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Chapter 01

The Management Process Today

True / False Questions

1. Organizations are collections of people who work together and coordinate their

actions to achieve a wide variety of goals or desired future outcomes.

True alse

!. The planning" organizing" leading" and controlling of human and other resources to

achieve organizational goals e#ciently and e$ectively is known as management.

True alse

%. Organizations are e#cient when managers ma&imize the amount of input resources.

True alse

'. The num(er of students competing for places in (usiness courses is on a constant

decline.

True alse

). Managers at all levels and in all departments are responsi(le for planning" organizing"

leading" and controlling.

True alse

*. +dentifying and selecting appropriate organizational goals and courses of action help

managers perform the planning task.

True alse

,. Planning strategy is clear and easy" especially (ecause planning is done under

certainty when the result is known.

True alse

-. The outcome of organizing is the creation of a strategy.

True alse

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. /n organizations vision is a short" succinct" and inspiring statement of what the

organization intends to (ecome and the goals it is seeking to achieve.

True alse

10. The controlling task helps managers evaluate how well they themselves are

performing the other three tasks of managementplanning" organizing" and leadingand take corrective action.

True alse

11. The top2line managers form the (ase of the managerial hierarchy.

True alse

1!. The middle managers supervise the supervisors.

True alse

1%. +n contrast to middle managers" top managers are responsi(le for the performance of

speci3c departments.

True alse

1'. The chief e&ecutive o#cer is a companys most senior and important manager" the

one all other top managers report to.

True alse

1). Today" the term 4chief operating o#cer4 refers to the chief e&ecutive o#cer.

True alse

1*. Conceptual skills include the general a(ility to understand" alter" lead" and control the

(ehavior of other individuals and groups.

True alse

1,. 5uman skills can (e learned through education and training" as well as (e developed

through e&perience.

True alse

1-. The array of technical skills managers need is independent of the position they hold in

their organizations.

True alse



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1. 6epartmental skills that create a core competency give an organization a competitive

advantage.

True alse

!0. 7estructuring involves contracting with another company in a low2cost country a(road

to have it perform a work activity the organization previously performed itself.

True alse

!1. 7estructuring results in the loss of 8o(s.

True alse

!!. Outsourcing decreases e#ciency (ecause it increases operating costs.

True alse

!%. Companies use their reward systems to promote empowerment.

True alse

!'. 9hen employees start using information technology :+T;" they start losing their

autonomy.

True alse

!). / self2managed team refers to a group of employees who assume collective

responsi(ility for organizing" controlling" and supervising their own work activities.

True alse

!*.

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%0. +nnovation takes place when management centralizes control of work activities and

creates an organizational culture that precludes risk taking.

True alse

%1. Turnaround management is the creation of a new vision for a struggling company

(ased on a new approach to planning and organizing to make (etter use of acompanys resources and allow it to survive and prosper.

True alse

%!. Organizations appoint turnaround C>Os when the organizations (ecome more e#cient

and e$ective.

True alse

%%. Pressure to increase performance may induce managers to (ehave unethically.

True alse

%'. Managers seldom 3nd it di#cult to manage the diversity in todays workforce.

True alse

Multiple Choice Questions

%). Managers are ?????????????.

/. collections of people who work together to achieve a wide variety of goals

@. responsi(le for making the most of an organizations human resources to achieve

its goals

C. responsi(le for planning" (efriending" leading" and controlling of human resources

to achieve organizational goals e#ciently and e$ectively

6. responsi(le for most of an organizations resources

>. typically evaluated in proportion to their success in increasing organizational

e#ciency (ut not always on their success in increasing organizational e$ectiveness

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%*. 9hich of the following is an appropriate de3nition of organizational performanceA

/. +t is the process of o(taining" analyzing" and recording information a(out the

relative worth of an employee to the organization.

@. +t is a measure of how e#ciently and e$ectively managers use availa(le resources

to satisfy customers and achieve organizational goals.

C. +t is an approach to modeling organizations using one2on2one interactions (etween

mem(ers of the organization as a pro&y for all value2adding activities in the

organization.

6. +t is a management framework that uses and integrates e&isting management

methods and techni=ues to help teams deliver ever2improving services.

>. +t is a measure of the interaction (etween the managerial culture" the workplace

culture" and the surrounding culture.

%,. / measure of how productively resources are used to achieve a goal is known as

?????????????.

/. validity

@. generaliza(ility

C. e#ciency

6. e$ectiveness

>. relia(ility

%-. 9hich of the following is true of e#ciencyA

/. +t is a measure of the appropriateness of the goals that managers have selected for

the organization to pursue.@. Organizations are e#cient when managers choose appropriate goals and then

achieve them.

C. Besser the e#ciency" higher the organizational performance.

6. Organizations are e#cient when managers minimize the amount of input

resources.

>. Organizations are e#cient when managers ma&imize the amount of time needed to

produce a given output of goods.

%. / measure of the appropriateness of the goals that managers have selected for the

organization to pursue and the degree to which the organization achieves those goals

is ?????????????.

/. e#ciency

@. generaliza(ility

C. relia(ility

6. utility

>. e$ectiveness



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'0. 9hich of the following is true of e$ectivenessA

/. Organizational performance increases in direct proportion to increase in

e$ectiveness.

@. Organizations are e$ective when managers minimize the time needed to produce a

given output of services.

C. +t is a measure of how productively resources are used to achieve a goal.

6. Organizations are e$ective when managers minimize the amount of input

resources.

>. >$ectiveness is related to performance (ut not e#ciency.

'1. 9hich of the following is true of low e#ciencyhigh e$ectiveness situationsA

/. They arise when managers choose the wrong goals to pursue and make poor use of

resources.

@. They arise when managers choose the right goals to pursue" (ut do a poor 8o( ofusing resources to achieve these goals.

