Strategic Management 2015 - 2019

"What company has the highest sales-to-receivables ratio based on the following information: Company A has sales of $250,000 and accounts receivable of $20,000; Company B has sales of $275,000 and accounts receivable of $25,000; Company C has sales of $300,000 and accounts receivable of $30,000; and Company D has sales of $290,000 and accounts receivable of $32,000. A. Company A B. Company B C. Company C D. Company D" "

" "A Company A. Businesses often compare their sales-to-receivables ratios with industry standards in order to determine if they are collecting cash as quickly as others. If businesses find that they have low sales- to-receivables ratios, they might make adjustments to their collection procedures in order to receive payment in a more timely manner. To calculate Company A's sales-to-receivables ratio, divide sales by accounts receivable ($250,000 ÷ $20,000 = 12.5). This figure indicates that receivables turn over more than 12 times a year which means there is a shorter time between making the sale and collecting the cash. SOURCE: SM:005 SOURCE: Investopedia. (2017, August 10). Receivables turnover ratio. Retrieved September 19, 2017, from http://www.investopedia.com/terms/r/receivableturnoverratio.asp"

"Which of the following employees would most likely be described as "innovative" by his/her supervisor: A. Jake, because he is always willing to adapt to changes during a project B. Madison, because she prefers to stick to traditional ideas and processes C. Elizabeth, because she gets frustrated when she needs to learn new skills D. Anthony, because he is usually quiet during brainstorming sessions" "

" "A Jake, because he is always willing to adapt to changes during a project. To innovate new ideas and processes, employees must be willing to adapt to unforeseen circumstances. This flexibility is essential to successfully innovate. Sticking to traditional ideas and processes, getting frustrated with learning new skills, and staying quiet during brainstorming sessions are all indications that these employees are not likely to be called innovative by their supervisors. SOURCE: SM:094 SOURCE: Bagley, R. (2014, January 15). The 10 traits of great innovators. Retrieved September 17, 2018, from http://www.forbes.com/sites/rebeccabagley/2014/01/15/the-10-traits-of-great- innovators/#5429e812ed50"

"For successful innovation to occur, employees must be willing to __________ while developing ideas. A. learn B. teach C. avoid results D. work alone" "

" "A Learn. For successful innovation to occur, employees must be willing to learn while developing ideas. The development process involves learning and accepting change. Employees do not necessarily have to teach while developing ideas. They should review their results and learn from them, not avoid them. Innovation does not necessarily occur when employees work alone; it may happen when employees are working together. SOURCE: SM:094 SOURCE: Muse, C., & Smith, J. (n.d.) Cultivating innovation in the workplace. Retrieved September 20, 2017, from http://managementhelp.org/innovation/"

"Which component of the business plan requires considerable time and external research? A. Market analysis B. Executive summary C. Strategy and implementation D. Appendices" "

" "A Market analysis. The market analysis requires considerable time and external research. The executive summary, strategy and implementation section, and appendices may require some time to put together, but they do not necessarily require external research. SOURCE: SM:013 SOURCE: LAP-SM-013—Plan for Success (Creating a Business Plan)"

"One of the goals of change management is A. to obtain buy-in from stakeholders. B. to limit the effects of a change. C. to keep the people involved to a minimum. D. to reduce the time it takes to make a change." "

" "A To obtain buy-in from stakeholders. Changes are more successful when stakeholders are supportive of them. Change management helps obtain this buy-in from stakeholders by keeping them informed and involved. Limiting the effects of a change, keeping the people involved to a minimum, and reducing the time it takes to make a change are not necessarily goals of change management. SOURCE: SM:095 SOURCE: Mind Tools Content Team. (1996-2018). Change management. Retrieved September 17, 2018, from https://www.mindtools.com/pages/article/newPPM_87.htm"

"Which of the following pairs of businesses are examples of direct competitors: A. Ryan's Drugstore and Hally's Homemade Cards B. Hot n' Spicy Wings and Southern Fried Chicken House C. JTE Clothes Boutique and Carla's Hardware D. Modern Dry Cleaning and Trotterman Accounting Services" "

" "B Hot n' Spicy Wings and Southern Fried Chicken House. Direct competition is competition which occurs among businesses that offer similar goods or services. Hot n' Spicy Wings and Southern Fried Chicken House are direct competitors for consumers' food purchases. All of the other alternatives are businesses that are in indirect competition with each other because they offer dissimilar goods or services. SOURCE: SM:011 SOURCE: Oman, J. (2018, January 16). Understanding your competition. Retrieved September 17, 2018, from https://smallbusinessbc.ca/article/understanding-your-competition/"

"One way that managers can promote ethical behavior on the part of everyone in the business is by encouraging employees to A. develop a code of ethics. B. report unethical actions. C. be thoughtful of others. D. avoid social situations." "

