Chapter 7 Management Leadership And The Internal + Test Bank - Contemporary Business 18e | Test Bank by Louis E. Boone by Louis E. Boone. DOCX document preview.
Package Title: Chapter 7, Testbank
Course Title: Boone, 18e
Chapter Number: 7
Question type: Multiple Choice
1) _____ is the process of achieving organizational objectives through people and other resources.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
2) _____ includes positions such as CEO and CFO; devotes most of its time to developing long-range plans.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
3) _____ include the ability to communicate with, motivate, and lead employees to complete assigned activities.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Communication
Bloomcode: Knowledge
4) The _____ function evaluates an organization’s performance against its objectives.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
5) _____ is the perception of marketplace needs and the ways a company can satisfy them.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.2
Section Reference 1: Explain the role of setting a vision and ethical standards for a company.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
6) _____ allows a company to resume operations quickly and smoothly after a crisis while openly communicating with the public about what happened.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
7) A(n) _____ is a written explanation of an organization’s business intentions and aims.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
8) A(n) _____ systematically evaluates a company’s strengths, weaknesses, opportunities, and threats.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
9) Determining the unique combination of a company’s abilities and approaches is called _____.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
10) A(n) _____ involves a complex and unique problem or opportunity with important consequences for an organization.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
11) People who make decisions on their own without consulting their subordinates are _____.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
12) _____ is the business concept in which employees share authority, responsibility, and decision making with their managers.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
13) An organization’s system of principles, beliefs, and values is called _____.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
14) A(n) _____ is a structured group of people working together to achieve common goals.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
15) _____ is the process of dividing work activities into units within an organization.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
16) The _____, or product management design, links employees from different parts of an organization to work together on specific projects.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
17) The managerial process of assigning work to subordinates is called _____.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
18) The number of employees a manager supervises is referred to as the _____.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
19) A company that emphasizes _____ locates decision making at lower levels.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
20) A _____ is a hierarchy of managers and workers which lets everyone know who is in charge.
a) corporate culture
b) Management
c) organization
d) Top management
e) Departmentalization
f) Vision
g) delegation
h) matrix structure
i) span of management
j) controlling
k) decentralization
l) chain of command
m) SWOT analysis
n) Contingency planning
o) nonprogrammed decision
p) autocratic leaders
q) Human skills
r) mission statement
s) competitive differentiation
t) Empowerment
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
Question Type: Essay
21) What are the differences among the three levels of management and their corresponding responsibilities?
Solution: A company’s management usually has three levels: top, middle, and supervisory. Top managers make decisions such as whether to introduce new products, purchase other companies, or enter new geographical markets. Middle management, the second tier in the management hierarchy, is responsible for developing detailed plans and procedures to implement the firm’s strategic plans. Supervisors, or first-line managers, are responsible for assigning nonmanagerial people to specific jobs and evaluating their performance.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
22) Describe the three basic skills necessary for managerial success. Provide an example for each.
Solution: The three basic skills are human skills, technical skills, and conceptual skills. Human skills are interpersonal skills that enable managers to work effectively with and through people.
Human skills include the ability to communicate, build rapport, collaborate, motivate, and lead employees to meet organizational goals through individual and team assignments. Human skills include effective communication using email, text messaging, voicemail, and videoconferencing. Technical skills are the manager’s ability to understand and use the techniques, knowledge, and tools and equipment of a specific discipline or department. An example of a technical skill is a factory manager’s ability to effectively run each machine in his or her department in order to help employees. Conceptual skills determine a manager’s ability to see an organization as a unified whole and to understand how each part of the overall organization interacts with other parts. An example of a conceptual skill is a manager’s ability to sit down and plan an achievable goal for his or her company’s monthly sales.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Communication
Bloomcode: Comprehension
23) Identify and briefly describe each of the management functions.
Solution: The four management functions are planning, organizing, directing, and controlling. Planning is the process of anticipating future events and conditions and determining courses of action for achieving organizational objectives. Organizing is the process of blending human and material resources through a formal structure of tasks and authority; arranging work, dividing tasks among employees, and coordinating them to ensure implementation of plans and accomplishment of objectives. Directing involves guiding and motivating employees to accomplish organizational objectives. The controlling function evaluates an organization’s performance against its objectives.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
24) Describe the role of vision and ethical standards in business success.
Solution: Vision is perception of marketplace needs and the ways a company can satisfy them. Vision serves as the target for a company’s actions, helping direct the company toward opportunities and differentiating it from its competitors. Setting high ethical standards helps a firm survive and be successful over the long term. The ethical tone that a top management team establishes can reap monetary as well as nonmonetary rewards. Setting a high ethical standard does not merely discourage employees from wrongdoing, but it motivates and inspires them to achieve goals they never thought possible. Such satisfaction creates a more productive, stable workforce—one that can create a long-term competitive advantage for the organization.
