Chapter 6 Questions

Suppose Ella is a frontline supervisor at a local manufacturing plant. She has established a goal of increasing productivity in her department by 3 percent this year. Ella is constantly monitoring her department's progress toward the achievement of this goal, and periodically, she takes corrective action to ensure that at the end of the year, her department will have achieved at least a 3 percent increase in productivity. Ella is engaging in which of the following functions of management? A) Controlling B) Organizing C) Directing D) Planning

A) Controlling

Frederik, a store manager at an office supply store, is not well liked by their subordinates. Frederik always tells their employees what to do and how to accomplish it, without giving their subordinates any say in the decision-making process. As a result, the store is plagued by constant employee turnover and disappointing sales results. What kind of leader is Frederik? A) Autocratic B) Transformational C) Participative D) Laissez-faire

A) Autocratic

Miguel Guardado currently serves as office manager for a local health care clinic. At what level of management is Miguel? A) Executive management B) First-line management C) Middle management D) Top management

B) First-line management

Which of the following is correct regarding transactional leadership? A) It emphasizes rewards, rather than punishment, to motivate subordinates to achieve organizational goals. B) It focuses on productivity and efficiency while disregarding the chain of command. C) It is generally inconsiderate of subordinates. D) It emphasizes monitoring employee performance.

D) It emphasizes monitoring employee performance.

Steve Jobs, co-founder and former CEO of Apple Inc. was a legendary corporate leader. Jobs was known for his ability to think in abstract terms. He was pioneer of the personal computer revolution with his friend Steve Wozniak, and was co-creator of the Macintosh computer, the iPod, the iPhone, the iPad, and the first Apple Stores. Based on his ability to see the "big picture" and understand how the various parts of an organization or idea can fit together, Steve Jobs' legendary leadership status was most correctly attributed to which of the following management skills? A) Conceptual skills B) Interpersonal skills C) Communication skills D) Technical skills

A) Conceptual skills

Which of the following is not a recognized step of the managerial decision-making process? A) Identify opportunities and disregard problems B) Generate alternatives C) Select an alternative D) Implement and evaluate the solution

A) Identify opportunities and disregard problems

Ford Motor Company uses steel, gas, plastic, and rubber to produce its legendary Ford Mustang automobiles on complex machine-driven assembly lines. These resources are known as which of the following? A) Material resources B) Financial resources C) Human resources D) Informational resources

A) Material resources

According to management consultant James Kerr, an organization's people are its most important asset. James is referring to the significance of which of the following resources available to business? A) Material resources B) Financial resources C) Human resources D) Informational resources

C) Human resources

Malik's responsibilities at the Home Depot where he is employed involve coordinating people and other resources to achieve the goals of his employer. Generally speaking, what is Malik's job? A) Operational planner B) Controller C) Strategic planner D) Manager

D) Manager

Which of the following is often referred to as the "first" management function? A) Leading and motivating B) Organizing C) Controlling D) Planning

D) Planning

Bank of America continuously monitors external data regarding the economy (interest rates, the stock market, inflation, unemployment, etc.) to determine its business prospects for the future and how to adapt to a constantly changing economic environment. This data is known as which of the following? A) Informational resources B) Financial resources C) Human resources D) Material resources

A) Informational resources

Luis, the Texas-based supervisor of Vertex Pharmaceuticals sales team, is currently arranging his sales representatives into groups, with each group strategically designed to focus on specific geographic areas in Texas (Dallas, Houston, San Antonio, etc.) where Vertex does its most significant business. In making these arrangements, Luis hopes to be as efficient and effective as possible, so that Vertex will achieve its established goal of increasing its pharmaceutical sales in Texas by at least 3.5 percent in the upcoming year. Luis is involved in which of the following management functions? A) Organizing B) Planning C) Directing D) Controlling

A) Organizing

Henry Feuerstein was the founder of Malden Mills, which became the original manufacturer of Polartec polar fleece. On December 11, 1995, the core buildings of the Malden Mills textile plant in Lawrence, Massachusetts burned to the ground, leaving Henry with a choice: He could either commit to rebuild the facility, or he could take the insurance money and retire. In the interests of his employees and the community, Henry quickly chose to rebuild the plant. Henry's actual decision to rebuild involved which step of the managerial decision-making process? A) Select an alternative B) Identify the opportunity and disregard the problem C) Implement and evaluate the solution D) Generate alternatives

A) Select an alternative

Jeff Williams currently serves as the chief operating officer (COO) of Apple Inc. At what level of management is Jeff? A) Top management B) First-line management C) Board of directors D) Middle management

A) Top management

Which of the following is correct regarding top managers of an organization? A) In terms of planning, they do not determine the firm's strategy since that is the responsibility of the board of directors. B) Their common job titles are typically director, strategic advisor, treasurer, and secretary. C) In terms of planning, they are generally responsible for developing the organization's mission. D) They represent the largest of the three general levels of management.

