Strategic Management Final Test

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 Strategic Management
Final Test Solutions
Course Introduction
Strategic Management is a comprehensive course that explores the formulation,

implementation, and evaluation of cross-functional decisions that enable organizations

to achieve their long-term objectives. The course delves into the analysis of internal and

external environments, competitive positioning, value creation, and the alignment of

resources to organizational goals. Students will learn frameworks and tools essential for

crafting and executing effective strategies in dynamic environments, using real-world

case studies to develop critical thinking, problem-solving, and leadership skills relevant

to the complexities of modern business landscapes.

Recommended Textbook
Organizational Behavior 18th Edition by Stephen P. Robbins

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 Chapter 1: What Is Organizational Behavior?
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Sample Questions
Q1) What is organizational behavior?
Answer: Organizational behavior is the study of what people do in an organization and
how their behavior affects the organization's performance. It studies three determinants
of behavior in organizations: individuals, groups, and structure. In addition, OB applies
the knowledge gained about individuals, groups, and the effect of structure on behavior
in order to make organizations work more effectively. It is concerned specifically with
employment-related situations and thus emphasizes behavior as related to concerns
such as jobs, work, absenteeism, employee turnover, productivity, human performance,
and management.

Q2) ________ is the study of societies to learn about human beings and their activities.
A) Anthropology
B) Psychology
C) Sociology
D) Psychiatry
E) Social psychology
Answer: A

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 Chapter 2: Diversity in Organizations
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Sample Questions
Q1) Explain how surface-level similarity can lead to unfair discrimination. Substantiate
your answer with the help of a scenario.
Answer: Regina works as a sales manager in Rhode Island's Corporation Bank. She
strongly believes that as a manager, she plays an important role to ensure that all
employees are treated equally in the company. She notices that one of her sales teams
comprises Teresa, Gloria, and Antonio, who all hail from Madrid. All three graduated from
the same university and began their careers with Alliance Bank. In the last few months,
Regina has had a chance to review Teresa's work and notices that she has made an
exceptional number of sales in the past year, way above her set targets. When it comes
to giving bonuses, she assumes that since Teresa, Gloria, and Antonio have such similar
educational and professional backgrounds, they are bound to have similar productivity
standards. She offers all three of them the same bonus without analyzing individual
performances, assuming they performed equally well. Regina's behavior in this scenario
can be characterized as unfair discrimination. A person who undertakes unfair
discrimination rather than looking at individual characteristics assumes everyone in a
group is the same. She is stereotyping all three employees because they have
surface-level similarities of similar educational and professional backgrounds.

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 Chapter 3: Attitudes and Job Satisfaction
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Sample Questions
Q1) The human resource department of Palmer Inc. is aiming to understand the degree
of employee engagement in the organization. Which of the following statements would
best help them in the process?
A) Do you believe in the organization's five-year plan?
B) Do you believe the organization is concerned about your well-being?
C) Do you enjoy your everyday tasks and achieving project milestones?
D) Do you feel the organization values your work?
E) Do you agree with the organization's stand on sustainable work practices?
Answer: C

Q2) The exit-voice-loyalty-neglect framework aids in understanding the consequences

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 Chapter 4: Emotions and Moods
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Sample Questions
Q1) Discuss the emotional labor experienced by a customer service executive. Explain
how a worker's emotional state can affect customer service and customers.

Q2) You are right to want to strategize how to calm the situation since it hurts you, your
coworkers, and the company.
A)True
B)False

Q3) Whether a candidate has high emotional intelligence would be a significant factor
when considering a candidate for the job of a(n) ________.
A) event planner who needs to coordinate with several people
B) engineer working on developing a software program
C) web researcher who needs to consolidate online travel information
D) copy-editor who checks spelling and grammatical errors in manuscripts
E) technical writer who needs to create a 1000-word article every day

Q4) Explain the significance of emotions.

Q5) Zach is a pharmaceutical sales representative and must put on a smile every day at
work with his clients. Discuss the emotional labor exerted by Zach. Explain the
significance of the emotional intelligence demanded of Zach to be successful, and
describe how he applies his emotions and moods in his job.

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 Chapter 5: Personality and Values
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Sample Questions
Q1) Which of the following is an instrumental value according to Milton Rokeach?
A) economic success
B) social recognition
C) personal discipline
D) world peace
E) meaning in life

Q2) Esther Lugo has gone for an interview at an advertising firm in Manhattan and has
been asked to complete a self-report survey to help interviewers understand if she is the
right candidate for the job. From the interview, they have found that she is extroverted,
empathic, scrupulous, and cooperative in nature, which are key characteristics needed
for the job. These characteristics about Lugo indicate her ________.
A) talent
B) skill
C) knowledge
D) genealogy
E) personality

Q3) Describe the typical characteristics associated with a proactive personality.

Q4) Does heredity determine a person's personality? Explain.