Difficulty: Medium
Learning Objective 1: 7.2
Section Reference 1: Explain the role of setting a vision and ethical standards for a company.
Standard 1: AACSB || Ethics
Bloomcode: Comprehension
25) Differentiate strategic planning from tactical planning. Give an example of each type of planning.
Solution: Strategic planning is the most far-reaching level of planning. It is the process of determining the primary objectives of an organization and then acting and allocating resources to achieve those objectives. As customers use multiple channels for retail shopping, Home Depot has implemented a strategy called “interconnected retailing.” The company wants to create a seamless experience for customers—whether they browse online, open promotional e-mails on their smart phones, or visit brick-and-mortar locations in person. Tactical planning, by contrast, involves implementing the activities specified by strategic plans. Tactical plans guide the current and near-term activities required to implement overall strategies. As part of Home Depot’s strategy to create a multi-channel customer shopping experience, the company has introduced an optimized mobile redesign, which integrates location-based technology in smart phones.
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
26) Define operational planning. How is this different from strategic planning? Provide an example.
Solution: Operational planning creates the detailed standards that guide implementation of tactical plans. This activity involves choosing specific work targets and assigning employees and teams to carry out plans. Unlike strategic planning which focuses on the organization as a whole, operational planning deals with developing and implementing tactics in specific functional areas. For example, if customers make purchases online and pick up or return merchandise to the retailer, the company will have to plan for additional staffing in shipping and have separate customer service teams and different delivery strategies.
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
27) Define mission statement. What are the qualities of an effective mission statement? Provide an example.
Solution: The first step in strategic planning is to translate a company’s vision into a mission statement. A mission statement is a written explanation of an organization’s business intentions and aims. It is an enduring statement of a company’s purpose, possibly highlighting the scope of operations, the market it seeks to serve, and the ways it will attempt to set itself apart from competitors. A mission statement guides the actions of employees and publicizes the company’s reasons for existence. A good mission statement states the company’s purpose for being in business and its overall goal. An example is Starbucks’ mission statement: Starbucks: “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.”
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
28) What is SWOT analysis? Explain its purpose in the strategic planning process.
Solution: SWOT is an acronym for strengths, weaknesses, opportunities, and threats. By systematically evaluating all four of these factors, a company can then develop the best strategies for gaining a competitive advantage. Strengths and weaknesses can be evaluated by examining each functional area of a company including finance, marketing, information technology, and human resources. Opportunities include new technologies, strategic alliances with vendors, new markets, and extension of existing products. Threats include changing consumer tastes, increased competition, sole sourcing, and new government regulations. A SWOT analysis isn’t carved in stone. Strengths and weaknesses, like opportunities and threats, may shift over time. A strength may eventually become a weakness, and a threat may turn into an opportunity. But the analysis gives managers a place to start.
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
29) Describe the final step in the strategic planning process. Provide an example.
Solution: The final step in the strategic planning process is to monitor and adapt plans when the actual performance fails to meet goals. Monitoring involves securing feedback about performance. Managers might compare actual sales against forecasts; compile information from surveys; listen to customer feedback; interview employees who are involved; and review reports prepared by production, finance, marketing, or other company units. If a retailer observes customers buying more jeans when they are displayed near the front door, likely the display area will stay near the door—and perhaps be enlarged. Ongoing use of such tools as SWOT analysis and forecasting can help managers adapt their objectives and functional plans as changes occur.
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
30) Identify an example of a programmed decision and a nonprogrammed decision.
Solution: Examples of programmed decisions include reordering office supplies, renewing a lease, and referring to an established discount for bulk orders. Examples of nonprogrammed decisions include entering a new market, deleting a product from the line, or developing a new product.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
31) List the steps involved in the decision-making process.
Solution: The decision-making process begins with recognizing a problem or opportunity, developing alternative courses of action, evaluating alternatives, selecting and implementing the chosen alternatives, and conducting follow-ups to determine the effectiveness of the decision.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
32) What is leadership and power? From which sources do managers generate their power?
Solution: Leadership involves the use of influence or power. This influence may come from one or more sources. One source of power is the leader’s position in a company. A national sales manager has the authority to direct the activities of the sales force. Another source of power is a leader’s expertise and experience. A first-line supervisor with expert machinist skills will most likely be respected by employees in the machining department. Some leaders derive power from their personalities. Employees may admire a leader because they recognize an exceptionally kind and fair, humorous, energetic, or enthusiastic person.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
33) Distinguish among autocratic, democratic, and free-rein leadership.
