Business Changing World 8th Edition by O. C. Ferrell – Test Bank

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Business Changing World 8th Edition by O. C. Ferrell – Test Bank

Chapter 06

The Nature of Management

 

True / False Questions

  1. Managers can run a business with only human and physical resources.
    True    False

 

  1. Managers engage in planning, organizing, staffing, directing, and controlling.
    True    False

 

  1. Management takes place only in business settings.
    True    False

 

  1. Management is a process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment.
    True    False

 

  1. The decision to introduce new products in order to reach objectives is often a key management duty.
    True    False

 

  1. Employees are one of the most important resources in helping a company obtain its objectives.
    True    False

 

 

 

 

Multiple Choice Questions

  1. Management is a process designed to achieve an organization’s objectives by using its resources ____________ (accomplishing the objectives with a minimum of resources) and _________________ (having the intended result).
    A. effectively, efficiently
    B. efficiently, effectively
    C. quickly, competently
    D. competently, quickly
    E. thoroughly, completely

 

  1. Management is a process
    A. that is unanimous.
    B. of dissipating resources.
    C. of coordinating resources to achieve objectives.
    D. that works well.
    E. mainly used in for-profit businesses.

 

  1. Managers need adequate ____________ resources to pay for essential activities.
    A. Human
    B. Management
    C. Financial
    D. Corporate
    E. Information

 

  1. All of the following are typical resources that must be acquired by each organization in the pursuit of its objectives except
    A. people.
    B. raw materials and equipment.
    C. money.
    D. information.
    E. laws and regulations.

 

 

 

  1. If a manager is concerned about doing the work with the least cost and waste, then her primary managerial concern is
    A. effectiveness.
    B. accountability.
    C. delegation.
    D. hiring.
    E. efficiency.

 

  1. All of the following are functions of management except
    A. directing.
    B. staffing.
    C. promoting.
    D. organizing.
    E. controlling.

 

  1. _____ make decisions about the use of an organization’s resources and are concerned with planning, organizing, leading, and controlling the organization’s activities.
    A. Managers
    B. Shareholders
    C. Employees
    D. Consumers
    E. Suppliers

 

  1. When providing benefits, a manager is most closely involved with which of the following resources?
    A. Natural
    B. Physical
    C. Human
    D. Financial
    E. Structural

 

 

 

  1. If a manager is organizing equipment within a factory setting, he is mainly involved in which of the following resources?
    A. Natural
    B. Physical
    C. Human
    D. Financial
    E. Structural

 

  1. If a manager is analyzing several methods for obtaining the money needed to expand operations, she is involved with which of the following resources?
    A. Natural
    B. Physical
    C. Human
    D. Financial
    E. Structural

 

 

Essay Questions

  1. What are the resources essential to every organization?

 

 

 

 

  1. What is management?

 

 

 

 

 

 

 

True / False Questions

  1. Planning involves forecasting events and determining the best course of action from a set of options or choices.
    True    False

 

  1. Crisis management plans are the long-range plans developed by top management.
    True    False

 

  1. Staffing is the structuring of resources and activities to accomplish goals in an efficient and effective manner.
    True    False

 

  1. Directing is motivating and leading employees to achieve organizational objectives.
    True    False

 

  1. Taking action to correct deviations from standards is part of the controlling function.
    True    False

 

  1. An important part of good directing is administering awards and recognition.
    True    False

 

 

 

 

Multiple Choice Questions

  1. Determining an organization’s objectives and deciding how to accomplish them are part of the management function known as
    A. planning.
    B. organizing.
    C. staffing.
    D. controlling.
    E. directing.

 

  1. Forecasting is most closely associated with
    A. organizing.
    B. directing.
    C. staffing.
    D. planning.
    E. controlling.

 

  1. The type of planning conducted on a long-range basis by top managers is usually called
    A. incremental.
    B. tactical.
    C. strategic.
    D. crisis.
    E. static.

 

  1. Crisis management plans generally cover maintaining business operations during a crisis and
    A. firing those responsible for the crisis.
    B. avoiding responsibility for the crisis.
    C. communicating with others about the situation and the company’s response to it.
    D. preventing the situations from occurring.
    E. all of the above.

 

 

 

  1. Dividing work into small units and assigning it to individuals are tasks related to
    A. planning.
    B. organizing.
    C. staffing.
    D. controlling.
    E. directing.

 

  1. Maria and Harold have just finished interviewing four candidates who want to work for Jackson Office Supply, Inc. They are involved in which of the following management functions?
    A. Planning
    B. Analyzing
    C. Staffing
    D. Controlling
    E. Directing

 

  1. Downsizing is an aspect most closely associated with
    A. staffing.
    B. planning.
    C. organizing.
    D. controlling.
    E. directing.

 

  1. Giving people incentives to achieve objectives relates to the management function of
    A. planning.
    B. organizing.
    C. staffing.
    D. controlling.
    E. directing.

 

 

 

  1. When Betsy pointed out to her supervisor that the furniture assemblers at their manufacturing plant were using 20 percent more nails than in the preceding month, she was involved in
    A. planning.
    B. organizing.
    C. staffing.
    D. controlling.
    E. directing.

 

  1. The first step in the control process is to
    A. ask your employees to fix any problems.
    B. take corrective actions when necessary.
    C. investigate the causes of any deviations.
    D. measure the actual performance.
    E. identify deviations from the standard.

 

 

Essay Questions

  1. What are the five activities, in the order delineated in your text, of the control process?

 

 

 

 

  1. Describe the major functions of management.

 

 

 

 

 

 

 

True / False Questions

  1. All organizations, regardless of size, have multiple levels of management.
    True    False

 

  1. A chief executive officer is a middle manager.
    True    False

 

  1. Top managers focus on strategic decisions to use resources to take advantage of opportunities.
    True    False

 

  1. Middle managers are responsible for tactical planning that will implement the general guidelines established by top management.
    True    False

 

  1. A department manager is a first-line manager.
    True    False

 

  1. All managers perform all five management functions but not to the same degree.
    True    False

 

 

 

 

Multiple Choice Questions

  1. Decisions regarding adding new products, acquiring companies, and moving into foreign markets would most typically be made by
    A. first-line management.
    B. a sales manager.
    C. middle management.
    D. a production manager.
    E. top management.

 

  1. Top managers spend most of their time performing which of the following management functions?
    A. Directing
    B. Controlling
    C. Organizing
    D. Staffing
    E. Planning

 

  1. _____ are responsible for tactical planning that will implement the general guidelines established by top management.
    A. CEOs
    B. Middle managers
    C. Top managers
    D. First-line supervisors
    E. Office managers

 

  1. The specific operations of the organization, plant, division, or department would most typically involve
    A. top management.
    B. middle management.
    C. first-line management.
    D. the board of directors.
    E. stockholders.

 

 

 

  1. Positions such as foremen, supervisors, and office managers are examples of
    A. top management.
    B. first-line management.
    C. middle management.
    D. executive levels.
    E. strategic decision makers.

 

  1. A person who analyzes a firm’s income and expenses over a specified period and selects appropriate ways to invest extra funds is involved in
    A. information technology management.
    B. marketing management.
    C. human resources management.
    D. production and operations management.
    E. financial management.

 

  1. Production and operations managers are concerned with
    A. identifying and efficiently using sources of financing.
    B. managing a division.
    C. planning, pricing, and promoting products.
    D. transforming resources into products.
    E. recruiting new employees and developing employee programs.

 

  1. A person in charge of designing production facilities, purchasing supplies, and ensuring that products meet quality standards is probably a
    A. financial manager.
    B. production and operations manager.
    C. human resources manager.
    D. marketing manager.
    E. administrative manager.

 

 

 

  1. The development of a performance-appraisal system is primarily the concern of
    A. financial management.
    B. human resources management.
    C. production and operations management.
    D. marketing management.
    E. administrative management.

 

  1. Developing and monitoring advertising and promotion efforts of a company would most likely involve the _______ managers.
    A. production
    B. operations
    C. marketing
    D. personnel
    E. administrative

 

 

Essay Questions

  1. Information technology managers are responsible for which duties within organizations? Give an example of an important task of an IT manager.