" "B Report unethical actions. Managers can promote ethical behavior in the business by encouraging employees to report unethical actions. If employees know that unethical behavior will not be tolerated and that such behavior will be punished, they are more likely to behave in an ethical way. By reporting unethical behavior, employees are helping managers enforce ethics in the business. The managers, rather than the employees, are responsible for developing a code of ethics for the business. Managers do not promote ethical behavior in the business by encouraging employees to be thoughtful of others or to avoid social situations. SOURCE: SM:002 SOURCE: Lambarki, T. (n.d.). How managers can encourage ethical behavior. Retrieved September 17, 2018, from https://courses.lumenlearning.com/suny-principlesmanagement/chapter/how- managers-can-encourage-ethical-behavior/"

"A business should consider the impact that changes in the environment will have on the business's marketing mix because A. most businesses want to be reactive. B. the business can change its marketing mix. C. the marketing mix is affected by technology. D. government regulations can increase costs." "

" "B The business can change its marketing mix. While the business cannot control the external factors in the environment that affect the business, the business can change its marketing mix (price, place, product, promotion) to reflect any shifts in the environment. That is why most businesses prefer to be proactive by planning ways to cope with expected changes. Government regulations can increase the costs of doing business, and the marketing mix may be affected by technology, but those are not reasons the business should consider the impact of changes on the marketing mix. SOURCE: SM:011 SOURCE: Riley, J. (2015). External environment: Introduction (GCSE). Retrieved September 19, 2017, from https://www.tutor2u.net/business/reference/external-environment-introduction"

"Why is it important to track the performance of a business plan? A. To establish an operating strategy B. To find out if products are selling C. To determine its proposed mission D. To provide investment information" "

" "B To find out if products are selling. A business plan is a proposal of how a business intends to operate to achieve its objective. It is important to track the performance of a business plan to determine if the objective of the business is being met. A main objective for most businesses is to sell products. By tracking the performance of the strategies outlined in the business plan, a business is able to find out if the strategies it is using to sell are effective. If the business is not satisfied with the level of sales, it might develop different strategies. Developing a business plan involves establishing an operating strategy and determining the proposed mission of the company. Businesses often use a business plan to provide investment information to potential investors. SOURCE: SM:006 SOURCE: Berry, T. (2017, May 12). How to use your business plan to track your progress and exceed your goals. Retrieved September 20, 2017, from http://articles.bplans.com/how-to-use-your-"

"Which of the following is an example of a company objective that might be developed by top management: A. To improve the collection process B. To maintain or increase market share C. To maintain the billing cycle D. To hold weekly sales meetings" "

" "B To maintain or increase market share. This is an overall objective for the entire company that would be set by top management. Deciding to hold weekly sales meetings, do a better job of collecting past-due bills, or to keep the billing up-to-date are specific objectives that might be set by department managers. SOURCE: SM:008 SOURCE: Root, G.N. (2011, September 17). 10 most important business objectives. Retrieved September 19, 2017, from http://smallbusiness.chron.com/10-important-business-objectives- 23686.html"

"If a company wants to ensure that changes are implemented in the best possible way and that those changes will lead to long-term benefits, it should use the __________ approach. A. change avoidance B. problem solving C. change management D. solution finding" "

" "C Change management. The change management approach ensures that changes are implemented in the best possible way and that those changes will lead to long-term benefits. Change management is not referred to as problem solving, change avoidance, or solution finding. SOURCE: SM:095 SOURCE: MindTools. (1996-2017) Change management: Making organization change happen effectively. Retrieved September 20, 2017, from https://www.mindtools.com/pages/article/newPPM_87.htm"

"Which of the following is the most critical component of a business plan: A. Market analysis B. Company description C. Executive summary D. Financial plan" "

" "C Executive summary. The executive summary is the most critical component of a business plan. It is the heart of your business plan and the first thing that readers will see. Most readers will use the executive summary to determine whether or not it's worth reading any further. While the company description, market analysis, and financial plan are all important, the executive summary is the most critical component of the plan. SOURCE: SM:013 SOURCE: LAP-SM-013—Plan for Success (Creating a Business Plan)"

"The ski shop manager set an objective to increase sales by 10% over the previous year even though the forecast was for a mild and rainy winter. The manager's objective was A. reasonable. B. practical. C. unrealistic. D. scientific." "

" "C Unrealistic. Setting goals and objectives help a company move forward, but the goals must be realistic. Companies that set unrealistic goals are less likely to achieve those goals. If they plan for the unrealistic goals, acquire additional inventory, and hire more staff, they may encounter failure. Practical, reasonable, and scientific are characteristics of realistic goals and objectives. SOURCE: SM:008 SOURCE: The Happy Manager. (2007-2018). What are SMART objectives - and how do you set them? Retrieved September 17, 2018, from https://the-happy-manager.com/tips/smart-objectives/"

