Full Test Bank Management And Leadership Chapter 7

Understanding Business, 12e (Nickels)

Chapter 07 Management and Leadership

1) The main job of managers today is to watch over people to be sure they do what the manager asks of them.

2) The best way to get people to do what a manager wants is for the manager to reprimand those who don't do things correctly.

3) Managers in progressive firms of all kinds tend to be friendly, and treat employees as partners.

4) Managers must earn the trust of their employees.

5) A modern manager's main job is to issue orders, then follow up to make sure employees do as they were told.

6) Managers in progressive organizations tend to emphasize teamwork and cooperation rather than discipline and giving orders.

7) Despite all of the changes in the business environment, the basic way a manager performs his or her job has remained remarkably constant.

8) Given the lack of discipline and short attention spans of today's workers, modern managers must watch their workers closely, set strict rules, and vigorously enforce policies.

9) In most high-tech industries, the best way to respond quickly to rapid technological changes is to keep most authority and responsibility in the hands of a few key managers who provide precise, detailed directions to the workers.

10) Due to the fact that employees today often know much more about technology and the technical aspects of their jobs than their managers do, progressive managers emphasize teamwork and cooperation as a strategy for getting work done.

11) Alejandro is the general manager of a retail outlet in Arizona. By emphasizing teamwork and acting in a role of coach rather than boss, Alejandro is considered to be a modern manager.

12) Briana is an office manager and consistently has to tell her employees what to do, watch over their tasks, and reprimand those who don't listen to her orders. Briana is a modern manager.

13) Managers make decisions about how to use organizational resources to accomplish goals.

14) Financing is one of the four key functions of management.

15) The four key management functions are planning, organizing, leading, and controlling.

16) One trend of the leading management function is to empower employees, giving them as much freedom as possible to become self-directed and self-motivated.

17) Leading is the management function of designing the structure of the organization so that everyone can function together.

18) As a management function, the main focus of controlling is to keep complete and up-to-date records of the organization's financial transactions for tax and regulatory purposes.

19) The management function that involves guiding, training, and motivating others to work toward the achievement of an organization's goals is called leading.

20) In many smaller firms the manager's role is to direct the employees, telling them exactly what to do.

21) Planning is the function of management that includes anticipating future trends and determining the best strategies and tactics to achieve an organization's goals and objectives.

22) Planning is a key management function because other management functions depend on having a good plan.

23) Managers focus on making efficient use of their organization's human resources, but leave decisions about the efficient use of other resources such as buildings, machinery, and supplies to engineers and accountants.

24) Today's progressive organizations are designed around the needs of the customer. The idea is to organize systems to be responsive to customer needs.

25) Leighton has spent the last two hours going over customer surveys to see how well her company is achieving its goal of improving overall customer satisfaction. Leighton's efforts are an example of the controlling function of management.

26) Drake, a manager with The Teeny Truck Toy Company, just partook in a meeting that considered the future trends of the toy industry, and identified new challenges and opportunities for Teeny Truck Toys. Drake's participation in this meeting was part of the organizing function of management.

27) Brock is a no-nonsense boss. He believes the best way for an organization to achieve its goals is for workers to follow their boss's direct orders. Thus, he tells workers exactly what to do and how to do it. Brock's approach is an example of directing.

28) Eve is a manager of a medium-sized insurance company. She is currently involved in redesigning her department to ensure that employees and other resources can respond more quickly and efficiently to the needs of its customers. Eve's efforts are part of the organizing function of management.

29) Planning involves setting the organizational vision, goals, and objectives.

30) Progressive managers consider planning to be of little importance in today's rapidly changing business environment.

31) Goals tend to be broad and focus on the long term while objectives tend to be specific and more short-term in their focus.

32) A vision is a detailed set of specific steps that a firm must take to achieve its short-run objectives.

33) A statement about why an organization exists and what it is trying to achieve is called the organization's directive.

34) A vision is the overall explanation of why an organization exists and where it is trying to head.

35) A vision gives the organization a sense of purpose and a set of values that unite employees toward a common destiny.

36) A mission statement outlines the fundamental purposes of an organization.

37) Today, a mission statement should also address social responsibility.

38) Goals are broad, long-term accomplishments an organization wants to achieve.

39) While goals are measurable, objectives are not.

40) Goals are developed and agreed to by management so that the workers can follow them.

41) Objectives should be expressed as broad, general principles rather than as specific short-term results.

42) Continuous planning is not necessary, because plans that worked well in the past are likely to continue to work well in the future.

43) Planning is a continuous process.

44) The SWOT analysis helps firms identify competitive threats and market opportunities.

45) An analysis of the business environment helps managers identify threats and opportunities that face their firm.

46) Strategic planning is now much easier than it used to be because managers have access to very reliable computerized forecasting tools.

47) Tactical planning deals with setting long-range goals, while strategic planning develops the specific strategies needed to achieve the organization's operational goals.

48) Strategic planning determines the major goals of the organization.

49) Today's business environment changes so rapidly that strategic planning is becoming more difficult and subject to change.

50) Managers or teams of managers at the lower levels of an organization normally develop strategic plans, but top managers do most of the tactical planning.

51) Contingency planning involves developing alternative courses of action to be used if the primary plans do not achieve the desired results.

52) Operational planning looks at the organization as a whole, while strategic planning focuses on specific departmental actions.

53) One example of tactical planning is setting annual budgets and deciding on other details and activities necessary to meet the strategic objectives.

54) Many cities and businesses are now developing contingency plans to respond to potential terrorist attacks.

55) Instead of creating detailed strategic plans, the leaders of market-based companies (companies that respond quickly to environmental changes) set flexible directions so as to allow for change and seize opportunities when they come.

56) Decision making occurs in all management functions.

57) The first step in the rational decision-making model is to identify alternative solutions.

58) The last step in the rational decision-making model is to determine whether the decision was a good one and follow up.

59) One step in the rational decision-making model is to develop alternatives.

