Chapter 1—Managing in Turbulent Times
TRUE/FALSE
1. The nature of management is to control and dictate others in an organization.
2. In today’s turbulent and hypercompetitive global environment, managers must help their companies
innovate more than ever.
3. The late famed management theorist Peter Drucker is often credited with creating the modern study of
management.
4. Managers get things done by coordinating and motivating other people.
5. The attainment of organizational goals through planning, organizing, leading and controlling reflects
the essence of the management process.
6. Where the organization wants to be in the future and how to get there defines controlling.
7. Organizing means defining goals for future organizational performance and deciding on the tasks and
resources needed to attain them.
8. Leading is the use of influence to motivate employees to achieve organizational goals.
9. The use of influence to motivate employees to achieve organizational goals defines organizing.
10. How an organization goes about accomplishing a plan is a key part of the management function of
controlling.
11. Using influence to motivate employees describes the management function of leading.
12. The use of influence to motivate employees to achieve the organization’s goals refers to controlling.
13. Organizing means creating a shared culture and values.
14. Controlling involves monitoring employee’s activities and taking corrective action as necessary.
15. An organization is a social entity that is goal directed and deliberately structured.
16. In the definition of an organization, deliberately structured means being made up of two or more
people and designed to achieve some outcomes.
17. Efficiency refers to the degree to which the organization achieves a stated objective.
18. Efficiency can be calculated as the amount of resources used to produce a product or service.
19. To perform effectively, all managers must possess conceptual, human, and technical skills, though the
degree of each skill necessary at different levels of an organization may vary.
20. All managers have to pay attention to costs and according to research, the best way to improve
organizational effectiveness is by severe cost cutting.
21. Only the top managers in organizations need conceptual skills since it involves planning.
22. Technical skills are most important at lower organizational levels while human skills become more
important as managers move up the organizational hierarchy.
23. One of the biggest mistakes during turbulent times is managers’ failure to comprehend and adapt to the
rapid pace of change in the world around them.
24. Managers use conceptual, human, and technical skills to perform the four management functions of
planning, organizing, leading, and controlling in all organizations.
25. According to research, managers most enjoy activities such as leading others, networking, and leading
innovation.
26. Managers least enjoy activities such as controlling subordinates and managing time pressures.
27. The individual performer is a generalist and coordinates a broad range of activities.
28. The manager is a specialist and a “doer.”
29. Becoming a successful manager means thinking in terms of building teams and networks, becoming a
motivator and organizer within a highly interdependent system of people and work.
30. Spotlight on Skills box in Chapter 1 asks you to consider issues such as the increased workload and the
challenge of supervising former peers to help you decide if you really want to become a manager.
31. Managerial activity is often characterized by routine, continuity, and lengthy time-frame.
32. A manager forwards information to other organization members in the disseminator role.
33. In the spokesperson role, a manager forwards information to other organization members.
34. The interpersonal roles performed by managers include figurehead, leader, and liaison.
35. The informational roles that managers perform include monitor, disseminator, and spokesperson.
36. The monitor role involves the initiation of change.
37. In the figurehead role, the manager performs ceremonial and symbolic duties.
38. The disturbance handler role involves the initiation of change, thinking about the future and how to get
there.
39. Fortunately for managers, the disseminator and spokesperson roles are identical.
40. Managers in small businesses tend to emphasize roles different from those of managers in large
corporations.
41. Not-for-profit organizations, such as The Red Cross and the Girl Scouts, represent a major application
of management talent.
42. We might expect managers in nonprofit organizations to place more emphasis on the roles of
spokesperson, leader, and resource allocator.
43. Managers in not-for-profit organizations, according to research, should place less emphasis on the
roles of spokesperson, leader, and resource allocator.
44. One of the most striking changes affecting organizations and management is technology.
45. In the new workplace, the valued worker is one who learns quickly, shares knowledge, and is
comfortable with risk, change, and ambiguity.
46. The primary characteristic of the new workplace is that it is centered on loyal and homogeneous
employees.
47. The new workplace is organized around networks rather than rigid hierarchies, and work is often
virtual.
48. Organizations are increasingly shifting significant chunks of what were once considered core functions
to outsiders via outsourcing, joint ventures, and other complex alliances.
49. In the new workplace, managers should focus on developing teamwork, collaboration, and learning.
50. Success in the new workplace depends on the strength and quality of independent employees.
51. Organizations are learning to value stability and efficiency over change and speed because of changes
in technology, globalization, and diversity.
52. Companies can survive over the long run without innovation as long as they are successful imitators.
53. Despite the need for companies to control costs in today’s economy, innovation has become the new
imperative.