"Which management function lays the groundwork for all of the other management functions? A. Directing B. Organizing C. Staffing D. Planning" "

" "D Planning. The planning function is the management function that lays the groundwork for all of the other management functions. Organizing, staffing, directing, and controlling decisions are based on the plans the business has established. SOURCE: SM:001 SOURCE: LAP-SM-003—Manage This! (Concept of Management)"

"A manager evaluates the production output of a department by checking it against the production goals for that time period. This is an example of the __________ function of management. A. controlling B. directing C. organizing D. planning"

"A Controlling. Controlling is the management function that monitors the work effort. Planning is the management function of deciding what will be done and how it will be accomplished. Directing is the management function of providing guidance to workers and work projects. Organizing is the management function of setting up the way the business's work will be done. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)"

"A human resources manager sets up a computerized system for maintaining employee records. What type of resource is the manager using? A. Material B. Financial C. Human D. Natural"

"A Material. Material resources are equipment and supplies used by businesses in their operation. Financial resources are all the sources of money available to the business. Human resources are people who work to produce goods or services. Natural resources are resources found in nature that are used to produce goods and services. SOURCE: SM:001 SOURCE: LAP-SM-003—Manage This! (Concept of Management)"

"A plant manager or a department head would be an example of which level of management? A. Middle B. Operating C. Top D. Supervisory"

"A Middle. This level of management is responsible for the daily functioning of the business. It also serves as a liaison between top-level and supervisory management. Top management develops broad company plans, while supervisory, or operating, management is the management level that implements management plans through direct supervision of workers. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)"

"To manage potential business losses, the first step a company should take is to A. purchase liability insurance. B. identify its risks. C. determine the probability of losses. D. respond to risks."

"B Identify its risks. Risk is the possibility of loss (failure) or gain (success). Risk management involves planning, controlling, preventing, and limiting business losses, as well as enhancing possibilities for gain. The first step in risk management is identifying risks, which are broadly categorized as hazard, financial, operational, and strategic risks. After identifying risks, the business can determine the probability of each risk occurring and the potential losses associated with the risk. Then, the business can determine how to respond to the risk. Depending on the type of risk, the business may decide to avoid, accept, mitigate, or transfer the risk. Transferring risk typically involves purchasing insurance. SOURCE: SM:075 SOURCE: LAP-SM-075—Prepare for the Worst; Expect the Best (Nature of Risk Management)"

"Which of the following is the process that involves bringing together the resources that are needed in the production of goods or services: A. Economizing B. Management C. Research D. Marketing"

"B Management. Management is the process of coordinating resources in order to accomplish an organization's goals. The functions of management include planning, organizing, staffing, directing, and controlling. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Economizing is deciding how scarce resources will be used. Research is an investigation or inquiry. SOURCE: SM:001 SOURCE: LAP-SM-003—Manage This! (Concept of Management)"

"Which of the following is one of the major responsibilities for top-level managers: A. Short-range planning B. Strategic planning C. Tactical planning D. Day-to-day planning"

"B Strategic planning. Strategic planning is long-range planning (three to five years) for the company as a whole. Strategic planning is one of the major responsibilities for top-level managers. Tactical planning is short-range planning (one year) and is usually the responsibility of middle management. Day-to-day planning is the responsibility of first-line, or supervisory, management. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)"

"When assessing risks associated with an upcoming event, sport/event organizations should acquire input from all levels of management and A. public relations agencies. B. vertical staff members. C. financial consultants. D. local personnel inspectors."

"B Vertical staff members. Vertical staff members refers to all employees who are not in management. Ticket takers, security guards, guest relations representatives, and merchandise sales personnel are examples of employees who might provide insight when conducting risk assessment. For example, sales personnel can provide information regarding shoplifting and its risks. By gathering as much information as possible from staff members, sport/event organizations can conduct comprehensive risk assessments in many areas and develop appropriate procedures to handle each situation or issue. Public relations agencies are hired by a business to develop and manage public relations activities for the business. Financial consultants are hired by a business to manage the business's financial matters. Local personnel inspector is not a term widely used by sport/event organizations. SOURCE: SM:076 SOURCE: Fit for Work. (2017, March 13). Risk assessment. Retrieved September 10, 2018, from https://fitforwork.org/blog/risk-assessment/"

"One of the basic risks in marketing is the possibility of __________ loss. A. impersonal B. political C. financial D. promotional"

"C Financial. Financial loss, or the loss of money, is the basic risk in marketing. While it is impossible to eliminate all risk in marketing, there are several ways to reduce risk including developing effective marketing plans, information systems, financial plans, and loss-prevention plans. To the owner of a marketing business, any risk is personal rather than impersonal. Promotional expenditures could cause financial loss in some cases. Most marketing businesses are not involved in political activities. SOURCE: SM:075 SOURCE: FI LAP 8—Prepare for the Worst; Expect the Best (Nature of Risk Management)"

"The organizing function of management is important to a business because it A. defines workplace roles and relationships. B. ensures efficient performance levels. C. encourages creativity and problem solving. D. motivates employees to achieve goals."

