Chapter 1: Management
TRUE/FALSE
1. While good management is basic to starting and growing a business, once some measure of success
has been achieved, good management becomes less important.
2. Managers are responsible for doing the basic work in the company.
3. Companies that plan have larger profits and faster growth than companies that don’t.
4. The classical functions of management are (1) making things happen, (2) meeting the competition, (3)
organizing people, projects, and processes, and (4) leading.
5. According to What Really Works, Meta-Analysis, meta-analysis is a research tool that combines the
results of a number of research studies.
6. According to the What Really Works box, meta-analysis is useful for management theorists and
researchers, but it has little value for the practicing manager.
7. Top managers are responsible for creating a context for change in the organization.
8. Top managers are the managers responsible for facilitating team activities toward goal
accomplishment.
9. As the health-care team leader for Commerce Bank, Emmett Conlon is responsible for facilitating his
team’s performance and should not be involved with any employees outside of his team.
10. Typical titles used for top managers are general manager, plant manager, regional manager, and
divisional manager.
11. First-line managers are responsible for setting objectives consistent with organizational goals and
planning and implementing subunit strategies for achieving these objectives.
12. Bandai, the third-largest toy maker in the world, has embarked on a series of acquisitions in an effort
to become the leading toy maker in the world. The decision to adopt this goal was most likely made
by its top management.
13. Middle managers are typically responsible for coordinating and linking groups, departments, and
divisions within a company.
14. First-line managers are the only managers who do not supervise other managers.
15. Middle managers engage in plans and actions that typically produce results within two weeks.
16. The Procter & Gamble manager who oversaw the manufacturing changes that were needed to make
smaller, more environmentally safe cartons of Tide detergent had to be strong in both human and
technical skills.
17. The job of team leader would NOT be considered a management position.
18. Team leaders direct the work of individuals within the team structure.
19. Team leaders are responsible for managing both internal team relationships and external relationships
with other teams, departments, and divisions in a company.
20. While interpersonal conflict management is a critical skill for first-line managers, it is not a very
important skill for team leaders.
21. The three interpersonal subroles are monitor, disseminator, and spokesperson.
22. Mintzberg concluded that managers fulfill three major roles while performing their jobs. These roles
are categorized as interpersonal roles, organizational roles, and decisional roles.
23. The decisional roles consist of four subroles. They are entrepreneur, disturbance handler, resource
allocator, and spokesperson.
1.3.
TOP: AACSB Reflective Thinking KEY: Individual Dynamics | Leadership Principles
24. When the CEO of Whole Foods slashed his salary from $1 million to $1 to avoid the huge salary
disparities that negatively influence employee morale in many corporations, he was using the
management function of organizing.
25. In the entrepreneur role, managers adapt themselves, their subordinates, and their units to change.
26. Companies look for a total of four sets of skills in individuals to identify potential managers. These
desired skills are technical skills, human skills, conceptual skills, and motivation to manage.
27. Technical skill refers to the ability to see the organization as a whole, how the different parts affect
each other, and how the company fits into or is affected by its environment.
28. For many managers, the knowledge, skills, and abilities that led to success early in their careers (i.e.,
prior to their promotion into the ranks of management) may not necessarily help them succeed as
managers.
29. Conceptual skills are most important for lower-level managers.
30. Upper-level managers may actually spend more time dealing with people than lower-level managers.
31. Only first-line managers need technical skills.
32. The motivation to manage tends to be higher among managers at higher levels in the organization than
it is among managers at lower levels in the organization.
33. The number one mistake made by managers who were “derailed” from their fast track movement up
the managerial ranks was that they didn’t develop the necessary technical skills.
34. After taking this course, you will have a very clear idea of what you will be expected to do as a
manager.
35. A management study discovered that companies that invest in their people will create long-term
competitive advantages that are difficult for other companies to duplicate.
MULTIPLE CHOICE
1. __________ is defined as getting work done through others.
a.
Management
b.
Planning
c.
Organizing
d.
Strategizing
e.
