Exam

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

CHAPTER 1

MANAGEMENT AND MANAGERS:YESTERDAY, TODAY, AND TOMORROW

MULTIPLE-CHOICE QUESTIONS

MANAGEMENT DEFINED recallAnswer: D

1. The process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization is called A. planning.B. administration.C. controlling.D. management.E. directing.

recallAnswer: B

2. The “art of getting things done” through other people was Mary Parket Follett’s classic definition of A. organizing.B. management.C. planning.D. controlling.E. administration.

recallAnswer: D

3. Please complete the following sentence in a manner that is consistent with the definition of management. Management is the process of administering and coordinating resources effectively and efficiently in an effort to achieve the __________ of the organization. A. operational planB. proper administrationC. controlD. goalsE. strategic plan

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recallAnswer: A

4. Management is defined as A. the process of administering and coordinating resources effectively and

efficiently and in an effort to achieve the goals of the organization.B. the forces acting on or within a person that cause the person to behave in a specific, goal-directed manner.C. a process in which one person or group transmits some type of information to another person or group.D. the system of shared beliefs and values that develops within an

organization.E. the interaction between business and society.

recallAnswer: A

5. Using the fewest inputs to generate a given output is called A. efficiency.B. control.C. goal attainment.D. effectiveness.E. planning.

recallAnswer: B

6. Pursuing the appropriate goals and “doing the right thing” is referred to as A. planning.B. effectiveness.C. goal attainment.D. control.E. efficiency.

recallAnswer: D

7. __________ is defined as using the fewest inputs to generate a given output. A. PlanningB. EffectivenessC. ControlD. EfficiencyE. Goal attainment

recallAnswer: B

8. __________ is defined as pursuing the appropriate goals. A. Goal attainmentB. EffectivenessC. CapabilityD. ControlE. Productiveness

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applicationAnswer: A

9. Suppose the managers in an auto plant are primarily concerned with training their workers to use the fewest inputs to generate a given level of output. This scenario depicts managers who are primarily focused on A. efficiency.B. effectiveness.C. directing.D. controlling.E. strategic planning.

recallAnswer: E

10. Suppose the managers of a theme park are primarily concerned with pursuing appropriate goals such as providing their guests the optimal mix of attractions, restaurants, and shops. This scenario depicts managers who are primarily focused on A. directing.B. controlling.C. planning.D. efficiency.E. effectiveness.


11. Imagine that you are a manager of a mutual fund where you are held responsible to your shareholders. The shareholders are most concerned with the effectiveness of your decisions and thus you respond accordingly. This would be most evident in which of the following? A. maximizing shareholder wealth with your investmentsB. being first to purchase risky stocksC. purchasing only safe blue chip stocks to avoid any risksD. hiring the brightest peopleE. buying stocks at the cheapest price available

applicationAnswer: D

12. Downtown Delivery is a small courier firm employing between five and seven drivers who make pick-ups and deliveries seven days a week. Its owner and founder, Tony Licciardi, is concerned with fluctuating fuel prices and decides to purchase cars for his fleet that each exceed 35 miles per gallon. The best means to characterize Tony’s decision would be which of the following basic management terms? A. controllingB. directing C. strategic planningD. efficiencyE. effectiveness

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criticalAnswer: D

13. Airlines such as Continental, United, and Delta operate with very narrow profit margins. As a result, these companies try hard to use the fewest inputs (jet fuel, maintenance hours, ticket agents etc.) to generate a given output. This information tells us that __________ is a critical managerial issue at major airlines. A. effectivenessB. proficiencyC. potencyD. efficiencyE. goal setting

recallAnswer: E

14. An organization is a group of individuals who work together A. to maximize shareholder wealth.B. to generate the most profit.C. to become more efficient.D. to reduce costs.E. toward common goals.

THE PROCESS OF MANAGEMENT recallAnswer: E

15. The four major functions associated with the process of management are A. planning, organizing, coordinating, and controlling.B. planning, leading, controlling, and motivating.C. planning, organizing, informing, and controlling.D. planning, informing, leading, and controlling.E. planning, leading, organizing, and controlling.

applicationAnswer: B

16. Whether a manager works for a large company such as General Motors or Ford, or a small company that employs only ten people, the four functions of management remain the same. These functions are A. planning, organizing, supervising, and controlling.B. planning, leading, organizing, and controlling.C. planning, organizing, informing, and controlling.D. planning, informing, supervising, and controlling.E. planning, communicating, motivating, and controlling.

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recallAnswer: D

17. The four major functions of management include planning, leading, organizing, and A. directing.B. informing.C. administering.D. controlling.E. supervising.


