CSULB MGMT 300, Fall Semester 2014

Dr. Larry Pate

FINAL EXAM STUDY GUIDE
This Study Guide is intended to help students prepare for the Final
Exam. Material not contained in this Study Guide will not appear on the
Final Exam. If you know this material and can answer questions
correctly, you should do well on the Final. The Exam is cumulative and
will contain three types of questions: (1) Multiple-choice, (2) Fill-in-theblank, and (3) Short-answer essay. Short-answer essay questions are
worth 5 points; multiple-choice and fill-in-the-blank questions are worth
3 points.
As a general rule, you should know the meaning of key terms and
concepts from the book(s) and in-class discussions, especially the
Operations Management book. Key concepts are highlighted. You
should also be able to answer the following questions:
1. What is management? What are the 4 primary functions of
management?
2. What is competitive advantage? What is sustainable competitive
advantage?
3. What is the difference between effectiveness and efficiency?
4. What skills do managers need from one level of an organization to
another?
5. What are Mintzbergs 10 managerial roles? Why are they important?
6. How has management thinking evolved over time? What is current
thinking?
7. How do historical forces influence the practice of management?
8. What is Scientific Management and how does it differ from other
approaches?
9. Why do management trends change over time? Is there a best
style or trend?
10. How is the blindfold exercise, etc. helpful in understanding a
managers job?
11. What is the difference between durable vs. nondurable goods and
services?
12. What is a critical path and why is it an important concept in OM?
13. What does the choose-a-color in-class exercise tell us about group
interaction?
14. What is the difference between certainty, risk, uncertainty, and
ambiguity?
15. What are the 4 types of culture? How do they relate to the
environment?
16. Diagram the Person-Job-Fit model discussed in class. Why is it
important?

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17. What is managerial ethics? How are the major approaches
similar/dissimilar?
18. What is corporate social responsibility? Why is it an essential
concern?
19. How are ethical organizations created? What are the implications
for you?
20. What are the two primary approaches to planning? How are they
different?
21. What are goals and plans? What are the characteristics of effective
goals?
22. What is MBO? What are the 4 essential steps in the MBO process?
23. Describe and discuss the strategic management process and SWOT
analysis.
24. Discuss Porters competitive forces and strategies. Why is it
important?
25. Discuss organizational dimensions managers use to execute
strategy.
26. What is rationality? Bounded rationality? Satisficing? Why are they
important?
27. What are normative vs. descriptive decision models? What is ACES?
Why use it?
28. What is chain of command? Span-of-control? Brainstorming?
Decentralization?
29. Diagram/discuss Force-Field Analysis. What are driving vs.
restraining forces?
30. What are the characteristics of an effective team? What kinds of
teams are there?
The next several pages contain sample questions written by students.
These are not the exact questions that will appear on the exam. Some
questions contain answers; some do not. In a few cases, I have written
my own (italicized) comments after the answers, to clarify how I might
use the question or correct any misunderstanding the student may
have had in writing the question or the answer. Good luck!
Sample Questions
1.

What is decision-making?
The process of choosing from among alternatives.

2.
What are the 6 steps associated with effective decision
processes?
(1) recognition of decision requirement; (2) diagnosis and
analysis of
causes; (3) development of alternatives;

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(4) selection of desired
alternative; (5) implementation of
chosen alternative; and (6)
evaluation and feedback.
3.

What is the span of management or span of control?

The number of employees reporting to a supervisor (p.

267)
4.

What are the four roles in organizational change?

Inventor, Champion, Sponsor, and Critic (p. 305)

5.
__________________________ is the number of employees reporting
to a supervisor?
Span of management (or span of control)
6.

What do the letters in ACES stand for?

a.
b.
c.
d.

Assumptions, Criteria, Evaluation, Search

Assumptions, Criteria, Evaluation, Strategy
Assumptions, Criteria, Evoked Set, Search
Assumptions, Criteria, Evoked Set, Strategy

7.
Which of the following is not one of the 6 steps of effective
decision-making?
a.
b.
c.
d.
e.

Recognition of decision requirement

Diagnosis & analysis of causes
Development of Alternatives
Selection of desired alternative
None of the above

8.
What are the two cornerstones of organization development (OD)
as a change strategy?
Humanistic values and Systemwide focus
9.
______________________ define the action steps by which an
organization intends
to attain strategic goals.
Strategic plans
10. A _________________________________________ is a network of
facilities and processes that describes the flow of materials, finished
goods, services, information, and financial transactions from supplier,

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through the facilities and processes
that create goods and
services and that deliver them to the customer.
Value chain
11. A _____________________________________________is the portion of
the value chain that
focuses primarily on the physical movement of
good and materials, and
supporting flows of information and
financial transaction through the supply.
Supply chain
12. What is a competitive dominant customer experience often
called?
a. value chain
b. customer service
c. value proposition
d. none of the above
13. If you have two bosses and each one is in charge of a different
division,
project, or area, you are most likely working in company
with a:
a. Classical system
b. Cooperative system
c. Dual-hierarchical system
d. Matrix system
e. None of the above
14. Fill in the blank: What does the P and the E stand for in this
equation:
B = f (PxE).
P = _____Person _____ E =
____Environment_____
15.

