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Chap001 - Test bank
Principle of Management (‫نداعملا و لورتبلل دهف كلملا ةعماج‬‎)
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Chapter 01 - Managers and Managing
Chapter 01
Managers and Managing
TEST PLANNING TABLE FOR CHAPTER 1
Learning Goal
Easy
Moderate
Hard
1. Describe what management is, why
management is important, what managers
do, and how managers utilize
organizational resources efficiently and
effectively to achieve organizational
goals.
1, 2, 8, 11,
30, 32, 34,
37, 44
3, 4, 5, 6, 7,
9, 10, 31, 33,
36, 43, 89,
90
35, 38, 39,
40, 41, 42
2. distinguish among planning,
organizing, leading, and controlling (the
four principal managerial tasks), and
explain how managers’ ability to handle
each one affects organizational
performance.
14, 16, 17,
19, 45, 47,
48, 49, 50,
51, 54, 55,
56, 57, 61, 63
12, 13, 15,
18, 46, 53,
58, 62, 64,
66, 67
52, 59, 60,
65, 68, 69,
91, 92
3. Differentiate among three levels of
management, and understand the tasks
and responsibilities of managers at
different levels in the organizational
hierarchy.
21, 22, 23,
70, 72
20, 24, 25,
71, 73, 93
94
4. Distinguish between three kinds of
managerial skill, and explain why
managers are divided into different
departments to perform their tasks more
efficiently and effectively.
26, 27, 28,
74, 75, 76
95, 96
97, 98
5. Discuss some major changes in
management practices today that have
occurred as a result of globalization and
the use of advanced information
technology (IT).
29, 77, 80
78, 79, 83,
99, 101
81, 82, 100
6. discuss the principal challenges
managers face in today’s increasingly
competitive global environment.
86, 87
84, 88
85, 102, 103,
104
Total number of test items: 104
True/false questions are in plain text.
Multiple choice questions are in bold text.
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Chapter 01 - Managers and Managing
True / False Questions
1. A desired future outcome that a firm hopes to achieve is called a goal.
True False
2. The planning, organizing, leading, and controlling of resources in order to achieve
organizational goals both effectively and efficiently is known as management.
True False
3. An organization's people are not considered one of its resources because they are not
permanent, that is, they have the freedom to quit and move to another organization.
True False
4. A measure of how well or productively a firm uses its resources to achieve a goal is called
its effectiveness.
True False
5. Joe's Garage bought a tire alignment machine that allows them to do alignments much more
quickly. This is an example of increased efficiency.
True False
6. Organizations decrease their efficiency when they reduce the amount of resources they use
to produce goods and services.
True False
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7. Increases in a firm's effectiveness will increase its performance, but increases in efficiency
will have no predictable effect on performance.
True False
8. A measure of the appropriateness of goals selected by managers for the organization and
the degree to which the organization achieves these goals is known as the effectiveness of the
organization.
True False
9. When managers select appropriate goals for their organization and then the organization
achieves these goals, we say that the organization is efficient.
True False
10. Managers affect society through their decisions about how to use resources.
True False
11. Most people in organizations are managers.
True False
12. The process that managers use to select the goals for the organization is known as
organizing.
True False
13. An organization's strategy is an outcome of its planning processes.
True False
14. A strategy that allows an organization to produce its goods or services cheaply so that its
prices can be kept lower than the competition is called a differentiation strategy.
True False
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15. Planning is an easy activity for managers because of the amount of information they have
about the future.
True False
16. Grouping people into the various departments of an organization is known as organizing.
True False
17. An organization's structure determines how the organization's resources can be used to
create goods and services.
True False
18. When monitoring the performance of subordinates, managers are engaged in the
organizing function of management.
True False
19. An outcome of the controlling function should be the ability to measure the organization's
performance accurately.
True False
20. First-line managers are found in every department of an organization.
True False
21. First-line managers typically report to top managers.
True False
22. Managers who supervise first-line managers are typically called middle managers.
True False
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23. The importance of planning, organizing, leading, and controlling will change depending
on the level of management that a manager occupies.
True False
24. The amount of time that managers spend planning and organizing resources decreases
with the higher the level of the manager within the organization.
True False
25. The lower the manager's position in the organization's hierarchy, the less time this
manager will spend leading and controlling first-line managers of the organization.
True False
26. The ability to distinguish between the cause and the effect of a problem within an
organization is an important part of the conceptual skills of a manager.
True False
27. Planning and organizing require a high level of conceptual skill by the manager.
True False
28. Human skills can be learned through education and training, but not through work
experience.
True False
29. When top management removes a layer of middle managers within the organization, they
are restructuring the organization.
True False
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Chapter 01 - Managers and Managing
Multiple Choice Questions
30. Groups of people who work together to achieve a set of goals are called a(n):
A. role set
B. society
C. organization
D. global organization
E. competitive advantage
31. ABC Company sets a target of doubling its sales every year. This sales target is known as:
A. an efficiency target
B. a strategy
C. a role
D. a goal
E. a technical skill
32. The people who work in an organization are considered:
A. raw materials
B. machinery
C. resources
D. financial capital
E. none of the above
33. All of the following are examples of "input resources" for an organization EXCEPT:
A. labor
B. raw materials
C. component parts
D. time needed to produce a given product
E. number of units produced
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34. The measure of how well (or how productively) an organization uses its resources to
achieve a goal is known as:
A. effectiveness
B. role
C. efficiency
D. strategy
E. organizing
35. The administration of Whassamatta University recently bought new copiers that make
copies much more quickly, taking up less of the secretaries' time. This is an example of an
attempt to improve the organization's:
A. effectiveness
B. efficiency
C. planning
D. organizing
E. low-cost strategy
36. Organizational performance __________ in direct proportion to __________ in efficiency
and effectiveness.
