Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

CHAPTER 1
MANAGEMENT AND MANAGERS: YESTERDAY, TODAY, AND TOMORROW MULTIPLE-CHOICE QUESTIONS
MANAGEMENT DEFINED recall Answer: D 1. The process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization is called A. planning. B. administration. C. controlling. D. management. E. directing. The art of getting things done through other people was Mary Parket Folletts classic definition of A. organizing. B. management. C. planning. D. controlling. E. administration. Please complete the following sentence in a manner that is consistent with the definition of management. Management is the process of administering and coordinating resources effectively and efficiently in an effort to achieve the __________ of the organization. A. B. C. D. E. operational plan proper administration control goals strategic plan

recall Answer: B

2.

recall Answer: D

3.

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: A

4.

Management is defined as A. the process of administering and coordinating resources effectively and efficiently and in an effort to achieve the goals of the organization. B. the forces acting on or within a person that cause the person to behave in a specific, goal-directed manner. C. a process in which one person or group transmits some type of information to another person or group. D. the system of shared beliefs and values that develops within an organization. E. the interaction between business and society.

recall Answer: A

5.

Using the fewest inputs to generate a given output is called A. efficiency. B. control. C. goal attainment. D. effectiveness. E. planning. Pursuing the appropriate goals and doing the right thing is referred to as A. planning. B. effectiveness. C. goal attainment. D. control. E. efficiency. __________ is defined as using the fewest inputs to generate a given output. A. Planning B. Effectiveness C. Control D. Efficiency E. Goal attainment __________ is defined as pursuing the appropriate goals. A. B. C. D. E. Goal attainment Effectiveness Capability Control Productiveness

recall Answer: B

6.

recall Answer: D

7.

recall Answer: B

8.

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

application Answer: A

9.

Suppose the managers in an auto plant are primarily concerned with training their workers to use the fewest inputs to generate a given level of output. This scenario depicts managers who are primarily focused on

recall Answer: E

A. efficiency. B. effectiveness. C. directing. D. controlling. E. strategic planning. 10. Suppose the managers of a theme park are primarily concerned with pursuing appropriate goals such as providing their guests the optimal mix of attractions, restaurants, and shops. This scenario depicts managers who are primarily focused on A. directing. B. controlling. C. planning. D. efficiency. E. effectiveness. 11. Imagine that you are a manager of a mutual fund where you are held responsible to your shareholders. The shareholders are most concerned with the effectiveness of your decisions and thus you respond accordingly. This would be most evident in which of the following? A. maximizing shareholder wealth with your investments B. being first to purchase risky stocks C. purchasing only safe blue chip stocks to avoid any risks D. hiring the brightest people E. buying stocks at the cheapest price available 12. Downtown Delivery is a small courier firm employing between five and seven drivers who make pick-ups and deliveries seven days a week. Its owner and founder, Tony Licciardi, is concerned with fluctuating fuel prices and decides to purchase cars for his fleet that each exceed 35 miles per gallon. The best means to characterize Tonys decision would be which of the following basic management terms? A. controlling B. directing C. strategic planning D. efficiency E. effectiveness

application Answer: A

application Answer: D

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

critical Answer: D

13. Airlines such as Continental, United, and Delta operate with very narrow profit margins. As a result, these companies try hard to use the fewest inputs (jet fuel, maintenance hours, ticket agents etc.) to generate a given output. This information tells us that __________ is a critical managerial issue at major airlines. A. effectiveness B. proficiency C. potency D. efficiency E. goal setting 14. An organization is a group of individuals who work together A. to maximize shareholder wealth. B. to generate the most profit. C. to become more efficient. D. to reduce costs. E. toward common goals.

recall Answer: E

THE PROCESS OF MANAGEMENT recall Answer: E 15. The four major functions associated with the process of management are A. planning, organizing, coordinating, and controlling. B. planning, leading, controlling, and motivating. C. planning, organizing, informing, and controlling. D. planning, informing, leading, and controlling. E. planning, leading, organizing, and controlling. 16. Whether a manager works for a large company such as General Motors or Ford, or a small company that employs only ten people, the four functions of management remain the same. These functions are A. B. C. D. E. planning, organizing, supervising, and controlling. planning, leading, organizing, and controlling. planning, organizing, informing, and controlling. planning, informing, supervising, and controlling. planning, communicating, motivating, and controlling.

application Answer: B

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: D

17. The four major functions of management include planning, leading, organizing, and A. B. C. D. E. directing. informing. administering. controlling. supervising.