60) Brainstorming is coming up with as many solutions as possible in a short period of time with a focus toward not censoring anyone's ideas.

61) Problem solving is more formal than using the rational decision-making model.

62) PMI is a problem-solving technique that involves listing pluses, minuses, and implications.

63) A mission statement should provide a detailed explanation of how a company will achieve its objectives.

64) The SWOT analysis focuses only on the internal activities of the firm, while a PERT analysis is used to review the external environment in which the firm operates.

65) Tactical planning involves making decisions about which customers to serve, what products or services to sell, and the geographic areas in which the firm will compete.

66) Contingency planning is most important in markets where conditions are relatively stable and market growth is predictable.

67) In order to ensure effective implementation, managers should make only one set of plans and carefully follow them to ensure that the organization's objectives are achieved.

68) Top managers at Today's Finds department store found their employees do not really share a common sense of purpose nor do they have a common set of values. This suggests that top management has not provided a clear vision for the firm.

69) Susan is part of the top management team at Nimbus Rain Gear, a company that produces umbrellas, raincoats, hats, and all-weather shoes. As a member of top management, Susan is more likely to be involved in strategic planning than in tactical planning.

70) Sierra is a manager at a nationwide retail chain. Each morning she determines the order in which store projects are performed; she sets work schedules for employees and standards that must be met. These activities suggest that Sierra is involved in operational planning.

71) Margot needed to solve a problem fast! She called together her department team and asked them to list as many possible solutions as they could come up with in a short period of time. During the process she encouraged responses and avoided censoring what her workers said. Margot is utilizing a problem-solving technique known as brainstorming.

72) After management has created a plan of action, the focus turns to the controlling function to recheck and often redo the plan.

73) Organizing involves allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives.

74) The visual illustration of the relationships among the people within an organization that shows who is accountable for the work and who reports to whom is called a Gantt Chart.

75) Branch and plant managers and division heads are classified as first-line managers.

76) A CEO is often the president of the firm and is responsible for developing the strategic plans.

77) The recent recession eliminated many middle managers giving the remaining managers more employees to supervise.

78) Supervisory managers are those who directly oversee the activities of workers and evaluate their daily performance.

79) Middle managers usually are responsible for tactical planning and controlling.

80) The CIO, COO, and CFO are classified as top management positions.

81) In this day of rapidly changing technology, technical skills are the most important skills for all levels of management.

82) Conceptual skills refer to the ability of a manager to perform the tasks associated with a specific discipline or department.

83) First-line managers typically spend less time on conceptual tasks and more time on technical skills.

84) Most of a top manager's time is devoted to conceptual and human relations activities.

85) The ability to plan, coordinate, and delegate are among a manager's most basic technical skills.

86) A person who is a good first-line manager is automatically likely to be a good middle or top manager.

87) Human relations skills include those associated with leadership, coaching, morale building, and supportiveness.

88) The question of how to implement change within an organization is the responsibility of the firm's CEO.

89) Staffing involves recruiting, hiring, motivating, and retaining the best people available for the organization.

90) Due to the growth of the Internet, recruiting is less important today than in the past.

91) Staffing is a less important management function today than in the past.

92) Organizing involves developing a structure or framework that relates all workers, tasks, and resources to each other.

93) Top management is also known as first-line management because it deals with key managerial decisions on a priority basis.

94) Supervisory managers usually work more with ideas than with people.

95) Because of the complex nature of their jobs, top managers spend most of their time developing and using technical skills.

96) The experience gained by first-line managers as they perform their jobs enables them to acquire all the skills they will need when promoted to higher levels of management.

97) Phillip is a manager for Connect Cable. Most of his day is spent scheduling the specific service calls that each employee performs, verifying job completion, and evaluating employee performance on each call. These responsibilities suggest that Phillip is a middle manager.

98) Aleah is a first-line manager at her company. At this level of management, she will use human relations and conceptual skills as well as technical skills.

99) Bethany was recently promoted to first-line manager. Her company is very traditional in its approach to management. In her position, Bethany probably spends a lot of time giving employees detailed and specific instructions.

100) Marcos wants to become a manager but he is reserved and avoids conversation with strangers. However, he is very comfortable with information technology and has great technical skills in the area. Marco's personal traits make him a good candidate for a top management position.

101) Staffing is less important at Facebook, Google, and other high-tech firms because these firms sell technology.

102) People who are good leaders also are almost always good managers.

103) Leadership is the management function of checking to determine whether or not an organization is progressing toward its objectives, and taking corrective action if it is not.

104) One difference between managers and leaders is that managers strive to achieve stability while leaders embrace change.

105) Management carries out of the vision created by leadership.

106) Effective leadership includes the ability both to welcome change and to promote ethical behavior.

107) Good leaders motivate workers and create the environment for workers to motivate themselves.

108) Managers must lead by doing, not just by saying.

109) A leader's most important job may be to transform the way the company does business so that it's more effective and efficient.

110) Researchers have determined that all effective leaders have similar traits.

111) There is no single leadership style that works best in all situations.

112) Research has shown that the democratic style of leadership is the most effective style of leadership.

113) Research on leadership supports the idea that the best leadership style depends on several factors, including the people being led and the situation.

114) The autocratic style of leadership can be very effective in emergency situations.

115) The traits used by autocratic leaders include warmth, friendliness, and understanding.

116) The traits that characterize participative leaders include flexibility, good listening skills, and empathy.

117) Autocratic leadership is most effective with workers who like to work independently and make their own decisions.

118) Research has shown that employee participation in decision making improves job satisfaction.

119) Free-rein leaders tend to carefully monitor their subordinates to make sure they are doing the job in the correct way.

120) Managers are most effective when they consistently use the same leadership style with every employee assigned to their work group.

121) In traditional organizations, directing includes both giving assignments to workers and providing feedback on their performance.

122) Empowerment means that more authority and responsibility is given to top management.