A Defines workplace roles and relationships. Organizing is the management function of setting up the way the business's work will be done. It involves establishing levels of authority and assigning responsibilities within the organization. When the business assigns responsibilities, it is defining its employees' roles in the organization and outlining how each role relates to one another. Motivating employees is a directing activity. The type of business and the organizational work culture are factors that determine the degree of creativity and problem solving required, and if these activities are encouraged. The controlling function of management monitors the work effort, which helps ensure that employees are performing their tasks efficiently. SOURCE: SM:064 SOURCE: Archer, C. (n.d.). Five functions of management & leading. Retrieved September 16, 2016, from http://www.ehow.com/info_12025560_five-functions-management-leading.html

"A primary activity in managerial control is A. evaluating. B. delegating. C. coaching. D. forecasting."

A Evaluating. Control is the management function that monitors the work effort. To determine if employees or processes are working effectively and efficiently, managers compare the business's standards or goals with the actual output or desired result to evaluate performance. Delegating is an organizing task that involves assigning authority or responsibility to another person. Coaching is a directing activity and is an on-the-job instructional method in which a manager or supervisor is assigned a "coach" to set goals, give assistance in reaching goals, and give ongoing performance feedback. Forecasting is a planning activity that involves making estimates or predictions about something—sales, income, expenses, etc. SOURCE: SM:004 SOURCE: Management Study Guide. (2016). Controlling function of management. Retrieved September 19, 2018, from http://www.managementstudyguide.com/controlling_function.htm

"Which of the following statements is true about strategic planning: A. It involves planning for the next three to five years. B. It involves short-term planning for the next six months. C. It is a supervisory technique for improving employee performance. D. It is used primarily by departments that do not meet company goals."

A It involves planning for the next three to five years. Strategic planning is long-range planning for the company as a whole and is a responsibility of top-level management. Short-term planning is done by lower level managers. Strategic planning is not a supervisory technique nor is it limited to departments that are not performing well. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)

"Measuring the productivity of a business's employees is an example of A. managerial control. B. formal authority. C. leadership style. D. positional analysis."

A Managerial control. One part of the controlling function involves measuring the performance of the business to determine if it is achieving the established objectives. One type of performance measurement involves measuring the productivity of employees. Managers often establish standards that employees are expected to meet, such as number of items produced per hour or the quality of the items produced. Then, managers use these controls to determine if employees are performing as expected. Formal authority is the authority and responsibility officially assigned to an individual who holds a position and/or a title on an organizational chart. Leadership style is the way or manner in which a leader goes about the task of influencing others. Positional analysis is a study of the tasks and responsibilities of a position and its place in an organization. SOURCE: SM:004 SOURCE: Business Dictionary. (2016). Management control. Retrieved September 16, 2016, from http://www.businessdictionary.com/definition/management-control.html

"Kate says, "I am very pleased with your progress on the project, Devon. Take the rest of the day off, and we'll talk about the next phase of the project tomorrow." What directing activity is Kate performing? A. Motivating an employee B. Establishing a schedule C. Delegating responsibility D. Training a worker"

A Motivating an employee. Directing is the management function of providing guidance to workers and work projects. Directing often involves motivating employees, which is getting employees to strive to achieve management's objectives because they want to achieve them. Managers motivate employees in a variety of ways, such as providing positive feedback, pay raises, and incentives (e.g., time off). Establishing a schedule and delegating responsibility are organizing activities. Training is a staffing activity. SOURCE: SM:066 SOURCE: Management Study Guide. (2017). Importance of directing function. Retrieved September 13, 2017, from http://www.managementstudyguide.com/importance_of_directing.htm

"Change management occurs in a cycle because A. organizations always need to change. B. organizations push for unnecessary change. C. change is harmful for most companies. D. change is difficult to implement."

A Organizations always need to change. Change management occurs in a cycle because change is a constant need for organizations. It is not unnecessary or harmful. Change management may be difficult to implement sometimes, but this does not explain why it occurs in a cycle. SOURCE: SM:096 SOURCE: Gilbert, J. (2009, April 14). The change management life cycle; Involve your people to ensure success. Retrieved September 13, 2017, from http://www.batimes.com/articles/the-changemanagement-life-cycle-involve-your-people-to-ensure-success.html

"What management function is responsible for coordinating resources in ways that maximize efficiency? A. Organizing B. Staffing C. Directing D. Controlling"