C. They arise when managers choose the right goals to pursue and make good use of

resources to achieve these goals.

6. They result in the production of a low2=uality product that customers do not want.

>. They result in the production of a high2=uality product that customers do not want.

'!. 5igh e#ciencyhigh e$ectiveness situationsD

/. arise when managers choose the wrong goals to pursue and make poor use of

resources.

@. result in the production of a low2=uality product that customers do not want.C. result in the production of a product that customers want at a =uality and price that

they can a$ord.

6. result in the production of a product that customers want" (ut that is too e&pensive

for them to (uy.

>. arise when managers choose inappropriate goals" (ut make good use of resources

to pursue these goals.

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'%. 9hich of the following is true of low e#ciencylow e$ectiveness situationsA

/. They arise when managers choose the right goals to pursue" (ut do a poor 8o( of

using resources to achieve these goals.

@. They result in the production of a product that customers want" (ut that is too

e&pensive for them to (uy.

C. They result in the production of a product that customers want at a =uality and

price that they can a$ord.

6. They arise when managers choose the wrong goals to pursue and make poor use of

resources.

>. They arise when managers choose inappropriate goals" (ut make good use of

resources to pursue these goals.

''. The goals chosen (y the management of 6inos Cafe seemed inappropriate for the

store" (ut the management did make good use of the various resources in pursuing

these goals. 6inos Cafe is said to haveD

/. low e#ciency and high e$ectiveness.

@. high e#ciency and high e$ectiveness.

C. low e#ciency and low e$ectiveness.

6. low conceptual skills and low human skills.

>. high e#ciency and low e$ectiveness.

'). +n what order do managers typically perform the managerial functionsA

/. Organizing" planning" controlling" leading

@. Organizing" leading" planning" controllingC. Planning" organizing" leading" controlling

6. Planning" organizing" controlling" leading

>. Beading" organizing" planning" controlling

'*. Managers identify and select appropriate organizational goals and courses of action to

perform the ?????????????? task.

/. planning

@. organizing

C. leading

6. controlling

>. commanding

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',. 5ow to allocate organizational resources to pursue the strategies that attain set goals"

is a =uestion addressed duringD

/. regulating.

@. planning.

C. leading.

6. controlling.

>. commanding.

'-. 9hich of the following refers to a cluster of decisions concerning what organizational

goals to pursue" what actions to take" and how to use resources to achieve these

goalsA

/. Eynergy

@. Falue

C. Etrategy6. Mission

>. @usiness model

'. 9hich of the following strategies helps an organization to o(tain customers (y making

decisions that allow it to produce goods or services more cheaply than its

competitorsA

/. 6isintermediation strategy

@. Centralization strategy

C. Penetration strategy

6. Bow2cost strategy>. 6i$erentiation strategy

)0. The strategy of delivering new" e&citing" and uni=ue products to the customers is

known as a ????????????? strategy.

/. low2cost

@. disintermediation

C. centralization

6. penetration

>. di$erentiation

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)1. The process of structuring working relationships so that organizational mem(ers

interact and cooperate to achieve organizational goals is known as ??????????.

/. planning

@. leading

C. commanding

6. controlling

>. organizing

)!. 9hen a manager lays out the lines of authority and responsi(ility among di$erent

individuals and groups" the manager isD

/. organizing.

@. leading.

C. controlling.

6. planning.>. sta#ng.

)%. / formal system of reporting relationships that coordinates and motivates

organizational mem(ers so that they work together to attempt to achieve

organizational goals is called an organizationalD

/. culture.

@. psychology.

C. structure.

6. assimilation.

>. chart.

)'. / short" succinct" and inspiring statement of what the organization intends to (ecome

is an organizations ??????????.

/. goal

@. value

C. strategy

6. vision

>. mission

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)). /s managers articulate a clear organizational vision for the organizations mem(ers to

accomplish and as they energize and ena(le employees so that everyone understands

the part they play in achieving organizational goals" the managers are ??????????????.

/. planning

@. organizing

C. controlling

6. commanding

>. leading

)*. 9hich of the managerial functions involves managers using their power" personality"

inGuence" persuasion" and communication skills to coordinate people and groups so

that their activities and e$orts are in harmonyA

/. Beading

@. PlanningC. Organizing

6. Controlling

>. /rranging

),. 9hich of the following is true of leadershipA

/. +t helps managers evaluate how well they themselves are performing.

@. +t revolves around encouraging all employees to perform at a high level to help the

organization achieve its vision and goals.

C. Managers evaluate how well an organization has achieved its goals and take

corrective actions needed to improve performance.6. +t revolves around regulation of organizational e#ciency and e$ectiveness.

>. Managers decide which goals to measure and then design control systems that will

provide the information necessary to assess performance.

)-. The task of managers to evaluate how well an organization has achieved its goals and

to take any corrective actions needed to maintain or improve performance is

?????????.

/. planning

@. organizing

C. leading

6. sta#ng

>. controlling



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). 9hich of the following processes gives the managers the a(ility to measure

performance accurately and regulate organizational e#ciency and e$ectivenessA

/. Controlling

@. Planning

C. Organizing

6. Beading

>. Eta#ng

*0. Mark" a manager at Matts Ehack" monitors the work performance of workers in his

department to determine if the =uality of their work is meeting the standards of the

company. Mark is engaging in which of the following managerial functionsA

/. Planning

@. Eta#ng

C. Organizing6. Beading

>. Controlling

*1. Eusan" the C>O of Hnited Iroup Btd." reviews the performance of her company in the

past months Pro3t J Boss Etatement to determine if the company is on pace to meet

the planned sales and pro3ta(ility goals. Eusan is engaged in which of the following

managerial functionsA

/. Planning

@. Organizing

C. Eta#ng6. Controlling

>. Beading

*!. irst2line managersD

/. increase e#ciency (y helping middle2level managers (etter use resources to

reduce manufacturing costs or improve customer service.

