GMS 200 M/C Textbook Self Tests Midterm Flashcards Only

Whereas management information systems use the latest technologies to collect, organize, and distribute data, ______ involves tapping the available data to extract and report it in organized ways that are most useful to decision-makers.

a. analytics

b. business intelligence

c. anchoring and adjustment

d. optimizing

Answer: b. business intelligence

Definition: Business intelligence (BI) is the set of tools, processes, and practices that analyze collected data and present it in organized, actionable reports and dashboards to support managerial decision-making.

A manager who is reactive and works hard to address problems after they occur is known as a ______.

a. problem seeker

b. problem avoider

c. problem solver

d. problem manager

Answer: c. problem solver

Definition: A problem solver responds to problems after they arise, taking action to diagnose and fix issues rather than proactively seeking or preventing them.

A person likes to deal with hard facts and clear goals in a decision situation; she also likes to be in control and keep things impersonal. This person's cognitive style tends toward ______.

a. sensation thinking

b. intuitive thinking

c. sensation feeling

d. intuitive feeling

Answer: a. sensation thinking

Definition: Sensation-thinking individuals prefer concrete data, clear objectives, objectivity, and structured control when making decisions.

The assigning of probabilities for action alternatives and their consequences indicates the presence of ______ in the decision environment.

a. certainty

b. optimizing

c. risk

d. satisficing

Answer: c. risk

Definition: Risk exists when decision outcomes are uncertain but probabilities can be assigned to possible alternatives.

Being asked to develop a plan to increase international sales of a product is an example of the types of ______ problems that managers must be prepared to deal with.

a. routine

b. unstructured

c. crisis

d. structured

Answer: b. unstructured

Definition: Unstructured problems are novel, complex, and lack clear procedures; they require judgment, creativity, and customized solutions.

Costs, timeliness, and ______ are among the recommended criteria for evaluating alternative courses of action.

a. ethical soundness

b. competitiveness

c. availability

d. simplicity

Answer: a. ethical soundness

Definition: Ethical soundness assesses whether an alternative aligns with moral principles and organizational values, alongside cost and timeliness.

When a manager makes a decision about someone's annual pay

raise only after looking at his or her current salary, the risk is that the

decision will be biased because of ______.

a. a framing error

b. escalating commitment

c. anchoring and adjustment

d. strategic opportunism

Answer: c. anchoring and adjustment

Definition: Anchoring bias occurs when an initial value (the anchor) unduly influences subsequent judgments and adjustments, leading to biased decisions.

When a manager decides to continue pursuing a course of action

that facts otherwise indicate is failing to deliver desired results, this is

called ______.

a. strategic opportunism

b. escalating commitment

c. confirmation error

d. the risky shift

Answer: b. escalating commitment

Definition: Escalating commitment is the tendency to invest further in a failing course of action due to prior investments, ego, or hopes of recovery.

Personal creativity drivers include creativity skills, task expertise,

and ______.

a. emotional intelligence

b. management support

c. organizational culture

d. task motivation

Answer: d. task motivation

Definition: Task motivation is the intrinsic interest and drive to work on a task; it fuels persistence and creative effort alongside skills and expertise.

When the registrar of a university deals with students by an identification number rather than a name, which characteristic of bureaucracy is being displayed and what is its intended benefit?

a. division of labour, competency

b. merit-based careers, productivity

c. rules and procedures, efficiency

d. impersonality, fairness

Answer: d. impersonality, fairness

Definition: Impersonality means decisions and interactions are based on formal roles/identifiers rather than personal relationships, intended to ensure consistent, unbiased, and fair treatment of all individuals.

If an organization was performing poorly and Henri Fayol was

called in as a consultant, what would he most likely suggest to improve

things?

a. Teach managers to better plan and control.

b. Teach workers more efficient job methods.

c. Promote to management only the most competent workers.

d. Find ways to increase corporate social responsibility.

Answer: a. Teach managers to better plan and control.

Definition: Fayol emphasized managerial functions (planning, organizing, commanding, coordinating, controlling); he would focus on improving managers' planning and control capabilities to restore performance.