 

 

 

 

  1. How do top managers differ from first-line managers?

 

 

 

 

 

 

 

True / False Questions

  1. Autocratic leaders involve their employees in decisions.
    True    False

 

  1. Free-rein leaders allow their employees to work without much interference.
    True    False

 

  1. Although managers may not actually perform the specific jobs within organizations, they need the technical expertise required to performed jobs related to their area of management in order to train employees and answer questions.
    True    False

 

  1. Conceptual skills are the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive their underlying causes.
    True    False

 

  1. Human relations skills are highly important for managers.
    True    False

 

  1. Analytical skills involve the ability to think creatively.
    True    False

 

 

 

 

Multiple Choice Questions

  1. Bob has been put in charge of a group of new employees. He has told them they must perform their duties in the exact manner and order that he has commanded, with no exceptions. Bob is using
    A. democratic leadership.
    B. autocratic leadership.
    C. free-rein leadership.
    D. creative leadership.
    E. good leadership.

 

  1. When Karen allows her employees to do their work with little interference, her leadership style is
    A. democratic.
    B. republican.
    C. autocratic.
    D. free-rein.
    E. analytical.

 

  1. Joe met with all of his department heads to listen to their opinions about buying a new machine. Although they all thought it was a good idea, Joe did not buy the machine because his employees did not think it necessary. Joe’s leadership style is
    A. democratic.
    B. autocratic.
    C. free-rein.
    D. bad.
    E. good.

 

  1. Which of the following is best used when employees know the organization’s standards and are highly motivated to attain them?
    A. Democratic leadership
    B. Autocratic leadership
    C. Free-rein leadership
    D. Exemplary leadership
    E. No leadership

 

 

 

  1. To train employees, answer questions, and provide guidance in doing a task, managers need
    A. technical expertise.
    B. conceptual skills.
    C. analytical skills.
    D. leadership skills.
    E. creative skills.

 

  1. Having conceptual skills often means being able to
    A. perceive the causes of problems.
    B. identify relevant issues and recognize their importance.
    C. use a computer.
    D. motivate employees.
    E. think creatively and in abstract terms.

 

  1. Having analytical skills means that a manager is able to do all of the following except
    A. identify relevant issues and their importance.
    B. understand the relationships between issues.
    C. think logically.
    D. analyze the underlying causes of a problem.
    E. think in abstract terms.

 

  1. Having good human relations skills means that a manager is able to
    A. use a computer.
    B. train employees and solve problems.
    C. think creatively.
    D. work with others.
    E. all of the above.

 

 

 

  1. According to the text, all of the following are skills needed by managers except
    A. analytical.
    B. clerical.
    C. technical.
    D. conceptual.
    E. human relations.

 

  1. A(n) ________ leadership style is best for stimulating unskilled or unmotivated employees.
    A. bureaucratic
    B. democratic
    C. free-rein
    D. autocratic
    E. inclusive

 

 

Essay Questions

  1. What are the three leadership styles and under what circumstances is each style most effective?

 

 

 

 

  1. What are some of the skills needed by managers?

 

 

 

 

 

 

 

True / False Questions

  1. Situations requiring small-scale decisions generally occur after some warning signs.
    True    False

 

  1. The first step in good managerial decision-making is developing options.
    True    False

 

  1. Once a situation has been recognized, management must define it.
    True    False

 

  1. In the analyzing options stage, managers should consider the practicality and appropriateness of each option.
    True    False

 

  1. When making a decision, selecting the best option is an objective procedure.
    True    False

 

  1. Effective implementation of a major decision does not require any planning.
    True    False

 

 

 

 

Multiple Choice Questions

  1. When selecting the best option among a series of possible decisions,
    A. It is always only possible to choose one.
    B. Quantitative analysis is almost always helpful.
    C. Sometimes all options must be rejected.
    D. There may not be a best option.
    E. It may be possible to use a combination of several options.

 

  1. When assessing the appropriateness of a decision option, managers should
    A. consider its impact on the organization as a whole.
    B. only think narrowly about the one department most affected by the decision.
    C. ask their friends which option they would choose.
    D. choose the option that partially addresses the problem.
    E. go with his or her gut regarding which option is best.

 

  1. When implementing a decision, management should be ready to deal with:
    A. Irate consumers
    B. Employee confusion
    C. Unexpected consequences
    D. Payroll
    E. Nothing—a well-planned decision will always be implemented smoothly

 

  1. Why is monitoring the consequences of decisions important?
    A. Without it, the consequences of decisions may not be apparent quickly enough
    B. It is the logical step after implementing the decision
    C. It provides a financial barometer of how expensive decisions are
    D. Shareholders like to see monitoring of decision on annual reports
    E. Monitoring is not important and it is expensive

 

 

 

  1. Effective implementation of a major decision requires
    A. perseverance.
    B. luck.
    C. directing.
    D. planning.
    E. controlling.

 

  1. After monitoring the consequences of a decision, management determines that the decision failed to accomplish the desired result. Which of the following is not a possible reason for this failure?
    A. The decision was wrong.
    B. The situation changed.
    C. The situation was defined incorrectly.
    D. The implementation of the decision was flawed.
    E. The mathematical management formula was flawed.

 

  1. Selecting the best option in the decision-making process is
    A. simply a matter of plugging variables into a formula.
    B. often objective.
    C. often subjective.
    D. easy.
    E. all of the above.

 

  1. When analyzing options in the decision-making process, managers must consider the appropriateness and _______ of each option.
    A. utility
    B. practicality
    C. creativity
    D. feasibility
    E. relevance

 

 

 

  1. Managers at Sprocket Inc. have recognized declining sales on their ABC model product and must make a decision about what to do. Their next step is to
    A. define the situation.
    B. develop options.
    C. analyze options.
    D. select the best option.
    E. implement the decision.

 

  1. All of the following steps are a part of the decision-making process except
    A. defining the situation.
    B. developing options.
    C. analyzing options.
    D. delegating the decision.
    E. implementing the decision.

 

 

Essay Questions

  1. Why is monitoring the consequences of decisions important?

 

 

 

 

  1. What is the systematic six-step approach that leads to more effective decision making?

 

 

 

 

 

 

 

Multiple Choice Questions
Solve the Dilemma Making Infinity Computers Competitive

 

  1. What is Infinity Computers’ problem in this case?
    A. Infinity’s computers are too expensive.
    B. The strategies that originally made the company successful are no longer successful anymore.
    C. Infinity has no problem; the company is doing great.
    D. The president and CEO is a poor leader.
    E. Infinity’s products are ahead of their time and there is no market for it.

 

  1. What is a major weakness of the firm?
    A. Having a poor quality product
    B. Having a difficult leader
    C. Having too many employees and excessive reliance on one product
    D. Having too few employees
    E. Offering too many products

 

 

Essay Questions

  1. Evaluate Infinity’s current situation and analyze its strengths and weaknesses.

 

 

 

 

 

 

  1. Evaluate the opportunities for Infinity, including using its current strategy, and propose alternative strategies.

 

 

 

 

  1. Suggest a plan for Infinity to compete successfully over the next 10 years.

 

 

 

 

 

 

Chapter 06 The Nature of Management Answer Key
True / False Questions

  1. (p. 178-179)Managers can run a business with only human and physical resources.
    FALSE

Managers must have physical resources to turn into products to market, human resources to make and sell the product, and financial resources to purchase additional goods and services, pay employees, and operate the business.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

  1. (p. 178)Managers engage in planning, organizing, staffing, directing, and controlling.
    TRUE

All of these activities are necessary for managers to perform in order to coordinate the use of the organization’s resources.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: Management Functions

 

 

  1. (p. 178)Management takes place only in business settings.
    FALSE

Management takes place in any organization requiring the coordination of resources.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

  1. (p. 178)Management is a process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment.
    TRUE

Managers are the ones who make decisions about the use of an organization’s resources and are concerned with planning, organizing, leading, and controlling the organization’s activities to reach organizational objectives in an effective and efficient manner.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

  1. (p. 178)The decision to introduce new products in order to reach objectives is often a key management duty.
    TRUE

Acquiring suppliers is another important part of managing resources along with ensuring that new products are made available to customers. These are some of the resources managers must coordinate in order to achieve the organization’s objectives.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

 

  1. (p. 178)Employees are one of the most important resources in helping a company obtain its objectives.
    TRUE

Employee productivity and loyalty are critical to the creation and/or distribution of goods and services. Therefore, they are integral to organizational success.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

Multiple Choice Questions

  1. (p. 178)Management is a process designed to achieve an organization’s objectives by using its resources ____________ (accomplishing the objectives with a minimum of resources) and _________________ (having the intended result).
    A. effectively, efficiently
    B. efficiently, effectively
    C. quickly, competently
    D. competently, quickly
    E. thoroughly, completely

Management is a process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment. Effectively means having the intended result; efficiently means accomplishing the objectives with a minimum of resources.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

 

  1. (p. 178)Management is a process
    A. that is unanimous.
    B. of dissipating resources.
    C. of coordinating resources to achieve objectives.
    D. that works well.
    E. mainly used in for-profit businesses.

