Chapter 1—Innovative Management for a Changing World
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. Companies can survive over the long run without innovation.
4. Despite the need for companies to control costs in today’s economy, innovation has become the new
imperative.
5. Recognizing the value of employees involves the organizing role of management.
6. The late famed management theorist Peter Drucker is often credited with creating the modern study of
management.
7. Allocating resources across the organization is part of the organizing management function.
8. How an organization goes about accomplishing a plan is a key part of the management function of
controlling.
9. Where the organization wants to be in the future and how to get there defines controlling.
10. The use of influence to motivate employees to achieve the organization’s goals refers to controlling.
11. Organizing means defining goals for future organizational performance and deciding on the tasks and
resources needed to attain them.
12. Controlling involves monitoring employee’s activities and taking corrective action as necessary.
13. Leading is the use of influence to motivate employees to achieve organizational goals.
14. When an organization is deliberately structured, it is designed to achieve some outcome, such as
making a profit.
15. An organization is a social entity that is goal directed and deliberately structured.
16. Efficiency refers to the degree to which the organization achieves a stated objective.
17. All managers have to pay attention to costs and according to research, the best way to improve
organizational effectiveness is by severe cost cutting.
18. The ultimate responsibility of managers is to achieve high performance by balancing efficiency and
effectiveness.
19. Efficiency can be calculated as the amount of resources used to produce a product or service.
20. 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.
21. Only the top managers in organizations need conceptual skills since it involves planning.
22. A manager’s ability to work with and through other people and to work effectively as a group member
is called human skills.
23. Technical skills are most important at lower organizational levels while conceptual skills become more
important as managers move up the organizational hierarchy.
24. 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.
25. The ability to motivate others is considered a technical management skill.
26. Managers use conceptual, human, and technical skills to perform the four management functions of
planning, organizing, leading, and controlling in all organizations.
27. Middle managers are responsible for setting organizational goals, defining strategies for achieving
them, and making decisions that affect the entire organization.
28. Facilitating individual employee performance is an important role for top managers.
29. Juan, as a division manager, is generally concerned with the near future and is expected to establish
good relationships with peers around the organization, encourage teamwork, and resolve conflicts.
Juan can be described as a middle manager.
30. A human resource manager would be considered a staff manager.
31. Antonio is head of the advertising department at Terrific Tortillas Inc. He can be described as a general
manager.
32. First line managers are the managers who have the responsibility for making the significant strategic
policy decisions, often with staff managers assisting them in these decisions.
33. Staff managers are responsible for the manufacturing and marketing departments that make or sell the
products or services.
34. According to research, managers most enjoy activities such as leading others, networking, and leading
innovation.
35. Manager least enjoy activities such as controlling subordinates and managing time pressures.
36. The individual performer is a generalist and coordinates a broad range of activities.
37. 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.
38. Most top executives routinely work at least 12 hours a day and spend 50 percent or more of their time
traveling.
39. A manager forwards information to other organization members in the disseminator role.
40. In the spokesperson role, a manager forwards information to other organization members.
41. The informational roles that managers perform include monitor, disseminator, and spokesperson.
42. In the figurehead role, the manager performs ceremonial and symbolic duties.
43. The disturbance handler role involves the initiation of change, thinking about the future and how to get
there.
44. In a monitor role, the manager trasmits current information to others, both outside and inside the
organization.
45. Managers in small businesses tend to emphasize roles different from those of managers in large
corporations.
46. Not-for-profit organizations, such as The Red Cross and the Girl Scouts, represent a major application
of management talent.
47. We might expect managers in nonprofit organizations to place more emphasis on the roles of
spokesperson, leader, and resource allocator.
48. The rise of virtual work has led to a decline in organizational hierarchies.
49. Technological advances have resulted in employees becoming more empowered.
50. Today’s managers rely on “management by keeping tabs” and play the role of a controller instead of
an enabler.
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. _____ has become the new imperative, despite the need for companies to control costs in today’s
economy.
a.
Technology
b.
Outsourcing
c.
Innovation
d.
Communication
e.
Delegation
3. 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
4. With its “community of interest” in a pre-Facebook era, the Grateful Dead band’s ability to _____ is a
principle factor for its success over several decades.
a.
innovate
b.
communicate
c.
generate revenue
d.
compete
e.
monitor
5. Regina, owner and operator of a small restaurant, believes that her most important task as manager is
establishing goals for the restaurant and deciding what must be done to achieve them. This involves
which aspect of what managers do?
a.
Organizing
b.
Motivating and communicating
c.
Measuring
d.
Developing people
e.
Setting objectives
6. 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.
7. 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
8. Which of the following is a function of management?
a.
Human resources
b.
Raw materials
c.
Efficiency
d.
Planning
e.
Effectiveness
9. Robert, a top-level manager at an advertising agency, spends a significant part of his work day
identifying goals for future organizational performance and deciding how to use resources to attain
these goals. This involves which management function?
a.
Controlling
b.
Leading
c.
Organizing
d.
Planning
e.
Delegating
10. Selecting goals and ways to attain them refers to _____.
a.
controlling
b.
planning
c.
organizing
d.
staffing
e.
leading
11. 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
12. Which of the following is not a function of management?
a.
Plan
b.
Control
c.
Organize
d.
Lead
e.
Performance
13. 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
14. 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
15. 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
16. 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
17. Monitoring activities and making corrections are part of:
a.
organizing.
b.
planning.
c.
leading.
d.
staffing.
e.
controlling.
18. 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.
19. _____ 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
20. 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
21. 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.
