Chapter 6: The Nature of Management

Managers spend roughly ____ of their time working with others.

75%

_______ managers handle the staffing function and deal with employees in a formalized manner.

human resources

What are four common objectives of organizations?

growth efficiency competitive advantage profit

In public corporations the CEO's boss is the firm's _____.

board of directors

A ______ is an outline of the fundamental purpose and basic philosophy of an organization.

mission statement

Which function of management is a crucial activity as it lays the foundation for all other management functions?

planning

Knowing how to use, and train others to use, a specific computer program is an example of _______ expertise.

technical

Decisions to add products, acquire companies, sell unprofitable business segments, and move into foreign markets are made by _____ managers.

top

Positions such as Chief Executive Officer, President, Vice President, and Chief Financial Officer are examples of __________ positions.

top management

The highest level of management is _____ and consists of the president and other key company executives who develop strategic plans and have overall responsibility for the organization.

top managers

True or false: Downsizing is defined as the elimination of a significant number of employees from an organization.

true

Brainstorming is a technique in which ______.

group members suggest ideas to solve problems

What skills are most needed by first-line managers and are least critical to top-level managers?

Technical skills

Managers utilize many tools to help organize their work, including a(n) _____, which contains both specific and vague items, covering short-term goals and long-term objectives.

agenda

The owner of a small electronic store starts each day by telling the three employees what has to be done and how to do it. She uses her authority and economic rewards to get employees to comply with their directions. The owner of this business exhibits a(n) _____ leadership style.

autocratic

To combat criticism of CEO's high compensation packages, compensation committees are increasingly working with boards of directors to make sure CEO pay is based on ______.

company performance

Both _________ and free-rein leaders could qualify as authentic leaders depending upon how they conduct themselves among stakeholders.

democratic

Which leadership style is best utilized when employees are knowledgeable about the organization's process and managers benefit from seeking their input in decision making?

democratic

Fatima is manager for a retail organization. Her favorite part of the job is working one-on-one with employees, motivating them to excel, and encouraging them in their work. Fatima enjoys the _____ function of her management job.

directing

On which two management functions do first-line managers spend the majority of their time?

directing and controlling

True or false: Effective implementation of a decision to abandon a product, close a plant, purchase a new business, or something similar requires planning.

true

This type of leader is passionate about the goals and mission of the company, displays corporate values in the workplace, and forms long-term relationships with stakeholders.

athentic

Steve is a new manager and is interested in developing his network in order to carry out his responsibilities at work. Which of the following are probably not a potential candidate for Steve's network?

competitors

A manager skilled at evaluating where the company will be in the future and thinking creatively to solve problem has good _____ skills.

conceptional

Walmart set a _______________ when it decided to improve its reputation as an environmental company (an attribute sought) by improving the fuel efficiency of its truck fleet by 25% (a target to be achieved) within two years (a time frame).

goal

Which type of manager is responsible for technology applications in the workplace?

Information Technology managers

Managers at ABC company have noticed declining profits for one of its products. This is an example of a warning sign of a potentially _____-scale decision.

large

Managers who have the ability to influence employees to work toward organizational goals have the skill of _____.

leadership

The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning is _____ _____.

middle management

______ involves building relationships and sharing information with colleagues who can help managers achieve the items on their agendas.

networking

Internal social ______ such as Yammer allow employees to connect with one another.

networks

______, the ends or results desired by an organization, derive from the organization's mission and they may be elaborate or simple.

objectives

Who performs tactical planning in an organization?

Managers or teams of managers at the middle level

Which skills involve the ability to think critically, think in abstract terms, see how parts fit together to form the whole, and are needed by all managers--but especially top-level managers?

