018

The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction.

The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction.



A) logical; systematic; subjective
B) intuitive; disorganized; subjective
C) logical; systematic; objective
D) intuitive; disorganized; objective
E) inconsistent; systematic; subjective


Answer: C) logical; systematic; objective

Organizations should take a(n) ________ approach in their industry.

Organizations should take a(n) ________ approach in their industry.



A) adversarial rather than a collegial
B) collegial rather than an adversarial
C) reactive rather than a proactive
D) proactive rather than a reactive
E) cooperative rather than a competitive


Answer: D) proactive rather than a reactive

The strategic-management process is becoming more widely used by

The strategic-management process is becoming more widely used by



A) small firms.
B) nonprofit institutions.
C) governmental organizations.
D) multinational conglomerates.
E) all of the above


Answer: E) all of the above

Both business and military organizations must ________ and ________ to be successful.

Both business and military organizations must ________ and ________ to be successful.



A) be impervious to change; continually improve
B) adapt to change; continually improve
C) shun change; stay the course
D) be impervious to change; stay the course
E) none of the above


Answer: B) adapt to change; continually improve

Business or military success is

Business or military success is



A) generally the happy result of accidental strategies.
B) undermined by the element of surprise.
C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.
D) unrelated to external conditions.
E) none of the above.


Answer: C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy."

According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy."



A) competitive advantage
B) war
C) strategy
D) formulation
E) business


Answer: C) strategy

Which of the following statements is FALSE?

Which of the following statements is FALSE?



A) No organization can pursue all the strategies that potentially could benefit the firm.
B) Most organizations today recognize that strategic-management concepts and techniques can enhance the effectiveness of decisions.
C) A key role of strategists is to facilitate continuous organizational learning and change.
D) Effective strategic planning should accept the assumptions underlying the current corporate strategy.
E) Even the most technically perfect strategic plan will serve little purpose if it is not implemented.


Answer: D) Effective strategic planning should accept the assumptions underlying the current corporate strategy.

What is NOT a guideline given for effective strategic planning?

What is NOT a guideline given for effective strategic planning?



A) Continually strengthen the "good ethics is good business" policy.
B) It should not include jargon or arcane planning language.
C) It should not be too formal, predictable, or rigid.
D) It should welcome bad news.
E) It should be controlled by "technicians."


Answer: E) It should be controlled by "technicians."

All of the following are guidelines for effective strategic planning EXCEPT

All of the following are guidelines for effective strategic planning EXCEPT



A) it should be simple and nonroutine.
B) it should be a learning process for all managers and employees.
C) it should be a paper process more than a people process.
D) it should not disregard qualitative information.
E) it should not be a formal system for control.


Answer: C) it should be a paper process more than a people process.

Which of the following statements is NOT true?

Which of the following statements is NOT true?



A) Open-mindedness is an important guideline for effective strategic management.
B) Strategic management must become a self-perpetuating bureaucratic mechanism.
C) No organization has unlimited resources.
D) Strategic decisions require trade-offs.
E) Strategic management must be a self-reflective learning process.


Answer: B) Strategic management must become a self-perpetuating bureaucratic mechanism.

Which of the following is NOT a pitfall an organization should avoid in strategic planning?

Which of the following is NOT a pitfall an organization should avoid in strategic planning?



A) Failing to communicate the plan to employees
B) Involving all managers rather than delegating planning to a "planner"
C) Top managers not actively supporting the strategic-planning process
D) Doing strategic planning only to satisfy accreditation or regulatory requirements
E) Failing to create a collaborative climate supportive of change


Answer: B) Involving all managers rather than delegating planning to a "planner"

All of these are pitfalls an organization should avoid in strategic planning EXCEPT

All of these are pitfalls an organization should avoid in strategic planning EXCEPT



A) using plans as a standard for measuring performance.
B) using strategic planning to gain control over decisions and resources.
C) failing to involve key employees in all phases of planning.
D) too hastily moving from mission development to strategy formulation.
E) being so formal in planning that flexibility and creativity are stifled.