application Answer: A

18. As a food and beverage controller for an exclusive hotel, Ron Pitisci regularly meets with various chefs and food preparers. By meeting faceto-face with these individuals, Ron hopes to ensure that the foods and beverages he orders from various suppliers will meet the expectations of the chefs. After the meetings, Ron must make many decisions regarding which suppliers from whom to order. At this stage, Ron is most concerned with which of the management functions? A. planning B. leading C. administering D. controlling E. supervising 19. The student government president at your college must often determine what projects/programs the association would like to accomplish during his/her administration. The president must then decide who will do these tasks and how they will be managed and coordinated. The president in this situation is practicing which of the following functions of management? A. B. C. D. E. organizing informing administering budgeting supervising

application Answer: A

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: C

20. Which of the following is not one of the four major functions of management? A. planning B. controlling C. administering D. leading E. organizing 21. The managerial function that involves setting goals and defining the actions necessary to achieve those goals is called A. delegating. B. controlling. C. organizing. D. planning. E. monitoring. 22. Patricia Tailor, the CEO of Coastal Software, just returned from a twoday management seminar. The seminar stressed that fact that it is very important for managers to set goals and define the actions necessary to achieve those goals. Patricia thought about this information in the context of management and correctly concluded that goal-setting is part of the __________ function of management. A. B. C. D. E. directing planning controlling leading organizing

recall Answer: D

application Answer: B

recall Answer: C

23. The managerial function that involves determining the tasks to be done, who will do them, and how those tasks will be managed and controlled is called A. B. C. D. E. delegating. controlling. organizing. planning. monitoring.

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

application Answer: E

24. When designing the new department of Technology Transfer at the medical school, Nicole Baute made sure that it was structured in light of its strategic and operational goals and that the office and its staff would be responsive to changes in the medical environment. Nicoles actions can best be described as ______ the new department. A. motivating B. controlling C. planning D. leading E. organizing 25. The managerial function that involves motivating and directing members of an organization so that they contribute to the achievement of the goals of the organization is called A. B. C. D. E. directing. controlling. leading. planning. supervising.

recall Answer: C

critical Answer: A

26. Fremont Labs is a biotechnology company in a very fast-paced industry. As a result, the company needs visionary managers who are capable of empowering employees in a manner that transforms visions into reality. Fremont Labs need managers who are very strong in the __________ function of management. A. leadership B. controlling C. organizing D. planning E. monitoring 27. _______ is an important function in the managerial process because it provides a method for ensuring that the organization is moving toward the achievement of its goals. A. B. C. D. E. Supervising Controlling Directing Planning Leading

recall Answer: B

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

application Answer: B

28. Suppose you went to work for an organization, and your manager told you that her principal role in the firm was to monitor performance and identify deviations between planned and actual results. If this was the case, your manager would be focusing on the function of management called A. delegating. B. controlling. C. organizing. D. monitoring. E. planning. 29. If your boss rarely verified or checked the work that you completed on the job, and instead relied solely on your word, we would describe this boss as not practicing the ________ function of management with much vigor. A. planning B. organizing C. motivating D. controlling E. monitoring

application Answer: D

MANAGERIAL ROLES recall Answer: B 30. According to Mintzberg, managers serve three primary roles: A. interpersonal, staffing, and decisional B. interpersonal, informational, and decisional C. staffing, informational, and decisional D. controlling, informational, and decisional E. interpersonal, controlling, and decisional The three interpersonal roles played by a manager are A. B. C. D. E. figurehead, disseminator, and disturbance handler. leader, monitor, and negotiator. figurehead, leader, and liaison. figurehead, spokesperson, and disseminator. spokesperson, disseminator, and liaison.

recall Answer: C

31.

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: A

32.

The three interpersonal roles played by a manager are figurehead, disseminator, and A. leader & liaison. B. director. C. administrator. D. executive officer. E. technology advocate. Which one of the following managerial roles arises directly from the manager's formal authority base in his or her company? A. contractual B. hierarchical C. decisional D. informational E. interpersonal Because managers are largely responsible for the success or failure of their organizational units, they must also play the role of leaders within their work groups. Dr. Andy Sharp, as chair of the Business Division, must work with and through the faculty in his division to ensure the goals of the division and college are met. According to Mintzberg, when Dr. Sharp performs these duties he is fulfilling his A. B. C. D. E. informational role. decisional role. administrative role. contractual role. interpersonal role.

recall Answer: E

33.

application Answer: E

34.

application Answer: B

35.

As members of Congress, Representatives work with both their colleagues in the Congress and their constituents back in their home states. They must be politically sensitive to important issues so that they can develop relationships between both parties. In this capacity, Representatives are performing which of the following roles? A. monitor B. liaison C. figurehead A. leader E. disseminator

Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

critical Answer: E

36.

When General Motors breaks ground on a new production facility, John F. Smith, the CEO of General Motors, is often present to participate in the ribbon-cutting ceremony. On these occasions, Mr. Smith is performing a/ an __________ role for his company. A. B. C. D. E. contractual routine decisional informational interpersonal

recall Answer: D

37.