Controlling
2. When Ruth was hired to be the second–in-command at Graham Mailing Services, she was told that her
job was to deal with the employees to make sure they got the mailing done to the customers’
specifications. She was not instructed on how to run machines or in any other technical area because
hers was a job in:
a.
marketing
b.
relationship control
c.
management
d.
customer service
e.
strategizing
3. A manager striving to improve organizational __________ is accomplishing tasks that help fulfill
organizational objectives.
a.
efficiency
b.
effectiveness
c.
functionality
d.
synergy
e.
productivity
4. In 2004, Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas, C2 and Pepsi
Edge, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse since
one of their key tenets is avoiding refined sugar in any amount. The new brands grabbed a combined
market share of less than 1 percent. Given that the objective of both soft drink manufacturers was to
increase their market share, the introductions were notably:
a.
synergistic
b.
empathetic
c.
inefficient
d.
autonomous
e.
reciprocal
5. One of the reasons for the slow response to help the victims of Hurricane Katrina was an antiquated
FEMA system that was bogged down in bureaucratic red tape. In other words, the failure of assistance
to arrive in a timely fashion was due to a lack of:
a.
apathy
b.
efficiency
c.
instrumentality
d.
effectiveness
e.
the absence of entropy
6. _____ is the accomplishment of tasks that help fulfill organizational objectives.
a.
Benchmarking
b.
Optimizing
c.
Satisficing
d.
Efficiency
e.
Effectiveness
7. To achieve its goal of increased market share, Krispy Kreme launched a program in Palm Beach
County, Florida, that awards grade-school students a free doughnut for every A on their report cards.
Which management function was used to create this program?
a.
controlling
b.
leading
c.
focusing
d.
planning
e.
organizing
8. Nestlé was unsuccessful in early attempts to sell its chocolate in India. It discovered its chocolate bars
were not suitable for the Indian markets because the candy had to sit in direct sunlight without benefit
of air conditioning and became messy. Nestlé adopted an innovation strategy and developed
Chocostick, a liquid chocolate, which is very popular. Nestlé used which management function to
solve its problem?
a.
planning
b.
meeting the competition
c.
making things happen
d.
organizing people, processes, and projects
e.
leading
9. A manager engaged in the management function of __________ is determining organizational goals
and the means for achieving them.
a.
planning
b.
organizing
c.
leading
d.
human resources management
e.
controlling
10. Interstate Bakeries, the makers of Wonder bread, declared bankruptcy in 2003. The company’s
objectives in 2004 were to increase its revenues by at least 5 percent and reduce its net losses by at
least 80 percent. Which management function was used to set these goals and will help the company
meet these goals?
a.
planning
b.
organizing
c.
controlling
d.
motivating
e.
leading
11. The candy market in Asia has grown recently as more Asians emulate the American lifestyle, and
Hershey has decided that to grow it must start selling to the Asian markets. This decision was part of
which management function?
a.
planning
b.
organizing
c.
leading
d.
controlling
e.
evaluating
12. A business school administrator who is determining what classes will be offered in which rooms and
who will teach each specific class is involved in which classical management function?
a.
making things happen
b.
organizing
c.
controlling
d.
motivating
e.
leading
13. The candy market in Asian has grown recently as more Asians emulate the American lifestyle, and
Hershey has decided that to grow it must start selling to the Asian markets. Which management
function will help determine who decides how Hershey will get its products into the small
pop-and-mom retail outlets that are prevalent in China?
a.
planning
b.
organizing
c.
leading
d.
controlling
e.
evaluating
14. In November 2004, designer Karl Lagerfeld partnered with Swedish retailer Hennes & Mauritz to sell
an affordable line of high-fashion clothing, which Lagerfeld will design exclusively for the retailer.
Hennes & Mauritz will take responsibility for manufacturing and marketing the clothes. Which
management function guided the alliance between the designer and the retailer?
a.
controlling
b.
leading
c.
motivating
d.
planning
e.
organizing
15. According to the “What Really Works” box, a(n) __________ is a type of study that often shows the
conditions under which management techniques may work better or worse in the real world.
a.
social audit
b.
meta-analysis
c.
effectiveness analysis
d.
SWOT analysis
e.
risk assessment
16. According to the “What Really Works” box, meta-analysis is of value to and will benefit:
a.
investors and financial institutions
b.
any student of business
c.
all stakeholders
d.
management scholars and practicing managers
e.
none of these
17. According to the “What Really Works” box, which of the following statements about meta-analysis is
true?
a.