A Organizing. The organizing function of management focuses on setting up the way the business's work will be done. Organizing involves determining what resources the business needs and how the various resources will work together to accomplish the business's goals in the most efficient ways. Staffing is the management function of finding workers for the business. Directing is the management function of providing guidance to workers and work projects. Controlling is the management function that monitors the work effort. SOURCE: SM:064 SOURCE: Norman, L. (2015). What are the four basic functions that make up the management process? Retrieved September 23, 2015, from http://smallbusiness.chron.com/four-basicfunctions-make-up-management-process-23852.html

"What management function is responsible for coordinating resources in ways that maximize efficiency? A. Organizing B. Staffing C. Directing D. Controlling"

A Organizing. The organizing function of management focuses on setting up the way the business's work will be done. Organizing involves determining what resources the business needs and how the various resources will work together to accomplish the business's goals in the most efficient ways. Staffing is the management function of finding workers for the business. Directing is the management function of providing guidance to workers and work projects. Controlling is the management function that monitors the work effort. SOURCE: SM:064 SOURCE: Norman, L. (2018, June 29). What are the four basic functions that make up the management process? Retrieved September 19, 2018, from http://smallbusiness.chron.com/four-basic-functions-make-up-management-process23852.html

"What is an advantage of managerial planning? A. Reduces uncertainty B. Eliminates errors C. Decreases the need to delegate work D. Lessens the need to monitor employees"

A Reduces uncertainty. Planning is the management function of deciding what needs done and how it will be accomplished. Planning is a futuristic process, which means that managers are forced to think ahead about needed resources, risks, and desired outcomes. Thinking ahead or planning reduces uncertainty because managers are evaluating various scenarios to determine the best way to achieve goals. Planning may reduce errors but does not eliminate them. Delegating work is an organizing activity, which involves assigning authority or responsibility for something to another person. Planning does not lessen the need to monitor employees, which is a controlling activity. SOURCE: SM:063 SOURCE: HubPages, Inc. (2018, February 16). Importance of planning. Retrieved September 18, 2018, from http://youcanwin.hubpages.com/hub/Importance-of-Planning

"Serena is determining the specific activities needed to carry out a year-long advertising campaign. Serena is engaged in __________ planning. A. tactical B. strategic C. contingency D. long-term"

A Tactical. Tactical planning is short-range planning—one year or less—and involves determining the specific actions the business needs to take to carry out its strategic plan, which is more general in nature. A contingency plan is an alternative course of action that a business implements when it is not feasible to carry out the original plan. Long-term planning involves setting goals that will take the business more than a year to achieve. SOURCE: SM:063 SOURCE: Brydson, D. (2017). Strategic and tactical planning: Understanding the difference. Retrieved September 13, 2017, from http://smallbizlink.monster.com/training/articles/855-strategic-andtactical-planning-understanding-the-difference

"Why do top-level managers usually receive high salaries? A. Their decisions affect the entire company. B. They are required to attend a great many meetings. C. They have more experience than others in the company. D. Their responsibilities involve hands-on supervision."

A Their decisions affect the entire company. Top-level management is composed of all managers who are responsible for the entire company. They receive higher salaries than other managers because they make important decisions that affect the whole company. They may or may not have more experience than others in the company. Attending meetings would not influence salaries. Top-level management is not involved in hands-on supervision. SOURCE: SM:001 SOURCE: LAP-SM-003—Manage This! (Concept of Management)

"What management function involves motivating and encouraging an employee? A. Planning B. Directing C. Organizing D. Recruiting"

B Directing. Directing is the management function of providing guidance to workers and work projects. Directing activities include motivating, leading, and disciplining workers. When a manager encourages an employee to do something, the manager is performing a directing activity. Organizing is the management function of setting up the way the business's work will be done. Recruiting is a staffing activity. Staffing is the management function of finding workers for the business. SOURCE: SM:066 SOURCE: Management Study Guide. (2013). Directing function of management. Retrieved August 18, 2014, from http://www.managementstudyguide.com/directing_function.htm

"What management function involves motivating and encouraging an employee? A. Planning B. Directing C. Organizing D. Recruiting"

B Directing. Directing is the management function of providing guidance to workers and work projects. Directing activities include motivating, leading, and disciplining workers. When a manager encourages an employee to do something, the manager is performing a directing activity. Organizing is the management function of setting up the way the business's work will be done. Recruiting is a staffing activity. Staffing is the management function of finding workers for the business. SOURCE: SM:066 SOURCE: Management Study Guide. (2016). Directing function of management. Retrieved September 16, 2016, from http://www.managementstudyguide.com/directing_function.htm

"Which of the following levels of managers spend most of their time staffing, directing, and controlling the day-to-day activities of the business: A. Mid-level B. First-line C. Executive D. Regional"

B First-line. First-line or supervisory managers work directly with the employees who carry out the business's routine work. First-line managers report to the mid-level managers. Mid-level managers are responsible for implementing the goals set by executive (top-level) managers, and are the link between supervisory and executive (top-level) managers. Mid-level managers report to the executive managers. Executive managers are responsible for the whole organization and spend most of their time setting organizational goals and conducting strategic planning. A regional manager manages employees in a specific location or region. Regional managers are usually considered mid-level managers. SOURCE: SM:001 SOURCE: LAP-SM-003—Manage This! (Concept of Management)

