Mgt300
True / False Questions
1. (p. 37) The practice of management is both an art and a science.
TRUE
Certainly management can be an art. Great managers, like great painters or
actors, have the right mix of intuition, judgment, and experience. But
management is also a science. That is, rather than being performed in a seat-of-
the-pants, make-it-up-as-you-go-along kind of way—which can lead to big
mistakes—management can be approached deliberately, rationally,
systematically.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
2. (p. 37) Evidence-based management means translating principles from
promising new theories into organizational practice.
FALSE
Evidence-based management means translating principles based on best
evidence into organizational practice, bringing rationality to the decision-making
process.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
Chapter 01
The Exceptional Manager: What You Do, How You Do It
True / False Questions
Chapter 02 Management Theory: Essential Background for the
Successful Manager Answer Key
1. Virginia Rometty, CEO of IBM, believes that her success is due in part to her
ability to take risks.
True False
2. Exceptional managers have a gift that cannot be taught.
True False
3. Management includes integrating the work of people through planning,
organizing, leading, and controlling the organization's resources.
True False
4. To be efficient in management means to use resources wisely and cost
effectively.
True False
5. Efficiency and effectiveness are terms used interchangeably and equivalently
in management.
True False
6. Automated telephone systems are typically both very effective and very
efficient.
True False
7. An effective manager has a multiplier effect on the organization, meaning his
or her influence is multiplied beyond the results achievable by just one
person.
True False
8. John Hammergren's compensation of $145 million in 2010 as CEO of health
care technology firm McKesson is typical for CEOs in North America today.
True False
9. Studying management is likely to help you once you are in a manager role, but
is unlikely to be beneficial before then.
True False
10.One of the payoffs of studying management is an improved understanding of
how to deal with organizations as a customer.
True False
11.One of the rewards of being a manager is that you can build a catalog of
successful products or services.
True False
12.If you enjoy mentoring and helping others to grow, management is a great
job.
True False
13.Most people prefer to have a combination of a high level of skill and low level
of challenge while at work.
True False
14.Organizations can gain a competitive advantage by matching their competition
in terms of quality, responsiveness, and efficiency.
True False
15.The decline in revenue in the newspaper industry is due to a sharp drop in the
number of people reading American newspapers.
True False
16.When managing for competitive advantage, the first "law" of business is "take
care of the shareholders."
True False
17.Taking care of the customer applies equally well to nonprofit and for-profit
businesses.
True False
18.In business, innovation is defined as finding ways to deliver new or better
goods or services.
True False
19.Whereas a generation ago organizations rewarded employees for their
efficiency, today the emphasis is on length of service.
True False
20.Despite continued immigration, the proportion of racial or ethnic groups in the
United States is expected to be stable well into the next century.
True False
21.When he or she does not speak the local language, a manager should rely on
gestures and symbols since their consistency of meaning provides a form of
universal communication throughout the world.
True False
22.The Internet is a global network of independently operating but interconnected
computers, linking hundreds of thousands of smaller networks around the
world.
True False
23.The buying and selling of goods or services over computer networks is known
as e-exchange.
True False
24.One reason e-business is so important is that the Internet dramatically lowers
the cost of communication.
True False
25.Text messages and documents transmitted over a computer network are called
cyber-messages.
True False
26.Project management software allows managers to plan and schedule the
people, costs, and resources to complete a project on time.
True False
27.A problem typically associated with interconnected databases on the Internet
is the potential to overwhelm employees with too much information.
True False
28.One advantage of e-business is that organizations and teams are no longer as
bound by time zones and locations.
True False
29.Viral staffing is the term used to describe working from home or remote
locations using a variety of information technologies.
True False
30.Meetings that are conducted via telecommuting use video and audio links
along with computers to let people in different locations see, hear, and talk
with one another.
True False
31.Collaborative computing involves using state-of-the-art computer software and
hardware to help people work better together.
True False
32.Integration management is the implementation of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
True False
33.In recent years, white-collar crime in the United States has become very rare.
True False
34.The Josephson Institute suggests a TEAM (Teach, Enforce, Advocate, Model)
approach for parents to encourage good financial habits in children.