18. As a food and beverage controller for an exclusive hotel, Ron Pitisci regularly meets with various chefs and food preparers. By meeting face-to-face with these individuals, Ron hopes to ensure that the foods and beverages he orders from various suppliers will meet the expectations of the chefs. After the meetings, Ron must make many decisions regarding which suppliers from whom to order. At this stage, Ron is most concerned with which of the management functions? A. planningB. leadingC. administeringD. controllingE. supervising


19. The student government president at your college must often determine what projects/programs the association would like to accomplish during his/her administration. The president must then decide who will do these tasks and how they will be managed and coordinated. The president in this situation is practicing which of the following functions of management? A. organizingB. informingC. administeringD. budgetingE. supervising

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recallAnswer: C

20. Which of the following is not one of the four major functions of management? A. planningB. controllingC. administeringD. leadingE. organizing

recallAnswer: D

21. The managerial function that involves setting goals and defining the actions necessary to achieve those goals is called A. delegating.B. controlling.C. organizing.D. planning.E. monitoring.


22. Patricia Tailor, the CEO of Coastal Software, just returned from a two-day management seminar. The seminar stressed that fact that it is very important for managers to set goals and define the actions necessary to achieve those goals. Patricia thought about this information in the context of management and correctly concluded that goal-setting is part of the __________ function of management. A. directingB. planningC. controllingD. leadingE. organizing

recallAnswer: C

23. The managerial function that involves determining the tasks to be done, who will do them, and how those tasks will be managed and controlled is called A. delegating.B. controlling.C. organizing.D. planning.E. monitoring.

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applicationAnswer: E

24. When designing the new department of Technology Transfer at the medical school, Nicole Baute made sure that it was structured in light of its strategic and operational goals and that the office and its staff would be responsive to changes in the medical environment. Nicole’s actions can best be described as ______ the new department. A. motivatingB. controllingC. planningD. leadingE. organizing

recallAnswer: C

25. The managerial function that involves motivating and directing members of an organization so that they contribute to the achievement of the goals of the organization is called A. directing.B. controlling.C. leading.D. planning.E. supervising.

criticalAnswer: A

26. Fremont Labs is a biotechnology company in a very fast-paced industry. As a result, the company needs visionary managers who are capable of empowering employees in a manner that transforms visions into reality. Fremont Labs need managers who are very strong in the __________ function of management. A. leadershipB. controllingC. organizingD. planningE. monitoring

recallAnswer: B

27. _______ is an important function in the managerial process because it provides a method for ensuring that the organization is moving toward the achievement of its goals. A. SupervisingB. ControllingC. DirectingD. PlanningE. Leading

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28. Suppose you went to work for an organization, and your manager told you that her principal role in the firm was to monitor performance and identify deviations between planned and actual results. If this was the case, your manager would be focusing on the function of management called A. delegating.B. controlling.C. organizing.D. monitoring.E. planning.


29. If your boss rarely verified or checked the work that you completed on the job, and instead relied solely on “your word,” we would describe this boss as not practicing the ________ function of management with much vigor. A. planningB. organizingC. motivatingD. controllingE. monitoring

MANAGERIAL ROLES recallAnswer: B

30. According to Mintzberg, managers serve three primary roles: A. interpersonal, staffing, and decisionalB. interpersonal, informational, and decisionalC. staffing, informational, and decisionalD. controlling, informational, and decisionalE. interpersonal, controlling, and decisional

recallAnswer: C

31. The three interpersonal roles played by a manager are A. figurehead, disseminator, and disturbance handler.B. leader, monitor, and negotiator.C. figurehead, leader, and liaison.D. figurehead, spokesperson, and disseminator.E. spokesperson, disseminator, and liaison.

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recallAnswer: A

32. The three interpersonal roles played by a manager are figurehead, disseminator, and A. leader & liaison.B. director.C. administrator.D. executive officer.E. technology advocate.

recallAnswer: E

33. Which one of the following managerial roles arises directly from the manager's formal authority base in his or her company? A. contractualB. hierarchicalC. decisionalD. informationalE. interpersonal


34. Because managers are largely responsible for the success or failure of their organizational units, they must also play the role of leaders within their work groups. Dr. Andy Sharp, as chair of the Business Division, must work with and through the faculty in his division to ensure the goals of the division and college are met. According to Mintzberg, when Dr. Sharp performs these duties he is fulfilling his A. informational role.B. decisional role.C. administrative role.D. contractual role.E. interpersonal role.


35. As members of Congress, Representatives work with both their colleagues in the Congress and their constituents back in their home states. They must be politically sensitive to important issues so that they can develop relationships between both parties. In this capacity, Representatives are performing which of the following roles? A. monitorB. liaisonC. figurehead A. leaderE. disseminator

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criticalAnswer: E

36. When General Motors breaks ground on a new production facility, John F. Smith, the CEO of General Motors, is often present to participate in the ribbon-cutting ceremony. On these occasions, Mr. Smith is performing a/an __________ role for his company. A. contractualB. routineC. decisionalD. informationalE. interpersonal

recallAnswer: D

37. The three informational roles played by a manager are A. figurehead, disseminator, and disturbance handler.B. leader, monitor, and negotiator.C. figurehead, leader, and liaison.D. monitor, disseminator, and spokesperson.E. negotiator, monitor, and disturbance handler.

applicationAnswer: C

38. As a manager of her own small business, Tyler Seilhan continually scans both the internal and external environments of her business for useful information. This would be fulfilling which managerial role? A. disseminatorB. leaderC. monitorD. entrepreneurE. resource allocator