Solution: Autocratic leaders make decisions on their own without consulting employees. They reach decisions, communicate them to subordinates, and expect automatic implementation. Democratic leadership includes subordinates in the decision-making process. Democratic leaders delegate assignments, ask employees for suggestions, and encourage participation. Free-rein leaders believe in minimal supervision. They allow subordinates to make most of their own decisions. A free-rein leader communicates with employees frequently, as the situation warrants.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
34) Define corporate culture. Who is responsible for defining an organization’s corporate culture?
Solution: An organization’s corporate culture is its system of principles, beliefs, and values. The leadership style of its managers, the way it communicates, and the overall work environment influence a company’s corporate culture. Corporate culture is typically shaped by the leaders who founded and developed the company and by those who have succeeded them.
Difficulty: Easy
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
35) Describe what is meant by span of management. Discuss the trend in determining span of management.
Solution: The span of management, or span of control, is the number of employees a manager supervises. These employees are often referred to as direct reports. In recent years, a growing trend has brought wider spans of control, as companies have reduced their layers of management in order to flatten their organizational structures, in the process increasing the decision-making responsibility they give employees.
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
36) Compare the four types of organizational structures.
Solution: A line organization establishes a direct flow of authority from the chief executive to employees. The line organization defines a simple, clear chain of command —a hierarchy of managers and workers. In a small organization such as a local hair salon or a dentist’s office, a line organization is probably the most efficient way to run the business. Conversely, a line-and-staff organization combines the direct flow of authority of a line organization with staff departments that support the line departments. The third organizational structure is the committee organization, which places authority in the hands of a group of individuals rather than a single manager. This model typically appears as part of a regular line-and-staff structure. Finally, the matrix structure links employees from different parts of the organization to work together on specific projects.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
Question type: Multiple Choice
37) _____ are most likely to make decisions regarding the purchase of other companies.
a) General managers
b) First-line managers
c) Supervisors
d) Top managers
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
38) _____ is the process of achieving organizational objectives through people and other resources.
a) Management
b) Mission statement
c) Planning
d) Delegation
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
39) Naina’s job duties include such tasks as deciding whether or not to introduce a new product or enter a new foreign market. Naina is most likely a member of _____ management.
a) middle
b) top
c) supervisory
d) first-line
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
40) Yan works directly with her nonmanagerial subordinates. She allocates work to her team members and sets deadlines and targets for each member. She also conducts performance appraisal for her team members. Yan is most likely to belong to
a) middle management.
b) strategic management.
c) top management.
d) first-line management.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
41) Alia is a manager who spends most of her time in day-to-day decisions assigning nonmanagerial employees to specific jobs. Alia is considered a _____ manager.
a) top
b) technical
c) supervisory
d) mid-level
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
42) Most top executives started out as
a) technical experts.
b) chartered accountants.
c) human relations executives.
d) marketing professionals.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Application
43) Malik is a manager at Boardwalk Inc. He develops plans for the company based on its objectives and proceeds to organize by dividing tasks among employees. In the context of the four basic managerial functions, which of the following should be Malik’s immediate step?
a) Translating the company’s vision into a mission statement
b) Guiding and motivating employees to accomplish the company’s objectives
c) Guiding the near-term activities required to implement overall strategies
d) Comparing the company’s actual performance with the established standards
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
44) Which of the following has Keller Williams employed to increase its return on investment?
a) It has increased its consumer engagement.
b) It has recalled most of its products.
c) It has made employee training a strategic priority.
d) It has increased its product diversity.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Communication
Bloomcode: Comprehension
45) Which skills are the manager’s ability to understand and use the techniques, knowledge, tools, and equipment of a specific discipline or department?
a) Human
b) Conceptual
c) Intuitive
d) Technical
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
46) When Priyanka instructs new employees on handling customer complaints, she motivates them to respond with patience and a positive attitude. Priyanka has effective _____ skills.
a) human
b) conceptual
c) intuitive
d) visionary
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Communication
Bloomcode: Application
47) Which skills include the ability to communicate, build rapport, collaborate, motivate, and lead employees to meet organizational goals through individual and team assignments?
a) Human
b) Conceptual
c) Intuitive
d) Visionary
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
48) Raj works for an automotive company. He devises long-term plans, performs thorough analyses, and makes decisions for the company. Given the activities he performs, Raj is most likely to be a _____.
a) supervisory manager
b) middle manager
c) low-level manager
d) top-level manager
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
49) Conceptual skills are especially important for _____, who must develop long-range plans for the future direction of their organizations.
a) first-line managers
b) middle managers
c) top-level managers
d) supervisory managers
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
50) Sona, president of Movesoft Graphics, is highly respected for her ability to analyze and interpret the trends in the rapidly changing graphics industry. Sona has effective _____ skills.
