CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
Test Correlation Table
Question Types/Level of Difficulty
LEARNING GOALS
1. Explain why managerial
competencies are important.
2. Discuss the basic
functions and levels of
management.
3. Describe the competencies
used in managerial work and
assess your current
competency levels.
Easy
Moderate
Difficult
TF
3, 5, 7
1, 2, 4, 8
6
MC
1, 2, 3, 6
8, 12, 14
ES
4, 5, 7, 9,
10, 11, 13

1, 2

TF
11, 12, 21
9, 10, 13,
15, 16, 17,
18, 19
14, 20
MC
25, 31, 33,
41, 42, 51,
55, 56, 60
16, 18, 19,
20, 21, 23,
26, 27, 28,
29, 30, 32,
35, 36, 40,
45, 46, 48,
50, 53, 59,
61
15, 17, 22,
24, 34, 37,
38, 39, 43,
44, 47, 49,
52, 54, 57,
58, 62
ES

3
4, 5
TF
23, 29
22, 24, 25,
26, 28, 30,
31,33, 34,
35, 36
27, 32
MC
63, 64, 69,
70, 78, 79,
87, 93, 95
66, 67, 68,
71, 75, 80,
81, 83, 84,
85, 86, 89,
91, 92, 94,
97, 98, 100,
101
65, 72, 73,
74, 76, 77,
82, 88, 90,
96, 99
ES

6, 8
7
1
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
True/False Questions
Learning Goal 1
1.
Anne Mulcahy, CEO of Xerox, learned that one of the first things you need to do as CEO
of a company is to listen and learn from customers.
ANSWER: T, Knowledge, Moderate, p. 3
AACSB:: Analytic, Creation of Value
2.
Xerox has successfully introduced numerous new products and services in high-growth
areas.
ANSWER: T, Knowledge, Moderate, p. 3
AACSB: Analytic, Creation of Value
3.
When Anne Mulcahy joined Xerox, the company was financially solvent.
ANSWER: F, Knowledge, Easy, p. 3
AACSB: Analytic, Creation of Value
4.
Fortune magazine includes “the ability to attract, develop, and keep talented people” as
one of the key factors used to establish its list of Most Admired Companies.
ANSWER: T, Knowledge, Moderate, p. 4
AACSB: Analytic, Creation of Value
5.
Managerial competencies are sets of knowledge, skills, behaviors, and attitudes that a
person needs to be effective in a wide range of positions and various types of
organizations.
ANSWER: T, Knowledge, Easy, p. 4
AACSB: Analytic, Creation of Value
6.
An organization is any structured group of people working independently to achieve
certain goals.
ANSWER: F, Application, Difficult, p. 6
AACSB: Reflective Thinking, Creation of Value
7.
Managerial competencies are useful for most individuals, even if you do not have a job
with the word manager in the title.
ANSWER: T, Knowledge, Easy, p. 7
AACSB: Analytic, Creation of Value
8.
Most employees contribute to organizations through group work rather than just through
individual contributions.
ANSWER: F, Knowledge, Moderate, p. 7
AACSB: Analytic, Creation of Value
2
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
Learning Goal 2
9.
Managerial functions are linked.
ANSWER: T, Knowledge, Moderate, p. 9
AACSB: Analytic, Creation of Value
10.
At the U.S. Postal Service, the degree of job specialization is low.
ANSWER: F, Knowledge, Moderate, p. 9
AACSB: Analytic, Creation of Value
11.
Planning involves determining organizational goals and the means to reach them.
ANSWER: T, Knowledge, Easy, p. 9
AACSB: Analytic, Strategy
12.
Small businesses typically clearly differentiate among levels of management.
ANSWER: F, Knowledge, Easy, p. 11
AACSB: Analytic, Creation of Value
13.
First-line managers may be called sales managers, section heads, production
supervisors, or team leaders, depending on the organization.
ANSWER: T, Knowledge, Moderate, p. 11
AACSB: Analytic, Creation of Value
14.
The greater emphasis on managing group performance and allocating resources
represent the most important differences between first-line and middle managers.
ANSWER: T, Knowledge, Difficult, p. 12
AACSB: Analytic, Creation of Value
15.
Middle managers are often involved in reviewing the work plans of various groups,
helping these groups set priorities, and negotiating and coordinating their activities.
ANSWER: T, Knowledge, Moderate, p. 12
AACSB: Analytic, Group Dynamics
16.
Larry Kellner is the CEO of Continental Airlines. As a top manager, Kellner’s primary
management function is controlling.
ANSWER: F, Application, Moderate, p. 13
AACSB: Reflective Thinking, Creation of Value
17.
When looking for an opportunity to expand Oracle’s product line into software, Larry
Ellison, CEO, viewed store sales as the main strategy.
ANSWER: F, Knowledge, Moderate, p. 13
AACSB: Analytic, Strategy
3
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
18.
Oracle’s change in strategy put it in competition with SAP, SAS, IBM, and Siebel
Systems.
ANSWER: T, Knowledge, Moderate, p. 13
AACSB: Analytic, Strategy
19.
Middle managers spend little time directly controlling the work of others.
ANSWER: T, Knowledge, Moderate, p. 14
AACSB: Analytic, Creation of Value
20.
Top managers conduct a great deal of their leadership activity with people in
organizations other than their own.
ANSWER: T, Knowledge, Difficult, p. 14
AACSB: Analytic, Creation of Value
21.
Top managers spend more than seventy-five percent of their day organizing and
controlling the work of others.
ANSWER: F, Knowledge, Easy, p. 14
AACSB: Analytic, Creation of Value
Learning Goal 3
22.
In theory, six managerial competencies are essential for effectiveness. In practice,
knowing where one competency begins and the other ends is difficult, and some or all
need to be relied upon at different times.
ANSWER: T, Application, Moderate, p. 14
AACSB: Reflective Thinking, Creation of Value
23.
Communication competency includes both formal and informal communication as well as
the ability to negotiate.
ANSWER: T, Knowledge, Easy, p. 15
AACSB: Communication, Creation of Value
24.
Of the six managerial competencies, communication is the most fundamental.