True False
35.Unsustainable business practices have resulted from an often accepted but
untrue notion that natural resources are limitless.
True False
36.Having to attend too many meetings or feeling a lack of respect are typical
reasons that some people don't find being a manager fulfilling.
True False
37.One's experience in management remains very insulated from the company's
culture.
True False
38.The "management process" is sometimes called the "four management
functions."
True False
39.When Barrett, a college administrator, is determining which of several degree
programs his campus will offer, he is involved in the management function of
controlling.
True False
40.Organizing is the arranging of tasks, people, and other resources to accomplish
work.
True False
41.When Carla revises the waitstaff schedule at her restaurant to have more
personnel available during the newly busy breakfast rush, she is engaged in
organizing.
True False
42.When Shannon reviews reports and determines that she has four
underperforming salespeople with whom she will need to talk, she is
performing the controlling managerial function.
True False
43.When a manager is motivating others to work hard to achieve the
organization's goals, she is engaged in the management function of leading.
True False
44.Tucker recently attended a dinner for the new CEO. He came away feeling very
excited and anxious to do his part to help the company achieve its goals. In
this instance, the CEO was performing the management function known as
planning.
True False
45.According to Peter Drucker, "knowledge workers" have very little technical
skill.
True False
46.The traditional organizational model is most often represented by a funnel
shape.
True False
47.There are managers at three levels of an organization: top, middle, and first-
line.
True False
48.First-line managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it.
True False
49.Mingjin is a branch manager in Albuquerque who reports to the CEO in Denver
and to whom three other managers at her facility report, so she would be
termed a middle manager.
True False
50.A first-line manager directs the daily tasks of nonmanagerial personnel.
True False
51.A vice president of production is a general manager.
True False
52.A general manager typically oversees several departments within an
organization.
True False
53.The main purpose of a nonprofit organization is to offer services to some
clients.
True False
54.According to Mintzberg's research, managers rely more on verbal than on
written communication because of the time it takes to accomplish the latter.
True False
55.Since the 1960s research conducted by Mintzberg, the typical general
manager has reduced her work week to the traditional 40 hours.
True False
56.Most managers require lengthy, uninterrupted periods during the regular
workday to accomplish their work and make themselves unavailable to
subordinates to create them.
True False
57.Time and task management are major challenges for every manager.
True False
58.According to Mintzberg, the three broad types of managerial roles include
interpersonal, analytical, and critical.
True False
59.Good executive functioning includes heavy multitasking and answering every
e-mail nearly instantly.
True False
60.The monitor function is an example of the informational roles often played by
managers.
True False
61.In interpersonal managerial roles, a manager acts as entrepreneur,
disturbance handler, or negotiator.
True False
62.Entrepreneurship means taking risks to try to create a new enterprise.
True False
63.Two types of entrepreneurship include the extrapreneur and the intrapreneur.
True False
64.Successful entrepreneurial companies have been called "gazelles" because of
a characteristic they possess, namely an acute sensitivity to danger in the
environment.
True False
65.Entrepreneurs typically have a much higher need for achievement and a
stronger belief in personal control of destiny than do typical managers.
True False
66.Opportunity entrepreneurs are those who start their own business out of a
burning desire rather than because they lost a job.
True False
67.Researcher Robert Katz determined that through education and experience
managers acquire technical, conceptual, and human skills.
True False
68.Having required technical skills is most important among top managers at the
highest leadership levels.
True False
69.Human skills become less critical as one's career progresses, and are least
important for top managers.
True False
Multiple Choice Questions
70.One way to think of ______ is "the art of getting things done through people."
A. supervisi
on
B. motivati
on
C. manageme
nt
D. leadershi
p
E. strate
gy
71.The pursuit of organizational goals efficiently and effectively by integrating the
work of people through planning, organizing, leading, and controlling the
organization's resources is called
A. employme
nt.
B. career
planning.
C. competitive
advantage.
D. manageme
nt.
E. strategic
planning.
72.A group of people who work together to achieve some specific purpose is/are
called
A. manager
s.
B. a
collaboration
.
C. a
team.
D. an
organization.
E. a
community.