123) Enabling is the term used to describe the process by which employees recognize and respect the authority of managers to issue orders.

124) Knowledge management involves finding the right information, keeping the information accessible, and making the information known to everyone in the firm.

125) The focus of knowledge management is to make sure top managers have all of the information they need to run the company.

126) The first step to developing a knowledge management system is to develop the technology to keep information secure.

127) The amount of data gathered has grown so much that the term big data is used to describe the vast amount of information available.

128) A comparison of leadership and management suggests that leadership is about creating a vision, while management is about carrying out that vision.

129) Millie wants to ensure she maintains and preserves order and stability in her company. She is very good at developing tactical plans to achieve her company's goals and objectives. These characteristics suggest that Millie has characteristics of an exceptional leader.

130) Will is a manager for a major manufacturing corporation. He strives to maintain a free-rein approach to leadership in most situations. However, the company recently lost a major contract that it needs to continue the current level of operation. Management needs to take quick action to adjust, including slashing expenses. Under these conditions, Will should maintain his free-rein style of leadership.

131) Winston is quick and decisive. He makes most decisions by himself, issues orders, and expects his subordinates to follow them without question. Winston's behavior is an example of the free-rein style of leadership.

132) After assessing the results from a recent customer survey, top managers at Gibraltar Corporation are convinced their firm is doing a poor job of responding quickly to customer needs. This has the managers very worried. Empowerment might be an approach that would help Gibraltar improve its responsiveness.

133) Amari is the project manager for a team of experienced and creative programmers at Game Guys, Inc., a popular games developer. Since the team members are bright, creative, and highly motivated, Amari brainstorms basic ideas with her group, then allows the programmers a great deal of freedom to do what it takes to reach the agreed-upon objectives. Amari is using a free-rein leadership style.

134) Colette has worked for Comfort Cove Hotel for a decade. Damon, however, is a new employee at the hotel. Mallory, who oversees both Colette and Damon, may find that she should use a different leadership style with each of these employees.

135) Lennox is a department chair at a local university. He always gives department faculty members a chance to express their opinions and encourages them to participate in decision making. Employees who work with Lennox are likely to have a high level of job satisfaction.

136) Zariah is a middle manager at Simple Solutions, Inc. The company's top management has just announced that they are going to initiate a policy of empowerment. In order for this policy to succeed, Zariah and other managers will need to adopt a more autocratic style of leadership.

137) The steps of the controlling function include assigning tasks and establishing procedures to accomplish organizational goals.

138) Controlling provides managers and workers with feedback that helps them adjust to deviations from plans.

139) If managers do a good job planning and organizing, there shouldn't be a need for them to be involved with controlling.

140) Two of the key components of the control process are setting clear performance standards and communicating results and deviations to the employees involved.

141) The first step in the controlling process is to monitor and record the actual results.

142) Without clear standards, the control process is impossible to implement.

143) In the control process, performance standards should be stated in general terms in order to give management as much flexibility as possible.

144) In order to be effective, performance standards must be specific, attainable, and measurable.

145) Accounting and finance are important for control systems because they provide the numbers management needs to evaluate progress.

146) External customers are those individuals or units that receive services from other units within the same organization.

147) A customer-oriented firm should focus exclusively on satisfying its internal customers.

148) When all is said and done, financial standards such as profit and return on investment are the only relevant measures of how well a firm is meeting its goals.

149) When setting standards used in controlling, it is better to simply state general goals such as "better quality" or "higher levels of consumer satisfaction" than it is to spend a lot of time and effort developing more specific standards.

150) Ronin is a manager for Luxe Letters, Inc., a firm that designs and manufactures greeting cards, invitations, announcements, and other event material. Ronin spends a lot of his time trying to find the right people for various positions at his company. These efforts are part of the controlling function of management.

151) Cassidy is concerned about the number of customer complaints she has received regarding the poor service provided by her department. She is convinced her employees are able to provide better service and cut complaints significantly. Cassidy has set a new goal for her department to reduce customer complaints by 15% within six months. This goal is an example of the type of performance standard needed for effective controlling.

152) Perfect Fit Athletics, a popular maker of men's and women's athletic wear, has just reported a record profit. This proves that the firm is successfully achieving its goals.

153) Management is more progressive today. There is more emphasis on

A) individual work that can be successfully measured.

B) working in teams.

C) striving to eliminate the control function of management.

D) placing greater reliance on the government for financing.

154) One of the challenges facing today's managers is to

A) deal with a workforce that is less educated and less self-directed than in the past.

B) find ways to encourage conformity instead of diversity.

C) guide a more educated workforce.

D) cope with the sudden and unexpected slowdown in the pace of innovation and change.

155) Today's progressive managers

A) prefer to use the autocratic style of leadership.

B) emphasize teamwork and cooperation rather than discipline and order giving.

C) face fewer challenges and problems than managers in the past.

D) can rely on a much higher level of worker loyalty to the organization than in the past.

156) The revolution in management that is currently under way suggests that the most effective managers of the future will

A) be very strict in their treatment of workers.

B) emphasize individual initiative rather than teamwork.

C) specialize in performing one of the four management functions.

D) emphasize teamwork.

157) How are managers today different from managers in the past?

A) Managers today are more likely to reprimand workers.

B) Managers in the past would use praise and gentle suggestions.

C) Managers in the past were less loyal to their employer.

D) Managers today emphasize teamwork.

158) Which of the following statements has resulted in changes in the role of management?

A) Most workers today show little initiative or creativity, so managers must spend more time directing their efforts.

B) The marketplace is becoming global, which increases both competition and opportunities for cooperation and integration.

C) Firms are recognizing that their workforces are too diverse, so managers must find ways to reduce diversity without violating federal laws against discrimination.

D) The desire to encourage teamwork has resulted in larger, more cumbersome organizations with too many workers.

159) ________ is the art of utilizing organizational resources to accomplish goals at work.

