7-103
Chapter 07 - Management and Leadership
Chapter 07
Management and Leadership Answer Key
True / False Questions
1. The main job of managers today is to watch over people to be sure they do what the manager asks of them.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
2. The best way to get people to do what a manager wants is for the manager to reprimand those who don't do things correctly.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
3. Managers in progressive firms of all kinds tend to be friendly, and treat employees as partners.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
4. Managers must earn the trust of their employees.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
5. Because of their importance and skills, few managers lost their jobs in the recent economic crisis.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
6. A modern manager's main job is to issue orders, then follow up to make sure employees do as they were told.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
7. Managers in progressive organizations tend to emphasize teamwork and cooperation rather than discipline and giving orders.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
8. Despite all of the changes in the business environment, the basic way a manager performs his or her job has remained remarkably constant.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
9. Given the lack of discipline and short attention spans of today's workers, modern managers must watch their workers closely, set strict rules, and vigorously enforce policies.
Feedback: Today's managers emphasize teamwork and cooperation rather than discipline and order giving. Managers now guide, train, support, motivate and coach employees.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 2 Medium
Topic: Definition of Management
10. In most high-tech industries, the best way to respond quickly to rapid technological changes is to keep most authority and responsibility in the hands of a few key managers who provide precise, detailed directions to the workers.
Feedback: Managers of high-tech firms realize that workers often know much more about technology than they do. Thus, most progressive managers emphasize teamwork and cooperation rather than discipline and order giving.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 2 Medium
Topic: Definition of Management
11. Due to the fact that employees today often know much more about technology and the technical aspects of their jobs than their managers do, progressive managers emphasize teamwork and cooperation as a strategy for getting work done.
Feedback: Managers of high-tech firms realize that workers often know much more about technology than they do. Thus, most modern managers emphasize teamwork and cooperation rather than discipline and order giving.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 2 Medium
Topic: Definition of Management
12. John is the general manager of a retail outlet. By emphasizing teamwork and acting in a role of coach rather than boss, John is considered to be a modern manager.
Feedback: Most modern managers tend to be more progressive. They choose to guide and support their employees instead of giving orders.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 3 Hard
Topic: Definition of Management
13. As an office manager, Sylvie consistently tells her employees what to do, watches over their tasks, and reprimands those who don't listen to her orders. Sylvie is a modern manager.
Feedback: Most modern managers tend to be more progressive. They choose to guide and support their employees instead of giving orders.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 3 Hard
Topic: Definition of Management
14. Managers make decisions about how to use organizational resources to accomplish goals.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
15. Financing is one of the four key functions of management.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
16. The four key management functions are planning, organizing, leading, and controlling.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
17. One trend of the leading management function is to empower employees, giving them as much freedom as possible to become self-directed and self-motivated.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
18. Leading is the management function of designing the structure of the organization so that everyone can function together.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
19. As a management function, the main focus of controlling is to keep complete and up-to-date records of the organization's financial transactions for tax and regulatory purposes.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
20. The management function that involves guiding, training, and motivating others to work toward the achievement of an organization's goals is called leading.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
21. In many smaller firms the manager's role is to direct the employees, telling them exactly what to do.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
22. Planning is the function of management that includes anticipating future trends and determining the best strategies and tactics to achieve an organization's goals and objectives.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
23. Planning is a key management function because other management functions depend on having a good plan.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
24. Managers focus on making efficient use of their organization's human resources, but leave decisions about the efficient use of other resources such as buildings, machinery, and supplies to engineers and accountants.
Feedback: Managers must practice the art of getting things done through organizational resources including people, financial resources, information and all types of equipment and assets.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 2 Medium
Topic: Functions of Management
25. Today's progressive organizations are designed around the needs of the customer. The idea is to organize systems to be responsive to customer needs.
Feedback: Organizing includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
26. Beth has spent the last two hours going over some consumer surveys to see how well her company is achieving its goal of improving customer satisfaction. Beth's efforts are an example of the controlling function of management.
Feedback: Controlling is the function concerned with determining whether or not an organization is progressing toward achieving its goals and objectives.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 3 Hard
Topic: The Four Functions of Management
27. Jack, a manager with Tiny Tots Toy Company, has just participated in a meeting that looked at future trends in the toy industry, and identified new challenges and opportunities for Tiny Tots. Jack's participation in this meeting was part of the organizing function of management.
Feedback: Jack's activities are part of the planning function. Planning involves anticipating future trends and identifying business opportunities and challenges.
Answer: False
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
28. Harold is a no-nonsense boss who believes that the best way for an organization to achieve its goals is for workers to follow their boss's orders. Thus, he tells workers exactly what to do and how to do it. Harold's approach is an example of directing.
Feedback: Directing involves telling workers exactly what to do. This approach is still common among managers in small companies, but managers in larger firms tend to rely more on leading rather than directing.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
29. Rita is a manager of a medium-sized service company. She is currently involved in redesigning her department to ensure that employees and other resources can respond more quickly and efficiently to the needs of its customers. Rita's efforts are part of the organizing function of management.
Feedback: Organizing involves designing the structure of the organization so that resources can efficiently achieve the organization's objectives. One of the key objectives today is to find ways to organize businesses so that they please the customer.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
30. Planning involves setting the organizational vision, goals and objectives.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
31. Progressive managers consider planning to be of little importance in today's rapidly changing business environment.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
32. Goals tend to be broad and focus on the long term while objectives tend to be specific and more short term in their focus.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
33. A vision is a detailed set of specific steps that a firm must take to achieve its short-run objectives.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
34. A statement about why an organization exists and what it is trying to achieve is called the organization's directive.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
35. A vision is the overall explanation of why an organization exists and where it is trying to head.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
36. A vision gives the organization a sense of purpose and a set of values that unite employees toward a common destiny.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
37. A mission statement outlines the fundamental purposes of an organization.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
38. Today, a mission statement should also address social responsibility.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
39. Goals are broad, long-term accomplishments an organization wants to achieve.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
40. While goals are measurable, objectives are not.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
41. Goals are developed and agreed to by management so that the workers can follow them.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
42. Objectives should be expressed as broad, general principles rather than as specific short-term results.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
43. Continuous planning is not necessary, because plans that worked well in the past are likely to continue to work well in the future.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
44. Planning is a continuous process.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
45. The SWOT analysis helps firms identify competitive threats and market opportunities.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
46. An analysis of the business environment helps managers identify threats and opportunities that face their firm.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
47. Strategic planning is now much easier than it used to be because managers have access to very reliable computerized forecasting tools.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
48. Tactical planning deals with setting long-range goals, while strategic planning develops the specific strategies needed to achieve the organization's operational goals.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
49. Strategic planning determines the major goals of the organization.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
50. Today's business environment changes so rapidly that strategic planning is becoming more difficult and subject to change.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
51. Managers or teams of managers at the lower levels of an organization normally develop strategic plans, but top managers do most of the tactical planning.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
52. Contingency planning involves developing alternative courses of action to be used if the primary plans do not achieve the desired results.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
53. Operational planning looks at the organization as a whole, while strategic planning focuses on specific departmental actions.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
54. One example of tactical planning is setting annual budgets and deciding on other details and activities necessary to meet the strategic objectives.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
55. Many cities and businesses are now developing contingency plans to respond to potential terrorist attacks.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
56. Instead of creating detailed strategic plans, the leaders of market-based companies (companies that respond quickly to environmental changes) set flexible directions so as to allow for change and seize opportunities when they come.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
57. Decision making occurs in all management functions.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
58. The first step in the rational decision-making model is to identify alternative solutions.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
59. The last step in the rational decision-making model is to determine whether the decision was a good one and follow up.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
60. One step in the rational decision-making model is to develop alternatives.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
61. Brainstorming is coming up with as many solutions as possible in a short period of time with a focus toward not censoring anyone's ideas.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
62. Problem solving is more formal than using the rational decision-making model.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
63. PMI is a problem-solving technique that involves listing pluses, minuses and implications.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: The Importance of Planning
64. A mission statement should provide a detailed explanation of how a company will achieve its objectives.
Feedback: A mission statement is an outline of the organization's fundamental purposes, not a detailed explanation of what is to be done and who is to do it. Figure 7.2 shows an actual mission statement for Starbucks that clearly illustrates this.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: The Importance of Planning
65. The SWOT analysis focuses only on the internal activities of the firm, while a PERT analysis is used to review the external environment in which the firm operates.
Feedback: SWOT stands for strengths, weaknesses, opportunities and threats. While the strengths and weaknesses part of SWOT analysis focuses on internal aspects of the organization, the opportunities and threats part of SWOT looks at the external environment in which the organization operates.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: The Importance of Planning
66. Tactical planning involves making decisions about which customers to serve, what products or services to sell, and the geographic areas in which the firm will compete.
Feedback: The fundamental nature of the topics described in this question would be considered in the strategic planning process.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: The Importance of Planning
67. Contingency planning is most important in markets where conditions are relatively stable and market growth is predictable.
Feedback: Contingency planning is the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives. The need to implement contingency plans is more likely to arise in markets where there is a great deal of rapid change and uncertainty.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: The Importance of Planning
68. The top managers at the Sax Department Store find that their employees do not really share a common sense of purpose or have a common set of values. This suggests that top management has not provided a clear vision for the firm.