Management is a process to attain organizational objectives by coordinating the use of resources efficiently and effectively.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

  1. (p. 179)Managers need adequate ____________ resources to pay for essential activities.
    A. Human
    B. Management
    C. Financial
    D. Corporate
    E. Information

In order to pay for essential business activities, a manager needs adequate financial resources.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: Management Functions

 

 

  1. (p. 178)All of the following are typical resources that must be acquired by each organization in the pursuit of its objectives except
    A. people.
    B. raw materials and equipment.
    C. money.
    D. information.
    E. laws and regulations.

Every organization in the pursuit of its organizational objectives must acquire resources in the form of people, raw materials and equipment, money, and information. Laws are not a typical resource acquired by an organization.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

  1. (p. 178)If a manager is concerned about doing the work with the least cost and waste, then her primary managerial concern is
    A. effectiveness.
    B. accountability.
    C. delegation.
    D. hiring.
    E. efficiency.

Managing efficiently means accomplishing the objectives with a minimum of resources.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

 

  1. (p. 178)All of the following are functions of management except
    A. directing.
    B. staffing.
    C. promoting.
    D. organizing.
    E. controlling.

To coordinate the use of resources so that the business can develop, make, and sell products, managers engage in a series of activities: planning, organizing, staffing, directing, and controlling.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: Management Functions

  1. (p. 178)_____ make decisions about the use of an organization’s resources and are concerned with planning, organizing, leading, and controlling the organization’s activities.
    A. Managers
    B. Shareholders
    C. Employees
    D. Consumers
    E. Suppliers

Managers are the ones who make decisions about the use of an organization’s resources and are concerned with planning, organizing, leading, and controlling the organization’s activities.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

 

  1. (p. 178)When providing benefits, a manager is most closely involved with which of the following resources?
    A. Natural
    B. Physical
    C. Human
    D. Financial
    E. Structural

Employees (human resources) are one of the most important resources in helping a business attain its objectives. Successful companies such as Starbucks recruit, train, compensate, and provide benefits (such as shares of stock and health insurance) to foster employee loyalty.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

  1. (p. 178)If a manager is organizing equipment within a factory setting, he is mainly involved in which of the following resources?
    A. Natural
    B. Physical
    C. Human
    D. Financial
    E. Structural

Managers deal with three resources to run a business: physical resources (raw materials and equipment), human resources (employees), and financial resources. Equipment and factories would best fit under physical resources, not human or financial resources.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

 

  1. (p. 178-179)If a manager is analyzing several methods for obtaining the money needed to expand operations, she is involved with which of the following resources?
    A. Natural
    B. Physical
    C. Human
    D. Financial
    E. Structural

Financial resources are needed to purchase additional goods and services, pay employees, and generally operate the business.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

Essay Questions

  1. (p. 178)What are the resources essential to every organization?

Every organization must acquire resources (people, raw materials and equipment, money, and information) to effectively pursue its objectives and coordinate their use to turn out a final good or service. Employees are one of the most important resources in a company. Financial resources are required to help an organization pay for its essential activities. Suppliers can also be a key part of managing resources, as suppliers provide raw materials and equipment to organizations.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

 

  1. (p. 178)What is management?

Management is the process of coordinating resources to achieve an organization’s objectives effectively and efficiently. Effectively means having the intended result; efficiently means accomplishing the objectives with a minimum of resources. Management is universal, which means it is used in all organizations regardless of organizational objective.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-01 Define management; and explain its role in the achievement of organizational objectives.
Topic: The Importance of Management

 

True / False Questions

  1. (p. 179)Planning involves forecasting events and determining the best course of action from a set of options or choices.
    TRUE

Planning for managers involves forecasting events and then specifying what should be done, by whom, when, where, and how.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

  1. (p. 183)Crisis management plans are the long-range plans developed by top management.
    FALSE

Crisis management is an element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, computer virus, or airplane crash.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

 

  1. (p. 184)Staffing is the structuring of resources and activities to accomplish goals in an efficient and effective manner.
    FALSE

Staffing is the hiring of people to carry out the work of the organization.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

  1. (p. 185)Directing is motivating and leading employees to achieve organizational objectives.
    TRUE

All managers must direct their employees by motivating them, often through incentives, to achieve the goals of the organization.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

  1. (p. 185)Taking action to correct deviations from standards is part of the controlling function.
    TRUE

Controlling involves (1) measuring performance, (2) comparing present performance with standards or objectives, (3) identifying deviations from the standards, (4) investigating the causes of deviations and (5) taking corrective action when necessary.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

 

  1. (p. 185)An important part of good directing is administering awards and recognition.
    TRUE

Directing involves motivating employees, and recognition and appreciation often act as the best motivators.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

Multiple Choice Questions

  1. (p. 179)Determining an organization’s objectives and deciding how to accomplish them are part of the management function known as
    A. planning.
    B. organizing.
    C. staffing.
    D. controlling.
    E. directing.

Planning involves forecasting events and determining the best course of action from a set of options or choices in order to attain organizational objectives.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

 

  1. (p. 179)Forecasting is most closely associated with
    A. organizing.
    B. directing.
    C. staffing.
    D. planning.
    E. controlling.

Planning involves forecasting events and determining the best course of action from a set of options or choices.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

  1. (p. 181)The type of planning conducted on a long-range basis by top managers is usually called
    A. incremental.
    B. tactical.
    C. strategic.
    D. crisis.
    E. static.

Strategic plans generally cover a period between 2 and 10 years or even longer.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

 

  1. (p. 183)Crisis management plans generally cover maintaining business operations during a crisis and
    A. firing those responsible for the crisis.
    B. avoiding responsibility for the crisis.
    C. communicating with others about the situation and the company’s response to it.
    D. preventing the situations from occurring.
    E. all of the above.

Crisis management plans generally cover maintaining business operations throughout a crisis and communicating with the public, employees, and officials about the nature of and the company’s response to the problem.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

  1. (p. 183)Dividing work into small units and assigning it to individuals are tasks related to
    A. planning.
    B. organizing.
    C. staffing.
    D. controlling.
    E. directing.

Managers organize by reviewing plans and determining what activities are necessary to implement them; then they divide the work into small units and assign it to specific individuals, groups, or departments.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

 

  1. (p. 184)Maria and Harold have just finished interviewing four candidates who want to work for Jackson Office Supply, Inc. They are involved in which of the following management functions?
    A. Planning
    B. Analyzing
    C. Staffing
    D. Controlling
    E. Directing

Staffing involves hiring people to carry out the work.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

  1. (p. 184)Downsizing is an aspect most closely associated with
    A. staffing.
    B. planning.
    C. organizing.
    D. controlling.
    E. directing.

Another aspect of staffing is downsizing, the elimination of a significant numbers of employees from an organization, which has been a pervasive and much-talked-about trend.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

 

  1. (p. 185)Giving people incentives to achieve objectives relates to the management function of
    A. planning.
    B. organizing.
    C. staffing.
    D. controlling.
    E. directing.

Directing is motivating and leading employees to achieve organizational objectives; Managers may motivate employees by providing incentives—such as the promise of a raise or promotion—for them to do a good job.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

  1. (p. 185)When Betsy pointed out to her supervisor that the furniture assemblers at their manufacturing plant were using 20 percent more nails than in the preceding month, she was involved in
    A. planning.
    B. organizing.
    C. staffing.
    D. controlling.
    E. directing.

Controlling is the process of evaluating and correcting the activities to keep the organization on course. This requires managers to monitor performance and compare it to standards.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

 

  1. (p. 185)The first step in the control process is to
    A. ask your employees to fix any problems.
    B. take corrective actions when necessary.
    C. investigate the causes of any deviations.
    D. measure the actual performance.
    E. identify deviations from the standard.

Control involves five activities: (1) measuring performance, (2) comparing present performance with standards or objectives, (3) identifying deviations from the standards, (4) investigating the causes of deviations, and (5) taking corrective actions when necessary.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

Essay Questions

  1. (p. 185)What are the five activities, in the order delineated in your text, of the control process?

Control encompasses five activities: (1) measuring performance, (2) comparing present performance with standards or objectives, (3) identifying deviations from the standards, (4) investigating the causes of deviations, and (5) taking corrective actions when necessary. Controlling and planning are closely linked activities.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

 

  1. (p. 130-135)Describe the major functions of management.