@. are also known as supervisors.

C. are at the top of the managerial hierarchy.

6. work in one single department of an organization.

>. are responsi(le for 3nding the (est way to organize human and other resources to

achieve organizational goals.



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*%. 9hich of the following is true of middle managersA

/. They decide how the di$erent departments should interact.

@. They are responsi(le for daily supervision of the nonmanagerial employees who

perform the speci3c activities necessary to produce goods and services.

C. They develop and 3ne2tune skills and know2how that allow the organization to (e

e#cient and e$ective.

6. They are responsi(le for the performance of all departments.

>. They esta(lish organizational goals.

*'. 9hich of the following is true of top managersA

/. They are responsi(le for 3nding the (est way to organize human and other

resources to achieve organizational goals.


perform the speci3c activities necessary to produce goods and services.C. They 3nd ways to help 3rst2line managers and nonmanagerial employees (etter

use resources to reduce manufacturing costs or improve customer service.

6. They have cross2departmental responsi(ility.

>. They are responsi(le for a single department.

*). 9ho amongst the following is most likely to (e a part of the top management teamA

/. Eupervisor

@. 5ead nurse

C. Chief mechanic

6. 6ivisional manager>. Chief e&ecutive o#cer

**. @eing a part of top management at a large fast food chain" 6onald is most likely to

spend more of his time inD

/. planning and organizing resources.

@. planning and controlling nonmanagerial employees.

C. planning and leading 3rst2line managers.

6. organizing resources and controlling nonmanagerial employees.

>. organizing resources and leading 3rst2line managers.



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*,. The a(ility to analyze and diagnose a situation and to distinguish (etween cause and

e$ect demonstrates a managers ???????????? skills.

/. interpersonal

@. conceptual

C. human

6. technical

>. communication

*-. The general a(ility to understand" alter" lead" and control the (ehavior of individuals

and groups are ?????????????? skills.

/. analytic

@. cognitive

C. human

6. technical>. conceptual

*. The 8o(2speci3c skills re=uired to perform a particular type of work at a high level are

a part of a managers ??????????? skills.

/. human

@. communication

C. interpersonal

6. technical

>. conceptual

,0. The speci3c set of departmental skills" knowledge" and e&perience that allows one

organization to outperform its rivals is known as the organizationsD

/. strategy.

@. vision.

C. goal.

6. mission.

>. core competency.

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,1. Eimplifying" shrinking" or downsizing an organizations operations to lower operating

costs is known asD

/. restructuring.

@. outsourcing.

C. empowering.

6. innovating.

>. telecommuting.

,!. resh arms" +nc." is facing 3nancial pro(lems. +n order to tackle the situation" the

management has decided to reduce the num(er of middle managers (y !0 percent to

help them cut costs. This is an e&ample ofD

/. telecommuting.

@. restructuring.

C. outsourcing.6. empowering.

>. innovating.

,%. The company for which Margaret works has announced that due to declining glo(al

sales" it will lay o$ 1! percent of its la(or force. This is an e&ample ofD

/. innovating.

@. telecommuting.

C. restructuring.

6. outsourcing.

>. empowering.

,'. Contracting with another company" usually in a low2cost country a(road" to have it

perform a work activity the organization previously performed itself is known as

??????????.

/. integrating

@. telecommuting

C. outsourcing

6. restructuring

>. insourcing

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,). 9hich of the following management techni=ues involves giving employees more

authority and responsi(ility over how they perform their work activitiesA

/. +nnovation

@. Total =uality management

C. >mpowerment

6. Outsourcing

>. 7estructuring

,*. / (ank allows its tellers to not only handle deposits and dis(ursement" (ut also

distri(ute travelers checks and sell certi3cates of deposit. This is an e&ample ofD

/. innovation.

@. restructuring.

C. total =uality management.

6. empowerment.>. outsourcing.

,,. Ieorge works as the human resource manager at Maddys Confectionaries. +t was

mandatory for his su(ordinates to o(tain his signature on every document related to

the hiring of a new employee. 9hen he realized that this was increasing the duration

of the hiring process" he told his su(ordinates that they no longer needed his

signature unless the hire involved e&traordinary circumstances. This is an e&ample ofD

/. restructuring.

@. outsourcing.

C. total =uality management.6. empowerment.

>. innovation.

,-. 9hich of the following is an accurate de3nition of a self2managed teamA

/. +t is a group of people who work interdependently and with shared purpose across

space" time" and organization (oundaries using technology to communicate and

colla(orate.

@. +t involves several professionals who independently address various issues that an

organization may have" focusing on the issues in which they specialize.

C. +t lessens the autonomy en8oyed (y the employee.

6. +t refers to a group of employees who assume collective responsi(ility for

organizing" controlling" and supervising their own work activities.

>. +t refers to a team used only for a de3ned period of time and for a separate"

concretely de3na(le purpose.



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,. Organizations that operate and compete in more than one country are known as

???????????? organizations.

/. domestic

@. central

C. holding

6. =uasi2autonomous

>. glo(al

-0. The a(ility of one organization to outperform other organizations (ecause it produces

desired goods or services more e#ciently and e$ectively than its competitors is

known as itsD

/. competitive advantage.

@. strategy.

C. a(solute advantage.6. goal.

>. mission.

-1. The creation of a new vision for a struggling company (ased on a new approach to

planning and organizing to make (etter use of a companys resources and allow it to

survive and prosper is ??????????????? management.

/. performance

@. total =uality

C. scienti3c

6. turnaround>. impression

Essay Questions

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-!. 9hat is organizational performance and what is its relationship with e#ciency and

e$ectivenessA

-%. 6e3ne e#ciency. 9hen is an organization said to (e e#cientA

-'. >&plain e$ectiveness. 9hen is an organization said to (e e$ectiveA

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-. 6iscuss the managerial function of leading. 9hat is its outcomeA

0. 9hat does the managerial function of controlling involveA

1. +dentify the three levels of management and e&plain the (asic responsi(ilities of

each.

