268. Which of the following is a clear performance standard?
269. Two years ago, Travis started his own restaurant supply company, serving the greater
Chicago area. Until recently, he has never concerned himself with establishing a formal control
system. Now, with a recession looming, he is experiencing cost-conscious restaurant owners. He
has decided that a formal control system is needed. The first step Travis should take is:
270. Idle Time Gaming, Inc., has established clear standards of performance for its latest video
game that will involve physical challenges such as hand-eye coordination and the player’s ability
to react quickly. After a significant amount of testing, the results are compared to the previously
established development standards. If necessary, the engineering team will correct deficiencies
before customers test the game. These activities are part of the _____________ of management.
271. As a middle manager for her firm, Tori just finished comparing the results of a
promotional campaign with the outcome expectations. The next step in the control process is:
272. Harper is a sales rep for an eyeglass company. The company is always on the cutting
edge of trendy designs. In her job, she frequently relies on the marketing department to provide
her with information and materials. When using customer satisfaction to judge the success of
their company, Harper’s managers should:
273. Customers who shop on Amazon find it helpful to read the customer reviews associated
with products that others have purchased. After making a purchase, the customer can go to
Amazon’s website and post his/her opinion of the product recently purchased. This strategy not
only assists other customers with their decision making, it helps Amazon react more quickly to
the performance of the products it sells. Which of the following statements attests to the value of
this service?
274. When establishing criteria to measure the success of a customer-oriented business,
managers should:
Mini-Case
Lauzy Fare left his position as senior vice president at Blue Skies Electronics a few weeks ago to
become the new CEO of Idle Time Gaming. Before joining the new company, Lauzy spent time
studying Idle Time’s competitive position and talking to employees in all divisions and at all levels
of the organization. Based on his findings, Lauzy believes that Idle Time has potential, but also
faces some serious challenges if it expects to grow.
Lauzy found that when confronted by him, most of Idle Time’s professional employees seemed
almost afraid to express their opinions. He learned that Otto Craddick, the previous CEO and
founder of the company, viewed himself as the boss, and, as such, micromanaged every aspect of
the business. This discouraged employees from using their own initiative and ideas to solve
problems. For example, Otto required sales and service representatives to get his approval before
they made any major commitments to customers. Otto’s policy prevented the organization from
responding quickly to customer requests, so sales were lost. Unlike his predecessor, Lauzy
believes it is important for sales and service personnel to be able to deal with many types of
customer requests without needing approval from top management. He is confident that giving
employees the authority and flexibility to deal with customers, and providing them with the
training and resources to help them do so, will improve morale within the company, create
customer satisfaction, and grow revenues.
Lauzy also wants to make workers throughout the organization feel more appreciated. He plans
to continue meeting with them on a regular basis to seek their advice. He hopes his work
colleagues will eventually respond to his leadership style. He has already encouraged middle
managers to get employees more involved in decision making, and has suggested some problem–
solving techniques the managers could try.
Although he thought that changing the rigidity of the company culture would be his first challenge
at the new firm, Lauzy quickly realized that there were no standards in place to measure the
progress of changes in internal morale, customer satisfaction, and profitability. He has asked
managers in those departments to spend more time setting performance standards and then
monitoring actual performance. Lauzy is confident that in a relatively short period of time internal
changes will lead to good company performance. As a member of top management, Lauzy
performs a variety of important tasks.
275. Otto, the previous CEO at Idle Time Gaming, relied on a(n) ___________ style of
management.
276. Lauzy seems to prefer a(n) __________ style of leadership.
277. Lauzy favors problem-solving techniques that allow teams of workers to freely identify
and discuss possible solutions to a problem without having their ideas censored. Which of the
following is a problem-solving technique that Lauzy is likely to suggest to his managers?
278. Lauzy’s decision to establish well-defined standards for monitoring performance means
that he expects management to seriously engage in the _________ function of management.
279. Which of the following statements best describes the relative importance of the various
types of skills Lauzy will use to perform these tasks? The tasks Lauzy performs will require:
280. Identify and define the four key functions of management.
281. Explain the differences between strategic, tactical, operational, and contingency
planning.
282. What is the purpose of the SWOT analysis? What types of information does this analysis
provide?
283. What is empowerment? How has the movement toward empowerment changed the role
of the manager?
284. Describe the three basic types of management skills, and relate these skills to the tasks
performed by different levels of management.
285. Describe three different leadership styles and give an example of a situation in which
each style could be most used effectively.