Feedback: A vision is a broad statement of why an organization exists and what it seeks to accomplish. It is intended to give the organization a sense of purpose and provide workers with a set of values and a sense of direction.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: The Importance of Planning
69. In order to ensure effective implementation, managers should make only one set of plans and carefully follow them to ensure that the organization's objectives are achieved.
Feedback: Economic and competitive conditions change so rapidly that it is wise to have alternative plans available in the event the primary plan does not achieve its objectives. This is the idea behind contingency planning.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: The Importance of Planning
70. Lucy is part of the top management team at Cloudy Daze Rain Gear, a company that produces umbrellas, raincoats, hats and all-weather shoes. As a member of top management, Lucy is more likely to be involved in strategic planning than in tactical planning.
Feedback: Top management normally carries out strategic planning, while lower-level managers are usually responsible for tactical planning.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: The Importance of Planning
71. Jamika is a manager at a well-known retail store. Each morning she determines the order in which store projects are performed; she sets work schedules for employees and standards that must be met. These activities suggest that Jamika is involved in operational planning.
Feedback: Operational planning is the process of setting work standards and schedules that are necessary to carry out tactical plans.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: The Importance of Planning
72. Sharon needed to solve a problem quickly, so she called together the work team in her department and asked them to list as many possible solutions as they could come up with in a short period of time. During the process she encouraged responses and avoided censoring what her workers said. Sharon is utilizing a problem-solving technique known as brainstorming.
Feedback: Brainstorming is a problem-solving technique that encourages a group of people to come up with as many suggestions for solving the problem as possible in a short period of time, and with no censoring of ideas.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: The Importance of Planning
73. After management has created a plan of action, the focus turns to the controlling function to recheck and often redo the plan.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
74. Organizing involves allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
75. The visual illustration of the relationships among the people within an organization that shows who is accountable for the work and who reports to whom is called a Gantt Chart.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
76. Branch and plant managers and division heads are classified as first-line managers.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
77. A CEO is often the president of the firm and is responsible for developing the strategic plans.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
78. The recent recession eliminated many middle managers giving the remaining managers more employees to supervise.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
79. Supervisory managers are those who directly oversee the activities of workers and evaluate their daily performance.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
80. Middle managers usually are responsible for tactical planning and controlling.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
81. The CIO, COO, and CFO are classified as top management positions.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
82. In this day of rapidly changing technology, technical skills are the most important skills for all levels of management.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
83. Conceptual skills refer to the ability of a manager to perform the tasks associated with a specific discipline or department.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
84. First-line managers typically spend less time on conceptual tasks and more time on technical skills.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
85. Most of a top manager's time is devoted to conceptual and human relations activities.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
86. The ability to plan, coordinate, and delegate are among a manager's most basic technical skills.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
87. A person who is a good first-line manager is automatically likely to be a good middle or top manager.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
88. Human relations skills include those associated with leadership, coaching, morale building and supportiveness.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
89. The question of how to implement change within an organization is the responsibility of the firm's CEO.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
90. Staffing involves recruiting, hiring, motivating, and retaining the best people available for the organization.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
91. Due to the growth of the Internet, recruiting is less important today than in the past.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
92. Staffing is a less important management function today than in the past.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
93. Organizing involves developing a structure or framework that relates all workers, tasks and resources to each other.
Feedback: Operationally, organizing means allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
94. Top management is also known as first-line management because it deals with key managerial decisions on a priority basis.
Feedback: Top management consists of the president and other key company executives. On the other hand, first-line managers are immediately above an organization's workers.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
95. Supervisory managers usually work more with ideas than with people.
Feedback: Supervisory managers are responsible for assigning specific jobs to workers and evaluating their daily performance. Their jobs often bring them into direct contact with the workers they supervise. Figure 7.6 illustrates this by showing that first-line managers rely more on human relations skills than on conceptual skills.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
96. Because of the complex nature of their jobs, top managers spend most of their time developing and using technical skills.
Feedback: Top managers spend most of their time on tasks requiring conceptual and human relations skills.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
97. The experience gained by first-line managers as they perform their jobs enables them to acquire all the skills they will need when promoted to higher levels of management.
Feedback: Different skill sets are needed at different levels of management. First-line managers tend to use technical skills extensively, but spend much less time using conceptual skills. On the other hand top managers use very few technical skills, but often perform tasks requiring exceptional conceptual skills. Thus, the skills learned by a first-line manager may not be very useful at higher levels of management.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
98. According to the Reaching Across Our Borders box, business leaders must strive to thoroughly understand a nation’s culture and respect its strengths and challenges in order to be successful in the global market.
Feedback: Business leaders need to study countries and the impact they have on business functions. It’s critical they also thouroughly understand a nation’s culture and respect its strengths and challenges.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
99. Mark is a manager for Cable Connection. He spends most of his time scheduling the specific service calls that each employee performs during the day, verifying job completion, and evaluating employee performance on each call. These responsibilities suggest that Mark is a middle manager.
Feedback: First-line managers typically carry out the tasks that Mark is performing. Middle managers generally are more involved in tactical planning and controlling.
Answer: False
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
100. Chris was recently promoted to a position as a first-line manager. At this level of management, he will use human relations and conceptual skills as well as technical skills.
Feedback: Though they rely on technical skills more than managers at other levels, first-line managers must also use human and conceptual skills to a certain degree. In fact, as Figure 7.6 shows, all three levels of management, to varying degrees, must use all three types of skills.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
101. Liz is a first-line manager at her company, which is very traditional in its approach to management. In her position, Liz probably spends a lot of time giving employees detailed and specific instructions.
Feedback: First-line managers are directly responsible for supervising workers and evaluating their performance.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
102. Fatma wants to become a manager. However, she is shy and avoids conversation with strangers. She is very comfortable with computers and information technology and has great technical skills in these areas. Fatma's personal traits make her a good candidate for a top management position.
Feedback: Top managers typically use few technical skills. Instead, almost all of their time is devoted to human relations and conceptual tasks.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
103. Staffing is less important at Sony, IBM and other high-tech firms because these firms sell technology.
Feedback: At most high-tech companies, like IBM and Sony, the primary capital equipment is brainpower, so staffing is essential to obtain the best people available to accomplish these companies' objectives.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
104. People who are good leaders also are almost always good managers.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
105. Leadership is the management function of checking to determine whether or not an organization is progressing toward its objectives, and taking corrective action if it is not.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
106. One difference between managers and leaders is that managers strive to achieve stability while leaders embrace change.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
107. Management carries out of the vision created by leadership.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
108. Effective leadership includes the ability both to welcome change and to promote ethical behavior.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
109. Good leaders motivate workers and create the environment for workers to motivate themselves.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
110. Managers must lead by doing, not just by saying.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
111. A leader's most important job may be to transform the way the company does business so that it's more effective and efficient.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
112. Researchers have determined that all effective leaders have similar traits.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
113. There is no single leadership style that works best in all situations.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
114. Research has shown that the democratic style of leadership is the most effective style of leadership.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
115. Research on leadership supports the idea that the best leadership style depends on several factors, including the people being led and the situation.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
116. The autocratic style of leadership can be very effective in emergency situations.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
117. The traits used by autocratic leaders include warmth, friendliness, and understanding.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
118. The traits that characterize participative leaders include flexibility, good listening skills, and empathy.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
119. Autocratic leadership is most effective with workers who like to work independently and make their own decisions.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
120. Research has shown that employee participation in decision making improves job satisfaction.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
121. Free-rein leaders tend to carefully monitor their subordinates to make sure they are doing the job in the correct way.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
122. Managers are most effective when they consistently use the same leadership style with every employee assigned to their work group.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
123. In traditional organizations, directing includes both giving assignments to workers and providing feedback on their performance.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
124. Empowerment means that more authority and responsibility is given to top management.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
125. Enabling is the term used to describe the process by which employees recognize and respect the authority of managers to issue orders.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
126. Knowledge management involves finding the right information, keeping the information accessible, and making the information known to everyone in the firm.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
127. The focus of knowledge management is to make sure top managers have all of the information they need to run the company.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
128. The first step to developing a knowledge management system is to develop the technology to keep information secure.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
129. The amount of data gathered has grown so much that the term big data is used to describe the vast amount of information available.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
130. A comparison of leadership and management suggests that leadership is about creating a vision, while management is about carrying out that vision.
Feedback: Leadership is creating a vision, while management is the carrying out of the leadership's vision.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
131. The Adapting to Change box showed us that what people think of a company is influenced by their responses on social media.
Feedback: Mary Barra of GM made a commitment to search for complaints, respond quickly, and solve problems customers were posting on Twitter and Facebook. If GM didn't respond to their customer base, their image could be tarnished.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
132. Heather has a strong desire to maintain and preserve order and stability. She is very good at developing tactical plans to achieve her company's goals and objectives. These characteristics suggest that Heather has characteristics of an exceptional leader.
Feedback: One of the characteristics of leaders is that, rather than striving for order and stability, they create and embrace change. The fact that Heather strives to produce order and stability suggests she might be a good manager, and her planning skills reinforce this conclusion. However, not all good managers make good leaders.
