Chapter 01 The Management Process Today Answer Key
True / False Questions
1.
Organizations are efficient when managers maximize the amount of input resources.
FALSE
Efficiency is a measure of how productively resources are used to achieve a goal.
Organizations are efficient when managers minimize the amount of input resources or the
amount of time needed to produce a given output of goods or services.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
2.
The number of students competing for places in business courses is on a constant
decline.
FALSE
Today more students are competing for places in business courses than ever before; the
number of people wishing to pursue Master of Business Administration (MBA) degrees—
today’s passport to an advanced management position—either on campus or from online
universities and colleges is at an all-time high.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
3.
Managers at all levels and in all departments are responsible for planning, organizing,
leading, and controlling.
TRUE
Managers perform four essential managerial tasks: planning, organizing, leading, and
controlling. Managers at all levels and in all departments—whether in small or large
companies, for-profit or not–for-profit organizations, or organizations that operate in one
country or throughout the world—are responsible for performing these four tasks.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Distinguish among planning, organizing, leading, and controlling (the four principal managerial
tasks), and explain how managers’ ability to handle each one affects organizational performance.
Topic: Management
4.
The outcome of organizing is the creation of a strategy.
FALSE
Strategy is associated with the managerial function of planning. The outcome of
organizing is the creation of an organizational structure, a formal system of task and
reporting relationships that coordinates and motivates members so they work together to
achieve organizational goals.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Distinguish among planning, organizing, leading, and controlling (the four principal managerial
tasks), and explain how managers’ ability to handle each one affects organizational performance.
Topic: Organizing
5.
An organization’s vision is a short, succinct, and inspiring statement of what the
organization intends to become and the goals it is seeking to achieve.
TRUE
An organization’s vision is a short, succinct, and inspiring statement of what the
organization intends to become and the goals it is seeking to achieve—its desired future
state. In leading, managers articulate a clear organizational vision for the organization’s
members to accomplish, and they energize and enable employees so everyone
understands the part he/she plays in achieving organizational goals.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Distinguish among planning, organizing, leading, and controlling (the four principal managerial
tasks), and explain how managers’ ability to handle each one affects organizational performance.
Topic: Leading
6.
In contrast to middle managers, top managers are responsible for the performance of
specific departments.
FALSE
In contrast to middle managers, top managers are responsible for the performance of all
departments. They have cross-departmental responsibility.
Difficulty: 1 Easy
Learning Objective: 01-03 Differentiate among three levels of management, and understand the tasks and responsibilities
of managers at different levels in the organizational hierarchy.
Topic: Top-level Management
7.
Today, the term “chief operating officer” refers to the chief executive officer.
FALSE
The chief executive officer (CEO) is a company’s most senior and important manager, the
one all other top managers report to. Today the term “chief operating officer” (COO) refers
to the company’s top manager who is being groomed to take over as CEO when its current
CEO becomes the chair of the board, retires, or leaves the company.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Differentiate among three levels of management, and understand the tasks and responsibilities
of managers at different levels in the organizational hierarchy.
Topic: Top-level Management
8.
Conceptual skills include the general ability to understand, alter, lead, and control the
behavior of other individuals and groups.
FALSE
Conceptual skills are demonstrated in the general ability to analyze and diagnose a
situation and to distinguish between cause and effect. Top managers require the best
conceptual skills because their primary responsibilities are planning and organizing.
AACSB: Analytical Thinking
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different departments.
Topic: Top-level Management
9.
Restructuring involves contracting with another company in a low-cost country abroad to
have it perform a work activity the organization previously performed itself.
FALSE
Restructuring involves simplifying, shrinking, or downsizing an organization’s operations to
lower operating costs. Restructuring can be done by eliminating product teams, shrinking
departments, and reducing levels in the hierarchy, all of which result in the loss of large
numbers of jobs of top, middle, or first-line managers, as well as nonmanagerial
employees.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-05 Discuss some major changes in management practices today that have occurred as a result of
globalization and the use of advanced information technology (IT).
Topic: Recent Changes in Management Practices
10.
Restructuring results in the loss of jobs.
TRUE
Restructuring can be done by eliminating product teams, shrinking departments, and
reducing levels in the hierarchy, all of which result in the loss of large numbers of jobs of
top, middle, or first-line managers, as well as nonmanagerial employees.
AACSB: Analytical Thinking
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Topic: Recent Changes in Management Practices
11.