a) human relations
b) technical
c) conceptual
d) supervisory
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
51) Rafael is working on a project where he needs to anticipate future events and conditions, as well as avoid costly mistakes. Rafael is engaged in the _____ managerial function.
a) controlling
b) planning
c) organizing
d) directing
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
52) Which of these describes the process of blending human and material resources through a formal structure of tasks and authority; arranging work, dividing tasks among employees, and coordinating them to ensure implementation of plans and accomplishment of objectives?
a) Organizing
b) Controlling
c) Directing
d) Planning
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
53) Jamila classifies and divides work into manageable units by determining the specific tasks necessary to introduce a new product. Jamila is involved in the _____ managerial function.
a) organizing
b) controlling
c) directing
d) planning
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
54) Alberto is responsible for guiding and motivating ten other employees to accomplish various organizational objectives. Alberto handles the _____ managerial function.
a) planning
b) organizing
c) directing
d) controlling
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
55) Which of these evaluates an organization’s performance against its objectives?
a) Directing
b) Controlling
c) Organizing
d) Planning
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
56) Bernardo’s job is to assess the success of the planning function and provide feedback for future rounds of planning. Bernardo is engaged in the ______ managerial function.
a) directing
b) controlling
c) organizing
d) launching
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
57) _______ is the ability to perceive marketplace needs and what an organization must do to satisfy them.
a) Organizing
b) Strategic planning
c) Vision
d) Operational planning
Difficulty: Medium
Learning Objective 1: 7.2
Section Reference 1: Explain the role of setting a vision and ethical standards for a company.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
58) Marina strongly believes that freshmen need credit counseling, so she begins a not-for-profit organization devoted to this need. Which of the following is depicted in this scenario?
a) Monitoring strategic plans
b) Performing the controlling function
c) Setting a vision
d) Executing organizational objectives
Difficulty: Medium
Learning Objective 1: 7.2
Section Reference 1: Explain the role of setting a vision and ethical standards for a company.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
59) A company’s vision should be _____ and _____.
a) rigid; focused
b) rigid; broad
c) focused; flexible
d) flexible; broad
Difficulty: Easy
Learning Objective 1: 7.2
Section Reference 1: Explain the role of setting a vision and ethical standards for a company.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
60) ______ determines the primary objectives of an organization and then acts and allocates resources to achieve those objectives?
a) Tactical planning
b) Strategic planning
c) Contingency planning
d) Operational planning
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
61) A petroleum refinery stockpiles crude oil so that it can easily switch between producing home heating oil and gasoline, depending on relative demand. This is an example of _____ planning.
a) contingency
b) incident
c) strategic
d) operational
Difficulty: Hard
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
62) Whytech Inc. is an online shopping portal. Which of the following is most likely to be included in the company’s strategic planning?
a) Fixing tight deadlines for tasks to be completed by employees
b) Openly communicating with the customers in the event of delayed delivery of products
c) Creating a mobile application to ease the customers’ shopping experience
d) Offering incentives and additional benefits to motivate employees
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
63) Which planning involves implementing the activities specified by strategic plans?
a) Incident
b) Tactical
c) Exigency
d) Contingency
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
64) Which planning guides the current and near-term activities required to implement overall strategies?
a) Contingency
b) Tactical
c) Strategic
d) Operational
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
65) Chang, a manager at a home appliances store, plans schedules and sets targets for his subordinates to ensure that they effectively achieve all the organizational goals. He also plans the recruitment of additional staff for delivery and customer service to improve the overall shopping experience. Chang is involved in _____ planning.
a) contingency
b) strategic
c) operational
d) exigency
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
66) Aisha reviews the applications received for a new position in finance. This is an example of _____ planning.
a) operational
b) contingency
c) tactical
d) strategic
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
67) Ehshan sets the deadlines for an upcoming project. This depicts _____ planning.
a) operational
b) tactical
c) strategic
d) contingency
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
68) Kamal, a manager, sets up delivery schedules for the logistic team for the orders received online, as part of their new e-Commerce strategies. In this scenario, Kamal is most likely to be involved in _____ planning.
a) incident
b) tactical
c) operational
d) contingency
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
69) A logistics company began moving trucks and supplies into position nearly a week before a hurricane hit the city, as specified in the company’s _____ plan.
a) tactical
b) strategic
c) operational
d) contingency
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
70) Central Railway has plans in place to reroute trains in the event that floods or other natural disasters close some of the railroad’s tracks. This is an example of _____ planning.
a) contingency
b) tactical
c) strategic
d) operational
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
71) Homefit International, a home furnishing store, issued a recall notice for a defective appliance. Before the notice was publicly issued, the company had assembled a crisis management team to enact a(n) _____ plan.
a) tactical
b) operational
c) contingency
d) strategic
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
72) Tactical planning is primarily the responsibility of _____.
a) middle managers
b) supervisory managers
c) first-line managers
d) top management executives
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
73) Daily and weekly plans, rules, and procedures for each department are examples of _____ planning.
a) tactical
b) strategic
c) operational
d) contingency
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
74) The first step in the strategic planning process is
a) define an organization’s mission.
b) monitor and adapt plans.
c) assess the competitive position.
d) develop strategies for reaching objectives.
