CHAPTER 1 TEST REVIEW

Which of the following is a benefit of planning? a. It helps managers recognize their own weaknesses. b. It helps managers understand the relationships among employees. c. It helps managers better manage the weaknesses of employees. d. It helps managers know how to allocate their time and resources. e. It helps managers track the progress toward set goals.

It helps managers know how to allocate their time and resources. **Rationale: An organization's goals and plans clearly help managers know how to allocate their time and resources. In its simplest form, planning means setting an organization's goals and deciding how best to achieve them.

Who among the following is an example of a yuppie?

Jose, who graduated in 1986 and now works in a multinational company. **Rationale: During the 1980s, those entering the workforce cam to be called yuppies, slang for "young urban professionals." These individuals were highly motivated by career prospects, sought employment with big corporations, and often were willing to make work their highest priority.

Which of the following statements BEST reflects the relationship between management and leadership? a. Management and leadership are the same thing. b. Management is only one part of leadership. c. Leadership and management are unrelated concepts. d. Both leadership and management are part of controlling. e. Leadership is only one part of management.

Leadership is only one part of management **Rationale: The third basic managerial function is leading. Some people consider leading to be both the most important and the most challenging of all managerial activities.

Which of the following is an activity associated with the management function of controlling? a. Setting a goal to increase sales 25 percent next quarter. b. Deciding to buy ten new robots to weld auto bodies. c. Reviewing yesterday's production reports. d. Arranging units in an organization according to function. e. Choosing between two alternative communication systems.

Reviewing yesterday's production reports **Rationale: The final phase of the management process is controlling, or monitoring the organization's progress toward its goals. As the organization moves toward its goals, managers must monitor progress to ensure that it is performing in such a way as to arrive at its "destination" at the appointed time.

Which of the following is an activity associated with the management function of controlling?

Reviewing yesterday's production reports. **Rationale: The final phase of the management process is controlling, or monitoring the organization's progress toward its goals. As the organization moves toward its goals, managers must monitor progress to ensure that it is performing in such a way as to arrive at its "destination" at the appointed time.

Which of the following is an advantage of hiring retirees in an organization? a. The organization attains new skillsets. b. The organization will not have to train them. c. The organization gains employees for permanent projects. d. The organization does not have to pay retirees any wages. e. The organization gets the expertise of skilled workers.

The organization gets the expertise of skilled workers **Rationale: Some organizations have found retirees to be excellent part-time and temporary employees. By hiring retirees, an organization gets the expertise of skilled workers, and the individuals get extra income and an opportunity to continue to use their skills.

Which of the following is an advantage of hiring retirees in an organization?

The organization gets the expertise of skilled workers. **Rationale: Some organizations have found retirees to be excellent part-time and temporary employees. By hiring retirees, an organization gets the expertise of skilled workers, and the individuals get extra income and an opportunity to continue to use their skills.

Management can best be defined as ____. a. making the right decisions and successfully implementing them b. The ability to be reliable and complete all tasks in a timely manner c. the set of processes used to get members of the organization to work together d. people working together to achieve a set of goals e. achieving organizational goals in an efficient and effective manner

achieving organizational goals in an efficient and effective manner **Rationale: Management can be defined as a set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization's resources (human, financial, physical, and information), with the aim of achieving organizational goals in an efficient and effective manner.

Which of the following is an example of a physical resource needed to operate the company that produces Kenny's Cajun Popcorn, a "low-calorie snack with a high-voltage flavor"?

an industrial-size popcorn popper **Rationale: All organizations use four basic kinds of resources from their environment: human, financial, physical, and information. Physical resources include raw materials, office and production facilities, and equipment.

Ramon is a public relations manager. He manages the image of the company by responding to interview requests and promoting the good work the company and employees do. His most important skills are his ____ skills.

communication **Rationale: Communication skills refer to the manager's abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others. In addition, communication skills help the manager listen to what others say and to understand the real meaning behind emails, letters, reports, and other written communication.