The three informational roles played by a manager are A. figurehead, disseminator, and disturbance handler. B. leader, monitor, and negotiator. C. figurehead, leader, and liaison. D. monitor, disseminator, and spokesperson. E. negotiator, monitor, and disturbance handler. As a manager of her own small business, Tyler Seilhan continually scans both the internal and external environments of her business for useful information. This would be fulfilling which managerial role? A. disseminator B. leader C. monitor D. entrepreneur E. resource allocator Hoping to avoid labor unrest, the manager of a shipyard decides to withhold certain payroll information from the workers. Instead, the manager makes sure that the shipbuilders are each given the information necessary to perform their duties efficiently and effectively. This is an example of which managerial role? A. spokesperson B. disturbance handler C. disseminator D. monitor E. negotiator

application Answer: C

38.

application Answer: C

39.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

application Answer: E

40.

In her managerial role of ________ for the Mayors office, Marie-Luise often must communicate information to constituents and members of the press. A. B. C. D. E. disseminator disturbance handler monitor negotiator spokesperson

recall Answer: C

41.

The four decisional roles played by a manager are A. entrepreneur, disturbance handler, negotiator, and disseminator. B. disturbance handler, resource allocator, liaison, and leader. C. entrepreneur, disturbance handler, resource allocator, and negotiator. D. liaison, spokesperson, entrepreneur, and negotiator. E. entrepreneur, liaison, leader, and monitor. After managers scan the internal and external environments of their organization for changes that may present opportunities, they often initiate projects that capitalize on those opportunities that are identified. This is an example of which managerial role? A. entrepreneur B. disturbance handler C. negotiator D. resource allocator E. monitor As manager of a small business, Matthew Domas must often determine which projects will receive funding for the coming year. When acting in this role, Mr. Domas is performing his A. B. C. D. E. hierarchical role. administrative role. decisional role. interpersonal role. informational role.

recall Answer: A

42.

application Answer: C

43.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

SCOPE AND LEVELS OF MANAGERS application Answer: E 44. Suppose that you are the marketing manager for a division of Intel. According to our textbook, you would be considered a ________ manager at Intel. A. general B. staff C. track D. cross-sectional E. functional The manufacturing manager, the marketing manager, the personal manager, and the sales manager for Weyerhaeuser Corporation all are responsible for managing a work unit that is grouped based on the function served. These managers are referred to as __________ managers. A. B. C. D. E. application Answer: D 46. cross-sectional track general staff functional

application Answer: E

45.

A small manufacturing company in the Midwest is organized into accounting, marketing, and production departments. According to the textbook, the managers of each of these departments is referred to as a A. general manager. B. divisional manager. C. bureaucratic manager. D. functional manager. E. administrative manager. Which of the following is not a characteristic of a functional manager? A. B. C. D. E. having training similar to the people that they manage managing people who perform highly diverse tasks having technical skills that are strong typically being promoted from within the ranks of the work group having backgrounds similar to the people that they manage

recall Answer: B

47.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: E

48.

According to the textbook, __________ managers are responsible for a work group that is segmented according to function, while __________ managers oversee several different departments that are responsible for different tasks. A. B. C. D. E. taskgeneral departmentaldivisional functionaldepartmental generaltask functionalgeneral

application Answer: A

49.

According to the information provided in our textbook, a grocery store manager who is responsible for a produce department, a meat department, a bakery, and a deli would be considered to be a __________ manager. A. general B. divisional C. bureaucratic D. functional E. administrative Which of the following is not a characteristic of a general manager? A. having backgrounds similar to the people that they manage B. managing several different departments C. having technical skills that may not be as strong as the skills of their employees D. coordinating and integrating the work of diverse groups of people E. being responsible for ensuring that many parts of a firm function together effectively According to our textbook, a manager who is responsible for several different work groups segmented by task is referred to as a A. B. C. D. E. divisional manager. general manager. bureaucratic manager. functional manager. administrative manager.

critical Answer: A

50.

recall Answer: B

51.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

critical Answer: D

52.

Suppose you are opening a sporting goods store and will initially have a hunting department, a fishing department, a team sports department, and an individual sports department. It you supervised all the different departments in your store, you would be considered a __________ manager. A. B. C. D. E. administrative functional bureaucratic general divisional

Application Answer: A

53.

Mike Rood had a history of managing an accounting division in his previous job, but when he moved into his current job, he was responsible for managing the marketing, finance, production, and accounting divisions. This change in job responsibilities reflected a change from ______ management to ______ management. A. functionalgeneral B. divisionaladministrative C. functionalbureaucratic D. generalfunctional E. administrativedivisional

LEVELS OF MANAGEMENT recall Answer: B 54. In general, relatively large organizations have three distinct levels of managers. These are A. B. C. D. E. junior, middle, and top. first-line, middle, and top. first-line, middle, and horizontal. low, middle, and high. first-line, intermediate, and high.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: D

55.

Which of the following shapes would best reflect the number of managers at each level in most organizations? A. circle B. square C. rectangle D. pyramid/triangle E. oval Many management textbooks depict the levels of management in an organization as a pyramid, with top managers at the top, middle managers in the middle, and first-line managers at the bottom. What is the pyramid shape of the levels of management meant to convey? A. the number of managers at each level B. the pay scale for managers at each level C. the experience level of managers at each level D. the scope of responsibility of managers at each level E. the organizational tenure of managers at each level For many business organizations, a trend in the 1990s was to reduce the number of employees in an effort to achieve efficiency. The net effect of such downsizing has been a significant reduction in the number of __________ within many corporate structures. A. technical managers B. first-line managers C. top managers D. middle managers E. operational managers Which skill type is the most important for first-line managers? A. B. C. D. E. human technical conceptual developmental mechanical

critical Answer: A

56.

application Answer: D

57.

recall Answer: B

58.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

application Answer: C

59.