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!. +dentify and (rieGy de3ne the three ma8or types of managerial skills.

%. 9hat is restructuring and what are its disadvantagesA

'. >&plain the signi3cance of information technology with regards to empowering

employees and facilitating self2managed teams.



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). 6e3ne competitive advantage. 9hat are its four (uilding (locksA

*. 6iscuss the concept of turnaround management.



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Chapter 01 The Management Process Today /nswer Key

True / False Questions

1. Organizations are collections of people who work together and coordinate their

actions to achieve a wide variety of goals or desired future outcomes.

TRUE

Organizations are collections of people who work together and coordinate their

actions to achieve a wide variety of goals" or desired future outcomes.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difculty: 1 Easy

Learning b!ective: "1#"1 Describe $%at management is& $%y management is im'ortant& $%at managers do&

and %o$ managers use organi(ational resources efciently and e)ectively to ac%ieve organi(ational goals*

+o'ic: ,%at is -anagement.

!. The planning" organizing" leading" and controlling of human and other resources to

achieve organizational goals e#ciently and e$ectively is known as management.

TRUE

Management is the planning" organizing" leading" and controlling of human and

other resources to achieve organizational goals e#ciently and e$ectively.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy






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%. Organizations are e#cient when managers ma&imize the amount of input

resources.

FALSE

>#ciency is a measure of how productively resources are used to achieve a goal.

Organizations are e#cient when managers minimize the amount of input resources

or the amount of time needed to produce a given output of goods or services.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




'. The num(er of students competing for places in (usiness courses is on a constant

decline.

FALSE

Today more students are competing for places in (usiness courses than ever

(eforeL the num(er of people wishing to pursue Master of @usiness /dministration

:M@/; degreestodays passport to an advanced management positioneither on

campus or from online universities and colleges is at an all2time high.

AACSB: Analytic


Blooms: RememberDifculty: 1 Easy




). Managers at all levels and in all departments are responsi(le for planning"

organizing" leading" and controlling.

TRUE

Managers perform four essential managerial tasksD planning" organizing" leading"

and controlling. Managers at all levels and in all departmentswhether in small or

large companies" for2pro3t or not2for2pro3t organizations" or organizations that

operate in one country or throughout the worldare responsi(le for performing

these four tasks.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy

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Learning b!ective: "1#"/ Distinguis% among 'lanning& organi(ing& leading& and controlling 0t%e our 'rinci'al

managerial tas2s3& and e4'lain %o$ managers5 ability to %andle eac% one a)ects organi(ational 'erormance*

+o'ic: Essential -anagerial +as2s

*. +dentifying and selecting appropriate organizational goals and courses of action

help managers perform the planning task.

TRUE

To perform the planning task" managers identify and select appropriate

organizational goals and courses of action. The three steps involved in planning are

:1; deciding which goals the organization will pursue" :!; deciding what strategies

to adopt to attain those goals" and :%; deciding how to allocate organizational

resources to pursue the strategies that attain those goals.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




,. Planning strategy is clear and easy" especially (ecause planning is done under

certainty when the result is known.

FALSE

Planning strategy is comple& and di#cult" especially (ecause planning is done

under uncertainty when the result is unknown so that success or failure are (oth

possi(le outcomes of the planning process. Managers take ma8or risks when theycommit organizational resources to pursue a particular strategy.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




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-. The outcome of organizing is the creation of a strategy.

FALSE

Etrategy is associated with the managerial function of planning. The outcome of

organizing is the creation of an organizational structure" a formal system of task

and reporting relationships that coordinates and motivates mem(ers so they work

together to achieve organizational goals.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




. /n organizations vision is a short" succinct" and inspiring statement of what the

organization intends to (ecome and the goals it is seeking to achieve.

TRUE

/n organizations vision is a short" succinct" and inspiring statement of what the

organization intends to (ecome and the goals it is seeking to achieveits desired

future state. +n leading" managers articulate a clear organizational vision for the

organizations mem(ers to accomplish" and they energize and ena(le employees so

everyone understands the part heshe plays in achieving organizational goals.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




10. The controlling task helps managers evaluate how well they themselves are

performing the other three tasks of managementplanning" organizing" and

leadingand take corrective action.

TRUE

To e&ercise control" managers must decide which goals to measure and then they

must design control systems that will provide the information necessary to assess

performance. The controlling task also helps managers evaluate how well they

themselves are performing the other three tasks of managementplanning"

organizing" and leadingand take corrective action.

AACSB: Analytic



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Blooms: Remember

Difculty: 1 Easy




11. The top2line managers form the (ase of the managerial hierarchy.

FALSE

Organizations normally have three levels of managementD 3rst2line managers"

middle managers" and top managers. /t the (ase of the managerial hierarchy are

3rst2line managers" often called supervisors.

AACSB: Analytic


Blooms: Remember

Difculty: 1 EasyLearning b!ective: "1#"6 Di)erentiate among t%ree levels o management& and understand t%e tas2s and

res'onsibilities o managers at di)erent levels in t%e organi(ational %ierarc%y*

+o'ic: Levels and S2ills o -anagers

1!. The middle managers supervise the supervisors.

TRUE

The 3rst2line managers are often called supervisors. Eupervising the 3rst2line

managers are middle managers" responsi(le for 3nding the (est way to organize

human and other resources to achieve organizational goals.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy

Learning b!ective: "1#"6 Di)erentiate among t%ree levels o management& and understand t%e tas2s and



1%. +n contrast to middle managers" top managers are responsi(le for the performance

of speci3c departments.