What is the chain of command?

Chain of command is an unbroken line of authority that

links all
individuals in the organization and specifies who
reports to whom.
16. What is the difference between Centralization and
Decentralization?
Centralization means that decision authority is located
near the top of the organization. With decentralization,

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decision authority is pushed
organizational levels.

downward to lower

17. The attainment of organizational goals in an effective and

efficient manner through planning, organizing, leading, and controlling
organizational
resources is:
a. party planning
b. Einsteins organizational theory
c. management
d. controlling
LP: If I used this question, I would probably change it to a fill-inthe-blank format or write a different set of alternative choices.
18.

Which of the following skills is not a management skill?

a. conceptual skills
b. human skills
c. technical skills
d. critical skills

LP: Critical thinking skills are important at any management

level, even though
the text focuses on technical, human, and
conceptual skills. So, while you will likely see a question or two on the
exam about the kinds of skills managers need, I would format the
question differently so that critical skills was not the wrong answer.
For example, I might ask which skills are more important at
different management levels (see pp. 10-11, especially Exhibit
1.3).
19.

Whistle-blowing is:

a. a program designed to help employees deal with ethical

questions and
translate the valued stated in a Code of Ethics into
everyday behavior.
b. the employee disclosure of illegal, unethical, or
illegitimate practices
on the employers part.
c. a formal statement of the organizations values regarding
ethics and social issues.
d. a decision-making approach contending that acts are moral
when they promote the individuals best long-term interest.
LP: If I used this question, I would not want the correct answer to
be so obvious.
I would probably use different alternatives, such as
a process that encourages whistle while you work thinking.

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20.

What is the definition of Ambiguity?

Ambiguity means that the goals to be achieved or the

problem to be solved is unclear, alternatives are difficult to
define, and information
about outcomes is unavailable.
21. _______________________________________________ is the formal and
legitimate right of
a manager to make decisions, issue orders, and
allocate resources to achieve outcomes desired by the organization.
Authority
22.

What is the first step of being a leader?

a.
b.
c.
d.
e.

Being nice
Proper time management skills
Learning to listen
Self-awareness
All of the above

23. What occurs when departments are grouped together based on

similar
organizational outputs?
Divisional Structure
24. Explain the difference between of centralization and
decentralization.
Centralized organizational structures rely on one
individual to make
decisions and provide direction for the
company. Small businesses
often use this structure since
the owner is responsible for the
companys business
operations. Decentralized organizational structures often
have several individuals responsible for making
business
decisions and running the business. Decentralized
organizations rely on a team environment at different
levels in the
business. Individuals at each level in the
business may have some autonomy to make business
decisions.
25. Teams are at the core of __________________________________
management, which is the effort to involve employees in the
company's decision-making process.
a. autocratic

26.

b. participative
c. top-down
d. personnel
e. laissez-faire
What is expectancy?
a. The association between behavior and outcome.
b. The association between the effort and the behavior.
c. The value of the outcome.
d. None of the above.

LP: If I used this question, I would probably add another

alternative or two.
27.

True or False: Certainty is when probability equals one.

LP: There are no true-false questions on the exam. If I used this

question, it would probably appear as an alternative within a multiplechoice question.
28.

Groupthink occurs when:

a. a highly-charged attitude becomes stronger in group

presence.
b. thinking revolves around keeping harmony within a
highly cohesive
group, primarily through not
disagreeing with group opinion.
c. the tendency is to do less in a group situation.
d. performance increases because people are watching
e. All of the above
29. What is the model that is based on the assumption that
managers should make logical decisions that are economically sensible
and in the organizations best economic interests?
Classical Model
30. The _______________________________ is an unbroken line of
authority that links all individuals in the organization and specifics
who reports to whom.
Chain of command
31.

What is instrumentality?
The association between a behavior and an outcome.

LP: If I used this question, it would probably appear in multiplechoice format.

32.

What is Kants view of ethics?

33.

a. utilitarianism
b. locus of control
c. virtuous life
d. ethical dilemma
What are the different types of cultures?
Adaptability, Achievement, Involvement, and Consistency

LP: If I used this question, I would probably give you two of these
in the
question and ask you to list the other two in a fill-in-theblank question.
34.