39. Hoping to avoid labor unrest, the manager of a shipyard decides to withhold certain payroll information from the workers. Instead, the manager makes sure that the shipbuilders are each given the information necessary to perform their duties efficiently and effectively. This is an example of which managerial role? A. spokespersonB. disturbance handlerC. disseminatorD. monitorE. negotiator

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40. In her managerial role of ________ for the Mayor’s office, Marie-Luise often must communicate information to constituents and members of the press. A. disseminatorB. disturbance handlerC. monitorD. negotiatorE. spokesperson

recallAnswer: C

41. The four decisional roles played by a manager are A. entrepreneur, disturbance handler, negotiator, and disseminator.B. disturbance handler, resource allocator, liaison, and leader.C. entrepreneur, disturbance handler, resource allocator, and negotiator.D. liaison, spokesperson, entrepreneur, and negotiator.E. entrepreneur, liaison, leader, and monitor.

recallAnswer: A

42. After managers scan the internal and external environments of their organization for changes that may present opportunities, they often initiate projects that capitalize on those opportunities that are identified. This is an example of which managerial role? A. entrepreneurB. disturbance handlerC. negotiatorD. resource allocatorE. monitor


43. As manager of a small business, Matthew Domas must often determine which projects will receive funding for the coming year. When acting in this role, Mr. Domas is performing his A. hierarchical role.B. administrative role.C. decisional role.D. interpersonal role.E. informational role.

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SCOPE AND LEVELS OF MANAGERS applicationAnswer: E

44. Suppose that you are the marketing manager for a division of Intel. According to our textbook, you would be considered a ________ manager at Intel. A. generalB. staffC. trackD. cross-sectionalE. functional


45. The manufacturing manager, the marketing manager, the personal manager, and the sales manager for Weyerhaeuser Corporation all are responsible for managing a work unit that is grouped based on the function served. These managers are referred to as __________ managers. A. cross-sectionalB. trackC. generalD. staffE. functional


46. A small manufacturing company in the Midwest is organized into accounting, marketing, and production departments. According to the textbook, the managers of each of these departments is referred to as a A. general manager.B. divisional manager.C. bureaucratic manager.D. functional manager.E. administrative manager.

recallAnswer: B

47. Which of the following is not a characteristic of a functional manager? A. having training similar to the people that they manage B. managing people who perform highly diverse tasksC. having technical skills that are strongD. typically being promoted from within the ranks of the work groupE. having backgrounds similar to the people that they manage

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recallAnswer: E

48. According to the textbook, __________ managers are responsible for a work group that is segmented according to function, while __________ managers oversee several different departments that are responsible for different tasks. A. task–generalB. departmental–divisionalC. functional–departmentalD. general–taskE. functional–general


49. According to the information provided in our textbook, a grocery store manager who is responsible for a produce department, a meat department, a bakery, and a deli would be considered to be a __________manager. A. general B. divisionalC. bureaucraticD. functional E. administrative

criticalAnswer: A

50. Which of the following is not a characteristic of a general manager? A. having backgrounds similar to the people that they manageB. managing several different departmentsC. having technical skills that may not be as strong as the skills of their

employeesD. coordinating and integrating the work of diverse groups of peopleE. being responsible for ensuring that many parts of a firm function

together effectivelyrecallAnswer: B

51. According to our textbook, a manager who is responsible for several different work groups segmented by task is referred to as a A. divisional manager.B. general manager.C. bureaucratic manager.D. functional manager.E. administrative manager.

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criticalAnswer: D

52. Suppose you are opening a sporting goods store and will initially have a hunting department, a fishing department, a team sports department, and an individual sports department. It you supervised all the different departments in your store, you would be considered a __________ manager. A. administrativeB. functionalC. bureaucraticD. generalE. divisional

ApplicationAnswer: A

53. Mike Rood had a history of managing an accounting division in his previous job, but when he moved into his current job, he was responsible for managing the marketing, finance, production, and accounting divisions. This change in job responsibilities reflected a change from ______ management to ______ management. A. functional–generalB. divisional–administrativeC. functional–bureaucraticD. general–functionalE. administrative–divisional

LEVELS OF MANAGEMENT recallAnswer: B

54. In general, relatively large organizations have three distinct levels of managers. These are A. junior, middle, and top.B. first-line, middle, and top.C. first-line, middle, and horizontal.D. low, middle, and high.E. first-line, intermediate, and high.