73.Tracy, a manager at a busy warehouse, was slow to hire new employees,
preferring instead to encourage improvements from his current staff. He
carefully watched his other costs too, performing equipment maintenance on a
regular basis to improve its lifespan. Tracy would best be described as a(n)
_____ manager.
A. efficie
nt
B. ethic
al
C. innovati
ve
D. effecti
ve
E. micr
o
74.To be ______ as a manager means to make the right decisions and successfully
carry them out to achieve goals.
A. producti
ve
B. ethic
al
C. efficie
nt
D. effecti
ve
E. innovati
ve
75.The _________ effect states that a manager's influence on the organization has
implications far beyond the results that can be achieved by one person acting
alone.
A. proliferati
on
B. multipli
er
C. manageri
al
D. hal
o
E. additiv
e
76.According to a Fortune article, the scarcest, most valuable resource in business
is not financial capital but
A. renewable
resources.
B. government
support.
C. highly innovative
technology.
D. a young
workforce.
E. skilled, effective
managers.
77.Which of the following is the most likely payoff of studying management as a
discipline?
A. You will understand how to brand your
organization.
B. You will understand how to relate to and interact with your supervisors and
co-workers.
C. You will understand how to manage your family and close friends more
effectively.
D. You will understand how to deal with the media in
a crisis.
E. You will understand how to advance your career
without guilt.
78.Which of the following is not a reward for practicing management?
A. You can build a catalog of successful products or
services.
B. You and your employees can experience a sense of
accomplishment.
C. You can stretch your abilities and magnify your
range.
D. You can be rewarded with money and status for your
efforts.
E. You can become exempt from many of society's ethical
standards.
79.Which of the following is one of the seven primary challenges facing managers
today?
A. Maintaining good records of what worked in
the past.
B. Dealing with a stubbornly static and immobile
environment.
C. Staying ahead of competitors through corporate
espionage.
D. Managing to achieve one's own happiness and life
goals.
E. Collaborating with
competitors.
80.Petra is a new manager for a household products company, after getting a
promotion from an administrative job that she found boring. But now she
frequently experiences ______, like when she had to explain the new product
her team is developing to the CEO and several board members. As
psychologist Csikzentmihalyi predicts, her ideal state would be an emotional
zone between that and boredom.
A. overloa
d
B. anxiet
y
C. immodes
ty
D. fea
r
E. pressur
e
81.The ability of an organization to outperform others by producing goods or
services more effectively than its competitors is called its
A. competitive
advantage.
B. qualit
y.
C. efficienc
y.
D. innovatio
n.
E. effectivenes
s.
82.Which of the following is not an area in which an organization must stay ahead
of its competitors to achieve competitive advantage?
A. Environmental
action
B. Being responsive to
customers
C. Innovati
on
D. Qualit
y
E. Efficienc
y
83.Which of the following is the most likely reason for the decline in fortunes of
American newspapers, and their inability to exploit their competitive
advantage?
A. A poorer standard for news-
gathering.
B. Relying too heavily on advertising, rather than customer subscriptions,
for revenue.
C. Decline in newspaper readership over the last 70
years.
D. Preference of customers for getting news in a nonverbal
format.
E. An increase in salaries and material costs within the
industry.
84.In seeking competitive advantage, the first law of business is to
A. take care of your
shareholders.
B. take care of your
stakeholders.
C. take care of the
customer.
D. take care of the
environment.
E. take care of your
employees.
85.Finding ways to deliver new or better goods or services is called
A. advanceme
nt.
B. streamlinin
g.
C. innovatio
n.
D. efficienc
y.
E. quality
control.
86.Customers are likely to put up with poor-quality products only if your
organization is
A. underperforming in
innovation.
B. using computerized customer
service.
C. the only one of its
kind.
D. in a very competitive
industry.
E. lacking strong environmental
policies.
87.By mid-century, the percentage of Hispanics (of any race) in the U.S.
population is expected to ______, and the percentage of non-Hispanic whites is
expected to ______.
A. stay the same;
increase
B. double;
decrease
C. decrease;
increase
D. double; increase
slightly
E. stay the same;
decrease
88.The concept of a "flat" world means
A. employees are learning to suppress negative emotion in the
workplace.