A) Socialization

B) Justification

C) Preparation

D) Management

160) One of the four primary functions of management is

A) controlling.

B) marketing.

C) financing.

D) designing.

161) The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as

A) directing.

B) leadership.

C) planning.

D) forecasting.

162) When managers work on creating conditions and systems to ensure that everything and everyone works together to achieve the organization's goals, they are involved in the ________ function of management.

A) controlling

B) leading

C) planning

D) organizing

163) ________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not.

A) Organizing

B) Controlling

C) Leading

D) Officiating

164) ________ is the management function that involves setting goals, strategies, and tactics for achieving the organization's goals and objectives.

A) Forecasting

B) Planning

C) Conceptualizing

D) Controlling

165) ________ is the management function of creating a vision for the organization and guiding, training, coaching, and motivating employees to help achieve the goals and objectives of the organization.

A) Organizing

B) Controlling

C) Leading

D) Officiating

166) Which of the following goals best describes today's view of the organizing function? Organizing today focuses on

A) achieving unified opinions from a diversified workforce.

B) designing the organization around the customer.

C) simplifying the process of measuring outcomes related to performance standards.

D) developing the most efficient strategic plans for the firm.

167) When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in

A) controlling.

B) planning.

C) directing.

D) accounting.

168) When managers identify a market trend that suggests a new opportunity and then devise a strategy to go after this new opportunity, they are involved in the function of

A) controlling.

B) planning.

C) leading.

D) organizing.

169) Which of the following activities would be a part of the leading function of management?

A) Devising a new strategic plan to enter a new foreign market currently dominated by a competing firm

B) Recruiting qualified workers to join the organization and assigning them to their proper position

C) Examining a financial report to see whether the firm's profits are improving and taking corrective action if they are not

D) Training and coaching workers to help them understand their job and perform it effectively

170) Which of the following activities is part of the planning function of management?

A) Assigning a particular worker to do a specific task

B) Looking at market forecasts to identify future business opportunities and challenges

C) Praising a sales representative who has far exceeded her monthly sales objectives

D) Conducting a job interview with a potential new employee

171) Which of the following activities is part of the organizing function of management?

A) Going over a spreadsheet to analyze some financial data

B) Teaching a new employee how to use a piece of office equipment

C) Giving front-line workers additional resources needed to provide faster and better service to customers

D) Developing a broad general strategy to help the organization meet its long-term growth objectives

172) As a manager, two of Summer's greatest strengths are her ability to clearly communicate goals and her ability to guide, coach, and motivate her employees. Based on these strengths, ________ is a management function that Summer is likely to be good at performing.

A) controlling

B) planning

C) leading

D) organizing

173) Autumn, a manager for Shine Cosmetics, has just been given a report showing sales in her region are lower than anticipated for the third quarter. Her next task is to determine the reason for the disappointing results and find a way to get sales up to their desired level. Autumn's efforts are part of the ________ function of management.

A) controlling

B) directing

C) organizing

D) planning

174) A ________ is an overall explanation of why an organization exists and where it is trying to head.

A) tactical plan

B) prime directive

C) corporate charter

D) vision

175) A vision for a company is

A) an explanation of why the company exists and where it wants to go.

B) the same thing as an objective.

C) a detailed plan that outlines the major organizational structure of the firm.

D) very relevant for the short term, but less useful for the long term.

176) A meaningful mission statement should address topics such as the organization's

A) form of ownership and methods of financing.

B) self-concept and company philosophy.

C) advertising strategy and distribution plan.

D) tactical plans and contingency plans.

177) Employees often work with managers to develop a(n) ________ that outlines the fundamental purposes of their organization.

A) organization chart

B) value statement

C) mission statement

D) PERT diagram

178) ________ involves setting the organization's vision, goals, and objectives.

A) Organizing

B) Planning

C) Controlling

D) Directing

179) ________ are broad, long-term accomplishments an organization wants to achieve.

A) Goals

B) Objectives

C) Directives

D) Agendas

180) ________ are specific, short-term, measurable results an organization wants to achieve in order to fulfill its long-term goals.

A) Directives

B) Opportunity targets

C) Objectives

D) Mission complements

181) A ________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities.

A) WISH

B) SWAMP

C) ASSET

D) SWOT

182) ________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals.

A) Strategic

B) Contingency

C) Central

D) Tactical

183) The type of planning that is concerned with developing detailed short-term actions about what is to be done, who is to do it, and how it is to be done is known as ________ planning.

A) strategic

B) contingency

C) first-line

D) tactical

184) ________ planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives.

A) Strategic

B) Contingency

C) Tactical

D) Alternative

185) Tactical planning is concerned with

A) determining the best way to cope with an emergency situation.

B) developing detailed strategies about what is to be done, who is to do it, and how it is to be done.

C) devising temporary courses of action to be used if the primary plans do not achieve the desired results.

D) setting long-run goals that will govern the general course of the organization for years.

186) Which of the following is involved in setting work standards and schedules needed to implement the firm's tactical objectives?

A) mission statement

B) tactical planning

C) operational planning

D) contingency planning

187) A(n) ________ would be used by a department manager as a tool for making daily and weekly assignments.

A) operational plan

B) vision statement

C) mission statement

D) tactical plan

188) Strategic planning looks at the organization as a whole, while ________ planning focuses on daily tasks and decisions.

A) tactical

B) strategic

C) mission

D) operational

189) ________ planning is a part of contingency planning that is used to deal with sudden and unexpected changes in the business environment.

A) Crisis

B) Tactical

C) Operational

D) SWOT

190) ________ is choosing among two or more alternatives.

A) Contingency planning

B) Decision making

C) Organizational selection

D) Utility analysis

191) The first step in the rational decision-making model is to:

A) recruit team members to work on the problem.

B) gather data.

C) develop alternative responses.

D) define the situation.

192) ________ is a problem solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas.

A) Brainstorming

B) Game theory

C) CAD/CAM

D) PMI

193) PMI is a

A) computer program used to help managers write mission statements.