Q5) Describe the personality trait of self-monitoring.

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 Chapter 6: Perception and Individual Decision Making
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Sample Questions
Q1) Explain how stereotyping can cause problems for some managers when making
ethical decisions. Provide an example.

Q2) The perception of a target is unaffected by the perceiver's personality or past

Q3) If a person responds to a particular situation in the same way over a long time
period, then the attribution theory states that the behavior demonstrates ________.
A) distinctiveness
B) consensus
C) consistency
D) discontinuity
E) traceability

Q4) What are the three ethical decision criteria? Explain.

Q5) Explain the three components of creativity. Name two biases and give examples of
how they would affect creativity.

Q6) Compare the fundamental attribution error and self-serving bias.

Q7) Discuss attribution theory.

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 Chapter 7: Motivation Concepts
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Sample Questions
Q1) According to Maslow's hierarchy of needs, which of the following is a lower level
need?
A) social-belongingness
B) safety-security
C) esteem
D) self-actualization
E) recognition

Q2) With reference to the four sources of self-efficacy as proposed by Albert Bandura,
verbal persuasion involves becoming more confident ________.
A) because you have gained relevant experience with the particular task or job
B) because you see someone else doing the particular task or job
C) because someone convinces you that you have the skills necessary to be successful
D) because you are rewarded for performing a similar task well
E) because you get energized or "psyched up" to perform the particular task or job

Q3) What are the four ways of increasing self-efficacy as proposed by Albert Bandura?

Q4) Why are people motivated by challenging goals?

Q5) Describe the three key elements in the definition of motivation.

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 Chapter 8: Motivation: From Concepts to Applications
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Sample Questions
Q1) The ________ pay plan has long been popular as a means of compensating
production workers by paying a fixed sum for each unit of production completed.
A) competency-based
B) gainsharing
C) piece-rate
D) profit-sharing
E) merit-based

Q2) Describe telecommuting as an alternative work arrangement.

Q3) Personal contacts with beneficiaries is a required component of relational job

Q4) List and describe different variable-pay programs.

Q5) Discuss the advantages and disadvantages of flextime.

Q6) Flexible benefits plans are available worldwide.

Q7) What are the various dimensions of the job characteristics model?

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Q8) Describe the five core job dimensions of the job characteristics model.

Q9) How would you relate skill variety and job rotation?
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 Chapter 9: Foundations of Group Behavior
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Sample Questions
Q1) Which of the following statements is true regarding the effect of status on conformity
pressure?
A) High-status individuals are often given less freedom to deviate from norms than are
other group members.
B) People in high-status jobs have especially negative reactions to social pressure
exerted by people in low-status jobs.
C) Lower-status people are better able to resist conformity pressures than their
high-status peers.
D) Groups exert equal conformity pressure on all individuals regardless of their status.
E) Compared to high-status members, low-status members are given a wider range of
discretion as long as their activities aren't severely detrimental to group goal
achievement.

Q2) A period of inertia in a temporary group with a deadline refers to the group standing
still or becoming locked into a fixed course of action.
A)True
B)False

Q3) Explain the relationship between role conflict and reference groups.

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 Chapter 10: Understanding Work Teams
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Sample Questions
Q1) With reference to the team effectiveness model, which of the following is one of the
key components of an effective team, included under the category of contextual
factors?
A) team efficacy
B) climate of trust
C) common purpose
D) social loafing
E) specific goals

Q2) Which of the following types of teams allows for collaboration between team
members who are physically dispersed?
A) problem-solving teams
B) self-managed work teams
C) task teams
D) virtual teams
E) command teams

Q3) How does a climate of trust improve effectiveness of teams?

Q4) Specificity refers to the degree to which a team reflects on and adjusts its master
plan when necessary.
A)True
B)False

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 Chapter 11: Communication
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Sample Questions
Q1) Before buying her new phone, Gina listed the various requirements her new phone
must meet. As a wedding planner, much of her work revolves around using e-mail to
forward pictures of locations, designs, and food arrangements that she could categorize
by themes and prices. She requires a phone with high storage capacity, speedy Internet,
and easy-to-use methods to organize and save content. After listing these
requirements, she fixed a budget and began surveying phones online. She also obtained
information from friends. In a week's time, Gina had shortlisted three models that suited
her needs and was ready to make the final choice. Gina used ________ to arrive at this
decision.
A) superficial processing
B) heuristic processing
C) controlled processing
D) selective processing
E) automatic processing

Q2) Discuss the advantages and disadvantages of oral communication.

Q3) List and explain four of the barriers to effective communication.

Q4) The all-channel network permits group members to communicate actively with
each other.
A)True
B)False

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 Chapter 12: Leadership
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Sample Questions
Q1) Which of the following is true with regard to getting the most from
leadership-training budgets?
A) Leadership training is likely to be more successful with low self-monitors.
B) It is difficult for organizations to teach implementation skills.
C) Teaching trust building and monitoring is virtually impossible.
D) Leaders can be trained in transformational leadership skills that have bottom-line
results.
E) For online leaders, substitutes and neutralizers have no effect.