A. increases; increases
B. increases; decreases
C. decreases; decreases
D. decreases; increases
E. none of the above
37. The measure of the "appropriateness" of the goals selected by management for the
organization and the degree to which the organization accomplishes these goals is known as:
A. efficiency
B. strategy
C. effectiveness
D. conceptual skill
E. restructuring
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38. A manager decides to produce a high quality product and makes good use of the
organization's resources in making it. However, not enough customers want to buy the
product for the organization to make a reasonable profit. The manager is said to have:
A. high efficiency/low effectiveness
B. low efficiency/low effectiveness
C. low efficiency/high effectiveness
D. high efficiency/high effectiveness
E. none of the above
39. A manager who makes a low quality product that customers do not want to purchase is
said to have:
A. high efficiency/low effectiveness
B. high efficiency/high effectiveness
C. low efficiency/high effectiveness
D. low efficiency/low effectiveness
E. none of the above
40. The Registrar's Office at Whassamatta University scheduled the work hours of its staff so
that some work 7-4 and others work 9-6, in order to better serve the students. This was an
attempt to improve the organization's:
A. effectiveness
B. planning
C. leading strategy
D. efficiency
E. none of the above
41. A manager who chooses the wrong goals for the organization and makes poor use of the
organization's resources in pursuing these goals is said to have:
A. low effectiveness/low efficiency
B. low effectiveness/high efficiency
C. high effectiveness/low efficiency
D. high effectiveness/ high efficiency
E. none of the above
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Chapter 01 - Managers and Managing
42. A manager who chooses inappropriate goals for the organization but who makes good use
of the organization's resources in pursuing these goals is said to have:
A. low effectiveness/low efficiency
B. low effectiveness/high efficiency
C. high effectiveness/low efficiency
D. high effectiveness/ high efficiency
E. none of the above
43. Managers who choose the "right" organizational goals and have the skills to use the
organization's resources are:
A. efficient
B. effective
C. strategic
D. conceptual
E. technical
44. The people within an organization who are responsible for supervising the organization's
use of its resources are known as:
A. managers
B. efficiency experts
C. effectiveness experts
D. strategists
E. restructurers
45. All of the following are essential managerial functions EXCEPT:
A. leading
B. controlling
C. demonstrating
D. planning
E. organizing
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46. In what order do managers typically perform the managerial functions?
A. organizing, planning, controlling, leading
B. organizing, leading, planning, controlling
C. planning, organizing, leading, controlling
D. planning, organizing, controlling, leading
E. leading, organizing, planning, controlling
47. The process that managers use to select "appropriate" goals for the organization is called:
A. organizing
B. leading
C. planning
D. controlling
E. demonstrating
48. The process that managers use to design a structure of working relationships that allows
managers to work together to achieve organizational goals is called:
A. planning
B. leading
C. demonstrating
D. controlling
E. organizing
49. When a manager groups workers into departments based on the tasks that they perform,
this is called:
A. planning
B. organizing
C. leading
D. demonstrating
E. controlling
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50. When a manager lays out the lines of authority and responsibility between different
individuals and groups, the manager is:
A. organizing
B. leading
C. controlling
D. planning
E. staffing
51. A formal system of reporting relationships that coordinates workers so that they work
together to attempt to achieve organizational goals is called:
A. a leading strategy
B. a controlling strategy
C. an organizational structure
D. a low-cost strategy
E. an efficiency strategy
52. When a CEO draws a picture of the reporting relationships that will occur under
management reorganization, this is an example of:
A. planning
B. leading
C. organizing
D. demonstrating
E. controlling
53. Effective leadership depends on the use of:
A. power and influence
B. authority and giving orders
C. physical resources
D. structure
E. policies and procedures
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54. When managers motivate and assist workers to achieve organizational goals, this is an
important aspect of:
A. planning
B. leading
C. demonstrating
D. controlling
E. organizing
55. If an organization has a hard-working, committed workforce, this is most likely to be a
result of managers' abilities to:
A. organize
B. plan
C. lead
D. control
E. resolve conflict
56. When managers attempt to determine how well the organization is accomplishing its
goals, this is an important aspect of:
A. leading
B. planning
C. organizing
D. demonstrating
E. controlling
57. A manager who trains and mentors subordinates to assist them to achieve their full
potential within the organization is acting primarily within which function?
A. organizing
B. leading
C. demonstrating
D. controlling
E. planning
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58. Mary, a manager, monitors the work performance of workers in her department to
determine if the quality of their work is "up to standard." She is engaging in which function?
A. planning
B. demonstrating
C. organizing
D. leading
E. controlling
59. The CEO of ABC Company reviews the performance of her company in the past month's
Profit & Loss Statement to determine if the company is "on track" in terms of its sales and
profitability goals. This CEO is engaged in which function?
A. planning
B. organizing
C. demonstrating
D. controlling
E. leading
60. Dell found that by putting effective control systems in place, it was able to:
A. reduce costs
B. expand internationally
C. move into new markets
D. insure ethical behavior
E. increase diversity
61. The set of job responsibilities that a manager is expected to perform because of his
position within the organization is called:
A. a plan
B. restructuring
C. a role
D. an efficiency strategy
E. none of the above
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62. Most managers face jobs characterized by:
A. high variety
B. fragmentation
C. brevity
D. the need to rely on experience
E. all of the above
63. According to Mintzberg, the thousands of specific tasks managers need to perform fall
into ten roles. Which of the following is NOT one of these roles?