FALSE

+n contrast to middle managers" top managers are responsi(le for the performance

of all departments. They have cross2departmental responsi(ility.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy

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1'. The chief e&ecutive o#cer is a companys most senior and important manager" the

one all other top managers report to.

TRUE

The chief e&ecutive o#cer :C>O; is a companys most senior and important

manager" the one all other top managers report to. Today the term 4chief operating

o#cer4 :COO; refers to the companys top manager who is (eing groomed to take

over as C>O when its current C>O" (ecomes the chair of the (oard" retires" or

leaves the company.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




1). Today" the term 4chief operating o#cer4 refers to the chief e&ecutive o#cer.

FALSE


manager" the one all other top managers report to. Today the term 4chief operating

o#cer4 :COO; refers to the companys top manager who is (eing groomed to take

over as C>O when its current C>O" (ecomes the chair of the (oard" retires" orleaves the company.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




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1*. Conceptual skills include the general a(ility to understand" alter" lead" and control

the (ehavior of other individuals and groups.

FALSE

Conceptual skills are demonstrated in the general a(ility to analyze and diagnose a

situation and to distinguish (etween cause and e$ect. Top managers re=uire the

(est conceptual skills (ecause their primary responsi(ilities are planning and

organizing.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy

Learning b!ective: "1#"7 Distinguis% among t%ree 2inds o managerial s2ill& and e4'lain $%y managers are

divided into di)erent de'artments*


1,. 5uman skills can (e learned through education and training" as well as (edeveloped through e&perience.

TRUE

Bike conceptual skills" human skills can (e learned through education and training"

as well as (e developed through e&perience. Organizations increasingly utilize

advanced programs in leadership skills and team leadership as they seek to

capitalize on the advantages of self2managed teams.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




1-. The array of technical skills managers need is independent of the position they hold

in their organizations.

FALSE

Managers need a range of technical skills to (e e$ective. The array of technical

skills managers need depends on their position in their organizations.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy



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1. 6epartmental skills that create a core competency give an organization a

competitive advantage.

TRUE

The term 4core competency4 is often used to refer to the speci3c set of

departmental skills" knowledge" and e&perience that allows one organization to

outperform its competitors. +n other words" departmental skills that create a core

competency give an organization a competitive advantage.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




!0. 7estructuring involves contracting with another company in a low2cost country

a(road to have it perform a work activity the organization previously performed

itself.

FALSE

7estructuring involves simplifying" shrinking" or downsizing an organizations

operations to lower operating costs. 7estructuring can (e done (y eliminating

product teams" shrinking departments" and reducing levels in the hierarchy" all of

which result in the loss of large num(ers of 8o(s of top" middle" or 3rst2line

managers" as well as nonmanagerial employees.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy

Learning b!ective: "1#"8 Discuss some ma!or c%anges in management 'ractices today t%at %ave occurred as a

result o globali(ation and t%e use o advanced inormation tec%nology 09+3*

+o'ic: Recent C%anges in -anagement ractices

!1. 7estructuring results in the loss of 8o(s.

TRUE

7estructuring can (e done (y eliminating product teams" shrinking departments"

and reducing levels in the hierarchy" all of which result in the loss of large num(ers

of 8o(s of top" middle" or 3rst2line managers" as well as nonmanagerial employees.

AACSB: Analytic


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Blooms: Remember

Difculty: 1 Easy




!!. Outsourcing decreases e#ciency (ecause it increases operating costs.

FALSE

Outsourcing involves contracting with another company" in a low2cost country

a(road" to have it perform a work activity the organization previously performed

itself. Outsourcing increases e#ciency (ecause it lowers operating costs" freeing up

money and resources that can then (e used in more e$ective ways.

AACSB: Analytic


Blooms: Remember

Difculty: 1 EasyLearning b!ective: "1#"8 Discuss some ma!or c%anges in management 'ractices today t%at %ave occurred as a



!%. Companies use their reward systems to promote empowerment.

TRUE

>mpowerment is a management techni=ue that involves giving employees more

authority and responsi(ility over how they perform their work activities. Often

companies 3nd that empowering employees can lead to so many kinds of

performance gains that they use their reward systems to promote empowerment.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




!'. 9hen employees start using information technology :+T;" they start losing their

autonomy.

FALSE

re=uently +T allows one employee to perform a task that was previously performed

(y many employees. /s a result" the employee has more autonomy and

responsi(ility.

AACSB: Analytic


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Blooms: Remember

Difculty: 1 Easy




!). / self2managed team refers to a group of employees who assume collective

responsi(ility for organizing" controlling" and supervising their own work activities.

TRUE

+nformation technology :+T; facilitates the use of a self2managed team" a group of

employees who assume collective responsi(ility for organizing" controlling" and

supervising their own work activities. Hsing +T designed to give team mem(ers real2

time information a(out each mem(ers performance" a self2managed team can

often 3nd ways to accomplish a task more =uickly and e#ciently.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




!*.

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!,. The four (uilding (locks of competitive advantage are superior e#ciency" =uality"

innovation" and responsiveness to customers.

TRUE

Competitive advantage is the a(ility of one organization to outperform other

organizations (ecause it produces desired goods or services more e#ciently and

e$ectively than its competitors. The four (uilding (locks of competitive advantage

are superior e#ciency" =uality" innovation" and responsiveness to customers.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy

Learning b!ective: "1#"; Discuss t%e 'rinci'al c%allenges managers ace in today5s increasingly com'etitive

global environment*

+o'ic: C%allenges or -anagement in a

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global environment*


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%!. Organizations appoint turnaround C>Os when the organizations (ecome more

e#cient and e$ective.