Answer: A) using plans as a standard for measuring performance.

Annually, ________ businesses in the U.S. fail.

Annually, ________ businesses in the U.S. fail.



A) exactly 100
B) less than 1,000
C) about 10,000
D) more than 100,000
E) almost 10 million


Answer: D) more than 100,000

How do line managers become "owners" of the strategy?

How do line managers become "owners" of the strategy?



A) By attending top manager meetings
B) By executing plans formulated by other people
C) By involvement in the strategic-management process
D) By becoming a shareholder of the firm
E) By buying off top managers


Answer: C) By involvement in the strategic-management process

The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as

The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as



A) authoritarianism.
B) proaction.
C) empowerment.
D) transformation.
E) delegation.


Answer: C) empowerment.

Which of the following is part of the strategic management model?

Which of the following is part of the strategic management model?



A) Measure and evaluate performance
B) Develop mission and vision statements
C) Establish long-term objectives
D) Implement strategies
E) All of the above


Answer: E) All of the above

The strategic-management process

The strategic-management process



A) occurs once a year.
B) is a semiannual process.
C) is a continuous process.
D) applies mostly to companies with sales greater than $100 million.
E) applies mostly to small businesses.


Answer: C) is a continuous process.

Generally, external opportunities and threats are

Generally, external opportunities and threats are



A) uncontrollable by a single organization.
B) unable to have a significant impact on an organization.
C) not worth monitoring and evaluating.
D) key functions in strategy implementation.
E) key functions in strategy exploitation.


Answer: A) uncontrollable by a single organization.

An organization's vision statement

An organization's vision statement



A) is a constant reminder to its employees of why the organization exists.
B) broadly charts the future direction of an organization.
C) addresses the basic question: "What is our business?"
D) answers the question: "What do we want to become?"
E) none of the above


Answer: D) answers the question: "What do we want to become?"

Which is generally considered to be the first step in strategic planning?

Which is generally considered to be the first step in strategic planning?



A) Developing a vision statement
B) Establishing goals and objectives
C) Making a profit
D) Developing a mission statement
E) Determining opportunities and threats


Answer: A) Developing a vision statement

There is a dramatic shift in mass retailing to

There is a dramatic shift in mass retailing to



A) "trading up" and taking customers from more exclusive stores.
B) selling only the most expensive merchandise.
C) opening dramatically larger supercenters.
D) operating stores with less square footage.
E) cutting back on their online presence.


Answer: D) operating stores with less square footage.

The Internet has transferred power from ________ to ________.

The Internet has transferred power from ________ to ________.



A) businesses, individuals
B) governments, businesses
C) individuals, businesses
D) businesses, governments
E) individuals, governments


Answer: A) businesses, individuals

The fact that Apple has no manufacturing facilities of its own

The fact that Apple has no manufacturing facilities of its own



A) has caused it to build up massive debt on its balance sheet.
B) has enabled it to remain financially lean with virtually no long-term debt.
C) has been problematic for Apple in terms of debt.
D) illustrates that having more fixed assets than rival firms can provide major competitive advantages in a global recession.
E) means that it is in the same position as Sony.


Answer: B) has enabled it to remain financially lean with virtually no long-term debt.

In mass retailing, big-box companies like Walmart, Best Buy, and Sears are

In mass retailing, big-box companies like Walmart, Best Buy, and Sears are



A) gaining competitive advantage over smaller stores.
B) participating in a dramatic shift to becoming bigger.
C) increasing the square-footage of their retail locations.
D) finding that less brick and mortar is better.
E) noticing a sharp decline in online purchases.


Answer: D) finding that less brick and mortar is better.

