Chapter 6

Management involves:

Planning Leading Controlling Organizing

A _____ is a formal document that states an organization's purpose and reason for existing and describes its basic philosophy.

mission statement

_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.

strategic planning

Most firms have three distinguishable levels of management. They are:

supervisory, middle, and top

Leadership is the process of guiding and motivating others toward the achievement of organizational goals.

true

_____ is the process of guiding and motivating others toward the achievement of organizational goals.

leadership

_____ provides the structure of people, positions, departments, and activities within which the company objectives can be accomplished.

organizing

A clothing wholesaler that buys most of its inventory from manufacturers in the Caribbean should have a _____ plan in the event a hurricane demolishes the manufacturing facility of one of its principal suppliers.

Contingency plan; Plans that identify alternative courses of action for very unusual or crisis situations

Asan Linhoud has a major decision to make regarding whether to create a new sales territory or simply add customers to existing territories. He asks for suggestions from his sales reps but will make his own decision. This style of leadership is called:

Consultative; confer with subordinates before making a decision but retain the final decision-making authority

The proliferation of information technology no longer has any effect on today's managers.

False; The second trend having a major impact on managers is the proliferation of data and analytics in information technology.

Performance standards and feedback are essential goals of the organizing function of management.

False; dividing up tasks (division of labor), grouping jobs and employees (departmentalization), assigning authority and responsibility (delegation)

Which two different leadership styles use empowerment?

Laissez-faire and participative

Strategic planning is long-range, formulated by top management, and made as if the company operated in a vacuum

false

The lowest level of management is engaged in strategic planning process

false