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recallAnswer: D

55. Which of the following shapes would best reflect the number of managers at each level in most organizations? A. circleB. squareC. rectangleD. pyramid/triangleE. oval

criticalAnswer: A

56. Many management textbooks depict the levels of management in an organization as a pyramid, with top managers at the top, middle managers in the middle, and first-line managers at the bottom. What is the pyramid shape of the levels of management meant to convey? A. the number of managers at each levelB. the pay scale for managers at each levelC. the experience level of managers at each levelD. the scope of responsibility of managers at each levelE. the organizational tenure of managers at each level


57. For many business organizations, a trend in the 1990s was to reduce the number of employees in an effort to achieve efficiency. The net effect of such downsizing has been a significant reduction in the number of __________ within many corporate structures. A. technical managersB. first-line managersC. top managersD. middle managersE. operational managers

recallAnswer: B

58. Which skill type is the most important for first-line managers? A. humanB. technicalC. conceptualD. developmentalE. mechanical

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59. If you were studying the Black & Decker Corporation and wanted to talk to a group of managers who have strong technical skills, these managers would most likely be ___________ managers. A. topB. middleC. first-lineD. developmentalE. cross-functional

recallAnswer: B

60. Individuals in firms who carry titles such as production supervisor, line manager, section chief, or account manager are __________ managers. A. topB. first-lineC. cross-functionalD. divisionalE. middle

criticalAnswer: E

61. Randy Chambers just graduated from Boston College with strong skills in computer programming. Randy is considering a management position at Bell South. Because Randy has excellent technical skills, he will probably start out at Bell South as a __________ manager. A. cross-functionalB. top C. middleD. divisionalE. first-line

recallAnswer: A

62. The primary objective of __________ managers is to ensure that the products or services of their organizations are delivered to the customer on a day-to-day basis. A. first-lineB. centralC. topD. middleE. divisional

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recallAnswer: A

63. Which skill type is the most important for middle managers? A. humanB. technicalC. conceptualD. developmentalE. administrative

recallAnswer: D

64. Individuals in firms who carry titles such as department head, product manager, or marketing manager are __________ managers. A. first-lineB. topC. cross-functionalD. middleE. divisional


65. If you were studying Phillips Petroleum and wanted to talk to a group of managers who have strong human skills, these managers would most likely be ___________ in the company. A. middle managersB. cross-functionalC. first-line managersD. developmental managersE. top managers

criticalAnswer: C

66. In his job, Paul Ashland spends a considerable amount of time planning and allocating resources, coordinating interdependent groups, and managing group performance. Based on this description, we can conclude that Paul is most likely a __________ manager in his organization. A. first-lineB. departmentalC. middleD. cross-functionalE. top

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criticalAnswer: A

67. Pat Nolan is a middle manager at AT&T. Which type of skill is likely to be most important for Pat in her role as a middle manager? A. humanB. mechanicalC. developmentalD. conceptualE. technical

criticalAnswer: C

68. _______ managers are most involved in three basic activities—planning and allocating resources, coordinating interdependent groups, and managing group performance. A. First-lineB. Top-levelC. MiddleD. Cross-functionalE. Divisional

recallAnswer: C

69. Which skill type is the most important for top managers? A. humanB. developmentalC. conceptualD. technicalE. mechanical

criticalAnswer: D

70. At Pitney Bowes, a very important managerial function is monitoring the business environment. Which level of management in a business organization is typically the most heavily involved in this activity? A. administrativeB. technicalC. middleD. top-levelE. first-line

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criticalAnswer: E

71. Research indicates that ______ managers are the most heavily involved in monitoring the business environment. A. middle B. cross-functionalC. first-lineD. divisionalE. top-level

recallAnswer: C

72. __________ skills enable managers to process a tremendous amount of information about both the internal and the external environment of the organization and to determine the implications of that information. A. HumanB. TechnicalC. ConceptualD. Theoretical E. Rational


73. In his role as CEO, Bill Gates possesses the ______ that enable him to look at Microsoft as a whole and understand how separate work groups and departments relate to and affect one another. A. cognitive skillsB. technical skillsC. human skillsD. conceptual skillsE. intuitive skills

criticalAnswer: D

74. Top managers must have the ability to look at the organization as a whole and understand how separate work groups and departments relate to and affect each other. This ability requires strength in the area of A. technical skills.B. human skills.C. motor skills.D. conceptual skills.E. functional skills.

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recall Answer: E

75. Which of the following represents an optimal match between level of management and managerial skill level? A. top management—human skillsB. first- line management—conceptual skillsC. middle management—conceptual skillsD. first-line management—human skillsE. middle management—human skills

recallAnswer: A

76. Which managerial activity is considered equally important by all three levels of managers? A. representing staffB. monitoringC. leadershipD. disturbance handlerE. visionary

criticalAnswer: E

77. As an individual moves up in an organization, the importance of ________ skills typically decrease and the importance of ________ skills increase. A. administrative–humanB. economic–administrativeC. conceptual–technicalD. human–technicalE. technical–conceptual

recallAnswer: A

78. Which managerial activity is equally important to all levels of management? A. representing staffB. coordinating interdependent groupsC. managing individual performanceD. monitoring the business environmentE. managing group performance

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MANAGING IN THE 21st CENTURY recallAnswer: B

79. A condition of rapid, dramatic, complex, and unpredictable change that has a significant effect on the ways in which organizations are managed is called A. turbulence-based change.B. hyperchange.C. sociocultural change.D. competitive disequalibrium.E. environmental munificence.

criticalAnswer: B

80. Which of the following is not characteristic of a hyperchange environment? A. rapid changeB. predictable changeC. complex changeD. the success of an organization based on its ability to respond E. the success of an individual based on his or her ability to respond