ANSWER: T, Knowledge, Moderate, p. 15
AACSB: Communication, Creation of Value
25.
Formal communication can take place at a personal level, such as during conversation
with suppliers and clients.
ANSWER: T, Knowledge, Moderate, p. 16
AACSB: Communication, Creation of Value
4
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
26.
As discussed in the Ethical Challenge, the decision to close plants and lay off employees
is one way to help save Ford Motor Company.
ANSWER: F, Knowledge, Moderate, p. 17
AACSB: Ethics, Ethical Responsibilities
27.
The Container Store has been able to retain employees and attract new employees by
focusing on cost control and communication.
ANSWER: F, Knowledge, Difficult, p. 18
AACSB: Analytic, Creation of Value
28.
“Understanding vision and values” is the first step for any team project and usually is the
responsibility of a manager or team leader.
ANSWER: F, Knowledge, Moderate, p. 20
AACSB: Analytic, Creation of Value
29.
In a recent study of more than 400 organizations and 80,000 managers, the Gallup
Organization found that the best managed companies used employee teams.
ANSWER: T, Knowledge, Easy, p. 20
AACSB: Analytic, Creation of Value
30.
When people think of teamwork, they realize the importance of making a distinction
between the team members and a team leader.
ANSWER: F, Knowledge, Moderate, p. 20
AACSB: Analytic, Group Dynamics
31.
At Whole Foods Market, the first principle that defines how the company operates is “all
work is teamwork”.
ANSWER: T, Knowledge, Moderate, pp. 21-22
AACSB: Analytic, Group Dynamics
32.
Among the components of strategic action competency, understanding the industry is
highly important.
ANSWER: T, Knowledge, Difficult, p. 23
AACSB: Analytic, Creation of Value
33.
A manager’s multicultural competency is reflected in cultural knowledge and
understanding, and an openness and sensitivity to cultural differences.
ANSWER: T Knowledge, Moderate, p. 24
AACSB: Diversity, Creation of Value
34.
Openness and sensitivity involve recognizing that culture makes a difference in how
people think and act.
ANSWER: T, Knowledge, Moderate, p. 24
AACSB: Analytic, Creation of Value
5
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
35.
Taking responsibility for your life at work and at home illustrates teamwork competency.
ANSWER: F, Knowledge, Moderate, p. 26
AACSB: Analytic, Creation of Value
36.
For new college graduates, surveys reveal that building a family is a top priority for the
majority of respondent.
ANSWER: T, Knowledge, Moderate, p. 27
AACSB: Analytic, Creation of Value
Multiple Choice Questions
1.
Challenge of Managing
Which of the following is not one of Anne Mulcahy’s strategies for the Xerox turnaround?
a. examined what business they were in
b. negotiated a settlement of a long investigation into fraudulent accounting practices
c. centralized purchasing to main locations
d. introduced new products and services
ANSWER: C, Knowledge, Moderate, p. 3
AACSB: Analytic, Creation of Value
2.
Anne Mulcahy found that to remain competitive, she must keep her management team
focused on:
a. reduction of operating expenses
b. growth while maintaining cost controls
c. future mission and vision
d. alignment to national goals
ANSWER: B, Knowledge, Moderate, p. 4
AACSB: Analytic, Creation of Value
Learning Goal 1
3.
Managerial Competencies
A _____________is a combination of knowledge, skills, behaviors, and attitudes that
contribute to personal effectiveness.
a. manager
b. entrepreneur
c. competency
d. strategy
ANSWER: C, Knowledge, Moderate, p. 4
AACSB: Analytic, Creation of Value
6
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
4.
Which of the following is not considered a key managerial competency?
a. communication
b. teamwork and strategic action
c. multicultural and self-management
d. entrepreneurship
ANSWER: D, Knowledge, Easy, p. 5
AACSB: Analytic, Creation of Value
5.
A(n) ______________ has a structure and strives to achieve goals that individuals acting
alone could not reach.
a. organization
b. manager
c. competency
d. not-for-profit group
ANSWER: A, Knowledge, Easy, p. 6
AACSB: Analytic, Creation of Value
6.
All organizations have the same overall goals, but their specific goals are unique. A
specific goal at Xerox is to ____________.
a. create innovative cameras
b. become a premier supplier
c. deliver internet services
d. reduce employee turnover
ANSWER: B, Knowledge, Moderate, p. 6
AACSB: Analytic, Creation of Value
7.
A ___________ is a person who plans, organizes, directs, and controls the allocation of
human, material, financial, and information resources in pursuit of the organization’s
goals.
a. organization
b. CEO
c. functional officer
d. manager
ANSWER: D, Knowledge, Easy, p. 7
AACSB: Analytic, Creation of Value
8.
Which of the following position(s) is typically not considered a manager?
a. CEO
b. computer programmer
c. Chief Information Officer
d. coach
ANSWER: B, Knowledge, Difficult, p. 7
AACSB: Analytic, Creation of Value
7
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
9.
Which of the following is not one of the duties of Anne Mulcahy, CEO at Xerox?
a. restructuring Xerox
b. creating a work environment
c. performing a service call
d. implementing a corporate merger
ANSWER: C, Knowledge, Easy, p. 7
AACSB: Analytic, Creation of Value
10.
The term ____________refers to the tasks and activities involved in directing an
organization or one of its units: planning, organizing, leading, and controlling.
a. data processor
b. manager
c. management
d. functional coordinator
ANSWER: B, Knowledge, Easy, p. 7
AACSB: Analytic, Creation of Value
11.
_______________ managers supervise employees having expertise in one area.
a. General
b. First-line
c. Functional
d. Executive
ANSWER: C, Knowledge, Easy, p. 8
AACSB: Analytic, Creation of Value
12.
Which of the following statements is false?
a. Functional managers may be the head of a payroll department.
b. Functional managers often oversee several general managers.
c. Functional managers may be responsible for making sure that payroll checks are
issued on time and in the correct amounts.
d. General managers may be responsible for a strategic business unit or a division.
ANSWER: B, Knowledge, Difficult, p. 8
AACSB: Analytic, Creation of Value
13.