54. Recognizing the value of employees involves the organizing role of management.
55. Resources such as efficiency and effectiveness are used by managers to attain organizational goals.
56. Allocating resources across the organization is part of the organizing management function.
57. An important phase within the controlling function of management is making corrections when
necessary.
58. By calculating the amount of resources used to produce a single automobile at a manufacturing plant,
managers are determining organizational effectiveness.
59. The ultimate responsibility of managers is to achieve high performance by balancing efficiency and
effectiveness.
60. The majority of business failures are the result of poor human skills.
61. Most top executives routinely work at least 12 hours a day and spend 50 percent or more of their time
traveling.
62. Customer relationship management systems collect and manage large amounts of data about customers
and make them available to employees.
63. The sequence of suppliers and purchasers, covering all stages of processing from obtaining raw
materials to distributing finished goods to consumers is referred to as CRM.
64. Outsourcing refers to contracting out selected functions or activities to other organizations that can do
the work more cost-efficiently.
65. A process whereby companies find out how others do something better than they do and then try to
imitate or improve on it refers to outsourcing.
66. Kaizen refers to an innovation mindset, used widely by Indian companies, that strives to meet
customers’ immediate needs quickly and inexpensively.
67. The changing attitudes, ideas, and values of Generation Y employees is an example of a social force.
68. Scientific management evolved with the use of precise procedures in place of tradition and rules of
thumb.
69. A criticism of human relations management is that it ignores the social context and workers’ needs.
70. The Hawthorne studies resulted in the movement towards scientific management.
71. The human relations movement is also referred to as the dairy farm view of management, meaning that
contented cows give more milk, and satisfied workers will give more work.
72. The acceptance theory of authority states that people have free will and can choose whether to follow
management orders.
73. An assumption of Theory Y is that the average human being has an inherent dislike of work and will
avoid it if possible.
74. The management science approach uses qualitative data in management decision making.
75. Contingency thinking is the ability to see both the distinct elements of a system or situation and the
complex and changing interaction among those elements.
76. Discerning circles of causality is an important element of systems thinking.
77. Although developed by a Japanese business manager, the quality movement is strongly associated with
American companies.
MULTIPLE CHOICE
1. The nature of management is to cope with ____ and far-reaching challenges.
a.
simple
b.
planned
c.
diverse
d.
organized
e.
controlled
2. Without ____, no company can survive over the long run.
a.
cost-cutting
b.
outsourcing
c.
command-and-control approach
d.
total quality teamwork
e.
innovation
3. One of the important ideas in the text’s definition of management is
a.
the management functions of planning, organizing, leading, and controlling.
b.
the attainment of societal goals.
c.
effectiveness is more important than efficiency.
d.
management is unique to for-profit organizations.
e.
efficiency is more important than effectiveness.
4. When senior managers at Gap, Inc. decided to become the number one service-quality clothing
company in the world, they were engaging in the management function of
a.
planning.
b.
organizing.
c.
leading.
d.
controlling.
e.
dreaming.
5. Selecting goals and ways to attain them refers to
a.
controlling.
b.
planning.
c.
organizing.
d.
staffing.
e.
leading.
6. Which of these can best describe organizing?
a.
Assigning responsibility for task accomplishment.
b.
Using influence to motivate employees.
c.
Monitoring activities and making corrections.
d.
Selecting goals and ways to attain them.
e.
None of these.
7. Which of the following is not a function of management?
a.
Plan
b.
Control
c.
Organize
d.
Lead
e.
Performance
8. How an organization goes about accomplishing a plan is a key part of the management function of
a.
planning.
b.
organizing.
c.
leading.
d.
controlling.
e.
motivating.
9. When Terry Doyle of CommuniCom, Inc. created smaller, more independent maintenance units, he
was performing the function of
a.
controlling.
b.
human relations skills.
c.
leading.
d.
organizing.
e.
resourcing.
10. Using influence to motivate employees describes which of these functions?
a.
Controlling
b.
Planning
c.
Leading
d.
Monitoring
e.
Organizing
11. Which of these is the use of influence to motivate employees to achieve organizational goals?
a.
Leading
b.
Controlling
c.
Organizing
d.
Planning
e.
Staffing
12. Amanda Rowley, President of Autos-R-Us, recognizes the factory employees for their outstanding
performance at the monthly awards banquet on the shop floor by presenting a plaque and a check for
$100. She is engaging in the management function of
a.
bribery.
b.
organizing.
c.
technical skills.
d.
leading.
e.
controlling.
13. Monitoring activities and making corrections are part of
a.
organizing.
b.
planning.
c.
leading.
d.
staffing.
e.
controlling.