Meta-analysis is a statistical technique applicable only in a single research study.
b.
Meta-analysis is of value to all organizational stakeholders.
c.
Statistics generated through meta-analysis cannot be converted to an understandable
format.
d.
Meta-analysis shows the conditions under which management techniques may work better
or worse in the real world.
e.
Meta-analysis only benefits inexperienced managers.
18. According to the “What Really Works” box, __________ suggest that a test of general mental ability
will be a successful predictor of a job applicant’s on-the-job performance about 75 percent of the time.
a.
meta-analyses
b.
market audits
c.
employee-fit tests
d.
job analyses
e.
social interaction audits
19. A U.S. Marine drill instructor motivating new recruits to challenge themselves is engaged in which
management function?
a.
planning
b.
organizing
c.
controlling
d.
motivating
e.
leading
20. In 2004, the Massachusetts Institute of Technology (MIT) announced that it was going to overcome
the “digital divide” by making a $100 laptop for the poor children of the world. By relying strongly on
the _____ function of management, MIT has nearly achieved its goal.
a.
planning
b.
organizing
c.
leading
d.
controlling
e.
evaluating
21. A manager engaged in the management function of __________ is monitoring progress toward goal
achievement and taking corrective action when needed.
a.
planning
b.
organizing
c.
leading
d.
controlling
e.
motivating
22. Jane is in charge of her Rotary Club’s annual fund-raising auction. She will decide who will ask local
businesses for prizes, who will determine the site, who will sell tickets to customers, and who will
work the night of the auction. She is engaged in the management function of:
a.
planning
b.
controlling
c.
leading
d.
resource allocation
e.
organizing
23. Southern Living magazine was forced to pull its April 2004 issue off newsstands and mail warnings to
2.5 million subscribers after it became clear that a recipe for dinner rolls described as “little pillows
from heaven” created a rather impressive firestorm. The management function of _____ was used
when the warnings were mailed to subscribers.
a.
planning
b.
organizing
c.
controlling
d.
motivating
e.
leading
24. In 2004, Hormel Foods had to recall 104,000 pounds of Stagg canned chili—labeled “hearty beef with
a kick of green chilies”—after the kick turned out to come instead from the ground-up parts of a
plastic handheld calculator. The recall was the application of which management function?
a.
controlling
b.
leading
c.
motivating
d.
planning
e.
organizing
25. As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton,
Michigan, Kim Radeback had to find inexpensive ways to reward employees and bolster morale
during a sales-flattening economic downturn. Radeback had to engage in which management function?
a.
planning
b.
organizing
c.
leading
d.
controlling
e.
evaluating
26. Robert Rothschild Farm boosted the morale and showed its gratitude to its 75 employees at its retail
store, cafe, and production facility by hosting its first employee appreciation week. It used the
management function of _____ to boost morale.
a.
leading
b.
commanding
c.
organizing
d.
controlling
e.
resource allocation
27. Eastman Kodak owns a company that manufactures dental radiation equipment. The company, which
is run as an independent unit, has experienced excessive financial losses the last three years. The
__________ for the company would be expected to develop the long-term plans needed to make the
company profitable.
a.
supervising manager
b.
top manager
c.
first-line manager
d.
middle manager
e.
department manager
28. In 2004, Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas, C2 and Pepsi
Edge, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse since
one of their key tenets is avoiding refined sugar in any amount. The new brands grabbed a combined
market share of less than 1 percent. Coke’s and PepsiCo’s __________ would be responsible for
determining that the product should be deleted from each of their product lines.
a.
middle management
b.
first-line management
c.
team leaders
d.
product supervisors
e.
top management
29. Which of the following typically is NOT performed by top managers?
a.
setting objectives consistent with organizational goals or planning and implementing
subunit strategies for achieving these objectives
b.
developing in employees the attitudes of commitment to and ownership in the company’s
performance
c.
creating a positive organizational culture through language and action
d.
monitoring the business environment
e.
creating a context for change
30. After declaring bankruptcy in 2003, Interstate Bakeries, the makers of Twinkies, Ho Hos, and Ding
Dong snack cakes, decided to modernize its products’ look by redesigning its packaging.