General managers usually have ___________managers reporting to them.
a. country
b. top
c. regional
d. functional
ANSWER: D, Knowledge, Easy, p. 8
AACSB: Analytic, Creation of Value
8
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
14.
One who understands the workings of a business enterprise is aware of the fact that in
large organizations, managers may be distinguished by the scope of the activities they
manage. Therefore, which of the following statements is accurate?
a. Functional mangers supervise employees with general skills that may be applied to
many roles.
b. General Managers supervise employees with specialized skills in a single area.
c. General Managers may be responsible for the operation of a department, but only if it
is very small.
d. General Managers are responsible for the overall operations of a more complex unit
such as a company or division.
ANSWER: D, Application, Difficult, p. 8
AACSB: Reflective Thinking, Creation of Value
Learning Goal 2
15.
Basic Functions and Levels
In what specific sequence do managers perform their managerial functions in order to
achieve company goals?
a. planning, organizing, leading, controlling
b. organizing, leading, controlling, planning
c. leading, controlling, planning, organizing
d. None of the above because the functions are often performed simultaneously.
ANSWER: D, Knowledge, Difficult, p. 9
AACSB: Analytic, Creation of Value
16.
American Express’ decision to grow their customer base, and establish global partners
is an example of which managerial function?
a. organizing
b. planning
c. directing
d. controlling
ANSWER: B, Application, Moderate, p. 9
AACSB: Diversity, Creation of Value
17.
All of the following are reasons managers plan except:
a. coordinating human, material, and information resources.
b. establishing an overall direction for the organization’s future.
c. identifying and committing the organization’s resources to achieving its goals.
d. deciding which tasks must be done to reach those goals.
ANSWER: A, Knowledge, Difficult, p. 9
AACSB: Analytic, Creation of Value
18.
Managers can better coordinate human, material, and information resources by:
a. organizing effectively.
b. delegating issues.
c. leading team members.
d. focusing on issues.
ANSWER: A, Knowledge, Moderate, p. 9
AACSB: Analytic, Creation of Value
9
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
19.
In the _________ process managers set standards of performance, measure current
performance against those standards, take action to correct any deviations, and adjust
the standards if necessary.
a. planning
b. organizing
c. leading
d. controlling
ANSWER: D, Knowledge, Moderate, p. 10
AACSB: Analytic, Creation of Value
20.
Howard Schultz, CEO of Starbucks, believes that its success is due to competitive spirit,
ability to respond to customers’ needs, and its ____________ process.
a. leading
b. planning
c. controlling
d. organizing
ANSWER: C, Application, Moderate, p. 10
AACSB: Reflective Thinking, Creation of Value
21.
YUM! Brands is divided into five distinct restaurant brands for the purpose of serving the
specialized needs of customers. What managerial function is being employed to
achieve this type of clarity?
a. organizing
b. planning
c. leading
d. controlling
ANSWER: A, Application, Moderate, p. 10
AACSB: Reflective Thinking, Creation of Value
22.
When Lois Dimpfel, vice president of IBM Worldwide Olympic Technology Systems,
was organizing the team to bring the Salt Lake City Games to millions of TV viewers,
she was primarily involved in the _______________ managerial function.
a. planning
b. controlling
c. organizing
d. leading
ANSWER: D, Application, Difficult, p. 10
AACSB: Reflective Thinking, Creation of Value
23.
Kerry Smith has just moved into a top-level managerial role with Pepsi products. Which
of the following is not part of the planning process Smith will be engaged in?
a. establishing directions for the organization
b. identifying the organization's resources to achieve organizational goals
c. committing the organization's resources to achieve organizational goals
d. structuring relationships among employees that will enable them to carry out
management's plans and meet specific goals
ANSWER: D, Application, Moderate, p. 13-14
AACSB: Reflective Thinking, Creation of Value
10
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
24.
Starbucks attributes its success to the managerial function of ______________, which
includes control procedures such as the criteria used to hire people, the type of coffee
beans used, and the physical layout of stores.
a. planning
b. controlling
c. directing
d. organizing
ANSWER: B, Application, Difficult, p. 10
AACSB: Reflective Thinking, Creation of Value
25.
The planning function is the dynamic process of making decisions that focuses on
___________.
a. outsourcing
b. past performance
c. future performance
d. technical skills
ANSWER: C, Knowledge, Easy, p. 9
AACSB: Analytic, Creation of Value
26.
Once managers have defined goals for future performance, they must translate those
relatively abstract desires into reality. The coordination effort to do this represents
____________.
a. organizing
b. planning
c. controlling
d. leading
ANSWER: A, Knowledge, Moderate, p. 9
AACSB: Analytic, Creation of Value
27.
The _______________ managerial function concerns itself with assigning workers to
departments.
a. planning
b. controlling
c. organizing
d. leading
ANSWER: C, Application, Moderate, p. 9
AACSB: Reflective Thinking, Creation of Value
28.
Michelle Gimbert, a regional vice-president for Chico’s stores, allowed her store
managers the freedom to run their operations as though they were separate
businesses. By __________ in a new way, Gimbert was attempting to better coordinate
the company's human and material resources.
a. organizing
b. controlling
c. staffing
d. planning
ANSWER: A, Application, Moderate, p. 10
11
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
AACSB: Reflective Thinking, Creation of Value
29.
After management has made plans, created a structure, and hired the right personnel,
someone must ____________________ the organization over time.
a. control
b. measure the efficiency of
c. lead
d. assess the effectiveness of
ANSWER: C, Knowledge, Moderate, p. 10
AACSB: Analytic, Creation of Value
30.
Lois Dimple, vice president of IBM Worldwide Olympic Technology Systems, knew she
needed to plan, organize, and lead simultaneously to complete the task assigned to her.
What was Dimple’s responsibility?
a. coordinate the summer Olympic games in Atlanta
b. coordinate the summer Olympic games in Sydney
c. coordinate the winter Olympic games in Utah
d. create a system supplying real time Internet coverage of the games
ANSWER: C, Knowledge, Moderate, p. 10
AACSB: Analytic, Creation of Value
31.