Q2) The least preferred co-worker (LPC) questionnaire is used to measure whether
________.
A) the followers are able and willing
B) a leader is task- or relationship-oriented
C) the members are in the ingroup or out-group
D) employees prefer servant leadership over situational leadership
E) the leader is high on the dimension of conscientiousness

Q3) Genetics and experiences shape young people, and the relationship between these
factors and CEO success is complex.
A)True
B)False

Q4) Describe the path-goal theory of leadership.

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 Chapter 13: Power and Politics
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Sample Questions
Q1) Politicking is less likely to surface when an organization's resources are declining.
A)True
B)False

Q2) Define sexual harassment and identify ways managers can protect themselves and
their employees from it.

Q3) Which of the following is an organizational factor that increases illegitimate political
behavior?
A) internal locus of control
B) low expectations of success
C) high trust
D) low organizational investment
E) zero-sum reward practice

Q4) ________ power is based on identification with a person who has desirable
resources or personal traits.
A) Coercive
B) Legitimate
C) Referent
D) Expert
E) Reward

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 Chapter 14: Conflict and Negotiation
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Sample Questions
Q1) When one person seeks to satisfy his or her own interests regardless of the impact on
the other parties to the conflict, that person is using the conflict-handling intention of
________.
A) competing
B) avoiding
C) accommodating
D) compromising
E) collaborating

Q2) Conditions that can create conflicts can be classified into three categories. Which of
the following is one of these three categories that includes variables such as
jurisdictional clarity, member-goal compatibility, and leadership styles?
A) communication
B) structure
C) personal variables
D) group interactions
E) process variables

Q3) Discuss the effects of moods and emotions on effectiveness of negotiations.

Q4) Describe the five conflict-handling intentions that are based on the dimensions of
cooperativeness and assertiveness.

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 Chapter 15: Foundations of Organization Structure
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Sample Questions
Q1) You explain to your students the structure of a local grocery store situated in your
neighborhood. The store employs two full-time employees, a salesperson and a cashier.
The owner of the store acts as its manager and makes all the decisions. Which of the
following organizational structures is being described by you?
A) matrix structure
B) virtual structure
C) bureaucracy
D) boundaryless structure
E) simple structure

Q2) ________ refers to the degree to which jobs within the organization are
standardized.
A) Formalization
B) Empowerment
C) Work specialization
D) Departmentalization
E) Decentralization

Q3) Why is span of control important within an organization, and which common
organizational design would most likely have the widest span of control? Explain your
answer.

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 Chapter 16: Organizational Culture
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Sample Questions
Q1) Subcultures act to undermine the dominant culture.
A)True
B)False

Q2) A study conducted by Bain and Company found that 70 percent of mergers failed to
increase shareholder values, and Hay Group found that more than 90 percent of
mergers in Europe failed to reach financial goals.
A)True
B)False

Q3) Which of the following statements is true regarding the functions of culture in an
organization?
A) It hinders the generation of commitment to something larger than individual
self-interest among employees.
B) It conveys a sense of identity for organization members.
C) It reduces the stability of the organizational system.
D) It reduces distinctions between one organization and others.
E) It does not affect employees' attitudes and behavior.

Q4) Apprenticeship and mentoring programs are examples of random socialization.

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 Chapter 17: Human Resource Policies and Practices
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Sample Questions
Q1) Which of the following is an on-the-job training method?
A) live classroom lectures
B) apprenticeships
C) public seminars
D) podcasts
E) self-study programs

Q2) Describe and discuss three substantive selection devices used to assess job
candidates once they have passed an initial screening.

Q3) Performance evaluations are used to ________.

Q4) Compare and contrast unstructured interview and behavioral structured interview.

Q5) Strategic recruiting has become a cornerstone for many companies, with some of
the most effective recruiting techniques including internal referrals and internship
programs.
A)True
B)False
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 Chapter 18: Organizational Change and Stress

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Sample Questions
Q1) What are the various forces that make it necessary for organizations to change?

Q2) John Kotter built on Lewin's three-step model to create a more detailed approach
for implementing change. Which of the following steps in Kotter's eight-step plan for
implementing change represents the unfreezing stage in Lewin's three-step model?
A) Plan for, create, and reward short-term "wins" that move the organization toward the
new vision.
B) Consolidate improvements, reassess changes, and make necessary adjustments in
the new programs.
C) Create a new vision to direct the change and strategies for achieving the vision.
D) Empower others to act on the vision by removing barriers to change and encouraging
risk taking and creative problem solving.
E) Reinforce the changes by demonstrating the relationship between new behaviors and
organizational success.

Q3) Employees are more accepting of changes when they are committed to the
organization as a whole.
A)True
B)False

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