In recent years, the speedy flow of information through technology has

In recent years, the speedy flow of information through technology has



A) made it harder for people worldwide to see how others work and live.
B) strengthened national boundaries and made countries more self-contained.
C) created a borderless world with global competitors, customers, and citizens.
D) ensured that the U.S. is unrivaled by other companies in all industries.
E) made the real flow of financial activity align with political boundaries between countries.


Answer: C) created a borderless world with global competitors, customers, and citizens.

Which statement best describes intuition?

Which statement best describes intuition?



A) It alone should be used in decision-making.
B) It represents a minor factor in decision-making integrated with analysis.
C) It should be coupled with analysis in decision-making.
D) It is better than analysis in decision-making.
E) It is management by ignorance.


Answer: C) It should be coupled with analysis in decision-making.

Strategy evaluation is necessary because

Strategy evaluation is necessary because



A) internal and external factors are constantly changing.
B) the SEC requires strategy evaluation.
C) success today is a guarantee of success tomorrow.
D) the IRS requires strategy evaluation.
E) firms have limited resources.


Answer: A) internal and external factors are constantly changing.

______ is NOT a strategy-implementation activity.

______ is NOT a strategy-implementation activity.



A) Taking corrective actions
B) Establishing annual objectives
C) Devising policies
D) Allocating resources
E) Motivating employees


Answer: A) Taking corrective actions

Which phase of strategic management is called the action phase?

Which phase of strategic management is called the action phase?



A) Strategy formulation
B) Strategy implementation
C) Strategy evaluation
D) Competing advantages
E) Measuring performance


Answer: B) Strategy implementation

An important activity in ________ is taking corrective action.

An important activity in ________ is taking corrective action.



A) strategy evaluation
B) strategy implementation
C) strategy formulation
D) strategy leadership
E) all of the above


Answer: A) strategy evaluation

Sometimes ________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation.

Sometimes ________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation.



A) strategic planning; strategic management
B) strategic planning; strategic processing
C) strategic management; strategic planning
D) strategic management; strategic processing
E) strategic implementation; strategic focus


Answer: C) strategic management; strategic planning

What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?

What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?



A) Strategy formulation
B) Strategy evaluation
C) Strategy implementation
D) Strategic management
E) Strategic leading


Answer: D) Strategic management

The goal of strategic management is to

The goal of strategic management is to



A) achieve competitive advantage.
B) maintain competitive advantage.
C) achieve and maintain competitive advantage.
D) eliminate competitive advantage.
E) eliminate and abolish competitive advantage.


Answer: C) achieve and maintain competitive advantage.

Strategic Management Chapter 1 True and False


  1. Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research and development, and information systems to achieve organizational success.

    Answer: True
  2. Optimizing for tomorrow the trends of today is the purpose of strategic management.

    Answer: False
  3. Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.

    Answer: False
  4. The decision to expand or diversify operations is a strategy-formulation issue.

    Answer: True
  5. The terms strategic management and strategic planning are synonymous in this text.

    Answer: True
  6. A vision statement identifies the scope of a firm's operations in product and market terms.

    Answer: False
  7. Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment, and sacrifice.

    Answer: True
  8. The final stage in strategic management is strategy implementation.

    Answer: False
  9. Formulation, implementation, and evaluation of strategy activities occur at three hierarchical levels in a large organization: corporate, divisional or strategic business unit, and functional.

    Answer: True
  10. One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the basis for current strategies.

    Answer: True
  11. An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.

    Answer: True
  12. Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.

    Answer: True
  13. Analytical and intuitive thinking should complement each other.

    Answer: True
  14. According to Albert Einstein, "Knowledge is far more important than intuition."

    Answer: False
  15. Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother-me-with-the-facts mode."

    Answer: False
  16. By occasionally monitoring external events, companies should be able to identify when change is required.

    Answer: False
  17. Firms, like organisms, must be "adept at adapting" or they will not survive.

    Answer: True
  18. U.S. firms are not being challenged in the computer industry.

    Answer: False
  19. Anything the firm does especially well compared to rival firms could be considered a competitive advantage.