____________ involves getting others to perform tasks necessary to achieve the
organization’s goals.
a. Organizing
b. Controlling
c. Leading
d. Attenuation
ANSWER: C, Knowledge, Easy, p. 10
AACSB: Analytic, Creation of Value
32.
The process by which a person, group, or organization consciously monitors
performance and takes corrective action is referred to as __________.
a. autocracy
b. leading
c. controlling
d. organizing
ANSWER: C, Knowledge, Moderate, p. 10
AACSB: Analytic, Creation of Value
33.
Managers are often classified into these major types:
a. monitors, leaders, and coordinators
b. top managers, middle managers, and first-line managers
c. assistants, associates, and executives
d. presidents, vice presidents, and directors
ANSWER: B, Knowledge, Easy, p. 11
AACSB: Analytic, Creation of Value
12
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
34.
Which of the following is not a factor in determining whether a first-line manager will be
successful?
a. has a strong technical expertise to teach subordinates
b. is willing to let subordinates do the work
c. plans and schedules work for employees
d. has sales or marketing experience before becoming manager
ANSWER: D, Knowledge, Difficult, pp. 12–13
AACSB: Analytic, Creation of Value
35.
Lawrence Davis has been working for BPAmoco for three years. He recently was
promoted to production supervisor. Allie Wagner supervises sales associates who go to
people's homes and sell insurance. Both positions may be classified as a ___________
manager.
a. matrix
b. middle
c. functional
d. first-line
ANSWER: D, Application, Moderate, pp. 11-12
AACSB: Reflective Thinking, Creation of Value
36.
Sallie Schwall is the type of manager who leads a hectic work life full of interruptions.
Her job is constantly on the “firing line.” From this description, Schwall would be
considered a(n) ___________ manager.
a. bureaucratic
b. task force
c. first-line
d. effective
ANSWER: C, Application, Moderate, pp. 11-12
AACSB: Reflective Thinking, Creation of Value
37.
Leslie Iler is a sales manager with Ford Motor Company. For the most part, Iler’s
subordinates see her as a team leader in their project. Iler’s position represents a
__________.
a. component of a matrix organizational design
b. first-line manager
c. distinct division of staff and line positions
d. component of a mechanistic organizational design
ANSWER: B, Application, Difficult, pp. 11-12
AACSB: Reflective Thinking, Creation of Value
13
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
38.
Jeff Raley is a manager with Hermann Hospital. He has saved the hospital hundreds of
thousands of dollars by developing and implementing a new quality control system for
purchasing supplies for all teams in the hospital. It is likely that Raley is a ________
manager.
a. project
b. top
c. first-line
d. middle
ANSWER: D, Application, Difficult, pp. 11-12
AACSB: Reflective Thinking, Creation of Value
39.
The most important managerial task performed by first-line managers is usually ______.
a. managing multiple departments
b. coordinating teams
c. scouting for possible take-over targets
d. managing individual performance
ANSWER: D, Knowledge, Difficult, pp. 11-12
AACSB: Analytic, Creation of Value
40.
Todd Reppert of Ballpark Hot Dogs describes his job as ringmaster. He tries to balance
the health department's demands for clean kiosks, vendors' demands for supplies, and
his first-line manager's demand for recruiting new employees to staff the company's 25
kiosks in Tampa. Reppert is considered to be at what level of management?
a. top management
b. first-line management
c. middle management
d. intermediate management
ANSWER: C, Application, Moderate, p. 12
AACSB: Reflective Thinking, Creation of Value
41.
Typical job titles of middle managers include all of the following except:
a. department head
b. sales manager
c. director of finance
d. All of the above are considered job titles for middle managers.
ANSWER: B, Knowledge, Easy, p. 12
AACSB: Analytic, Creation of Value
42.
Norma Inafuku at Oreck Vacuums finds herself translating top management's strategy
for increasing sales into tangible quotas for production plant managers. Inafuku would
be considered to be at what level of management?
a. top management
b. first-line management
c. middle management
d. intermediate management
ANSWER: C, Application, Easy, p. 12
AACSB: Reflective Thinking, Strategy
14
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
43.
Linda Thompson has recently been promoted to a middle manager with Fargo Industries.
She wanted to know what task most middle managers considered important. She found
out that the key task was ______________.
a. managing individual performance
b. coordinating teams
c. managing group performance and allocating resources
d. representing one's subordinates
ANSWER: C, Application, Difficult, p. 12
AACSB: Reflective Thinking, Creation of Value
44.
Kayla Cook is a manager with Randalls. Her responsibilities partially include establishing
target dates for products and developing evaluation criteria for performance. These
responsibilities are primarily associated with _____________ management.
a. first-line
b. team
c. top
d. middle
ANSWER: D, Application, Difficult, p. 12
AACSB: Reflective Thinking, Creation of Value
45.
Holly Varni of Top’s Bakery is responsible for directing and coordinating the activities of
first-line managers. Holly’s position would best be classified as a ________.
a. top manager
b. second-line manager
c. project leader
d. middle manager
ANSWER: D, Application, Moderate, p. 12
AACSB: Reflective Thinking, Creation of Value
46.
A large electronics manufacturer has recently hired Susan Vining. Her responsibilities
include motivating and disciplining project leaders, keeping track of performance and
providing feedback, and improving communications and productivity of the various
projects. These responsibilities are closely affiliated with ____________ management.
a. project
b. first-line
c. middle
d. top
ANSWER: C, Application, Moderate, p. 12
AACSB: Analytic, Creation of Value
47.
Which of the following is a middle manager not likely to do?
a. encourage first-line managers to voice their concerns directly to top management
b. establish target dates for product completion
c. set performance standards
d. coordinate her activities with other middle managers
ANSWER: A, Knowledge, Difficult, p. 12
AACSB: Analytic, Creation of Value
15
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
48.
Martha Goodrum’s promotion to manager of Cafe Express has been met with 70-hour
workweeks starting at 3 a.m. She must meet a profit target by using company mandated
sales strategies. What type of manager is Goodrum?
a. first line
b. middle
c. top
d. matrix
ANSWER: B, Application, Moderate, p. 12
AACSB: Reflective Thinking, Creation of Value
49.