FALSE

Organizations that appoint turnaround C>Os are generally e&periencing a crisis

(ecause they have (ecome ine#cient or ine$ectiveL sometimes this is (ecause of

poor management over a continuing period" and sometimes it occurs (ecause a

competitor introduces a new product or technology that makes their own products

unattractive to customers.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy


global environment*


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global environment*


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%*. 9hich of the following is an appropriate de3nition of organizational performanceA

/. +t is the process of o(taining" analyzing" and recording information a(out the

relative worth of an employee to the organization.

B.+t is a measure of how e#ciently and e$ectively managers use availa(leresources to satisfy customers and achieve organizational goals.

C. +t is an approach to modeling organizations using one2on2one interactions

(etween mem(ers of the organization as a pro&y for all value2adding activities

in the organization.

6. +t is a management framework that uses and integrates e&isting management

methods and techni=ues to help teams deliver ever2improving services.

>. +t is a measure of the interaction (etween the managerial culture" the workplace

culture" and the surrounding culture.

Organizational performance is a measure of how e#ciently and e$ectively

managers use availa(le resources to satisfy customers and achieve organizational

goals. Organizational performance increases in direct proportion to increases ine#ciency and e$ectiveness.

AACSB: Analytic


Blooms: Remember

Difculty: / -edium




%,. / measure of how productively resources are used to achieve a goal is known as

?????????????.

/. validity

@. generaliza(ility

C. e#ciency

6. e$ectiveness

>. relia(ility




AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




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%-. 9hich of the following is true of e#ciencyA

/. +t is a measure of the appropriateness of the goals that managers have selected

for the organization to pursue.

@. Organizations are e#cient when managers choose appropriate goals and thenachieve them.

C. Besser the e#ciency" higher the organizational performance.

D.Organizations are e#cient when managers minimize the amount of input

resources.

>. Organizations are e#cient when managers ma&imize the amount of time

needed to produce a given output of goods.




AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium




%. / measure of the appropriateness of the goals that managers have selected for the

organization to pursue and the degree to which the organization achieves those

goals is ?????????????.

/. e#ciency

@. generaliza(ility

C. relia(ility

6. utility

E. e$ectiveness

>$ectiveness is a measure of the appropriateness of the goals that managers have

selected for the organization to pursue and the degree to which the organization

achieves those goals. Organizations are e$ective when managers choose

appropriate goals and then achieve them.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




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'0. 9hich of the following is true of e$ectivenessA

A.Organizational performance increases in direct proportion to increase in

e$ectiveness.

@. Organizations are e$ective when managers minimize the time needed toproduce a given output of services.

C. +t is a measure of how productively resources are used to achieve a goal.

6. Organizations are e$ective when managers minimize the amount of input

resources.

>. >$ectiveness is related to performance (ut not e#ciency.

>$ectiveness is a measure of the appropriateness of the goals that managers have

selected for the organization to pursue and the degree to which the organization

achieves those goals. Organizations are e$ective when managers choose

appropriate goals and then achieve them.

AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium




'1. 9hich of the following is true of low e#ciencyhigh e$ectiveness situationsA

/. They arise when managers choose the wrong goals to pursue and make poor

use of resources.B.They arise when managers choose the right goals to pursue" (ut do a poor 8o( of


C. They arise when managers choose the right goals to pursue and make good use

of resources to achieve these goals.

6. They result in the production of a low2=uality product that customers do not

want.

>. They result in the production of a high2=uality product that customers do not

want.

Bow e#ciencyhigh e$ectiveness situations arise when manager choose the right

goals to pursue" (ut do a poor 8o( of using resources to achieve these goals. These

situations result in the production of a product that customers want" (ut that is tooe&pensive for them to (uy.

7eferD igure 1.1

AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium

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'!. 5igh e#ciencyhigh e$ectiveness situationsD

/. arise when managers choose the wrong goals to pursue and make poor use of

resources.

@. result in the production of a low2=uality product that customers do not want.

C.result in the production of a product that customers want at a =uality and price

that they can a$ord.

6. result in the production of a product that customers want" (ut that is too

e&pensive for them to (uy.

>. arise when managers choose inappropriate goals" (ut make good use of


5igh e#ciencyhigh e$ectiveness situations arise when managers choose the right

goals to pursue and make good use of resources to achieve these goals. +t results inthe production of a product that customers want at a =uality and price that they

can a$ord.

7eferD igure 1.1

AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium




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'%. 9hich of the following is true of low e#ciencylow e$ectiveness situationsA

/. They arise when managers choose the right goals to pursue" (ut do a poor 8o( of


@. They result in the production of a product that customers want" (ut that is tooe&pensive for them to (uy.

C. They result in the production of a product that customers want at a =uality and

price that they can a$ord.

D.They arise when managers choose the wrong goals to pursue and make poor

use of resources.

>. They arise when managers choose inappropriate goals" (ut make good use of


Bow e#ciencylow e$ectiveness situations arise when managers choose the wrong

goals to pursue and make poor use of resources. +t results in the production of a

low2=uality product that customers do not want.

7eferD igure 1.1

AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium




''. The goals chosen (y the management of 6inos Cafe seemed inappropriate for the

store" (ut the management did make good use of the various resources in pursuing

these goals. 6inos Cafe is said to haveD

/. low e#ciency and high e$ectiveness.

@. high e#ciency and high e$ectiveness.

C. low e#ciency and low e$ectiveness.

6. low conceptual skills and low human skills.

E. high e#ciency and low e$ectiveness.

5igh e#ciencylow e$ectiveness situations arise when managers choose

inappropriate goals" (ut make good use of resources to pursue these goals. +t

results in the production of a high2=uality product that customers do not want.

7eferD igure 1.1

AACSB: Analytic


Blooms: A''ly

Difculty: / -edium




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'). +n what order do managers typically perform the managerial functionsA

/. Organizing" planning" controlling" leading

@. Organizing" leading" planning" controlling

C. Planning" organizing" leading" controllingD. Planning" organizing" controlling" leading

>. Beading" organizing" planning" controlling

Typically" the order in which managers perform the managerial functions areD :1;

planning" :!; organizing" :%; controlling" and :'; leading.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




'*. Managers identify and select appropriate organizational goals and courses of action

to perform the ?????????????? task.