To coordinate the use of resources, managers may engage in a series of activities, including planning, organizing, staffing, directing, and controlling. Planning is the process of determining the organization’s objectives and deciding how to accomplish them. Organizing is the structuring of resources and activities to accomplish objectives in an efficient and effective manner. Staffing is the hiring of people to carry out the work of the organization. Directing refers to motivating and leading employees to achieve organizational objectives. Controlling is the process of evaluating and correcting activities to keep the organization on course.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-02 Describe the major functions of management.
Topic: Management Functions

 

True / False Questions

  1. (p. 186)All organizations, regardless of size, have multiple levels of management.
    FALSE

Very small organizations may have only one manager who assumes the responsibilities of all three management levels (top, middle, and first-line management).

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

  1. (p. 186)A chief executive officer is a middle manager.
    FALSE

A chief executive officer is a top manager.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 187)Top managers focus on strategic decisions to use resources to take advantage of opportunities.
    TRUE

Top managers make the organization’s strategic decisions, decisions that focus on an overall scheme or key idea for using resources to take advantage of opportunities.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 188)Middle managers are responsible for tactical planning that will implement the general guidelines established by top management.
    TRUE

Rather than make strategic decisions about the organization as a whole (as top managers do), middle managers are responsible for tactical planning that will implement the general guidelines established by top management.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

  1. (p. 189)A department manager is a first-line manager.
    FALSE

Department managers are in middle management.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 186)All managers perform all five management functions but not to the same degree.
    TRUE

All managers perform the five management functions of planning, organizing, staffing, directing, and controlling.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

Multiple Choice Questions

  1. (p. 187)Decisions regarding adding new products, acquiring companies, and moving into foreign markets would most typically be made by
    A. first-line management.
    B. a sales manager.
    C. middle management.
    D. a production manager.
    E. top management.

Top managers decide whether to add products, acquire companies, sell unprofitable business segments, and move into foreign markets.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 187)Top managers spend most of their time performing which of the following management functions?
    A. Directing
    B. Controlling
    C. Organizing
    D. Staffing
    E. Planning

Top managers spend most of their time planning.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

  1. (p. 188)_____ are responsible for tactical planning that will implement the general guidelines established by top management.
    A. CEOs
    B. Middle managers
    C. Top managers
    D. First-line supervisors
    E. Office managers

Middle managers are those responsible for tactical planning that will implement the general guidelines established by top management.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 189)The specific operations of the organization, plant, division, or department would most typically involve
    A. top management.
    B. middle management.
    C. first-line management.
    D. the board of directors.
    E. stockholders.

In business, plant managers, division managers, and department managers make up middle management.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

  1. (p. 189)Positions such as foremen, supervisors, and office managers are examples of
    A. top management.
    B. first-line management.
    C. middle management.
    D. executive levels.
    E. strategic decision makers.

Common titles for first-line managers are foremen, supervisors, and office managers.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 189)A person who analyzes a firm’s income and expenses over a specified period and selects appropriate ways to invest extra funds is involved in
    A. information technology management.
    B. marketing management.
    C. human resources management.
    D. production and operations management.
    E. financial management.

Financial management is responsible for projecting income and expenses over a specified period along with identifying and selecting appropriate ways to invest extra funds.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

  1. (p. 190)Production and operations managers are concerned with
    A. identifying and efficiently using sources of financing.
    B. managing a division.
    C. planning, pricing, and promoting products.
    D. transforming resources into products.
    E. recruiting new employees and developing employee programs.

Production and operations managers develop and administer the activities involved in transforming resources into goods, services, and ideas ready for the marketplace.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 190)A person in charge of designing production facilities, purchasing supplies, and ensuring that products meet quality standards is probably a
    A. financial manager.
    B. production and operations manager.
    C. human resources manager.
    D. marketing manager.
    E. administrative manager.

Production and operations managers are typically involved in planning and designing production facilities, purchasing raw materials and supplies, managing inventory, scheduling processes to meet demand, and ensuring that products meet quality standards.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

  1. (p. 190)The development of a performance-appraisal system is primarily the concern of
    A. financial management.
    B. human resources management.
    C. production and operations management.
    D. marketing management.
    E. administrative management.

One of the responsibilities of human resource managers is to determine performance-appraisal systems.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 190)Developing and monitoring advertising and promotion efforts of a company would most likely involve the _______ managers.
    A. production
    B. operations
    C. marketing
    D. personnel
    E. administrative

Specific jobs in marketing are found in areas such as marketing research, advertising, personal selling, retailing, telemarketing, Internet marketing, and other forms of company promotion.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

Essay Questions

  1. (p. 191)Information technology managers are responsible for which duties within organizations? Give an example of an important task of an IT manager.

Information Technology (IT) management is responsible for implementing, maintaining, and controlling technology applications in business, such as computer networks. One major task in IT management is securing computer systems from unauthorized users while making the system easy to use for employees, suppliers, and others who have legitimate reason to access the system. Another crucial task is protecting the systems’ data, even during a disaster such as a fire. IT managers are also responsible for teaching and helping employees use technology resources efficiently through training and support.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

  1. (p. 186-189)How do top managers differ from first-line managers?

Top managers (the president and other top executives) have overall responsibility for the organization. Although top-level managers perform all major management functions, they spend most of their time planning. First-line managers supervise workers in day-to-day operations of the organization and, consequently, they spend most of their time directing and controlling.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 06-03 Distinguish among three levels of management and the concerns of managers at each level.
Topic: Types of Management

 

 

True / False Questions

  1. (p. 193)Autocratic leaders involve their employees in decisions.
    FALSE

Democratic leaders involve their employees in decisions.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 193)Free-rein leaders allow their employees to work without much interference.
    TRUE

The manager sets performance standards and allows employees to find their own ways to meet them.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 194)Although managers may not actually perform the specific jobs within organizations, they need the technical expertise required to performed jobs related to their area of management in order to train employees and answer questions.
    TRUE

Production managers do not necessarily need to perform a job, but they must have technical expertise to effectively train employees, answer questions, provide guidance, and solve problems.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

 

 

  1. (p. 194)Conceptual skills are the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive their underlying causes.
    FALSE

Conceptual skills involve the ability to think in abstract terms and to see how parts fit together to form the whole, skills that are needed by top-level managers.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 195)Human relations skills are highly important for managers.
    TRUE

Those who can relate to others, communicate well with others, understand the needs of others, and show a true appreciation for others are generally more successful than managers who lack human relations skills.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 194)Analytical skills involve the ability to think creatively.
    FALSE

Analytical skills involve the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive the underlying causes of a situation.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

 

 

Multiple Choice Questions

  1. (p. 193)Bob has been put in charge of a group of new employees. He has told them they must perform their duties in the exact manner and order that he has commanded, with no exceptions. Bob is using
    A. democratic leadership.
    B. autocratic leadership.
    C. free-rein leadership.
    D. creative leadership.
    E. good leadership.

Autocratic leaders make all the decisions and then tell employees what must be done and how to do it.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 193)When Karen allows her employees to do their work with little interference, her leadership style is
    A. democratic.
    B. republican.
    C. autocratic.
    D. free-rein.
    E. analytical.

Free-rein leaders let their employees work without much interference. The manager sets performance standards and allows employees to find their own ways to meet them.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

 

 

  1. (p. 193)Joe met with all of his department heads to listen to their opinions about buying a new machine. Although they all thought it was a good idea, Joe did not buy the machine because his employees did not think it necessary. Joe’s leadership style is
    A. democratic.
    B. autocratic.
    C. free-rein.
    D. bad.
    E. good.

Democratic leaders present a situation and encourage their subordinates to express opinions and contribute ideas. The manager then considers the employees’ points of view and makes the decision.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 193)Which of the following is best used when employees know the organization’s standards and are highly motivated to attain them?
    A. Democratic leadership
    B. Autocratic leadership
    C. Free-rein leadership
    D. Exemplary leadership
    E. No leadership

For a free-rein style of management to be effective, employees must know what the standards are, and they must be motivated to attain the standards.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

 

 

  1. (p. 194)To train employees, answer questions, and provide guidance in doing a task, managers need
    A. technical expertise.
    B. conceptual skills.
    C. analytical skills.
    D. leadership skills.
    E. creative skills.

Technical expertise is the specialized knowledge and training that managers need to perform jobs related to their area of management and to train employees, answer questions, offer guidance, and solve problems.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 194)Having conceptual skills often means being able to
    A. perceive the causes of problems.
    B. identify relevant issues and recognize their importance.
    C. use a computer.
    D. motivate employees.
    E. think creatively and in abstract terms.

Conceptual skills also involve the ability to think creatively.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

 

 

  1. (p. 194)Having analytical skills means that a manager is able to do all of the following except
    A. identify relevant issues and their importance.
    B. understand the relationships between issues.
    C. think logically.
    D. analyze the underlying causes of a problem.
    E. think in abstract terms.