81. Software firms such as Microsoft and Intuit operate in environments that can be characterized as dramatic, complex, and unpredictable. The authors of our textbook use the term __________ to describe these types of environments. A. ultra changeB. munificenceC. hyperchange D. global changeE. volatility

ENVIRONMENTAL TRENDS AND ORGANIZATIONAL CHANGES criticalAnswer: D

82. Which of the environmental trends was not mentioned in your text as having an effect on the modern business climate? A. mobile computingB. electronic commerceC. increasing predominance of entrepreneurial firmsD. domestication of the marketplaceE. growing importance of intellectual capital

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criticalAnswer: E

83. Which one of the following characteristics does not pertain to the global business environment? A. It requires unique managerial challenges.B. It is more complex than the domestic environment.C. It introduces a much broader set of environmental forces.D. Its partnerships require very special international management skills.E. It has less impact on today’s domestic market than 25 years ago.

criticalAnswer: C

84. Which one of the following characteristics does not pertain to entrepreneurial firms? A. They are responsible for the creation of 40–80 percent of all new jobs

in the United States.B. They are responsible for a disproportionate number of new products/

services.C. They are slow to respond to changing customer needs.D. They place pressure on large, bureaucratic firms.E. They provide opportunities for minorities.

criticalAnswer: D

85. Which of the following is not true regarding entrepreneuriship? A. Entreprenuership provides opportunities for minorities and others who

may face barriers in traditional corporate America. B. Entrepreneurial firms are responsible for a disproportionate number of

new products, services, and processes. C. Entrepreneurial activities place pressure on large, bureaucratic firms to

be more innovate and proactive. D. Despite its potential benefits, entrepreneurship is responsible for the

creation of less than 20 percent of all new jobs in the United States. E. There is a worldwide recognition of the power of entreprenuership to

stimulate and strengthen economies. recallAnswer: A

86. ________ encompasses the sum and synergy of a company’s knowledge, experience, relationships, processes, discoveries, innovations, market presence, and community influence. A. Intellectual capitalB. Structural capitalC. Customer capitalD. Human capitalE. Organizational capital

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recallAnswer: B

87. Which of the following terms refers to the accumulated knowledge and know-how of the company represented by the company’s patents, trademarks, and copyrights, proprietary databases, and systems? A. knowledge capitalB. structural capitalC. customer capitalD. human capitalE. organizational capital


88. As the owner of a family business that has lasted three generations, Dean Leone realizes that strong relationships with both the patrons and suppliers of his restaurant are important to its survival and success. These relationships are known as A. knowledge capital.B. structural capital.C. customer capital.D. human capital.E. organizational capital.

recallAnswer: C

89. ______ are groups of employees who work together toward the development of strategy for their work unit and the achievement of established goals and objectives. A. Quality circlesB. Focus groups C. Self-managed teamsD. Boards of directorsE. Virtual work groups

recallAnswer: D

90. Groups of employees who work together toward the development of strategy for their work unit and the achievement of established goals and objectives are called A. inside-outside teams.B. new management teams.C. hyperchange teams.D. self-managed teams.E. self-policing teams.

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recallAnswer: A

91. The heterogeneity of the workforce in terms of gender, race, nationality, and ethnicity is called workplace A. diversity.B. divergence.C. concentration.D. variance.E. convergence.

criticalAnswer: D

92. Which of the following is not true regarding diversity? A. Diversity refers to the heterogeneity of the population and workforce. B. There is increased diversity of the population base of the United States

as well as other countries, and this has led to increased diversity in the workplace.

C. Many organizations are implementing aggressive diversity training programs because they believe that a diverse workforce provides a significant competitive advantage.

D. One outcome of the heightened awareness of diversity is “reverse discrimination” involving women and minorities.

E. Many diversity training programs focus on valuing, and perhaps even celebrating diversity and the breadth of thought and experience that results from diverse workgroups.

criticalAnswer: D

93. Which of the following is not emphasized by the “new organizational model”? A. being lean and flexibleB. focusing on core business activitiesC. outsourcing “non-core” business functions to organizations that can perform those functions more effectively and efficientlyD. partnering with other firms only as a “last resort”E. streamlining the organizational model

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criticalAnswer: C

94. Which of the following statements is incorrect in regard to the new organizational model presented in your text? A. Being lean and flexible has become preferable to being big for many

organizations. B. The new organizational model is also known as the modular

corporation. C. Culturally diverse work groups have become the exception rather than the normD. Large complex corporate structures of the past are being replaced by streamlined, flexible structures that depend on outsourcing to achieve efficiencyE. The new organizational model is also known as the virtual or network

corporation. THE CONTEMPORARY MANAGER recallAnswer: D

95. Successful managers of the future will have all of the following characteristics except one. This one characteristic is A. thinking of oneself as a sponsor, team leader, or internal consultant.B. dealing with any responsible party necessary to get the job done.C. inviting others to join in decision making.D. trying to master one major discipline, such as marketing or

accounting.E. demanding results.