The Hawthorne studies raised awareness of how ______ can be

important influences on productivity.

a. structures

b. human factors

c. physical work conditions

d. pay and rewards

Answer: b. human factors

Definition: The Hawthorne studies highlighted social and psychological influences (attention, group norms, worker attitudes) on performance, showing human factors often affect productivity as much as physical conditions.

The highest level in Maslow's hierarchy includes ______ needs.

a. safety

b. esteem

c. self-actualization

d. physiological

Answer: c. self-actualization

Definition: Self-actualization is the highest level in Maslow's hierarchy — the need for personal growth, fulfillment, creativity, and realizing one's potential.

When a manager notices that Sheryl has strong social needs and

assigns her a job in customer relations and gives Farhad lots of praise

because of his strong ego needs, the manager is displaying ______.

a. systems thinking

b. Theory X

c. motion study

d. contingency thinking

Answer: d. contingency thinking

Definition: Contingency thinking matches management practices to individual differences and situational variables — choosing approaches (job assignments, rewards) that fit specific people and contexts.

The benefits of planning include ______.

a. improved focus

b. lower labour costs

c. more accurate forecasts

d. higher profits

Answer: a. improved focus

Definition: Planning clarifies priorities and aligns resources and efforts toward key goals, which improves organizational focus and decision-making.

______ planning identifies alternative courses of action that can be taken if and when certain situations arise.

a. Zero-based

b. Participative

c. Strategic

d. Contingency

Answer: d. Contingency

Definition: Contingency planning prepares backup plans and predefined responses for potential internal or external events, reducing uncertainty and enabling faster reaction.

One of the benefits of participatory planning is ______.

a. reduced time for planning

b. less need for forecasting

c. greater attention to contingencies

d. more commitment to implementation

Answer: d. more commitment to implementation

Definition: Involving employees in planning increases ownership and buy-in, which improves commitment to carrying out the plan.

One of the problems in relying too much on staff planners is

______.

a. a communication gap between planners and implementers

b. lack of expertise in the planning process

c. short-term rather than long-term focus

d. neglect of budgets as links between resources and activities

Answer: a. a communication gap between planners and implementers

Definition: Excessive reliance on staff planners can create a disconnect where planners are isolated from those who must implement plans, causing poor buy-in or impractical plans.

A culture that places great value on expressing meaning in the written or spoken word is described as ______ by Hall.

a. monochronic

b. proxemic

c. collectivist

d. low-context

Answer: d. low- context

Definition: Low-context cultures rely on explicit, direct verbal or written communication where meaning is primarily conveyed through words rather than context or nonverbal cues.

It is ______ when a foreign visitor takes offence at a local custom

such as dining with one's fingers, considering it inferior to practices of

his or her own culture.

a. universalist

b. prescriptive

c. monochronic

d. ethnocentric

Answer: d. ethnocentric

Definition: Ethnocentrism is judging other cultures by the standards of one's own and assuming one's own cultural practices are superior.

When a member of a cross- cultural team is hesitant to speak up and offer ideas, defers to the team leader, and avoids accepting praise for individual work, the person is displaying characteristics consistent with a ______ culture.

a. monochronic

b. low- context

c. tight

d. loose

Answer: c. tight

Definition: Tight cultures have strong social norms and low tolerance for deviance; individuals often conform, defer to authority, and avoid standing out.

Hofstede would describe a culture whose members respect age

and authority and whose workers defer to the preferences of their

supervisors as ______.

a. low masculinity

b. high particularism

c. high power distance

d. monochronic

Answer: c. high power distance

Definition: High power distance cultures accept and expect unequal power distribution, showing deference to elders and supervisors and centralized authority.

An effective manager achieves both high-performance results and high levels of ______ among people doing the required work.

a. turnover

b. effectiveness

c. satisfaction

d. stress

c) satisfaction

More info: employees' positive feelings about their job, environment, and treatment that influence motivation and retention.

Performance efficiency is a measure of the ______ associated with task accomplishment.

a. resource costs

b. goal specificity

c. product quality

d. product quantity

a) resource costs

More info: The inputs (time, money, materials, effort) required to produce an output; lower input per output = higher efficiency.