Ramon is a public relations manager. He manages the image of the company by responding to interview requests and promoting the good work the company and employees do. His most important skills are his ____ skills. a. communication b. technical c. conceptual d. interpersonal e. decision-making

communication **Rationale: Communication skills refer to the manager's abilities both to effectively convey ideas and information to others and to effectively receive ideas and information from others. In addition, communication skills help the manager listen to what others say and to understand the real meaning behind emails, letters, reports, and other written communication.

When the right decisions are made and implemented, The Management Process (What do Managers Do?) is considered to be ____. a. efficient b. effective c. centralized d. controlled e. complete

effective **Rationale: A management process is considered to be effective when the right decisions are made and implemented.

Which of the following means making the right decisions and then successfully implementing them?

effectiveness **Rationale: By effective, we mean making the right decisions and successfully implementing them

Which of the following means making the right decisions and then successfully implementing them? a. efficiency b. controlling c. leading d. pervasiveness e. effectiveness

effectiveness **Rationale: By effective, we mean making the right decisions and successfully implementing them.

Which of the following roles is categorized as decisional? a. entrepreneur b. spokesperson c. leader d. disseminator e. monitor

entrepreneur **Rationale: Research has identified four decisional roles. First, the manager has the role of entrepreneur, the voluntary initiator of change.

Raj is a plant manager for Bell Electronics. This morning he presented two retiring employees with certificates of appreciation and gold watches. What managerial role was Raj fulfilling?

figurehead **Rationale: Managers are often required to serve as a figurehead—taking visitors to dinner, attending ribbon-cutting ceremonies, and the like. These activities are typically more ceremonial and symbolic than substantive.

Which of the following roles is categorized as interpersonal?

figurehead **Rationale: The manager is often expected to serve as a figurehead— taking visitors to dinner, attending ribbon-cutting ceremonies, and the like. These activities are typically more ceremonial and symbolic than substantive.

In the National Football League, the ticket revenues are ____ resources. a. informational b. physical c. competitive d. human e. financial

financial **Rationale: All organizations use four basic kinds of resources from their environment: human, financial, physical, and information. Financial resources are the capital used by the organization to finance both ongoing and long-term operations

Bhavik is a new employee, considered to be part of Generation Y. What is he most likely to be attracted to when looking for a job?

flexibility **Rationale: They often seek work in smaller, more entrepreneurial firms that allow flexibility and individuality. They also place a premium on lifestyle preferences, often putting location high on their list of priorities when selecting an employer.

Teresita has several open positions at her firm. What could Teresita's firm offer Millennial candidates to attract them to her firm? a. long term opportunity b. structure c. strong corporate identity d. flexibility in work arrangements e. benefits that include retirement plans

flexibility in work arrangements **Rationale: Generation X, Generation Y, Generation Z, and Millennials, as these groups are called, tend to be less devoted to long-term career prospects and less willing to adapt to a corporate mindset that stresses conformity and uniformity. Instead, they often seek work in smaller, more entrepreneurial firms that allow flexibility and individuality

Teresita has several open positions at her firm. What could Teresita's firm offer Millennial candidates to attract them to her firm?

flexibility in work arrangements **Rationale: Generation X, Generation Y, Generation Z, and Millennials, as these groups are called, tend to be less devoted to long-term career prospects and less willing to adapt to a corporate mindset that stresses conformity and uniformity. Instead, they often seek work in smaller, more entrepreneurial firms that allow flexibility and individuality.

In the Women's National Basketball Association, the coaches, managers, and players are ____ resources.

human **Rationale: All organizations use four basic kinds of resources from their environment: human, financial, physical, and information. Human resources include managerial talent and labor.

Middle managers spend most of their time ____. a. meeting with government officials b. implementing plans of top managers c. convincing customers to buy their items d. managing day-to-day operations e. setting overall company goals

implementing plans of top managers **Rationale: Middle managers are responsible primarily for implementing the policies and plans developed by top managers and for supervising and coordinating the activities of lower-level managers.

In the National Football League, the promotional ads are ____ resources.

informational **Rationale: All organizations use four basic kinds of resources from their environment: human, financial, physical, and information. Information resources are usable data needed to make effective decisions.

