Test Bank for Fundamentals of Management , 10th Edition

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1Fundamentals of Management, 10e(Robbins)Chapter 1 Managers and Management1) Which of the following is a common myth about the study of management?A) Management is just common sense.B) Managers need to be well disciplined in all of the business areas.C) Managers are found in all types of organizations, large and small.D) Many of today's managers are minorities.Answer: AExplanation: Students might be surprised to know that theacademicstudy of management isfilled with insights, based on extensive research, which often run counter to what seems to becommon sense. That's why we decided to tackle head-on this common-sense perception byopening each chapter with a particular "management myth" and then "debunking" this myth byexplaining how itisjust a common-sense myth.Diff: 2LO: 1.1: Tell who managers are and where they work.2) An organization is ________.A) the physical location where people workB) any collection of people who perform similar tasksC) a deliberate arrangement of people to accomplish some specific purposeD) a group of individuals focused on profit-making for their shareholdersAnswer: CExplanation: By definition, an organization is a deliberate arrangement of people who have acommon purpose or goal. An organization may or may not exist in a discrete physical location.For example, many of today's political advocacy organizations exist largely as online entitieswithout a primary physical location. Though some people in an organization may performsimilar tasks, many do not. For example, doctors and administrators may both work for the samehospital organization but perform very different tasks. Finally, focus on profit does not determinean organization. Many organizations, such as a bird-watching club, do not include profit as agoal.Diff: 2LO: 1.1: Tell who managers are and where they work.

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23) All organizations have ________ that define(s) the organization's purpose and reason forexisting.A) limitsB) rulesC) structureD) goalsAnswer: DExplanation: An organization's goals define its purpose and reason for existing. For example,the goals of a bank might be to make money, while the goals of a church choir might to be tocreate beautiful music. Rules can help an organization achieve its goals, but rules do notexplicitly define those goals. Organizational structure defines and limits how people within anorganization interact, but structure on its own is not something that serves to define anorganization's purpose.Diff: 2LO: 1.1: Tell who managers are and where they work.4) One of the common characteristics of all organizations is ________ that define(s) rules,regulations, and values of the organization.A) a set of written bylawsB) an explicit goalC) a systematic structureD) a stated purposeAnswer: CExplanation: An organization's structure identifies organizational values that include behavioralstandards, customs, ethical mores, and conventions that delineate relationships betweenorganization members. The structure of an organization need not be formally written as bylaws.The goals and purpose of an organization can influence its values, but neither of these items canbe said todefinean organization's values.Diff: 2LO: 1.1: Tell who managers are and where they work.5) A fraternity is an example of an organization because it is comprised of people who________.A) share the same values, traditions, and customsB) share the same goals and valuesC) share goals and function within a common structureD) function under the same set of rules and regulationsAnswer: CExplanation: Members of an organization must not only share the same goals, they must allwork within a common structure to attain those goals. To grasp this distinction, compare twobaseball players on different teams: both may share the same goal of winning the World Series,but they belong to different organizations. Similarly, simply sharing values or rules is notsufficient to identify or differentiate an organization. To make up an organization, people need tobelong to a shared structure or institution and have common goals.Diff: 2AACSB: Analytical thinkingLO: 1.1: Tell who managers are and where they work.

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36) Which of the following is a key difference between managerial and nonmanagerialemployees?A) Managerial employees receive higher pay compensation.B) Nonmanagerial employees have less formal education.C) Nonmanagerial employees do not oversee the work of others.D) Managerial employees work longer hours.Answer: CExplanation: The distinction between managerial and nonmanagerial employees resides solelyin overseeing work. Managers have the responsibility of supervising and directing work ofothers. Nonmanagerial employees do not have this responsibility. Managers may or may notreceive better compensation, have more education, or work longer hours than nonmanagers–sonone of these criteria can serve to distinguish between the two.Diff: 1LO: 1.1: Tell who managers are and where they work.7) The primary job of a manager is to ________.A) make decisions that help an organization growB) tackle tasks that are too difficult for nonmanagerial employeesC) coordinate between organization leaders and ordinary employeesD) direct and oversee the work of othersAnswer: DExplanation: Though managers may make important decisions, tackle difficult tasks, orcoordinate between leaders and lower-level employees, a manager's primary job is to supervisethe work of others. The supervisory role is what distinguishes managers from nonmanagers.Diff: 1LO: 1.1: Tell who managers are and where they work.8) The work of a manager ________.A) is strictly limited to overseeing and monitoring the work of othersB) may involve performing tasks that are not related to overseeing othersC) involves only high-level tasks that require a sophisticated skill setD) does not involve interaction with nonmanagerial employeesAnswer: BExplanation: The primary job of a manager is to oversee work of others. However, this does notpreclude a manager from performing tasks on his or her own that do not involve supervision ofothers. An example of a manager not being limited to supervising would be an art director at abook company who supervises work of others but also creates artworks on her own. Tasksperformed by managers are not necessarily high level and may involve interaction withnonmanagerial workers, so neither of these choices is correct.Diff: 2LO: 1.1: Tell who managers are and where they work.

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49)Supervisoris another name for which of the following?A) team leaderB) middle managerC) first-line managerD) top managerAnswer: CExplanation: An organization's management hierarchy typically follows this progression: first-line manager, middle manager or team leader, and top manager. This sequence usually reflectsthe degree to which managers are involved in planning and making higher-order decisions. Thelowest position in the sequence, the first-line manager, is generally more involved insupervisingothers than making higher-order decisions, so this individual is often termed asupervisor.Managers higher in the chain of command do lesssupervisingthan first-line managers so theyare less likely to be called asupervisor.Diff: 1LO: 1.1: Tell who managers are and where they work.10) Which of the following types of managers is responsible for making organization-widedecisions and establishing the plans and goals that affect the entire organization?A) team leaderB) top managerC) department headD) project leaderAnswer: BExplanation: In a typical management hierarchy, the individuals responsible for making higher-order decisions that involve planning, goals, policy, and philosophy are the top managers. Teamleaders are generally first-line managers at the bottom of the hierarchy who are least involvedwith higher-order goals. Department heads and project leaders are titles for middle managerswho are more involved with the implementation rather than the making of goals and policy.Diff: 1LO: 1.1: Tell who managers are and where they work.11) Which is an important job responsibility for a middle manager?A) defining the organization's long-term goalsB) translating goals defined by top managers into actionC) helping top managers define goalsD) performing tasks that are not related to long-term goalsAnswer: BExplanation: In an organization, top management typically defines long-term goals, then enlistsmiddle managers to find ways to achieve those goals. Thus, middle managers are not involved inidentifying long-term goals in any way. The job of a middle manager is very involved with long-term goals, it just doesn't involvedefiningthose goals.Diff: 2LO: 1.1: Tell who managers are and where they work.