"What must occur before any management functions can be carried out? A. Analyzing B. Planning C. Processing D. Brainstorming"

B Planning. Planning is the management function of deciding what will be done and how it will be accomplished. Brainstorming is a creative-thinking technique that is often used during the planning process. Deciding what will be done involves establishing objectives. After establishing objectives, the business can implement processes to achieve those objectives. The business analyzes its performance to determine if it achieved its objectives. SOURCE: SM:063 SOURCE: CliffsNotes. (2016). Functions of managers. Retrieved September 16, 2016, from https://www.cliffsnotes.com/study-guides/principles-of-management/the-nature-ofmanagement/functions-of-managers

"As a manager, Pablo is taking steps to correct a problem that is affecting the business's productivity. Which of the following types of control is Pablo using: A. Preliminary B. Rework C. Contingency D. Functional"

B Rework. Control is the management function that monitors the work effort. Because Pablo is initiating corrective action to fix a problem or output, he is engaging in the rework control process. Preliminary control is a form of control in which the manager takes action to prevent problems from occurring. Developing a contingency plan or an alternative course of action is often part of preliminary control process. Functional is not a term that describes a form of control. Control refers to the management function that monitors the work effort. SOURCE: SM:004 SOURCE: Cook, C. (2011). Control systems: Financial and human. Retrieved September 23, 2015, from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&ve d=0CC0QFjAEahUKEwjzpKB1o3IAhVOCpIKHa4LBuI&url=http%3A%2F%2Finstructor.mstc.edu%2Finstructor%2Fcbe rret%2FOnline%2520Management%2FTextbook%2520Powerpoints%2FPPT_ch13.ppt&usg =AFQjCNHPoiLcpiljRulB5mO1oi-2wSP9Xw&bvm=bv.103388427,d.aWw

"Which management function is described in the following situation: Christy Chen determines the type of workers she needs, locates qualified applicants, selects those to be hired, and assigns the new hires to a work area. A. Controlling B. Staffing C. Directing D. Planning"

B Staffing. Staffing is the management function of finding workers for the business. When a manager staffs the firm, s/he is locating workers to fill job positions. Controlling is the management function that monitors the work effort. Directing is the management function of providing guidance to workers and work projects. Planning is the management function of deciding what will be done and how it will be accomplished. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)

"The primary purpose of the organizing function of management is to provide A. leverage. B. structure. C. insight. D. motivation."

B Structure. The organizing function of management focuses on setting up the way the business's work will be done. Organizing provides the business with structure—a systematic, orderly way for carrying out activities to accomplish the business's goals. Insight can help managers develop the best structure for the business. Leverage refers to the amount of power one person holds during a negotiation. Motivation is directing activity. SOURCE: SM:064 SOURCE: Daft, R.L., & Marcic, D. (2009). Understanding management: Instructor's edition (6th ed.) [pp. 246-247]. Mason, OH: South-Western Cengage Learning.

"What are the three primary characteristics of an effective control system in a business? A. Responsive, flexible, and transferable B. Suitable, understandable, and timely C. Relevant, intangible, and rigid D. Rigid, economical, and reactionary"

B Suitable, understandable, and timely. Control is a management function that monitors the work effort. For managers to control business activities in an effective manner, control methods must be applicable for the situation (e.g., a graphic artist performs different activities than the plant manager), understandable so employees perform activities correctly, and timely (e.g., products are not shipped before they are packed appropriately). Generally, effective control systems are also economical (cost effective) and relevant. The rigidity, flexibility, transferability, responsiveness, and tangibility of the control system are often dependent on the situation. SOURCE: SM:004 SOURCE: CliffsNotes. (2016). Effective organizational control systems. Retrieved September 13, 2017, from https://www.cliffsnotes.com/study-guides/principles-of-management/control-the-linkingfunction/effective-organizational-control-systems

"Which of the following is a true statement about human resources needs: A. They are harder to meet in high-tech industries. B. They are always changing. C. They are the same at every business. D. There is no way to know when they will change."