recall Answer: E

96. Which of the following characteristics will typify successful managers in the future? A. thinking of oneself as a manager or boss B. following the chain of commandC. working within a set organizational structureD. making most decisions aloneE. sharing information

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criticalAnswer: B

97. Robert Darnall, the CEO of Inland Steel, is considering the types of characteristics he will be looking for in the managers he hires to help take Inland into the new century. Of the following lists of managerial characteristics, which one would you recommend Mr. Darnall use in selecting managers for his company? A. hoards information; thinks of self as a manager or boss; makes most

decisions himself or herself B. invites others to join in decision-making; tries to master a broad array

of managerial disciplines; demands resultsC. follows the chain of command; works with a set organizational structure; demands long hoursD. demands long hours; tries to master one major discipline such as marketing or finance; follows the chain of commandE. thinks of self as a manager or boss; follows the chain or command; makes most decisions alone

recallAnswer: C

98. It is suggested that one role of “tomorrow’s managers” is not to confuse opinions with arguments or associations with causality. That he or she can evaluate arguments and construct them as well as follow lines of reasoning to the sometimes tortuous end. This is advocated by which of the following roles? A. foreign ambassadorB. technology masterC. problem solverD. change makerE. 21st-century leader


99. Which of the following is not a desirable attribute of tomorrow's managers? A. technology masterB. 21st-century leaderC. problem solverD. isolationist E. foreign ambassador

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recallAnswer: B

100. According to the “new manager profile” effective managers of the future will no longer think of themselves as __________, but as sponsors, team leaders, or internal consultants. A. coachesB. bossesC. enablersD. trainersE. facilitators

TRUE-FALSE QUESTIONS

MANAGEMENT DEFINED Answer: F 101. Organizing is the process of administering and coordinating resources

effectively and efficiently in an effort to achieve the goals of the organization.

Answer: F

102. Using the fewest inputs to generate a given output is called effectiveness.

Answer: T

103. Effectiveness is achieved when the organization pursues appropriate goals.

Answer: T 104. An organization is a group of individuals who work together toward common goals.

Answer: F 105. Efficiency is pursuing the appropriate goals or doing the right things. THE PROCESS OF MANAGEMENT Answer: T

106. The four major functions of management are planning, leading, organizing, and controlling.

Answer: T

107. Managers at all levels of the organizational hierarchy must engage in planning.

Answer: F

108. Planning involves monitoring the performance of the organization, identifying deviations between planned and actual results, and taking corrective action when necessary.

Answer: T

109. Planning involves setting goals and defining the actions necessary to achieve those goals

Answer: T 110. According to your text, only through effective leadership can the goals of an organization be achieved.

Answer: F

111. Organizing involves setting goals and defining the actions necessary to achieve those goals.

Answer: T

112. Issues of organizational culture and human resource management are key features to the management function of organizing.

Answer: F 113. Organizing involves motivating and directing the members of an organization so that they contribute to the achievement of the organization’s goals.

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Answer: F

114. Controlling is the process of administering and coordinating resources effectively and efficiently in an effort to achieve the organization’s goals.

Answer: T

115. Control is an important function in the managerial process because it provides a method for ensuring that the organization is moving toward the achievement of its goals.

MANAGERIAL ROLES Answer: F

116. The interpersonal roles assumed by managers are figurehead, leader, and monitor.

Answer: T 117. When Joseph Gorman, the CEO of TRW, acts as a liaison between his company and an outside constituent, he is fulfilling one of his interpersonal roles as a manager.

Answer: F 118. When Harvey Golub, the CEO of American Express, makes a speech on behalf of his company, he is fulfilling one of his interpersonal roles as a manager.

Answer: F

119. The informational roles assumed by managers are monitor, disseminator, and negotiator.

Answer: T

120. Depending on the nature of the information, disseminators may also withhold information from workgroup members.

Answer: F 121. The roles of disseminators and spokespersons are synonymous. Answer: T 122. When Albert Zimmerman, the CEO of Allstar Appliances, performs

duties on behalf of his firm that are primarily ceremonial in nature, he is performing an interpersonal role as a manager.

SCOPE AND LEVELS OF MANAGERS Answer: T

123. Functional managers are responsible for workgroups that are segmented according to function.

Answer: T 124. Managers often differ with regard to both the scope of their responsibilities and their level within the vertical structure of the organization.

Answer: T

125. General managers are responsible for managing several different departments responsible for different tasks.

Answer: F 126. General managers often have backgrounds similar to the people they manage.

Answer: F 127. A department store manager, who is responsible for a clothing department, an automotive department, and a sporting goods department is called a functional manager.

Answer: F 128. A grocery store manager, who is responsible for a produce department, a meat department, and a bakery is referred to as a functional manager.

LEVELS OF MANAGEMENT Answer: T

129. First-line managers supervise individuals who are directly responsible for producing the firm’s products.

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Answer: F 130. Technical skills are the most important for top managers.Answer: T 131. Technical skills are the most important for first-line managers.Answer: F 132. Human skills are the most important for top-level managers.Answer: F 133. Consistent with their linking function, top-level managers are most

involved in three basic activities: planing and allocating resources, coordinating interdependent groups, and managing group performance.