What is the difference between a team and a group?

35.

What is a merger?
When two or more organizations combine to become one.

LP: If I used this question, I would probably reverse the order by

giving you the definition and then asking you to fill-in-the-bank the
correct answer.
36
What is the difference between being effective and being
efficient?
Being efficient means how well resources are used, least
time and resources spent. Effective means accomplishing the
end point at the
highest-quality level.
LP: If I used this question, it would be in a multiple-choice or fillin-the-blank
format, not an essay question. For example, I might
give you the definition of
effective and then ask you to write in the
answer in a fill-in-the-blank format.
37. All of the following are biases of why managers often make bad
decision
except for:
a. Being influenced by initial impression
b. Overconfidence
c. Being influenced by emotions

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d. Satisficing
e. Seeing what you want to see
38.

What are the reasons for having zero or low expectancy?

The reasons for having zero or low expectancy are the

goal is
unreasonable (you cant do it) or your selfconfidence is low.
LP: Expectancy refers to the question, Can I do it? So,
expectancy will be zero
or low when the person believes they
cant do the task. Or, to say it differently, when the person believes
that exerting the effort will not lead to the necessary behavior to
complete the task. Believing the goal is unreasonable or low selfconfidence are two common reasons, but not the only reasons
for zero/low
expectancy. Motivation will be zero when expectancy
is zero.
39. What is the difference between Internal locus of control and
External locus of control?
Internal locus of control is the belief that you have
control over the
outcome. Your choice directly reflects
results and rewards. External locus of control is the belief
that outcomes are completely out of ones
control.
LP: If I used this question, it would be multiple-choice or fill-inthe-blank.
40. If an individual believes they have control over what happens to
them, what
type of locus of control do they have?
a.
b.
c.
d.
e.

internal
external
strong
weak
none of the above

LP: If I used this question, I would probably add another

alternative or two.
41.

What are the differences between efficiency and effectiveness?

Efficiency pertains to the amount of resources raw

materials, money,
and people used to produce a desired
volume of output. Effectiveness
refers to the degree to
which the organization achieves a stated goal. Performance is

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defined as the organizations ability to attain its goal by
using resources in an efficient and effective manner.
LP: The question asked is answered by the first two sentences of
the answer.
42.

What is needed for an organization to be effective?

Corporate culture should be aligned with organizational

strategy and
the needs of the external environment.
LP: While the alignment of an organizations strategy with
environmental
needs is, indeed, an important consideration, more is
needed to be effective.
You also have to have competent,
dedicated people; a clear vision of where the organization is headed
and a smart strategy for getting there; sufficient
resources to
propel the organization forward; and more.
43. A ___________________________ is one that does not quickly wear
out and typically lasts at least three years.
44.

Durable good
What is the function of boundary spanning roles?

Boundary spanning roles link and coordinate the

organization with key
elements in the external
environment.
LP: The term boundary spanning roles refers to people who
work at the
boundary of an organization, such as a
Receptionist who takes calls from the
environment and connects
the call to someone inside the organization.
45.

What are the two ways to plan?

The two ways to plan are feedback (the response you are
receiving) and feedforward (imagining the future response).
LP: Planning based on feedback from the environment is
reactive, whereas
feedforward planning is proactive (takes action
before an error has occurred).
46. ________________________________________ refers to a part of the
ACES process where
you look at the working beliefs about the
decision situation

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Assumptions
47.

What is Value Proposition?

A competitively dominant customer experience

48.

What is variant?

Variant is a feature that departs from the standard CBP

and is normally
location- or firm specific
49.

Complete a chart of Corporate Social Responsibility.

[See page 137 in text, Exhibit 5.5, for a diagram that

answers question]
LP: I would not ask you to reproduce the diagram from the text.
However, you
should know the meaning of corporate social
responsibility, how it relates to
organizational
strategy/effectiveness, and how it is evaluated (see chapter 5).
50. What position in a company requires the highest level of
conceptual skills?

51.

a. top managers
b. middle managers
c. first-line managers
d. nonmanagers
e. All of the above
What is outsourcing?

a. looking for innovative ideas and approaches, particularly

during turbulent times.
b. using information to keep in close touch with customers.
c. shifting selected functions or activities to other
organizations that
can do the work more efficiently.
d. code of moral principles and values that govern the behavior
of a person or
group with respect to what is right or wrong.
LP: If I used this question, I would probably use different
alternatives.

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52. An individual who has two values but cannot simultaneously
[honor] them is going through:
a. a problem
b. an ethical dilemma
c. an unfortunate situation
d. none of the above
LP: While B is the intended correct answer, A and C could also be
correct, so I
would not be able to ask the question this way.
Another way to do it would be to
give you the definition of an ethical
dilemma (see pp. 125-26) and then you would fill-in-the-blank with
ethical dilemma as the correct answer.
53.