    Answer: True
  20. Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage indefinitely.

    Answer: False
  21. Newspaper companies in the United States provide a good example of how a company can sustain a competitive advantage over the long-term.

    Answer: False
  22. Although e-commerce has increased in popularity, it has actually led to increases in company expenses.

    Answer: False
  23. While the number of people shopping online has increased, the average amount spent online has decreased.

    Answer: False
  24. One of the ways in which the Internet has transferred power from businesses to individuals is by making comparison-shopping quick and easy.

    Answer: True
  25. Most traditional retailers have tried in vain to use their online sales to boost in-store sales.

    Answer: False
  26. In order for a firm to achieve sustained competitive advantage, a firm must continually adapt to changes in external trends and events and effectively formulate, implement, and evaluate strategies that capitalize upon those factors.

    Answer: True
  27. Strategists are usually found in higher levels of management and have considerable authority for decision-making in the firm.

    Answer: True
  28. The middle manager is the most visible and critical strategic manager.

    Answer: False
  29. All strategists have similar attitudes, values, ethics and concerns for social responsibility.

    Answer: False
  30. A vision statement answers the question, "What is our business?" whereas a mission statement answers, "What do we want to become?"

    Answer: False
  31. In the last five years, the position of chief strategy officer (CSO) has diminished so drastically that today it is almost unheard of for companies to have such a position on staff.

    Answer: False
  32. A clear mission statement describes the values and priorities of an organization.

    Answer: True
  33. Strengths and weaknesses are determined relative to competitors.

    Answer: True
  34. In a multidivisional firm, objectives should be established for the overall company but not for each division.

    Answer: False
  35. Objectives should be measurable, challenging, reasonable, consistent, and clear.

    Answer: True
  36. Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives.

    Answer: False
  37. Annual objectives are especially important in strategy formulation.

    Answer: False
  38. According to research, a healthier workforce can more effectively and efficiently implement strategies.

    Answer: True
  39. Identifying an organization's existing vision, mission, objectives, and strategies is the final step for the strategic management process.

    Answer: False
  40. Once an effective strategy is designed, modifications are rarely required.

    Answer: False
  41. Application of the strategic-management process is typically more formal in larger and well-established organizations.

    Answer: True
  42. Commitment and understanding are the most important benefits of strategic management.

    Answer: True
  43. The best thing strategists can do is develop strategic plans themselves and then present them to operating managers to execute.

    Answer: False
  44. Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry.

    Answer: True
  45. Low-performing firms typically underestimate their competitor's strengths and overestimate their own firm's strengths.

    Answer: True
  46. According to Greenley, strategic management provides increased discipline, enhanced communication, and more effective allocation of time and resources.

    Answer: True
  47. The lack of monetary rewards is one reason managers do not engage in strategic planning.

    Answer: True
  48. Crises and firefighting in an organization give managers the extra time needed to plan ahead.

    Answer: False
  49. Making many intuitive decisions that conflict with the formal plan is one pitfall to avoid in strategic planning.

    Answer: True
  50. Managers must be very formal in strategic planning because formality fosters flexibility and creativity.

    Answer: False
  51. Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself.

    Answer: False
  52. Strategic-management must be a self-reflective learning process that familiarizes managers and employees in the organization with key strategic issues and feasible alternatives for resolving those issues.

    Answer: True
  53. The most effective strategic management is ritualistic, predictable, and formal.

    Answer: False
  54. For the strategic planning process to be effective, organizations must continually strengthen the "good ethics is good business" policy.

    Answer: True
  55. Military success is usually the happy result of accidental strategies, but business success is the product of continuous attention to changing conditions and insightful adaptations to those conditions.

    Answer: False
  56. In most respects, business strategy is very different than military strategy.

    Answer: False
  57. The element of surprise provides great competitive advantages in both military and business strategy.