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512) Which of the following identifies a manager who does NOT typically supervise othermanagers?A) unit chiefB) shift managerC) vice presidentD) division managerAnswer: BExplanation: All but first-line managers are responsible at least in part for overseeing the workof other managers. The shift manager is the only first-line manager in this group. A unit chiefand division manager are both titles for middle managers who oversee other managers. A vicepresident is a top management position that is usually heavily involved with the management ofother managers.Diff: 2LO: 1.1: Tell who managers are and where they work.13) Of the following, which is the lowest level of management?A) a nonmanagerial employeeB) an individual involved in defining the organization's philosophyC) a vice presidentD) a middle managerAnswer: DExplanation: The middle manager represents the lowest managerial position among the choicesgiven here, but it is not the lowest position in the managerial hierarchy. Individuals who rankabove a middle manager include a vice president and an individual who defines organizationalphilosophy, both of whom would qualify as top managers. Finally, a nonmanagerial employee islowest in the hierarchy among these choices, but this individual is not a part of management.Diff: 2LO: 1.1: Tell who managers are and where they work.14) All levels of management between the supervisory level and the top level of the organizationare termed ________.A) middle managersB) first-line managersC) supervisorsD) team leadersAnswer: AExplanation: Middle management is defined as those individuals who are between topmanagement and the team leaders, supervisors, and other first-line managers who make up thesupervisory level of management. Any manager who is (1) not a part of top management and (2)not primarily a supervisor of nonmanagerial employees is classified as a middle manager.Diff: 2LO: 1.1: Tell who managers are and where they work.

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615) Which of the following levels of management is associated with positions such as executivevice president, chief operating officer, chief executive officer, and chairperson of the board?A) team leadersB) middle managersC) first-line managersD) top managersAnswer: DExplanation: All of the titles listed above–executive vice president, chief operating officer, chiefexecutive officer, and chairperson of the board–are executive positions that are typically part ofan organization's top management. Team leaders are types of first-line managers and are not partof top management. Any positions that includeexecutiveas part of the title would eliminatemiddle managers as a choice.Diff: 1LO: 1.1: Tell who managers are and where they work.The Perfect Manager (Scenario)Brenda Kraft has proven herself to be an able manager. Her section has a high projectcompletion rate with the highest-quality product and the lowest defects in her division. Inaddition, she accomplishes this with fewer full-time people than other managers. Co-workers saythat the secret of her success is in her ability to determine what needs to be done and by whom,and her understanding of the basic "management processes."16) Brenda's high project completion rate indicates that she is ________.A) an efficient managerB) an effective managerC) a good spokespersonD) a good resource allocatorAnswer: BExplanation: Completing a high number of projects is accomplishing a goal. Goal-accomplishment is a measure of the effectiveness of a manager. "An efficient manager" isincorrect because completing projects says nothing about how efficient Brenda is. In a similarway, "a good spokesperson" and "a good resource allocator" are not correct as there is noindication in the paragraph of Brenda's skill as an information provider (spokesperson) ordecision-maker (resource allocator).Diff: 2AACSB: Application of knowledgeLO: 1.1: Tell who managers are and where they work.

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717) If Brenda accomplished her projects on time with high-quality results, but she took moretime than other managers in the process, you could say that as a manager she was ________.A) efficient, but not effectiveB) a leader, but not a top managerC) project oriented, but not effectiveD) effective, but not efficientAnswer: DExplanation: Accomplishing goals makes Brenda effective. Taking too much time makesBrenda inefficient. These two qualities–high quality results coupled with longer than normaldelivery times–say nothing about Brenda's ability to be a leader.Diff: 2AACSB: Application of knowledgeLO: 1.1: Tell who managers are and where they work.18) Part of what defines an organization is its purpose.Answer: TRUEExplanation: The goals or purpose of an organization define the organization's reason forexisting. Without a common purpose, a group of individuals does not qualify as an organization.Diff: 2LO: 1.1: Tell who managers are and where they work.19) All organizations have a structure that in some ways serves to define and limit the behaviorof members of the organization.Answer: TRUEExplanation: The structure of an organization, whether formal or informal, defines howorganization members interact. For example, a school's informal guidelines might determine howteachers fraternize. A school's formal guidelines might set up rules for interaction betweenstudents and teachers.Diff: 2LO: 1.1: Tell who managers are and where they work.20) In order to be considered a manager, an individual must direct or oversee the work of others.Answer: TRUEExplanation: Directing and overseeing work distinguishes managers from nonmanagerialemployees. Managers direct and oversee work of others. Nonmanagerial employees have nosupervisory responsibilities.Diff: 2LO: 1.1: Tell who managers are and where they work.21) A manager does not work directly on tasks for the organization.Answer: FALSEExplanation: Managers may work on tasks in addition to their supervisory duties. For example,a manager of a shop that designs clothing may also create designs on his or her own.Diff: 2LO: 1.1: Tell who managers are and where they work.