Answer: False
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
133. Brett heads a department in a major manufacturing corporation. He strives to maintain a free-rein approach to leadership in most situations. Recently, Brett's company lost a major contract that it needs to continue the current level of operation. The company needs to take quick action to adjust, including slashing expenses. Under these conditions, Brett should maintain his free-rein style of leadership.
Feedback: No single leadership style is always effective. The best style will depend on the people being led, the organization, and the situation. Good managers often vary their leadership styles as conditions change. In crisis situations, the autocratic approach is sometimes more effective than a free-rein approach.
Answer: False
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
134. Lamont is quick and decisive. He makes most decisions by himself, issues orders, and expects his subordinates to follow them without question. Lamont's behavior is an example of the free-rein style of leadership.
Feedback: A free-rein manager is one who gives his or her subordinates a substantial amount of freedom. Lamont's approach, with its emphasis on issuing orders without consultation, is more consistent with the autocratic style of leadership.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
135. A recent customer survey has convinced top managers at Akwip Corporation that their firm is doing a poor job of responding quickly to the needs of customers. The managers are very concerned about this problem. Empowerment might be an approach that would help Akwip improve its responsiveness.
Feedback: Empowerment means giving employees the authority and responsibility to respond quickly to consumer requests.
Answer: True
AACSB: Knowledge Application
Bloom’s: Analyze
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
136. Juanita is a project manager for a group of experienced and creative programmers at Idle Time Gaming, a publisher of popular computer games. Since the programmers are bright, creative, and highly motivated, Juanita brainstorms basic ideas with her group, then allows the programmers a great deal of freedom to do what it takes to reach the agreed-upon objectives. Juanita is using a free-rein leadership style.
Feedback: A free-rein leader gives subordinates a great deal of freedom to do whatever it takes to accomplish the organization's objectives.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
137. Bryce has worked for Carolina Hotel for 10 years. Greg is a new employee at the hotel. Rachel, who oversees both of these employees, may find that she should use a different leadership style with Greg than with Bryce.
Feedback: An effective manager may use different leadership styles for different people or situations. A new worker may require more direction, while a more experienced employee may be more responsive to empowerment and a free-rein style of leadership. More experienced workers may respond better to a more democratic style.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
138. Joseph, a department chair at a major university, always gives department faculty members a chance to express their opinions and encourages them to participate in decision making. Employees who work with Joseph are likely to have a high level of job satisfaction.
Feedback: Joseph is using the democratic leadership style. Research has found that this style usually increases the job satisfaction of employees.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
139. Zoe is a middle manager at Watta-Deihl Incorporated. The company's top management has just announced that they are going to initiate a policy of empowerment. In order for this policy to succeed, Zoe and other managers will need to adopt a more autocratic style of leadership.
Feedback: Empowerment means giving employees more authority and responsibility to make their own decisions. Autocratic leadership, which relies on issuing orders and expecting people to follow them, is not consistent with empowerment. Managers in firms where empowerment is practiced typically give fewer detailed instructions and spend more time coaching, assisting and counseling workers.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
140. The steps of the controlling function include assigning tasks and establishing procedures to accomplish organizational goals.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
141. Controlling provides managers and workers with feedback that helps them adjust to deviations from plans.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
142. If managers do a good job planning and organizing, there shouldn't be a need for them to be involved with controlling.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
143. Two of the key components of the control process are setting clear performance standards and communicating results and deviations to the employees involved.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
144. The first step in the controlling process is to monitor and record the actual results.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
145. Without clear standards, the control process is impossible to implement.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
146. In the control process, performance standards should be stated in general terms in order to give management as much flexibility as possible.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
147. In order to be effective, performance standards must be specific, attainable, and measurable.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
148. Accounting and finance are important for control systems because they provide the numbers management needs to evaluate progress.
Answer: True
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
149. External customers are those individuals or units that receive services from other units within the same organization.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
150. A customer-oriented firm should focus exclusively on satisfying its internal customers.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
151. When all is said and done, financial standards such as profit and return on investment are the only relevant measures of how well a firm is meeting its goals.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
152. When setting standards used in controlling, it is better to simply state general goals such as "better quality" or "higher levels of consumer satisfaction" than it is to spend a lot of time and effort developing more specific standards.
Feedback: If standards are stated in very general terms, it becomes difficult to determine whether the goals are being met. General and vague goals do not clearly identify what the firm is trying to achieve.
Answer: False
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
153. Chase is a manager for World Graphic Design, Inc., a firm that designs and manufactures greeting cards, invitations, announcements, and other event material. Chase spends a lot of time trying to find the right people for various positions at his company. These efforts are part of the controlling function of management.
Feedback: Controlling is concerned with checking to see whether the organization is meeting its goals by setting standards, measuring actual performance, comparing actual results with the desired standards, providing feedback, and taking corrective action if necessary. Staffing, which is the process of finding the right people for various positions within an organization, is part of the organizing function of management.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
154. Rebecca is concerned about the number of customers complaining about the poor service provided by the department she manages for a hardware store. She is convinced that her employees can provide better service and cut complaints significantly. Rebecca has set a goal for her department to reduce customer complaints by 15% within six months. This goal is an example of the type of performance standard needed for effective controlling.
Feedback: An effective standard for the controlling process should be specific, attainable, and measurable. It is also important to establish a time period for the achievement of the goal. Assuming that she is correct about the ability to reduce complaints significantly, Rebecca's standard satisfies these criteria.
Answer: True
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
155. Pro Fit, Inc., a maker of men's sportswear, has just reported a record profit. This proves that the firm is successfully achieving its goals.
Feedback: Although measures of financial success (such as profit) are very important indicators of business performance, they are not the only measures. The purpose of a firm today is to satisfy a broad group of stakeholders, including employees, customers, and the people living in the local communities where the business has operations. The success of the firm at satisfying the diverse interests of these groups cannot be measured by focusing on financial criteria alone.
Answer: False
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
Multiple Choice Questions
156. Management is more progressive today. There is more emphasis on:
A. individual work that can be successfully measured.
B. working in teams.
C. striving to eliminate the control function of management.
D. placing greater reliance on the government for financing.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
157. One of the challenges facing today's managers is to:
A. deal with a workforce that is less educated and less self-directed than in the past.
B. find ways to encourage conformity instead of diversity.
C. work with a more educated workforce.
D. cope with the sudden and unexpected slowdown in the pace of innovation and change.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
158. Today's progressive managers:
A. prefer to use the autocratic style of leadership.
B. emphasize teamwork and cooperation rather than discipline and order giving.
C. face fewer challenges and problems than managers in the past.
D. can rely on a much higher level of worker loyalty to the organization than in the past.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 1 Easy
Topic: Definition of Management
159. The revolution in management that is currently under way suggests that the most effective managers of the future will:
A. be very strict in their treatment of workers.
B. emphasize individual initiative rather than teamwork.
C. specialize in performing one of the four management functions.
D. emphasize teamwork.
Feedback: Management is experiencing a revolution. The manager of the future will likely be working in teams and assuming completely new roles in the firm.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 2 Medium
Topic: Definition of Management
160. How are managers today different from managers in the past?
A. Managers today are more likely to reprimand workers.
B. Managers in the past would use praise and gentle suggestions.
C. Managers in the past were less loyal to their employer.
D. Managers today emphasize teamwork.
Feedback: Employees today are more educated and demand more self-direction. As a result, today's managers are educated to guide, train, support, motivate, and coach employees rather than to tell them what to do. These managers are likely to emphasize teamwork and communication rather than discipline and order giving.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 2 Medium
Topic: Definition of Management
161. Which of the following statements has resulted in changes in the role of management?
A. Most workers today show little initiative or creativity, so managers must spend more time directing their efforts.
B. The marketplace is becoming global, which increases both competition and opportunities for cooperation and integration.
C. Firms are recognizing that their workforces are too diverse, so managers must find ways to reduce diversity without violating federal laws against discrimination.
D. The desire to encourage teamwork has resulted in larger, more cumbersome organizations with too many workers.
Feedback: The marketplace is now global, and the advent of the Internet means that competition from global competitors is only a mouse click away.
Answer: B
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-01 Describe the changes occurring today in the management function
Level of Difficulty: 3 Hard
Topic: Definition of Management
162. __________ is the art of utilizing organizational resources to accomplish goals at work.
A. Socialization
B. Justification
C. Preparation
D. Management
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Definition of Management
One of the four primary functions of management is:
A. controlling.
B. marketing.
C. financing.
D. designing.
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
164. The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as:
A. directing.
B. leadership.
C. planning.
D. forecasting.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
165. When managers work on creating conditions and systems to ensure that everything and everyone works together to achieve the organization's goals, they are involved in the __________ function of management.
A. controlling
B. leading
C. planning
D. organizing
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
166. __________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not.
A. Organizing
B. Controlling
C. Leading
D. Officiating
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
167. ___________ is the management function that involves setting goals, strategies, and tactics for achieving the organization's goals and objectives.