Thinking in abstract terms is a conceptual skill, not analytical.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 195)Having good human relations skills means that a manager is able to
    A. use a computer.
    B. train employees and solve problems.
    C. think creatively.
    D. work with others.
    E. all of the above.

Human relations skills are the ability to deal with people, both inside and outside the organization.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

 

 

  1. (p. 192)According to the text, all of the following are skills needed by managers except
    A. analytical.
    B. clerical.
    C. technical.
    D. conceptual.
    E. human relations.

Managing effectively and efficiently requires certain skills—leadership, technical expertise, conceptual skills, analytical skills, and human relations skills. Clerical skills are not a requirement.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 193)A(n) ________ leadership style is best for stimulating unskilled or unmotivated employees.
    A. bureaucratic
    B. democratic
    C. free-rein
    D. autocratic
    E. inclusive

An autocratic leadership style is best for stimulating unskilled or unmotivated employees.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: The Reality of Management

 

 

 

Essay Questions

  1. (p. 193)What are the three leadership styles and under what circumstances is each style most effective?

The three leadership styles are autocratic, democratic and free-rein. An autocratic style of leadership is generally best for stimulating unskilled, unmotivated employees; highly skilled, trained, and motivated employees respond better to democratic or free-rein leadership styles. For the free-rein style to be effective, employees must know what the standards are, and they must be motivated to attain them.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

  1. (p. 192)What are some of the skills needed by managers?

Skills needed by managers include leadership, technical expertise, conceptual skills, analytical skills, and human relations skills.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-04 Specify the skills managers need to be successful.
Topic: Skills Needed By Managers

 

 

True / False Questions

  1. (p. 197)Situations requiring small-scale decisions generally occur after some warning signs.
    FALSE

Situations requiring large-scale decisions generally occur after some warning signs, while small-scale decisions may have to be made without any warning.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 196)The first step in good managerial decision-making is developing options.
    FALSE

The six steps are (1) recognizing and defining the decision situation, (2) developing options to resolve the situation, (3) analyzing the options, (4) selecting the best option, (5) implementing the decision, and (6) monitoring the consequences of the decision.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 197)Once a situation has been recognized, management must define it.
    TRUE

Once a situation has been recognized, management must define it so that it can be dealt with.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

 

 

  1. (p. 198)In the analyzing options stage, managers should consider the practicality and appropriateness of each option.
    TRUE

After developing a list of possible courses of action, management should analyze the practicality and appropriateness of each option.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 198)When making a decision, selecting the best option is an objective procedure.
    FALSE

Selection of an option is often a subjective procedure because many situations do not lend themselves to mathematical analysis.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 198)Effective implementation of a major decision does not require any planning.
    FALSE

Effective implementation of a decision to abandon a product, close a plant, purchase a new business, or something similar requires planning.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

 

 

 

Multiple Choice Questions

  1. (p. 198)When selecting the best option among a series of possible decisions,
    A. It is always only possible to choose one.
    B. Quantitative analysis is almost always helpful.
    C. Sometimes all options must be rejected.
    D. There may not be a best option.
    E. It may be possible to use a combination of several options.

Selection is often a subjective procedure because many situations do not lend themselves to quantitative analysis. Of course, it is not always necessary to select only one option and reject all others; it may be possible to select and use a combination of several options.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 198)When assessing the appropriateness of a decision option, managers should
    A. consider its impact on the organization as a whole.
    B. only think narrowly about the one department most affected by the decision.
    C. ask their friends which option they would choose.
    D. choose the option that partially addresses the problem.
    E. go with his or her gut regarding which option is best.

When assessing appropriateness, the decision maker should consider whether the proposed option adequately addresses the situation. When analyzing the consequences of an option, managers should consider its impact on the situation and on the organization as a whole.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

 

 

  1. (p. 198)When implementing a decision, management should be ready to deal with:
    A. Irate consumers
    B. Employee confusion
    C. Unexpected consequences
    D. Payroll
    E. Nothing—a well-planned decision will always be implemented smoothly

Management should be ready to deal with the unexpected consequences. No matter how well planned implementation is, unforeseen problems will arise.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 199)Why is monitoring the consequences of decisions important?
    A. Without it, the consequences of decisions may not be apparent quickly enough
    B. It is the logical step after implementing the decision
    C. It provides a financial barometer of how expensive decisions are
    D. Shareholders like to see monitoring of decision on annual reports
    E. Monitoring is not important and it is expensive

Without proper monitoring, the consequences of decisions may not be known quickly enough to make efficient changes. If the desired result is achieved, management can reasonably conclude that it made a good choice. If the desired result is not achieved, further analysis is warranted.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

 

 

  1. (p. 198)Effective implementation of a major decision requires
    A. perseverance.
    B. luck.
    C. directing.
    D. planning.
    E. controlling.

Effective implementation of a decision to abandon a product, close a plant, purchase a new business, or something similar requires planning.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 199)After monitoring the consequences of a decision, management determines that the decision failed to accomplish the desired result. Which of the following is not a possible reason for this failure?
    A. The decision was wrong.
    B. The situation changed.
    C. The situation was defined incorrectly.
    D. The implementation of the decision was flawed.
    E. The mathematical management formula was flawed.

Management is not a cut-and-dried process. There is no mathematical formula for managing an organization.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

 

 

  1. (p. 198)Selecting the best option in the decision-making process is
    A. simply a matter of plugging variables into a formula.
    B. often objective.
    C. often subjective.
    D. easy.
    E. all of the above.

Selection is often a subjective procedure because many situations do not lend themselves to mathematical analysis.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 198)When analyzing options in the decision-making process, managers must consider the appropriateness and _______ of each option.
    A. utility
    B. practicality
    C. creativity
    D. feasibility
    E. relevance

Once the options have been developed, management should then analyze the practicality and appropriateness of each option. An option may be deemed impractical because of a lack of financial resources to implement it.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

 

 

  1. (p. 197)Managers at Sprocket Inc. have recognized declining sales on their ABC model product and must make a decision about what to do. Their next step is to
    A. define the situation.
    B. develop options.
    C. analyze options.
    D. select the best option.
    E. implement the decision.

As part of the first step, the manager must first recognize the situation and then define it before developing options.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 196)All of the following steps are a part of the decision-making process except
    A. defining the situation.
    B. developing options.
    C. analyzing options.
    D. delegating the decision.
    E. implementing the decision.

The steps involve (1) recognizing and defining the decision situation, (2) developing options to resolve the situation, (3) analyzing the options, (4) selecting the best option, (5) implementing the decision, and (6) monitoring the consequences of the decision. There is nothing in there about delegating the decision.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

 

 

 

Essay Questions

  1. (p. 199)Why is monitoring the consequences of decisions important?

Without proper monitoring, the consequences of decisions may not be known quickly enough to make efficient changes. If the desired result is achieved, management can reasonably conclude that it made a good choice. If the desired result is not achieved, further analysis is warranted.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

  1. (p. 196)What is the systematic six-step approach that leads to more effective decision making?

The six steps to more effective management decision making are (1) recognizing and defining the decision situation, (2) developing options to resolve the situation, (3) analyzing the options, (4) selecting the best option, (5) implementing the decision, and (6) monitoring its consequences.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 06-05 Summarize the systematic approach to decision making used by many business managers.
Topic: Decision Making

 

 

Multiple Choice Questions
Solve the Dilemma Making Infinity Computers Competitive

 

  1. (p. 204)What is Infinity Computers’ problem in this case?
    A. Infinity’s computers are too expensive.
    B. The strategies that originally made the company successful are no longer successful anymore.
    C. Infinity has no problem; the company is doing great.
    D. The president and CEO is a poor leader.
    E. Infinity’s products are ahead of their time and there is no market for it.

Recognizing that the strategies that initially made the firm successful are no longer working effectively, Anderson wants to reorganize the company to make it more responsive and competitive and to cut costs.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-06 Recommend a new strategy to revive a struggling business.
Topic: Solve the Dilemma

  1. (p. 204)What is a major weakness of the firm?
    A. Having a poor quality product
    B. Having a difficult leader
    C. Having too many employees and excessive reliance on one product
    D. Having too few employees
    E. Offering too many products

Infinity Computers has two major weaknesses: too many employees and an excessive reliance on one product.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 06-06 Recommend a new strategy to revive a struggling business.
Topic: Solve the Dilemma

 

 

Essay Questions

  1. (p. 204)Evaluate Infinity’s current situation and analyze its strengths and weaknesses.