B They are always changing. Human resources needs are always changing. Managers look toward several different indicators to predict upcoming changes. HR needs are not necessarily more difficult to meet in high-tech industries, and they vary from business to business. SOURCE: SM:065 SOURCE: SM LAP 4—Dream Team Maker (Staffing)

"A primary activity of the directing function of management is A. evaluating performance. B. identifying skills. C. initiating action. D. establishing authority"

C Initiating action. Directing is the management function of providing guidance to workers and work projects. Providing guidance or instruction about the proper way to perform a task is initiating action. Skill identification is a staffing activity. Performance evaluation is a controlling activity. Establishing a line of authority is an organizing activity. SOURCE: SM:066 SOURCE: Management Study Guide. (2008-2018). Importance of directing function. Retrieved September 19, 2018, from http://www.managementstudyguide.com/importance_of_directing.htm

"One activity associated with the directing function of management is A. determining tasks. B. establishing goals. C. instructing employees. D. interviewing applicants"

C Instructing employees. Directing is the management function of providing guidance to workers and work projects. When managers provide employees with guidance, they are often providing employees with instructions about performing tasks in a certain sequence or manner. Establishing goals is a planning activity. Determining tasks is an organizing activity. Interviewing applicants is a staffing activity. SOURCE: SM:066 SOURCE: Management Study Guide. (2015). Directing function of management. Retrieved September 23, 2015, from http://www.managementstudyguide.com/directing_function.htm

"Which of the following employees would most likely be described as "innovative" by his/her supervisor: A. Elizabeth, because she gets frustrated when she needs to learn new skills B. Madison, because she prefers to stick to traditional ideas and processes C. Jake, because he is always willing to adapt to changes during a project D. Anthony, because he is usually quiet during brainstorming sessions"

C Jake, because he is always willing to adapt to changes during a project. To innovate new ideas and processes, employees must be willing to adapt to unforeseen circumstances. This flexibility is essential to successfully innovate. Sticking to traditional ideas and processes, getting frustrated with learning new skills, and staying quiet during brainstorming sessions are all indications that these employees are not likely to be called innovative by their supervisors. SOURCE: SM:094 SOURCE: Bagley, R. (2014, January 15). The 10 traits of great innovators. Retrieved September 19, 2016, from http://www.forbes.com/sites/rebeccabagley/2014/01/15/the-10-traits-of-greatinnovators/#5429e812ed50

"A common problem of first-level supervisors is that they A. want to move up to mid-level. B. are unable to do long-range planning. C. lack training in management techniques. D. are unfamiliar with the work they supervise."

C Lack training in management techniques. Businesses often promote workers to supervisory jobs as a reward for good performance. These new supervisors often need training to help them assume supervisory responsibilities. First-level supervisors usually are familiar with the work because they have done it themselves. Long-range planning involves planning for the entire company and is a responsibility of top management, not the first-level supervisor. Wanting to move up to mid-level management is not a problem but a legitimate career goal. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)

"Which of the following is a primary staffing consideration when a manager decides to hire a new employee: A. Communication methods B. Investment goals C. Necessary skills D. Reimbursement procedures"

C Necessary skills. Staffing is the management function of finding workers for a business. An important aspect of staffing involves hiring employees to do the work. To hire qualified employees, the manager must know what skills are needed to perform the work. Investment goals, communication methods, and reimbursement procedures are not primary staffing considerations when a manager decides to hire a new employee. SOURCE: SM:065 SOURCE: CliffsNotes. (2015). Staffing as a management function. Retrieved September 23, 2015, from http://www.cliffsnotes.com/study-guides/principles-of-management/staffing-and-humanresource-management/staffing-as-a-management-function

"What is the primary purpose of managerial planning? A. To evaluate forecasts B. To implement activities C. To prepare for the future D. To change processes"

C To prepare for the future. Planning is the management function of deciding what will be done and how it will be accomplished, which is preparing for the future. Preparing forecasts are activities that are often performed during the planning process. Implementing activities and changing processes are part of the managerial controlling function. SOURCE: SM:063 SOURCE: Management Study Guide. (2015). Planning function of management. Retrieved September 23, 2015, from http://www.managementstudyguide.com/planning_function.htm

"Which task in the staffing process ensures that employees are knowledgeable and productive? A. Determining need B. Recruiting C. Training and developing D. Developing compensation plans"

C Training and developing. Training and developing is a part of staffing that ensures that employees are knowledgeable and productive. It includes training employees in new job positions as well as providing ongoing professional development. Recruiting is the process of attracting qualified candidates to the company. Determining need involves keeping constant tabs on what job positions need to be filled and what the descriptions and specifications are for those open positions. Developing compensation plans involves paying and providing benefits for employees. SOURCE: SM:065 SOURCE: LAP-SM-004—Dream Team Maker (Staffing)

"For successful innovation in the workplace, employees should have a desire to learn and be willing to A. suppress ideas. B. follow procedures. C. exhibit bias. D. accept change."

D Accept change. Innovation is the process of creating new or more effective products, processes, services, technologies, or ideas. Creating something new requires change. When a business encourages its employees to learn about new processes, customer wants, market needs, and trends, innovation is more likely to occur. Exhibiting bias and suppressing ideas may have a negative effect on innovation. Following certain types of business procedures is important for creating a safe and fair work environment and does not necessarily affect innovative processes. SOURCE: SM:094 SOURCE: Free Management Library. (n.d.). Cultivating innovation in the workplace. Retrieved September 23, 2015, from http://managementhelp.org/innovation/

"When managers have the ability to understand how all of the functions of the company are interrelated, they possess A. innovative ideas. B. interpersonal skills. C. technical competence. D. conceptual skills."