__________ would be responsible for implementing this package change.
a.
middle management
b.
First-line management
c.
Team leaders
d.
Product supervisors
e.
Top management
31. A middle manager for a manufacturer of environmentally friendly packaging would:
a.
monitor how consumers feel about environmental waste
b.
schedule vacation time for employees
c.
determine how the company was going to implement a plan calling for a 10 percent
decrease in costs
d.
be responsible for maintaining a positive organizational culture
e.
do all of these
32. A top manager for a management consulting firm would:
a.
establish a positive organizational culture that encourages employees to be passionate
about their clients
b.
make sure employees are attired according to the company dress code
c.
evaluate the performance of individual consultants
d.
monitor expense statements turned in by consultants
e.
coordinate activities within and between consultants working in the field and support staff
in the office
33. The chairs of the accounting, marketing, and communications departments at a typical university are
assuming the roles of __________ because they supervise nonmanagerial employees.
a.
supervising managers
b.
top managers
c.
first-line managers
d.
middle managers
e.
department managers
34. As a result of the 2005 blackout in Los Angeles, __________ in the police department had to
determine which police officers were going to work overtime.
a.
top managers
b.
middle managers
c.
administrative managers
d.
first-line managers
e.
team leaders
35. __________ are responsible for creating a positive organizational culture through language and action.
a.
Top managers
b.
Middle managers
c.
Team leaders
d.
Supervisors
e.
Group facilitators
36. Robert Rothschild Farm boosted the morale and showed its gratitude to its 75 employees at its retail
store, cafe, and production facility by hosting its first employee appreciation week. “It was a good
mix of fun and learning,” said Robin Coffey, marketing manager. Coffey is an example of a:
a.
supervising manager
b.
top manager
c.
first-line manager
d.
middle manager
e.
department manager
37. _____ were most likely responsible for Hershey’s decision to sell its products in the Asian markets.
a.
General managers
b.
Middle managers
c.
First-line managers
d.
Team leaders
e.
Top managers
38. As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton,
Michigan, Kim Radeback had to find inexpensive ways to reward employees and bolster morale
during a sales-flattening economic downturn. Radeback is an example of a:
a.
supervising manager
b.
top manager
c.
first-line manager
d.
middle manager
e.
department manager
39. Typical responsibilities for __________ include setting objectives consistent with organizational goals
and then planning and implementing the subunit strategies for achieving these goals.
a.
top managers
b.
shift supervisors
c.
first-line managers
d.
team leaders
e.
middle managers
40. Middle managers typically:
a.
plan and allocate resources
b.
coordinate and link groups and departments
c.
implement changes and strategies generated by top managers
d.
monitor the activities of first-line managers who report to them
e.
do all of these
41. Typical responsibilities for __________ include coordinating and linking groups, departments, and
divisions within a company.
a.
top managers
b.
middle managers
c.
vice presidents
d.
team leaders
e.
first-line managers
42. It is the responsibility of __________ to develop intermediate plans, designed to produce results within
six to eighteen months.
a.
top managers
b.
middle managers
c.
first-line managers
d.
group facilitators
e.
team leaders
43. First-line managers will most likely have to:
a.
monitor the performance of corporate investments
b.
encourage, monitor, and reward the performances of their employees
c.
determine how to deal with long-term environmental changes
d.
periodically monitor the company’s organizational culture
e.
do none of these
44. Managers who train and supervise the performance of nonmanagerial employees, and who are directly
responsible for producing the company’s products or services, are categorized as:
a.
general managers
b.
middle managers
c.
first-line managers
d.
team leaders
e.
top managers
45. During the week of August 9 in 2004, Robert Rothschild Farm boosted the morale and showed its
gratitude to its 75 employees at its retail store, cafe, and production facility by hosting its first
employee appreciation week. A _____ manager more than likely planned the employee picnic,
selected and ordered the awards, and encouraged workers to attend.
a.
marketing
b.
team
c.
first-line
d.
top
e.
middle
46. Walker supervises operations on the chassis assembly line for a large vehicle manufacturer. Most of
his time is spent in quality control maintenance, scheduling workers, and training new employees.