Infinity’s strengths include the competitive price of its products, the leadership abilities of its CEO, along with the loyalty and motivation of its employees.
Its weaknesses are its tendency to follow its competitors instead of innovating, its overcapacity in terms of workforce, and its reliance on a single product.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 06-06 Recommend a new strategy to revive a struggling business.
Topic: Solve the Dilemma

  1. (p. 204)Evaluate the opportunities for Infinity, including using its current strategy, and propose alternative strategies.

An opportunity for Infinity may be to create a differentiated notebook with special features at a lower price than its competitors. Infinity could also rely on the loyalty and motivation of its employees to offer outstanding customer services.

 

AACSB: Reflective Thinking
Bloom’s: Evaluation
Difficulty: Medium
Learning Objective: 06-06 Recommend a new strategy to revive a struggling business.
Topic: Solve the Dilemma

  1. (p. 204)Suggest a plan for Infinity to compete successfully over the next 10 years.

Responses will vary, but students should provide the kernel of a strategic plan including such sections as objectives, means to achieve the objectives, and measures of results.

 

AACSB: Reflective Thinking
Bloom’s: Evaluation
Difficulty: Medium
Learning Objective: 06-06 Recommend a new strategy to revive a struggling business.
Topic: Solve the Dilemma

Chapter 07

Organization, Teamwork, and Communication

 

True / False Questions

  1. Organizational culture cannot be expressed informally through its mission statement or code of ethics.
    True    False

 

  1. Organizational structures are always explicitly defined.
    True    False

 

  1. An organization’s structure develops as managers assign tasks to work groups and specific individuals and coordinate the diverse activities required to attain organizational objectives.
    True    False

 

  1. Organizational growth requires organizing different resources.
    True    False

 

  1. The more complex organizations become, the more they need to develop formal structures to function efficiently.
    True    False

 

 

Multiple Choice Questions

  1. Which of the following is not part of organizational culture?
    A. Values
    B. Beliefs
    C. Role models
    D. Religion
    E. Traditions

 

 

 

  1. Which is not a means of formally expressing an organization’s culture?
    A. Ceremonies
    B. Code of ethics
    C. Mission statement
    D. Manuals
    E. Employee dress codes

 

  1. Dress codes, work habits, extracurricular activities, and stories are informal expressions of an organization’s
    A. grapevine.
    B. lack of organization.
    C. informality.
    D. culture.
    E. formality.

 

  1. Organizational structure is defined as
    A. the arrangement or relationship of positions within an organization.
    B. a group of people working together to achieve an objective.
    C. the division of labor into small specific tasks.
    D. the grouping of jobs into working units.
    E. the grouping of working units into departments or divisions.

 

  1. When managers assign work activities to groups and individuals and coordinate the diverse activities required to attain organizational objectives, they contribute to the development of organizational
    A. structure.
    B. informality.
    C. spontaneity.
    D. growth.
    E. accountability.

 

 

 

  1. A department store’s organizational structure defines the relationships between
    A. salespersons and merchandise buyers.
    B. credit managers and maintenance people.
    C. department managers and customers.
    D. maintenance people and salespersons.
    E. all the individuals working together to achieve its objectives.

 

  1. Which of the following requires an increasing degree of organizing within an organization?
    A. Profits
    B. Sales
    C. Growth
    D. Decline
    E. Aging

 

  1. The more people an organization has and the greater its specialization, the greater is its need for
    A. profits.
    B. sales.
    C. growth.
    D. structure.
    E. all of the above.

 

  1. An organization’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior represent its
    A. formal organization.
    B. information organization.
    C. organizational culture.
    D. grapevine.
    E. organizational manual.

 

 

 

 

Essay Questions

  1. What is organizational culture and how is it expressed?

 

 

 

 

  1. What is organizational structure? How does it develop?

 

 

 

 

 

True / False Questions

  1. The rationalization for specialization is that people can perform several tasks more efficiently than just one.
    True    False

 

  1. Departmentalization is the division of labor into small, specialized tasks and the assignment of single tasks to employees.
    True    False

 

  1. An advantage of functional departmentalization is that managers need only the skills that apply to their department’s function.
    True    False

 

 

 

  1. Disadvantages of product departmentalization is that it duplicates functions and does not focus on the organization’s overall objectives.
    True    False

 

  1. Product departmentalization allows the coordination of all activities related to a product or product group and simplifies decision-making.
    True    False

 

 

Multiple Choice Questions

  1. The rationale for job specialization is that
    A. it is more efficient.
    B. workers become bored and leave.
    C. workers shift from one job to another.
    D. it adversely affects costs.
    E. it adversely affects quality.

 

  1. The benefits of division of labor were described in The Wealth of Nations by
    A. Henry Ford.
    B. John Adams.
    C. Adam Smith.
    D. Cyrus McCormick.
    E. Sam Walton.

 

  1. Adam Smith illustrated improvements in efficiency through the application of
    A. departmentalization.
    B. specialization.
    C. generalization.
    D. registration.
    E. delegation.

 

 

 

  1. Many experts believe people can perform most efficiently if they master just one task rather than all tasks. A famous book that supports this point was published in 1776 and is titled
    A. The Wealth of Nations.
    B. Magna Carta.
    C. Declaration of Independence.
    D. A Country’s Prosperity.
    E. To Be or Not to Be.

 

  1. Small businesses commonly employ
    A. line departmentalization.
    B. customer departmentalization.
    C. functional departmentalization.
    D. product departmentalization.
    E. geographical departmentalization.

 

  1. All of the following are approaches to departmentalization except
    A. function.
    B. product.
    C. geographic region.
    D. customer.
    E. line.

 

  1. A company that has departments for marketing, finance, personnel, and production is organized by
    A. product.
    B. function.
    C. territory.
    D. customer.
    E. geographic region.

 

 

 

  1. If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision-making is slow, then these would be weaknesses indicative of _______ departmentalization.
    A. territorial
    B. functional
    C. product
    D. customer
    E. process

 

  1. _____ departmentalization arranges jobs around the needs of various types of customers.
    A. Product
    B. Functional
    C. Geographical
    D. Customer
    E. Matrix

 

 

Essay Questions

  1. What are some of the advantages of specialization? What are some of its disadvantages?

 

 

 

 

  1. What are the different means of organizational departmentalization? Be sure to give an illustrative example of each.

 

 

 

 

 

 

 

True / False Questions

  1. Accountability is the obligation employees have to carry out assigned tasks.
    True    False

 

  1. In decentralized organizations, lower-level managers have a good understanding of their external environment and need to react quickly to it.
    True    False

 

  1. A wide span of management is best when a manager and subordinates are not in close proximity.
    True    False

 

  1. Flat organizations have narrow spans of management.
    True    False

 

  1. A company with many layers of managers is considered tall.
    True    False

 

 

Multiple Choice Questions

  1. Which of the following concepts frees a manager to attend to matters that he or she is especially qualified to deal with?
    A. Delegation of authority
    B. Responsibility
    C. Accountability
    D. Knowledge
    E. Education

 

 

 

  1. If Juan’s manager gives him an assignment without providing Juan with the resources to complete the assignment, Juan’s manager is exhibiting improper
    A. accountability.
    B. organizational culture.
    C. delegation of authority.
    D. customer departmentalization.
    E. centralization.

 

  1. Joe is a copywriter in his company’s marketing department. The copy for an ad placed in Time magazine for his company spelled the company’s name wrong. Who is ultimately responsible for the mistake?
    A. The copywriter
    B. The marketing vice president
    C. Time magazine
    D. The customer
    E. Nobody—things just happen

 

  1. When the decisions of a company are very risky and low-level managers lack decision-making skills, the company will tend to
    A. decentralize.
    B. delegate.
    C. centralize.
    D. organize.
    E. matricize.

 

  1. An organization operating in a complex and unpredictable environment is likely to be _______ in order to improve responsiveness and enhance creativity.
    A. highly centralized
    B. decentralized
    C. informal
    D. formal
    E. very productive

 

 

 

  1. One of the things to consider when determining the appropriate span of management is
    A. physical distances between subordinate and supervisor, and subordinate competence.
    B. responsibilities of subordinate outside the organization.
    C. organizational culture.
    D. the management style of the manager.
    E. products that the company sells.

 

  1. When superiors and subordinates are not in close proximity and the manager has many responsibilities in addition to supervision, the appropriate span of management would be
    A. big.
    B. wide.
    C. narrow.
    D. flat.
    E. circular.

 

  1. Companies that have flat organizations tend also to have
    A. tall spans of management.
    B. minimal spans of management.
    C. narrow spans of management.
    D. short spans of management.
    E. wide spans of management.