If you were studying the Black & Decker Corporation and wanted to talk to a group of managers who have strong technical skills, these managers would most likely be ___________ managers. A. top B. middle C. first-line D. developmental E. cross-functional Individuals in firms who carry titles such as production supervisor, line manager, section chief, or account manager are __________ managers. A. top B. first-line C. cross-functional D. divisional E. middle Randy Chambers just graduated from Boston College with strong skills in computer programming. Randy is considering a management position at Bell South. Because Randy has excellent technical skills, he will probably start out at Bell South as a __________ manager. A. cross-functional B. top C. middle D. divisional E. first-line The primary objective of __________ managers is to ensure that the products or services of their organizations are delivered to the customer on a day-to-day basis. A. B. C. D. E. first-line central top middle divisional

recall Answer: B

60.

critical Answer: E

61.

recall Answer: A

62.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: A

63.

Which skill type is the most important for middle managers? A. human B. technical C. conceptual D. developmental E. administrative Individuals in firms who carry titles such as department head, product manager, or marketing manager are __________ managers. A. first-line B. top C. cross-functional D. middle E. divisional If you were studying Phillips Petroleum and wanted to talk to a group of managers who have strong human skills, these managers would most likely be ___________ in the company. A. middle managers B. cross-functional C. first-line managers D. developmental managers E. top managers In his job, Paul Ashland spends a considerable amount of time planning and allocating resources, coordinating interdependent groups, and managing group performance. Based on this description, we can conclude that Paul is most likely a __________ manager in his organization. A. B. C. D. E. first-line departmental middle cross-functional top

recall Answer: D

64.

application Answer: A

65.

critical Answer: C

66.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

critical Answer: A

67.

Pat Nolan is a middle manager at AT&T. Which type of skill is likely to be most important for Pat in her role as a middle manager? A. human B. mechanical C. developmental D. conceptual E. technical _______ managers are most involved in three basic activitiesplanning and allocating resources, coordinating interdependent groups, and managing group performance. A. First-line B. Top-level C. Middle D. Cross-functional E. Divisional Which skill type is the most important for top managers? A. B. C. D. E. human developmental conceptual technical mechanical

critical Answer: C

68.

recall Answer: C

69.

critical Answer: D

70.

At Pitney Bowes, a very important managerial function is monitoring the business environment. Which level of management in a business organization is typically the most heavily involved in this activity? A. B. C. D. E. administrative technical middle top-level first-line

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

critical Answer: E

71.

Research indicates that ______ managers are the most heavily involved in monitoring the business environment. A. middle B. cross-functional C. first-line D. divisional E. top-level __________ skills enable managers to process a tremendous amount of information about both the internal and the external environment of the organization and to determine the implications of that information. A. Human B. Technical C. Conceptual D. Theoretical E. Rational In his role as CEO, Bill Gates possesses the ______ that enable him to look at Microsoft as a whole and understand how separate work groups and departments relate to and affect one another. A. cognitive skills B. technical skills C. human skills D. conceptual skills E. intuitive skills Top managers must have the ability to look at the organization as a whole and understand how separate work groups and departments relate to and affect each other. This ability requires strength in the area of A. B. C. D. E. technical skills. human skills. motor skills. conceptual skills. functional skills.

recall Answer: C

72.

application Answer: D

73.

critical Answer: D

74.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: E

75.

Which of the following represents an optimal match between level of management and managerial skill level? A. top managementhuman skills B. first- line managementconceptual skills C. middle managementconceptual skills D. first-line managementhuman skills E. middle managementhuman skills Which managerial activity is considered equally important by all three levels of managers? A. representing staff B. monitoring C. leadership D. disturbance handler E. visionary As an individual moves up in an organization, the importance of ________ skills typically decrease and the importance of ________ skills increase. A. administrativehuman B. economicadministrative C. conceptualtechnical D. humantechnical E. technicalconceptual Which managerial activity is equally important to all levels of management? A. B. C. D. E. representing staff coordinating interdependent groups managing individual performance monitoring the business environment managing group performance

recall Answer: A

76.

critical Answer: E

77.

recall Answer: A

78.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

MANAGING IN THE 21st CENTURY recall Answer: B 79. A condition of rapid, dramatic, complex, and unpredictable change that has a significant effect on the ways in which organizations are managed is called A. B. C. D. E. critical Answer: B 80. turbulence-based change. hyperchange. sociocultural change. competitive disequalibrium. environmental munificence.