A. decision making
B. interpersonal
C. informational
D. organizational
E. all of the above were roles identified by Mintzberg
64. A manager is deciding which program or programs to initiate. He is acting as a(n):
A. entrepreneur
B. negotiator
C. monitor
D. liaison
E. resource allocator
65. A manager takes responsibility for correcting an environmental problem that has been
created by her company. This manager is acting in of the _______ role.
A. liaison
B. disturbance handler
C. leader
D. disseminator
E. figurehead
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66. A manager who cuts the ribbon at the opening ceremony of the company's new plant is
performing the _______ role for the organization.
A. liaison
B. monitor
C. resource allocator
D. negotiator
E. figurehead
67. A manager sends a memo to subordinates outlining a new company policy. In which role
is this manager primarily acting?
A. figurehead
B. disseminator
C. disturbance handler
D. monitor
E. liaison
68. The CEO of Chrysler Corp. goes on TV to explain what the company is doing to avoid
future problems like the ones created by a recent recall of its minivans. This CEO is acting in
which type of role?
A. liaison
B. figurehead
C. leader
D. disseminator
E. spokesperson
69. Boeing appoints an engineer to be the "go-between" between the company's R&D
department and the government contractor that is sponsoring the creation of a new fighter
airplane. This is an example of which type of role?
A. monitor
B. leader
C. figurehead
D. resource allocator
E. liaison
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70. Another name for supervisors is:
A. first-line managers
B. middle managers
C. top managers
D. interim managers
E. all of the above
71. Which of the following is least likely to be a first line manager?
A. a foreman in an auto assembly plant
B. a manager of tellers in a bank
C. a head of a marketing department
D. the head mechanic in a car dealer's service department
E. none of the above
72. When we say that the top managers of an organization are responsible for the performance
of all of the departments of the organization, this is another way of saying that they have:
A. restructuring responsibilities
B. technical responsibilities
C. global responsibilities
D. cross-departmental responsibilities
E. competitive responsibilities
73. The top management of an organization must devote more time to ________________
than lower level managers do.
A. planning and organizing
B. leading
C. controlling
D. vision
E. motivation
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74. The ability to analyze and diagnose a problem situation and distinguish between cause and
effect is a:
A. human skill
B. negotiating skill
C. technical skill
D. conceptual skill
E. none of the above
75. The ability to understand, lead, and control the behavior of other workers is a ________
skill.
A. conceptual
B. human
C. technical
D. negotiating
E. organizing
76. The ability of a worker in the accounting department to prepare the organization's balance
sheet is an example of a ________ skill.
A. conceptual
B. first-line
C. human
D. technical
E. none of the above
77. When an organization removes a layer of middle managers from the organization's
structure, __________ has occurred.
A. upsizing
B. restructuring
C. a low-cost strategy
D. globalization
E. departmentalizing
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78. The top management team of ABC, Inc., facing financial problems, decides to reduce the
number of middle managers by 10 percent in order to cut costs. This is an example of:
A. innovation
B. restructuring
C. strategy
D. empowerment
E. a self-managed team
79. Levi Strauss announced that, due to declining global sales, it would lay off 12 percent of
its workforce. This was an example of:
A. a low-cost strategy
B. innovation
C. restructuring
D. empowerment
E. none of the above
80. When an organization gives broader responsibilities for decision-making to first-line
supervisors, this is called:
A. restructuring
B. downsizing
C. empowerment
D. departmentalizing
E. creating a self-managed team
81. TWA allows the agent-in-charge at the gate to decide whether to give out a "free ticket" to
some passengers when a flight is overbooked. This is an example of:
A. innovation
B. restructuring
C. TQM
D. empowerment
E. outsourcing
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82. A credit card company allows a customer service representative to decide if a late fee of
$25 should be waived for a customer whose monthly payment was a few days late and who
has called to complain about this charge. This is an example of:
A. restructuring
B. TQM
C. total quality management
D. empowerment
E. innovation
83. The discussion of IBM in the text shows how an organization can become more effective
by using:
A. Outsourcing
B. Self-managed teams
C. Extensive training
D. Restructuring
E. Empowerment
84. Which of the following is NOT identified in the text as one of the challenges for
managing in a global environment?
A. building competitive advantage
B. maintaining ethical standards
C. managing a diverse workforce
D. building a strong bureaucratic structure
E. utilizing new kinds of information systems and technology
85. Wal-Mart built distribution warehouses so that it can supply products to its stores within a
200-mile radius almost daily. We say that Wal-Mart has achieved:
A. empowerment
B. a competitive advantage
C. increased quality
D. increased innovation
E. none of the above
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86. At Acme Explosives, workers are organized into quality control teams and are given the
responsibility of continuously improving their performance. This is an example of:
A. MBO
B. SEC
C. EPA
D. TQM
E. none of the above
87. The process of creating new products that customers want to purchase is called:
A. responsiveness
B. TQM
C. quality
D. innovation
E. restructuring
88. The effect(s) of pressure to perform on organizations can be:
A. pressure causes managers to question current procedures and policies
B. pressure induces managers to behave unethically with customers
C. pressure induces managers to behave unethically with employees
D. pressure causes managers to find better ways to manage
E. all of the above
Essay Questions
89. Discuss the relationship between "efficiency" and "effectiveness" and how they impact the
performance of an organization.
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90. What are the benefits of studying management?
91. Identify and describe the three steps in the planning process. Explain how they could be
applied, using the example of a new company that was about to enter the computer software
field in developing custom accounting software for small businesses (less than $1 million in
annual sales).
92. What is strategy? This chapter in the text discusses two basic strategies. Identify them,
explain briefly what they are, and give examples of each from an industry other than PC's.