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822) Supervisors and team leaders may both be considered first-line managers.Answer: TRUEExplanation: First-line managers are managers who oversee workers directly and are involved inday-to-day operations. For example, a team manager in an auto assembly plant might overseeand help solve everyday problems that arise on the assembly line. Higher-level managerstypically would not spend time helping to solve assembly line problems directly.Diff: 1LO: 1.1: Tell who managers are and where they work.23) In a short essay, compare the tasks, priorities, and responsibilities of first-line, middle, andtop managers.Answer: First-line managers are the lowest level of management and manage the work ofnonmanagerial individuals who are directly involved with the production or creation of theorganization's products. First-line managers are often called supervisors but may also be calledline managers, office managers, or even foremen. First-line managers spend more time leadingthan other managers and less time planning.Middle managers include all levels of management between the first-line level and the top levelof the organization. These managers manage the work of first-line managers and may have titlessuch as department head, project leader, plant manager, or division manager. Middle managersspend considerably less time leading than first-line managers and considerably more timeorganizing.Top managers are responsible for making organization-wide decisions and establishing the plansand goals that affect the entire organization. These individuals typically have titles such asexecutive vice president, president, managing director, chief operating officer, chief executiveofficer, or chairman of the board. Top managers spend more time planning and organizing thanother managers and less time leading.Diff: 2AACSB: Analytical thinkingLO: 1.1: Tell who managers are and where they work.24) Another term for efficiency is ________.A) doing the right thingsB) doing things rightC) making sure things get doneD) doing things at the right timeAnswer: BExplanation: Efficiency is often termeddoing things rightbecause the phrase denotes themanner in which tasks are carried out. The "right" way or efficient way correlates with aminimum of wasted time, money, energy, and resources. "Doing the right things," on the otherhand, refers to effectiveness, not efficiency. Making sure that things get done and doing things atthe right time are both often part of an efficient undertaking, but neither effort could be said todefine efficiency.Diff: 2LO: 1.2: Define management.

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925) Which of the following might be an example of increased efficiency in manufacturing?A) cutting the amount of labor required to make the productB) cutting the price of the productC) increasing sales of the productD) increasing advertising for the productAnswer: AExplanation: Efficiency must involve reducing the input-to-output ratio in some way. Cuttingthe amount of labor reduces the amount of input and so marks an increase in efficiency. Cuttingthe price does not affect the amount of resources and labor that go into the product, nor does itimprove the product itself, so it is not an efficiency measure. Increasing sales and advertisingsimilarly do not change the input-output ratio so they do not increase efficiency.Diff: 3AACSB: Analytical thinkingLO: 1.2: Define management.26) Another term for effectiveness is ________.A) doing the right thingsB) doing things rightC) doing things intelligentlyD) doing things when necessaryAnswer: AExplanation: Effectiveness is said to be "doing the right things" because effectiveness isconcerned with obtaining results and reaching goals. Doing things "in the right way" results inefficiency rather than effectiveness. Note that an enterprise can be effective–i.e., it can attaingoals–without being efficient in such areas as keeping costs and resources down. Doing thingsintelligently is clearly part of an effective effort without being critical to it. The same can be saidof doing things when necessary–it is not a critical part of an effective effort.Diff: 2LO: 1.2: Define management.27) Effectiveness is synonymous with ________.A) cost minimizationB) smart managementC) goal attainmentD) efficiencyAnswer: CExplanation: Effectiveness is concerned with ends as opposed to means. Being effective means"getting the job done" (attaining goals), while being efficient is concerned with "how the job gotdone" and such things as cost minimization. While effective operations usually feature smartmanagement, the two are not necessarily synonymous.Diff: 2LO: 1.2: Define management.

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1028) Efficiency refers to ________.A) the relationship between inputs and outputsB) the additive relationship between inputs and outputsC) the inverse relationship between inputs and outputsD) decreasing inputs onlyAnswer: AExplanation: Mathematically, efficiency is measured as a ratio of inputs to outputs. Forexample, in physics the ratio of input energy to output energy defines a machine's efficiency. Thesame principles apply to management. Efficiency is measured as the ratio of input energy, orother resources such as costs or labor, to the amount of product or output created. The input-output ratio is neither additive nor inverse but rather directly proportional in some way. Finally,though decreasing inputs can increase efficiency, it is not the only way to increase efficiency.Diff: 2LO: 1.2: Define management.29) Good management strives for ________.A) low efficiency and high effectivenessB) high efficiency and low effectivenessC) high efficiency and high effectivenessD) moderate efficiency and moderate effectivenessAnswer: CExplanation: High efficiency and high effectiveness are both things that managers seek toobtain. High efficiency is associated with minimal waste and a maximum of production. Higheffectiveness is associated with success in achieving goals. Low or moderate measures ofefficiency or effectiveness are clearly inferior to a high amount of each quality.Diff: 2LO: 1.2: Define management.30) A candy manufacturer would increase both efficiency and effectiveness by making________.A) better candy at the same costB) better candy at a lower costC) the same candy at a lower costD) the same candy at the same costAnswer: BExplanation: Increasing efficiency involves making the product at lower cost. Increasingeffectiveness means making a better product. So increasing efficiency and effectiveness wouldentail making a better product at a lower cost. Any other combination of the two variables–notimproving the cost or the quality of the candy–would not be an improvement in both efficiencyand effectiveness.Diff: 3AACSB: Analytical thinkingLO: 1.2: Define management.

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1131) A candy manufacturer that made candy at a lower cost without improving the quality of thecandy could be said to ________.A) increase effectiveness without increasing efficiencyB) increase efficiency without increasing effectivenessC) increase both effectiveness and efficiencyD) decrease both effectiveness and efficiencyAnswer: BExplanation: Lowering cost is a measure of increased efficiency. Making better candy is ameasure of increased effectiveness. So lowering cost for unimproved candy shows an increase inefficiency but not effectiveness.Diff: 3AACSB: Analytical thinkingLO: 1.2: Define management.32) The "father" of scientific management was ________.A) Henri FayolB) Robert L. KatzC) Henry MintzbergD) Frederick Winslow TaylorAnswer: DExplanation: Fayol worked about the same time period as Taylor and was also fairly "scientific"in his approach. However, Taylor was the person who stressed being "scientific" and coined thetermscientific managementin his 1911 book. Mintzberg and Katz also contributed to ideas aboutscientific management, but both of these thinkers came later.Diff: 2LO: 1.2: Define management.33) Taylor began to develop his theory of ________ after a result of viewing workers in steelcompanies.A) the functions of managementB) ethics-based managementC) management skillsD) scientific managementAnswer: DExplanation: Taylor's scientific management theory posited that efficiency in organizationscould be improved by studying organizations objectively and systematically. The functions ofmanagement were developed by Fayol. Management skills were identified by Katz. Ethics-basedmanagement is not a known theory of management.Diff: 2LO: 1.2: Define management.