Difficulty: Easy
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
75) FlipTech Inc. is a cell phone service provider that offers 3G services. A new entrant in the market that offers 4G services is most likely to be a(n) _____ to FlipTech Inc.
a) weakness
b) strength
c) threat
d) opportunity
Difficulty: Easy
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
76) Diego is part of a strategic planning team. He has identified that his company is a low-cost producer in its industry. This should be listed on a SWOT analysis as a(n) _____.
a) threat
b) weakness
c) opportunity
d) strength
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
77) Vincent owns a bakery and is creating a SWOT analysis to see where he can make improvements and increase sales. All of the following are threats to the success of his company EXCEPT
a) economies of scale.
b) a downturn in the economy.
c) regulatory changes.
d) an enhanced market competition.
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
78) Remo is a member of his firm’s strategic planning team. He has identified several untapped markets that exist in other countries. In a SWOT analysis, his observation should be listed as a(n)
a) opportunity.
b) weakness.
c) strength.
d) threat.
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
79) Which of these set guideposts by which managers define an organization’s desired performance?
a) Mission statements
b) Standards
c) Opportunities
d) Objectives
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
80) How is a company’s objective different from its mission statement?
a) Unlike an objective, a mission statement is measurable.
b) Unlike a mission statement, an objective is concrete.
c) Unlike a mission statement, an objective is constant.
d) Unlike an objective, a mission statement includes strategies.
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Comprehension
81) Which statement is true of the implementation phase of strategic planning process?
a) Often, it is the middle managers or supervisors who actually implement a strategy.
b) It is the second phase of the strategic planning process.
c) It involves securing feedback about performance.
d) Often, a firm attempts to define the major opportunities and threats it is likely to face in this phase.
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
82) In the context of a company’s strategic planning process, which of the following steps should be performed immediately after the company’s competitive position has been determined?
a) Defining the company’s mission
b) Creating strategies for competitive differentiation
c) Setting objectives for the company
d) Monitoring and adapting strategic plans
Difficulty: Easy
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Knowledge
83) Decisions involving simple, common, frequently occurring problems for which solutions have already been determined are _____ decisions.
a) nonprogrammed
b) programmed
c) creative
d) strategic
Difficulty: Easy
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
84) Jordan is the manager of a local electronics store. He reorders products from a local supplier once every three months. This is an example of
a) a programmed decision.
b) a nonprogrammed decision.
c) span of management.
d) span of control.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
85) Which of the following is a difference between programmed and nonprogrammed decisions?
a) Unlike programmed decisions, nonprogrammed decisions involve routine problems.
b) Unlike nonprogrammed decisions, programmed decisions involve complex problems.
c) Unlike programmed decisions, nonprogrammed decisions involve unique problems.
d) Unlike nonprogrammed decisions, programmed decisions involve predetermined procedures.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
86) Wolde Corp. has established a discount schedule for large-volume clients. This _____ will allow managers to devote more time to complex issues.
a) programmed decision
b) contingency decision
c) nonprogrammed decision
d) emergency decision
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
87) A fast food joint has decided to add a pork sandwich to its menu. This is an example of a(n)
a) contingency decision.
b) emergency plan.
c) nonprogrammed decision.
d) programmed decision.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
88) Dominic is the product manager of a new company that makes hand-held computers. He is trying to decide between two operating systems for the product. Dominic is
a) creating a vision.
b) making a nonprogrammed decision.
c) solving a recurring problem.
d) taking a programmed decision.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
89) The first step in the decision-making process is to
a) develop alternative courses of action.
b) evaluate alternatives.
c) recognize a problem or opportunity.
d) select and implement the chosen alternative.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
90) Once a manager has determined the problem or opportunity, the next step in the decision-making process is to
a) create a contingency plan.
b) develop possible courses of action.
c) identify the threats.
d) recognize the strengths.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
91) Wagner is faced with making a decision about selecting a local supplier. He has researched the advantages and disadvantages of three local suppliers. What should Wagner do next?
a) Recognize the problems in choosing a supplier.
b) Follow up on the effectiveness of his decision.
c) Select and approach one of the suppliers.
d) Delay making the decision.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
92) The quality control team at an electronics manufacturing company selects and implements a strategy to reduce product defects after evaluating the possible alternatives. What is the next step it should take in the decision-making process?
a) Assess the outcome of the decision.
b) Develop a potential course of action.