Which managerial skill is likely to be especially important to managers who occupy roles such as disturbance handler, negotiator, and resource allocator?

interpersonal **Rationale: Managers spend considerable time interacting with people both inside and outside the organization. For obvious reasons, then, the manager also needs interpersonal skills—the ability to communicate with, understand, and motivate both individuals and groups

What is a characteristic of the art, rather than the science, of management? a. time b. rational thinking c. systems d. logic e. intuition

intuition **Rationale: Even though managers may try to be scientific as often as possible, they must frequently make decisions and solve problems on the basis of intuition, experience, instinct, and personal insights. These are all part of the art of management.

Achieving organizational goals efficiently and effectively ____.

is the primary purpose of The Management Process (What do Managers Do?) **Rationale: The basic purpose of management is to ensure that an organization's goals are achieved in an efficient and effective manner. By efficient, we mean using resources wisely and in a cost-effective way. By effective, we mean making the right decisions and successfully implementing them.

Atmir allows his employees to make decisions that relate to their jobs, with the goal of furthering the interests of the organization. Which management function is Atmir using when he decentralizes the decision-making process?

leading **Rationale: Leading is the set of processes used to get members of the organization to work together to further the interests of the organization. Managers can decentralize many activities so as to put the responsibility for making decisions in the hands of those best qualified to make them.

Atmir allows his employees to make decisions that relate to their jobs, with the goal of furthering the interests of the organization. Which management function is Atmir using when he decentralizes the decision-making process? a. controlling b. planning c. motivating d. organizing e. leading

leading **Rationale: Leading is the set of processes used to get members of the organization to work together to further the interests of the organization. Managers can decentralize many activities so as to put the responsibility for making decisions in the hands of those best qualified to make them.

What is often considered to be the most important and most challenging of all management activities? a. decision making b. planning c. leading d. organizing e. controlling

leading **Rationale: Some people consider leading to be both the most important and the most challenging of all managerial activities. Leading is the set of processes used to get members of the organization to work together to further the interests of the organization.

Which of the following describes any person whose primary responsibility is to carry out The Management Process (What do Managers Do?)? a. manager b. production staff c. executive d. operations e. CEO

manager **Rationale: A manager is someone whose primary responsibility is to carry out The Management Process (What do Managers Do?). In particular, a manager is someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

Many managers are facing an increased work pace, less time to think through a decision, and more information to process. This can all be tied to which contemporary management challenge?

new technology **Rationale: Innovations in technology have increased the work pace for managers, cut into their time for thoughtful contemplation of decisions, and increased the amount of information they must process.

Many managers are facing an increased work pace, less time to think through a decision, and more information to process. This can all be tied to which contemporary management challenge? a. globalization b. social responsibility c. new technology d. diversity e. competition

new technology **Rationale: Innovations in technology have increased the work pace for managers, cut into their time for thoughtful contemplation of decisions, and increased the amount of information they must process.

Which type of managers are concerned with creating and managing the systems that create an organization's products and services? a. production b. operations c. administrative d. marketing e. human resources

operations **Rationale: Operations managers are concerned with creating and managing the systems that create an organization's products and services. Typical responsibilities of operations managers include production control, inventory control, quality control, plant layout, and site selection.

Rajiv just completed a project in which he determined goals for each of his employees and projects, and how best to achieve them. Rajiv is engaged in ____.

planning **Rationale: Planning is the process of setting organizational goals and deciding how best to achieve those goals. The organization's goals and plans help managers know how to allocate their time and resources.

Which of the following correctly lists all of the basic management functions?

planning and decision making, organizing, leading, and controlling **Rationale: The four basic functions of management are planning and decision making, organizing, controlling, and leading. Most managers engage in more than one activity at a time and often move back and forth between the activities in unpredictable ways.