Sam Shichijo is attempting to establish target dates for his division. Further, he has
been involved in developing evaluation criteria for the performance of his employees and
supervisors. He is a little overwhelmed with deciding which projects should be given
money, personnel, and materials. Shichijo would most likely be classified as a
___________ manager.
a. first-line
b. hands-on
c. strategic
d. middle
ANSWER: D, Application, Difficult, p. 12
AACSB: Reflective Thinking, Creation of Value
50.
Mando Nava is responsible for translating top management policies into specific goals.
Nava’s position would best be classified as a __________.
a. middle manager
b. first-line employee
c. section coordinator
d. tactical supervisor
ANSWER: A, Application, Moderate, p. 12
AACSB: Reflective Thinking, Creation of Value
51.
Typical job titles of top managers include all of the following except:
a. chairman.
b. division president.
c. chief executive officer.
d. All of the above are considered job titles for top managers.
ANSWER: D, Knowledge, Easy, p. 13
AACSB: Analytic, Creation of Value
52.
Larry Ellison, CEO of Oracle, realized that changes needed to be made for Oracle to
succeed. These changes included the creation of:
a. a “Fusion Strategy Council”
b. a development team
c. an enhanced sales program
d. an oversight committee
ANSWER: A, Knowledge, Difficult, p. 13
AACSB: Analytic, Creation of Value
16
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
53.
Oracle’s goal in revising their compensation system was to:
a. reward individual contributions.
b. make it more customer oriented.
c. create competition among their sales people.
d. increase commitment to the organization.
ANSWER: B, Knowledge, Moderate, p. 13
AACSB: Analytic, Creation of Value
54.
Top managers spend most of their day (over 75 percent) planning and leading. They
spend most of their leading time _________.
a. meeting with first-level managers
b. directly involved with employee tasks
c. working with key people outside their own organization
d. controlling middle management decisions
ANSWER: C, Knowledge, Difficult, p. 13
AACSB: Analytic, Creation of Value
55.
Setting the overall direction of an organization is the responsibility of
a. top managers.
b. middle managers.
c. first-line managers.
d. task forces.
ANSWER: A, Knowledge, Easy, p. 13
AACSB: Analytic, Creation of Value
56.
Dylan Summers tells his managers at Visa Card to invest at least 40 percent of their time
in improving self-management of their own ethics, character, and conduct. Summers
operates at the __________ level.
a. functional
b. middle-level marketing
c. top management
d. production management
ANSWER: C, Application, Easy, p. 14
AACSB: Reflective Thinking, Creation of Value
57.
Top managers _ ________.
a. supervise employees with specialized skills that are applied in narrow areas
b. are responsible for the overall direction and operations of an organization
c. are responsible for the operation of an entire department
d. are responsible for the day-to-day operations of a division
ANSWER: B, Knowledge, Difficult, pp. 13–14
AACSB: Analytic, Creation of Value
17
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
58.
Which of the following statements is not representative of top management?
a. Top management is responsible for the overall operations of the organization.
b. Top management determines the amount of earnings that the corporation will report.
c. Top management spends much time talking with other top managers in the company.
d. Top management often represents the organization in community affairs.
ANSWER: B, Knowledge, Difficult, pp. 13–14
AACSB: Analytic, Creation of Value
59.
Lauren Gross feels great pressure and demands in her job at ExxonMobil. Her typical
day involves disposing of twenty-seven pieces of mail, handling six telephone calls per
hour, and going to five meetings each day. Gross is most likely experiencing the
challenges felt by ________________.
a. all employees
b. first-line managers
c. top managers
d. leaders of self-managed teams
ANSWER: C, Application, Moderate, pp. 13–14
AACSB: Reflective Thinking, Creation of Value
60.
Albert Stroucken, president and C.E.O. of H.B. Fuller, was a target of questions several
years ago from the Federal Drug Administration (FDA) and the media after tests
revealed that children in Central America sniff Resistol, a glue used in making shoes.
The children sniff the glue because it provides a temporary euphoria that relieves hunger
and hopelessness in their homes in Honduras and Guatemala. The FDA has charged
that the glue’s fumes can cause brain damage. What managerial position does
Stroucken most likely hold?
a. top manager
b. public relations director
c. middle manager
d. first-line manager
ANSWER: A, Application, Easy, pp. 13-14
AACSB: Reflective Thinking, Creation of Value
61.
Leslie Helms seems to spend days and nights working for General Electric. It seems that
one night she may spend working late at the office and the next night entertaining
business associates. Even when she goes home, Helms uses her study as a branch
office. She is most likely fulfilling the role of
.
a. staff management
b. middle management
c. top management
d. board of director member
ANSWER: C, Application, Moderate, pp. 13-14
AACSB: Reflective Thinking, Creation of Value
18
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
62.
Stephen Lee's typical business week includes using his own technical expertise in metal
framing buildings, keeping good rapport with the community, knowing union and nonunion hiring practices, supervising work crews, and monitoring the financial matters of his
company. Lee is what type of manager?
a. first-line manager
b. a business owner who does all levels of managing
c. middle manager
d. top manager
ANSWER: B, Application, Difficult, pp. 13-14
AACSB: Reflective Thinking, Creation of Value
Learning Goal 3
63.
Managerial Competencies
It takes all of the following managerial competencies to be a great manager except:
a. communication
b. multicultural
c. teamwork
d. technical expertise
ANSWER: D, Knowledge, Easy, p. 14
AACSB: Analytic, Creation of Value
64.
Communication competency is essential to effective managerial performance. Which of
the following activities do not require this competency?
a. meeting face-to-face with customers
b. negotiating via teleconferencing
c. being aware of body language during a meeting
d. all of the above require the communication competency
ANSWER: D, Application, Easy, p. 15
AACSB: Communication, Creation of Value
65.
Which of the following is true concerning informal communication?
a. In China, building a social network is known as guanxi.
b. In Korea, a social network is known as kwankye.
c. Informal communication is often times delivered spontaneously.
d. All of the following are true concerning informal communication.
ANSWER: D, Knowledge, Difficult, p. 16
AACSB: Communication, Creation of Value
66.