B) statistical technique used in the controlling process.

C) problem-solving technique used to evaluate possible solutions to a problem.

D) rule of thumb used to determine how many employees should be managed by any single manager.

194) In a company in which an effective vision has been provided

A) there is no need for tactical planning.

B) the economic and competitive environments tend to be much more predictable.

C) employees are likely to have a sense of purpose and a common set of values.

D) goals and objectives are no longer needed.

195) A basic difference between goals and objectives is that goals are

A) precise, while objectives are vague.

B) set by tactical plans, while objectives are set by strategic plans.

C) set by middle management, while objectives are set by first-line managers.

D) concerned with broad, long-term accomplishments, while objectives focus on specific short-term details.

196) Which of the following would be a concern addressed in a strategic plan?

A) Should the firm make a long-term commitment to expand into new markets?

B) Which specific jobs should be assigned to each employee?

C) How much output should be produced this week in a given production facility?

D) Which computer software package should the firm's human resources office use to manage the payroll?

197) Because economic and competitive environments frequently change, organizations should

A) set a long-term plan and stick to it.

B) develop contingency plans.

C) save time and money by cutting back on planning.

D) eliminate any long-term strategic plans, but devise short-term tactical plans and update them once a year.

198) Which of the following techniques would a team of workers be most likely to use if they wanted to evaluate several possible solutions to a specific problem their company needs to solve?

A) PERT

B) Regression analysis

C) PMI

D) MBO

199) Setting contingency plans in an organization is considered very important today mainly because

A) managers have historically been poor tactical planners.

B) the government can charge firms with unfair business practices if they do not have such plans.

C) conditions change rapidly in today's economic and competitive environments.

D) most employees and staff don't understand strategic planning, so they tend to rely more on contingency plans.

200) When a firm makes use of SWOT analysis, one of its objectives is to

A) identify the best employees to fill each position within the organization.

B) set specific short-term performance standards for each department.

C) evaluate the desirability of issuing stocks or bonds in the current financial climate.

D) identify the things it does well as an organization and the things it needs to improve.

201) According to the box, "Will Strategy Robots Replace Managers?", with robots having the capabilities to do a multitude of business tasks, why have machines not replaced most human jobs?

A) Companies do not want to eliminate all jobs at once.

B) Machines cannot do the jobs of humans, like recommend cancer cures or make banking decisions.

C) There is a level of reasoning and strategy that only humans have the ability to do.

D) Machines are only useful in manufacturing duties.

202) Genna Raiter, the president and CEO of Car Keepers Garage, has asked several of her managers and employees to help establish a statement to outline the fundamental purposes of their company. The result of this effort is likely to be a document known as a(n)

A) payoff matrix.

B) mission statement.

C) tactical plan.

D) organization chart.

203) Kobe is part of a group of managers at Earthbound Engineering examining whether the company should offer some significant new services that would increase business by appealing to a different group of potential clients. Kobe's group is involved with

A) contingency planning.

B) operational planning.

C) strategic planning.

D) tactical planning.

204) Karina was hired by the Mountain Mist Corporation to take over as the new CEO. Her initial impression is that the company is disorderly, primarily because the employees do not have a sense of purpose or a common set of values. Karina's remarks suggest that she needs to provide a(n) ________ for Mountain Mist.

A) vision

B) contingency plan

C) objective function

D) corporate logo

205) Customers at any RefurbRite Repair Center see a framed statement prominently displayed near the front door. The plaque describes the company's fundamental purposes. In part, it states that "All RefurbRite Repair Centers operate under the belief that every customer deserves good quality parts, fast and dependable service, and a fair price." The words on this plaque reflect the ________ of RefurbRite.

A) strategic plan

B) mission statement

C) corporate agenda

D) corporate charter

206) As a manager with D-Lighting Industries, part of Darius' job is to make specific short-term decisions about what his department must do to achieve D-Lighting's long-term success. Darius is involved in

A) strategic planning.

B) contingency planning.

C) tactical planning.

D) complimentary planning.

207) Blair is a production line supervisor. She spends several hours each week creating specific employee work assignments and production schedules for the coming week so that the production department can meet its short-term production objectives. This suggests that a significant component of Blair's job involves

A) strategic planning.

B) contingency planning.

C) tactical planning.

D) operational planning.

208) Moises has dreamed of setting up a graphic design company since he was in college. He always knew he wanted to work from home and he now had several leads for prospective customers. He also knew how much money he needed to make to cover his expenses. He had several ways to approach his new business including working by himself or taking on a partner. Both ways needed more thought to determine what each would involve. In terms of the rational decision-making model, Moises is in which of the following steps?

A) defining the situation

B) describing and collecting needed information

C) developing alternatives

D) determining if the decision was a good one

209) ________ is the management function that involves allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives.

A) Controlling

B) Outsourcing

C) Organizing

D) Coordinating

210) The level of management that is directly responsible for assigning specific jobs to workers and evaluating their daily performance is called

A) primary management.

B) middle management.

C) supervisory management.

D) secondary management.

211) Middle managers are responsible for

A) establishing the vision for the organization.

B) assigning specific jobs and evaluating the daily performance of workers.

C) devising the organization's strategic plan.

D) developing tactical plans and controlling.

212) General and divisional managers, plant managers, and deans and department heads at colleges are classified as

A) middle management.

B) supervisory management.

C) top management.

D) nominal management.

213) Supervisory managers spend most of their time on

A) conceptual and financial skills.

B) technical and human relations skills.

C) strategic planning.

D) external efforts such as meeting with stockholders and other stakeholders.

214) ________ skills involve a manager's ability to picture the organization as a whole and the relationships among its various parts.

A) Creative

B) Technical

C) Conceptual

D) Autonomic

215) ________ skills include the ability to perform tasks of a specific department or job, such as selling (marketing) or bookkeeping (accounting).