c) Recognize the opportunity.
d) Define the problem.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
93) Which of these is the ability to direct or inspire people to attain certain goals?
a) Flexibility
b) Planning
c) Empowerment
d) Leadership
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
94) Which of the following illustrates a quality of a great leader?
a) Jonathan displays a rigid style of work.
b) Cynthia refrains from using her influence to attain new clients for her company.
c) Rafael empathizes with his employees.
d) Sarah refrains from using her power to direct the activities of her employees.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
95) Which of these is true of autocratic leaders?
a) They involve subordinates in critical decision-making processes.
b) They empower employees.
c) They believe in minimal supervision.
d) They make decisions on their own, often without consulting others.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
96) Which of the following is true of autocratic leadership?
a) It is centered on the boss.
b) It encourages two-way communication.
c) It allows subordinates to make most of their own decisions.
d) It is based on the concept of employee empowerment.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
97) Democratic leaders
a) are always the most effective leaders.
b) let people know only what they need to know to do their jobs.
c) involve their subordinates in the decision-making process.
d) leave all decisions to their subordinates.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
98) ______ leadership style would allow sales personnel to participate in setting sales quotas along with the managers.
a) Free-rein
b) Judgmental
c) Democratic
d) Autocratic
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
99) Markell believes in empowering the employees in her department. Markell is most likely to be a(n) _____ leader.
a) task-oriented
b) independent
c) democratic
d) autocratic
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
100) Wowforce Corp. has a policy of allowing employees at its hotels to immediately respond to customers’ problems without having to obtain prior approval from senior managers. This type of leadership policy is best described as
a) free-rein leadership.
b) dogmatic leadership.
c) autocratic leadership.
d) dictatorial leadership.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
101) Dominique, the marketing manager of TI-Pro, allows her subordinates to make most of the decisions in their department on their own. Dominique’s leadership style can best be described as
a) free-rein.
b) autocratic.
c) democratic.
d) persuasive.
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
102) Who among the following is most likely to have the free-reign style of leadership?
a) Gia makes decisions with little or no consultation from her employees.
b) Aaron encourages employees’ participation in decision making.
c) Syed expects his employees to make their own decisions.
d) Nazneen shares authority and responsibility with her employees.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
103) Which of the following statements is true of leadership styles?
a) A democratic style of leadership is the best form of leadership.
b) No single leadership style is best for every firm in every situation.
c) The best leadership style is dependent on employee feedback.
d) A free-rein style of leadership is the most effective form of leadership.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
104) JIT Corp. develops software tools for banking operations. One of the company’s beliefs is that creativity is the most important factor in the success of an organization. Hence, apart from the time allotted to complete the regular revenue generating tasks, the company also allots a separate time period for its employees to work on their own ideas. In this scenario, JIT Corp. is trying to integrate creativity into its
a) organizational policy.
b) corporate culture.
c) mission statement.
d) enterprise architecture.
Difficulty: Hard
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Analytic
Bloomcode: Application
105) Which of the following constitutes corporate culture?
a) The revenue generated by an organization
b) The way an organization communicates
c) The vision of an organization
d) The contingency plan of an organization
Difficulty: Medium
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
106) Which of the following is true of an organization’s corporate culture?
a) A flexible corporate culture allows the organization to respond to shifts in technology.
b) A corporate culture is framed and imposed on employees by the supervisory management.
c) A corporate culture constitutes the vison and mission of an organization.
d) A rigid corporate culture helps accommodate more customers and employees.
Difficulty: Medium
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
107) ______ is the first step in the organizing process.
a) Assigning work to specific employees
b) Grouping work activities into a logical structure
c) Coordinating the work of different groups and employees within a firm
d) Determining the specific activities needed to implement plans
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
108) The last step in the organizing process is
a) coordinating the activities of different groups and individuals.
b) assigning activities to specific groups and people and allocate the necessary resources
c) evaluating the results of the process
d) grouping work activities into a logical structure
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
109) Shin is the owner-manager of a 24-hour convenience store. When he first opened the business, he employed only four people, and it was easy to manage the store through informal means. The store experienced rapid growth and is now a six-unit chain. Shin is now trying to manage 30 employees. As part of the organizing process, he first determines the actions to be taken to achieve his organizational goals. What is the next step he should take?
a) He should delegate specific tasks to his employees.
b) He should evaluate the results of the implemented actions.
c) He should group the actions into a logical structure.
d) He should coordinate the actions to be taken between different groups of employees in his organization.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
110) Which of these can help clarify the structure of a company?
a) Mission statement
b) Operational plan
c) Contingency plan
d) Organization chart
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
111) What happens to a company’s organizational structure when the company grows?
a) It increases in complexity.
b) It decreases in size.
c) It becomes easier to understand.
d) It becomes more generic and flexible.