    Answer: True
  58. Both military and business strategy are formulated, implemented, and evaluated with an assumption of competition.

    Answer: False
  59. Superior strategy formulation is well and good, but it cannot overcome an opponent's superiority in numbers and resources.

    Answer: False
  60. All firms have a strategy, even if it is informal, unstructured, and sporadic.

    Answer: True
  61. Firms can be more proactive with strategic management.

    Answer: True

The marketing department at State College was nearly $8,000 under budget last year due to a variety of cost-cutting measures. This year 50% of the savings were returned to the department to spend as desired, as a form of

The marketing department at State College was nearly $8,000 under budget last year due to a variety of cost-cutting measures. This year 50% of the savings were returned to the department to spend as desired, as a form of 




A. pay for performance.
B. pay for knowledge.
C. bonus.
D. profit sharing.
E. gainsharing.


Answer: E. gainsharing.

Mark's employer passes out checks at the end of each quarter, representing an equitable portion of 5% of the company's pretax profits for the previous period. This is known as

Mark's employer passes out checks at the end of each quarter, representing an equitable portion of 5% of the company's pretax profits for the previous period. This is known as 



A. pay for performance.
B. pay for knowledge.
C. a bonus.
D. profit sharing.
E. gainsharing.


Answer: D. profit sharing.

Which of the following is not an advisable criterion for an effective incentive plan?

Which of the following is not an advisable criterion for an effective incentive plan? 



A. The rewards are believable.
B. The rewards are linked to performance.
C. The rewards satisfy individual needs.
D. The rewards require rarely attainable performance.
E. The rewards are agreed on by the manager and employees.


Answer: D. The rewards require rarely attainable performance.

When using punishment, a manager should

When using punishment, a manager should 



A. ignore undesirable behaviors.
B. save reprimands until the end of the workday, or preferably before a weekend.
C. do it in conjunction with positive reinforcement.
D. make sure that other employees witness the punishment.
E. punish even minor infractions, to appear consistent.


Answer: C. do it in conjunction with positive reinforcement.

In using reinforcement, a manager should

In using reinforcement, a manager should 



A. avoid using punishment.
B. reward both desired and undesired behavior.
C. give all subordinates the same rewards to ensure fairness.
D. save rewards for weekly or monthly celebrations.
E. clearly communicate the desired behavior.


Answer: E. clearly communicate the desired behavior.

It has been seven quarters since any employee has received a bonus at R & G Mills, so now the possibility of getting one does not seem to be motivating the workers any longer. In this case, management has inadvertently applied

It has been seven quarters since any employee has received a bonus at R & G Mills, so now the possibility of getting one does not seem to be motivating the workers any longer. In this case, management has inadvertently applied 



A. expectancy.
B. negative reinforcement.
C. extinction.
D. intrinsic motivation.
E. punishment.


Answer: C. extinction.

The theory that attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated while behavior with negative consequences tends not to be repeated, is called

The theory that attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated while behavior with negative consequences tends not to be repeated, is called 



A. reinforcement theory.
B. equity theory.
C. expectancy theory.
D. acquired needs theory.
E. two-factor theory.


Answer: A. reinforcement theory.

The motivating potential score is calculated as part of using

The motivating potential score is calculated as part of using



A. reinforcement theory.
B. McClelland's acquired needs theory.
C. the job characteristics model.
D. goal-setting theory.
E. equity theory.


Answer: C. the job characteristics model.

As a maintenance person for the Air Force, Craig services aircraft engines, which protects the lives and safety of military personnel and their ability to conduct missions. Craig's job has a high level of

As a maintenance person for the Air Force, Craig services aircraft engines, which protects the lives and safety of military personnel and their ability to conduct missions. Craig's job has a high level of 



A. autonomy.
B. task identity.
C. skill variety.
D. task significance.
E. context satisfactions.


Answer: D. task significance.

