Chapter 1

Toy Town makes and sells jigsaw puzzles and strategy board games. Its products are of excellent quality, but fail to meet consumer needs. Which of the following is most likely to be true with regard to Toy Town? A. It has a high level of efficiency and low level of effectiveness. B. It has a high level of effectiveness and low level of efficiency. C. Its product manager chooses the wrong goals to pursue and uses the resources inadequately. D. Its product manager chooses the right goals to pursue and uses the resources wisely. E. Its product manager responds quickly to change.

A. It has a high level of efficiency and low level of effectiveness.

Which of the following is true of organizational performance? A. It increases with an increase in efficiency and effectiveness. B. It increases with a decrease in efficiency and effectiveness. C. It remains unchanged with a decrease in efficiency and effectiveness. D. It decreases with an increase in efficiency and effectiveness. E. It remains unchanged with an increase in efficiency and effectiveness.

A. It increases with an increase in efficiency and effectiveness.

_____ is the managerial task that involves managers using their power, personality, influence, persuasion, and communication skills to coordinate people and groups so their activities and efforts are in harmony. A. Leading B. Planning C. Strategizing D. Reviewing E. Controlling

A. Leading

A company with a low level of efficiency and high level of effectiveness is most likely to produce: A. a product that customers want, but that is too expensive for them to buy. B. a product that customers want at a quality and price they can afford. C. a low-quality product that customers do not want. D. a high-quality product that customers do not want. E. a high-quality product that the company makes a profit on.

A. a product that customers want, but that is too expensive for them to buy.

According to Mintzberg's typology, a manager who commits organizational resources to develop innovative goods and services is a(n) _____. A. entrepreneur B. negotiator C. figurehead D. liaison E. disseminator

A. entrepreneur

Supervisors are also referred to as _____. A. first-line managers B. middle managers C. top managers D. interim managers E. executive managers

A. first-line managers

Emma is a highly efficient manager. This implies that she: A. minimizes the amount of input resources without compromising quality. B. is slow to respond to change and perceives organizational change as harmful. C. does not favor flexibility in planning D. spends lavishly on resources. E. works for longer hours than do most of her colleagues.

A. minimizes the amount of input resources without compromising quality.

The outcome of the control process is: A. the ability to measure performance accurately and regulate organizational efficiency and effectiveness. B. the ability to formulate effective business strategies and plan the allocation of resources. C. the ability to attract customers by producing goods and services more cheaply than any competitor. D. the ability to motivate employees to perform at a high level. E. the ability to decide what organizational goals to pursue.

A. the ability to measure performance accurately and regulate organizational efficiency and effectiveness.

Core competency is: A. the specific set of departmental skills, knowledge, and experience that allows one organization to outperform another. B. the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals efficiently and effectively. C. a measure of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goals. D. a measure of the appropriateness of the goals an organization is pursuing and the degree to which the organization achieves those goals. E. the ability to analyze and diagnose a situation and to distinguish between cause and effect.

A. the specific set of departmental skills, knowledge, and experience that allows one organization to outperform another.

_____ is defined as the ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors. A. Empowerment B. Competitive advantage C. Diversification D. Stratification E. Innovation

B. Competitive advantage

Which of the following does planning involve in an organization? A. Establishing task relationships that allow people to work together B. Developing strategies for how to achieve high performance C. Motivating individuals to achieve organizational goals D. Establishing accurate measuring and monitoring systems E. Measuring how well the organization has achieved its goals

B. Developing strategies for how to achieve high performance

Which of the following is a consequence of restructuring? A. Increase in the size of departments B. Increase in employee attrition C. Increase in hierarchical levels D. Increase in customer satisfaction E. Improvement in morale of employees

B. Increase in employee attrition

The Art Hub makes and sells paintings, sculptures, and small craft items. Its products meet consumer needs, but are often too expensive to buy. Which of the following is most likely to be true with regard to the company? A. It has a high level of efficiency and low level of effectiveness. B. It has a high level of effectiveness and low level of efficiency. C. Its product manager chooses the wrong goals to pursue and uses the resources inadequately. D. Its product manager chooses the right goals to pursue and uses the resources wisely. E. Its product manager chooses inappropriate goals to pursue, but uses the resources wisely.

B. It has a high level of effectiveness and low level of efficiency.

Robert is the product manager at Digital Digs, LLC, a company that manufactures computer accessories. He is known for his effectiveness and efficiency, qualities that are highly regarded in the company where he works. Which of the following can be fittingly inferred with regard to Digital Digs? A. Its products meet consumer needs, but are too expensive for them to buy. B. Its products meet consumer needs at a price they can afford. C. Its products are usually non-durable. D. Its products have limited utility. E. Its products are mostly complex in design.