A. Forecasting
B. Planning
C. Conceptualizing
D. Controlling
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
168. ___________ is the management function of creating a vision for the organization and guiding, training, coaching, and motivating employees to help achieve the goals and objectives of the organization.
A. Organizing
B. Controlling
C. Leading
D. Officiating
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
169. Which of the following goals best describes today's view of the organizing function? Organizing today focuses on:
A. achieving unified opinions from a diversified workforce.
B. designing the organization around the customer.
C. simplifying the process of measuring outcomes related to performance standards.
D. developing the most efficient strategic plans for the firm.
Feedback: Today's organizations are being designed to focus on customer needs. Managers want to organize the firm so that everybody in the organization is working to please the customer, while keeping in mind that the firm must be profitable.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
170. When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in:
A. controlling.
B. planning.
C. directing.
D. accounting.
Feedback: Controlling is the management function that involves checking to see whether or not an organization is progressing toward its goals and objectives, and taking corrective action if it is not.
Answer: A
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
171. When managers identify a market trend that suggests a new opportunity and then devise a strategy to go after this new opportunity, they are involved in the function of:
A. controlling.
B. planning.
C. leading.
D. organizing.
Feedback: Planning is the management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
172. Which of the following activities would be a part of the leading function of management?
A. Devising a new strategic plan to enter a new foreign market currently dominated by a competing firm
B. Recruiting qualified workers to join the organization and assigning them to their proper position
C. Examining a financial report to see whether the firm's profits are improving and taking corrective action if they are not
D. Training and coaching workers to help them understand their job and perform it effectively
Feedback: Leading involves creating a vision for an organization and guiding, training, coaching and motivating workers so that they can work effectively within the organization.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
173. Which of the following activities is part of the planning function of management?
A. Assigning a particular worker to do a specific task
B. Looking at market forecasts to identify future business opportunities and challenges
C. Praising a sales representative who has far exceeded her monthly sales objectives
D. Conducting a job interview with a potential new employee
Feedback: Planning involves anticipating trends, identifying opportunities and challenges, and devising strategies and tactics that will help the firm achieve its goals and objectives.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
174. Which of the following activities is part of the organizing function of management?
A. Going over a spreadsheet to analyze some financial data
B. Teaching a new employee how to use a piece of office equipment
C. Giving front-line workers additional resources needed to provide faster and better service to customers
D. Developing a broad general strategy to help the organization meet its long-term growth objectives
Feedback: Organizing includes creating the conditions and systems in which everyone and everything works together to achieve an organization's objectives. Many of today's organizations attempt to organize in ways that enable them to please their customers at a profit.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
175. As a manager, two of Sylvia's strengths are her ability to communicate goals clearly, and her ability to guide, coach, and motivate workers. Based on these strengths, __________ is a management function that Sylvia is likely to be good at performing.
A. controlling
B. planning
C. leading
D. organizing
Feedback: Leading involves communicating, guiding, training, coaching, and motivating others to work effectively toward achieving an organization's goals.
Answer: C
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
176. Amanda, a regional manager for Flairol Cosmetics, has just seen a report showing that sales in her region are trending lower than anticipated for the third quarter. Her next task is to determine the reason for the disappointing results and find a way to get sales up to their desired level. Amanda's efforts are part of the ____________ function of management.
A. controlling
B. directing
C. organizing
D. planning
Feedback: Controlling involves checking to determine whether goals and objectives are being met, and taking corrective action if they are not.
Answer: A
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
177. A __________ is an overall explanation of why an organization exists and where it is trying to head.
A. tactical plan
B. prime directive
C. corporate charter
D. vision
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
178. A vision for a company is:
A. an explanation of why the company exists and where it wants to go.
B. the same thing as an objective.
C. a detailed plan that outlines the major organizational structure of the firm.
D. very relevant for the short-term, but less useful for the long-term.
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
179. A meaningful mission statement should address topics such as the organization's:
A. form of ownership and methods of financing.
B. self-concept and company philosophy.
C. advertising strategy and distribution plan.
D. tactical plans and contingency plans.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
180. Employees often work with managers to develop a(n) __________ that outlines the fundamental purposes of their organization.
A. organization chart
B. value statement
C. mission statement
D. PERT diagram
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
181. __________ involves setting the organization's vision, goals, and objectives.
A. Organizing
B. Planning
C. Controlling
D. Directing
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
182. ___________ are broad, long-term accomplishments an organization wants to achieve.
A. Goals
B. Objectives
C. Directives
D. Agendas
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
183. __________ are specific, short-term, measurable results an organization wants to achieve in order to fulfill its long-term goals.
A. Directives
B. Opportunity targets
C. Objectives
D. Mission complements
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
184. A __________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities.
A. WISH
B. SWAMP
C. ASSET
D. SWOT
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
185. __________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals.
A. Strategic
B. Contingency
C. Central
D. Tactical
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
186. The type of planning that is concerned with developing detailed short-term actions about what is to be done, who is to do it, and how it is to be done is known as __________ planning.
A. strategic
B. contingency
C. first-line
D. tactical
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
187. __________ planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives.
A. Strategic
B. Contingency
C. Tactical
D. Alternative
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
188. Tactical planning is concerned with:
A. determining the best way to cope with an emergency situation.
B. developing detailed strategies about what is to be done, who is to do it, and how it is to be done.
C. devising temporary courses of action to be used if the primary plans do not achieve the desired results.
D. setting long-run goals that will govern the general course of the organization for years.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
189. Which of the following is involved in setting work standards and schedules needed to implement the firm's tactical objectives?
A. Mission statement
B. Tactical planning
C. Operational planning
D. Contingency planning
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
190. A(n) __________ would be used by a department manager as a tool for making daily and weekly assignments.
A. operational plan
B. vision statement
C. mission statement
D. tactical plan
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
191. Strategic planning looks at the organization as a whole, while ________ planning focuses on daily tasks and decisions.
A. tactical
B. strategic
C. mission
D. operational
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
192. _________ planning is a part of contingency planning that is used to deal with sudden and unexpected changes in the business environment.
A. Crisis
B. Tactical
C. Operational
D. SWOT
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
193. __________ is choosing among two or more alternatives.
A. Contingency planning
B. Decision making
C. Organizational selection
D. Utility analysis
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
194. The first step in the rational decision-making model is to:
A. recruit team members to work on the problem.
B. gather data.
C. develop alternative responses.
D. define the situation.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
195. __________ is a problem solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas.
A. Brainstorming
B. Game theory
C. CAD/CAM
D. PMI
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
196. PMI is a:
A. computer program used to help managers write mission statements.
B. statistical technique used in the controlling process.
C. problem-solving technique used to evaluate possible solutions to a problem.
D. rule of thumb used to determine how many employees should be managed by any single manager.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 1 Easy
Topic: Functions of Management
197. In a company in which an effective vision has been provided:
A. there is no need for tactical planning.
B. the economic and competitive environments tend to be much more predictable.
C. employees are likely to have a sense of purpose and a common set of values.
D. goals and objectives are no longer needed.
Feedback: A vision communicates why an organization exists and where it is going. A clear vision gives employees a sense of purpose and a set of values.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: Functions of Management
198. A basic difference between goals and objectives is that goals are:
A. precise, while objectives are vague.
B. set by tactical plans, while objectives are set by strategic plans.
C. set by middle management, while objectives are set by first-line managers.
D. concerned with broad, long-term accomplishments, while objectives focus on specific short-term details.
Feedback: Goals are broad, long-term accomplishments an organization wishes to attain. Objectives are specific, short-term statements detailing how to achieve the goals.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: Functions of Management
199. Which of the following would be a concern addressed in a strategic plan?
A. Should the firm make a long-term commitment to expand into new markets?
B. Which specific jobs should be assigned to each employee?
C. How much output should be produced this week in a given production facility?
D. Which computer software package should the firm's human resources office use to manage the payroll?
Feedback: In strategic planning, an organization answers basic questions such as which customers to serve, what products to produce, and which geographic areas to select as markets.
Answer: A
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: Functions of Management
200. Because economic and competitive environments frequently change, organizations should:
A. set a long-term plan and stick to it.
B. develop contingency plans.
C. save time and money by cutting back on planning.
D. eliminate any long-term strategic plans, but devise short-term tactical plans and update them once a year.
Feedback: Contingency planning identifies alternative courses of action for use if the primary plans do not achieve the objectives of the organization. This type of planning is necessary in today's environment where economic and competitive conditions change frequently.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: Functions of Management
201. Which of the following techniques would a team of workers be most likely to use if they wanted to evaluate several possible solutions to a specific problem their company needs to solve?
A. PERT
B. Regression analysis
C. PMI
D. MBO
Feedback: PMI is a problem solving technique that evaluates possible solutions by identifying their pluses, minuses, and implications.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 2 Medium
Topic: Functions of Management
202. Jenna Raiter, the president and CEO of AutoMotion Auto Service Centers, has asked several managers and employees to help establish a statement to outline the fundamental purposes of their company. The result of this effort is likely to be a document known as a(n):
A. payoff matrix.
B. mission statement.
C. tactical plan.
D. organization chart.
Feedback: Employees and managers often work together to design a mission statement that reflects the organization's fundamental purposes.