Vanessa runs a flower shop. She recently made some changes so that one employee answers phones and does paperwork, while another creates arrangements, and a third packages and delivers the arrangements. Previously, each employee was responsible for the order from the phone call through the delivery. Vanessa's job redesign has

Vanessa runs a flower shop. She recently made some changes so that one employee answers phones and does paperwork, while another creates arrangements, and a third packages and delivers the arrangements. Previously, each employee was responsible for the order from the phone call through the delivery. Vanessa's job redesign has 



A. increased task identity.
B. decreased task identity.
C. increased task significance.
D. decreased task significance.
E. decreased autonomy.


Answer: B. decreased task identity.

According to the job characteristics model, the core job characteristics of skill variety, task identity, and task significance combine to affect

According to the job characteristics model, the core job characteristics of skill variety, task identity, and task significance combine to affect 



A. knowledge of results.
B. meaningfulness of work.
C. autonomy of work.
D. responsibility for results.
E. feedback from others.


Answer: B. meaningfulness of work.

Gwen's job as an accounting assistant was recently modified to include reconciling of bank accounts and delivering checks to the bank, two tasks previously done by the accounting manager. This increase in responsibility would best be described as

Gwen's job as an accounting assistant was recently modified to include reconciling of bank accounts and delivering checks to the bank, two tasks previously done by the accounting manager. This increase in responsibility would best be described as 



A. job development.
B. job enlargement.
C. job satisficing.
D. job design.
E. vertical loading.


Answer: E. vertical loading.

Job ______ is the opposite of job.

Job ______ is the opposite of job.



A. rotation; enrichment.
B. rotation; enlargement.
C. loading; enrichment.
D. simplification; enrichment.
E. simplification; enlargement.


Answer: E. simplification; enlargement.

Research shows that simplified jobs lead to

Research shows that simplified jobs lead to 



A. job satisfaction.
B. poor mental health.
C. a sense of accomplishment.
D. a sense of personal growth.
E. decreased worker productivity.


Answer: B. poor mental health.

Which of the following is the best statement of a goal?

Which of the following is the best statement of a goal? 



A. Give your very best effort.
B. Get through most of those reports by 9/1.
C. Reduce production errors by 10 percent by the end of the quarter.
D. Increase customer retention.
E. Be late to work less often.


Answer: C. Reduce production errors by 10 percent by the end of the quarter.

According to goal-setting theory, which of the following is necessary for goals to create high motivation and performance?

According to goal-setting theory, which of the following is necessary for goals to create high motivation and performance? 



A. Setting general goals that will work for multiple employees.
B. Predetermining acceptable rewards for meeting goals.
C. Setting goals that fulfill self-actualization needs.
D. Reinforcing of desired behaviors.
E. Setting goals linked to an action plan.


Answer: E. Setting goals linked to an action plan.

When using goal-setting theory to motivate employees, managers should

When using goal-setting theory to motivate employees, managers should 



A. set targets that are just out of employees' reach.
B. help workers understand and accept the goals.
C. set general goals that are emotionally appealing.
D. hold employees responsible for getting their own feedback.
E. set goals that are easily achievable.


Answer: B. help workers understand and accept the goals.

Chad was interviewing for jobs, and the HR manager at one firm told him that the company pays the total health insurance costs for a family of four. As a single man, this benefit did not seem especially important to him right now. Here, Chad is low on the ______ element of the expectancy theory.

Chad was interviewing for jobs, and the HR manager at one firm told him that the company pays the total health insurance costs for a family of four. As a single man, this benefit did not seem especially important to him right now. Here, Chad is low on the ______ element of the expectancy theory. 



A. valence
B. instrumentality
C. outcomes
D. expectancy
E. significance


Answer: A. valence

At his review last year, Ryan was promised a big raise if he met his production goals. Raises were included in today's paychecks, and despite that Ryan has met all of his goals, he only received a cost- of-living raise. In the future, Ryan's ______ will probably be.