B. Its products meet consumer needs at a price they can afford.

Oceania Unlimited Inc. is a tourism agency that offers special holiday packages in the Pacific region. Every year, as an incentive, the most efficient and effective manager in the network gets an all-expenses-paid trip to one of Oceania's islands. Which of the following managers is most likely to meet these requirements? A. Nico, who chooses the right goals to pursue, and spends more than he needs on resources B. Karen, who chooses the right goals to pursue, and makes clever use of resources to achieve them C. Douglas, who chooses the right goals to pursue and displays an overly rigid approach to planning D. Barrie, who chooses unrealistic goals, and tries hard to succeed E. Leo, who chooses appropriate goals, but is slow in decision making

B. Karen, who chooses the right goals to pursue, and makes clever use of resources to achieve them

Jack Sprouts Inc. is a company based in Riverdale that markets canned vegetables. In recent years, Jack Sprouts' business has declined considerably owing to a weak focus on quality. Holding the managers responsible for the declining sales figures, the CEO of Jack Sprouts decided to lay off those who lacked effectiveness and were inefficient. Who among the following is most likely to be laid off by Jack Sprouts' CEO? A. Elise, who is ambitious and favors directional planning B. Kerry, who spends lavishly on resources and is averse to taking responsibilities C. Juan, who chooses appropriate goals to pursue but does not always succeed due to resource constraints D. Margo, who sets high targets for himself and his team, and makes best use of available resources to meet them E. Andy, who plans carefully and only chooses realistic goals to pursue

B. Kerry, who spends lavishly on resources and is averse to taking responsibilities

Which of the following managerial tasks does a manager perform when he/she articulates a clear organizational vision for the organization's members to accomplish? A. Organizing B. Leading C. Staffing D. Controlling E. Planning

B. Leading

Which of the following tasks does a manager perform when he/she energizes employees and enables them to understand the part he/she plays in achieving organizational goals? A. Planning B. Leading C. Controlling D. Monitoring E. Strategizing

B. Leading

_____ involves encouraging all employees to perform at a high level to help the organization achieve its vision and goals. A. Planning B. Leading C. Reviewing D. Controlling E. Organizing

B. Leading

_____ involves contracting with another company, usually in a low-cost country abroad, to have it perform a work activity the organization previously performed itself, such as manufacturing, marketing, or customer service. A. Empowering B. Outsourcing C. Stratifying D. Controlling E. Innovating

B. Outsourcing

Which of the following is true of first-line managers? A. They are responsible for finding the best way to organize human and other resources to achieve organizational goals. B. They work in all departments or functions of an organization. C. They make specific decisions about the production of goods and services. D. They evaluate whether the organization's goals are appropriate. E. They instruct top managers on the suitability of organizational goals.

B. They work in all departments or functions of an organization.

A company with a high level of efficiency and effectiveness is most likely to produce: A. a product that customers want, but that is too expensive for them to buy. B. a product that customers want at a quality and price they can afford. C. a product that is inexpensive and non-durable. D. a high-quality product that has limited utility for customers. E. a product that requires customers to invest in expensive service packages.

B. a product that customers want at a quality and price they can afford.

The four building blocks of _____ are superior efficiency; quality; speed, flexibility, and innovation; and responsiveness to customers. A. empowerment B. competitive advantage C. diversification D. stratification E. managerial control

B. competitive advantage

Following an oil spill in the Gulf of Mexico, the CEO of an American petroleum company took the responsibility for correcting the environmental damages caused by his company. According to Mintzberg's typology, in doing so, he is performing the role of a _____. A. liaison B. disturbance handler C. monitor D. disseminator E. figurehead

B. disturbance handler

The general ability to understand, alter, lead, and control the behavior of other workers is a _____ skill. A. conceptual B. human C. technical D. structural E. diagnostic

B. human

Owing to financial problems in the organization, the top management of an investment bank decided to reduce the number of middle managers by 10 percent. This is an example of _____. A. insourcing B. restructuring C. task assessment D. empowerment E. delegation

B. restructuring

A group of employees who assume collective responsibility for organizing, controlling, and supervising their own work activities is known as a: A. primary group. B. self-managed team. C. focus group. D. restructured team. E. functional team.

B. self-managed team.

_____ is a management technique that involves giving employees more authority and responsibility over how they perform their work activities. A. Restructuring B. Outsourcing C. Empowerment D. Departmentalization E. Insourcing

C. Empowerment

_____ is a measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals. A. Organizational input B. Diversification C. Organizational performance D. Product development E. Differentiation

C. Organizational performance

In which of the following managerial tasks do managers select appropriate goals for the organization? A. Organizing B. Leading C. Planning D. Controlling E. Restructuring

C. Planning

Which of the following is a characteristic of first-line managers? A. They are responsible for finding the best way to organize human resources and other organizational assets. B. They evaluate whether the organization's goals are appropriate. C. They are responsible for daily supervision of the nonmanagerial employees. D. They instruct top managers on the suitability of organizational goals. E. They develop and fine-tune the skills and know how of middle managers.

C. They are responsible for daily supervision of the nonmanagerial employees.

Which of the following is a true of middle managers? A. They are often called supervisors. B. They are responsible for daily supervision of the nonmanagerial employees. C. They make specific decisions about the production of goods and services. D. They are responsible for the performance of all departments. E. They establish long-term organizational goals.