Answer: B
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
203. Jamal is part of a management group that is examining whether his company, State Engineering, should offer some important new services that would broaden its business by appealing to a different group of potential clients. Jamal's group is involved with:
A. contingency planning.
B. operational planning.
C. strategic planning.
D. tactical planning.
Feedback: Strategic planning involves setting the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. This type of planning looks at which customers to serve, what products or services to offer, and the geographic areas where the firm will operate.
Answer: C
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
204. Monica was hired by the Misty Mount Corporation to take over as the new chief executive officer. Her initial impression is that the company is in disarray, primarily because the employees do not have a sense of purpose or a common set of values. Monica's observations suggest that she needs to provide a(n) _________ for Misty Mount.
A. vision
B. contingency plan
C. objective function
D. corporate logo
Feedback: A vision explains why an organization exists and where it is trying to go. The purpose of a vision is to provide a sense of purpose and a common set of values to unite the workers and give them a sense of direction.
Answer: A
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
205. Customers who visit any Good As New Appliance Repair Center see a framed statement prominently displayed near the front door. The plaque describes the company's fundamental purposes. In part, it states that "All Good As New Centers operate under the belief that every customer deserves good quality parts, fast and dependable service, and a fair price." The words on this plaque reflect the ____________ of Good As New.
A. strategic plan
B. mission statement
C. corporate agenda
D. corporate charter
Feedback: A mission statement is an attempt to reflect the organization's fundamental values. It identifies the guiding principles of the organization.
Answer: B
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
206. Setting contingency plans in an organization is considered very important today mainly because:
A. managers have historically been poor tactical planners.
B. the government can charge firms with unfair business practices if they do not have such plans.
C. conditions change rapidly in today's economic and competitive environments.
D. most employees and staff don't understand strategic planning, so they tend to rely more on contingency plans.
Feedback: Contingency planning involves developing alternative plans that can be used if the primary plan proves unsatisfactory. This type of planning helps firms cope with changes in the economic and competitive environment that might render the primary plan ineffective.
Answer: C
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
207. When a firm makes use of SWOT analysis, one of its objectives is to:
A. identify the best employees to fill each position within the organization.
B. set specific short-term performance standards for each department.
C. evaluate the desirability of issuing stocks or bonds in the current financial climate.
D. identify the things it does well as an organization and the things it needs to improve.
Feedback: SWOT analysis identifies an organization's strengths, weaknesses, opportunities, and threats. In the context of SWOT, strengths and weaknesses are internal to the firm. In other words, strengths refer to what the firm currently does well, and weaknesses refer to the areas where the company needs to improve.
Answer: D
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
208. Jermaine is a manager with Drevil Industries. Part of his job is to make specific short-term decisions about what his department must do to achieve Drevil's long-term success. Jermaine is involved in:
A. strategic planning.
B. contingency planning.
C. tactical planning.
D. complimentary planning.
Feedback: Tactical planning is concerned with developing specific short-run decisions about what is to be done, who is to do it, and how it is to be done.
Answer: C
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
209. Kayla is a supervisor who manages a production line. She spends several hours each week developing specific employee work assignments and production schedules for the coming week so that the production department can meet its short-term production objectives. This suggests that a significant component of Kayla's job involves:
A. strategic planning.
B. contingency planning.
C. tactical planning.
D. operational planning.
Feedback: Operational planning is the process of setting work standards and schedules necessary to implement tactical objectives. Lower-level managers such as supervisors and department managers usually carry out this type of planning.
Answer: D
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
210. Carlos had been thinking of setting up a graphic design service business for quite some time. He knew that he wanted to work at home and he now had several leads for prospective customers. He also knew how much money he needed to make to cover his expenses. He had several ways to approach his new business including working by himself or taking on a partner. Both ways needed more thought to determine what each would involve. In terms of the rational decision-making model, Carlos is in which of the following steps?
A. Defining the situation
B. Describing and collecting needed information
C. Develop alternatives
D. Determining if the decision was a good one
Feedback: Carlos has already defined the situation—that of opening a graphic design service business. He has described that he would like to locate the business in his home and who some of the customers might be. Further he has collected information about how much money he must earn. He is just beginning to consider whether he should work alone or with a partner so he is in the develop alternatives step.
Answer: C
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
211. __________ is the management function that involves allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives.
A. Controlling
B. Outsourcing
C. Organizing
D. Coordinating
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
212. The level of management that is directly responsible for assigning specific jobs to workers and evaluating their daily performance is called:
A. primary management.
B. middle management.
C. supervisory management.
D. secondary management.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
213. Middle managers are responsible for:
A. establishing the vision for the organization.
B. assigning specific jobs and evaluating the daily performance of workers.
C. devising the organization's strategic plan.
D. developing tactical plans and controlling.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
214. General and divisional managers, plant managers, and deans and department heads at colleges are classified as:
A. middle management.
B. supervisory management.
C. top management.
D. nominal management.
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
215. Supervisory managers spend most of their time on:
A. conceptual and financial skills.
B. technical and human relations skills.
C. strategic planning.
D. external efforts such as meeting with stockholders and other stakeholders.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
216. ___________ skills involve a manager's ability to picture the organization as a whole and the relationships among its various parts.
A. Creative
B. Technical
C. Conceptual
D. Autonomic
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
217. ____________ skills include the ability to perform tasks of a specific department or job, such as selling (marketing) or bookkeeping (accounting).
A. Conceptual
B. Departmental
C. Technical
D. Tactical
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
218. Leadership, coaching, and morale building are all part of a manager's _________ skills.
A. technical
B. theoretical
C. empirical
D. human relations
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
219. Although top managers most often possess these skills, they usually make less use of __________ skills than supervisory managers.
A. technical
B. conceptual
C. human relations
D. empirical
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
220. The downsizing that has occurred in recent years has __________ middle managers in many organizations.
A. increased the number of
B. eliminated the jobs of some
C. strengthened the control of
D. increased the importance of
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
221. Which of the following management positions is responsible for getting the right information to other managers to enable them to make better decisions?
A. Chief Executive Officer (CEO)
B. Chief Financial Officer (CFO)
C. Chief Planning Officer (CPO)
D. Chief Information Officer (CIO)
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
222. The further up the managerial ladder a person moves, the __________ his or her original job skills become.
A. more important
B. less important
C. stronger
D. more tactical
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
223. A chief operating officer (COO) would be classified as part of a firm's:
A. primary management.
B. middle management.
C. top management.
D. first-line management.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
224. ___________ involves recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives.
A. Directing
B. Planning
C. Leading
D. Staffing
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
225. In comparing the types of skills used by managers at different levels within an organization, which of the following is true?
A. Top managers use mainly technical skills and middle and first-line managers use mostly conceptual skills.
B. First-line managers use mainly technical and human relations skills, while top managers devote most of their time to activities involving human relations and conceptual skills.
C. The types of skills used by managers do not change much from one level of management to another.
D. The specific skills used at different levels of management do vary, but conceptual skills are the most important at all levels.
Feedback: First-line managers spend most of their time explaining procedures, assigning jobs, and evaluating the performance of employees within their own areas. These activities require human relations and technical skills. Top managers are more concerned with creating a vision, strategic planning, and overseeing the operations of the organization as a whole. This requires them to use conceptual and human relations skills.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
226. Gabriella is responsible for hiring, motivating, and retaining the best employees for her organization. Gabriella is in charge of:
A. staffing.
B. orienting.
C. directing.
D. facilitating.
Feedback: Staffing is the function of hiring, motivating, and retaining the best people available to accomplish the company's objectives.
Answer: A
AACSB: Reflective Thinking
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
227. After thirteen years as a laborer for Hendrix Construction, Jimmy was promoted to the position of foreman. He is directly responsible for assigning various jobs to his work crew and evaluating their performance on a daily basis. Jimmy is now a member of:
A. top management.
B. middle management.
C. supervisory management.
D. forward management.
Feedback: Supervisory (or first-line) managers are concerned with assigning workers to specific jobs and evaluating the daily performance of those workers.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
228. By completing the courses needed to obtain a college major in accounting, marketing, or some other field, a student can go a long way toward acquiring the _________ skills managers need to rise through the ranks of their area of specialization.
A. autocratic
B. technical
C. human relations
D. secondary
Feedback: Technical skills involve the knowledge and ability to perform a specific task. A portion of the course work in these technical areas is intended to enable the student to perform specific activities.
Answer: B
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
229. Which of the following persons is most likely to be involved in strategic planning?
A. chief executive officer
B. electrical shop supervisor
C. budget analyst
D. advertising manager
Feedback: Top managers, such as the chief executive officer of a firm normally develop strategic plans.
Answer: A
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
230. Axel is in a new position, serving as a first-line manager. Axel's position will require him to spend a lot of time:
A. developing strategic plans.
B. evaluating the daily performance of workers.
C. creating a vision for the company.
D. providing information to stakeholders.
Feedback: First-line managers are responsible for assigning specific jobs to workers and evaluating the performance of employees on a daily basis.