The requirement that a manager answer to a higher-level boss for performance results achieved by a work team is called ______.

a. dependency

b. accountability

c. authority

d. empowerment

b) accountability

More info: The obligation to report, justify, and accept responsibility for outcomes and performance.

In Katz's framework, top managers tend to rely more on their ______ skills than do first-line managers.

a. human

b. conceptual

c. decision-making

d. technical

b) conceptual

More info: the ability to see the organization as a whole, understand complex interrelationships, and think strategically.

Trends in the new workplace include which of the following?

a. More emphasis by managers on giving orders.

b. More attention by organizations to valuing people as human assets.

c. Less teamwork.

d. Less concern for work-life balance among the new generation of workers.

b) more attention to valuing people as human assets

More info: organizations increasingly focus on employee development, engagement, and treating workers as valuable resources.

The manager's role in the "upside-down pyramid" view of organizations is best described as providing ______ so that workers can directly serve ______.

a. direction, top management

b. leadership, organizational goals

c. support, customers

d. agendas, networking

c) support, customers

More info: managers serve as supporters and enablers so frontline workers can deliver value directly to customers.

A(n) ______ thinker approaches problems in a rational and an analytic fashion.

a. systematic

b. intuitive

c. internal

d. external

Answer: a. systematic

Definition: A systematic thinker uses logical, analytical, step-by-step reasoning to evaluate information and make decisions.

The first step in the decision-making process is to ______.

a. identify alternatives

b. evaluate results

c. find and define the problem

d. choose a solution

Answer: c. find and define the problem

Definition: The decision process begins by recognizing and clearly defining the problem or opportunity that requires a decision.

A common mistake made by managers in crisis situations is that they ______.

a. try to get too much information before responding

b. rely too much on group decision-making

c. isolate themselves to make the decision alone

d. forget to use their crisis management plan

Answer: c. isolate themselves to make the decision alone

Definition: Isolating oneself during a crisis limits information and perspectives, which can lead to poorer decisions when broad input and coordination are needed.

The ______ decision model views managers as making optimizing

decisions, whereas the ______ decision model views them as making

satisficing decisions.

a. behavioural, human relations

b. classical, behavioural

c. heuristic, humanistic

d. quantitative, behavioural

Answer: b. classical, behavioural

Definition: The classical model assumes managers optimize (choose the best solution given full info), while the behavioural model assumes managers satisfice (choose a satisfactory solution given bounded rationality and limited info).

When a problem is addressed according to the positive or negative

context in which it is presented, this is an example of ______.

a. framing error

b. escalating commitment

c. availability and adjustment

d. strategic opportunism

Answer: a. framing error

Definition: A framing error happens when decisions are influenced by how information or choices are presented rather than by the objective facts.

The assumption that people are complex with widely varying needs

is most associated with the ______ management approaches.

a. classical

b. neoclassical

c. behavioural

d. modern

Answer: c. behavioural

Definition: The behavioural approach (or human relations school) emphasizes individual differences, human needs, motivation, and interpersonal relationships — recognising employees are complex and require managerial attention to social and psychological factors.

The father of scientific management is ______.

a. Weber

b. Taylor

c. Mintzberg

d. Katz

Answer: b. Taylor

Definition: Frederick W. Taylor is considered the father of scientific management; he promoted time-and-motion studies, task standardization, selection/training of workers, and pay linked to performance to increase efficiency.

One example of how scientific management principles are applied in organizations today would be:

a. conducting studies to increase efficiencies in job

performance.

b. finding alternatives to a bureaucratic structure.

c. training managers to better understand worker attitudes.

d. focusing managers on teamwork rather than individual

jobs.

Answer: a. conducting studies to increase efficiencies in job performance.

Definition: Modern time-and-motion studies, work measurement, and process optimization trace back to scientific management's focus on scientifically studying tasks to boost efficiency and productivity.

Advice to study a job, carefully train workers to do that job, and link financial incentives to job performance would most likely come from ______.

a. scientific management

b. contingency management

c. Henri Fayol

d. Abraham Maslow

Answer: a. scientific management

Definition: These prescriptions reflect Taylor's scientific management: analyze tasks scientifically, train workers to the standard method, and use pay-for-performance incentives to motivate efficiency.