Karthik Mahadevan negotiates effectively on behalf of a team over roles and resources,
is skilled at developing relationships and exercising influence upward with superiors, and
takes decisive and fair actions when handling problem subordinates. Mahadevan is
engaged in ___________communication.
a. informal
b. formal
c. negotiation
d. planning
ANSWER: C, Application, Moderate, p. 16
AACSB: Communication, Creation of Value
19
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
67.
Alan Mulally, CEO of Ford Motor Company, has started _____________ to infuse a
sense of innovation in the company.
a. time management programs
b. the Piquette Project
c. resource allocations
d. the Anderson initiative
ANSWER: B, Knowledge, Moderate, pp. 16-17
AACSB: Communication, Creation of Value
68.
Communication competency is featured in the Container Store's "do-unto-others"
philosophy in all of the following except:
a. specialized information technology systems
b. formal training for all employees
c. management commitment to sharing information
d. sales and presentation skills
ANSWER: A, Application, Moderate. p. 18
AACSB: Communication, Creation of Value
69.
Employees at __________ are encouraged to treat customers like they would treat
visitors in their own homes.
a. The Container Store
b. Xerox
c. American Express
d. Wal-Mart
ANSWER: A, Knowledge, Easy, p. 18
AACSB: Analytic, Creation of Value
70.
Garrett Boone and Kip Tindell, CEOs of The Container Store, find that they must
manage their time and delegate effectively because there are more daily problems and
opportunities than they can possibly attend to. This is part of the __________.
a. teamwork competency
b. communication competency
c. planning and administration competency
d. strategic action competency
ANSWER: C, Knowledge, Easy, p. 18
AACSB: Analytic, Creation of Value
71.
Which of the following is not considered a component of the planning and administration
competency?
a. time management
b. arbitration and mediation
c. information gathering, analysis, and problem solving
d. budgeting and financial management
ANSWER: B, Knowledge, Difficult, pp. 18-19
AACSB: Analytic, Creation of Value
20
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
72.
Duane Kirkland monitors information and uses it to identify symptoms, underlying
problems, and alternative solutions. What competency is Kirkland demonstrating?
a. communication
b. planning and administration
c. teamwork
d. strategic action
ANSWER: B, Application, Moderate, pp. 18-19
AACSB: Reflective Thinking, Creation of Value
73.
Easwar Iyer handles several issues and projects at one time but doesn’t spread himself
to thin, monitors and keeps to a schedule or changes the schedule if needed, and works
effectively under time pressure. What dimension of the planning and administration
competency characterizes Iyer’s work?
a. information gathering and analysis
b. planning and organizing projects
c. time management
d. budgeting and financial management
ANSWER: C, Application, Difficult, p. 19
AACSB: Reflective Thinking, Creation of Value
74.
The view of successful teamwork includes all of the following except:
a. a competency that involves taking the lead at times.
b. supporting others who are taking the lead at other times.
c. collaborating with others in the organization on projects that do not even have a
designated team leader.
d. setting the strategic goals for the team.
ANSWER: D, Knowledge, Difficult, p. 20
AACSB: Analytic, Creation of Value
75.
A manager brings conflict and dissent into the open and uses it to enhance the quality of
decision, while at the same time facilitating cooperative behavior and keeping the
department moving toward its goals. What competency is the manager demonstrating?
a. communication
b. planning and administration
c. strategic action
d. teamwork
ANSWER: D, Knowledge, Moderate, p. 20
AACSB: Analytic, Creation of Value
76.
Which of the following is false concerning the teamwork competency?
a. There should be a distinction between the team members and the team leader.
b. Designing a team is the first step for any team project.
c. Managers need to pay attention to team dynamics.
d. Teams that perform well have leaders who act as a coach, counselor, and mentor to
other team members.
ANSWER: A, Knowledge, Difficult, pp. 20–21
21
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
AACSB: Analytic, Creation of Value
77.
The Whole Foods Market developed its employees’ teamwork competency by organizing
its stores into self-managed teams. All of the following are positively effected by an
emphasis on teamwork except:
a. accountability
b. "no secrets" management philosophy
c. labor union relations
d. all of the above
ANSWER: C, Knowledge, Difficult, pp. 21-22
AACSB: Analytic, Creation of Value
78.
The culture at Whole Foods Market is based on __________.
a. knowledge workers
b. communication competency
c. decentralized teamwork
d. time management
ANSWER: C, Knowledge, Easy, pp. 21-22
AACSB: Analytic, Creation of Value
79.
Understanding the organization's overall mission and ensuring that employees' actions
are in alignment defines the __________ competency.
a. strategic action
b. multicultural
c. teamwork
d. self-management
ANSWER: A, Knowledge, Easy, p. 22
AACSB: Analytic, Creation of Value
80.
Strategic action competency includes all of the following except:
a. understanding the organization.
b. balancing work and life issues.
c. anticipation of competitive trends.
d. understanding the industry.
ANSWER: B, Knowledge, Moderate, p. 23
AACSB: Analytic, Creation of Value
81.
A manager quickly recognizes when changes in the industry create significant threats
and opportunities. What competency is the manager demonstrating?
a. strategic action
b. planning and administration
c. teamwork
d. communication
ANSWER: A, Application, Moderate, p. 23
AACSB: Reflective Thinking, Creation of Value
22
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
82.
Yoshi Ando recognizes the management challenges of alternative strategies and
addresses them. What dimension of strategic action competency describes Ando?
a. understanding the organization
b. taking strategic action
c. understanding the industry
d. prioritizing skill
ANSWER: B, Application, Difficult, p. 23
AACSB: Reflective Thinking, Creation of Value
83.
Top managers like John Mackey of Whole Foods or Larry Ellison of Oracle must
perceive changes in the organizational environment and apply the _______________
competency.
a. multicultural
b. communication
c. strategic action
d. all of the above
ANSWER: C, Application, Moderate, p. 23
AACSB: Reflective Thinking, Creation of Value
84.