Which of the following is not characteristic of a hyperchange environment? A. B. C. D. rapid change predictable change complex change the success of an organization based on its ability to respond E. the success of an individual based on his or her ability to respond Software firms such as Microsoft and Intuit operate in environments that can be characterized as dramatic, complex, and unpredictable. The authors of our textbook use the term __________ to describe these types of environments. A. B. C. D. E. ultra change munificence hyperchange global change volatility

application Answer: C

81.

ENVIRONMENTAL TRENDS AND ORGANIZATIONAL CHANGES critical Answer: D 82. Which of the environmental trends was not mentioned in your text as having an effect on the modern business climate? A. mobile computing B. electronic commerce C. increasing predominance of entrepreneurial firms D. domestication of the marketplace E. growing importance of intellectual capital

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

critical Answer: E

83.

Which one of the following characteristics does not pertain to the global business environment? A. It requires unique managerial challenges. B. It is more complex than the domestic environment. C. It introduces a much broader set of environmental forces. D. Its partnerships require very special international management skills. E. It has less impact on todays domestic market than 25 years ago. Which one of the following characteristics does not pertain to entrepreneurial firms? A. They are responsible for the creation of 4080 percent of all new jobs in the United States. B. They are responsible for a disproportionate number of new products/ services. C. They are slow to respond to changing customer needs. D. They place pressure on large, bureaucratic firms. E. They provide opportunities for minorities. Which of the following is not true regarding entrepreneuriship? A. Entreprenuership provides opportunities for minorities and others who may face barriers in traditional corporate America. B. Entrepreneurial firms are responsible for a disproportionate number of new products, services, and processes. C. Entrepreneurial activities place pressure on large, bureaucratic firms to be more innovate and proactive. D. Despite its potential benefits, entrepreneurship is responsible for the creation of less than 20 percent of all new jobs in the United States. E. There is a worldwide recognition of the power of entreprenuership to stimulate and strengthen economies. ________ encompasses the sum and synergy of a companys knowledge, experience, relationships, processes, discoveries, innovations, market presence, and community influence. A. Intellectual capital B. Structural capital C. Customer capital D. Human capital E. Organizational capital

critical Answer: C

84.

critical Answer: D

85.

recall Answer: A

86.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: B

87.

Which of the following terms refers to the accumulated knowledge and know-how of the company represented by the companys patents, trademarks, and copyrights, proprietary databases, and systems? A. knowledge capital B. structural capital C. customer capital D. human capital E. organizational capital As the owner of a family business that has lasted three generations, Dean Leone realizes that strong relationships with both the patrons and suppliers of his restaurant are important to its survival and success. These relationships are known as A. knowledge capital. B. structural capital. C. customer capital. D. human capital. E. organizational capital. ______ are groups of employees who work together toward the development of strategy for their work unit and the achievement of established goals and objectives. A. Quality circles B. Focus groups C. Self-managed teams D. Boards of directors E. Virtual work groups Groups of employees who work together toward the development of strategy for their work unit and the achievement of established goals and objectives are called A. B. C. D. E. inside-outside teams. new management teams. hyperchange teams. self-managed teams. self-policing teams.

application Answer: C

88.

recall Answer: C

89.

recall Answer: D

90.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: A

91.

The heterogeneity of the workforce in terms of gender, race, nationality, and ethnicity is called workplace A. diversity. B. divergence. C. concentration. D. variance. E. convergence. Which of the following is not true regarding diversity? A. Diversity refers to the heterogeneity of the population and workforce. B. There is increased diversity of the population base of the United States as well as other countries, and this has led to increased diversity in the workplace. C. Many organizations are implementing aggressive diversity training programs because they believe that a diverse workforce provides a significant competitive advantage. D. One outcome of the heightened awareness of diversity is reverse discrimination involving women and minorities. E. Many diversity training programs focus on valuing, and perhaps even celebrating diversity and the breadth of thought and experience that results from diverse workgroups. Which of the following is not emphasized by the new organizational model? A. being lean and flexible B. focusing on core business activities C. outsourcing non-core business functions to organizations that can perform those functions more effectively and efficiently D. partnering with other firms only as a last resort E. streamlining the organizational model

critical Answer: D

92.

critical Answer: D

93.

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critical Answer: C

94.

Which of the following statements is incorrect in regard to the new organizational model presented in your text? A. Being lean and flexible has become preferable to being big for many organizations. B. The new organizational model is also known as the modular corporation. C. Culturally diverse work groups have become the exception rather than the norm D. Large complex corporate structures of the past are being replaced by streamlined, flexible structures that depend on outsourcing to achieve efficiency E. The new organizational model is also known as the virtual or network corporation.

THE CONTEMPORARY MANAGER recall Answer: D 95. Successful managers of the future will have all of the following characteristics except one. This one characteristic is A. thinking of oneself as a sponsor, team leader, or internal consultant. B. dealing with any responsible party necessary to get the job done. C. inviting others to join in decision making. D. trying to master one major discipline, such as marketing or accounting. E. demanding results. Which of the following characteristics will typify successful managers in the future? A. B. C. D. E. thinking of oneself as a manager or boss following the chain of command working within a set organizational structure making most decisions alone sharing information

recall Answer: E

96.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

critical Answer: B

97.