 

 

Essay Questions

  1. What is a span of management? What are the differences between organizations with wide versus narrow spans of management?

 

 

 

 

 

 

  1. Define delegation of authority and show its relationship to responsibility.

 

 

 

 

 

True / False Questions

  1. Line structure is based on direct lines of authority from the top executive to the lowest level of employee.
    True    False

 

  1. The line-and-staff structure divides general managing duties into functional areas, each with a separate supervisor.
    True    False

 

  1. In a line-and-staff structure, staff managers do not have direct authority over line managers.
    True    False

 

  1. Matrix structures are often complex and expensive, and can lead to problems of who has the ultimate authority.
    True    False

 

  1. Multidivisional structures are not good at allowing for delegation of authority, and therefore do not allow divisional and departmental managers a chance to specialize.
    True    False

 

 

 

 

Multiple Choice Questions

  1. Which of the following is not a basis for organizing using a multidivisional structure?
    A. Geography
    B. Project
    C. Product
    D. Customer
    E. Function

 

  1. An organizational form that is based on direct lines of authority from the top executive to the lowest level of employees is called
    A. line structure.
    B. functional structure.
    C. line-and-staff structure.
    D. matrix structure.
    E. a committee.

 

  1. An advantage of line structure in organizations is
    A. a clear chain of command.
    B. a high level of centralization.
    C. shared decision making.
    D. that managers possess a wide range of knowledge.
    E. there are many layers.

 

  1. A disadvantage of line structure is
    A. an unclear chain of command.
    B. the speed of decision making.
    C. that there are no direct lines of authority.
    D. that it is very uncommon.
    E. that managers must possess a wide range of knowledge and skills.

 

 

 

  1. Which of the following organizational forms allows managers to take responsibility for the areas in which they specialize?
    A. Line structure
    B. Functional structure
    C. Line-and-staff structure
    D. Matrix structure
    E. A committee

 

  1. Multidivisional structures
    A. are temporary.
    B. organize departments into larger divisions, often based on geography, product, and/or customer.
    C. bring together specialists from a variety of areas to work on a single project.
    D. make slower decisions.
    E. are less innovative.

 

  1. Which of the following organizational forms is also called a project management structure?
    A. Bureaucratic structure
    B. Line structure
    C. Complex structure
    D. Matrix structure
    E. None of the above

 

  1. Which of the following organizational forms is most likely to be complex and expensive?
    A. Line structure
    B. Functional structure
    C. Line-and-staff structure
    D. Matrix structure
    E. Committee

 

 

 

 

Essay Questions

  1. What are the benefits and drawbacks of using a matrix structure to organize?

 

 

 

 

  1. What is the difference between line structure and line-and-staff structure?

 

 

 

 

 

True / False Questions

  1. Regardless of how a business is organized, most of the essential work of business occurs in individual work groups and teams.
    True    False

 

  1. All groups are teams, but not all teams are groups.
    True    False

 

  1. Teams can create more solutions for solving problems than individuals.
    True    False

 

 

 

  1. Product-development teams are a special type of task force formed to devise, design, and implement a new product.
    True    False

 

  1. Quality assurance teams are groups of employees brought together to solve specific quality, productivity, or service problems.
    True    False

 

 

Multiple Choice Questions

  1. Which of the following is formed to solve specific quality, service or productivity problems?
    A. Self-directed work team
    B. Product-development team
    C. Work group
    D. Quality-assurance team
    E. Task force

 

  1. Which of the following is a temporary group of employees, usually chosen for their expertise, responsible for bringing out a specific change?
    A. Self-directed work team
    B. Product-development team
    C. Work group
    D. Quality-assurance team
    E. Task force

 

  1. Work groups
    A. have shared leadership roles.
    B. have a specific purpose that the group itself delivers.
    C. create collective work products.
    D. have individual accountability.
    E. encourage open-ended discussion.

 

 

 

  1. Teams
    A. have a strong, clearly focused leader.
    B. have individual accountability.
    C. share leadership and create collective work products.
    D. run efficient meetings.
    E. measure effectiveness indirectly.

 

  1. A permanent, formal group that performs a specific task is a
    A. task force.
    B. product-development team.
    C. project team.
    D. committee.
    E. self-directed work team.

 

  1. A temporary group of employees responsible for bringing about a particular change is a
    A. task force.
    B. product-development team.
    C. project team.
    D. committee.
    E. self-directed work team.

 

  1. Project teams
    A. are permanent, formal groups.
    B. are composed of individuals from one functional area.
    C. never last for more than six months.
    D. run their operation and have control of a specific work project.
    E. solve specific quality problems.

 

 

 

  1. A special type of project team formed to devise, design, and implement a new product is a
    A. product-development team.
    B. committee.
    C. task force.
    D. coalition.
    E. quality-assurance team.

 

 

Essay Questions

  1. What is a self-directed work team?

 

 

 

 

 

True / False Questions

  1. Horizontal communication involves the traditional flow of information from upper organizational levels downward.
    True    False

 

  1. Downward communication typically involves directions, the assignment of tasks and responsibilities, performance feedback, and certain details about the organization’s strategies and goals.
    True    False

 

  1. The most significant informal communication occurs while playing golf.
    True    False

 

 

 

  1. Communication flows within an organization are always formal.
    True    False

 

  1. When individuals from different units and organizational levels communicate, it is diagonal communication.
    True    False

 

 

Multiple Choice Questions

  1. Diagonal communication
    A. is the traditional flow of communication from higher to lower levels of the organization.
    B. occurs when individuals from different units and departments within an organization communicate.
    C. flows from lower organizational levels to higher ones.
    D. communication between peers and colleagues.
    E. not a term used in your textbook.

 

  1. The increased use of electronic communication in the workplace has caused many organizations to implement all but which of the following?
    A. Formal policies on appropriate Internet use
    B. Software programs to monitor employee Internet use
    C. Most companies simply let employees do what they want on the Internet
    D. Requiring employees to use corporate computers while at work
    E. Consulting online resources on how to handle employee Internet usage

 

  1. Which of the following is an informal communication channel?
    A. Leaflets
    B. Telecommunications
    C. Job descriptions
    D. Grievances
    E. The grapevine

 

 

 

  1. Which of the following is not typically part of downward communication?
    A. Performance feedback
    B. Assignment of tasks
    C. Details on organizational strategy
    D. Gossip
    E. Directions

 

  1. What is upward communication?
    A. Is the traditional flow of communication from higher to lower levels of the organization
    B. Occurs when individuals from different units and departments within an organization communicate
    C. Flows from lower organizational levels to higher ones
    D. Communication between peers and colleagues
    E. Not a term used in your textbook

 

  1. Downward communication conveys
    A. information about procedures and methods.
    B. explanations of decisions and orders.
    C. complaints.
    D. status reports.
    E. policy questions.

 

  1. Upward communication conveys
    A. orders.
    B. explanation of decisions.
    C. requests for information.
    D. progress reports and complaints.
    E. information about procedures and methods.

 

 

 

  1. When managers recognize that a grapevine exists, they should
    A. eliminate it.
    B. use it to their advantage by feeding it facts.
    C. find out if its goals are contrary to the organization’s goals.
    D. send incorrect information through it.
    E. none of the above.

 

 

Essay Questions

  1. How can managers use the “grapevine” to their advantage?

 

 

 

 

 

Multiple Choice Questions
Solve the Dilemma Quest Star in Transition

 

  1. What did Quest Star do, structurally, to help it become more competitive with Japanese firms?
    A. It increased the number of management layers
    B. It flattened its layers of management
    C. It reduced the emphasis on teams in the organization
    D. It decided that its employees could not be trusted to make decisions
    E. It did nothing

 

 

 

  1. Why are upper level managers facing frustration and increased stress as QS transitions to a new organizational structure?
    A. They do not like their jobs
    B. They are faced with training employees to supervise themselves
    C. They miss the old system
    D. Management is not stressed—they like the new system
    E. Management does not trust employees to make decisions for themselves

 

 

Essay Questions

  1. What techniques or skills should an employee have to assume a leadership role within a work group?

 

 

 

 

  1. If each work group has a team representative, what problems will be faced in supervising these representatives?

 

 

 

 

  1. Evaluate the pros and cons of the system developed by QS.

 

 

 

 

 

 

Chapter 07 Organization, Teamwork, and Communication Answer Key
True / False Questions

  1. (p. 209)Organizational culture cannot be expressed informally through its mission statement or code of ethics.
    FALSE

Examples of informal expressions of culture include dress codes (or the lack thereof), work habits, extracurricular activities, and stories.