D Conceptual skills. Conceptual skills involve the ability to see the "big picture" and think about how things will work together. The ability to see the "big picture" and how things fit together facilitates sound decision making, idea generation, and creative problem-solving activities because the manager understands how various changes can impact other departments and employees. Interpersonal skills involve the ability to communicate, interact, and build relationships with others. Technical skills or competence is the ability to understand the specialized aspects of jobs. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)

"Inspecting raw materials before using them to produce finished goods is an example of ___________ control. A. standard B. concurrent C. feedback D. feedforward"

D Feedforward. Control is the management function of monitoring the work effort. Managers monitor the work effort in many ways. Feedforward control involves taking preventative measures and occurs before a business activity is performed. Feedforward control often involves establishing standards (e.g., quality of materials used in production) and procedures for carrying out the activity. Concurrent control involves monitoring the work while the employee performs it. This allows the manager to determine if the employee is performing the work correctly and efficiently. Feedback controls occur after a business activity has been completed. A standard is a control tool and a measure for determining the level of excellence of something. SOURCE: SM:004 SOURCE: Daft, R.L., & Marcic, D. (2009). Understanding management: Instructor's edition (6th ed.) [pp. 561-564]. Mason, OH: South-Western Cengage Learning.

"The process of managerial planning typically helps to A. guarantee positive results. B. improve interpersonal relationships. C. influence employees' adaptability. D. maximize resource efficiency."

D Maximize resource efficiency. Planning is the management function of deciding what will be done and how it will be accomplished. Effective planning helps the business to determine how to allocate all of its resources—human, financial, equipment—in the most efficient and cost-effective ways. Businesses are more likely to achieve their goals when they plan, but planning does not guarantee positive results. Planning does not necessarily improve interpersonal relationships, nor does it influence employees' adaptability. SOURCE: SM:063 SOURCE: Robbins, S.P., & Coulter, M. (2007). Management (9th ed.) [p. 185]. Upper Saddle River, NJ: Pearson Prentice Hall.

"What occurs during the first stage of the change-management life cycle? A. Organizations carry out a strategic plan for implementing desired change. B. Organizations engage in dialogue to determine how to best implement change. C. Organizations agree on a strategic plan for implementing the desired change. D. Organizations identify and communicate the need for change to employees."

D Organizations identify and communicate the need for change to employees. The first stage of the change-management life cycle involves realizing the need for change and explaining this to employees in an understandable manner. Engaging in dialogue to determine how to best implement change, agreeing on a strategic plan for implementing change, and carrying out a strategic plan for implementing change are all actions taken in subsequent stages of the change-management life cycle. SOURCE: SM:096 SOURCE: TwentyEighty Strategy Execution, Inc. (2015). The change management life cycle: How to involve your people to ensure success at every stage. Retrieved September 18, 2018, from https://www.strategyex.com/~/media/Files/Public-Site/US/POVs/ChangeManagement

"The number of levels of management that a business needs usually depends upon the A. location of the facility. B. age of the employees. C. goals of the company. D. size of the business."

D Size of the business. There are different levels of management in almost all businesses. The number of levels the business needs usually depends on the size of the business. A large, national business would have managers at all levels, while a small, family-owned business might have only one level of management. The number of levels of management does not depend on the age of the employees, the goals of the company, or the location of the facility. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)

"Which of the following is the management function that focuses on matching the appropriate person with the necessary skills for a specific job: A. Leading B. Interviewing C. Coordinating D. Staffing"

D Staffing. Staffing is the management function of finding workers for a business. Recruiting, interviewing, hiring, and training are staffing activities. Leading is an activity that involves influencing and motivating others to take a certain course of action. Coordinating is an organizing activity that involves bringing resources together to accomplish a goal. SOURCE: SM:065 SOURCE: Management Study Guide. (2013). Functions of management. Retrieved August 18, 2014, from http://www.managementstudyguide.com/management_functions.htm

"Melanie is showing a group of new employees how to perform work-related tasks. What staffing activity is Melanie performing? A. Appraising B. Recruiting C. Interviewing D. Training"

D Training. Staffing is the management function of finding workers for the business. A primary staffing function involves training the employees to perform the work correctly. Recruiting is the staffing function of finding workers to perform the work. Interviewing involves meeting with job applicants to assess their skills and to determine if they are a good fit for open positions. Appraising is an activity that involves evaluating an employee's work performance. SOURCE: SM:065 SOURCE: Management Study Guide. (2017). Functions of management. Retrieved September 13, 2017, from http://www.managementstudyguide.com/management_functions.htm