A) Conceptual

B) Departmental

C) Technical

D) Tactical

216) Leadership, coaching, and morale building are all part of a manager's ________ skills.

A) technical

B) theoretical

C) empirical

D) human relations

217) Although top managers most often possess these skills, they usually make less use of ________ skills than supervisory managers.

A) technical

B) conceptual

C) human relations

D) empirical

218) The downsizing that has occurred in recent years has ________ middle managers in many organizations.

A) increased the number of

B) eliminated the jobs of some

C) strengthened the control of

D) increased the importance of

219) Which of the following management positions is responsible for getting the right information to other managers to enable them to make better decisions?

A) Chief Executive Officer (CEO)

B) Chief Financial Officer (CFO)

C) Chief Planning Officer (CPO)

D) Chief Information Officer (CIO)

220) The further up the managerial ladder a person moves, the ________ his or her original job skills become.

A) more important

B) less important

C) stronger

D) more tactical

221) A chief operating officer (COO) would be classified as part of a firm's

A) primary management.

B) middle management.

C) top management.

D) first-line management.

222) ________ involves recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives.

A) Directing

B) Planning

C) Leading

D) Staffing

223) By comparing the types of skills used by managers at different levels within an organization, which of the following is true?

A) Top managers use mainly technical skills and middle and first-line managers use mostly conceptual skills.

B) First-line managers use mainly technical and human relations skills, while top managers devote most of their time to activities involving human relations and conceptual skills.

C) The types of skills used by managers do not change much from one level of management to another.

D) The specific skills used at different levels of management do vary, but conceptual skills are the most important at all levels.

224) By completing the courses needed to obtain a college major in accounting, marketing, or some other field, a student can go a long way toward acquiring the ________ skills managers need to rise through the ranks of their area of specialization.

A) autocratic

B) technical

C) human relations

D) secondary

225) Which of the following persons is most likely to be involved in strategic planning?

A) chief executive officer

B) electrical shop supervisor

C) budget analyst

D) advertising manager

226) Sylvia is responsible for hiring, motivating, and retaining the best employees for her organization. Sylvia is in charge of

A) staffing.

B) orienting.

C) directing.

D) facilitating.

227) Rodrigo has worked for Three Brothers Construction for over 10 years and was recently was promoted to the position of foreman. He is directly responsible for assigning various jobs to his work crew and evaluating their performance on a daily basis. Rodrigo is now a member of

A) top management.

B) middle management.

C) supervisory management.

D) forward management.

228) Dax has been promoted to a first-line manager. Dax's new position will require him to spend a lot of time

A) developing strategic plans.

B) evaluating the daily performance of workers.

C) creating a vision for the company.

D) providing information to stakeholders.

229) Kelley is a plant manager for O'Donnell Industries, Inc. Though she spends time performing all management functions, she is mostly tasked with tactical planning and controlling. Kelley's position would be classified as part of O'Donnell's

A) top management.

B) lateral management.

C) supervisory management.

D) middle management.

230) A long time employee of Brightside Electrical, Braden, has been promoted to foreman. In his new position, Braden will rely on

A) conceptual skills more than human relations skills.

B) technical skills and human relations skills more than conceptual skills.

C) technical skills and conceptual skills, but he won't really need any human relations skills.

D) accounting and financial skills.

231) Ahmed is a department head at Southwest City Hospital. He spends most of his time training and coaching employees to perform their jobs more effectively and teaching other managers to be better leaders. Ahmed's job requires him to make full use of his

A) technical skills.

B) conceptual skills.

C) orientation skills.

D) human relations skills.

232) Duke plans on majoring in accounting because he is confident that an ability to read and interpret financial and accounting data is the way to get to the top in business. Duke seems to be concerned with developing his

A) technical skills.

B) verbal skills.

C) qualitative skills.

D) conceptual skills.

233) ________ involves creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business so that it is more effective and efficient.

A) Organizing

B) Production management

C) Tactical planning

D) Leadership

234) Leaders

A) embrace change.

B) are mainly concerned with tactical issues as opposed to change issues.

C) tend to do the work themselves rather than delegate it to others.

D) strive to maintain order and stability.

235) The ________ style of leadership is characterized by making managerial decisions without consulting others.

A) autocratic

B) bureaucratic

C) free rein

D) democratic

236) Managers who listen to their subordinates and allow them to participate in decision making are using the ________ style of leadership.

A) autocratic

B) free-rein

C) participative

D) bureaucratic

237) A(n) ________ leader would set objectives and give employees a great deal of freedom to decide for themselves how to accomplish those objectives.

A) free-rein

B) autocratic

C) Type A

D) aristocratic

238) A key to effective leadership is the ability to

A) maintain order, stability, and control.

B) communicate a vision and rally others around that vision.

C) master the technical details of the jobs performed by subordinates.

D) maintain an autocratic approach to dealing with others.

239) ________ is the term used to describe giving workers the education and tools they need to assume additional decision-making powers.

A) Energizing

B) Provisioning

C) Upgrading

D) Enabling

240) ________ means giving employees the authority and responsibility to respond quickly to customer requests.

A) Restructuring

B) Delineating

C) Empowerment

D) Intrapreneuring

241) In traditional organizations, ________ involves giving explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization.

A) directing

B) organizing

C) budgeting

D) controlling

242) ________ is concerned with finding the right information and making that information accessible and understood by everyone in an organization.

A) Mission management

B) Data management

C) Knowledge management

D) Auditing

243) The first step in developing a knowledge management system is to

A) empower employees to make their own decisions and accept the consequences.

B) obtain the necessary information system technologies.

C) recognize that perfect information is readily available in all organizations.

D) determine what knowledge is most important to the organization.

244) One difference between managers and leaders is that

A) managers are found in businesses while leaders operate in nonprofit organizations.

B) managers work to achieve stability while leaders embrace change.

C) managers use an autocratic approach while leaders embrace a democratic style.

D) all employees can manage, but only top managers can lead.