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1234) A major contribution that Taylor made to the study of management was ________.A) to measure efficiency on a 4-star scaleB) to identify the one best way to get a job doneC) to identify the three best ways to get a job doneD) to measure inefficiency on a 4-star scaleAnswer: BExplanation: Taylor measured efficiency and inefficiency, but he did not rank them on a starscale. What Taylor did do was collect data to identify the "one best way" to do a job; that is, themost efficient and effective way to complete a task. Taylor focused on only a single best way.Diff: 2LO: 1.2: Define management.35) Which of the following did Taylor NOT find "appalling" in his study of workers in steelcompanies?A) Workers "took it easy" on the job.B) Workers employed different techniques for the same job.C) Workers would only attempt to perform a job if they were shown to have aptitude for it.D) Worker output was only about one-third of what was possible.Answer: CExplanation: Taylor indeed discovered that workers did not work hard on the job, did not havestandardized methods and techniques for completing a task, and only accomplished a fraction oftheir theoretical work potential. All of the above dismayed Taylor greatly, convincing him thatthe situation could be greatly improved with the application of standardized work rules and taskmethodology. The one thing in the list that Taylor did not discover was workers who refused towork at jobs they did not have aptitude for. In fact, he found that the reverse situation existed–workers performed jobs that they had no aptitude for–this constituted yet another practice thatwas appalling to Taylor.Diff: 3LO: 1.2: Define management.

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13The Perfect Manager (Scenario)Brenda Kraft has proven herself to be an able manager. Her section has a high projectcompletion rate with the highest-quality product and the lowest defects in her division. Inaddition, she accomplishes this with fewer full-time people than other managers. Co-workers saythat the secret of her success is in her ability to determine what needs to be done and by whom,and her understanding of the basic "management processes."36) Brenda's ability to determine what needs to be done and by whom is evidence that she excelsat which management function?A) planningB) controllingC) leadingD) organizingAnswer: DExplanation: Good organizers excel at determining the right job for the right person. Planningmay include a minor element of delegating, as a planner must map out future tasks. Leadingincludes an element of directing, which also involves delegating. However, neither planning norleading is as directly involved in delegating as organizing is. Finally, controlling, largely amonitoring activity, has little to do with delegating.Diff: 2AACSB: Application of knowledgeLO: 1.2: Define management.Joe, the Manager (Scenario)As a production supervisor, Joe determines the number of output units his department willproduce each week. On Monday, he informs his team that the schedule is going to be difficultthis week due to the increased number of output units. He goes on to tell them that he isconfident that they can fulfill the schedule because they are tough, talented, and "when the goinggets tough, they are the ones who get going." Each day during the week, Joe checks the amountof output that the employees have completed and the number of units that have been rejected.37) When Joe decides the number of output units his team will be able to produce this week,which management process is he performing?A) controllingB) leadingC) planningD) organizingAnswer: CExplanation: Planning involves foreseeing the future and making accommodations to deal withwhat is likely to occur. Joe is performing both of these functions, so he is planning. None of theother choices involve specifically preparing for future occurrences, so planning is the onlycategory that fits here.Diff: 2AACSB: Application of knowledgeLO: 1.2: Define management.

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1438) Effectiveness refers to the relationship between inputs and outputs.Answer: FALSEExplanation: Efficiency is concerned with maximizing the output-to-input ratio. Effectiveness,on the other hand, refers not to how well resources are used but to which resources to use, andwhether or not those resources help the organization attain its goals.Diff: 2LO: 1.2: Define management.39) A goal of efficiency is to minimize output costs while maximizing input costs.Answer: FALSEExplanation: The goal of efficiency is the opposite–to maximize outputs while minimizinginputs. An efficient operation uses the fewest resources to generate the greatest amount ofproduct.Diff: 2LO: 1.2: Define management.40) Effectiveness refers to the attainment of the organization's goals.Answer: TRUEExplanation: Effectiveness is concerned with "doing the right things"–choosing the tasks thatwill help the organization achieve its goals. Efficiency, on the other hand, refers to "doing thingsright," that is, once tasks are chosen they are done with a minimum of waste.Diff: 2LO: 1.2: Define management.41) Managers who are effective at meeting organizational goals always act efficiently.Answer: FALSEExplanation: A manager may be effective but not efficient. For example, a manager may excelat achieving goals but waste a lot of money, energy, and resources in achieving them.Diff: 3LO: 1.2: Define management.42) The four contemporary management processes are planning, organizing, leading, andcommanding.Answer: FALSEExplanation: Leading is a term that replaced commanding and coordinating. So commanding isconsidered to be part of leading and not distinct from it.Diff: 1LO: 1.2: Define management.

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1543) In a short essay, discuss the difference between efficiency and effectiveness.Answer: Efficiency refers to getting the most output from the least amount of input. Efficiencyis often referred to as "doing things–that is, performing a task with a minimum of wasted time,energy, labor, and resources and a maximum of the product being created. A mathematicalmeasure of efficiency is given by the ratio of input to output. The smaller the input-to-outputratio, the greater the efficiency of the process.Effectiveness is often described as "doing the right things"–that is, those work activities that willhelp the organization reach its goals. Where efficiency is concerned with the means of gettingthings done, effectiveness is concerned with the ends, or attainment of organizational goals.Diff: 2AACSB: Analytical thinkingLO: 1.2: Define management.44) In a short essay, explain through examples how a process can be (a) efficient but noteffective and (b) effective but not efficient.Answer: (a) Efficient but not effective: A craftsman building a wooden table may be highlyefficient in the way he uses his time, energy, and wood in producing his product. However,despite this efficiency, the craftsman may still end up with a rickety table, thereby not fulfillinghis goal of building a strong, sturdy table and failing to be effective.(b) Effective but not efficient: A craftsman may be inefficient and waste a great deal of time,energy, and wood in building a table. However, the table itself can turn out to be strong, sturdy,and beautiful, thereby fulfilling the goal of the process and qualifying the craftsman as effective.Diff: 2AACSB: Analytical thinkingLO: 1.2: Define management.45) Today, the basic management functions are considered to be ________.A) planning, coordinating, leading, and monitoringB) planning, organizing, leading, and motivatingC) commanding, organizing, leading, and decision makingD) planning, organizing, leading, and controllingAnswer: DExplanation: The four functions are planning, organizing, leading, and controlling. The otherchoices include part of these functions (coordinating is a part of planning; monitoring is a part ofcontrolling; motivating is a part of leading; and decision making is a key part of all managerialfunctions).Diff: 2LO: 1.3: Describe what managers do.