Robert Siegel, CEO of Lacoste, proved that he was good at understanding the industry in
which he operates. Siegel knew he needed to develop a premium brand and retool
Lacoste’s sporty image. Siegel signed several high-profile celebrities to represent
Lacoste, including all of the following except:
a. news anchor Katie Couric
b. actress Natalie Portman
c. tennis pro Andy Roddick
d. comedian Jerry Seinfeld
ANSWER: D, Knowledge, Moderate, p. 23
AACSB: Analytic, Creation of Value
85.
Multicultural
79.
requires that you have an open attitude and sensitivity to cultures different
from yours. Which of the following is true concerning this competency?
a. A country’s culture seldom affects behavior.
b. Very few American companies have global markets for their services and products.
c. You must recognize that culture makes a difference in how people think and act.
d. Your own culture rarely determines your basic values.
ANSWER: C, Knowledge, Moderate, p. 24
AACSB: Analytic, Creation of Value
86.
Multicultural competency requires __________.
a. cultural openness
b. a reasonable amount of travel
c. classes or instruction
d. all of the above
ANSWER: A, Knowledge, Easy, p. 24
23
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
AACSB: Analytic, Creation of Value
87.
____________ competency includes carrying out an organization’s managerial work by
drawing on the human, financial, and material resources from multiple countries and
serving markets that span multiple countries requires what managerial competency?
a. Strategic action
b. Self-management
c. Multicultural
d. Communication
ANSWER: C, Knowledge, Easy, p. 24
AACSB: Analytic, Creation of Value
88.
_____________ is essential in order to work with people from other backgrounds.
a. Appropriate language
b. Negotiation skills
c. Social etiquette
d. Openness and sensitivity
ANSWER: D, Knowledge, Difficult, pp. 24-25
AACSB: Analytic, Creation of Value
89.
Procter & Gamble decided to change the name of their product in Germany to the more
common global name. Local customers no longer recognized a product that had
previously been familiar, resulting in lost sales volume. This would be considered a
serious ____________ mistake.
a. communication
b. self-management
c. multicultural
d. strategic action
ANSWER: C, Application, Moderate, pp. 24-25
AACSB: Reflective Thinking, Creation of Value
90.
Davis Watson has been assigned to a potentially large volume seasonal rental customer
who brings a crew from Mexico every year. The reason previous salesmen have failed to
get the order is most likely related to __________.
a. integrity and ethical conduct
b. understanding the industry
c. lack of strategic planning
d. cultural knowledge & understanding
ANSWER: D, Application, Difficult, pp. 24-25
AACSB: Reflective Thinking, Creation of Value
91.
Kim Evans, a manager, understands the nature of national, ethnic, and cultural
differences represented on the task force she organized. Evans is demonstrating the
_______________ competency.
a. multicultural
b. self-management
c. communication
d. planning and administration
ANSWER: A Application, Moderate, p. 25
24
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
AACSB: Reflective Thinking, Creation of Value
92.
L’Oréal was concerned about cultural acceptance of the company in China due to a (an)
a. resistance to American products
b. lack of herbal ingredients
c. focus on modern make-up
d. insensitive marketing approach
ANSWER: C, Knowledge, Moderate, p. 25
AACSB: Analytic, Creation of Value
93.
Self-management competency includes all of the following except:
a. integrity and ethical conduct.
b. personal drive and resilience.
c. balancing work and life demands.
d. Self-management competency includes all of the above.
ANSWER: D, Knowledge, Easy, p. 26
AACSB: Analytic, Creation of Value
94.
Juan Rodriguez travels abroad several times a year and is aware of cultural cues and is
able to adapt quickly in novel situations. He oftentimes has to adjust his own behavior
when interacting with people from various national, ethnic, and cultural backgrounds.
What dimension of the multicultural competency is Rodriguez practicing?
a. global management
b. cultural knowledge
c. cultural openness and sensitivity
d. cultural understanding
ANSWER: C, Application, Moderate, p. 26
AACSB: Reflective Thinking, Creation of Value
95.
The __________ competency involves personal integrity, resilience, and development.
a. teamwork
b. planning and administration
c. self-management
d. leadership
ANSWER: C, Knowledge, Easy, p. 26
AACSB: Analytic, Creation of Value
96.
Juanita Brown is willing to make mistakes and accepts responsibility for her own actions.
What dimension of the self-management competency is Brown exhibiting by her
behavior?
a. personal drive and resilience
b. balancing work
c. integrity and ethical conduct
d. balancing life issues
ANSWER: C, Application, Difficult, p. 27
AACSB: Reflective Thinking, Creation of Value
25
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
97.
Current polling data indicates that the qualities employers are the least concerned with in
hiring young employees are:
a. self-management
b. integrity
c. technical skills
d. personality
ANSWER: C, Knowledge, Moderate, pp. 27
AACSB: Analytic, Creation of Value
98.
Jeff Bezos founded Amazon.com with a loan from his parents. Banks and venture capital
firms would not loan to an internet startup company. Bezos is an example of the
__________ required to face setbacks and risk failure in a new business.
a. integrity and interest in the job
b. balance of work and life demands
c. strategic action
d. personal drive and resilience
ANSWER: D, Knowledge, Moderate, p. 27
AACSB: Analytic, Individual Dynamics
99.
In a competitive and highly dynamic work environment, the most difficult management
challenge is predicted to be __________.
a. task related learning
b. balancing work and life issues
c. communication competency
d. maintaining integrity and ethics
ANSWER: B, Knowledge, Difficult, p. 27
AACSB: Analytic, Creation of Value
100. Mike Wichern, a manager, is willing to continually unlearn and relearn as changed
situations call for new skills and perspectives. Wichern is demonstrating the
_____________ competency.
a. self-management
b. multicultural
c. teamwork
d. strategic action
ANSWER: A, Knowledge, Moderate, pp. 27-28
AACSB: Analytic, Creation of Value
101. Employees who fail to take advantage of development and training opportunities offered
by the organization are considered derailed. The most common reasons for derailment
are all of the following except:
a. problems with interpersonal relationships
b. having too broad of a functional perspective
c. inability to lead a team
d. inability to learn, develop, and adapt
ANSWER: B, Knowledge, Moderate, p. 27-28
26
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
AACSB: Analytic, Creation of Value
Essay Questions
Learning Goal 1
1.