93. Mintzberg described ten major roles that managers play within the organization. Discuss
any three of these roles and give one practical business example of a manager operating in
each role that you have chosen.
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94. Identify three levels of management. Explain the basic responsibilities and give an
example of each.
95. Identify and briefly define the three major types of managerial skills that managers need.
96. Identify and discuss three of the "human skills" that a good manager needs to possess. For
each, give a realistic business example of how a manager could use each of these three skills.
97. What is a "core competency"? How is it related to a competitive advantage? Give an
example of each concept from an industry other than PC's or specialty supermarkets.
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98. Identify and discuss what is meant by the "technical skills" of a manager. For each, give a
practical business example of how managers use these skills in their everyday activities for a
particular managerial job, e.g., Accounting Manager, Restaurant Manager.
99. "Restructuring" is a popular management technique in recent business experience within
the United States. Define this term. Discuss both its positive and negative effects on the
business that is restructured.
100. How has IT been used to empower employees and facilitate self-managed teams? How
can first-line and middle managers use IT to help them manage better?
101. Define the two major trends of empowerment and self-managed work teams, and give a
realistic business example of each of these.
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102. Identify and discuss the "four building blocks" of competitive advantage. For each, give
an example of a company that you feel uses these building blocks successfully.
103. The text discusses how Union Bank took advantage of diversity to increase its
competitive advantage. Describe what they did.
104. Today, American companies are experiencing a more diverse workforce than ever before.
Discuss three of the areas in which managers today "need to treat their human resources in a
fair and equitable manner" in terms of diversity issues.
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Chapter 01 Managers and Managing Answer Key
True / False Questions
1. (p. 5) A desired future outcome that a firm hopes to achieve is called a goal.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
2. (p. 5) The planning, organizing, leading, and controlling of resources in order to achieve
organizational goals both effectively and efficiently is known as management.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
3. (p. 5) An organization's people are not considered one of its resources because they are not
permanent, that is, they have the freedom to quit and move to another organization.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 1
4. (p. 6) A measure of how well or productively a firm uses its resources to achieve a goal is
called its effectiveness.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Moderate
Learning Objective: 1
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Chapter 01 - Managers and Managing
5. (p. 6) Joe's Garage bought a tire alignment machine that allows them to do alignments much
more quickly. This is an example of increased efficiency.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Moderate
Learning Objective: 1
6. (p. 6) Organizations decrease their efficiency when they reduce the amount of resources they
use to produce goods and services.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 1
7. (p. 6) Increases in a firm's effectiveness will increase its performance, but increases in
efficiency will have no predictable effect on performance.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 1
8. (p. 6) A measure of the appropriateness of goals selected by managers for the organization
and the degree to which the organization achieves these goals is known as the effectiveness of
the organization.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
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9. (p. 6) When managers select appropriate goals for their organization and then the
organization achieves these goals, we say that the organization is efficient.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Moderate
Learning Objective: 1
10. (p. 7) Managers affect society through their decisions about how to use resources.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 1
11. (p. 7) Most people in organizations are managers.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 1
12. (p. 8) The process that managers use to select the goals for the organization is known as
organizing.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Moderate
Learning Objective: 2
13. (p. 9) An organization's strategy is an outcome of its planning processes.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 2
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Chapter 01 - Managers and Managing
14. (p. 9) A strategy that allows an organization to produce its goods or services cheaply so that
its prices can be kept lower than the competition is called a differentiation strategy.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
15. (p. 10) Planning is an easy activity for managers because of the amount of information they
have about the future.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 2
16. (p. 11) Grouping people into the various departments of an organization is known as
organizing.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
17. (p. 11) An organization's structure determines how the organization's resources can be used
to create goods and services.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 2
1-28
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Chapter 01 - Managers and Managing
18. (p. 12) When monitoring the performance of subordinates, managers are engaged in the
organizing function of management.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 2
19. (p. 12) An outcome of the controlling function should be the ability to measure the
organization's performance accurately.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 2
20. (p. 15) First-line managers are found in every department of an organization.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 3
21. (p. 15) First-line managers typically report to top managers.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 3
22. (p. 15) Managers who supervise first-line managers are typically called middle managers.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 3
1-29
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Chapter 01 - Managers and Managing
23. (p. 16) The importance of planning, organizing, leading, and controlling will change
depending on the level of management that a manager occupies.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 3
24. (p. 16) The amount of time that managers spend planning and organizing resources
decreases with the higher the level of the manager within the organization.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 3
25. (p. 16) The lower the manager's position in the organization's hierarchy, the less time this
manager will spend leading and controlling first-line managers of the organization.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 3
26. (p. 16) The ability to distinguish between the cause and the effect of a problem within an
organization is an important part of the conceptual skills of a manager.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 4
27. (p. 16) Planning and organizing require a high level of conceptual skill by the manager.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 4
1-30
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Chapter 01 - Managers and Managing
28. (p. 18) Human skills can be learned through education and training, but not through work
experience.
FALSE
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 4
29. (p. 20) When top management removes a layer of middle managers within the organization,
they are restructuring the organization.