Conceptual skills

______ skills refer to the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive the underlying cause of the situation.

analytical

The five activities of the ______ process include measuring and recording actual performance or results, comparing results against plans and standards, identifying deviations from the standards, investigating the causes of deviations, taking corrective action when needed.

controlling

When a manager attends an award banquet, he or she is acting in which interpersonal role?

figure

Which type of manager handles all items related to staffing?

human resources

The ______ function establishes goals and standards and the ______ function monitors performance to make sure the firm's activities are on target to meet its goals.

planning;controlling

production and operations managers

Develop and administer the activities involved in transforming resources into goods, services, and ideas ready for the marketplace

A manager serves in which role when he or she settles union grievances?

Negotiator

The first step of the decision-making process not only recognizes a situation, it also ______.

defines the situation

_____ is defined as the ability to influence employees to work toward organizational goals.

leadership

Companies that practice employee empowerment use managers for ______. (Select all that apply)

making major decisions setting goals guiding employees

What type of decision making that involves both manager and employee supports employee empowerment within an organization?

participative

Top managers spend the majority of their time on the ______ function of management.

planning

Plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its missions are referred to as ______ plans.

strategic plans

Selection of the best option in decision making is often a _____ procedure because many situations do not lend themselves to quantitative analysis.

subjective

Management is a process designed to achieve an organization's objectives by using its resources effectively and efficiently. Match the term to its definition. Efficiently Effectively having the intended result. accomplishing the objectives with a minimum resources.

Efficiently: accomplishing the objectives with a minimum resources. Effectively: having the intended result.

True or false: The main difference between goals and objectives is that goals are generally stated in such a way that they are measurable.

False

Managers who have decided to eliminate a significant number of employees from the organization are engaging in _____.

Downsizing

The interpersonal type of managerial role includes which three specific roles?

Liaison Leadership Figure

The decisional type of managerial role includes which four specific roles?

Resource allocator Negotiator Entrepreneur Disturbance handler

Why is it critical that managers monitor the consequences of their decisions? (Select all that apply)

The decision may have been the wrong decision and thus not achieved the desired result. The decision was not implemented properly and thus the desired result was not achieved. The situation may have changed since the decision was made.

Knowing how to sort large amounts of information in order to find relevant facts to resolve a problem or issue is an example of ______.

analytical

______ leadership is a leadership style that involves making managerial decisions without consulting others.

autocratic

Which of the following is NOT one of the three general types of plans an organization uses to meet its objectives?

functional plans

_______ managers manage an entire business or a major segment of a business; they do not specialize in a particular function.

Administrative

What criticism is leveled against CEO compensation packages that has prompted new thinking in how CEOs are paid?

CEO compensation is excessive compared to performance.

Which of the following are important considerations when determining the best leadership style? (Select all that apply)

How quickly must the decision be made? Have the employees been involved in decision making in the past? How highly trained are the employees?

Which discipline is the process of planning, organizing, leading, and controlling people and organizational resources in order to accomplish the goals of the organization?

Management

CEO COO CPO

Manages the overall strategic direction of the company. Responsible for the daily operations of the company. Responsible for managing the privacy concerns of the organization.

What three items are included in the staffing function of management?

Motivation and training recruiting and hiring compensation and benefits

Steve is skilled at all of the following, but which are considered part of his human relations skill set? (Select all that apply)

Understand others' needs Relate to others Communicates well with others

A mission statement outlines the organization's fundamental purposes. It should address which five of the following?

What is the operating philosophy? Who are our customers? What are our core competencies and competitive advantages? Who are we? What are our responsibility with respect to being a good steward?