245) Which of the following statements about effective leadership is the most accurate?

A) Effective leaders have the same personality traits.

B) The most effective leadership style depends on who is being led and in what situation.

C) The democratic style of leadership will almost always improve the effectiveness of the organization.

D) One trait of effective managers is that they consistently maintain the same style of leadership.

246) Autocratic leadership is likely to be effective when

A) subordinates are highly trained professionals.

B) the organization faces an emergency situation.

C) workers enjoy expressing their opinions and having a say in what is done.

D) the manager is uncertain about the best strategy to pursue.

247) Which of the following statements about leadership styles is most accurate?

A) A manager should choose one style and use it consistently.

B) Managers have no control over the leadership style they use.

C) Effective managers often use a variety of leadership styles.

D) Managers should always start with an autocratic style, but can gradually switch to a more democratic approach if workers earn their trust.

248) Which of the following best summarizes the type of leader future organizations are likely to need? In the future, organizations will need leaders who:

A) supply a vision, establish corporate values, and promote corporate ethics.

B) provide the sense of stability and orderliness the organization needs to withstand the challenges posed by a changing environment.

C) maintain a strong track record of focusing on the accomplishment of financial objectives.

D) effectively use autocratic techniques to grow the company.

249) As firms make greater use of empowerment and teams, managers will find that they

A) should use the same techniques for directing employees that were used in the past.

B) will need to closely supervise the teams to make sure they remain focused on the goals of the organization.

C) will need to provide the teams with detailed instructions to give them a clear sense of direction.

D) must become more like coaches and counselors than bosses.

250) When we think of successful music entertainment groups of the past 60 years, the Beatles almost always appear in the top 5! In the early days, the entertainment group's life cycle could have ended as so many other rock groups do—here today, gone tomorrow. The four musicians were definitely creative and passionate about their craft and genre of music. As the informal leader of the group, John Lennon ________ the others to make important compositional contributions. All four members had the opportunity to create musical compositions and receive copyright credit for their contributions.

A) transformed

B) enabled

C) empowered

D) commanded

251) Savannah, CEO of SmartServe, encourages employees to discuss management issues with the her and to work together to resolve those issues in a democratic manner. Which of the following statements would the Savannah most likely make?

A) The key to SmartServe staying on top in a high-tech industry is not wasting time checking out what other firms do, but to act immediately on my directives.

B) In a high-tech business, it is more important to invest in technology than to invest in people.

C) The key to keeping talented employees loyal to SmartServe is to use a participative management style and treat them with respect, value their ideas, give them the resources they need, and expect great things from them.

D) Spending a lot of money to buy out competitors for their technology is likely to backfire, because SmartServe is a leader in technology development.

252) Well-known retired basketball coach Bob Knight was known for his emotional antics at Indiana University and Texas Tech. If you talk with Bob, he believes in total dedication from his team and total compliance to his style of coaching. It's "his way or the highway." Bob typifies the ________ style of leader.

A) bureaucratic

B) free-rein

C) remanded

D) autocratic

253) Department heads at Ironside Chemical usually make decisions after meeting with employees and seeking their ideas and suggestions. These department heads are making use of the ________ style of leadership.

A) autocratic

B) diplomatic

C) participative

D) open shop

254) At PharmaPros, the highly regarded research team relies on top management to provide its strategic direction. After that, researchers work on their own to develop new medications to satisfy customer needs and company profit objectives. Middle management at PharmaPros practice ________.

A) free-rein leadership

B) consultative leadership

C) projectory leadership

D) autocratic leadership

255) Recently, a senior software engineer complained that his boss was always in the command and control mode: "He doesn't trust us to make the right decision!" The boss rarely took the advice of his employees. There were occasions when productivity was hampered because he chose to do things only his way. Referring to leadership styles, this would best be described as

A) free reign.

B) democratic.

C) alternative.

D) autocratic.

256) Last year, Game Guys, Inc., had its most successful rollout of one of its first person games in the company's history. The CEO announced sales and profits had far exceeded company projections. He attributed the success to a flexible plan, which included good design, accurate product testing, and innovative marketing and sales tactics. In order to have good recall of the procedures that were put in place for this successful introduction, he has charged a team of managers to develop a(n) ________ system, so the company can avoid "reinventing the wheel." For future introductions, he wants to be able to recall what worked and what didn't work.

A) information technology

B) human relations management

C) enablement management

D) knowledge management

257) The first step in controlling consists of

A) issuing orders and explaining routines.

B) setting clear performance standards.

C) establishing a clear chain of command.

D) assigning workers to perform specific tasks.

258) In order for standards to be useful in the controlling process, they must have certain characteristics. One of these characteristics is that they must be

A) nonspecific.

B) redundant.

C) included in the mission statement.

D) attainable.

259) Which of the following should form the foundation of a firm's control system?

A) accounting and finance

B) marketing and production

C) human resources and finance

D) computing and production

260) ________ are units within an organization that receive services from other units within the organization.

A) End-users

B) Internal customers

C) Third-party distribution centers

D) Profit centers

261) ________ include dealers, who buy products to sell to others, and ultimate customers who buy products for their own personal use.

A) End users

B) External customers

C) Internal customers

D) Distribution centers

262) Which of the following is a clear performance standard?

A) Bring about a significant improvement in the morale of all workers.

B) Decrease the number of products rejected due to manufacturing defects by 10% over the next 6 months.

C) Completely eliminate all customer complaints.

D) Make assistants more efficient.

263) When establishing criteria to measure the success of a customer-oriented business, managers should

A) limit their attention to financial measures such as profit and return on investment since these are the only objective and quantifiable measures available.

B) focus most of their attention on measures of employee satisfaction, since without good employees the firm will not be competitive.

C) focus primarily on financial measures, but pay some attention to nonfinancial concerns.

D) recognize that, while financial measures are important and should be considered, the purpose of the firm is to satisfy both internal and external customers.