Answer: B
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
231. Anita is employed as plant manager for Mojo Industries, Incorporated. Though she spends some time performing all management functions, she is particularly concerned with tactical planning and controlling. Anita's position would be classified as part of Mojo's:
A. top management.
B. lateral management.
C. supervisory management.
D. middle management.
Feedback: Tactical planning and controlling are primarily the responsibility of middle managers. Examples of middle managers include plant managers, branch managers, deans and department heads.
Answer: D
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
232. After working for eleven years as a production line worker, Hollis recently was made a foreman. In his new position, Hollis will rely on:
A. conceptual skills more than human relations skills.
B. technical skills and human relations skills more than conceptual skills.
C. technical skills and conceptual skills, but he won't really need any human relations skills.
D. accounting and financial skills.
Feedback: As a first-line manager, Hollis will work with employees in ways that will require him to use technical and human relations skills extensively. First-line managers spend little time on activities requiring conceptual skills.
Answer: B
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
233. Ricardo works as a department head at Barnes Hospital. His job requires Ricardo to spend most of his time training and coaching employees to perform their jobs more effectively and teaching other managers to be better leaders. Ricardo's job requires him to make full use of his:
A. technical skills.
B. conceptual skills.
C. orientation skills.
D. human relations skills.
Feedback: Human relations skills include the ability to train, coach, and motivate employees so that they become more productive.
Answer: D
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
234. Rob intends to major in accounting because he is confident that an ability to read and interpret financial and accounting data is the way to get to the top in business. Rob seems to be concerned with developing his:
A. technical skills.
B. verbal skills.
C. qualitative skills.
D. conceptual skills.
Feedback: Technical skills are the skills that provide a manager proficiency in a particular area, such as accounting, finance, or marketing.
Answer: A
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
235. _____________ involves creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business so that it is more effective and efficient.
A. Organizing
B. Production management
C. Tactical planning
D. Leadership
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
236. Leaders:
A. embrace change.
B. are mainly concerned with tactical issues as opposed to change issues.
C. tend to do the work themselves rather than delegate it to others.
D. strive to maintain order and stability.
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
237. The __________ style of leadership is characterized by making managerial decisions without consulting others.
A. autocratic
B. bureaucratic
C. free rein
D. democratic
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
238. Managers who listen to their subordinates and allow them to participate in decision making are using the ____________ style of leadership.
A. autocratic
B. free-rein
C. participative
D. bureaucratic
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
239. A(n) __________ leader would set objectives and give employees a great deal of freedom to decide for themselves how to accomplish those objectives.
A. free-rein
B. autocratic
C. Type A
D. aristocratic
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
240. A key to effective leadership is the ability to:
A. maintain order, stability, and control.
B. communicate a vision and rally others around that vision.
C. master the technical details of the jobs performed by subordinates.
D. maintain an autocratic approach to dealing with others.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
241. __________ is the term used to describe giving workers the education and tools they need to assume additional decision-making powers.
A. Energizing
B. Provisioning
C. Upgrading
D. Enabling
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
242. _____________ means giving employees the authority and responsibility to respond quickly to customer requests.
A. Restructuring
B. Delineating
C. Empowerment
D. Intrapreneuring
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
243. In traditional organizations, ____________ involves giving explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization.
A. directing
B. organizing
C. budgeting
D. controlling
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Types of Managers and Leadership Styles
244. ____________ is concerned with finding the right information and making that information accessible and understood by everyone in an organization.
A. Mission management
B. Data management
C. Knowledge management
D. Auditing
Answer: C
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
245. The first step in developing a knowledge management system is to:
A. empower employees to make their own decisions and accept the consequences.
B. obtain the necessary information system technologies.
C. recognize that perfect information is readily available in all organizations.
D. determine what knowledge is most important to the organization.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 1 Easy
Topic: Functions of Management
246. One difference between managers and leaders is that:
A. managers are found in businesses while leaders operate in nonprofit organizations.
B. managers work to achieve stability while leaders embrace change.
C. managers use an autocratic approach while leaders embrace a democratic style.
D. all employees can manage, but only top managers can lead.
Feedback: Business literature often notes that leaders and managers do not always share the same traits. For example, although managers typically strive for order and stability, leaders frequently embrace change.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
247. Which of the following statements about effective leadership is the most accurate?
A. Effective leaders have the same personality traits.
B. The most effective leadership style depends on who is being led and in what situation.
C. The democratic style of leadership will almost always improve the effectiveness of the organization.
D. One trait of effective managers is that they consistently maintain the same style of leadership.
Feedback: No single style of leadership always works best. The style that is most effective depends on the situation and the people who are being led.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
248. Autocratic leadership is likely to be effective when:
A. subordinates are highly trained professionals.
B. the organization faces an emergency situation.
C. workers enjoy expressing their opinions and having a say in what is done.
D. the manager is uncertain about the best strategy to pursue.
Feedback: Autocratic leadership consists of making decisions without consulting others, issuing orders, and expecting subordinates to follow orders without question. This style of leadership may be effective, and even necessary, when an organization faces a crisis in which someone must take charge and make decisions quickly.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
249. Which of the following statements about leadership styles is most accurate?
A. A manager should choose one style and use it consistently.
B. Managers have no control over the leadership style they use.
C. Effective managers often use a variety of leadership styles.
D. Managers should always start with an autocratic style, but can gradually switch to a more democratic approach if workers earn their trust.
Feedback: Since the most effective leadership style depends on who is being led and the situation, managers may find that they need to use different styles when they deal with different employees, or when conditions change.
Answer: C
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
250. As firms make greater use of empowerment and teams, managers will find that they:
A. should use the same techniques for directing employees that were used in the past.
B. will need to closely supervise the teams to make sure they remain focused on the goals of the organization.
C. will need to provide the teams with detailed instructions to give them a clear sense of direction.
D. must become more like coaches and counselors than bosses.
Feedback: Empowerment means giving workers the authority and responsibility to respond quickly to customer requests. For empowerment to work, employees must be given the knowledge, tools, and freedom to make decisions without waiting for approval from their manager. Thus, a manager in an organization that relies on empowerment must be more like a coach and counselor than a boss or director who tells the workers exactly what to do.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 2 Medium
Topic: Types of Managers and Leadership Styles
251. The Adapting to Change box reflects upon the use of Twitter and other social media sources to measure customer satisfaction. GM employees scanned various social media sites to stay current with customer perceptions and complaints. It is important that customers perceive that products and services are meeting or exceeding the standards that companies set. The _____________ of management involves the monitoring of product and service performance.
A. leadership process
B. control process
C. organizing process
D. planning process
Feedback: The control process begins with clear performance standards. The process then involves monitoring and recording the performance of products and services, and comparing these results to the standards previously set. If necessary, corrective action is taken to bring negatively performing products and services to the level originally set.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 2 Medium
Topic: Functions of Management
252. When we think of successful music entertainment groups of the past 60 years, the Beatles almost always appear in the top 5! In the early days, the entertainment group’s life cycle could have ended as so many other rock groups do—here today, gone tomorrow. The four musicians were definitely creative and passionate about their craft and genre of music. As the informal leader of the group, John Lennon _____________ the others to make important compositional contributions. All four members had the opportunity to create musical compositions and receive copyright credit for their contributions.
A. transformed
B. enabled
C. empowered
D. commanded
Feedback: Progressive leaders today give employees the authority and responsibility to make decisions on their own. This is the essence of empowerment. The management coaches and advises employees, rather than directing their work.
Answer: C
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
253. Which of the following best summarizes the type of leader future organizations are likely to need? In the future, organizations will need leaders who:
A. supply both a vision and a moral and ethical foundation for growth.
B. provide the sense of stability and orderliness the organization needs to withstand the challenges posed by a changing environment.
C. have a strong track record of focusing on the accomplishment of financial objectives.
D. are effective at using autocratic techniques.
Feedback: Leaders provide vision. In the future, they will also be called upon to provide the organization with its moral compass by stressing corporate values and corporate ethics.
Answer: A
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
254. The CEO of peripheral company QuickDrive uses a leadership style that encourages employees to discuss management issues with the CEO and to work together to resolve those issues in a democratic manner. Which of the following statements would the CEO of QuickDrive most likely make?
A. The key to QuickDrive staying on top in a high-tech industry is not wasting time checking out what other firms do, but to act immediately on my directives.
B. In a high-tech business, it is more important to invest in technology than to invest in people.
C. The key to keeping talented employees loyal to QuickDrive is to use a participative management style and treat them with respect, value their ideas, give them the resources they need, and expect great things from them.
D. Spending a lot of money to buy out competitors for their technology is likely to backfire, because QuickDrive is a leader in technology development.
Feedback: The CEO of QuickDrive uses a participative management style, one that consists of managers and employees working together to make decisions. At meetings employees discuss management issues and resolve those issues together in a democratic manner, another attribute of the participative leadership style.
Answer: C
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
255. Well-known retired basketball coach Bob Knight was known for his emotional antics at Indiana University and Texas Tech. If you talk with Bob, he believes in total dedication from his team and total compliance to his style of coaching. It's "his way or the highway." Bob typifies the _____________ style of leader.
A. bureaucratic
B. free-rein
C. remanded
D. autocratic
Feedback: Autocratic leaders make decisions without consulting others.