Ramkumar is the head of human resources at a large firm. For the past few years, his firm has had a difficult time hiring and retaining employees. What can Ramkumar do to better attract and retain today's workers?

provide new and different incentives **Rationale: Managers are increasingly faced with the challenge of, first, creating an environment that will be attractive to today's worker and, second, addressing the challenge of providing new and different incentives to keep people motivated and interested in their work. They must build enough flexibility into the organization to accommodate an ever-changing set of lifestyles and preferences.

The fact that managers use four classes of inputs to perform organizational processes suggests that management is best understood from which perspective?

resource-based **Rationale: Although defining the term organization is relatively simple, the concept of management is a bit more elusive. It is perhaps best understood from a resource-based perspective.

The fact that managers use four classes of inputs to perform organizational processes suggests that management is best understood from which perspective? a. a conversion process b. an ineffective process c. resource-based d. not using its environment wisely e. an inefficient process

resource-based **Rationale: Although defining the term organization is relatively simple, the concept of management is a bit more elusive. It is perhaps best understood from a resource-based perspective.

The purpose of planning and decision making is to ____.

serve as a guide for future activities **Rationale: Planning and decision-making help maintain managerial effectiveness by serving as guides for future activities. In other words, the organization's goals and plans clearly help managers know how to allocate their time and resources.

The purpose of planning and decision making is to ____. a. enhance the company's image b. structure the organization for effective goal attainment c. serve as a guide for future activities d. get the members of the organization to work together e. monitor organizational progress

serve as a guide for future activities **Rationale: Planning and decision-making help maintain managerial effectiveness by serving as guides for future activities. In other words, the organization's goals and plans clearly help managers know how to allocate their time and resources.

Apoorva is known to take a very scientific approach to management. When making decision, she seems to be ____. a. subjective b. conceptual c. intuitive d. instinctual e. logical

subjective **Rationale: The science of management approaches problems and issues in ways that are rational, logical, objective, and systematic. Managers can gather data, facts, and objective information.

A ____ is an example of a first-line manager.

supervisor **Rationale: Common titles for first-line managers are supervisor, coordinator, and office manager. Positions like these are often the first held by employees who enter management from the ranks of operating personnel.

Which skills are most important for first-line managers?

technical **Rationale: Technical skills are especially important for first-line managers. These managers spend much of their time training subordinates and answering questions about work-related problems.

The managerial skills least important to a top manager are ____ skills. a. interpersonal b. strategic c. organizational d. conceptual e. technical

technical **Rationale: Technical skills are the skills necessary to accomplish or understand the specific kind of work being done in an organization. Technical skills are especially important for first-line managers.

Which skills are needed to understand or accomplish specialized tasks within an organization?

technical **Rationale: Technical skills are the skills necessary to accomplish or understand the specific kind of work being done in an organization. Technical skills are especially important for first-line managers.

Which of the following acts emphasized the importance of providing equal employment opportunities for people with various impairment? a. the Americans with Disabilities Act b. the Occupational Safety and Health Act c. the Act of Toleration d. the Norris-LaGuardia Act e. the Civil Rights Act of 1964

the Americans with Disabilities Act **Rationale: The passage of the Americans with Disabilities Act brought to the forefront the importance of providing equal employment opportunities for people with various disabilities. As a result, organizations are attracting qualified employees from groups that they may have once ignored.

Which level of management would make the decision to do business with a foreign subsidiary? a. front-line supervisor b. administrative management c. top management d. middle-level marketing management e. first-line management

top management **Rationale: Top managers create the organization's goals, overall strategy, and operating policies. They also officially represent the organization to the external environment by meeting with government officials, executives of other organizations, and so forth.

Nour's responsibilities include creating organizational goals and overall strategy for the organization. In terms of her level in the organization, what type of manager is Nour? a. top manager b. human resources c. marketing d. middle manager e. administrative

top manager **Rationale: Top managers make up the relatively small group of executives who manage the overall organization. Top managers create the organization's goals, overall strategy, and operating policies.

What is meant when we say managers must be efficient?

using resources wisely and cost-effectively **Rationale: To ensure that an organization's goals are achieved in an efficient and effective manner. By efficient, we mean using resources wisely and in a cost-effective way.