B. corporations are developing a preference for a new, flatter
organizational structure.
C. a recession now slows the economies of most nations
simultaneously.
D. globalization has leveled the playing field for emerging
economies.
E. businesspeople are now more conservative in their approach to
investment.
89.Though many advantages have been linked to e-business, studies show that
employees are less productive when dealing with excessive ______ volume.
A. videoconferenci
ng
B. meetin
g
C. e-
mail
D. telecommuti
ng
E. collaborative
computing
90.Paul has been tasked with creating a new microsite on his engineering
company's intranet. The site will house company-approved design procedures
and efficiency strategies for all employees. Creating the design microsite is a
form of
A. strategy
management.
B. e-
management
.
C. project
management.
D. knowledge
management.
E. morale
management.
91.As a sales manager, you would have to decide how much leeway to give your
subordinates in giving gifts to prospective clients in foreign countries. This is
an example of the challenge of managing for
A. your own
happiness.
B. globalizatio
n.
C. ethical
standards.
D. sustainabili
ty.
E. diversit
y.
92.Economic development that meets the needs of the present without
compromising the ability of future generations to meet their own needs is
known as
A. environmentalis
m.
B. globalizatio
n.
C. ethic
s.
D. the bottom
line.
E. sustainabili
ty.
93.The company's culture most directly affects
A. the number of competitors a
firm has.
B. the number of products a company
makes.
C. the amount charged for the firm's products or
services.
D. the manager's
happiness.
E. the education of the
workforce.
94.Which of the following is one of the four principal functions of management,
also known as the management process?
A. Organizin
g
B. Schedulin
g
C. Motivati
ng
D. Executin
g
E. Monitori
ng
95.Setting goals and deciding how to achieve them is called
A. controllin
g.
B. managin
g.
C. plannin
g.
D. organizin
g.
E. leadin
g.
96.When a manager at a software company is determining whether to hire more
full-time programmers or possibly more temporary ones, he is engaged in
A. plannin
g.
B. organizin
g.
C. managin
g.
D. leadin
g.
E. controllin
g.
97.Because the various groups that help a manager reach company goals often
have different needs and wants, resolving conflicts is an essential part of which
management function?
A. Plannin
g
B. Clarifyin
g
C. Organizin
g
D. Controlli
ng
E. Leadin
g
98.A general manager at a department store is giving an important presentation
to several departments to engage the whole staff in a new customer retention
effort beginning this month. This is an example of
A. plannin
g.
B. organizin
g.
C. leadin
g.
D. controllin
g.
E. marketin
g.
99.Monitoring performance and taking corrective action as needed is called
A. improvisin
g.
B. plannin
g.
C. organizin
g.
D. improvin
g.
E. controllin
g.
100
.
Aziz immediately halted production at his facility after seeing a report
indicating the last batch had a high level of product defects, and restarted
work only when the problem was discovered and fixed. Aziz is engaged in
which management function?
A. Repairin
g
B. Organizin
g
C. Monitori
ng
D. Controlli
ng
E. Executin
g
101
.
Management theorist Peter Drucker compared the workplace of the future to
a
A. pyrami
d.
B. symphony
orchestra.
C. flattened
oval.
D. chess
game.
E. warshi
p.
102
.
Tonya is a structural engineer who works for a large international firm. She
designs the concrete and steel structures that support even the largest and
most complex buildings. Because of her high level of technical skills, Tonya is
best referred to as a
A. knowledge
worker.
B. blue-collar
worker.
C. self-managed
worker.
D. first-line
worker.
E. first-line
manager.
103
.
In the traditional management pyramid, managers are classified into ______
levels.
A. tw
o
B. thre
e
C. fou
r
D. fiv
e
E. si
x
104
.
A senior vice president is an example of what level of manager?
A. first-
line
B. to
p
C. leadershi
p
D. middl
e
E. mer
it
105
.
Managers who are future oriented, dealing with uncertain, highly competitive
conditions, and who stay alert to long-run opportunities and problems are
most likely to be
A. first-line
managers.
B. functional
managers.
C. middle
managers.
D. general
managers.
E. top
managers.
106
.