Which management theorist would most agree with the statement "If you treat people as grown-ups they will perform that way"?

a. Argyris

b. Deming

c. Weber

d. Fuller

Answer: a. Argyris

Definition: Chris Argyris argued that treating employees as mature, responsible adults (providing autonomy and opportunities) leads to higher performance and development — contrasting with authoritarian assumptions.

When people perform in a situation as they are expected to, this is sometimes called the ______ Effect.

a. Hawthorne

b. systems

c. contingency

d. open-systems

Answer: a. Hawthorne

Definition: The Hawthorne Effect refers to changes in behaviour or performance that occur because people know they are being observed or because attention/expectations are placed on them, altering how they act.

Resource acquisition and customer satisfaction are important

when an organization is viewed as a(n) ______.

a. bureaucracy

b. closed system

c. open system

d. pyramid

Answer: c. open system

Definition: An open system interacts with its environment — importing resources and responding to customers/stakeholders — so acquiring inputs and satisfying customers are central concerns.

The loan-processing department would be considered a ______ of your local bank or credit union.

a. subsystem

b. closed system

c. resource input

d. cost centre

Answer: a. subsystem

Definition: A subsystem is a distinct component within a larger system that performs a specific function; the loan-processing department is a functional part of the bank's overall system.

Which is the correct match?

a. Follet-analytics

b. McGregor-motion study

c. Deming-quality management

d. Maslow-Theory X and Y

Answer: c. Deming-quality management

Definition: W. Edwards Deming is associated with quality management and continuous improvement (TQM), emphasizing statistical process control, systemic thinking, and customer focus.

When managers try to avoid hearsay and make decisions based on solid facts and information, this is known as ______.

a. continuous improvement

b. evidence-based management

c. TQM

d. Theory X management

Answer: b. evidence-based management

Definition: Evidence-based management involves making decisions grounded in the best available data, systematic analysis, and documented evidence rather than intuition or unverified hearsay.

Planning is the process of ______ and ______.

a. developing premises about the future, evaluating them

b. measuring results, taking corrective action

c. measuring past performance, targeting future performance

d. setting objectives, deciding how to accomplish them

Answer: d. setting objectives, deciding how to accomplish them

Definition: Planning involves establishing goals (objectives) and determining the actions, resources, and schedules needed to achieve them, providing direction and coordination for the organization.

In order to help implement its corporate strategy, a business firm would likely develop a ______ plan for the marketing department.

a. functional

b. single-use

c. production

d. zero-based

Answer: a. functional

Definition: A functional plan translates corporate strategy into specific departmental objectives and actions (e.g., marketing tactics, budgets, and schedules) to implement the overall strategy.

The first step in the control process is to ______.

a. measure actual performance

b. establish objectives and standards

c. compare results with objectives

d. take corrective action

Answer: b. establish objectives and standards

Definition: Control begins by setting clear objectives and measurable standards against which actual performance can later be measured and evaluated.

A sexual harassment policy is an example of ______ plans used by organizations.

a. long-term

b. single-use

c. standing-use

d. operational

Answer: c. standing-use

Definition: Standing (ongoing) plans—policies and procedures—provide consistent guidance for repetitive or continuous organizational issues, such as a sexual harassment policy.

When a manager is asked to justify a new budget proposal on the basis of projected activities rather than past practices, this is an example of ______ budgeting.

a. zero-based

b. variable

c. fixed

d. contingency

Answer: a. zero-based

Definition: Zero-based budgeting requires each expense to be justified from a zero base based on planned activities and needs, rather than simply adjusting prior budgets.

The ideal situation in a hierarchy of objectives is that lower-level plans become the ______ for accomplishing higher-level plans.

a. means

b. ends

c. scenarios

d. benchmarks

Answer: a. means

Definition: Lower-level plans should serve as the means (methods and actions) that collectively achieve higher-level organizational objectives.

When managers use the benchmarking approach to planning,

they ______.

a. use flexible budgets

b. identify best practices used by others

c. are seeking the most accurate forecasts that are available

d. focus more on the short term than the long term

Answer: b. identify best practices used by others

Definition: Benchmarking involves comparing processes and performance with best-in-class organizations to identify improvements and adopt proven practices.

