COB 300 MANAGEMENT EXAM #1
QUESTIONS AND ANSWERS
charismatic leaders - Answer-create an exceptionally strong relationship with
employees; have a vision for the future, set values and morals, act consistently with the
vision, communicate high expectations for performance, and show confidence in all
employees and their ability to achieve the vision; important that they are used ethically
transactional leaders - Answer-exchange process where employees are rewarded for
good performance and punished for poor performance
transformational leaders - Answer-motivates employees to go beyond their own self-
interests and act upon what would be best for the group
trait theory - Answer-effective leaders all have a similar set of traits and characteristics
normative decision theory - Answer-leaders deciding whether or not employees should
be involved in decisions and to what degree
principals of ethical decision making - Answer-long-term self interest; religious
injunctions, government requirements, individual rights personal virtue, distributive
justice, and utilitarian benefits
shareholders - Answer-organization's overriding goal should be profit maximization for
shareholders
stakeholders - Answer-management's most important responsibility is long-term
survival; achieved by satisfying the interests of multiple stakeholders
legal responsibilities - Answer-obey society's laws and regulations
economic responsibilities - Answer-make a profit by producing a valued product or
service
discretionary responsibilities - Answer-social roles that a company fulfills beyond its
economic, legal, and ethical responsibilities
ethical responsibilities - Answer-abide by accepted principles of right and wrong when
conducting business
production workplace deviance - Answer-quality and quantity slack
property workplace deviance - Answer-aimed at organization's property/equipment
, political workplace deviance - Answer-using influence to do harm
personal aggression deviance - Answer-taking physical action against another
Kohlberg's pre conventional stages - Answer-1 and 2: decisions are based upon self-
interest; you avoid getting yourself in trouble and advancing your wants and needs
Kohlberg's conventional stages - Answer-3 and 4: decisions are based upon social
expectations and do what others are doing; in the fourth stage you do whatever the law
permits you to do
Kohlberg's post conventional stages - Answer-5 and 6: you make decisions based off of
what you think is best for society and your beliefs of right and wrong
Porter's Five Industry Forces - Answer-threat of new entrants, bargaining power of
suppliers, bargaining power of buyers, threat of substitute products or services, and
rivalry among existing competitors
cost leadership - Answer-producing a product of acceptable quality at consistently lower
production costs than competitors
differentiation - Answer-providing a product that is different from competitors' offerings
that customers are willing to pay premium price for it
focus strategy - Answer-involves using cost leadership or differentiation to produce a
specialized product
focused-differentiation - Answer-offer products that are unique compared to those of
competitors and target a narrow market
defenders - Answer-seek moderate, steady growth by offering a limited range of
products and services to a well-defined set of customers
prospectors - Answer-seek fast growth by searching for new market opportunities,
encouraging risk taking, and being the first to bring innovative new products to market
analyzers - Answer-seek moderate, steady growth and limited opportunities for fast
growth
reactors - Answer-react to changes in the external environment after they occur
job descriptions - Answer-written description of the basic tasks, duties, and
responsibilities required of an employee holding a particular job
job analysis - Answer-purposeful, systematic process for collecting information on the
important work-related aspects of a job
QUESTIONS AND ANSWERS
charismatic leaders - Answer-create an exceptionally strong relationship with
employees; have a vision for the future, set values and morals, act consistently with the
vision, communicate high expectations for performance, and show confidence in all
employees and their ability to achieve the vision; important that they are used ethically
transactional leaders - Answer-exchange process where employees are rewarded for
good performance and punished for poor performance
transformational leaders - Answer-motivates employees to go beyond their own self-
interests and act upon what would be best for the group
trait theory - Answer-effective leaders all have a similar set of traits and characteristics
normative decision theory - Answer-leaders deciding whether or not employees should
be involved in decisions and to what degree
principals of ethical decision making - Answer-long-term self interest; religious
injunctions, government requirements, individual rights personal virtue, distributive
justice, and utilitarian benefits
shareholders - Answer-organization's overriding goal should be profit maximization for
shareholders
stakeholders - Answer-management's most important responsibility is long-term
survival; achieved by satisfying the interests of multiple stakeholders
legal responsibilities - Answer-obey society's laws and regulations
economic responsibilities - Answer-make a profit by producing a valued product or
service
discretionary responsibilities - Answer-social roles that a company fulfills beyond its
economic, legal, and ethical responsibilities
ethical responsibilities - Answer-abide by accepted principles of right and wrong when
conducting business
production workplace deviance - Answer-quality and quantity slack
property workplace deviance - Answer-aimed at organization's property/equipment
, political workplace deviance - Answer-using influence to do harm
personal aggression deviance - Answer-taking physical action against another
Kohlberg's pre conventional stages - Answer-1 and 2: decisions are based upon self-
interest; you avoid getting yourself in trouble and advancing your wants and needs
Kohlberg's conventional stages - Answer-3 and 4: decisions are based upon social
expectations and do what others are doing; in the fourth stage you do whatever the law
permits you to do
Kohlberg's post conventional stages - Answer-5 and 6: you make decisions based off of
what you think is best for society and your beliefs of right and wrong
Porter's Five Industry Forces - Answer-threat of new entrants, bargaining power of
suppliers, bargaining power of buyers, threat of substitute products or services, and
rivalry among existing competitors
cost leadership - Answer-producing a product of acceptable quality at consistently lower
production costs than competitors
differentiation - Answer-providing a product that is different from competitors' offerings
that customers are willing to pay premium price for it
focus strategy - Answer-involves using cost leadership or differentiation to produce a
specialized product
focused-differentiation - Answer-offer products that are unique compared to those of
competitors and target a narrow market
defenders - Answer-seek moderate, steady growth by offering a limited range of
products and services to a well-defined set of customers
prospectors - Answer-seek fast growth by searching for new market opportunities,
encouraging risk taking, and being the first to bring innovative new products to market
analyzers - Answer-seek moderate, steady growth and limited opportunities for fast
growth
reactors - Answer-react to changes in the external environment after they occur
job descriptions - Answer-written description of the basic tasks, duties, and
responsibilities required of an employee holding a particular job
job analysis - Answer-purposeful, systematic process for collecting information on the
important work-related aspects of a job