Answer: D
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
256. At Holyfield Chemicals, department heads usually make decisions after meeting with employees and seeking their ideas and suggestions. Department heads at Holyfield Chemicals make extensive use of the ___________ style of leadership.
A. autocratic
B. diplomatic
C. participative
D. open shop
Feedback: Participative, or democratic, managers seek out the opinions and ideas of their subordinates and allow them to participate in decision making.
Answer: C
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
257. At Lifeline Pharmaceuticals, highly regarded research personnel rely on top management to provide strategic direction. Beyond that, researchers work on their own to develop new drugs to satisfy customer needs and company profit objectives. Middle management at Lifeline practice _____________.
A. free-rein leadership
B. consultative leadership
C. projectory leadership
D. autocratic leadership
Feedback: Free-rein leadership consists of managers setting objectives, and then giving subordinates a significant degree of freedom to do what it takes to accomplish those objectives.
Answer: A
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
258. Recently, a senior software engineer complained that his boss was always in the command and control mode: “He doesn’t trust us to make the right decision!” The boss rarely took the advice of his employees. There were occasions when productivity was hampered because he chose to do things only his way. Referring to leadership styles, this would best be described as:
A. free reign.
B. democratic.
C. alternative.
D. autocratic.
Feedback: Autocratic leadership means making managerial decisions without consulting others. This style is effective in emergencies, or with new, rather unskilled employees.
Answer: D
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
259. Andrew Bryant of the New York Times interviewed the CEO of Aruba Networks, who said he valued a mentor he had at Hewlett Packard several years earlier. In reference to his former mentor, the CEO recalled: “Basically, he would push you and give you as much as you could handle until you started failing. He would encourage you to not be afraid of failing—because when you start failing, that’s when you know where your limit is, and then you can improve around that. So he actually sometimes would reward failure because that means that you have pushed yourself.” The CEO was describing a former mentor who _______ his employees.
A. practiced core competency management with
B. breached
C. empowered
D. benchmarked
Feedback: Progressive leaders today give employees the authority and responsibility to make decisions on their own. This is the essence of empowerment. The management coaches and advises employees, rather than directing their work.
Answer: C
AACSB: Knowledge Appliction
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
260. Last year, Idle Time Gaming, Inc., experienced one of the most successful introductions of one of its new action videos since the company’s inception. The CEO announced that sales and profits had exceeded company projections. He attributed the success to a flexible plan, which included good design, accurate product testing, and innovative marketing and sales tactics. In order to have good recall of the procedures that were put in place for this successful introduction, he has charged a team of managers to develop a(n) __________________ system, so the company can avoid “reinventing the wheel.” For future introductions, he wants to be able to recall what worked and what didn’t work.
A. information technology
B. human relations management
C. enablement management
D. knowledge management
Feedback: Knowledge management is a system of finding the right information, keeping the information in a readily accessible place, and making the information available to all employees.
Answer: D
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Functions of Management
261. The first step in controlling consists of:
A. issuing orders and explaining routines.
B. setting clear performance standards.
C. establishing a clear chain of command.
D. assigning workers to perform specific tasks.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
262. In order for standards to be useful in the controlling process, they must have certain characteristics. One of these characteristics is that they must be:
A. nonspecific.
B. redundant.
C. included in the mission statement.
D. attainable.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
263. Which of the following should form the foundation of a firm's control system?
A. Accounting and finance
B. Marketing and production
C. Human resources and finance
D. Computing and production
Answer: A
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
264. __________ are units within an organization that receive services from other units within the organization.
A. End-users
B. Internal customers
C. Third-party distribution centers
D. Profit centers
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
265. __________ include dealers, who buy products to sell to others, and ultimate customers who buy products for their own personal use.
A. End users
B. External customers
C. Internal customers
D. Distribution centers
Answer: B
AACSB: Reflective Thinking
Bloom’s: Remember
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 1 Easy
Topic: Functions of Management
266. Ho Han has just spent two hours going over quality reports to determine whether his department is meeting quality standards he set for the current month. Ho's efforts are part of the ___________ function of management.
A. planning
B. organizing
C. directing
D. controlling
Feedback: The controlling function of management involves checking to see whether the firm is making progress toward meeting its goals and objectives, and taking corrective action if necessary.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
267. Pam is a sales manager for Paradise Beauty Products. She has told her sales people that she expects each of them to increase their customer contacts by at least 5% in the next month. Pam has set a(n):
A. procedural policy.
B. functional objective.
C. policy guide.
D. performance standard.
Feedback: In order to determine whether a firm is making progress toward its goals and objectives, managers must establish specific, attainable, and measurable standards. This is what Pam has done.
Answer: D
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
268. Which of the following is a clear performance standard?
A. Bring about a significant improvement in the morale of all workers.
B. Decrease the number of products rejected due to manufacturing defects by 10% over the next 6 months.
C. Completely eliminate all customer complaints.
D. Make secretaries more efficient.
Feedback: A good standard must be specific, measurable, and attainable. The terms "significant improvement" and "more efficient" are too vague and a complete elimination of all complaints in one month is unlikely to be an attainable standard.
Answer: B
AACSB: Reflective Thinking
Bloom’s: Understand
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 2 Medium
Topic: Functions of Management
269. Two years ago, Travis started his own restaurant supply company, serving the greater Chicago area. Until recently, he has never concerned himself with establishing a formal control system. Now, with a recession looming, he is experiencing cost-conscious restaurant owners. He has decided that a formal control system is needed. The first step Travis should take is:
A. draw up a formal organization chart.
B. talk to his banker to set financial goals.
C. devise a set of clear performance standards.
D. design an accident report form so that he can keep accurate records of all accidents that occur.
Feedback: The first step in the controlling process is to set clear performance standards.
Answer: C
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
270. Idle Time Gaming, Inc., has established clear standards of performance for its latest video game that will involve physical challenges such as hand-eye coordination and the player’s ability to react quickly. After a significant amount of testing, the results are compared to the previously established development standards. If necessary, the engineering team will correct deficiencies before customers test the game. These activities are part of the _____________ of management.
A. organizing function
B. control function
C. leading function
D. planning function
Feedback: The control function of management measures performance relative to the planned objectives and standards. The process includes establishing clear standards, as well as comparing results against standards.
Answer: B
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
271. As a middle manager for her firm, Tori just finished comparing the results of a promotional campaign with the outcome expectations. The next step in the control process is:
A. monitor and record actual performance.
B. set up contingency plans.
C. communicate results and deviations with management and employees involved.
D. establish discipline committees to decide on dismissals.
Feedback: After comparing results to standards, the next step in the control process is to communicate results and deviations to the employees involved.
Answer: C
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
272. Harper is a sales rep for an eyeglass company. The company is always on the cutting edge of trendy designs. In her job, she frequently relies on the marketing department to provide her with information and materials. When using customer satisfaction to judge the success of their company, Harper's managers should:
A. ignore Harper's satisfaction, since she is an employee rather than a customer.
B. take Harper's satisfaction into account, because customers can be internal as well as external.
C. consider Harper's satisfaction, but place less emphasis on it than on the satisfaction of a stockholder, since she is an external customer.
D. consider Harper's satisfaction only if she has worked in the same job for at least two years.
Feedback: The criterion for measuring success in a customer-oriented firm is customer satisfaction. However, customers are now defined broadly to include internal customers (people within the organization that receive services from others within the organization) as well as external (dealers and end users). Harper would be an example of an internal customer.
Answer: B
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
273. Customers who shop on Amazon find it helpful to read the customer reviews associated with products that others have purchased. After making a purchase, the customer can go to Amazon’s website and post his/her opinion of the product recently purchased. This strategy not only assists other customers with their decision making, it helps Amazon react more quickly to the performance of the products it sells. Which of the following statements attests to the value of this service?
A. This action provides for complete transparency of company financial performance.
B. This action supports a key criterion of the control function: the measurement of customer satisfaction.
C. This action provides for better tactical planning, particularly the budgeting process.
D. This action supports the premise of recruiting, hiring, and motivating the employees who believe in social media and other ways to reach customers.
Feedback: Companies measure their performance in a number of areas, including their financial performance, their areas of operation, their ability to perform learning for their employees, and customer satisfaction. The use of social media and interactive online communication provides the company with current customer perception of products and services.
Answer: B
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
274. When establishing criteria to measure the success of a customer-oriented business, managers should:
A. limit their attention to financial measures such as profit and return on investment since these are the only objective and quantifiable measures available.
B. focus most of their attention on measures of employee satisfaction, since without good employees the firm will not be competitive.
C. focus primarily on financial measures, but pay some attention to nonfinancial concerns.
D. recognize that, while financial measures are important and should be considered, the purpose of the firm is to satisfy both internal and external customers.
Feedback: Financial measures of success, such as profit and return on investment, are important and should not be ignored. In fact, these measures have traditionally been the measures most frequently used to judge success. Today, however, the purpose of a customer-oriented firm is to please all of its stakeholders. Thus, nonfinancial criteria also play an important role in measuring the success of a firm.
Answer: D
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
Essay Questions
275. Identify and define the four key functions of management.
Answer: The four functions of management are planning, organizing, leading, and controlling.
