ADMN 232

Administrative Principles
Sample Final Examination Questions
NOTE TO STUDENTS: This sample final examination is representative of the TYPES
of questions you will encounter on the actual exam. However, it is NOT representative of
the NUMBER of questions you can expectthe actual final examination will have many
more questions.
Answers are provided at the end of this document.
Section 1: Multiple Choice Questions
1.

Which of the following is one of the four conditions that must be met if a firms
resources are to be used to achieve a sustainable competitive advantage?
a.
b.
c.
d.

2.

Which of the following is (are) a major approach to corporate-level strategy?

a.
b.
c.
d.

3.

portfolio strategy
adoptable strategies
both of the above are such approaches
neither (a) nor (b) are such approaches

Significant cost reductions, employee layoffs, closing poorly performing stores,

offices, or manufacturing plants, or closing or selling entire lines of products or
services would be characteristic of a ________ strategy.
a.
b.
c.
d.

4.

inexpensive
easily imitated
easily duplicated
nonsubstitutable

portable
retrenchment
stability
first-level

Which of the following is not one of the five industry forces that determine an
industrys overall attractiveness and potential for long-term profitability?
a.
b.
c.
d.

character of the rivalry

threat of nonsubstitutable resources
bargaining power of suppliers
All of the above are among those five industry forces.

5.

Which of the following is one of the positioning strategies identified by Porter?

a.
b.
c.
d.

6.

The term organizational ________ refers to a collection of planned change

interventions designed to improve an organizations long-term health and
performance.
a.
b.
c.
d.

7.

early in the cycle

at the midpoint
at the end
at both the beginning and end

The term ________ refers to patterns of innovation over time that can create
sustainable competitive advantage.
a.
b.
c.
d.

9.

innovation
development
change
dialogue

In the typical S-curve pattern of innovation, small amounts of effort will result in
significant increases in performance at which point(s) in the cycle?
a.
b.
c.
d.

8.

entrepreneurial orientation
diversification
focus
all of the above

organizational innovation
organization development
results-driven change
innovation streams

Which of the following stages of organizational decline is typically not

reversible?
a.
b.
c.
d.

inaction
faulty action
crisis
dissolution

10.

Which of the following is one of the basic methods recommended for use in
managing resistance to change?
a.
b.
c.
d.

11.

The term ________ refers to the vertical and horizontal configuration of

departments, authority, and jobs within a company.
a.
b.
c.
d.

12.

It allows work to be done by highly qualified specialists.

It increases costs by reducing duplication.
It produces managers with broader experience and expertise.
It simplifies coordination between departments.

The primary disadvantage of ________ departmentalization is duplication of

resources.
a.
b.
c.
d.

15.

reengineering
standardization
organizational structure
organizational process

Which of the following is a characteristic of functional departmentalization?

a.
b.
c.
d.

14.

departmentalization
organizational process
organizational structure
interorganizational process

The term ________ refers to the collection of activities that transforms inputs into
outputs that customers value.
a.
b.
c.
d.

13.

education and communication

selective participation
testing
command and control

controlling
customer
structural
all of the above

The ________ form of departmentalization is notorious for confusion and

conflict.
a.
b.

matrix
structural

c.
d.
16.

Which of the following is/are among the dimensions that have traditionally
characterized organizational authority?
a.
b.
c.
d.

17.

centralize authority.
decentralize authority.
emphasize line authority.
evaluate interdependence.

In job ________, companies are able to retain the economic benefits of

specialized work, but by moving the worker, the greater variety of tasks makes the
work less boring and more satisfying for workers.
a.
b.
c.
d.

20.

linear
line
mechanistic
organic

Where standardization is important, it is appropriate to

a.
b.
c.
d.

19.

chain of delegation
departmentalization
degree of centralization
all of the above

A(n) ________ function is an activity that contributes directly to creating or

selling the companys products.
a.
b.
c.
d.

18.

controlling
product

enlargement
rotation
enrichment
specialization

Which of the following statements about modular organizations is false?

a.
b.
c.
d.

They allow a high level of control over business processes and output.
They cost significantly less to run than traditional organizations.
They outsource all but the core business activities that they can perform
best.
Their success is dependent upon reliable vendors and suppliers.

21.

When teams are used properly and in the right settings, which of the following is
a potential result?
a.
b.
c.
d.

22.