Managers who implement the policies and plans determined at the highest
levels and coordinate the activities of lowest-level managers are called
A. executional
managers.
B. first-line
managers.
C. middle
managers.
D. functional
managers.
E. general
managers.
107
.
Derrick is a clinic director running a downtown Chicago facility for a large
nonprofit health organization. He receives most of his strategic direction from
the organization and supervises several department managers in his
workplace. Derrick is a
A. first-line
manager.
B. middle
manager.
C. tactical
manager.
D. functional
manager.
E. coordination
manager.
108
.
Managers who make short-term operating decisions and direct the daily tasks
of the nonmanagerial employees are called
A. first-line
managers.
B. middle
managers.
C. general
managers.
D. functional
managers.
E. initial
managers.
109
.
Angelina is a shift supervisor for a successful supermarket chain, directing the
work of as many as eight other cashiers. She is a(n)
A. directional
manager.
B. middle
manager.
C. first-line
manager.
D. general
manager.
E. area
manager.
110
.
A ______ manager is responsible for just one organizational activity.
A. speciali
st
B. first-
line
C. singul
ar
D. function
al
E. top-
level
111
.
The United Way and Nature Conservancy are examples of which type of
organization?
A. For-
profit
B. Nonpro
fit
C. Administrati
ve
D. Mutual-
benefit
E. Aid-
based
112
.
Which type of nonprofit organization offers services to all clients within its
jurisdiction?
A. Administrati
ve
B. Mutual-
benefit
C. Aid-
based
D. Authori
ty
E. Commonwe
al
113
.
Abbie recently joined a professional organization for certified public
accountants, and was happy that her firm offered to pay the dues. This type of
group is an example of a(n) ______ organization.
A. for-
profit
B. nonpro
fit
C. administrati
ve
D. mutual-
benefit
E. aid-
based
114
.
The primary measure of success of a nonprofit organization is typically
A. the total
revenue.
B. ROI
.
C. the effectiveness of the services
delivered.
D. the market
share.
E. the number of services
available.
115
.
Which of the following statements about a manager's worklife is not among
the findings of management scholar Henry Mintzberg?
A. Managers work long
hours.
B. Most managerial tasks require lengthy periods of time for
completion.
C. Managers rely more on verbal than on written
communication.
D. Managers work at an intense
pace.
E. Managers' work is characterized by
variety.
116
.
According to Mintzberg's work, which of the following is one of the three broad
types of roles that managers play?
A. Analytic
al
B. Profession
al
C. Interdepende
nt
D. Disciplina
ry
E. Interperson
al
117
.
Which of the following is an example of a decisional role that managers play?
A. Figurehea
d
B. Spokesperso
n
C. Resource
allocator
D. Liaiso
n
E. Monit
or
118
.
In a ______ role, you should be constantly alert for useful information, whether
gathered from newspaper stories about the competition or discovered in
conversations with subordinates.
A. figurehe
ad
B. negotiat
or
C. spokespers
on
D. monit
or
E. disseminat
or
119
.
Matthew, the president of a diesel engine research firm, was welcoming
potential partners from a large automobile corporation in Europe. Before
handing them off to his technical counterpart, he gave them an extensive tour
of his laboratory and field-testing operations as part of which managerial
role?
A. Figurehea
d
B. Analytic
al
C. Monit
or
D. Visionar
y
E. Disseminat
or
120
.
After a large chemical fire, Eric took responsibility publicly for the failure of his
employees to follow workplace safety standards, and indicated that several of
them had been placed on leave. Here, Eric was acting in a ______ role.
A. leadershi
p
B. negotiat
or
C. liaiso
n
D. authori
ty
E. entreprene
ur
121
.
Two different project teams recently submitted proposals for very promising
ideas, but the budget will not allow both to go forward this year. Amanda is
making the tough decisions about which should be the focus this time, as a
part of her ______ role.
A. leadershi
p
B. disseminat
or
C. resource
allocator
D. negotiat
or
E. entreprene
ur
122
.
Colin takes notes at executive council meetings and prepares summaries to
present to middle managers and supervisors at a monthly meeting. This task
is part of a(n) _______ role.