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
112) In which of the following arrangements do employees specialize in certain jobs?
a) Empowerment
b) Decentralization
c) Centralization
d) Departmentalization
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
113) Which departmentalization organizes work units based on the goods and services a company offers?
a) Product
b) Geographical
c) Functional
d) Process
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
114) TechServe Corp., a computer hardware firm, is subdivided by its different lines (such as laptops, desktops, mobile devices, printers, and servers). TechServe is departmentalized by
a) process.
b) function.
c) product.
d) customer.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
115) Arif’s firm is divided into work units representing human resources, marketing, production, and finance. This is known as _____ departmentalization.
a) product
b) geographical
c) functional
d) process
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
116) An advertising agency creates departments for creative personnel, media buyers, and account executives. This is an example of _____ departmentalization.
a) process
b) geographical
c) product
d) functional
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
117) First-line managers most likely have
a) a more narrow span of control than top-level managers.
b) a wider span of control than top-level managers.
c) no span of control.
d) the same span of control as that of top-level managers.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
118) A company that emphasizes centralization
a) retains decision making at the top of the management hierarchy.
b) locates decision making at the lower levels of the management hierarchy.
c) always uses functional departmentalization.
d) always uses process departmentalization.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
119) ABC Investments is a company that is based on a direct flow of authority from the top executive to subordinates. This is known as a _____ organization.
a) matrix
b) committee
c) line
d) line-and-staff
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Application
120) Which of the following is true of a line organization?
a) It is effective in a crisis situation.
b) It is a complex organization structure.
c) It places authority jointly in the hands of a group of individuals.
d) It links employees from different parts of the organization to work together.
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
121) Which of the following forms of organizations is common in midsize and large firms?
a) A committee organization
b) A line organization
c) A line-and-staff organization
d) A matrix organization
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
122) We-R-Dents is a dentist’s office with three employees: a receptionist, a housekeeper, and a manager. The manager is responsible for all activities in the dentist’s office. In the context of organization structure, We-R-Dents is a
a) matrix organization.
b) committee organization.
c) line organization.
d) divisional organization.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Application
123) In a water purification plant, Hunter is the plant manager, Nicolao is an account manager, Marco is a supervisor, Vincent is a human resource manager, and Sunil is a technical manager in the engineering department. In this scenario, a staff relationship exists between
a) Hunter and Marco.
b) Sunil and Marco.
c) Nicolao and Sunil.
d) Hunter and Nicolao.
Difficulty: Hard
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Application
124) A local bookstore uses an organizational structure in which authority and responsibility are jointly held by the entire group rather than by a single manager. This company is using a _____ organizational structure.
a) line-and-staff
b) committee
c) matrix
d) functional
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
125) Delight Corp. is in the process of creating a new product. The CEO places authority and responsibility jointly in the hands of the marketing manager, the production manager, and the financial manager. They tend to make decisions based on consensus. What type organizational structure is evident in this scenario?
a) Line
b) Committee
c) Matrix
d) Staff
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
126) The matrix design in organizational structures is also frequently referred to as the _____ design.
a) line management
b) chain of command
c) product management
d) team
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
127) Juan runs a multi-national firm which manufactures hi-tech medical equipment. In addition to its normal product lines, the company occasionally produces special products that require the cooperation of a variety of personnel from many departments. What form of organizational structure is best suited for this type of organization?
a) A matrix organizational structure
b) An informal organizational structure
c) A functional organizational structure
d) A line organizational structure
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
Question type: True/False
128) Delegation is the process of achieving organizational objectives through people and other resources.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
129) The principles of management apply to both not-for-profit organizations as well as profit-seeking companies.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
130) In the management hierarchy, supervisors are near the top.
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
131) Technical skills are especially important for first-line managers and become less important at higher levels of the management hierarchy.
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Comprehension
132) To implement the firm’s strategic plans, middle managers develop detailed plans and procedures.
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
133) Team leaders and section chiefs are typically part of middle management.
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
134) Top managers devote most of their time to developing long-range plans for their organizations.
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
135) Given that supervisors develop long-range plans for the future direction of their organizations, conceptual skills are especially important for them.
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
136) Organizing is the process of anticipating future events and conditions and determining courses of actions for achieving organizational objectives.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
137) The basic purpose of directing is to evaluate the success of the planning function.
Difficulty: Medium
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
138) Organizing involves classifying and dividing work into manageable units with a logical structure.
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
139) The management function of directing might include training and retraining employees, establishing work schedules, and monitoring progress.
Difficulty: Easy
Learning Objective 1: 7.1
Section Reference 1: Define management.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
140) Vision serves as the target for a company’s actions, helping direct the company toward opportunities and differentiating it from its competitors.