The term ________ refers to training team members in how to do all or most of
the jobs performed by the other team members.
a.
b.
c.
d.

23

self-designing teams
employee involvement teams
semi-autonomous work groups
self-migrating teams

The term ________ refers to the process of finding, developing, and keeping the
right people to form a qualified work force.
a.
b.
c.
d.

25.

cross training
job enlargement
both a. and b.
neither a. nor b.

Which type of team has the authority to change its composition in addition to all
of its tasks and work methods?
a.
b.
c.
d.

24.

They hinder the organizations ability to respond to specific problems and

challenges.
They can dramatically improve company performance.
They can instill a sense of vitality in the workplace that is otherwise
difficult to achieve.
Both b. and c.

human resource organizing

human resource management
work force forecasting
recruiting

Which of the following statements about sexual harassment is true?

a.
b.
c.
d.

Only people who have themselves been harassed can file complaints or
lawsuits.
Sexual harassment can include agents of employers, such as consultants,
as well as nonemployees.
Sexual harassment cannot occur between people of the same sex.
all of the above

26.

The term ________ refers to procedures used to verify the truthfulness and
accuracy of information that applicants provide about themselves and to uncover
negative, job-related background information not provided by applicants.
a.
b.
c.
d.

27.

Which of the following is an example of an objective performance measure?

a.
b.
c.
d.

28.

They influence the initiation of effort.

They influence the direction of effort.
They influence the persistence of effort.
all of the above

The basic component(s) of equity theory are

a.
b.
c.
d.

30.

trait rating scales

behavioural observation scales
sales level
all of the above

Which of the following is/are among the characteristics of the forces involved in
motivation?
a.
b.
c.
d.

29.

employment references
background check
validation procedure
biographical data assessment

inputs
outcomes
referents
all of the above

All of the following are among the practical things recommended for managers to
do to use expectancy theory to motivate employees, except
a.
b.
c.
d.

assign specific, challenging goals.

systematically gather information to find out what employees want from
their jobs.
take clear steps to link rewards to individual performance in a way that is
clear and understandable to employees.
empower employees to make decisions.

Section 2: Written Response Questions

1.

Identify the positioning strategies and the adaptive strategies that may be used at
the industry level. Describe how to differentiate between positioning strategies
and adaptive strategies.

2.

Differentiate the mechanistic and organic approaches to organizational design,

and specify the circumstances under which each is most appropriate for use by a
company.

3.

Define leadership and management, and differentiate between leaders and

managers by clarifying the focus of each.

Answer Key for Sample Final Examination Questions

Section 1: Multiple Choice Questions
1. D
2. A
3. B
4. B
5. C
6. B
7. B
8. D
9. D
10. A
11. C
12. D
13. A
14. B
15. A
16. C
17. B
18. A
19. B
20. A
21. D
22. A
23. A
24. B
25. B
26. B
27. C
28. D
29. D
30. A

Section 2: Written Response Questions

1. Positioning strategies include cost leadership, differentiation, and focus. They are
designed to effectively protect a company from the effects of industry-wide
competition, and to create sustainable competitive advantage. The purpose of
adaptive strategies is different. It is to choose an industry-level strategy that is best
suited to changes in the organization's external environment. The four kinds of
adaptive strategies are defenders, analyzers, prospectors, and reactors.
2. Mechanistic organizations are characterized by specialized jobs and responsibilities,
precisely defined, unchanging roles, and a rigid chain of command based on
centralized authority and vertical communication. They tend to focus on
organizational structure. This type of organization works best in stable, unchanging
business environments, which were more prevalent before 1980. By contrast, organic
organizations are characterized by broadly defined jobs and responsibility, loosely
defined, frequently changing roles, and decentralized authority and horizontal
communication based on task knowledge. Organic organizations are more concerned
with organizational processes than organizational structure. This type of organization
works best in dynamic, changing business environments, of the sort that many
contemporary businesses now face.
3. Leadership is the process of influencing others to achieve group or organizational
goals. Management is the process of getting work done through others. Leaders are
different from managers. The primary difference is that leaders are concerned with
doing the right thing, while managers are concerned with doing things right.
Furthermore, managers have a short-term focus and are concerned with the status
quo, with means rather than ends, and with solving others' problems. By contrast,
leaders have a long-term focus, are concerned with change, with ends rather than
means, and with inspiring and motivating others to solve their own problems.