The planning process isn't complete until ______.

a. future conditions have been identified

b. stretch goals have been set

c. plans are implemented and results evaluated

d. budgets commit resources to plans

Answer: c. plans are implemented and results evaluated

Definition: Effective planning requires implementation and monitoring—evaluating results and making adjustments—so the cycle of planning and control is completed.

When a team leader is trying to follow an approach known as management by objectives, who should set a team member's performance objectives?

a. The team member

b. The team leader

c. The team leader and team member

d. The team member, the team leader, and a lawyer

Answer: c. The team leader and team member

Definition: Management by objectives emphasizes joint goal-setting between manager and employee to ensure clarity, agreement, and commitment.

A good performance objective is written in such a way that it ______.

a. has no precise timetable

b. is general and not too specific

c. is almost impossible to accomplish

d. can be easily measured

Answer: d. can be easily measured

Definition: Well-written objectives are specific and measurable, allowing clear assessment of whether targets have been met (part of the SMART criteria).

Which type of plan is used to guide resource allocations for long-term advancement of the organization's mission or purpose?

a. Tactical

b. Operational

c. Strategic

d. Functional

Answer: c. Strategic

Definition: Strategic plans set long-term direction and priorities for the organization and guide major resource allocation decisions to advance its mission.

The reasons why businesses go international include gaining new markets, finding investment capital, and reducing ______.

a. political risk

b. protectionism

c. labour costs

d. most favoured nation status

Answer: c. labour costs

Definition: Locating production or operations in countries with lower wages or operating expenses to reduce overall labour and production costs.

When shoe maker Rocky Brands decided to buy full ownership of a manufacturing company in the Dominican Republic, Rocky was engaging in which form of international business?

a. import/export

b. licensing

c. foreign subsidiary

d. joint venture

Answer: c. foreign subsidiary

Definition: A foreign subsidiary is a company in another country that is wholly or majority-owned by a parent firm; buying full ownership creates a subsidiary under the parent company's control.

A form of international business that falls into the category of a direct investment strategy is ______.

a. exporting

b. joint venture

c. licensing

d. global sourcing

Answer: b. joint venture

Definition: A joint venture is a direct investment where two or more parties create a new business entity and share ownership, risks, and control in a foreign market.

The World Trade Organization would most likely become involved in disputes between countries over ______.

a. exchange rates

b. ethnocentrism

c. nationalization

d. tariffs

Answer: d. tariffs

Definition: The WTO resolves disputes about trade barriers and policies such as tariffs and other measures that affect international trade between member countries.

Business complaints about copyright protection and intellectual property rights in some countries illustrate how differences in ______ can affect international operations.

a. legal environments

b. political stability

c. sustainable development

d. economic systems

Answer: a. legal environments

Definition: Legal environments include national laws and enforcement mechanisms (like IP and copyright laws) that affect how businesses protect and enforce their rights abroad.

In ______ cultures, members tend to do one thing at a time; in

______ cultures, members tend to do many things at once.

a. monochronic, polychronic

b. polycentric, geocentric

c. collectivist, individualist

d. neutral, affective

Answer: a. monochronic, polychronic

Definition: Monochronic cultures focus on sequential tasks and schedules; polychronic cultures are comfortable handling multiple tasks and relationships simultaneously.

It is common in Malaysian culture for people to value teamwork and to display great respect for authority. Hofstede would describe this culture as high in both ______.

a. uncertainty avoidance and feminism

b. universalism and particularism

c. collectivism and power distance

d. long- term orientation and masculinity

Answer: c. collectivism and power distance

Definition: Collectivism emphasizes group goals and teamwork; high power distance means acceptance of unequal power and strong respect for authority.

In Hofstede's study of national cultures, Canada was one of the most ______ compared with other countries in his sample.

a. individualistic

b. collectivist

c. feminine

d. long- term oriented

Answer: a. individualistic

Definition: Individualistic cultures prioritize personal autonomy, individual achievement, and self-reliance over group obligations.