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1646) How many management functions were originally proposed by Henri Fayol?A) three: plan, organize, leadB) four: plan, organize, lead, controlC) five: plan, organize, command, coordinate, controlD) ten: 3 interpersonal, 3 informational, 4 decisionalAnswer: CExplanation: Fayol originally proposed five management functions: plan, organize, command,coordinate, and control. Two of the five, command and coordinate, were later condensed into asingle function, "lead"–so leadership was clearly not one of Fayol's original functions. Later,Henry Mintzberg proposed a different scheme with ten roles.Diff: 1LO: 1.3: Describe what managers do.47) Which of the following is NOT considered to be a part of the planning function of amanager?A) defining goalsB) motivatingC) mapping out strategyD) making decisionsAnswer: BExplanation: Defining goals and mapping out strategy are both fundamental parts of theplanning function. Making decisions is not explicitly identified as being part of the planningfunction, but it is clearly part of all managerial functions and so must be ruled out as a correctanswer here. This leaves motivating which is a part of the leading function rather than theplanning function.Diff: 2LO: 1.3: Describe what managers do.48) The controlling management function is largely a matter of ________.A) resolving conflictsB) determining what needs to be doneC) monitoring to see that tasks are accomplishedD) enforcing rules for employeesAnswer: CExplanation: Resolving conflicts falls under the category of leading, while determining whatneeds to be done is an organizing task. A minor part of controlling may involve enforcing ofemployee rules, but monitoring represents a much better choice, as the main goal of controllingis to make sure that tasks are being accomplished as planned.Diff: 2LO: 1.3: Describe what managers do.

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1749) Organizing includes ________.A) defining organizational goalsB) resolving conflictsC) motivating organizational membersD) determining who does what tasksAnswer: DExplanation: The key part of the organizing function requires the manager to assign tasks todifferent organization members. For example, a bicycle racing team's manager will assign rolesfor each rider to cover during a race. Defining goals is a planning function, while resolvingconflicts and motivating are both part of the leadership function.Diff: 2LO: 1.3: Describe what managers do.50) Resolving a conflict would be considered to fall under which managerial function?A) controllingB) planningC) directingD) leadingAnswer: DExplanation: Conflict resolution is thought to fall under the leading function. Controlling isdefined largely as a monitoring function and does not include resolving conflicts. Resolvingconflicts is also not a subfunction of planning. Finally, directing is not one of the four majorfunctions and is actually part of leading itself.Diff: 2LO: 1.3: Describe what managers do.51) An important part of the controlling function is ________.A) evaluatingB) structuringC) coordinatingD) punishingAnswer: AExplanation: Once tasks are assigned and work is ongoing, a manager must assess theperformance of organization members to see if the work is being carried out successfully.Structuring and coordinating are subfunctions of the organizing function. In extreme cases,punishment might be considered a part of controlling, but evaluating is clearly a much morecommon part of the controlling function.Diff: 2LO: 1.3: Describe what managers do.

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1852) ________ developed a categorization scheme for defining what managers do, consisting of10 different but highly interrelated roles.A) Henri FayolB) Robert L. KatzC) Henry MintzbergD) Henry FordAnswer: CExplanation: Henry Mintzberg's scheme was developed after careful observations of managersin action and includes three interpersonal roles, three informational roles, and four decisionalroles for a manager. Fayol developed the five (later changed to four) functions for a manager.Katz focused on managerial skills, not activities, while Henry Ford was, of course, a famedindustrialist who did not contribute to management theory.Diff: 2LO: 1.3: Describe what managers do.53) Giving a speech at an organization banquet would fall into which Mintzberg category?A) informationalB) interpersonalC) decisionalD) entrepreneurialAnswer: BExplanation: Speechmaking sounds like it fits Mintzberg's "spokesperson" category, which is aninformational role. However, a banquet speech would be likely to be more inspirational thaninformational, so it would better fit the interpersonal role of leader and figurehead. Thedecisional category does not describe the largely social function of making a speech. Theentrepreneurial role is a subcategory of the decisional role, so it is incorrect here also.Diff: 2LO: 1.3: Describe what managers do.54) Mintzberg developed his ten managerial roles by ________.A) sending out questionnaires to thousands of managersB) observing hundreds of managers over several yearsC) closely monitoring the work activities of five chief executivesD) using common sense to analyze the situationAnswer: CExplanation: Mintzberg's conclusions were not the result of observing hundreds of managers orsending out thousands of questionnaires. Instead, Mintzberg developed his roles after closelyobserving five executives in action while they were on the job. Mintzberg undoubtedly usedcommon sense to draw some of his conclusions, but common sense was clearly not the primarymeans by which he created his categories.Diff: 2LO: 1.3: Describe what managers do.

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1955) According to Mintzberg, which of the following fit into the category of interpersonal roles?A) figurehead, leader, and liaisonB) negotiator, liaison, and figureheadC) monitor, leader, and resource allocatorD) disturbance handler, liaison, and negotiatorAnswer: AExplanation: The three roles that make up the interpersonal roles are figurehead, leader andliaison. The roles that make up informational roles are monitor, disseminator, and spokesperson.The roles that make up decisional roles are entrepreneur, disturbance handler, resource allocator,and negotiator.Diff: 2LO: 1.3: Describe what managers do.56) A pharmaceutical company manager attending a meeting of academic scientists would befunctioning in which role?A) informationalB) figureheadC) liaisonD) decisionalAnswer: CExplanation: A liaison functions as a link from one organization to another. In this case, themanager would be linking her for-profit organization to an organization that might provide itwith valuable expertise or information. The other choices here are all somewhat valid as themanager would need to procure information, represent her company, and make decisions.However, the liaison role is a much better fit for this situation.Diff: 2AACSB: Application of knowledgeLO: 1.3: Describe what managers do.57) A finance manager who reads theWall Street Journalon a regular basis would beperforming which role?A) leaderB) monitorC) disseminatorD) liaisonAnswer: BExplanation: One of the responsibilities of a finance manager would be to keep track or monitorimportant events taking place in the business world. Reading theWall Street Journalwould be agood way to do this. After reading, the manager might disseminate some of the information helearned, but this would be secondary to the information monitoring function. A leader or liaisonmay indeed read a newspaper but only in the function of being an information monitor.Diff: 2AACSB: Application of knowledgeLO: 1.3: Describe what managers do.