At his review last year, Ryan was promised a big raise if he met his production goals. Raises were included in today's paychecks, and despite that Ryan has met all of his goals, he only received a cost- of-living raise. In the future, Ryan's ______ will probably be.




A. instrumentality; low.
B. valence; low.
C. expectancy; low.
D. instrumentality; high.
E. expectancy; high.


Answer: A. instrumentality; low.

After struggling with the training, Sachin is unsure whether he can complete the end-of-year financial reporting with minimal errors in the time allotted at his new job. In this case, Sachin is low on the ______ element of expectancy theory.

After struggling with the training, Sachin is unsure whether he can complete the end-of-year financial reporting with minimal errors in the time allotted at his new job. In this case, Sachin is low on the ______ element of expectancy theory. 



A. valence
B. expectancy
C. outcomes
D. instrumentality
E. performance


Answer: B. expectancy

Brady went to his boss Lynn to complain that he got the same bonus this quarter as everyone else, despite the longer hours he's been putting in and his higher level of experience and efficiency. If Lynn can't change the bonuses, she should

Brady went to his boss Lynn to complain that he got the same bonus this quarter as everyone else, despite the longer hours he's been putting in and his higher level of experience and efficiency. If Lynn can't change the bonuses, she should 



A. tell Brady "That's just the way bonuses are given."
B. suggest that Brady take this up with her boss.
C. expect that Brady will reduce his hours.
D. start documenting Brady's complaints for future disciplinary action.
E. expect that Brady's performance will improve.


Answer: C. expect that Brady will reduce his hours.

In equity theory, employees are motivated to

In equity theory, employees are motivated to 




A. work harder when they have more freedom.
B. resolve feelings of injustice.
C. correct themselves when they aren't working hard enough.
D. blame others when they miss work or fail at tasks.
E. work just hard enough to get what they want.


Answer: B. resolve feelings of injustice.

According to Herzberg's theory, the first thing managers of employees who dislike their jobs should dosto

According to Herzberg's theory, the first thing managers of employees who dislike their jobs should dosto 



A. provide opportunities for achievement.
B. publicly recognize good performance.
C. make sure pay levels, policies, and working conditions are reasonable.
D. create opportunities for personal growth and advancement.
E. increase employees' responsibility and opportunity for leadership.


Answer: C. make sure pay levels, policies, and working conditions are reasonable.

Anders is manager for a large freight company. He has noticed low morale lately, perhaps because of the cramped quarters and lack of raises this year among workers on his shift. According to Herzberg, Anders should first concentrate on

Anders is manager for a large freight company. He has noticed low morale lately, perhaps because of the cramped quarters and lack of raises this year among workers on his shift. According to Herzberg, Anders should first concentrate on 



A. needs for achievement.
B. hygiene factors.
C. esteem needs.
D. motivating factors.
E. growth needs.


Answer: B. hygiene factors.

McClelland's need for achievement corresponds most closely to

McClelland's need for achievement corresponds most closely to 



A. Herzberg's hygiene factors.
B. Maslow's esteem needs.
C. extrinsic rewards.
D. Alderfer's relatedness needs.
E. Maslow's self-actualization needs.


Answer: E. Maslow's self-actualization needs.

Janet is very aggressive at her job, and her coworkers complain that she often manipulates them and her boss in order to get ahead. She attempts to direct everything and everyone, regardless of the consequences to others or even the organization itself. Janet is expressing what type of need for power?

Janet is very aggressive at her job, and her coworkers complain that she often manipulates them and her boss in order to get ahead. She attempts to direct everything and everyone, regardless of the consequences to others or even the organization itself. Janet is expressing what type of need for power? 



