Management, 3e (Hitt)
Chapter 1 The Nature of Management
1) Management is the process of assembling and using sets of resources in a goal-directed
manner to accomplish tasks in an organizational setting.
2) In the context of an organization, all managers are members but all members are not
managers.
3) Managing change becomes difficult for managers because employees tend to resist change.
4) The growth of the Internet has increased the importance of human capital.
5) Global events have little effect on the goals that managers set, the decisions they make, and
how they coordinate and lead the work of other people.
6) A manager’s interpersonal and communication skills are essential to the process of allocating
and coordinating resources to accomplish the required tasks of an organization.
7) A firm’s reputation and its employees are both tangible resources.
8) An entrepreneurial mind-set allows a manager to assess uncertainty and take action to exploit
any possible opportunities.
9) Frederick Taylor, who is credited to be the “father of modern management,” believed that
employees are primarily motivated by pay.
10) Planning involves estimating future conditions and circumstances, and based on these
estimations, making decisions about the work of the manager and for all employees for whom
she or he is responsible.
11) Controlling is important but not a necessary managerial function.
12) Evaluating employee performance on completed tasks is not a part of controlling.
13) Mintzberg’s typology of managerial roles entails three major categories: planning, directing,
and controlling.
14) A marketing manager is acting as a figurehead when he or she interacts with key customers
to learn about their reactions to new product ideas.
15) According to Mintzberg, the informational roles of a manager are derived from the network
of contacts that he or she has built up and maintained.
16) In Mintzberg’s management model, the negotiator role often requires managers to make
accommodations with other units or other organizations.
17) Decisional roles are relatively unimportant in managerial responsibilities.
18) As the general manager of a steel plant, Frederick Ivanovic has to divide his time between
supervising the overall functioning of the plant, resolving conflicts between workers, preparing
production reports, and meeting with his seniors to provide them with regular updates. This
reflects the constraint dimension of management.
19) Technical skills involve specialized knowledge about procedures, processes, and equipment
and the related abilities of knowing when and how to use that knowledge.
20) A manager’s interpersonal skills include empathy, persuasiveness, and sensitivity.
21) Conceptual skills – such as logical reasoning, judgment, and analytical abilities are a strong
predictor of managerial effectiveness.
22) ________ is the process of assembling and using sets of resources in a goal-directed manner
to accomplish tasks in an organization.
A) Accounting
B) Management
C) Budgeting
D) Planning
23) In the context of an organization, members are defined as ________.
A) the nonmanagerial employees
B) all employees
C) the group of rank-and-file employees
D) members of the labor union
24) In the context of an organization, identify the correct statement from the following.
A) All members are, by definition, parts of collective bargaining units.
B) Union is synonymous with collective bargaining units.
C) All those who are not involved in specific managerial activities must be members of the
union.
D) The term member refers to all employees of the organization.
25) The term ________ refers to any person in an organization without regard to that individual’s
role in it.
A) management
B) member
C) manager
D) union
26) The term manager refers to anyone who ________.
A) is not a member of a labor union
B) is a member of an organization
C) owns shares in the company
D) plans, controls, and evaluates
27) Which of the following statements is true regarding change in an organization?
A) New managers are usually not expected to create change.
B) Managing change is a lengthy but straightforward task.
C) If employees are resistent to change, the only option left with a manager is to enforce it
forcibly.
D) Managers must face the need for change and the opportunity to create change.
28) The development of new technologies has ________.
A) increased the speed of change implementation
B) reduced the importance of skilled labor
C) restricted the flow of information
D) reduced the time-horizon of strategic planning
29) Which one of the following statements is true about the effects of the Internet on how
managers do their jobs?
A) The importance of knowledge has declined.
B) The Internet has reduced the amount of competition in all markets.
C) It offers new ways of accomplishing tasks.
D) It has decreased the importance of entrepreneurs.
30) Which of the following statements about globalization is NOT true?
A) Globalization opens new markets and increases competition.
B) Globalization promotes greater involvement in international markets.
C) Globalization affects the goals, decisions, and responsibilities of managers.
D) Globalization affects large businesses but seldom impacts small businesses.
31) Effective managers ________.
A) accept existing resource limits and levels of employee motivation
B) use resources to maximize the achievement of the organization’s goals
C) prefer working alone rather than with groups or other individuals
D) let subordinates evaluate people’s skills before selecting the best candidate
32) Managers at ________ establish goals and formulate a strategy for the firm to achieve those
goals.
A) the top of the organization
B) all levels of the organization
C) operational levels of the organization
D) functional levels of the organization
33) When forming the strategy of the major units within an organization, managers should
________.
A) not focus on the human factor
B) be innovative and entrepreneurial
C) assume that conditions will remain stable
D) focus only on existing opportunities
34) Managers who have an entrepreneurial mind-set ________.
A) resist uncertainty and maintain the status quo
B) are found only at the top-level of the organizational hierarchy
C) are alert to new ideas and use them to create value for customers
D) usually avoid risky ventures
35) What is the primary legacy of Frederick Taylor?
A) the concept of employee motivation
B) the principles of scientific management
C) the “hierarchy of needs” theory
D) the concept of job enrichment
36) Which of the following views is consistent with Frederick Taylor’s theory?
A) Workers are most motivated by pay.
B) The management should link workers’ incentives to their performance.
C) The management should bear in mind that workers function better when tasks are clearly
assigned.
D) Workers are best motivated by autonomy.
37) Douglas McGregor is best known for promoting ________ leadership practices in which
positive leadership can bring forth greater efforts and levels of achievement from employees.