Difficulty: Medium
Learning Objective 1: 7.2
Section Reference 1: Explain the role of setting a vision and ethical standards for a company.
Standard 1: AACSB || Ethics
Bloomcode: Knowledge
141) Unfortunately, the ethical tone that a top management team establishes can reap only nonmonetary rewards.
Difficulty: Easy
Learning Objective 1: 7.2
Section Reference 1: Discuss the role of setting a vision and ethical standards for the firm.
Standard 1: AACSB || Ethics
Bloomcode: Knowledge
142) Ethical decisions, in practice, are clear-cut and easy to make.
Difficulty: Medium
Learning Objective 1: 7.2
Section Reference 1: Explain the role of setting a vision and ethical standards for a company.
Standard 1: AACSB || Ethics
Bloomcode: Knowledge
143) Taking an ethical stand always ensures that a company reaps profit.
Difficulty: Medium
Learning Objective 1: 7.2
Section Reference 1: Explain the role of setting a vision and ethical standards for a company.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
144) Strategic planning entails developing and implementing tactics in specific functional areas.
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
145) Tactical planning guides the current and near-term activities required to implement company-wide strategies.
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
146) A computer repair store establishes a policy requiring that customer service representatives respond to e-mails within three business days. This policy is a result of the company’s operational planning.
Difficulty: Medium
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
147) CEOs spend most of their time on strategic planning.
Difficulty: Easy
Learning Objective 1: 7.3
Section Reference 1: Summarize the importance of planning.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
148) Before developing a mission statement, in the strategic planning process, a company must determine their current or potential position in the marketplace.
Difficulty: Easy
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
149) A SWOT analysis is set in stone and serves as a constant reminder of a company’s strengths and continuing threats.
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
150) Organizational objectives identify a company’s overall goals.
Difficulty: Medium
Learning Objective 1: 7.4
Section Reference 1: Describe the strategic planning process.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
151) An example of a nonprogrammed decision is reordering office supplies.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
152) When the manager of a local auto repair shop decided to expand into a neighboring town, she was making a programmed decision.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
153) When an organization develops and launches a new product, it is making a programmed decision.
Difficulty: Medium
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
154) The recognition of a problem or opportunity is the first step in the decision-making process.
Difficulty: Easy
Learning Objective 1: 7.5
Section Reference 1: Discuss managers as decision makers.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
155) Autocratic leadership includes subordinates in the decision-making process.
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
156) Democratic leaders give their subordinates the authority to make all decisions.
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
157) An important part of democratic leadership is empowerment.
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
158) Managers at Pinnacle Corp. encourage employees to make most of their own decisions. This is an example of free-rein leadership.
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
159) Free-rein leaders allow subordinates to make most of the decisions and communicate with employees frequently, as the situations warrants.
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
160) Since employees are empowered to make all decisions, free-rein leaders believe in minimal communication.
Difficulty: Easy
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
161) Nadia believes that closely supervising employees stifles their creativity, so she allows her employees to make most of their own decisions. Nadia is an example of a free-rein leader.
Difficulty: Medium
Learning Objective 1: 7.6
Section Reference 1: Evaluate managers as leaders.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
162) The corporate culture of an organization is typically shaped by employees rather than managers.
Difficulty: Easy
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
163) Fortunately, corporate cultures remain constant throughout the course of a company’s existence.
Difficulty: Easy
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
164) At a clothing store, new employees learn during their training that they are referred to as team members rather than workers, and that customers are called guests. This is an example of preserving corporate culture.
Difficulty: Easy
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Reflective Thinking
Bloomcode: Application
165) Corporate culture often changes to meet new demands in the business environment.
Difficulty: Medium
Learning Objective 1: 7.7
Section Reference 1: Discuss corporate culture.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
166) As a firm grows, its organizational structure will often become more complex.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
167) Not-for-profit organizations generally avoid organizing through formal structures.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
168) The process of dividing work into units within an organization is called departmentalization.
Difficulty: Easy
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
169) Functional departmentalization occurs when work is organized by the different types of goods and services a company offers.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
170) Companies organized around business functions such as finance, marketing, and production have process departmentalization.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
171) A single company will follow only one departmentalization scheme.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
172) In many cases, a trend toward decentralization has pushed decision making down to operating employees.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
173) In a line organization, the chain of command is complex.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
174) Line departments participate directly in decision making while staff departments provide technical support, in a line-and-staff organization.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
175) In a committee organization, the ultimate responsibility is still held by one individual.
Difficulty: Medium
Learning Objective 1: 7.8
Section Reference 1: Identify organizational structures.
Standard 1: AACSB || Analytic
Bloomcode: Knowledge
Document Information
Connected Book
Contemporary Business 18e | Test Bank by Louis E. Boone
By Louis E. Boone
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