Robert Darnall, the CEO of Inland Steel, is considering the types of characteristics he will be looking for in the managers he hires to help take Inland into the new century. Of the following lists of managerial characteristics, which one would you recommend Mr. Darnall use in selecting managers for his company? A. hoards information; thinks of self as a manager or boss; makes most decisions himself or herself B. invites others to join in decision-making; tries to master a broad array of managerial disciplines; demands results C. follows the chain of command; works with a set organizational structure; demands long hours D. demands long hours; tries to master one major discipline such as marketing or finance; follows the chain of command E. thinks of self as a manager or boss; follows the chain or command; makes most decisions alone It is suggested that one role of tomorrows managers is not to confuse opinions with arguments or associations with causality. That he or she can evaluate arguments and construct them as well as follow lines of reasoning to the sometimes tortuous end. This is advocated by which of the following roles? A. foreign ambassador B. technology master C. problem solver D. change maker E. 21st-century leader Which of the following is not a desirable attribute of tomorrow's managers? A. technology master B. 21st-century leader C. problem solver D. isolationist E. foreign ambassador

recall Answer: C

98.

application Answer: D

99.

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

recall Answer: B

100.

According to the new manager profile effective managers of the future will no longer think of themselves as __________, but as sponsors, team leaders, or internal consultants. A. coaches B. bosses C. enablers D. trainers E. facilitators

TRUE-FALSE QUESTIONS
MANAGEMENT DEFINED Answer: F 101. Organizing is the process of administering and coordinating resources effectively and efficiently in an effort to achieve the goals of the organization. Using the fewest inputs to generate a given output is called effectiveness. Effectiveness is achieved when the organization pursues appropriate goals. An organization is a group of individuals who work together toward common goals. Efficiency is pursuing the appropriate goals or doing the right things.

Answer: F Answer: T Answer: T Answer: F

102. 103. 104. 105.

THE PROCESS OF MANAGEMENT Answer: T Answer: T Answer: F 106. 107. 108. The four major functions of management are planning, leading, organizing, and controlling. Managers at all levels of the organizational hierarchy must engage in planning. Planning involves monitoring the performance of the organization, identifying deviations between planned and actual results, and taking corrective action when necessary. Planning involves setting goals and defining the actions necessary to achieve those goals According to your text, only through effective leadership can the goals of an organization be achieved. Organizing involves setting goals and defining the actions necessary to achieve those goals. Issues of organizational culture and human resource management are key features to the management function of organizing. Organizing involves motivating and directing the members of an organization so that they contribute to the achievement of the organizations goals.

Answer: T Answer: T Answer: F Answer: T Answer: F

109. 110. 111. 112. 113.

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Answer: F

114.

Answer: T

115.

Controlling is the process of administering and coordinating resources effectively and efficiently in an effort to achieve the organizations goals. Control is an important function in the managerial process because it provides a method for ensuring that the organization is moving toward the achievement of its goals.

MANAGERIAL ROLES Answer: F Answer: T 116. 117. The interpersonal roles assumed by managers are figurehead, leader, and monitor. When Joseph Gorman, the CEO of TRW, acts as a liaison between his company and an outside constituent, he is fulfilling one of his interpersonal roles as a manager. When Harvey Golub, the CEO of American Express, makes a speech on behalf of his company, he is fulfilling one of his interpersonal roles as a manager. The informational roles assumed by managers are monitor, disseminator, and negotiator. Depending on the nature of the information, disseminators may also withhold information from workgroup members. The roles of disseminators and spokespersons are synonymous. When Albert Zimmerman, the CEO of Allstar Appliances, performs duties on behalf of his firm that are primarily ceremonial in nature, he is performing an interpersonal role as a manager.

Answer: F

118.

Answer: F Answer: T Answer: F Answer: T

119. 120. 121. 122.

SCOPE AND LEVELS OF MANAGERS Answer: T Answer: T 123. 124. Functional managers are responsible for workgroups that are segmented according to function. Managers often differ with regard to both the scope of their responsibilities and their level within the vertical structure of the organization. General managers are responsible for managing several different departments responsible for different tasks. General managers often have backgrounds similar to the people they manage. A department store manager, who is responsible for a clothing department, an automotive department, and a sporting goods department is called a functional manager. A grocery store manager, who is responsible for a produce department, a meat department, and a bakery is referred to as a functional manager.

Answer: T Answer: F Answer: F

125. 126. 127.

Answer: F

128.

LEVELS OF MANAGEMENT Answer: T 129. First-line managers supervise individuals who are directly responsible for producing the firms products.

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Answer: F Answer: T Answer: F Answer: F

130. 131. 132. 133.

Answer: F

134.