TRUE
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 5
Multiple Choice Questions
30. (p. 5) Groups of people who work together to achieve a set of goals are called a(n):
A. role set
B. society
C. organization
D. global organization
E. competitive advantage
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
1-31
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Chapter 01 - Managers and Managing
31. (p. 5) ABC Company sets a target of doubling its sales every year. This sales target is known
as:
A. an efficiency target
B. a strategy
C. a role
D. a goal
E. a technical skill
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Moderate
Learning Objective: 1
32. (p. 5) The people who work in an organization are considered:
A. raw materials
B. machinery
C. resources
D. financial capital
E. none of the above
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
33. (p. 6) All of the following are examples of "input resources" for an organization EXCEPT:
A. labor
B. raw materials
C. component parts
D. time needed to produce a given product
E. number of units produced
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 1
1-32
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Chapter 01 - Managers and Managing
34. (p. 6) The measure of how well (or how productively) an organization uses its resources to
achieve a goal is known as:
A. effectiveness
B. role
C. efficiency
D. strategy
E. organizing
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
35. (p. 6) The administration of Whassamatta University recently bought new copiers that make
copies much more quickly, taking up less of the secretaries' time. This is an example of an
attempt to improve the organization's:
A. effectiveness
B. efficiency
C. planning
D. organizing
E. low-cost strategy
Organizations are efficient when managers minimize the amount of input resources. In this
example, the time of the secretaries is an input resource.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 1
36. (p. 6) Organizational performance __________ in direct proportion to __________ in
efficiency and effectiveness.
A. increases; increases
B. increases; decreases
C. decreases; decreases
D. decreases; increases
E. none of the above
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 1
1-33
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Chapter 01 - Managers and Managing
37. (p. 6) The measure of the "appropriateness" of the goals selected by management for the
organization and the degree to which the organization accomplishes these goals is known as:
A. efficiency
B. strategy
C. effectiveness
D. conceptual skill
E. restructuring
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
38. (p. 6) A manager decides to produce a high quality product and makes good use of the
organization's resources in making it. However, not enough customers want to buy the
product for the organization to make a reasonable profit. The manager is said to have:
A. high efficiency/low effectiveness
B. low efficiency/low effectiveness
C. low efficiency/high effectiveness
D. high efficiency/high effectiveness
E. none of the above
Efficiency is a measure of how well or productively resources are used; effectiveness is a
measure of the appropriateness of the goal.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 1
1-34
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Chapter 01 - Managers and Managing
39. (p. 6) A manager who makes a low quality product that customers do not want to purchase is
said to have:
A. high efficiency/low effectiveness
B. high efficiency/high effectiveness
C. low efficiency/high effectiveness
D. low efficiency/low effectiveness
E. none of the above
Efficiency is a measure of how well or productively resources are used; effectiveness is a
measure of the appropriateness of the goal.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 1
40. (p. 6-7) The Registrar's Office at Whassamatta University scheduled the work hours of its
staff so that some work 7-4 and others work 9-6, in order to better serve the students. This was
an attempt to improve the organization's:
A. effectiveness
B. planning
C. leading strategy
D. efficiency
E. none of the above
Efficiency is a measure of how well or productively resources are used; effectiveness is a
measure of the appropriateness of the goal.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 1
1-35
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Chapter 01 - Managers and Managing
41. (p. 6-7) A manager who chooses the wrong goals for the organization and makes poor use of
the organization's resources in pursuing these goals is said to have:
A. low effectiveness/low efficiency
B. low effectiveness/high efficiency
C. high effectiveness/low efficiency
D. high effectiveness/ high efficiency
E. none of the above
Efficiency is a measure of how well or productively resources are used; effectiveness is a
measure of the appropriateness of the goal.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 1
42. (p. 6-7) A manager who chooses inappropriate goals for the organization but who makes
good use of the organization's resources in pursuing these goals is said to have:
A. low effectiveness/low efficiency
B. low effectiveness/high efficiency
C. high effectiveness/low efficiency
D. high effectiveness/ high efficiency
E. none of the above
Efficiency is a measure of how well or productively resources are used; effectiveness is a
measure of the appropriateness of the goal.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 1
1-36
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Chapter 01 - Managers and Managing
43. (p. 7) Managers who choose the "right" organizational goals and have the skills to use the
organization's resources are:
A. efficient
B. effective
C. strategic
D. conceptual
E. technical
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Moderate
Learning Objective: 1
44. (p. 7) The people within an organization who are responsible for supervising the
organization's use of its resources are known as:
A. managers
B. efficiency experts
C. effectiveness experts
D. strategists
E. restructurers
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
45. (p. 8) All of the following are essential managerial functions EXCEPT:
A. leading
B. controlling
C. demonstrating
D. planning
E. organizing
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
1-37
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Chapter 01 - Managers and Managing
46. (p. 8) In what order do managers typically perform the managerial functions?
A. organizing, planning, controlling, leading
B. organizing, leading, planning, controlling
C. planning, organizing, leading, controlling
D. planning, organizing, controlling, leading
E. leading, organizing, planning, controlling
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 2
47. (p. 8) The process that managers use to select "appropriate" goals for the organization is
called:
A. organizing
B. leading
C. planning
D. controlling
E. demonstrating
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 2
48. (p. 11) The process that managers use to design a structure of working relationships that
allows managers to work together to achieve organizational goals is called:
A. planning
B. leading
C. demonstrating
D. controlling
E. organizing
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 2
1-38
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Chapter 01 - Managers and Managing
49. (p. 11) When a manager groups workers into departments based on the tasks that they
perform, this is called:
A. planning
B. organizing
C. leading
D. demonstrating
E. controlling
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
50. (p. 11) When a manager lays out the lines of authority and responsibility between different
individuals and groups, the manager is:
A. organizing
B. leading
C. controlling
D. planning
E. staffing
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
51. (p. 11) A formal system of reporting relationships that coordinates workers so that they work
together to attempt to achieve organizational goals is called:
A. a leading strategy
B. a controlling strategy
C. an organizational structure
D. a low-cost strategy
E. an efficiency strategy
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
1-39
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Chapter 01 - Managers and Managing
52. (p. 11) When a CEO draws a picture of the reporting relationships that will occur under
management reorganization, this is an example of:
A. planning
B. leading
C. organizing
D. demonstrating
E. controlling
In organizing, a manager lays out the lines of authority and responsibility between different
individuals and groups, thus creating an organizational structure.