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2058) The emphasis that managers give to various activities is generally based on their ________.A) organizational levelB) tenure with the organizationC) experience in their fieldD) skill specialtyAnswer: AExplanation: Studies show that all managers carry out the four basic functions of planning,organizing, leading, and controlling. However, the proportion of time they spend on theseactivities usually correlates with organizational level. Top managers, for example, tend to domore planning while first-line managers do more leading and supervising. Organizational tenure,experience, and skill specialty may contribute only in minor ways to how managers spend theirtime.Diff: 2LO: 1.3: Describe what managers do.59) The current research on managerial skill points to four general management skills. Which ofthe following is NOT one of the four skills?A) PoliticalB) InterpersonalC) ConceptualD) ScientificAnswer: DExplanation: The current research by Katz and others point out four management skills whichinclude, conceptual skills, interpersonal skills, technical skills and political skills.Diff: 1LO: 1.3: Describe what managers do.60) The four managerial functions first described by Fayol are considered the "best" because________.A) they were devised a long time agoB) most sources still use themC) they date back to ancient Greece and RomeD) they are no longer popular todayAnswer: BExplanation: Fayol's functions are considered to be the "best" because of their usefulness andpopularity. Most texts and authorities on managerial matters use the four functions because theyare simple, elegant, and powerful in insight.Diff: 2LO: 1.3: Describe what managers do.

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2161) All of the following are examples of informational roles according to Mintzberg EXCEPT________.A) entrepreneurB) monitorC) disseminatorD) spokespersonAnswer: AExplanation: The role of an entrepreneur in an organization is typically to identify and procurenew business opportunities. In Mintzberg's scheme, an entrepreneur takes on a decisional role indeciding where to look for opportunities and which ones to invest in. The other three choiceshere–monitor, disseminator, and spokesperson–are informational in nature. A monitor keepstrack of information. Both a disseminator and spokesperson distribute information.Diff: 2LO: 1.3: Describe what managers do.62) Which of the following is NOT an example of a decisional role according to Mintzberg?A) spokespersonB) entrepreneurC) disturbance handlerD) resource allocatorAnswer: AExplanation: Mintzberg sees entrepreneur, disturbance handler, and resource allocator asdecisional roles. The entrepreneur must decide which opportunity to select. A disturbancehandler must stand in judgment of individuals in a conflict. A resource allocator must decidehow to divide resources. Mintzberg sees a spokesperson having a primary function ofcommunicating what has already been decided.Diff: 2LO: 1.3: Describe what managers do.63) One managerial function that is identical in both Fayol's and Mintzberg's systems is________.A) leaderB) resource allocatorC) monitorD) negotiatorAnswer: AExplanation: There is a great deal of overlap in the schemes of Fayol and Mintzberg, but onlyone category is identical in each system–that of leadership. The resource allocator role ofMintzberg corresponds to the organizing category of Fayol. Mintzberg's monitor category istaken by Fayol's controlling category. Finally, Mintzberg's negotiator role falls under Fayol'sleading category.Diff: 2AACSB: Reflective thinkingLO: 1.3: Describe what managers do.

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2264) The managerial role that changes the most between middle and top managers is ________.A) planningB) organizingC) controllingD) leadingAnswer: AExplanation: According to Exhibit 1-6, as managers move up in the organization, they do moreplanning and less direct overseeing of others.Diff: 2LO: 1.3: Describe what managers do.65) Non-profit organizations are different from for-profit organizations primarily ________.A) in the way make decisionsB) in the way they measure successC) in the way they motivate employeesD) in how they hire employeesAnswer: BExplanation: The big difference between for-profit and non-profit organizations is the way they"keep score" or measure success. For-profit organizations usually look at the "bottom line"–howmuch profit they make–as a way to measure success. Non-profits look at more varied metrics: aschool may look at how well students test; a soup kitchen may look at how many people theyhelp, and so on. The way organizations make decisions, motivate employees, and hire employeesis virtually the same for both for-profit and non-profit organizations.Diff: 2LO: 1.3: Describe what managers do.66) The role of ________ is more important for managers of small organizations than formanagers working in large corporations.A) disseminatorB) spokespersonC) entrepreneurD) resource allocatorAnswer: BExplanation: A manager of a small organization must wear more than one hat at a time. In asmall organization, a manager must frequently take on a role of spokesperson, the embodimentof the organization to the outside world. Less important for the small organization manager is therole of official disseminator of information, as that function is usually carried out in a morepersonal, informal manner in a small firm than in a large firm. Small firm managers must take onentrepreneurial duties but not to the extent that their spokesperson role takes. Finally, thoughresource allocator is a major part of a manager's job for a large firm, it plays almost no part in thepriorities of a manager of a small firm.Diff: 2LO: 1.3: Describe what managers do.

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2367) In a small organization, which of the following is NOT likely to be true?A) Planning is not likely to be an orchestrated ritual.B) Relationships are more likely to be informal.C) Workers are likely to be observed by computerized monitoring systems.D) The design of the organization is likely to be less structured and complex.Answer: CExplanation: A small firm is typically more flexible, less formal, less structured, and lesscomplex than a large firm. Planning in a small firm is likely to be a freewheeling affair ratherthan follow a rigid protocol. One thing you would not see in a small firm would be computerizedmonitoring systems. Instead, you would expect monitoring to be done on a more personal basis,with plenty of opportunity for employees to rectify any mistakes they make.Diff: 2AACSB: Reflective thinkingLO: 1.3: Describe what managers do.68) Which of the following is NOT a characteristic of a small business?A) has more formal managers than a large businessB) has about 200 employeesC) is not a "player" with impact within its industryD) has a relatively small market share of its productAnswer: AExplanation: A small business as defined has 500 or fewer employees, a small impact on itsindustry, and a fairly small market share of its product. However, the structure and formality thatcharacterize a manager's job in a large organization tend to give way to informality in smallfirms.Diff: 2LO: 1.3: Describe what managers do.69) Why might a manager for a non-profit organization seem as concerned with his or herorganization's financial well-being as a for-profit manager?A) Non-profit managers are evaluated on financial performance only.B) Non-profit managers try to give the illusion that they care about the "bottom line."C) Not-for-profit organizations need to make money to continue operating.D) Non-profit organizations have an obligation to turn a profit.Answer: CExplanation: Not-for-profit organizations still need money if they are to operate and thoughperformance is never evaluated solely on finances, budgetary health is often critically importantin helping the organization achieve its goals. Being concerned about the "bottom line" is neveran illusion to these organizations.Diff: 2AACSB: Reflective thinkingLO: 1.3: Describe what managers do.