Technical skills are the most important for top managers. Technical skills are the most important for first-line managers. Human skills are the most important for top-level managers. Consistent with their linking function, top-level managers are most involved in three basic activities: planing and allocating resources, coordinating interdependent groups, and managing group performance. Conceptual skills involve the ability to work effectively with members of one's own workgroup as well as other workgroups within the organization.

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Answer: T Answer: F Answer: F

135. 136. 137.

All managers must have technical, human, and conceptual skills if they wish to be successful. Louis Gerstner is the CEO of IBM. For Mr. Gerstner, technical skills are the most important. As an individual moves up in an organization, the importance of conceptual skills typically decreases, while the importance of technical skills increases.

MANAGING IN THE 21st CENTURY Answer: T Answer: T 138. 139. A hyperchange environment includes changes that come quickly and have a significant impact on the way organizations are managed. In the future, the success of both the organization and the individual manager will often be dependent on their ability to respond to hyperchange. The global business environment is more complex than the domestic business environment. One of the most overrated trends affecting organizations today is the increasing availability of sophisticated information technology. Electronic commerce refers to the ability of individuals to have access to information technology irrespective of their physical location. Entrepreneurship is believed to be responsible for the creation of more than 50 percent of all new jobs in the United States. Entrepreneuership, despite its many favorable outcomes (such as innovation and new job creation), provides few opportunities for minorities and women. Although firms are experiencing many changes, the vertically integrated corporate structures that were predominant in American corporations over the last several decades are largely intact and are likely to remain unchanged. Groups of employees who design their jobs and work responsibilities to achieve the self-determined goals and objectives of the team are called self-managed teams.

Answer: T Answer: F Answer: F Answer: T Answer: F

140. 141. 142. 143. 144.

Answer: F

145.

Answer: T

146.

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Answer: F

147.

Answer: F Answer: F Answer: T

148. 149. 150.

Many companies today use self-managed teams to reduce top management and first-line management costs and to foster teamwork throughout the organization. Structural capital refers to the cumulative skills and knowledge of the organization. Due to its obvious importance to organizations, intellectual capital is readily accounted for in most companys financial statements. Youll find fewer middle managers among the organizational hierarchies of today as compared with twenty years ago.

MATCHING QUESTIONS
MANAGEMENT DEFINED 151. A. effectiveness B. planning C. efficiency ___ ___ ___ doing things right identifying deviations between planned and actual results setting goals and defining the actions necessary to achieve those goals doing the right things working with employees to ensure that organizational goals are met determining which tasks need to be done, who will do them and how those tasks will be coordinated Answers: C, D, B, A, F, E

D. controlling E. organizing F. leading

___ ___ ___

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MANAGERIAL ROLES 152. A. spokespersons B. entrepreneurs C. figureheads D. resource allocators E. F. monitors ___ ___ ___ ___ ___ ___ ___ perform certain duties that are primarily ceremonial in nature work with and through their employees to ensure organizational goals are met continually scan the internal and external environments of their organizations for useful information initiate projects that capitalize on opportunities that have been identified determine which projects will receive organizational resources cope with conflict and problems communicate information to individuals outside their units and organizations Answer: C, G, E, B, D, F, A LEVELS OF MANAGEMENT 153. A. first-line managers B. middle managers ___ ___ provide the strategic direction for the organization supervise the individuals who are directly responsible for producing the organization's product or delivering its service supervise first-line managers or staff departments Answers: C, A, B

disturbance handlers G. leaders

C. top managers

___

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SKILLS NEEDED AT DIFFERENT LEVELS OF MANAGEMENT 154. A. technical skills B. human skills C. conceptual skills ___ ___ ___ the ability to analyze complex situations and respond effectively to the challenges faced by the organization the ability to utilize tools, techniques, and procedures that are specific to a particular field the ability to work effectively with others Answers: C, A, B MANAGING IN THE 21ST CENTURY 155. A. hyperchange ___ groups of employees who design their jobs and work responsibilities to achieve the self-determined goals and objectives of the team the heterogeneity of the work force in terms of gender, race, nationality, and ethnicity a formal approach to management where the overriding priority of the organization is to deliver a quality product or service and to work toward excellence and continuous improvement in all areas of the organization a condition of rapid, dramatic, complex, and unpredictable change that has a significant effect on the ways in which organizations are managed Answers: C, D, B, A

B. quality management C. self-managed teams

___ ___

D. diversity

___

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Chapter 1: Management and Managers: Yesterday, Today, and Tomorrow