Answer: F 134. Conceptual skills involve the ability to work effectively with members of one's own workgroup as well as other workgroups within the organization.

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Answer: T

135. All managers must have technical, human, and conceptual skills if they wish to be successful.

Answer: F

136. Louis Gerstner is the CEO of IBM. For Mr. Gerstner, technical skills are the most important.

Answer: F 137. As an individual moves up in an organization, the importance of conceptual skills typically decreases, while the importance of technical skills increases.

MANAGING IN THE 21st CENTURY Answer: T 138. A hyperchange environment includes changes that come quickly and

have a significant impact on the way organizations are managed.Answer: T 139. In the future, the success of both the organization and the individual

manager will often be dependent on their ability to respond to hyperchange.

Answer: T

140. The global business environment is more complex than the domestic business environment.

Answer: F

141. One of the most overrated trends affecting organizations today is the increasing availability of sophisticated information technology.

Answer: F

142. Electronic commerce refers to the ability of individuals to have access to information technology irrespective of their physical location.

Answer: T 143. Entrepreneurship is believed to be responsible for the creation of more than 50 percent of all new jobs in the United States.

Answer: F 144. Entrepreneuership, despite its many favorable outcomes (such as innovation and new job creation), provides few opportunities for minorities and women.

Answer: F

145. Although firms are experiencing many changes, the vertically integrated corporate structures that were predominant in American corporations over the last several decades are largely intact and are likely to remain unchanged.

Answer: T 146. Groups of employees who design their jobs and work responsibilities to achieve the self-determined goals and objectives of the team are called self-managed teams.

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Answer: F 147. Many companies today use self-managed teams to reduce top

management and first-line management costs and to foster teamwork throughout the organization.

Answer: F

148. Structural capital refers to the cumulative skills and knowledge of the organization.

Answer: F

149. Due to its obvious importance to organizations, intellectual capital is readily accounted for in most company’s financial statements.

Answer: T 150. You’ll find fewer middle managers among the organizational hierarchies of today as compared with twenty years ago.

MATCHING QUESTIONS

MANAGEMENT DEFINED 151. A. effectiveness ___ doing things right B. planning ___ identifying deviations between planned and actual results C. efficiency ___ setting goals and defining the actions necessary to

achieve those goals

D. controlling ___ doing the right things E. organizing ___ working with employees to ensure that organizational

goals are met F. leading ___ determining which tasks need to be done, who will do

them and how those tasks will be coordinated

Answers: C, D, B, A, F, E

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MANAGERIAL ROLES

152. A. spokespersons ___ perform certain duties that are primarily ceremonial in

nature B. entrepreneurs ___ work with and through their employees to ensure

organizational goals are met C. figureheads ___ continually scan the internal and external environments

of their organizations for useful information D. resource allocators ___ initiate projects that capitalize on opportunities that have

been identified E. monitors ___ determine which projects will receive organizational

resources F. disturbance

handlers___ cope with conflict and problems

G. leaders ___ communicate information to individuals outside their units and organizations

Answer: C, G, E, B, D, F, A

LEVELS OF MANAGEMENT 153. A. first-line managers ___ provide the strategic direction for the organization B. middle managers ___ supervise the individuals who are directly responsible

for producing the organization's product or delivering its service

C. top managers ___ supervise first-line managers or staff departments

Answers: C, A, B

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SKILLS NEEDED AT DIFFERENT LEVELS OF MANAGEMENT 154. A. technical skills ___ the ability to analyze complex situations and respond

effectively to the challenges faced by the organization B. human skills ___ the ability to utilize tools, techniques, and procedures that

are specific to a particular field C. conceptual skills ___ the ability to work effectively with others

Answers: C, A, B MANAGING IN THE 21ST CENTURY 155. A. hyperchange ___ groups of employees who design their jobs and work

responsibilities to achieve the self-determined goals and objectives of the team

B. quality management

___ the heterogeneity of the work force in terms of gender, race, nationality, and ethnicity

C. self-managed teams

___ a formal approach to management where the overriding priority of the organization is to deliver a quality product or service and to work toward excellence and continuous improvement in all areas of the organization

D. diversity ___ a condition of rapid, dramatic, complex, and unpredictable change that has a significant effect on the ways in which organizations are managed

Answers: C, D, B, A

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ESSAY QUESTIONS

156. Name and discuss the four major functions of management. How do these functions relate to the goals of an organization? The four major functions of management are planning, leading, organizing, and controlling. Planning provides a “roadmap” for an organization to follow by setting goals and defining the actions necessary to achieve those goals. Organizing involves determining the tasks to be done, who will do them, and how those tasks will be managed and coordinated. Leading involves the essential task of motivating and directing the members of the organization towards the achievement of the organization’s goals. Finally, controlling involves the task of monitoring the performance of the organization and taking corrective action when necessary. The four functions of management are intimately linked to the achievement of the goals of the organization. As described above, the planning function sets the goals and defines the actions necessary to achieves those goals. Organizing involves the daily coordination, supervision, and direction that is necessary to carry out the plan and achieve the organization’s goals. Leading involves inspiring the members of the organization toward the attainment of its goals. Finally, controlling involves making sure that the organization is “on track” in regard to the attainment of its goals.