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 2
53. (p. 12) Effective leadership depends on the use of:
A. power and influence
B. authority and giving orders
C. physical resources
D. structure
E. policies and procedures
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 2
54. (p. 12) When managers motivate and assist workers to achieve organizational goals, this is
an important aspect of:
A. planning
B. leading
C. demonstrating
D. controlling
E. organizing
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
1-40
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Chapter 01 - Managers and Managing
55. (p. 12) If an organization has a hard-working, committed workforce, this is most likely to be
a result of managers' abilities to:
A. organize
B. plan
C. lead
D. control
E. resolve conflict
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 2
56. (p. 12) When managers attempt to determine how well the organization is accomplishing its
goals, this is an important aspect of:
A. leading
B. planning
C. organizing
D. demonstrating
E. controlling
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
57. (p. 12) A manager who trains and mentors subordinates to assist them to achieve their full
potential within the organization is acting primarily within which function?
A. organizing
B. leading
C. demonstrating
D. controlling
E. planning
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 2
1-41
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Chapter 01 - Managers and Managing
58. (p. 12) Mary, a manager, monitors the work performance of workers in her department to
determine if the quality of their work is "up to standard." She is engaging in which function?
A. planning
B. demonstrating
C. organizing
D. leading
E. controlling
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Moderate
Learning Objective: 2
59. (p. 12) The CEO of ABC Company reviews the performance of her company in the past
month's Profit & Loss Statement to determine if the company is "on track" in terms of its sales
and profitability goals. This CEO is engaged in which function?
A. planning
B. organizing
C. demonstrating
D. controlling
E. leading
In controlling, a manager evaluates how well an organization has achieved its goals, so that
she can take corrective action.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 2
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Chapter 01 - Managers and Managing
60. (p. 12-13) Dell found that by putting effective control systems in place, it was able to:
A. reduce costs
B. expand internationally
C. move into new markets
D. insure ethical behavior
E. increase diversity
This example is discussed in the text.
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 2
61. (p. 13) The set of job responsibilities that a manager is expected to perform because of his
position within the organization is called:
A. a plan
B. restructuring
C. a role
D. an efficiency strategy
E. none of the above
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
62. (p. 13) Most managers face jobs characterized by:
A. high variety
B. fragmentation
C. brevity
D. the need to rely on experience
E. all of the above
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 2
1-43
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Chapter 01 - Managers and Managing
63. (p. 14) According to Mintzberg, the thousands of specific tasks managers need to perform
fall into ten roles. Which of the following is NOT one of these roles?
A. decision making
B. interpersonal
C. informational
D. organizational
E. all of the above were roles identified by Mintzberg
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 2
64. (p. 14) A manager is deciding which program or programs to initiate. He is acting as a(n):
A. entrepreneur
B. negotiator
C. monitor
D. liaison
E. resource allocator
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Moderate
Learning Objective: 2
65. (p. 14) A manager takes responsibility for correcting an environmental problem that has been
created by her company. This manager is acting in of the _______ role.
A. liaison
B. disturbance handler
C. leader
D. disseminator
E. figurehead
In the disturbance handler role, managers move quickly to take corrective action to deal with
unexpected problems facing the organization from the external environment.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 2
1-44
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Chapter 01 - Managers and Managing
66. (p. 14) A manager who cuts the ribbon at the opening ceremony of the company's new plant
is performing the _______ role for the organization.
A. liaison
B. monitor
C. resource allocator
D. negotiator
E. figurehead
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 2
67. (p. 14) A manager sends a memo to subordinates outlining a new company policy. In which
role is this manager primarily acting?
A. figurehead
B. disseminator
C. disturbance handler
D. monitor
E. liaison
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 2
68. (p. 14) The CEO of Chrysler Corp. goes on TV to explain what the company is doing to
avoid future problems like the ones created by a recent recall of its minivans. This CEO is
acting in which type of role?
A. liaison
B. figurehead
C. leader
D. disseminator
E. spokesperson
In the spokesperson role, a manager speaks for the company.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 2
1-45
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Chapter 01 - Managers and Managing
69. (p. 15) Boeing appoints an engineer to be the "go-between" between the company's R&D
department and the government contractor that is sponsoring the creation of a new fighter
airplane. This is an example of which type of role?
A. monitor
B. leader
C. figurehead
D. resource allocator
E. liaison
In the liaison role, a manager coordinates the work of others.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 2
70. (p. 15) Another name for supervisors is:
A. first-line managers
B. middle managers
C. top managers
D. interim managers
E. all of the above
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 3
71. (p. 15) Which of the following is least likely to be a first line manager?
A. a foreman in an auto assembly plant
B. a manager of tellers in a bank
C. a head of a marketing department
D. the head mechanic in a car dealer's service department
E. none of the above
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 3
1-46
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Chapter 01 - Managers and Managing
72. (p. 16) When we say that the top managers of an organization are responsible for the
performance of all of the departments of the organization, this is another way of saying that
they have:
A. restructuring responsibilities
B. technical responsibilities
C. global responsibilities
D. cross-departmental responsibilities
E. competitive responsibilities
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 3
73. (p. 16) The top management of an organization must devote more time to
________________ than lower level managers do.
A. planning and organizing
B. leading
C. controlling
D. vision
E. motivation
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 3
74. (p. 16) The ability to analyze and diagnose a problem situation and distinguish between
cause and effect is a:
A. human skill
B. negotiating skill
C. technical skill
D. conceptual skill
E. none of the above
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 4
1-47
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Chapter 01 - Managers and Managing
75. (p. 18) The ability to understand, lead, and control the behavior of other workers is a
________ skill.
A. conceptual
B. human
C. technical
D. negotiating
E. organizing
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 4
76. (p. 18) The ability of a worker in the accounting department to prepare the organization's
balance sheet is an example of a ________ skill.