A. planning

@. organizing

C. leading

6. controlling

>. commanding


organizational goals and courses of actionL they develop strategies for how to

achieve high performance. The three steps involved in planning are :1; deciding

which goals the organization will pursue" :!; deciding what strategies to adopt to

attain those goals" and :%; deciding how to allocate organizational resources to

pursue the strategies that attain those goals.

AACSB: Analytic


Blooms: Remember

Difculty: 1 EasyLearning b!ective: "1#"/ Distinguis% among 'lanning& organi(ing& leading& and controlling 0t%e our 'rinci'al





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',. 5ow to allocate organizational resources to pursue the strategies that attain set

goals" is a =uestion addressed duringD

/. regulating.

B. planning.C. leading.

6. controlling.

>. commanding.


organizational goals and courses of actionL they develop strategies for how to

achieve high performance. The three steps involved in planning are :1; deciding

which goals the organization will pursue" :!; deciding what strategies to adopt to

attain those goals" and :%; deciding how to allocate organizational resources to

pursue the strategies that attain those goals.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




'-. 9hich of the following refers to a cluster of decisions concerning what

organizational goals to pursue" what actions to take" and how to use resources to

achieve these goalsA

/. Eynergy

@. Falue

C. Etrategy

6. Mission

>. @usiness model

Etrategy refers to a cluster of decisions concerning what organizational goals to

pursue" what actions to take" and how to use resources to achieve these goals.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy






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'. 9hich of the following strategies helps an organization to o(tain customers (y

making decisions that allow it to produce goods or services more cheaply than its

competitorsA

/. 6isintermediation strategy@. Centralization strategy

C. Penetration strategy

D. Bow2cost strategy

>. 6i$erentiation strategy

/ low2cost strategy is a way of o(taining customers (y making decisions that allow

an organization to produce goods or services more cheaply than its competitors so

it can charge lower prices than they do.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




)0. The strategy of delivering new" e&citing" and uni=ue products to the customers is

known as a ????????????? strategy.

/. low2cost

@. disintermediation

C. centralization6. penetration

E. di$erentiation

The strategy of delivering new" e&citing" and uni=ue products to the customers is

known as a di$erentiation strategy.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy


managerial tas2s3& and e4'lain %o$ managers5 ability to %andle eac% one a)ects organi(ational 'erormance*+o'ic: Essential -anagerial +as2s

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)1. The process of structuring working relationships so that organizational mem(ers

interact and cooperate to achieve organizational goals is known as ??????????.

/. planning

@. leadingC. commanding

6. controlling

E. organizing

Organizing is structuring working relationships so organizational mem(ers interact

and cooperate to achieve organizational goals. Organizing people into departments

according to the kinds of 8o(2speci3c tasks they perform lays out the lines of

authority and responsi(ility among di$erent individuals and groups.

AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




)!. 9hen a manager lays out the lines of authority and responsi(ility among di$erent

individuals and groups" the manager isD

A. organizing.

@. leading.

C. controlling.6. planning.

>. sta#ng.





AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




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)%. / formal system of reporting relationships that coordinates and motivates

organizational mem(ers so that they work together to attempt to achieve

organizational goals is called an organizationalD

/. culture.@. psychology.

C. structure.

6. assimilation.

>. chart.





AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




)'. / short" succinct" and inspiring statement of what the organization intends to

(ecome is an organizations ??????????.

/. goal

@. valueC. strategy

D. vision

>. mission

/n organizations vision is a short" succinct" and inspiring statement of what the

organization intends to (ecome and the goals it is seeking to achieveits desired

future state. +n leading" managers articulate a clear organizational vision for the

organizations mem(ers to accomplish" and they energize and ena(le employees so


AACSB: AnalyticAccessibility: Keyboard Navigation

Blooms: Remember

Difculty: 1 Easy






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)). /s managers articulate a clear organizational vision for the organizations mem(ers

to accomplish and as they energize and ena(le employees so that everyone

understands the part they play in achieving organizational goals" the managers are

??????????????.

/. planning

@. organizing

C. controlling

6. commanding

E. leading

+n leading" managers articulate a clear organizational vision for the organizations

mem(ers to accomplish" and they energize and ena(le employees so that


AACSB: Analytic


Blooms: Remember

Difculty: 1 Easy




)*. 9hich of the managerial functions involves managers using their power"

personality" inGuence" persuasion" and communication skills to coordinate people

and groups so that their activities and e$orts are in harmonyA

A. Beading@. Planning

C. Organizing

6. Controlling

>. /rranging

Beadership involves managers using their power" personality" inGuence"

persuasion" and communication skills to coordinate people and groups so their

activities and e$orts are in harmony. +t revolves around encouraging all employees

to perform at a high level to help the organization achieve its vision and goals.


Blooms: Remember

Difculty: 1 Easy




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),. 9hich of the following is true of leadershipA

/. +t helps managers evaluate how well they themselves are performing.

B.+t revolves around encouraging all employees to perform at a high level to help

the organization achieve its vision and goals.C. Managers evaluate how well an organization has achieved its goals and take

corrective actions needed to improve performance.

6. +t revolves around regulation of organizational e#ciency and e$ectiveness.

>. Managers decide which goals to measure and then design control systems that

will provide the information necessary to assess performance.

Beadership revolves around encouraging all employees to perform at a high level to

help the organization achieve its vision and goals. /nother outcome of leadership is

a highly motivated and committed workforce.

AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium




)-. The task of managers to evaluate how well an organization has achieved its goals

and to take any corrective actions needed to maintain or improve performance is

?????????.