Walker would be categorized as a:
a.
first-line manager
b.
middle manager
c.
top manager
d.
team leader
e.
group facilitator
47. A first-line manager for a large electric generator manufacturer would:
a.
monitor how its customers feel about electric-powered engines
b.
determine if the company needed to increase its production by adding another shift
c.
monitor and manage the performance of the company’s international subsidiaries
d.
manage the performance of employees who actually build the generators
e.
do all of these
48. A __________ for a McDonald’s fast-food restaurant would be responsible for placing orders for food
and paper supplies and for setting up weekly work schedules.
a.
corporate vice president
b.
middle manager
c.
first-line manager
d.
division supervisor
e.
top manager
49. Middle managers will most likely have to:
a.
facilitate a bottom-up planning approach to supervising
b.
manage the performance of entry-level employees
c.
implement the changes generated by top managers
d.
develop employees’ commitment to and ownership of the company’s performance
e.
monitor long-term environmental trends
50. The CEO of Camper brand shoes expects its designers to operate like a team when they create new
shoe designs. Most of its designers do not have a background in fashion so it is important that they
share their expertise. Each team has a leader who is responsible for:
a.
developing organizational codes of ethics
b.
managing external and internal team relationships
c.
developing growth strategies
d.
coordinating the performances of all teams
e.
doing all of these
51. Team leaders typically:
a.
conduct quality control audits
b.
manage external and internal relationships
c.
act as department liaisons
d.
oversee strategy implementation
e.
do all of these
52. According to Mintzberg, which of the following lists the three major roles managers fulfill while
performing their jobs?
a.
interpersonal roles, informational roles, and decisional roles
b.
informational roles, ethical roles, and action roles
c.
corporate roles, coordination roles, and informational roles
d.
decisional roles, informational roles, and organizational roles
e.
interpersonal roles, intrapersonal roles, and departmental roles
53. Which of the following is an example of an interpersonal role?
a.
figurehead
b.
monitor
c.
disseminator
d.
resource allocator
e.
spokesperson
54. According to Mintzberg, managers engaged in __________ roles are talking to people inside and
outside the organization.
a.
decisional
b.
conceptual
c.
interpersonal
d.
informational
e.
motivational
55. The marketing manager of Interstate Bakeries was asked to meet with the organization’s research and
development department to explain why the company needed to change its 25-year-old package design
for Twinkies. The marketing manager took on an interpersonal role as:
a.
liaison
b.
disseminator
c.
disturbance handler
d.
figurehead
e.
resource allocator
56. Millard Fuller, who founded the world-renowned Christian housing ministry Habitat for Humanity
International with his wife, ended his service as president in 2005. In 2004 Fuller had been forced into
assuming a figurehead role since the hiring of a new managing director. What did Fuller do?
a.
He distributed critical information to employees.
b.
He monitored the environment.
c.
He helped the organization adapt to incremental changes.
d.
He negotiated salaries, raises, and promotions.
e.
He performed ceremonial duties like greeting company visitors.
57. What interpersonal role, as defined by Mintzberg, was the CEO of Whole Foods assuming when he
slashed his salary from $1 million to $1 to avoid the huge salary disparities that negatively influence
employee morale in many corporations?
a.
figurehead
b.
monitor
c.
leader
d.
negotiator
e.
spokesperson
58. At the death of her husband, Miriam McAllister became the CEO of a company that is the world’s
leading manufacturer of kidney dialysis machines. It was believed when she took the position that she
would only perform ceremonial duties and would not want to be actively involved in the running of the
company. In other words, it was assumed she would be a:
a.
resource allocator
b.
monitor
c.
disseminator
d.
spokesperson
e.
figurehead
59. Lorenzo Fluza is the owner and CEO of the company that makes Camper shoes. Mintzberg would
describe Lorenzo Fluza as taking a leader role within the organization. This means he spends much of
his time:
a.
negotiating
b.
responding to instrumental change
c.
performing ceremonial duties
d.
motivating and encouraging its employees to meet their organizational objectives
e.
ignoring interpersonal roles
60. As described by Mintzberg, a marketing manager who was hired by a manufacturer of plumbing
fixtures to operate information booths at more than twenty different international trade shows annually
would have the informational role of:
a.
entrepreneur
b.
resource allocator
c.
figurehead