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2470) Which of the following is NOT considered an interpersonal skill for a manager as suggestedby Katz?A) communicatingB) mentoringC) delegatingD) decisivenessAnswer: DExplanation: Working well with other people both individually and in groups bycommunicating, motivating, mentoring, and delegating. Decisiveness is classified as anotherimportant managerial competency.Diff: 2LO: 1.3: Describe what managers do.71) Compared to the manager of a large organization, a small business manager is more likely tobe a(n) ________.A) specialistB) figureheadC) generalistD) information monitorAnswer: CExplanation: The nature of a small business requires its managers to be generalists and take onmultiple roles that would be assumed by separate individuals in larger firms. For example, themanager of a bike shop might need to function as a long-range planner, salesperson,spokesperson, and task supervisor all at the same time. This requirement of versatility would ruleout being a specialist. Though a small firm manager may function exclusively as a figureheadand information monitor from time to time, a more accurate description of his or her job wouldbe as a generalist.Diff: 1AACSB: Reflective thinkingLO: 1.3: Describe what managers do.72) Unlike the manager of a small business, the most important concerns of a manager in a largeorganization are focused ________.A) externally, particularly on entrepreneurial tasksB) internally, particularly on the allocation of resourcesC) on setting goalsD) on planning ways to improve organizational structureAnswer: BExplanation: Resource allocation is typically the most important concern for a manager in alarge organization. For example, goals and structural issues in a large car company are likely tobe well worked out, causing the manager to focus on apportioning the organization's ampleresources wisely with respect to commitments of time, funds, manpower, and creative energy.Creation of new business opportunities are much less likely to be needed in a large firm than in asmall one as the large firm may have entire departments devoted to that task.Diff: 2LO: 1.3: Describe what managers do.

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2573) Which of the following statements regarding management and national culture is the mostcorrect?A) The basic principles of management are universal.B) Research shows that managerial practices across all countries are not consistent.C) There are major differences in the way that most English speaking countries viewmanagement.D) The route of the differences between how countries practice management is based on theireconomic principles solely.Answer: BExplanation: If managerial concepts were completely generic, they would also apply universallyin any country in the world, regardless of economic, social, political, or cultural differences.Studies that have compared managerial practices between countries have not generally supportedthe universality of management concepts.Diff: 2LO: 1.3: Describe what managers do.74) Which of the following would political skills be most likely to help a manager accomplish?A) increasing communicationB) mentoringC) defining goalsD) building a power baseAnswer: DExplanation: Political skills help managers in building a power base and establishing the rightconnections so they can get needed resources for their groups.Diff: 2LO: 1.3: Describe what managers do.75) Almost all managerial tasks involve ________.A) decision makingB) technical skillsC) long-term planningD) superb political skillsAnswer: AExplanation: Some managerial tasks, such as motivating store employees, require little or notechnical skill or long-term planning. Employee motivation employs a modicum of politicalskill–e.g., to enlist people to your cause–but a high-level political skill is generally not required.What can't be avoided at all levels of management is the necessity of making decisions. Themanager trying to motivate employees, for example, must decide on the appropriate "carrots andsticks" to get his or her people to perform successfully.Diff: 2LO: 1.3: Describe what managers do.

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2676) According to Katz, the four critical managerial skills can be classified as ________.A) technical, political, conceptual, and empiricalB) interpersonal, political, empirical, and technicalC) technical, interpersonal, political, and controllingD) technical, political, interpersonal, and conceptualAnswer: DExplanation: Empirical skills are not a part of Katz's scheme. Controlling is a Fayol category formanagerial function, not a Katz skill category.Diff: 1LO: 1.3: Describe what managers do.77) Understanding building codes would be considered a(n) ________ skill for a buildingcontractor.A) interpersonalB) technicalC) conceptualD) politicalAnswer: BExplanation: Building codes have little to do with understanding and relating to people, sointerpersonal skills and political skills can be ruled out for this question. Interpreting a buildingcode would require a contractor to analyze a complex situation, so it would entail a measure ofconceptual skill. However, the difficulty of dealing with a building code is largely a technicalmatter of understanding and interpreting the terms and various highly specialized conventions ofthe code itself.Diff: 2AACSB: Application of knowledgeLO: 1.3: Describe what managers do.78) Under which category would you classify skill in motivating subordinates?A) interpersonal skillsB) conceptual skillsC) technical skillsD) political skillsAnswer: AExplanation: Conceptual and technical skills are too abstract and impersonal to qualify as aclassification for motivational skill. Motivating people can feature a considerable amount ofpolitical skill. However, motivation is less about manipulating a power base within anorganization than it is in simply relating well to other people, so interpersonal skills is the bestchoice for this question.Diff: 2AACSB: Written and oral communicationLO: 1.3: Describe what managers do.