/. planning@. organizing

C. leading

6. sta#ng

E. controlling

+n controlling" the task of managers is to evaluate how well an organization has

achieved its goals and to take any corrective actions needed to maintain or

improve performance. The outcome of the control process is the a(ility to measure

performance accurately and regulate organizational e#ciency and e$ectiveness.


Blooms: Remember

Difculty: 1 Easy




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). 9hich of the following processes gives the managers the a(ility to measure

performance accurately and regulate organizational e#ciency and e$ectivenessA

A. Controlling

@. PlanningC. Organizing

6. Beading

>. Eta#ng





AACSB: Analytic


Blooms: Remember

Difculty: / -edium




*0. Mark" a manager at Matts Ehack" monitors the work performance of workers in his

department to determine if the =uality of their work is meeting the standards of the

company. Mark is engaging in which of the following managerial functionsA

/. Planning

@. Eta#ngC. Organizing

6. Beading

E. Controlling





AACSB: Analytic


Blooms: A''ly

Difculty: / -edium




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*1. Eusan" the C>O of Hnited Iroup Btd." reviews the performance of her company in

the past months Pro3t J Boss Etatement to determine if the company is on pace to

meet the planned sales and pro3ta(ility goals. Eusan is engaged in which of the

following managerial functionsA

/. Planning

@. Organizing

C. Eta#ng

D. Controlling

>. Beading





AACSB: Analytic


Blooms: A''ly

Difculty: / -edium




*!. irst2line managersD

/. increase e#ciency (y helping middle2level managers (etter use resources to

reduce manufacturing costs or improve customer service.B. are also known as supervisors.

C. are at the top of the managerial hierarchy.

6. work in one single department of an organization.

>. are responsi(le for 3nding the (est way to organize human and other resources

to achieve organizational goals.

/t the (ase of the managerial hierarchy are 3rst2line managers" often called

supervisors. They are responsi(le for daily supervision of the nonmanagerial

employees who perform the speci3c activities necessary to produce goods and

services.

AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium




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*%. 9hich of the following is true of middle managersA

/. They decide how the di$erent departments should interact.


perform the speci3c activities necessary to produce goods and services.C.They develop and 3ne2tune skills and know2how that allow the organization to

(e e#cient and e$ective.

6. They are responsi(le for the performance of all departments.

>. They esta(lish organizational goals.

To increase e$ectiveness" middle managers evaluate whether the organizations

goals are appropriate and suggest to top managers how goals should (e changed.

/ ma8or part of the middle managers 8o( is developing and 3ne2tuning skills and

know2how" such as manufacturing or marketing e&pertise" that allow the

organization to (e e#cient and e$ective.

AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium




*'. 9hich of the following is true of top managersA

/. They are responsi(le for 3nding the (est way to organize human and other

resources to achieve organizational goals.@. They are responsi(le for daily supervision of the nonmanagerial employees who

perform the speci3c activities necessary to produce goods and services.

C. They 3nd ways to help 3rst2line managers and nonmanagerial employees (etter

use resources to reduce manufacturing costs or improve customer service.

D. They have cross2departmental responsi(ility.

>. They are responsi(le for a single department.

+n contrast to middle managers" top managers are responsi(le for the performance

of all departments. They have cross2departmental responsi(ility. Top managers

esta(lish organizational goals" such as which goods and services the company

should produceL they decide how the di$erent departments should interactL and

they monitor how well middle managers in each department use resources toachieve goals.

AACSB: Analytic


Blooms: =nderstand

Difculty: / -edium




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*). 9ho amongst the following is most likely to (e a part of the top management

teamA

/. Eupervisor

@. 5ead nurse

C. Chief mechanic

6. 6ivisional manager

E. Chief e&ecutive o#cer


manager" the one all other top managers report to. / central concern of the C>O is

the creation of a smoothly functioning top management team" a group composed

of the C>O" the chief operating o#cer :COO;" and the vice presidents most

responsi(le for achieving organizational goals.

AACSB: Analytic


Blooms: A''ly

Difculty: / -edium




**. @eing a part of top management at a large fast food chain" 6onald is most likely to

spend more of his time inD

A. planning and organizing resources.

@. planning and controlling nonmanagerial employees.

C. planning and leading 3rst2line managers.

6. organizing resources and controlling nonmanagerial employees.

>. organizing resources and leading 3rst2line managers.

The amount of time managers spend planning and organizing resources to

maintain and improve organizational performance increases as they ascend the

hierarchy. Top managers devote most of their time to planning and organizing" the

tasks so crucial to determining an organizations long2term performance. The lower

that managers positions are in the hierarchy" the more time the managers spend

leading and controlling 3rst2line managers or nonmanagerial employees.

AACSB: Analytic


Blooms: A''ly

Difculty: / -edium





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*,. The a(ility to analyze and diagnose a situation and to distinguish (etween cause

and e$ect demonstrates a managers ???????????? skills.

/. interpersonalB. conceptual

C. human

6. technical

>. communication

Conceptual skills are demonstrated in the general a(ility to analyze and diagnose a

situation and to distinguish (etween cause and e$ect. Top managers re=uire the

(est conceptual skills (ecause their primary responsi(ilities are planning and

organizing.


Blooms: Remember

Difculty: 1 Easy




*-. The general a(ility to understand" alter" lead" and control the (ehavior of

individuals and groups are ?????????????? skills.

/. analytic

@. cognitiveC. human

6. technical

>. conceptual

5uman skills include the general a(ility to understand" alter" lead" and control the

(ehavior of other individuals and groups. The a(ility to communicate" to

coordinate" and to motivate people" and to mold individuals into a cohesive team

distinguishes e$ective from ine$ective managers.

AACSB: Analytic

Accessibility: Keyboard NavigationBlooms: Remember

Difculty: 1 Easy




chapter 1 man 3353

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