14. Tool Techies, Inc. uses phone surveys of customers to gather information about service and quality.
This is an example of the management function of
a.
planning.
b.
technical skills.
c.
organizing.
d.
controlling.
e.
conceptual skills.
15. ____ is the management function concerned with monitoring employees’ activities, keeping the
organization on track toward its goals, and making corrections as needed.
a.
Planning
b.
Resource allocation
c.
Controlling
d.
Organizing
e.
Efficiency
16. When Troy measures his employees’ performance and compares their performance against the goals he
set for them, he is performing which of these functions?
a.
Staffing
b.
Leading
c.
Organizing
d.
Controlling
e.
Planning
17. A social entity that is goal directed and deliberately structured is referred to as a(n)
a.
organization.
b.
management.
c.
employee.
d.
student.
e.
task.
18. The degree to which an organization achieves a stated goal refers to
a.
effectiveness.
b.
synergy.
c.
conceptual skill.
d.
efficiency.
e.
human skill.
19. Which of the following refers to the amount of resources used to achieve an organization’s goal?
a.
Effectiveness
b.
Synergy
c.
Performance
d.
Efficiency
e.
Management
20. For a widget manufacturing company, worker-hours per widget is a measure of
a.
organizational effectiveness.
b.
organizational performance.
c.
organizational efficiency.
d.
organizational structure.
e.
none of these.
21. Conceptual, human, and technical skills are important to which managerial level?
a.
Top managers
b.
Middle managers
c.
First-line managers
d.
Non managers
e.
All of these
22. ____ are most important at the top management level.
a.
Conceptual skills
b.
Human skills
c.
Technical skills
d.
Project skills
e.
All of these
23. The biggest mistake that many managers make is the failure to ____.
a.
clarify direction
b.
communicate effectively
c.
display compassion to employees
d.
create employee recognition programs
e.
focus on productivity
24. Critical management missteps include:
a.
poor communication skills
b.
reactionary behavior
c.
inability to build a team
d.
failure to adapt
e.
all of these
25. According to the text, what are the skills used by managers when performing the four functions of
management?
a.
Conceptual, interpersonal, and organizational
b.
Functional, problem-solving, and technical
c.
Analytical, interpersonal, and financial
d.
Conceptual, human, and technical
e.
Communication, strategic, and innovative
26. One of the things managers enjoy doing the most is:
a.
financial planning
b.
controlling activities
c.
planning for future decisions
d.
leading others
e.
hiring new employees
27. Research shows that managers enjoy all of the following except:
a.
networking
b.
innovation
c.
leading others
d.
managing time
e.
all of these
28. Of all management duties, one of the things managers like the least is:
a.
financial planning
b.
controlling activities
c.
planning for future decisions
d.
handling paperwork
e.
networking
29. The individual performer is a(n) ____; whereas, the manager has to be a(n) ____.
a.
specialist; generalist
b.
“leader”; doer
c.
generalist; specialist
d.
producer; expert
e.
communicator; operator
30. The individual identity includes which of the following?
a.
Generalist, coordinates diverse tasks
b.
Gets things done through others
c.
Works relatively independently
d.
A network builder
e.
Works in highly interdependent manner
31. Which of the following includes the manager identity?
a.
Specialist, performs specific tasks
b.
Gets things done through own efforts
c.
An individual actor
d.
A network builder
e.
Works relatively independently
32. Being a successful manager means thinking in terms of all of the following, except:
a.
building teams.
b.
generating the most profit.
c.
becoming a motivator.
d.
becoming an organizer.
e.
establishing networks.
33. Spotlight on Skills in Chapter 1 outlines all of the following issues would-be managers should consider
except:
a.
The increased workload
b.
The challenge of supervising former peers
c.
The headache of responsibility for other people
d.
Being caught in the middle
e.
The technical aspects of management
34. According to the Spotlight on Skills in Chapter 1, before becoming a manager, would-be managers
should consider which of the following:
a.
time for the increased workload
b.
challenge of supervising former peers
c.
the responsibility of managing others
d.
being caught in the middle
e.
all of these
35. Managers shift gears quickly and therefore, the average time spent on any one activity is less than
____.
a.
nine minutes
b.
an hour
c.
one workday
d.
a half hour
e.
a half day
36. Which of the following is not one of the conceptual categories of managerial roles Mintzberg defined?
a.
informational
b.
interpersonal
c.
decisional
d.
intrapersonal
e.
all of these are managerial roles defined by Mintzberg
37. Which of the following is an informational role, according to Mintzberg?
a.
Entrepreneur role
b.
Leader role
c.
Monitor role
d.
Disturbance handler role
e.