 

AACSB: Communication
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture

  1. (p. 211)Organizational structures are always explicitly defined.
    FALSE

An organizational structure can be explicitly defined or implied.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

 

 

  1. (p. 211)An organization’s structure develops as managers assign tasks to work groups and specific individuals and coordinate the diverse activities required to attain organizational objectives.
    TRUE

An organization’s structure is created when managers assign work activities to work groups and individuals, along with coordinating many different activities that are needed to reach the organizational objectives.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

  1. (p. 211)Organizational growth requires organizing different resources.
    TRUE

Growth requires organizing—the structuring of human, physical, and financial resources to achieve objectives in an effective and efficient manner.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

  1. (p. 212)The more complex organizations become, the more they need to develop formal structures to function efficiently.
    TRUE

With more people and greater specialization, the organization needs to develop a formal structure to function efficiently.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

 

 

 

Multiple Choice Questions

  1. (p. 208)Which of the following is not part of organizational culture?
    A. Values
    B. Beliefs
    C. Role models
    D. Religion
    E. Traditions

Organizational culture is a firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture

  1. (p. 210)Which is not a means of formally expressing an organization’s culture?
    A. Ceremonies
    B. Code of ethics
    C. Mission statement
    D. Manuals
    E. Employee dress codes

A firm’s culture may be expressed formally through its mission statement, codes of ethics, memos, manuals, and ceremonies, but it is more commonly expressed informally.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture

 

 

  1. (p. 209)Dress codes, work habits, extracurricular activities, and stories are informal expressions of an organization’s
    A. grapevine.
    B. lack of organization.
    C. informality.
    D. culture.
    E. formality.

Examples of informal expressions of culture include dress codes (or the lack thereof), work habits, extracurricular activities, and stories.

 

AACSB: Diversity
Bloom’s: Comprehension
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture

  1. (p. 211)Organizational structure is defined as
    A. the arrangement or relationship of positions within an organization.
    B. a group of people working together to achieve an objective.
    C. the division of labor into small specific tasks.
    D. the grouping of jobs into working units.
    E. the grouping of working units into departments or divisions.

Structure is the arrangement or relationship of positions within an organization.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

 

 

  1. (p. 211)When managers assign work activities to groups and individuals and coordinate the diverse activities required to attain organizational objectives, they contribute to the development of organizational
    A. structure.
    B. informality.
    C. spontaneity.
    D. growth.
    E. accountability.

An organization’s structure develops when managers assign work tasks and activities to specific individuals or work groups and coordinate the diverse activities required to reach the firm’s objectives.

 

AACSB: Communication
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

  1. (p. 211)A department store’s organizational structure defines the relationships between
    A. salespersons and merchandise buyers.
    B. credit managers and maintenance people.
    C. department managers and customers.
    D. maintenance people and salespersons.
    E. all the individuals working together to achieve its objectives.

All the people occupying positions in the department store must work together to achieve the store’s objectives. The ways that they work together are defined by the store’s organizational structure.

 

AACSB: Communication
Bloom’s: Application
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

 

 

  1. (p. 211)Which of the following requires an increasing degree of organizing within an organization?
    A. Profits
    B. Sales
    C. Growth
    D. Decline
    E. Aging

Growth requires organizing.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

  1. (p. 212)The more people an organization has and the greater its specialization, the greater is its need for
    A. profits.
    B. sales.
    C. growth.
    D. structure.
    E. all of the above.

With more people and greater specialization, the organization needs to develop a formal structure to function efficiently.

 

AACSB: Reflective Thinking
Bloom’s: Comprehension
Difficulty: Hard
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

 

 

  1. (p. 208)An organization’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior represent its
    A. formal organization.
    B. information organization.
    C. organizational culture.
    D. grapevine.
    E. organizational manual.

A firm’s organizational culture is its shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

 

AACSB: Diversity
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Organizational Culture

 

Essay Questions

  1. (p. 209-210)What is organizational culture and how is it expressed?

Organizational culture is a firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior. It can be expressed formally through an organization’s mission statement, codes of ethics, memos, manuals, and ceremonies, but it is more commonly expressed informally. Examples of informal expressions of culture include dress codes (or the lack thereof), work habits, extracurricular activities, and stories. Employees often learn the accepted standards through discussions with co-workers.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

 

 

  1. (p. 211)What is organizational structure? How does it develop?

Organizational structure refers to the arrangement or relationship of positions within an organization. This structure develops when managers assign work tasks and activities to specific individuals or work groups and coordinate the diverse activities required to reach the firm’s objectives.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-01 Define organizational structure; and relate how organizational structures develop.
Topic: Developing Organizational Structure

 

True / False Questions

  1. (p. 212-213)The rationalization for specialization is that people can perform several tasks more efficiently than just one.
    FALSE

The rationale for specialization is efficiency; people can perform more efficiently if they master just one task rather than all the tasks.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

  1. (p. 213)Departmentalization is the division of labor into small, specialized tasks and the assignment of single tasks to employees.
    FALSE

Departmentalization is the grouping of jobs into working units usually called departments, units, groups, or divisions.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

 

 

  1. (p. 214)An advantage of functional departmentalization is that managers need only the skills that apply to their department’s function.
    TRUE

Each of these functions is managed by an expert in the work done by the department—an engineer supervises the production department; a financial executive supervises the finance department, etc.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

  1. (p. 216)Disadvantages of product departmentalization is that it duplicates functions and does not focus on the organization’s overall objectives.
    TRUE

Organizing by products duplicates functions and resources and emphasizes the product rather than achievement of the organization’s overall objectives.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

  1. (p. 216)Product departmentalization allows the coordination of all activities related to a product or product group and simplifies decision-making.
    TRUE

Product departmentalization organizes jobs around the products of the firm, simplifies decision making, and helps coordinate all activities related to a product or product group.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

 

 

 

Multiple Choice Questions

  1. (p. 212)The rationale for job specialization is that
    A. it is more efficient.
    B. workers become bored and leave.
    C. workers shift from one job to another.
    D. it adversely affects costs.
    E. it adversely affects quality.

The rationale for specialization is efficiency.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Easy
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

  1. (p. 212-213)The benefits of division of labor were described in The Wealth of Nations by
    A. Henry Ford.
    B. John Adams.
    C. Adam Smith.
    D. Cyrus McCormick.
    E. Sam Walton.

In The Wealth of Nations, 18th-century economist Adam Smith discussed specialization, using the manufacture of straight pins as an example.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

 

 

  1. (p. 212-213)Adam Smith illustrated improvements in efficiency through the application of
    A. departmentalization.
    B. specialization.
    C. generalization.
    D. registration.
    E. delegation.

Adam Smith used the concept of specialization to illustrate improvements in efficiency.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

  1. (p. 212-213)Many experts believe people can perform most efficiently if they master just one task rather than all tasks. A famous book that supports this point was published in 1776 and is titled
    A. The Wealth of Nations.
    B. Magna Carta.
    C. Declaration of Independence.
    D. A Country’s Prosperity.
    E. To Be or Not to Be.

Adam Smith wrote The Wealth of Nations to demonstrate specialization, the idea that people can perform most efficiently if they master just one task rather than all tasks.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

 

 

  1. (p. 214)Small businesses commonly employ
    A. line departmentalization.
    B. customer departmentalization.
    C. functional departmentalization.
    D. product departmentalization.
    E. geographical departmentalization.

Functional departmentalization is common in small organizations.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

  1. (p. 213-216)All of the following are approaches to departmentalization except
    A. function.
    B. product.
    C. geographic region.
    D. customer.
    E. line.

Departmentalization is the grouping of jobs into working units usually called departments, units, groups, or divisions. Departments are commonly organized by function, product, geographic region, or customer.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

 

 

  1. (p. 215-216)A company that has departments for marketing, finance, personnel, and production is organized by
    A. product.
    B. function.
    C. territory.
    D. customer.
    E. geographic region.

Functional departmentalization groups jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Medium
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks

  1. (p. 214-215)If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision-making is slow, then these would be weaknesses indicative of _______ departmentalization.
    A. territorial
    B. functional
    C. product
    D. customer
    E. process

A weakness of functional departmentalization is that because it tends to emphasize departmental units rather than the organization as a whole, decision making that involves more than one department may be slow, and it requires greater coordination.

 

AACSB: Reflective Thinking
Bloom’s: Knowledge
Difficulty: Hard
Learning Objective: 07-02 Describe how specialization and departmentalization help an organization achieve its goals.
Topic: Assigning Tasks