264) Quiang spent two hours going over quality reports to figure out if his team is meeting quality standards he set for the current month. Quiang's efforts are part of the ________ function of management.

A) planning

B) organizing

C) directing

D) controlling

265) Poppy is a sales manager for Shimmer Sisters Cosmetics. She told her team she expects each of them to increase their customer interactions by at least 5% in the next month. Poppy has set a(n)

A) procedural policy.

B) functional objective.

C) policy guide.

D) performance standard.

266) Curtis created his own restaurant equipment company, supplying the greater Denver area, five years ago. Until now, he has never worried about instituting a formal control system. Now, after the Great Recession, he is facing more cost-conscious restaurant owners. He has decided that a formal control system is needed. The first step Curtis should take is

A) draw up a formal organization chart.

B) talk to his banker to set financial goals.

C) devise a set of clear performance standards.

D) design an accident report form so that he can keep accurate records of all accidents that occur.

267) Game Guys, Inc., has established clear standards of performance for its next virtual reality mobile game that will require the player's ability to react quickly. After a substantial testing process, the results are compared to the previously established development standards. If necessary, the engineering team will fix the bugs before customers beta test the game. These activities are part of the ________ of management.

A) organizing function

B) control function

C) leading function

D) planning function

268) Kyra is a middle manager for her firm and just finished comparing the results of a promotional campaign with the company's outcome expectations. The next step in the control process is

A) monitor and record actual performance.

B) set up contingency plans.

C) communicate results and deviations with management and employees involved.

D) establish discipline committees to decide on dismissals.

269) As a sales rep for an eyewear company, Gemma, frequently relies on the marketing department for information and materials. When using customer satisfaction to judge the success of their company, Gemma's managers should

A) ignore Gemma's satisfaction, since she is an employee rather than a customer.

B) take Gemma's satisfaction into account, because customers can be internal as well as external.

C) consider Gemma's satisfaction, but place less emphasis on it than on the satisfaction of a stockholder, since she is an external customer.

D) consider Gemma's satisfaction only if she has worked in the same job for at least two years.

270) Amazon customers often find it helpful to read reviews for products they're considering purchasing. After ultimately making the purchase, the customer can go to Amazon and post his or her opinion of the recently purchased product. This strategy not only assists other customers with their decision making, it helps Amazon assess the products it sells. Which of the following statements attests to the value of this service?

A) This action provides for complete transparency of company financial performance.

B) This action supports a key criterion of the control function: the measurement of customer satisfaction.

C) This action provides for better tactical planning, particularly the budgeting process.

D) This action supports the premise of recruiting, hiring, and motivating the employees who believe in social media and other ways to reach customers.

271) Identify and define the four key functions of management.

272) Explain the differences between strategic, tactical, operational, and contingency planning.

273) What is the purpose of the SWOT analysis? What types of information does this analysis provide?

274) What is empowerment? How has the movement toward empowerment changed the role of the manager?

275) Describe the three basic types of management skills, and relate these skills to the tasks performed by different levels of management.

276) Describe three different leadership styles and give an example of a situation in which each style could be most used effectively.

Mini-Case

Lauzy Fare left his position as senior vice president at Blue Skies Electronics a few weeks ago to become the new CEO of Idle Time Gaming. Before joining the new company, Lauzy spent time studying Idle Time's competitive position and talking to employees in all divisions and at all levels of the organization. Based on his findings, Lauzy believes that Idle Time has potential, but also faces some serious challenges if it expects to grow.  

Lauzy found that when confronted by him, most of Idle Time's professional employees seemed almost afraid to express their opinions. He learned that Otto Craddick, the previous CEO and founder of the company, viewed himself as the boss, and, as such, micromanaged every aspect of the business. This discouraged employees from using their own initiative and ideas to solve problems. For example, Otto required sales and service representatives to get his approval before they made any major commitments to customers. Otto's policy prevented the organization from responding quickly to customer requests, so sales were lost. Unlike his predecessor, Lauzy believes it is important for sales and service personnel to be able to deal with many types of customer requests without needing approval from top management. He is confident that giving employees the authority and flexibility to deal with customers, and providing them with the training and resources to help them do so, will improve morale within the company, create customer satisfaction, and grow revenues.  

Lauzy also wants to make workers throughout the organization feel more appreciated. He plans to continue meeting with them on a regular basis to seek their advice. He hopes his work colleagues will eventually respond to his leadership style. He has already encouraged middle managers to get employees more involved in decision making, and has suggested some problem-solving techniques the managers could try.

Although he thought that changing the rigidity of the company culture would be his first challenge at the new firm, Lauzy quickly realized that there were no standards in place to measure the progress of changes in internal morale, customer satisfaction, and profitability. He has asked managers in those departments to spend more time setting performance standards and then monitoring actual performance. Lauzy is confident that in a relatively short period of time internal changes will lead to good company performance. As a member of top management, Lauzy performs a variety of important tasks.

277) Otto, the previous CEO at Idle Time Gaming, relied on a(n) ________ style of management.

A) autocratic

B) iconoclastic

C) democratic

D) free-rein

278) Lauzy seems to prefer a(n) ________ style of leadership.

A) autocratic

B) participative

C) PMI

D) altruistic

279) Lauzy favors problem-solving techniques that allow teams of workers to freely identify and discuss possible solutions to a problem without having their ideas censored. Which of the following is a problem-solving technique that Lauzy is likely to suggest to his managers?

A) SWOT analysis

B) PERT analysis

C) brainstorming

D) controlling

280) Lauzy's decision to establish well-defined standards for monitoring performance means that he expects management to seriously engage in the ________ function of management.

A) research and development

B) verbalizing

C) organizing

D) controlling

281) Which of the following statements best describes the relative importance of the various types of skills Lauzy will use to perform these tasks? The tasks Lauzy performs will require:

A) only technical skills.

B) mainly conceptual skills and human relations skills.

C) only human relations skills.

D) mainly technical skills and human relations skills.