Figurehead role
38. Gail Griffith, manager of the finance division, distributes relevant information everyday to all her
employees enabling them to make quality decisions. Gail is performing which of the following roles?
a.
Monitor role
b.
Disseminator role
c.
Spokesperson role
d.
Disturbance handler role
e.
Figurehead role
39. The president of Pepsi Company is the keynote speaker at a retirement dinner for a long time bottler.
This is an example of which of the following roles?
a.
Liaison role
b.
Figurehead role
c.
Negotiator role
d.
Leader role
e.
Monitor role
40. According to Mintzberg, when Amanda attends a subordinate’s wedding she is performing which of
these roles?
a.
Monitoring
b.
Figurehead
c.
Spokesperson
d.
Leader
e.
Liaison
41. If Bradley Hak is responsible for maintaining information links both inside and outside organizations
by using mail, phone calls, and conducting meetings as daily activities, he would be considered a
a.
figurehead.
b.
liaison.
c.
negotiator.
d.
monitor.
e.
spokesperson.
42. Which of the following is not a decisional role?
a.
Entrepreneur
b.
Negotiator
c.
Resource allocator
d.
Disturbance handler
e.
Liaison
43. The ____ role involves resolving conflicts among subordinates between the managers department and
other departments.
a.
resource allocator
b.
entrepreneur
c.
negotiator
d.
liaison
e.
disturbance handler
44. According to Mintzberg, which of these is an interpersonal role?
a.
Monitor
b.
Negotiator
c.
Liaison
d.
Disturbance handler
e.
Spokesperson
45. Maintaining information links are the activities consistent with the ____ role.
a.
leader
b.
spokesperson
c.
monitor
d.
liaison
e.
entrepreneur
46. Which of the following roles involve bargaining with others to meet the unit or departmental goals?
a.
Negotiator
b.
Resource allocator
c.
Figurehead
d.
Monitor
e.
Leader
47. If a manager finds a severe decline in employee morale and direction, they may need to spend more
time in the ____ role.
a.
negotiator
b.
resource allocator
c.
figurehead
d.
monitor
e.
leader
48. What is the role of the liaison?
a.
The liaison role pertains to decisions about how to allocate people, time, equipment,
money, and other resources to attain desired outcomes.
b.
The liaison role involves the initiation of change.
c.
The liaison role pertains to the development of information sources both inside and outside
the organization.
d.
The liaison role involves handling ceremonial and symbolic activities for the department
or organization.
e.
The liaison role involves formal negotiations and bargaining to attain outcomes for the
manager’s unit of responsibility.
49. What is the role of the negotiator?
a.
The negotiator role involves formal negotiations and bargaining to attain outcomes for the
manager’s unit of responsibility.
b.
The negotiator role involves seeking current information from many sources.
c.
The negotiator role involves the initiation of change.
d.
The negotiator role involves resolving conflicts among subordinates or between the
manager’s department and other departments.
e.
The negotiator role pertains to the development of information sources both inside and
outside the organization.
50. If a manager finds several new competitors on the horizon, they may need to spend more time in which
role?
a.
Negotiator
b.
Resource allocator
c.
Figurehead
d.
Monitor
e.
Leader
51. To meet the needs of the organization, all managers carry out the three major categories of roles. They
are: ____, ____, and ____ roles.
a.
monitor, figurehead, and liaison
b.
leader, monitor, and spokesperson
c.
disseminator, entrepreneurial, and disturbance handler
d.
decisional, spokesperson, and leader
e.
informational, interpersonal, and decisional
52. Since not-for-profit organizations do not have a conventional ____, managers may struggle with the
question of what constitutes results and effectiveness.
a.
hierarchy
b.
bottom line
c.
information system
d.
decision-making process
e.
structure
53. A manager in for-profit business focuses primarily on ____, while a manager of a non-profit focuses
on ____.
a.
the bottom-line, employee morale
b.
the bottom-line, social impact
c.
profitability, customer satisfaction
d.
market share, the bottom-line
e.
customer satisfaction, organization reputation
54. One of the roles that a small business manager may emphasize over their counterpart in a large
organization is ____.
a.
information processing
b.
spokesperson
c.
liaison
d.
resource allocator
e.
leader
55. In the new workplace, work is ____, in contrast to the old workplace where work was ____.
a.
flexible; diverse
b.
mechanical; flexible
c.
flexible; structured
d.
autocratic; structured
e.
calm; flexible
56. The benefits of using interim managers include:
a.
an organization’s use of specialist skills
b.
no long-term commitment for the organization
c.
the manager has some flexibility
d.
the manager faces new and interesting challenges
e.
all of these