157. According to Henry Mintzberg, what are the three primary roles that managers perform? Provide examples of each of these roles in a modern business organization. According to Mintzberg, managers serve three primary types of roles: interpersonal, informational, and decision making. In their interpersonal roles, managers are responsible for managing relationships with organizational members and other stakeholders. Mintzberg identified three distinct interpersonal roles figurehead, leader, and liaison. As a figurehead, a manager is responsible for attending functions that are primarily ceremonial in nature, like an awards dinner, a luncheon with an important customer, or a social event. As a leader, a manager is responsible for motivating his or her employees and other stakeholders towards the attainment of organizational goals. Finally, as a liaison, a manager is responsible for working with various groups of employees and for acting as a go-between in the relationships between the firm and its outside stakeholders. The second set of managerial roles identified by Mintzberg are informational roles. In informational roles, managers are responsible for ensuring that all organizational stakeholders have sufficient information to perform in an effective manner. The three informational roles are monitor, disseminator, and spokesperson. As a monitor, a manager must keep his or her finger of the pulse on both the internal and external environment of the firm, and remain keenly aware of environmental change. As a disseminator, a manager must share and distribute information to organizational stakeholders. This is a particularly challenging role, because in regard to the dissemination of information, more is not always better. A manager can burden his or her employees by loading them down with too much data and information. Finally, as a

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spokesperson, a manager must be willing to speak on behalf of his or her organization. Managers are often called upon to make new product announcements or publicly respond to a concern of a stakeholder group. The third set of managerial roles identified by Mintzberg are decisional roles. The four decisional roles are: entrepreneur, disturbance handler, resource allocator, and negotiator.As an entrepreneur, a manager must be willing to initiate projects and act as an innovator for his or her organization. As a disturbance handler, a manager is often called upon to settle disputes between employees or to handle a customer complaint. All of us at one time or another have had a problem with a company and have asked to “talk to the manager” in an effort to resolve our dispute. As a resource allocator, a manager has the important role of determining which projects will receive funding. Finally, as a negotiator, a manager must negotiate with employees, suppliers, customers, local governments, special interest groups, and a variety of other stakeholders to make sure that the organization's goals can be met.

158. Discuss the major differences between functional and general managers. What are the different skills sets needed for functional and general managers? Functional managers are responsible for a workgroup that is segmented according to function. For example, the manager of a marketing department is a functional manager.Technical skills are particularly important for functional managers. For instance, the manager of an accounting department should have fairly strong accounting skills himself or herself to properly train, mentor, and supervisor the department’s employees. General managers manage several different departments that are responsible for different tasks. For example, the manager of a department store, who supervises a clothing department, an automotive department, and a sporting goods department is a general manager. Communication skills are particularly important for general managers. General managers must coordinate the work of a diverse group of people and departments.

159. Describe the three levels of managers found in most large organizations. Do the skills required of managers differ at the different levels of the management hierarchy? The three levels of managers found in most large organizations include top management, middle management, and first-line management. While managers at each level must perform the tasks of planning, leading, organizing, and controlling, certain job-specific skills are more important at one level than the other. Technical skills are particularly important for first-line managers. These managers are closest to the product or service that their firm delivers, and are often responsible for production or service delivery. As a result, first-line managers need strong technical skills to train, mentor, supervise, and control activities at the “point of production” or “service delivery.” Middle managers assume a more supervisory role. These managers are usually promoted to the rank of middle manager because they have good administrative skills and can coordinate work groups. Human skills are particularly important at this level. Middle managers must be able to work well with the members of their own department, as well as with other departments. Moreover, middle managers are often involved in team-building, human resource development, resource allocation, and conflict resolution. Each of these

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activities are facilitated by strong human skills. Top managers are heavily involved in planning and goal-setting. These activities require strong conceptual skills. Strong conceptual skills enable managers to process large amount of information and think through various situations simultaneously.

160. Discuss several of the environmental trends that are affecting modern business organizations. Several environmental trends are having a major influence on modern business organizations. The globalization of the marketplace continues at an increasingly rapid pace. This has broadened the number of issues that decision-makers must consider, such as whether to pursue foreign markets and how to deal with foreign competition. As a result, the majority of American managers must “think globally” whether or not their firm is directly involved in foreign sales. The increasing predominance of entrepreneurial firms is also shaping management thought and behavior. Large organizations that are slow to respond to environmental change are losing market share to smaller, more nimble entrepreneurial firms. In addition, the large business sector is increasingly turning to smaller firms as outsource partners to perform some of their routine duties. A focus on quality and cost containment is also affecting modern business organizations. Many firms are facing increasing business competition from home and abroad. As a result, quality and pricing are key competitive issues. This is true in both the manufacturing and service sectors.

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