Chapter 07 – Management and Leadership
1. The main job of managers today is to watch over people to be sure they do what the
manager asks of them.
2. The best way to get people to do what a manager wants is for the manager to reprimand
those who don’t do things correctly.
3. Managers in progressive firms of all kinds tend to be friendly, and treat employees as
partners.
4. Managers must earn the trust of their employees.
5. Because of their importance and skills, few managers lost their jobs in the recent
economic crisis.
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6. A modern manager’s main job is to issue orders, then follow up to make sure employees
do as they were told.
7. Managers in progressive organizations tend to emphasize teamwork and cooperation
rather than discipline and giving orders.
8. Despite all of the changes in the business environment, the basic way a manager performs
his or her job has remained remarkably constant.
9. Given the lack of discipline and short attention spans of today’s workers, modern
managers must watch their workers closely, set strict rules, and vigorously enforce
policies.
Feedback: Today’s managers emphasize teamwork and cooperation rather than discipline and
order giving. Managers now guide, train, support, motivate and coach employees.
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10. In most high tech industries, the best way to respond quickly to rapid technological
changes is to keep most authority and responsibility in the hands of a few key managers
who provide precise, detailed directions to the workers.
Feedback: Managers of high-tech firms realize that workers often know much more about
technology than they do. Thus, most progressive managers emphasize teamwork and
cooperation rather than discipline and order giving.
11. Due to the fact that employees today often know much more about technology and the
technical aspects of their jobs than their managers do, progressive managers emphasize
team work and cooperation as a strategy for getting work done.
Feedback: Managers of high-tech firms realize that workers often know much more about
technology than they do. Thus, most modern managers emphasize teamwork and cooperation
rather than discipline and order giving.
12. Managers make decisions about how to use organizational resources to accomplish goals.
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18. The management function that involves guiding, training, and motivating others to work
toward the achievement of an organization’s goals is called leading.
19. In many smaller firms the manager’s role is to direct the employees, telling them exactly
what to do.
20. Planning is the function of management that includes anticipating future trends and
determining the best strategies and tactics to achieve an organization’s goals and
objectives
21.
Chapter 07 – Management and Leadership
Planning is a key management function because other management functions depend on
having a good plan.
22. Managers focus on making efficient use of their organization’s human resources, but leave
decisions about the efficient use of other resources such as buildings, machinery, and
supplies to engineers and accountants.
Feedback: Managers must practice the art of getting things done through organizational
resources including people, financial resources, information and all types of equipment and
assets.
23. Today’s progressive organizations are designed around the needs of the customer. The
idea is to organize systems to be responsive to customer needs.
Feedback: Organizing includes designing the structure of the organization and creating
conditions and systems in which everyone and everything work together to achieve the
organization’s goals and objectives.
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31. A vision is a detailed set of specific steps that a firm must take to achieve its short-run
objectives.
32. A statement about why an organization exists and what it is trying to achieve is called the
organization’s directive.
33. A vision is the overall explanation of why an organization exists and where it is trying to
head.
34. A vision gives the organization a sense of purpose and a set of values that unite employees
toward a common destiny.
35.
Chapter 07 – Management and Leadership
A mission statement outlines the fundamental purposes of an organization.
36. Today, a mission statement should also address social responsibility.
37. Goals are broad, long-term accomplishments an organization wants to achieve.
38. While goals are measurable, objectives are not.
39. Goals are developed and agreed to by management so that the workers can follow them.
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45. Strategic planning is now much easier than it used to be because managers have access to
very reliable computerized forecasting tools.
46. Tactical planning deals with setting long-range goals, while strategic planning develops
the specific strategies needed to achieve the organization’s operational goals.
47. Strategic planning determines the major goals of the organization.
48. Today’s business environment changes so rapidly that strategic planning is becoming
more difficult and subject to change.
49.
Chapter 07 – Management and Leadership
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Managers or teams of managers at the lower levels of an organization normally develop
strategic plans, but top managers do most of the tactical planning.
50. Contingency planning involves developing alternative courses of action to be used if the
primary plans do not achieve the desired results.
51. Operational planning looks at the organization as a whole, while strategic planning
focuses on specific departmental actions.
52. One example of tactical planning is setting annual budgets and deciding on other details
and activities necessary to meet the strategic objectives.
53.
Chapter 07 – Management and Leadership
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Many cities and businesses are now developing contingency plans to respond to potential
terrorist attacks.
54. Instead of creating detailed strategic plans, the leaders of market-based companies
(companies that respond quickly to environmental changes) set flexible directions so as to
allow for change and seize opportunities when they come.
55. Decision-making occurs in all management functions.
56. The first step in the rational decision-making model is to identify alternative solutions.
57.
Chapter 07 – Management and Leadership
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The last step in the rational decision-making model is to determine whether the decision
was a good one and follow up.
58. One step in the rational decision-making model is to develop alternatives.
59. Brainstorming is coming up with as many solutions as possible in a short period of time
with a focus toward not censoring anyone’s ideas.
60. Problem-solving is more formal than using the rational decision-making model.
61.
Chapter 07 – Management and Leadership
PMI is a problem solving technique that involves listing pluses, minuses and
implications.
62. In the Reaching Beyond Our Borders box titled, “The Japanese Crisis, Terrorism, and
American Business,” the authors emphasize tactical planning as more important than
contingency planning when managing the risk of natural disasters and terrorist threats.
Feedback: Contingency planning is the process of planning alternate courses of action, if the
primary plan of action does not work. In the case of natural disasters such as the Japanese
crisis, unexpected circumstances, such as terrorist threats, or economic and competitive
changes that occur very quickly, it is important to have alternate plans in case the first plan
does not work.
63. A mission statement should provide a detailed explanation of how a company will achieve
its objectives.
Feedback: A mission statement is an outline of the organization’s fundamental purposes, not a
detailed explanation of what is to be done and who is to do it. Figure 7.2 shows an actual
mission statement for Starbucks that clearly illustrates this.
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70. Jamika is a manager at a well-known retail store. Each morning she determines the order
in which store projects are performed; she sets work schedules for employees and
standards that must be met. These activities suggest that Jamika is involved in operational
planning.
Feedback: Operational planning is the process of setting work standards and schedules that
are necessary to carry out tactical plans.
71. Sharon needed to solve a problem quickly, so she called together the work team in her
department and asked them to list as many possible solutions as they could come up with
in a short period of time. During the process she encouraged responses and avoided
censoring what her workers said. Sharon is utilizing a problem solving technique known
as brainstorming.
Feedback: Brainstorming is a problem solving technique that encourages a group of people to
come up with as many suggestions for solving the problem as possible in a short period of
time, and with no censoring of ideas.
72. After management has created a plan of action, the focus turns to the controlling function
to recheck and often redo the plan.
73.
Chapter 07 – Management and Leadership
Organizing involves allocating resources, assigning tasks, and establishing procedures for
accomplishing the organizational objectives.
74. The visual illustration of the relationships among the people within an organization that
shows who is accountable for the work and who reports to whom is called a Gantt Chart.
75. An organizational chart shows who is accountable for the completion of specific work and
who reports to whom.
76. Branch and plant managers and division heads are classified as first-line managers.
77.