22. By definition, an organization is considered _____ because it is made up of two or more people.
a.
efficient
b.
a social entity
c.
effective
d.
goal-directed
e.
deliberately structured
23. The degree to which an organization achieves a stated goal refers to:
a.
effectiveness.
b.
synergy.
c.
conceptual skill.
d.
efficiency.
e.
human skill.
24. 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
25. 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.
26. Jessica was recently praised by her supervisor for displaying superior customer service during an
encounter with a problem customer. This is an example of organizational:
a.
information processing.
b.
efficiency.
c.
effectiveness.
d.
structure.
e.
goal-setting.
27. Stefan, a supermarket cashier, recently received an award for having the highest scan rate among all
cashiers. This is an example of organizational:
a.
performance.
b.
efficiency.
c.
effectiveness.
d.
structure.
e.
goal-setting.
28. 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
29. _____ skills is the cognitive ability to see the organization as a whole and the relationship among its
parts.
a.
Human
b.
Resource allocation
c.
Conceptual
d.
Negotiation
e.
Technical
30. Within her role as a small business consultant, Alexa analyzes how organizations fit into their
industries, the communities, and the broader social environment. This type of analysis involves which
management skill?
a.
Organizing
b.
Technical
c.
Human
d.
Conceptual
e.
Delegation
31. _____ are most important at the top management level.
a.
Conceptual skills
b.
Human skills
c.
Technical skills
d.
Project skills
e.
All of these
32. A manager’s _____ skill is demonstrated in the way a manager relates to other people.
a.
conceptual
b.
human
c.
technical
d.
leading
e.
controlling
33. Sabrina recently helped her subordinates at work resolve an interpersonal conflict by listening to the
problem and serving as a mediator. This is an example of use of which management skill?
a.
Human
b.
Strategic
c.
Technical
d.
Conceptual
e.
Analytical
34. Which of the following skill is the manager’s ability to work with and through other people and to
work effectively as a group member?
a.
Human
b.
Conceptual
c.
Technical
d.
Intellectual
e.
Planning
35. Which skill includes specialized knowledge and analytical ability?
a.
Conceptual
b.
Human
c.
Technical
d.
Controlling
e.
Planning
36. Which of the following is most important at lower organizational levels?
a.
Planning skills
b.
Human skills
c.
Conceptual skills
d.
Technical skills
e.
None of these
37. _____ is the understanding of and proficiency in the performance of specific tasks.
a.
Human skill
b.
Conceptual skill
c.
Interpersonal skill
d.
Technical skill
e.
Leadership skill
38. 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.
39. Which of the following are responsible for the entire organization?
a.
Top managers
b.
Middle managers
c.
First-line managers
d.
Controlling managers
e.
Organizing managers
40. What is the main concern of first-level managers?
a.
Monitoring the external environment and determining the best strategy to be competitive
b.
Putting top management plans into action across the organization
c.
Allocating resources and coordinating teams
d.
Linking groups of people
e.
Facilitating individual performance
41. Sally is vice president of administration at a large non-profit charity for animals. She most likely falls
within which management level?
a.
CEO
b.
Line employee
c.
Staff manager
d.
Top manager
e.
Middle manager
42. The most important responsibilities for _____ managers include communicating a shared vision for the
organization and shaping corporate culture.
a.
top
b.
middle
c.
first-line
d.
leading
e.
organizing
43. Marley is the executive director of the local Community for Critters. Her level in the management
hierarchy is that of a(n):
a.
first-line manager.
b.
middle manager.
c.
top manager.
d.
consultant.
e.
operative.
44. Consider the following three managers from Outrageous Outfitters, Inc. Tiffany Blanchard is the
president, Timothy Thompson is the director of marketing, and Karen Baxter is a maintenance
supervisor. Which of the following statements is true?
a.
Karen Baxter does more planning than Tiffany Blanchard.
b.
Timothy Thompson does more leading than Karen Baxter.
c.
Tiffany Blanchard does more controlling than Timothy Thompson.
d.
Tiffany Blanchard does more planning than Karen Baxter.
e.
None of these.
45. Donna Hyde is the head of the finance department at Muumuu Manufacturing, Inc. Her level in the
management hierarchy is that of a(n):
a.
first-line manager.
b.
middle manager.
c.
top manager.
d.
chief executive officer.
e.
operative.
46. Patty Rohrer is the director of human resources at Pet Grooming, Inc. She can be best described as a:
a.
top level manager.
b.
project manager.
c.
general manager.
d.
first-line manager.
e.
functional manager.
47. _____ managers are responsible for departments that perform a single functional task and have
employees with similar training and skills.
a.
Top
b.
Middle
c.
First-line
d.
Bottom
e.
Functional
48. Kyle Erckard, manager of the jewelry division of a major dept. store, coordinated the work of several
people across several departments to accomplish a $500,000 fundraising for an animal shelter. He can
best be described in his fundraising activities as a(n):
a.
top manager.
b.
middle manager.
c.
project manager.
d.
first-line manager.
e.
operative manager.
49. Which of the following best describes Terrance’s position as a project manager?
a.
He is responsible for several departments that perform different functions.
b.
He is required to have significant human skills.
c.
He is responsible for self-contained division and all the departments within it.
d.
He supervises employees with similar training and skills.
e.
All of these.
50. Temporary management professionals responsible for a temporary work project that involves the
participation of people from various functions and levels of the organization are called _____.
a.
middle managers
b.
project managers
c.
interim managers
d.
first line managers
e.
functional managers
51. Calvin Strine is the office manager of a local accounting firm. His level in the management hierarchy
is that of a(n):
a.
first-line manager.
b.
middle manager.
c.
top manager.
d.
consultant.
e.
operative.