A. conceptual
B. first-line
C. human
D. technical
E. none of the above
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Easy
Learning Objective: 4
77. (p. 20) When an organization removes a layer of middle managers from the organization's
structure, __________ has occurred.
A. upsizing
B. restructuring
C. a low-cost strategy
D. globalization
E. departmentalizing
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 5
1-48
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Chapter 01 - Managers and Managing
78. (p. 20) The top management team of ABC, Inc., facing financial problems, decides to reduce
the number of middle managers by 10 percent in order to cut costs. This is an example of:
A. innovation
B. restructuring
C. strategy
D. empowerment
E. a self-managed team
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Moderate
Learning Objective: 5
79. (p. 20) Levi Strauss announced that, due to declining global sales, it would lay off 12 percent
of its workforce. This was an example of:
A. a low-cost strategy
B. innovation
C. restructuring
D. empowerment
E. none of the above
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Moderate
Learning Objective: 5
80. (p. 21) When an organization gives broader responsibilities for decision-making to first-line
supervisors, this is called:
A. restructuring
B. downsizing
C. empowerment
D. departmentalizing
E. creating a self-managed team
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 5
1-49
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Chapter 01 - Managers and Managing
81. (p. 21) TWA allows the agent-in-charge at the gate to decide whether to give out a "free
ticket" to some passengers when a flight is overbooked. This is an example of:
A. innovation
B. restructuring
C. TQM
D. empowerment
E. outsourcing
Empowerment includes the expansion of employees' decision-making responsibilities.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 5
82. (p. 21) A credit card company allows a customer service representative to decide if a late fee
of $25 should be waived for a customer whose monthly payment was a few days late and who
has called to complain about this charge. This is an example of:
A. restructuring
B. TQM
C. total quality management
D. empowerment
E. innovation
Empowerment includes the expansion of employees' decision-making responsibilities.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 5
1-50
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Chapter 01 - Managers and Managing
83. (p. 22) The discussion of IBM in the text shows how an organization can become more
effective by using:
A. Outsourcing
B. Self-managed teams
C. Extensive training
D. Restructuring
E. Empowerment
AACSB: Group/individual dynamics (10) and Information technology (12)
Bloom's: Knowledge
Difficulty: Moderate
Learning Objective: 5
84. (p. 22-29) Which of the following is NOT identified in the text as one of the challenges for
managing in a global environment?
A. building competitive advantage
B. maintaining ethical standards
C. managing a diverse workforce
D. building a strong bureaucratic structure
E. utilizing new kinds of information systems and technology
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 6
85. (p. 23) Wal-Mart built distribution warehouses so that it can supply products to its stores
within a 200-mile radius almost daily. We say that Wal-Mart has achieved:
A. empowerment
B. a competitive advantage
C. increased quality
D. increased innovation
E. none of the above
A competitive advantage is the ability of one organization to outperform its competition
because it produces desired goods or services more efficiently and effectively than they do.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 6
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Chapter 01 - Managers and Managing
86. (p. 24) At Acme Explosives, workers are organized into quality control teams and are given
the responsibility of continuously improving their performance. This is an example of:
A. MBO
B. SEC
C. EPA
D. TQM
E. none of the above
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Easy
Learning Objective: 6
87. (p. 24) The process of creating new products that customers want to purchase is called:
A. responsiveness
B. TQM
C. quality
D. innovation
E. restructuring
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 6
88. (p. 26) The effect(s) of pressure to perform on organizations can be:
A. pressure causes managers to question current procedures and policies
B. pressure induces managers to behave unethically with customers
C. pressure induces managers to behave unethically with employees
D. pressure causes managers to find better ways to manage
E. all of the above
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 6
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Chapter 01 - Managers and Managing
Essay Questions
89. (p. 6-7) Discuss the relationship between "efficiency" and "effectiveness" and how they
impact the performance of an organization.
Efficiency is the measure of how well the organization uses its resources to achieve its goals.
Effectiveness is a measure of the "appropriateness" of the goals selected for the particular
organization and the degree to which the organization achieves these goals. Organizational
performance should increase in direct proportion to increases in both efficiency and
effectiveness.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 1
90. (p. 7) What are the benefits of studying management?
(1) Managers decide how to use many of a society's most valuable resources, so
understanding what managers do and how they do it is important; (2) almost everyone deals
with managers; understanding management helps people deal with bosses and coworkers; (3)
the job pays well and is interesting and satisfying to most people.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 1
91. (p. 8-10) Identify and describe the three steps in the planning process. Explain how they
could be applied, using the example of a new company that was about to enter the computer
software field in developing custom accounting software for small businesses (less than $1
million in annual sales).
The software company needs to (1) determine which goals it will pursue, (2) decide what it
will do to attempt to accomplish these goals, and (3) decide how it will allocate its resources
in order to achieve these goals.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 2
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Chapter 01 - Managers and Managing
92. (p. 9) What is strategy? This chapter in the text discusses two basic strategies. Identify them,
explain briefly what they are, and give examples of each from an industry other than PC's.