A) Theory Y
B) Theory X
C) ERG theory
D) Theory Z
38) ________ involves estimating future conditions and circumstances and making decisions
based on these estimations.
A) Directing
B) Controlling
C) Organizing
D) Planning
39) ________ translates long-term plans into actions designed to achieve specific and shorter-
term goals and objectives.
A) Operational planning
B) Strategic planning
C) Tactical planning
D) Transactional planning
40) Sarah is the business manager of a company manufacturing shoes. After a successful stint in
the shoe industry, she begins to consider the viability of expanding the business to the leather
bag industry. This is an example of ________.
A) strategic planning
B) functional planning
C) operational planning
D) tactical planning
41) Scott is the business head of a software development firm that wants to increase its market
share to 30 percent in the next 5 years. The company feels that the best way to go about this is to
acquire smaller firms that have a promising talent pool. In his capacity as a business head, Scott
is required to plan how the company will arrange for the necessary finances for these
acquisitions. Scott is engaging in ________ for the firm.
A) operational planning
B) product planning
C) tactical planning
D) strategic planning
42) ________ identifies the actions needed to accomplish the goals of particular units of the
organization or particular product lines in their respective markets.
A) Directional planning
B) Tactical planning
C) Strategic planning
D) Operational planning
43) Of the four major functions of a manager, ________ involves systematically integrating
resources to accomplish tasks.
A) organizing
B) directing
C) planning
D) auditing
44) Of the four major functions of a manager, the purpose of ________ at the most basic level is
the attempt to bring order to the organization.
A) directing
B) organizing
C) auditing
D) feedback
45) The managerial function of ________ is the process of attempting to influence other people
to attain the objectives of an organization.
A) directing
B) planning
C) auditing
D) organizing
46) Which of the following is true about the principal managerial functions applicable to modern
organizations?
A) Organizing involves strategic and tactical planning.
B) Planning involves identifying the appropriate structure of relationships among positions and
the people occupying them.
C) Directing involves leading and motivating those for whom the manager is responsible.
D) Controlling employee behavior is easier for a manager from the middle level management.
47) The managerial function of ________ is regulating the work of those for whom a manager is
responsible.
A) directing
B) controlling
C) planning
D) auditing
48) Among many other responsibilities, Angela Morrison also manages two research teams at a
market research firm. Team leaders from both report to her and give her regular updates on how
the work is progressing. She carefully monitors the performance of both teams and gives them
regular feedback on their work. This is an example of ________.
A) auditing
B) controlling
C) organizing
D) planning
49) ________ roles of a manager are composed of the figurehead role, the leader role, and the
liaison role.
A) Informational
B) Decisional
C) Interpersonal
D) Negotiator
50) Acting as a figurehead involves ________.
A) influencing or directing others
B) extensive information seeking
C) attending or participating in ceremonial activities
D) contacts with persons outside the formal chain of command
51) As the regional manager of an accounting firm, Ruth is often required to attend ceremonial
activities like attending a social function on behalf of the company or presiding at a farewell
dinner of a departing employee. Which of the following is similar to the given scenario?
A) As a marketing manager, Aaron’s accountability to the firm lies in seeking extensive
information and remaining aware of crucial developments in the industry.
B) One of Naomi’s responsibilities as a manager is to build contacts with important officials
within and outside the industry.
C) As the dean of a business school, Jack is always present at official functions like
commencement ceremonies and convocations to give away diplomas.
D) In his capacity as a manager, Dave is often required to solve conflicts within the organization.
52) As the dean of a business school, Mike is often required to participate in activities such as
the inauguration of a new faculty or delivering a welcoming address at a seminar hosted by the
college. He is most likely playing the ________ role as a member of the college management.
A) liaison
B) leader
C) disseminator
D) figurehead
53) The ________ role of a manager involves influencing or directing others.
A) liaison
B) leader
C) figurehead
D) monitor
54) Matt is known to have substantial influence over his team. He has regular meetings with
them to ensure that they do not lose sight of what they are trying to accomplish. He also
motivates them to set challenging targets for themselves and achieve those targets. What role is
Matt playing?
A) the figurehead role
B) the monitor role
C) the negotiator role
D) the leader role
55) Which of the following roles is an interpersonal role?
A) negotiator
B) spokesperson
C) leader
D) disturbance handler
56) The ________ role emphasizes a manager’s contacts with those outside the formal chain of
command.
A) liaison
B) monitor
C) disseminator
D) resource allocator
57) Bianca is the marketing manager of a company that develops software. She interacts with
key clients to learn about their reactions to new product ideas. What managerial role is Bianca
playing here?
A) She is playing the role of an entrepreneur.
B) She is playing the role of a leader.
C) She is playing the role of a liaison.
D) She is playing the role of a figurehead.
58) Which of the following types of managerial roles includes acting as a monitor, disseminator,
and a spokesperson?
A) decisional roles
B) informational roles
C) interpersonal roles
D) liaison roles
59) The ________ role involves extensive information seeking in which managers engage to
remain aware of crucial developments that may affect their units and their own work.
A) disturbance handler
B) monitor
C) entrepreneurial
D) spokesperson
60) As the manager of a waste recycling company, Ruth has been asked to attend a seminar on
green living. At the seminar, she spends considerable time interacting with her colleagues from
the industry and discussing the various events and innovations that are taking place. Ruth feels it
is extremely important for her to remain updated with the developments in the industry. She is
playing the ________ role.
A) liaison
B) monitor
C) negotiator
D) entrepreneurial