MANAGEMENT EXAM 2 EXAMINATION
TEST 2026 QUESTIONS WITH SOLUTIONS
◉ What does is mean to satisfice? Answer: Because of constraints,
managers don't make an exhaustive search for the best alternative.
•Instead, managers seek alternatives until they find one that is
satisfactory, not optimal.
"good enough"
◉ What is the representative bias? Answer: involves estimating the
likelihood of an event by comparing it to an existing prototype that
already exists in our minds.
◉ What are the advantages of group decision-making? Answer: Greater
pool of knowledge, Different perspectives, Intellectual stimulation,
Better understanding of decision rationale, Deeper commitment to the
decision
◉ What are the disadvantages of group decision-making? Answer: Few
people dominate or intimidate, Satisficing - the "good enough" decision,
Goal displacement - other issues may arise, Groupthink - agreeing for
the sake of unanimity and thus avoid accurately assessing the decision
situation
◉ What are the three levels organizational culture? Answer: Level 1:
Observable artifacts
, physical manifestations such as manner of dress, awards, myths and
stories about the company
visible behavior exhibited by managers and employees
Level 2: Values
Espoused values
• explicitly stated values and norms preferred by an organization
Enacted values
• represent the values and norms actually exhibited in the organization
Level 3: Basic Assumptions
represent the core values of the organization's culture
those taken for granted and highly resistant to change
◉ What is the difference between enacted and espoused values?
Answer: Espoused values
explicitly stated values and norms preferred by an organization.
Enacted values
represent the values and norms actually exhibited in the organization
◉ What term describes the number of people reporting directly to a
given manager? Answer: Span of control: the number of people
reporting directly to a given manager; narrow or wide
◉ What kind of organizational structure groups people with similar
occupational specialties together in formal groups Answer: Functional
Structure
TEST 2026 QUESTIONS WITH SOLUTIONS
◉ What does is mean to satisfice? Answer: Because of constraints,
managers don't make an exhaustive search for the best alternative.
•Instead, managers seek alternatives until they find one that is
satisfactory, not optimal.
"good enough"
◉ What is the representative bias? Answer: involves estimating the
likelihood of an event by comparing it to an existing prototype that
already exists in our minds.
◉ What are the advantages of group decision-making? Answer: Greater
pool of knowledge, Different perspectives, Intellectual stimulation,
Better understanding of decision rationale, Deeper commitment to the
decision
◉ What are the disadvantages of group decision-making? Answer: Few
people dominate or intimidate, Satisficing - the "good enough" decision,
Goal displacement - other issues may arise, Groupthink - agreeing for
the sake of unanimity and thus avoid accurately assessing the decision
situation
◉ What are the three levels organizational culture? Answer: Level 1:
Observable artifacts
, physical manifestations such as manner of dress, awards, myths and
stories about the company
visible behavior exhibited by managers and employees
Level 2: Values
Espoused values
• explicitly stated values and norms preferred by an organization
Enacted values
• represent the values and norms actually exhibited in the organization
Level 3: Basic Assumptions
represent the core values of the organization's culture
those taken for granted and highly resistant to change
◉ What is the difference between enacted and espoused values?
Answer: Espoused values
explicitly stated values and norms preferred by an organization.
Enacted values
represent the values and norms actually exhibited in the organization
◉ What term describes the number of people reporting directly to a
given manager? Answer: Span of control: the number of people
reporting directly to a given manager; narrow or wide
◉ What kind of organizational structure groups people with similar
occupational specialties together in formal groups Answer: Functional
Structure