When a company buys cotton in Egypt, has tops sewn from it in Sri Lanka according to designs made in Italy, and then offers the garments for sale in the United States, this form of international business is known as ______.

a. licensing

b. importing

c. joint venturing

d. global sourcing

Answer: d. global sourcing

Definition: Global sourcing is procuring materials, components, or finished goods from different countries to take advantage of specialized skills, costs, or efficiencies across locations.

The difference between an international business and a transna-

tional corporation is that the transnational ______.

a. tries to operate around the world without a strong national

identity

b. does business in only one or two foreign countries

c. is led by ethnocentric managers

d. is based outside North America

Answer: a. tries to operate around the world without a strong national

identity

Definition: A transnational corporation seeks integrated global operations and a borderless identity, minimizing ties to any single national origin in strategy and structure.

The Corruption of Foreign Public Officials Act makes it illegal for

______.

a. Canadians to engage in joint ventures abroad

b. foreign businesses to pay bribes to Canadian government

officials

c. Canadian businesses to make payoffs abroad to gain international business contracts

d. foreign businesses to steal intellectual property from Canadian firms operating in their countries

Answer: c. Canadian businesses to make payoffs abroad to gain international business contracts

Definition: The Act prohibits Canadian individuals and businesses from bribing foreign public officials to obtain or retain business; it's Canada's anti-bribery law.

What is the process of management involves the functions of planning, ____, leading, and controlling.

a. accounting

b. creating

c. innovating

d. organizing

d) organizing

More info: arranging and structuring tasks, people, and resources so plans can be carried out and goals achieved.

Productivity is a measure of the quantity and ______ of work produced, relative to the cost of inputs.

a. quality

b. cost

c. timeliness

d. value

a) quality

More info: How well the output meets standards or customer needs; productivity = outputs (quantity + quality) / inputs.

______ managers pay special attention to the external environment, looking for problems and opportunities and finding ways for the organization to best deal with them.

a. Top

b. Middle

c. Lower

d. First-line

a) Top

More info: Senior executives who set strategy, scan external trends, and align the organization to external opportunities and threats.

The accounting manager for a local newspaper would be considered a ______ manager, whereas the editorial director for sports would be considered a ______ manager.

a. general, functional

b. middle, top

c. staff, line

d. senior, junior

c) staff, line

More info: staff managers provide specialized support/advice (accounting); line managers have direct authority over core operations (editorial).

When a team leader clarifies desired work targets and deadlines for members of a work team, he or she is fulfilling the management function of ______.

a. planning

b. delegating

c. controlling

d. supervising

a) planning

More info: setting objectives, deciding on actions and timelines so team members know what to accomplish.

The process of building and maintaining good relationships with others who may help implement a manager's work agendas is called ______.

a. governance

b. networking

c. authority

d. entrepreneurship

b) networking

More info: creating and nurturing contacts and relationships to gain information, support, resources, and cooperation.

The research of Mintzberg and others concludes that managers ______.

a. work at a leisurely pace

b. have blocks of private time for planning

c. are never free from the pressures of performance responsibility

d. have the advantages of flexible work hours

c) are never free from the pressures of performance responsibility

More info: managers face constant interruptions, time pressure, and ongoing accountability.

When someone holds a negative attitude toward minorities, this is an example of ______. When a team leader with a negative attitude toward minorities makes a decision to deny advancement opportunities to an East Asian team member, this is an example of ______.

a. discrimination, prejudice

b. emotional intelligence, social capital

c. performance efficiency, performance effectiveness

d. prejudice, discrimination

d) prejudice, discrimination

More info: prejudice is a negative attitude or belief about a group; discrimination is unequal treatment or actions taken against members of that group.

The management function of ______ is being performed when a retail manager measures daily sales in the women's apparel department and compares them with daily sales targets.
a. planning
b. agenda setting
c. controlling
d. delegating

c) controlling

More info: monitoring performance, comparing actual results to targets, and taking corrective action when necessary.

Among the ways information technology is changing organizations today, ______ is one of its most noteworthy characteristics.

a. eliminating need for top managers

b. reducing information available for decision-making

c. breaking down barriers internally and externally

d. decreasing need for environmental awareness

Answer: c. breaking down barriers internally and externally

Definition: Information technology reduces silos and enables greater integration and communication across departments and with external partners (customers, suppliers, stakeholders), improving collaboration and coordination.