ESSAY QUESTIONS
156. Name and discuss the four major functions of management. How do these functions relate to the goals of an organization? The four major functions of management are planning, leading, organizing, and controlling. Planning provides a roadmap for an organization to follow by setting goals and defining the actions necessary to achieve those goals. Organizing involves determining the tasks to be done, who will do them, and how those tasks will be managed and coordinated. Leading involves the essential task of motivating and directing the members of the organization towards the achievement of the organizations goals. Finally, controlling involves the task of monitoring the performance of the organization and taking corrective action when necessary. The four functions of management are intimately linked to the achievement of the goals of the organization. As described above, the planning function sets the goals and defines the actions necessary to achieves those goals. Organizing involves the daily coordination, supervision, and direction that is necessary to carry out the plan and achieve the organizations goals. Leading involves inspiring the members of the organization toward the attainment of its goals. Finally, controlling involves making sure that the organization is on track in regard to the attainment of its goals. 157. According to Henry Mintzberg, what are the three primary roles that managers perform? Provide examples of each of these roles in a modern business organization. According to Mintzberg, managers serve three primary types of roles: interpersonal, informational, and decision making. In their interpersonal roles, managers are responsible for managing relationships with organizational members and other stakeholders. Mintzberg identified three distinct interpersonal roles figurehead, leader, and liaison. As a figurehead, a manager is responsible for attending functions that are primarily ceremonial in nature, like an awards dinner, a luncheon with an important customer, or a social event. As a leader, a manager is responsible for motivating his or her employees and other stakeholders towards the attainment of organizational goals. Finally, as a liaison, a manager is responsible for working with various groups of employees and for acting as a go-between in the relationships between the firm and its outside stakeholders. The second set of managerial roles identified by Mintzberg are informational roles. In informational roles, managers are responsible for ensuring that all organizational stakeholders have sufficient information to perform in an effective manner. The three informational roles are monitor, disseminator, and spokesperson. As a monitor, a manager must keep his or her finger of the pulse on both the internal and external environment of the firm, and remain keenly aware of environmental change. As a disseminator, a manager must share and distribute information to organizational stakeholders. This is a particularly challenging role, because in regard to the dissemination of information, more is not always better. A manager can burden his or her employees by loading them down with too much data and information. Finally, as a

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spokesperson, a manager must be willing to speak on behalf of his or her organization. Managers are often called upon to make new product announcements or publicly respond to a concern of a stakeholder group. The third set of managerial roles identified by Mintzberg are decisional roles. The four decisional roles are: entrepreneur, disturbance handler, resource allocator, and negotiator. As an entrepreneur, a manager must be willing to initiate projects and act as an innovator for his or her organization. As a disturbance handler, a manager is often called upon to settle disputes between employees or to handle a customer complaint. All of us at one time or another have had a problem with a company and have asked to talk to the manager in an effort to resolve our dispute. As a resource allocator, a manager has the important role of determining which projects will receive funding. Finally, as a negotiator, a manager must negotiate with employees, suppliers, customers, local governments, special interest groups, and a variety of other stakeholders to make sure that the organization's goals can be met. 158. Discuss the major differences between functional and general managers. What are the different skills sets needed for functional and general managers? Functional managers are responsible for a workgroup that is segmented according to function. For example, the manager of a marketing department is a functional manager. Technical skills are particularly important for functional managers. For instance, the manager of an accounting department should have fairly strong accounting skills himself or herself to properly train, mentor, and supervisor the departments employees. General managers manage several different departments that are responsible for different tasks. For example, the manager of a department store, who supervises a clothing department, an automotive department, and a sporting goods department is a general manager. Communication skills are particularly important for general managers. General managers must coordinate the work of a diverse group of people and departments. 159. Describe the three levels of managers found in most large organizations. Do the skills required of managers differ at the different levels of the management hierarchy? The three levels of managers found in most large organizations include top management, middle management, and first-line management. While managers at each level must perform the tasks of planning, leading, organizing, and controlling, certain job-specific skills are more important at one level than the other. Technical skills are particularly important for first-line managers. These managers are closest to the product or service that their firm delivers, and are often responsible for production or service delivery. As a result, first-line managers need strong technical skills to train, mentor, supervise, and control activities at the point of production or service delivery. Middle managers assume a more supervisory role. These managers are usually promoted to the rank of middle manager because they have good administrative skills and can coordinate work groups. Human skills are particularly important at this level. Middle managers must be able to work well with the members of their own department, as well as with other departments. Moreover, middle managers are often involved in team-building, human resource development, resource allocation, and conflict resolution. Each of these

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activities are facilitated by strong human skills. Top managers are heavily involved in planning and goal-setting. These activities require strong conceptual skills. Strong conceptual skills enable managers to process large amount of information and think through various situations simultaneously. 160. Discuss several of the environmental trends that are affecting modern business organizations. Several environmental trends are having a major influence on modern business organizations. The globalization of the marketplace continues at an increasingly rapid pace. This has broadened the number of issues that decision-makers must consider, such as whether to pursue foreign markets and how to deal with foreign competition. As a result, the majority of American managers must think globally whether or not their firm is directly involved in foreign sales. The increasing predominance of entrepreneurial firms is also shaping management thought and behavior. Large organizations that are slow to respond to environmental change are losing market share to smaller, more nimble entrepreneurial firms. In addition, the large business sector is increasingly turning to smaller firms as outsource partners to perform some of their routine duties. A focus on quality and cost containment is also affecting modern business organizations. Many firms are facing increasing business competition from home and abroad. As a result, quality and pricing are key competitive issues. This is true in both the manufacturing and service sectors.

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