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2779) Designing a series of interview questions to provide information about possible customersfor a company would primarily require ________.A) technical skillsB) interpersonal skillsC) conceptual skillsD) political skillsAnswer: CExplanation: Designing interview questions would certainly require some degree of bothinterpersonal and political skills. However, the main challenge of the problem is to think throughthe complex situation of who would make a likely customer for a product. Therefore, conceptualskills would be of the highest priority for this task. The task would require little, if any, technicalskills as writing the questions could be easily accomplished with a simple word-processingprogram or pencil and paper.Diff: 2AACSB: Application of knowledgeLO: 1.3: Describe what managers do.80) Technical skills might include ________.A) excellent verbal skillsB) proficiency in computer programmingC) exceptional writing abilityD) decision-making abilityAnswer: BExplanation: Technical skills typically involve the mastery of some kind of specializedtechnology or technique that is helpful for a job. Verbal skills and writing ability are too generalto qualify as "technical." Decision-making ability does not involve a special technology ortechnique. Computer programming, though more common today than it was in previous decades,best qualifies as a technical skill.Diff: 2LO: 1.3: Describe what managers do.81) Which level of management would be more concerned with designing the overall structure ofan organization?A) Middle managementB) Supervisory managementC) Top managementD) First line managementAnswer: CExplanation: Top managers are concerned with designing the overall organization's structure,whereas middle and ower-level managers focus on designing the jobs of individuals and workgroups.Diff: 2AACSB: Reflective thinkingLO: 1.3: Describe what managers do.

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2882) Which set of skills would you expect the President of the United States to be least in needof?A) interpersonalB) politicalC) conceptualD) technicalAnswer: DExplanation: A president undoubtedly needs all four skills, but not in equal quantities. Politicalskills are obviously required for a politician to get elected and mobilize alliances once elected.Interpersonal skills would be critical to persuading people to support one's point of view.Conceptual skills would be required for analyzing difficult situations and navigating throughdangerous political waters. If any skill would be less needed, it would be technical, as technicalmatters for a president would likely be covered by subordinates.Diff: 2AACSB: Reflective thinkingLO: 1.3: Describe what managers do.Joe, the Manager (Scenario)As a production supervisor, Joe determines the number of output units his department willproduce each week. On Monday, he informs his team that the schedule is going to be difficultthis week due to the increased number of output units. He goes on to tell them that he isconfident that they can fulfill the schedule because they are tough, talented, and "when the goinggets tough, they are the ones who get going." Each day during the week, Joe checks the amountof output that the employees have completed and the number of units that have been rejected.83) When Joe checks the amount of output units that the team has completed and the number ofunits that have been rejected, he is performing which management process?A) controllingB) leadingC) planningD) organizingAnswer: AExplanation: Controlling involves monitoring ongoing tasks and evaluating them to see if theyare proceeding as planned. Since Joe is both monitoring and evaluating, the function he isperforming is controlling. Leading, planning, and organizing do not have an explicit monitoringcomponent, so controlling is the only function that fits here.Diff: 2AACSB: Application of knowledgeLO: 1.3: Describe what managers do.

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2984) When Joe tells the employees that he is sure they can fulfill the schedule because they are theones "who get going when the going gets tough," he is performing which management process?A) controllingB) leadingC) planningD) organizingAnswer: BExplanation: Leading involves motivating employees and getting them to the point where theytake "ownership" of their task and are internally driven to do a good job. Since Joe is appealingto these impulses, he is demonstrating leadership. Leading is the only function that specificallyinvolves motivating workers, so it is the only choice that fits for this question. Motivation is nota critical component of controlling, planning, or organizing.Diff: 2AACSB: Application of knowledgeLO: 1.3: Describe what managers do.The Busy Day (Scenario)Don Sakaguchi, manager at Control Systems, Inc., sighs as he sips his coffee at 5 A.M. and readshis agenda for the day. Don's first duty is to preside over a retirement party for a belovedemployee and say a few words on her behalf. Next, he will give a tour to a news reporter who iswriting a story on the new plant expansion. Don then has a meeting with the unit manager, PhilJohnson, to discuss Phil's recent performance drop (a task Don always hates). Finally, in the lateafternoon, Don will be reviewing the recent equipment malfunction and deciding whether todeploy extra people to get the equipment running as soon as possible. What a day!85) What role will Don be performing when he gives the plant tour to the newspaper reporter?A) monitorB) entrepreneurC) spokespersonD) resource allocatorAnswer: CExplanation: Giving a tour to a newspaper reporter is an informational role. Don will beshowcasing the features of the new plant expansion. This role of speaking for the company fitsthat of a spokesperson. Giving a tour is not a way of procuring new business opportunities, so itis not an entrepreneurial role. Don is not checking on ongoing tasks, so he is not functioning as amonitor. Finally, Don is speaking rather than making decisions, so he is not functioning in therole of resource allocator.Diff: 2AACSB: Application of knowledgeLO: 1.3: Describe what managers do.

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3086) When Don attends the retirement party, he will be operating in which of the managementroles?A) leaderB) liaisonC) monitorD) figureheadAnswer: DExplanation: Don's appearance at the party is largely a ceremonial role–he is representing theorganization during an important event–so he is performing the role of a figurehead. Don is notspecifically providing motivation for employees, so he is not functioning as a leader. He is notlinking to the outside world, so his role does not fit that of a liaison. Finally, he is not evaluatingor keeping track of tasks, so he is not functioning in the role of a monitor.Diff: 3AACSB: Application of knowledgeLO: 1.3: Describe what managers do.87) When Don meets with Phil to discuss Phil's output decline, in which management role willDon be operating?A) leaderB) figureheadC) disseminatorD) spokespersonAnswer: AExplanation: A person who resolves conflicts and "fixes" tricky situations that involve people isbeing a leader. Don's ability to point out Phil's failings while at the same time exhorting Phil todo better in the future is evidence of Don's leadership talent. Since both disseminator andspokesperson focus on informational rather than motivational issues, neither matches Don's rolein this task. Being a figurehead is an interpersonal role, but it does not involve ironing outinterpersonal problems, so it is not the correct choice here.Diff: 3AACSB: Application of knowledgeLO: 1.3: Describe what managers do.88) What kind of a manager is Don likely to be?A) first-line managerB) CEO of a major corporationC) low-level middle managerD) plant managerAnswer: DExplanation: Don's appearance at the party and role as host to the reporter suggest that he isclearly above the level of first-line manager and low-level middle manager. Don is too involvedwith everyday activities (Phil's problem and equipment malfunction) to be a top CEO. All of thisevidence suggests that Don is a fairly high-level middle manager–a plant manager.Diff: 3AACSB: Application of knowledgeLO: 1.3: Describe what managers do.

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