C. They make specific decisions about the production of goods and services.

A company with a low level of efficiency and low level of effectiveness is most likely to produce: A. a product that customers want, but that is too expensive for them to buy. B. a product that customers want at a quality and price they can afford. C. a low-quality product that customers do not want. D. a high-quality product that customers do not want. E. a high-quality product that the company makes a profit on.

C. a low-quality product that customers do not want.

The measure of the appropriateness of the goals selected by management for the organization and the degree to which the organization accomplishes these goals is known as _____. A. efficiency B. task management C. effectiveness D. diversification E. differentiation

C. effectiveness

The measure of how productively an organization uses its resources to achieve a goal is known as _____. A. effectiveness B. product differentiation C. efficiency D. empowerment E. product development

C. efficiency

According to Mintzberg's typology, a manager who evaluates the performance of other managers in different tasks and takes corrective action to improve their performance is a _____. A. disseminator B. figurehead C. monitor D. spokesperson E. negotiator

C. monitor

A(n) _____ is a collection of people who work together and coordinate their actions to achieve a wide variety of goals. A. control group B. talent pool C. organization D. focus group E. quality circle

C. organization

Due to declining global sales, Makeown Ventures Inc. announced that it would lay off 12 percent of its existing workforce over the next few months. This is an example of: A. task assessment. B. insourcing. C. restructuring. D. outsourcing. E. empowerment.

C. restructuring.

Controlling is the managerial task that involves: A. deciding what organizational goals to pursue. B. obtaining customers by producing goods and services more cheaply than any competitor. C. taking any corrective actions needed to maintain or improve performance. D. using personality to establish equilibrium in the workplace. E. motivating people to perform at a high level.

C. taking any corrective actions needed to maintain or improve performance.

Abby, the CEO of Little Angel Photography, reviews the performance of her company over the last quarter to determine whether they are meeting the planned sales and profitability goals. In this instance, which managerial task is she performing? A. Planning B. Organizing C. Delegating D. Controlling E. Structuring

D. Controlling

Which of the following is an element of planning? A. Encouraging all employees to perform at a high level to help the organization achieve its vision and goals B. Using power, personality, and communication skills to coordinate the activities of people and groups C. Establishing alliances between different organizations to share resources and produce new goods and services D. Deciding which goals the organization will pursue and what strategies will achieve those goals E. Organizing people into departments according to the kinds of job-specific tasks they perform

D. Deciding which goals the organization will pursue and what strategies will achieve those goals

A company with a high level of efficiency and low level of effectiveness is most likely to produce: A. a high-quality product that does not address the relevant market segment. B. a high-quality product that customers can afford. C. a low-quality product that customers do not want. D. a high-quality product that customers do not want. E. a high-quality product that the company makes a profit on.

D. a high-quality product that customers do not want.

Craig is a highly effective manager. This implies that he: A. is likely to spend lavishly on resources. B. is highly compliant. C. disfavors employee empowerment. D. chooses appropriate goals and then achieves them. E. is overly ambitious.

D. chooses appropriate goals and then achieves them.

The ability to analyze and diagnose a situation and to distinguish between cause and effect is a: A. human skill. B. negotiation skill. C. technical skill. D. conceptual skill. E. structural skill.

D. conceptual skill.

Middle managers are responsible for: A. the daily supervision of the nonmanagerial employees. B. fine-tuning and developing the skills of top managers. C. the establishment of the organization's goals and visions. D. finding the best way to use resources to achieve organizational goals. E. the creation of the top-management team.

D. finding the best way to use resources to achieve organizational goals.

he process of creating new products that customers want is called: A. market segmentation. B. total quality management. C. cost control. D. innovation. E. restructuring.

D. innovation.

According to Mintzberg's typology, a manager who establishes agreements with other organizations about pooling company resources while working on joint projects is a(n) _____. A. figurehead B. entrepreneur C. monitor D. negotiator E. disseminator

D. negotiator

Daniel, a manager at Joe's Fish Shack, monitors the performance of workers in his department to check if the quality of their work is meeting the performance standards of the company. In doing so, which managerial task is Daniel performing? A. Planning B. Staffing C. Organizing D. Structuring E. Controlling

E. Controlling

Which of the following is a primary concern of top managers? A. Supervising nonmanagerial employees B. Training, motivating, and rewarding salespeople C. Developing and fine-tuning employee skills D. Supervising first-line managers E. Deciding which goods a company should produce

E. Deciding which goods a company should produce

In which of the following managerial tasks are work relationships restructured to facilitate the interaction and cooperative efforts of organizational members, all of whom strive to achieve organizational goals? A. Planning B. Leading C. Reviewing D. Controlling E. Organizing

E. Organizing

Which of the following is true of top managers? A. They are often called supervisors. B. They are responsible for daily supervision of the nonmanagerial employees. C. They spend more time leading and controlling than planning and organizing. D. They do not establish organizational goals. E. They have cross-departmental responsibility.

E. They have cross-departmental responsibility.

In _____, managers evaluate how well the organization is accomplishing its goals. A. leading B. planning C. organizing D. disseminating E. controlling

E. controlling