C) In terms of planning, they are generally responsible for developing the organization's mission.

Roberto has formed his own heating, ventilation, and air conditioning (HVAC) company, and he has established a general plan to become the best HVAC company in his service area of Durham County, North Carolina in terms of sales and customer satisfaction. What type of plan is this? A) An operational plan B) A strategic plan C) A contingency plan D) A tactical plan

B) A strategic plan

Shaniqua, a frontline supervisor at an Amazon warehouse, is trying to convince her employees that Amazon's goals are consistent with their personal career goals, and she is further trying to convince her employees to work hard to achieve the company's goals so that they will benefit them as well. Shaniqua is engaged in which of the following functions of management? A) Planning B) Directing C) Controlling D) Organizing

B) Directing

After Wells Fargo meets any applicable reserve requirements (the amount of funds the Federal Reserve Board requires a bank to hold in reserve to ensure that it is able to meet its customers' withdrawal requests), the bank lends out its remaining funds to customers, charges interest on those loans, and generates a profit as a result. The funds Wells Fargo loans to its customers are known as which of the following types of resources available to business? A) Operational resources B) Financial resources C) Informational resources D) Human resources

B) Financial resources

Regarding the key skills of managers, which of the following is correct regarding technical skills? A) They involve the ability to think in abstract terms. B) First-line managers need to understand the technical skills relevant to the activities they manage. C) Top managers must rely as heavily on technical skills as do middle managers and first-line managers. D) They involve the ability to identify problems correctly, generate reasonable alternatives, and select the "best" alternatives to solve problems.

B) First-line managers need to understand the technical skills relevant to the activities they manage.

Suppose you aspire to become a CEO at a major corporation. You believe you have a legitimate chance to "climb the corporate ladder" to the highest executive management rank due to your ability to deal effectively with other people. More specifically, you believe that you can listen to and build relationships with people, understand their needs and motives, and show genuine compassion. These personal skills are most closely associated with which of the following management skills? A) Analytic skills B) Interpersonal skills C) Technical skills D) Conceptual skills

B) Interpersonal skills

Which of the following is correct regarding financial management as an area of management specialization? A) Financial managers are not primarily responsible for an organization's financial resources, as that responsibility is typically outsourced to an independent accounting firm. B) Many CEOs and presidents of large companies were first trained as financial managers. C) Financial managers manage the systems that convert resources into goods and services. D) Specific areas within financial management include product management, sales, and distribution.

B) Many CEOs and presidents of large companies were first trained as financial managers.

Which of the following is correct regarding administrative managers? A) They are charged with the responsibility of managing an organization's human resources programs. B) They coordinate the activities of specialized managers in operations, finance, marketing, or human resources management. C) They are typically associated with specific functional areas. D) They specialize in operations, finance, marketing, or human resources management.

B) They coordinate the activities of specialized managers in operations, finance, marketing, or human resources management.

Which of the following is correct regarding middle managers of an organization? A) They implement the strategy and major policies developed by first-line managers. B) They make up the largest group of managers in most organizations. C) They do not develop tactical and operational plans since that is the responsibility of top management. D) Titles at the middle-management level include secretary, treasurer, and parliamentarian.

B) They make up the largest group of managers in most organizations.

Nahia, a store manager at a local crafts store, is well regarded by her subordinates. Nahia has a "hands-off" leadership style that provides direction and resources to her employees, while delegating responsibility and decision-making authority to them. In fact, Nahia's employees actually embrace the delegation of responsibility and decision-making authority to them, since this will teach them the skills they need to advance their careers. What kind of leader is Nahia? A) Transformational B) Transactional C) Laissez-faire D) Autocratic

C) Laissez-faire

Tiana Blackburn currently serves as plant manager of a local manufacturing firm. At what level of management is Tiana? A) Executive management B) Top management C) Middle management D) First-line management

C) Middle management