Resolving ethical issues often requires ________ skills; the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive the underlying cause of a situation.

analytical

Stan recognizes that his employees who work at the production level have ideas and knowledge he does not have, thus Stan holds weekly meetings where he asks for his employees' ideas on solving the problems. Stan is a _____ leader.

democratic

______ leadership is a leadership style that consists of managers and employees working together to make decisions.

democratic

Once the decision situation has been recognized and defined, the next step is to ______.

develop options

Jose started a small business two years ago. His primary objective is to increase his company's market share. Jose's objective is focused on _____.

developing a competitive advantage

Companies that assemble people from different backgrounds to solve problems facing the firm are realizing that ______.

diversity often results in better solutions

Managers who are directly responsible for supervising workers and evaluating their daily performance are called _____.

first-line manager

______ leadership is a leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

free rein

Maria manages a team of highly skilled computer programmers. For the most part, her employees are self-directed and need very little support from Maria. Maria is there to answer questions and provide resources, but otherwise leaves her team to do their work. Maria exhibits a _____ style of leadership.

free-rein

The best way a company can encourage participative decision making is by ______.

providing employee and managerial training

Because each employee can bring in his or her own unique insights, ___________ often results in innovative ideas or decisions that would not have been reached by only one or two people.

teamwork

Profit Competitive Advantage Efficiency

Money and assets left over after paying off business expenses percentage sales or market share increase making the best out of the business' resources

an _______ style of leadership is generally best for stimulating unskilled, unmotivated employees.

autocratic

A small pharmaceutical company was faced with a crisis when a manufacturing defect altered one of its drugs and led to serious health complications in those who took the drug. The company was unprepared to handle this situation and the backlash it received from consumers. What type of plan would have prepared this company to better deal with such a situation?

contingency plan

Jasmine needs to correct a quality control issue with her company's product. Clear standards for quality exist, and she has measured present performance against these standards. Jasmine has discovered a deviation where the company is not meeting the standard and is now investigating the causes of those deviations. What function of management is Jasmine involved in?

controlling

Motivating employees to work effectively to accomplish organizational objectives, encouraging employees to do their work, and administering appropriate rewards are all tasks associated with the ______ function of management.

directing

_____ means having the intended results; _____ means accomplishing the objectives with a minimum of resources. (two blanks, two words)

effectively;efficiently

Which level of management has been shrinking as more and more companies downsize to be more productive?

middle management

Tactical plans typically cover a time frame of ______.

one year or less

Jake works in production for his company. Each week his work group is assigned a production quota to ensure enough product is available to meet the goals of the company. A production quota is an example of a(n) _____ plan.

operational

Which of the following refers to the actions specific individuals, work groups, or departments need to accomplish in order to achieve the company's tactical plan?

operational plans

Middle managers spend the majority of their time on the ______ function of management.

organizing

The structuring of resources and activities to accomplish objectives in an efficient and effective manner describes the management function of ______.

organizing

Which of the following best characterizes middle managers?

Narrowly focused, spends the most time organizing

Employee _________ occurs when employees are provided with the ability to take on responsibilities and make decisions about their jobs.

empowerment

When team members go with the majority rather than what they think is the right decision, this occurs because of _____.

groupthink

Carlos relates well with others, has good communication skills, and is empathetic to the needs of others. Carlos has good _____ skills.

human relations

True or false: Although managers engage in four primary activities--planning, organizing, directing, and controlling--the activities are not interrelated; a manager can only perform one activity at a time.

false

True or false: If a company chooses to downsize in order to be more productive, it will most likely eliminate its first-line level of managers.

false

To be successful, company _______ should be specific; containing an attribute sought, a target, and a time frame.

goals

______ can be defined as a process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.

management

A manager serves in which role when he or she informs employees about changes taking place that will affect them and the organization?

Disseminator

Why is planning a key management function?

Accomplishing the other functions depends heavily on having a good plan.

Controlling is the process of evaluating and correcting activities to keep the organization on course. Controlling involves which five activities?

Measuring performance. Comparing performance relative to standards. Identifying deviations in performance from the standards. Taking corrective action when necessary. Investigating the causes of deviations.

Select from the following the activities managers engage in so as to reach the organization's objectives. (Select four answers) Directing Organizing Financing Controlling Marketing Planning

Planning Organizing Directing Controlling

Which type of manager is responsible for the activities involved in getting goods and services ready for the marketplace?