The text discusses (1) low-cost strategy (producing goods or services more cheaply than
competitors and charging lower prices) and (2) differentiation (delivering new, unique
products to customers).
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 2
93. (p. 13-14) Mintzberg described ten major roles that managers play within the organization.
Discuss any three of these roles and give one practical business example of a manager
operating in each role that you have chosen.
Mintzberg described interpersonal (figurehead, leader, liaison), informational (monitor,
disseminator, spokesperson), and decisional (entrepreneur, disturbance handler, resource
allocator, and negotiator) categories.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Moderate
Learning Objective: 3
94. (p. 15-16) Identify three levels of management. Explain the basic responsibilities and give an
example of each.
The three levels are first-line, middle, and top managers. First-line managers are responsible
for the daily supervision of non-managerial employees. Middle managers are responsibility
for finding the best way to use resources to achieve organizational goals. Top managers are
responsible for establishing organizational goals, deciding how departments should interact,
and monitoring the performance of middle managers.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 3
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Chapter 01 - Managers and Managing
95. (p. 16-19) Identify and briefly define the three major types of managerial skills that managers
need.
Conceptual skills: analyzing, diagnosing situations, distinguishing between cause and effect.
Human skills: understanding, altering, leading, and controlling the behavior of individuals and
groups.
Technical skills: job-specific knowledge and techniques needed to perform an organizational
role.
AACSB: Group/individual dynamics (10)
Bloom's: Knowledge
Difficulty: Moderate
Learning Objective: 4
96. (p. 18) Identify and discuss three of the "human skills" that a good manager needs to
possess. For each, give a realistic business example of how a manager could use each of these
three skills.
Human skills include (1) understanding (empathizing, valuing differences, sensitivity,
listening); (2) altering (influencing people to change); (3) leading (motivating, challenging);
(4) controlling the behaviors or other individuals and groups.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Moderate
Learning Objective: 4
97. (p. 18) What is a "core competency"? How is it related to a competitive advantage? Give an
example of each concept from an industry other than PC's or specialty supermarkets.
A core competency is a specific set of skills, knowledge, and experience that allows one
organization to outperform another.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 4
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Chapter 01 - Managers and Managing
98. (p. 18-19) Identify and discuss what is meant by the "technical skills" of a manager. For each,
give a practical business example of how managers use these skills in their everyday activities
for a particular managerial job, e.g., Accounting Manager, Restaurant Manager.
Technical skills are the knowledge and techniques needed to perform an organizational role
that are also needed for managers to supervise those roles effectively. For example, an
Accounting Manager should be skilled in relevant areas of accounting practices.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 4
99. (p. 20) "Restructuring" is a popular management technique in recent business experience
within the United States. Define this term. Discuss both its positive and negative effects on
the business that is restructured.
Restructuring is downsizing an organization by eliminating the jobs of large numbers of top,
middle, and first-line managers and nonmanagerial employees. The positive effects lie
primarily in a reduction of overhead costs from the salaries and benefits associated with the
managers who have been laid off in the restructuring efforts. The negative effects include a
reduction in morale among the employees who are left to work in the organization, an
increased feeling of job insecurity among employees who are left in the organization, and a
reduction in customer service quality because of fewer employees remaining to deal with
customer complaints and concerns.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Moderate
Learning Objective: 5
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Chapter 01 - Managers and Managing
100. (p. 21) How has IT been used to empower employees and facilitate self-managed teams?
How can first-line and middle managers use IT to help them manage better?
IT expands employees' job knowledge and increases the scope of their job responsibilities,
increasing employees' autonomy and responsibility. For self-managed teams, IT provides
them with real-time information about performance, and a self-managed team can often find
ways to work more efficiently and also assume many tasks and responsibilities previously
performed by managers.
AACSB: Group/individual dynamics (10)
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 5
101. (p. 21-22) Define the two major trends of empowerment and self-managed work teams, and
give a realistic business example of each of these.
The two major changes are empowerment (expanding the workers' tasks and responsibilities)
and self-managed teams (supervise their own activities and monitor the quality of their
outputs). Both of these changes allow workers to assume more responsibility for the quality of
their work.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Moderate
Learning Objective: 5
102. (p. 23-26) Identify and discuss the "four building blocks" of competitive advantage. For
each, give an example of a company that you feel uses these building blocks successfully.
The four blocks are increasing efficiency, innovation, customer responsiveness, and quality.
AACSB: Group/individual dynamics (10)
Bloom's: Application
Difficulty: Hard
Learning Objective: 6
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Chapter 01 - Managers and Managing
103. (p. 28-29) The text discusses how Union Bank took advantage of diversity to increase its
competitive advantage. Describe what they did.
Among other actions, Union Bank created marketing groups composed of employees of
particular ethnic groups to target particular markets of similar ethnicity. They also hired
proportionately more people of certain demographics in various branches to match the
profiles of local populations. They used diverse teams to increase the quality of decisions, and
in general their actions toward minorities improved the reputation of the bank as a place for
minorities to work.
AACSB: Group/individual dynamics (10) and diversity (5)
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 6
104. (p. 28-29) Today, American companies are experiencing a more diverse workforce than ever
before. Discuss three of the areas in which managers today "need to treat their human
resources in a fair and equitable manner" in terms of diversity issues.
Organizations need to engage in legal and fair hiring practices that do not discriminate. They
need to adapt reward and other motivation programs and systems to appeal to diverse
workers. They can take advantage of diversity in the workforce to market to diverse
customers. They can take advantage of diversity to be more creative in problem solving and
decision-making.
AACSB: Group/individual dynamics (10) and diversity (5)
Bloom's: Comprehension
Difficulty: Hard
Learning Objective: 6
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