Not-for-profit sectors are not affected by global competition.
FALSE
Global competition is spurring change in the not-for-profit sector. Schools, universities,
police forces, and government agencies are reexamining their operations because looking
at how activities are performed in other countries often reveals better ways to do them.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Discuss the principal challenges managers face in today’s increasingly competitive global
environment.
Topic: Globalization
12.
An organization’s efficiency decreases when it reduces the quantity of resources it uses to
produce goods or services.
FALSE
Organizations increase their efficiency when they reduce the quantity of resources they
use to produce goods or services. In today’s competitive environment, organizations
continually search for new ways to use their resources to improve efficiency.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Discuss the principal challenges managers face in today’s increasingly competitive global
environment.
Topic: Globalization
13.
Innovation takes place when management centralizes control of work activities and
creates an organizational culture that precludes risk taking.
FALSE
Innovation, the process of creating new or improved goods and services that customers
want or developing better ways to produce or provide goods and services, poses a special
challenge. Typically innovation takes place in small groups or teams; management
decentralizes control of work activities to team members and creates an organizational
culture that rewards risk taking.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Discuss the principal challenges managers face in today’s increasingly competitive global
environment.
Topic: Globalization
14.
Turnaround management is the creation of a new vision for a struggling company based
on a new approach to planning and organizing to make better use of a company’s
resources and allow it to survive and prosper.
TRUE
Turnaround management is the creation of a new vision for a struggling company using a
new approach to planning and organizing to make better use of a company’s resources
and allow it to survive and eventually prosper. It involves developing radical new strategies
such as how to reduce the number of products sold or change how they are made and
distributed, or close corporate and manufacturing operations to reduce costs.
Learning Objective: 01-06 Discuss the principal challenges managers face in today’s increasingly competitive global
environment.
Topic: Globalization
15.
Organizations appoint turnaround CEOs when the organizations become more efficient
and effective.
FALSE
Organizations that appoint turnaround CEOs are generally experiencing a crisis because
they have become inefficient or ineffective; sometimes this is because of poor
management over a continuing period, and sometimes it occurs because a competitor
introduces a new product or technology that makes their own products unattractive to
customers.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Discuss the principal challenges managers face in today’s increasingly competitive global
environment.
Topic: Globalization
Multiple Choice Questions
16.
An organization’s
resources
include assets such as ________.
A.
competitors
B.
loyal customers and employees
C.
ethical codes
D.
An organization’s
resources
include assets such as people and their skills, know-how, and
experience; machinery; raw materials; computers and information technology; and patents,
financial capital, and loyal customers and employees.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
17.
Management includes ________.
A.
planning and organizing of resources other than human resources
B.
planning, organizing, and leading of resources and controlling them
C.
planning and organizing but not leading and controlling
D.
leading and controlling but not planning and organizing
Organizational performance is a measure of how efficiently and effectively managers use
available resources to satisfy customers and achieve organizational goals. Organizational
performance increases in direct proportion to increases in efficiency and effectiveness.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
18.
Which of the following is an appropriate definition of organizational performance?
A.
It is the process of obtaining, analyzing, and recording information about the relative
worth of an employee to the organization.
B.
It is a measure of how efficiently and effectively managers use available resources to
satisfy customers and achieve organizational goals.
C.
It is an approach to modeling organizations using one-on-one interactions between
members of the organization as a proxy for all value–adding activities in the
organization.
D.
It is a measure of the interaction among the managerial culture, the workplace culture,
and the surrounding culture.
Organizational performance is a measure of how efficiently and effectively managers use
available resources to satisfy customers and achieve organizational goals. Organizational
performance increases in direct proportion to increases in efficiency and effectiveness.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19.
A measure of how productively resources are used to achieve a goal is known as
________.
A.
efficiency
B.
effectiveness
C.
reliability
D.
validity
Efficiency is a measure of how productively resources are used to achieve a goal.
Organizations are efficient when managers minimize the amount of input resources or the
amount of time needed to produce a given output of goods or services.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
20.
Which of the following defines efficiency of a manager?
A.
Choosing appropriate goals and achieving them
B.
Justifying time needed to produce a given output of goods
C.
Increasing production through greater investment of resources
D.
Minimizing the amount of input resources
Efficiency is a measure of how productively resources are used to achieve a goal.
1-12
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
21.