Explain why managerial competencies are important.
Managerial competencies are sets of knowledge, skills, behaviors, and attitudes that a
person needs to be effective in a wide range of positions and various types of
organizations. Organizations hire people because they believe that they have the
managerial competencies that will enable them to become star performers.
Managerial competencies can help people excel in different jobs. For senior managers,
a person must master a mix of competencies, not just one or two. Keeping the
managerial competencies in mind will help you think about how you can improve your
performance in the jobs that require you to use them.
Moderate, pp. 4-6
2.
Define managers and management.
Managers establish organizational goals and direct the work of subordinates, on whom
they depend to achieve those goals. Managers acquire and allocate the human and
material resources without which organizations couldn’t exist. Effective management is
essential to the success of an organization.
A manager is a person who plans, organizes, directs, and controls the allocation of
human, material, financial, and information resources in pursuit of the organization’s
goals. The many different types of managers include department managers, product
managers, account managers, plant managers, division managers, district managers,
and task force managers. What they all have in common is responsibility for the efforts
of a group of people who share a goal and access to resources that the group can use
in pursuing its goal. Managers establish organizational goals and then direct the work of
subordinates, whom they depend on to achieve those goals. Managers acquire and
allocate the human and material resources without which organizations couldn’t exist.
Managers are evaluated on how well the people they direct do their jobs.
Management refers to the tasks or activities involved in managing an organization:
planning, organizing, leading, and controlling. Effective management is essential to the
success of an organization.
Moderate, pp. 7–8
27
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
Learning Goal 2
3.
What functions do managers usually perform today? What sets managers apart?
a. Managers are individuals that allocate human and material resources and direct the
operations of a department or an entire organization.
b. Managers achieve an organization's or department's goals for the most part by
arranging for others to do things, not by performing all the tasks themselves.
c. Managers are involved in planning, organizing, leading, and controlling the people
working in an organization to achieve the organization's goals.
d. Goals give direction to the tasks and activities undertaken.
e. Managers are set apart on how well others do their jobs.
Moderate, pp. 8–10
4.
How might you differentiate between the three levels of management? Give an example
of each.
a. First-line managers are directly responsible for the production of goods or services.
They may be called sales managers, section chiefs, or production supervisors,
depending on the organization. Employees who report to them do the organization's
basic production work. This level of management is the link between the production
or operations of each department and the rest of the organization.
b. Middle managers focus on coordinating employee activities, determining which
products or services to provide, and deciding how to market these products or
services to customers. Middle managers receive specific goals and plans for first-line
managers to implement. Middle managers typically have titles such as department
head, plant manager, and director of finance.
c. Top managers are responsible for the overall direction and operations of an
organization. Typical titles of top managers are chief executive officer, president,
chairman, division president, and executive vice president. Top managers set goals
that are handed down through the hierarchy, eventually reaching each worker.
Difficult, pp. 11–14
28
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
5.
Describe three of the four managerial functions and an example of each.
a. Planning involves defining organizational goals and proposing ways to reach them.
Managers plan for three reasons: (1) to establish an overall direction for the
organization's future, such as increased profit, expanded market share, and social
responsibility; (2) to identify and commit the organization's resources to achieving its
goals; and (3) to decide which activities are necessary to do so.
b. Organizing is the process of creating a structure of relationships that will enable
employees to carry out management's plans and meet its goals. By organizing
effectively, managers can better coordinate human and material resources. An
organization's success depends largely on management's ability to utilize those
resources efficiently and effectively.
c. Leading involves communicating with and motivating others to perform the tasks
necessary to achieve the organization's goals. This process is called directing or
influencing.
d. Controlling is the process by which a person, group, or organization consciously
monitors performance and takes corrective action. In the control process, managers
set standards of performance, measure current performance against those
standards, take action to correct any deviations, and adjust the standards if
necessary.
Difficult, pp. 9–10
Learning Goal 3
6.
What are some of the ways that the Container Store applies the communication
competency to getting the best out of its employees?
The Container Store starts with 235 hours of formalized training for new hires. Individual
store managers continue this training culture with an open communication environment
that features new product sales and display training, a teamwork focus, and incentives
specifically tied to goal achievement. "Super sales trainers" are top performers who work
in stores, and are selected from employees who have shown strong leadership and
communication skills.
A "do unto others" philosophy is part of the firm's commitment to open communication
throughout the organization. Management is sensitive to the needs of a large percentage
of its workforce that are minorities and women. These demographics are reflected in the
customer clientele which is substantially female. All employees are encouraged to treat
customers like they would treat visitors in their homes. Workers are included in regular
discussions of company goals, individual store sales performance, and plans for
expansion.
Moderate, p. 18
29
CHAPTER 1: DEVELOPING MANAGERIAL COMPETENCIES
7.
Describe four of the six managerial competencies.
a. Communication Competency includes informal communication, formal
communication, and negotiation.
b. Planning and Administration Competency includes information gathering, analysis,
and problem solving, as well as planning and organizing projects. Time management
and budgeting and financial management are also included.
c. Teamwork Competency includes designing teams, creating a supporting
environment, and managing team dynamics.
d. Strategic Action Competency includes understanding the industry and the
organization and taking strategic actions.
e. Multicultural Competency includes cultural knowledge and understanding and cultural
openness and sensitivity.
f. Self-Management Competency includes integrity and ethical conduct, personal drive
and resilience, balancing work and life issues, and self awareness and development.
Difficult, pp. 15–27
8.
Many college instructors assign team projects because employers indicate the desire to
hire graduates who know how to work in teams to perform their jobs. What are some of
the teamwork competencies that are being developed when working as student teams?
a. The ability to take the lead and work as a team leader when needed, as well as the
willingness to support a team leader when others have taken the lead.
b. Self-direction of teams involves the formulation of goals, defining of tasks to be
accomplished, and assigning those tasks to group members according to their
interests and abilities.
c. Learning how to create a supportive environment, as well as dealing with conflicts,
disappointments, and frustration.
d. Learning how to get the best out of team members, balancing the contributions of the
more forceful members with those who are more reserved.
Moderate, pp. 20-22
30