Planning includes anticipating future trends and determining the best strategies and tactics to achieve organizational goals and objectives.
Organizing includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives.
Leading is the function concerned with creating a vision for the organization and communicating, guiding, training, coaching, and motivating others to achieve the goals and objectives of the organization. Leading today often involves empowering workers and giving them the freedom to become self-directed and self-motivated.
Controlling refers to establishing clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not. Basically, it means measuring whether what actually occurs meets the organization's goals.
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-02 Describe the four functions of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
276. Explain the differences between strategic, tactical, operational, and contingency planning.
Answer: Strategic planning is long-range planning that determines major goals of the organization. It provides the foundation for the policies, procedures, and strategies for obtaining and using resources to achieve those goals. Strategic planning deals with such fundamental questions as which customers to serve, what products and services to sell, and the geographic areas in which the firm will compete. Students may note that top managers are very involved in strategic planning.
Tactical planning is short-range planning that involves the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done. Tactical planning involves setting annual budgets and deciding on other details which contribute to reaching strategic objectives. Students may point out that lower-level managers are more heavily involved in tactical planning.
Operational planning involves setting the work standards and schedules necessary to implement the company's tactical objectives. Whereas strategic planning looks at the organization as a whole, operational planning focuses on specific supervisors, department managers, and individual employees.
Contingency planning is the preparation of alternative courses of action that may be used if the primary plans do not achieve the objectives of the organization. Due to rapid changes that can occur in economic and competitive environments, it is wise to have alternative plans ready to be implemented. Crisis planning is a part of contingency planning that involves reacting to sudden changes in the environment.
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
277. What is the purpose of the SWOT analysis? What types of information does this analysis provide?
Answer: SWOT analysis is an analysis of an organization's strengths, weaknesses, opportunities, and threats. It is used to help managers answer several fundamental questions related to the planning function. These questions include:
What is the current situation facing the organization?
What is the state of the business environment?
What opportunities currently exist for meeting people's needs?
What products and customers are most profitable?
Why do people buy (or not buy) our products?
Who are our major competitors, and what threats do they pose for our business?
SWOT begins with an analysis of the general business environment. It then identifies the strengths and weaknesses of the firm. This part of SWOT involves internal analysis, which can normally be done fairly easily. Then the analysis attempts to identify opportunities and competitive and environmental threats. Since these are based on factors that are external to the firm, they are more difficult to assess.
Figure 7.2 lists several issues that SWOT analysis may examine.
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
278. What is empowerment? How has the movement toward empowerment changed the role of the manager?
Answer: Empowerment means giving employees the authority and responsibility to respond quickly to consumer requests.
In the past, managers often were bosses who issued orders and expected workers to carry them out. With the trend toward empowered workers, the manager's role is changing. The role of managers of empowered workers will be less that of boss and more that of coach, assistant, counselor and team member. They will work to enable workers to perform their tasks by giving them the education, training, and resources they need to assume their self-directed responsibilities.
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Empowering Workers
279. Describe the three basic types of management skills, and relate these skills to the tasks performed by different levels of management.
Answer: The three basic types of management skills are technical skills, human relations skills, and conceptual skills.
Technical skills are the skills needed to perform tasks in a specific discipline (such as selling a product or developing software) or department (such as marketing or information systems).
Human relations skills involve communication and motivation; they enable managers to work through and with people. Such skills also include those associated with leadership, coaching, morale building, delegating, training and development, and help and supportiveness.
Conceptual skills refer to the ability to picture the organization as a whole and the relationships among its various parts. Conceptual skills are needed in planning, organizing, controlling, systems development, problem analysis, decision making, coordinating, and delegating.
First-line managers, who often must explain procedures and specific techniques to employees, and evaluate the performance of those employees, make extensive use of technical skills. First-line managers seldom perform tasks requiring conceptual skills. At higher levels of management, managers tend to rely more on conceptual skills to carry out their controlling and planning functions but seldom need technical skills. Managers at all levels make use of human relations skills.
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
280. Describe three different leadership styles and give an example of a situation in which each style could be most used effectively.
Answer: Students should identify the following leadership styles:
Autocratic leadership involves making managerial decisions without consulting others. Such a style is effective in emergencies and when absolute followership is needed—for example, when fighting fires. Autocratic leadership is also effective sometimes with new, relatively unskilled workers who need clear direction and guidance.
Democratic (or participative) leadership encourages managers and employees to work together to make decisions. Research has found that employee participation in decisions may not always increase effectiveness, but it usually increases job satisfaction. Many progressive organizations are highly successful at using a democratic style of leadership that values traits such as flexibility, good listening skills, and empathy. Companies such as IBM, Cisco, and AT&T have used this style successfully.
Free-rein leadership involves setting objectives and giving employees a significant amount of freedom to do whatever it takes to accomplish those objectives. Doctors often have this flexibility in hospitals, as do other professionals such as engineers and lawyers, who often work on special projects or cases. The traits needed by managers in such organizations include warmth, friendliness, and understanding.
AACSB: Knowledge Application
Bloom’s: Apply
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
Multiple Choice Questions
Mini-Case
Lauzy Fare left his position as senior vice president at Blue Skies Electronics a few weeks ago to become the new CEO of Idle Time Gaming. Before joining the new company, Lauzy spent time studying Idle Time's competitive position and talking to employees in all divisions and at all levels of the organization. Based on his findings, Lauzy believes that Idle Time has potential, but also faces some serious challenges if it expects to grow.
Lauzy found that when confronted by him, most of Idle Time's professional employees seemed almost afraid to express their opinions. He learned that Otto Craddick, the previous CEO and founder of the company, viewed himself as the boss, and, as such, micromanaged every aspect of the business. This discouraged employees from using their own initiative and ideas to solve problems. For example, Otto required sales and service representatives to get his approval before they made any major commitments to customers. Otto's policy prevented the organization from responding quickly to customer requests, so sales were lost. Unlike his predecessor, Lauzy believes it is important for sales and service personnel to be able to deal with many types of customer requests without needing approval from top management. He is confident that giving employees the authority and flexibility to deal with customers, and providing them with the training and resources to help them do so, will improve morale within the company, create customer satisfaction, and grow revenues.
Lauzy also wants to make workers throughout the organization feel more appreciated. He plans to continue meeting with them on a regular basis to seek their advice. He hopes his work colleagues will eventually respond to his leadership style. He has already encouraged middle managers to get employees more involved in decision making, and has suggested some problem-solving techniques the managers could try.
Although he thought that changing the rigidity of the company culture would be his first challenge at the new firm, Lauzy quickly realized that there were no standards in place to measure the progress of changes in internal morale, customer satisfaction, and profitability. He has asked managers in those departments to spend more time setting performance standards and then monitoring actual performance. Lauzy is confident that in a relatively short period of time internal changes will lead to good company performance. As a member of top management, Lauzy performs a variety of important tasks.
281. Otto, the previous CEO at Idle Time Gaming, relied on a(n) ___________ style of management.
A. autocratic
B. iconoclastic
C. democratic
D. free-rein
Feedback: Otto made decisions without consulting others, and expected subordinates to follow orders without question. These are characteristics of the autocratic style of management.
Answer: A
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
282. Lauzy seems to prefer a(n) __________ style of leadership.
A. autocratic
B. democratic (or participative)
C. PMI
D. altruistic
Feedback: Lauzy likes to listen to the opinions and ideas of subordinates and get them involved in decision making. This indicates a democratic, or participative, style of leadership.
Answer: B
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles
283. Lauzy favors problem-solving techniques that allow teams of workers to freely identify and discuss possible solutions to a problem without having their ideas censored. Which of the following is a problem-solving technique that Lauzy is likely to suggest to his managers?
A. SWOT analysis
B. PERT analysis
C. brainstorming
D. controlling
Feedback: Brainstorming is a problem-solving technique that encourages workers to come up with as many potential solutions to the problem as possible in a short time period without censoring the ideas.
Answer: C
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals
Level of Difficulty: 3 Hard
Topic: Functions of Management
284. Lauzy's decision to establish well-defined standards for monitoring performance means that he expects management to seriously engage in the _________ function of management.
A. research and development
B. verbalizing
C. organizing
D. controlling
Feedback: Controlling is the process of measuring performance relative to objectives and standards and taking corrective action when necessary.
Answer: D
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-06 Summarize the five steps of the control function of management
Level of Difficulty: 3 Hard
Topic: Functions of Management
285. Which of the following statements best describes the relative importance of the various types of skills Lauzy will use to perform these tasks? The tasks Lauzy performs will require:
A. only technical skills.
B. mainly conceptual skills and human relations skills.
C. only human relations skills.
D. mainly technical skills and human relations skills.
Feedback: As a top manager, Lauzy may have good technical skills, but will more often use conceptual and human relations skills in day-to-day activities. The strategic planning, leadership, and other activities required of a CEO, however, will require him to use conceptual and human relations skills extensively.
Answer: B
AACSB: Analytical Thinking
Bloom’s: Analyze
Learning Objective: 07-04 Describe the organizing function of management
Level of Difficulty: 3 Hard
Topic: Types of Managers and Leadership Styles