A measure of the appropriateness of the goals that managers have selected for the
organization to pursue and the degree to which the organization achieves those goals is
________.
A.
efficiency
B.
reliability
C.
utility
D.
effectiveness
Effectiveness is a measure of the appropriateness of the goals that managers have
selected for the organization to pursue and the degree to which the organization achieves
those goals. Organizations are effective when managers choose appropriate goals and
then achieve them.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
22.
Which of the following is true of effectiveness?
A.
Organizational performance increases in direct proportion to increase in effectiveness.
B.
It is a measure of how productively resources are used to achieve a goal.
C.
Organizations are effective when managers minimize the amount of input resources.
D.
Effectiveness is related to performance but not efficiency.
Effectiveness is a measure of the appropriateness of the goals that managers have
selected for the organization to pursue and the degree to which the organization achieves
those goals. Organizations are effective when managers choose appropriate goals and
then achieve them.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
23.
A manufacturing company is said to be effective if it ________.
A.
uses fewer workers and yet maintains productivity as before
B.
takes less time than before to produce a given output
C.
sets appropriate goals and achieves them
D.
generates employment for a large number of people
Effectiveness is a measure of the
appropriateness
of the goals that managers have
selected for the organization to pursue and the degree to which the organization achieves
those goals. Organizations are effective when managers choose appropriate goals and
then achieve them.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
24.
Low efficiency/high effectiveness situations arise when managers choose ________.
A.
wrong goals to pursue and make poor use of resources to achieve these goals
B.
right goals to pursue but do a poor job of using resources to achieve these goals
C.
right goals to pursue and make good use of resources to achieve these goals
D.
wrong goals to pursue and make good use of resources to achieve these goals
Low efficiency/high effectiveness situations arise when managers choose the right goals
to pursue, but do a poor job of using resources to achieve these goals. These situations
result in the production of a product that customers want, but that is too expensive for
them to buy.
Refer: Figure 1.1
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
1-16
25.
High efficiency/high effectiveness situations result in the production of a ________.
A.
high-quality product that customers do not want
B.
high-quality product that few customers can afford
C.
product that customers want at a quality and price they can afford
D.
product of mediocre quality that customers will buy despite its high price
High efficiency/high effectiveness situations arise when managers choose the right goals
to pursue and make good use of resources to achieve these goals. It results in the
production of a product that customers want at a quality and price that they can afford.
Refer: Figure 1.1
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
26.
Low efficiency/low effectiveness situations include ________.
A.
the production of a product that customers want, but that is too expensive for them to
buy
B.
the production of a product that customers want at a quality and price that they can
afford
C.
managers choosing the wrong goals to pursue and making poor use of resources
D.
managers choosing wrong goals but making good use of resources to pursue these
goals
Low efficiency/low effectiveness situations arise when managers choose the wrong goals
to pursue and make poor use of resources. It results in the production of a low-quality
product that customers do not want.
Refer: Figure 1.1
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
27.
Which of the following describes organizational performance that results in a product that
customers want, but that is too expensive for them to buy?
A.
Low efficiency and low effectiveness
B.
High efficiency and low effectiveness
C.
Low efficiency and high effectiveness
D.
High efficiency and high effectiveness
In a low efficiency and high effectiveness situation, the manager chooses the right goals to
pursue, but does a poor job of using resources to achieve these goals. As a result, you get
a product that customers want, but that is too expensive for them to buy.
Refer: Figure 1.1
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
28.
Which of the following describes organizational performance that results in a product that
customers want at a quality and price that they can afford?
A.
Low efficiency and low effectiveness
B.
High efficiency and low effectiveness
C.
Low efficiency and high effectiveness
D.
High efficiency and high effectiveness
In a high efficiency and high effectiveness situation, the manager chooses the right goals
to pursue and makes good use of resources to achieve these goals. It results in a product
that customers want at a quality and price that they can afford.
Refer: Figure 1.1
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management
29.
Which of the following describes organizational performance that results in a low-quality
product that customers do not want?
A.
Low efficiency and low effectiveness
B.
High efficiency and low effectiveness
C.
Low efficiency and high effectiveness
D.
High efficiency and high effectiveness
In a low efficiency and low effectiveness situation, the manager chooses wrong goals to
pursue and makes poor use of resources. It results in a low-quality product that customers
do not want.
Refer: Figure 1.1
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Describe what management is, why management is important, what managers do, and how
managers use organizational resources efficiently and effectively to achieve organizational goals.
Topic: Management