What is risk from a probability standpoint?

Risk is when the probability of something is [between] 0

and 1
(Certainty, p = 1; Risk, 0<p<1; Uncertainty, cannot
assign a probability).
LP: Risk is always an important consideration. If I used this
question, it would
be in a fill-in-the-blank or multiple-choice
format.
54.

What is Scientific Management?

a. emphasizes scientifically determined jobs and

management practices
as a way to improve efficiency and
labor productivity.
b. emphasizes the ability and skills of the manager and the
impact it has on the environment of the workplace.
c. a predetermined skill set that all managers must possess to
effectively control the workplace.
d. a method that determines whether the manager influences
the person and environment of the workplace.
LP: Scientific Management, fathered by Frederick Taylor and part
of the
Classical Perspective, proposed that workers could be
retooled like machines.
55. The following all pertain to Decisional roles except:
a. entrepreneur
b. disturbance handler
c. liaison
d. resource allocator
e. negotiator

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LP: Liaison is an interpersonal role, not a decisional role.

56.

The Hawthorne Effect illustrated that:

a. employees did not work harder when element of their

environment were
changed.
b. employees worked harder only when elements were upgraded.
c. employees worked harder regardless of the change
made to their environment.
d. the results varied too much to tell.
LP: While C is, indeed, the correct answer above, the important
finding from the Hawthorne studies, now known as the Hawthorne
Effect, is that employees
will work harder when they believe
management cares (see pp. 41-42).
57. What is the belief that the average human being has an inherent
dislike for work and prefers to be directed?
Theory X
LP: Douglas McGregor believed that a managers behavior
toward the worker
was based upon whether the manager held
Theory X or Theory Y assumptions.
58. The quote from CSULB, Graduation Begins Today, is an
example of:
a. story
b. symbol
c. slogan
d. all of the above
LP: If I used this question, I would probably add another
alternative or two.
59. If B = f (PxE), can we blame the Wall Street environment for
Enron corporate greed?
LP: No answer was given, but I like the question. It is a good
example of the kind of question you are likely to be asked in the
Short Answer Essay section. It
requires you to think, and to apply
the formula to a relevant business issue.
60. The fourth box that makes up the Johari Window (lower righthand corner)
represents information or characteristics that are

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____________________ to the
individual evaluating and
___________________ to others.
a. known, unknown
b. known, known
c. unknown, unknown
d. unknown, known
LP: If I used this question, I would probably add another
alternative or two.
61. A ______________ is a desired future state that the organization
wants to realize.
Goal
62. __________________________ is a method whereby managers and
employees design
goals for every department and project, and
use them to monitor subsequent
performance.
Management by Objectives (MBO)
63. The _____________________ is a widely used tool for systematically
diagnosing the
principal competitive pressures in a market and
assessing the strength and importance of each.
Five-forces model of competition
LP: See pp. 214-218.
64.

What are the 3 management styles?

Directing, discussing, delegating

LP: If I used this question, it would be multiple-choice or fill-inthe-blank.

65. What are the forces in Michael Porters Five-Forces Model of
Competition?
competitive pressures associated with market
maneuvering, threats of new entrants, attempts of
companies in other industries to win buyers,
supplier
bargaining power and buyer bargaining power
LP: See pp. 214-218.

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66.

What does SWOT stand for?

67.

Strengths, weaknesses, opportunities, threats.

What is the purpose of SWOT analysis?

SWOT provides a good assessment of the competitive

stature of the company by looking at important internal
(strengths and weaknesses)
and external (opportunities
and threats) considerations.
68. What is the difference between competitive advantage and
sustainable
competitive advantage?
LP: Competitive advantage is tied to a timeline. The ability of a
company to
sustain their competitive advantage is essential in
todays global economy.
69.

What is risk?
a. P = 1
b. P = ?
c. 0 < P < 1
d. None of the above

70. A companys __________________ lays out its future direction,

performance
targets, and strategy.
Strategic plan
71.

What is strategy?

A companys strategy consists of the competitive moves

and business
approaches that managers are employing to
grow the business, attract
and please customers, compete
successfully, conduct operations, and
achieve the targeted
levels of organizational performance.
72.

What is an informal definition of strategy?

The art of going from A to B

FINALLY, everything you need to know for the exam is contained in this
Study Guide. Please WRITE or PRINT legibly when you take the exam,
and give thoughtful answers to the short-answer essay questions. It

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does you no good to panic. If you have questions before the exam,
please let me know. I believe in you. You can do it!