Production and Operations managers

The ultimate decision-making responsibility for long-range goals, such as acquiring a company, entering a new market, or developing a new product, belongs to ______.

top managers

By engaging in four essential activities (planning, organizing, directing, and controlling) a ______ works to achieve the organization's objectives.

managers

The informational type of managerial role includes which three specific roles?

Spokesperson Disseminator Monitor

Which three activities are likely to be performed by first-line managers?

Supervising workers performance. Supervising daily company operations. Implementing the plans of middle management.

Name the three key elements in a goal.

a time frame a target to be achieved an attribute sought

Which type of manager is more of a generalist than a specialist, managing entire businesses or major segments of a business?

administrative

Resolving ethical issues often requires _______ skills; the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive the underlying cause of a situation.

analytical

Organizing benefits the organization in which of the following ways? (select all that apply)

by improving competitiveness by speeding up decision making by improving communication by helping to create synergy by establishing lines of authority by helping to avoid the duplication of resources

An important part of managing resources is acquiring suppliers. How does a good supplier help a firm reach its objectives? (Select all that apply)

by providing creative solutions to reduce expenses. by maximizing efficiencies.

Skills that involve the ability to picture the organization as a whole and the relationship among its various parts are _____ skills.

conceptional

The process of evaluating and correcting activities to keep the organization on course is known as _____.

controlling

When performance is substandard, management must determine why and take appropriate actions to get the firm back on course. The _______ function helps managers assess the success of their plans.

controlling

In _______ managers identify potential threats to the organization and its stakeholders, and make plans for the organization to deal with these threats.

crisis management

When it comes to solving problems in the workplace, which of the following leads to better solutions?

diverse workforce

Liberty lockworks is contemplating opening a new plant in the Southeast United States. The company needs to know if it has the capital to make such an investment and if so, will it affect the organization's overall goals. This type of decision would fall under the responsibility of a ______ manager.

financial

Which type of manager is responsible for obtaining the money needed for the successful operation of the organization?

financial managers

Rohan is in charge of all of the company's computer systems and networks. When the company needs to upgrade its computers or needs to link a new office to the current system Rohan's department handles those requests. What type of manager is Rohan?

information technology

Which type of manager is responsible for making decisions about product features, name, price, and packaging, as well as planning the best distribution strategy for the product?

marketing

All of the following tasks are associated with the directing function of management, EXCEPT ______.

measuring results against corporate objectives

June is working as part of the strategic planning team in her organization. Currently, the team is developing a clear statement explaining the organization's reason for existence. June's team is writing a _____.

mission statement

Sandra is a no-nonsense manager with excellent budgeting skills. On projects that Sandra manages, the team always comes in under budget. When forecasting costs for a plan, Sandra is extremely accurate. Sandra is skilled at managing which resource for her company?

money

Managers are engaged in the ______ function of management when they review plans and determine what activities are necessary to implement them; then, divide the work into small units and assign it to specific individuals, groups, or departments.

organizing

______ is important because it establishes lines of authority and improves communication within an organization.

organizing

Managers need adequate financial resources to pay for essential activities. Primary funding comes from which three sources?

owners shareholders banks

Considered the first function of management, _______ is the process of determining the organization's objectives and deciding how to accomplish them.

planning

The process of determining the organization's objectives and deciding how to accomplish them is known as ______.

planning

A good mission statement should address all of the following topics EXCEPT ______.

profit targets

People, raw materials and equipment, money, and information are all _____ of an organization.

resources

Recruiting people for positions within the company, determining what skills are needed for specific jobs, and training employees to do their assigned jobs are all part of the ___________ function of management.

staffing

_____ should be market-driven, matching customers' desire for value with operational capabilities, processes, and human resources.

strategic plans

If an American surf board manufacturer has the strategic plan to expand sales into Australia, then the short-range plan to host surfing competition events in Australia is a _______ plan.

tactical