A. Personal
B. Destructive
C. Legitimate
D. Organizational
E. Compensatory


Answer: A. Personal

Even when he started his first job, Galen was not content to be just one of the employees. His boss noticed that he often coached his coworkers about ways to improve their work, even when it wasn't his job. Galen probably has a

Even when he started his first job, Galen was not content to be just one of the employees. His boss noticed that he often coached his coworkers about ways to improve their work, even when it wasn't his job. Galen probably has a 



A. high need for achievement.
B. high need for affiliation.
C. high need for power.
D. low need for achievement.
E. high need for leadership.


Answer: C. high need for power.

Anne has excelled as a consultant for a large financial institution. She loves building mutually beneficial relationships and is extremely well liked by her clients. Anne likely has a

Anne has excelled as a consultant for a large financial institution. She loves building mutually beneficial relationships and is extremely well liked by her clients. Anne likely has a 




A. low need for affiliation.
B. low need for power.
C. low need for achievement.
D. high need for affiliation.
E. high need for achievement.


Answer: D. high need for affiliation.

For managers, the importance of Maslow's contribution is that he showed that workers

For managers, the importance of Maslow's contribution is that he showed that workers 



A. are only interested in compensation that helps them fulfill physiological needs.
B. are as complex as their organization.
C. have needs that cannot be understood by their employer.
D. expect an employer to fulfill every level of their hierarchy of needs.
E. have needs beyond that of just earning a paycheck.


Answer: E. have needs beyond that of just earning a paycheck.

An accounting firm provides employees with educational reimbursements if they complete job-related coursework with a B or better, which helps them meet which of Maslow's levels of needs?

An accounting firm provides employees with educational reimbursements if they complete job-related coursework with a B or better, which helps them meet which of Maslow's levels of needs? 



A. Self-actualization
B. Esteem
C. Love
D. Safety
E. Physiological


Answer: A. Self-actualization

After a series of bus accidents, one of which resulted in a critical injury to a driver, Inland Shuttle drivers received additional training and buses were retrofitted with new braking systems. This helps to satisfy which of Maslow's needs?

After a series of bus accidents, one of which resulted in a critical injury to a driver, Inland Shuttle drivers received additional training and buses were retrofitted with new braking systems. This helps to satisfy which of Maslow's needs? 



A. Self-actualization
B. Esteem
C. Love
D. Safety
E. Physiological


Answer: D. Safety

Maslow's levels of needs, in order from lowest (most basic) to highest level, are

Maslow's levels of needs, in order from lowest (most basic) to highest level, are 




A. self-actualization, esteem, love, safety, and physiological.
B. safety, love, esteem, self-actualization, and physiological.
C. physiological, safety, self-actualization, esteem, and love.
D. physiological, safety, love, esteem, and self-actualization.
E. safety, physiological, esteem, love, and self-actualization.


Answer: D. physiological, safety, love, esteem, and self-actualization

Which of the following is a need-based perspective on motivation?

Which of the following is a need-based perspective on motivation? 



A. Expectancy theory
B. Herzberg's two-factor theory
C. Job characteristics model
D. Goal-setting theory
E. Equity theory


Answer: B. Herzberg's two-factor theory

Arianna's management professor just told her class that the final exam is optional for students like her who currently have an A. She decides to take the exam anyway, since she likes the subject and wants to master the material. Here, Arianna is motivated to take the exam by a(n)

Arianna's management professor just told her class that the final exam is optional for students like her who currently have an A. She decides to take the exam anyway, since she likes the subject and wants to master the material. Here, Arianna is motivated to take the exam by a(n) 



A. intrinsic reward.
B. physiological need.
C. high need for power.
D. extrinsic reward.
E. hygiene factor.


Answer: A. intrinsic reward.

Craig's sales manager has just told the group that all sales in the month of September will earn an extra 5% commission. The team gets right to work, being motivated by a(n)

Craig's sales manager has just told the group that all sales in the month of September will earn an extra 5% commission. The team gets right to work, being motivated by a(n) 



A. intrinsic reward.
B. physiological need.
C. high need for power.
D. extrinsic reward.
E. hygiene factor.


Answer: D. extrinsic reward.

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