A. disseminat
or
B. entreprene
ur
C. monit
or
D. leadershi
p
E. visionar
y
123
.
Jocelyn's staff is upset because they normally receive their paychecks or
direct deposits on Fridays and occasionally on Thursdays if there is a holiday.
Tomorrow is Friday, July 4, and the bank did not process payments today as
expected, so Jocelyn is on the phone trying to get the situation resolved as
part of which managerial role?
A. Disturbance
handler
B. Monit
or
C. Spokesperso
n
D. Negotiat
or
E. Resource
allocator
124
.
Chemka is speaking at a press conference to discuss the company's plans to
close three underperforming branches after several years and several rounds
of changes in trying to keep them open. Chemka is performing the _______
role.
A. disseminat
or
B. monit
or
C. liaiso
n
D. spokespers
on
E. figurehe
ad
125
.
To inspire innovation, Jinyuan encourages his employees to devote one
afternoon a month to work on pet projects, just to spend time in the lab
experimenting and thinking freely. He is acting in the ______ role.
A. entreprene
ur
B. disturbance
handler
C. resource
allocator
D. negotiat
or
E. liaiso
n
126
.
Armed with a stack of market research, Jalen, a marketing department
manager, is in the research and development manager's office attempting to
convince him to eliminate two features his engineers plan to add to a product,
and replace them with two others based on customer preference. Jalen is
operating in the ______ role.
A. entreprene
ur
B. resource
allocator
C. disturbance
handler
D. negotiat
or
E. liaiso
n
127
.
Jeremy Stoppelman and Russel Simmons, founders of Yelp, a website with
reviews of businesses, created a new type of business that did not exist before
their efforts. They would best be described as
A. business
developers.
B. inventor
s.
C. sole
proprietors.
D. entrepreneu
rs.
E. intrapreneu
rs.
128
.
_________ means taking risks to try to create a new enterprise.
A. Entrepreneurs
hip
B. Incorporati
on
C. Franchisin
g
D. Joint
venturing
E. Acquisitio
n
129
.
The defining difference between an entrepreneur and an intrapreneur is that
the latter
A. is the person responsible for funding the former with a startup
investment.
B. is working on multiple opportunities
simultaneously.
C. works within an existing organization, using its resources to exploit an
opportunity.
D. usually runs a small
business.
E. works in a team setting to develop an idea to
fruition.
130
.
The development of Google News by Google employees experimenting with
ways to facilitate browsing news from several sources is an example of
A. business
intelligence.
B. intrapreneursh
ip.
C. business
invention.
D. corporate
design.
E. entrepreneursh
ip.
131
.
The belief that you control your own destiny is called
A. internal locus of
control.
B. entrepreneursh
ip.
C. intrapreneursh
ip.
D. power
centering.
E. manifest
destiny.
132
.
Research has shown that all of the following are characteristics of an
entrepreneur except which?
A. self-
confident
B. highly
experienced
C. belief in personal control of
destiny
D. high energy level and action
orientation
E. high tolerance for
ambiguity
133
.
Which of the following is more characteristic of an entrepreneur than a
manager?
A. High need for
achievement
B. External locus of
control
C. Belief in personal control of
destiny
D. Motivated by organizational
rewards
E. Tolerance for
risk
134
.
After her divorce, Jillian had to go back to work. While she interviewed to
return to her previous accounting profession, she began a custom wedding
invitation business. Jillian would best be described as a(n)
A. motivated
entrepreneur.
B. necessity
entrepreneur.
C. opportunity
entrepreneur.
D. performance
entrepreneur.
E. chance
entrepreneur.
135
.
According to researcher Robert Katz, which of the following is one of three
principal skills acquired by experienced managers?
A. Intuiti
ve
B. Evaluati
ve
C. Huma
n
D. Comprehensi
ve
E. Coordinati
on
136
.
______ skills consist of the job-specific knowledge needed to perform well in a
specialized field.
A. Technic
al
B. Actio
n
C. Conceptu
al
D. Physic
al
E. Huma
n
137
.
Marie recently became a managing partner at her law firm. Though her job
has changed, she still needs to have the necessary ______ skills to advise and
review the contracts of the real estate attorneys that she manages.
A. performan
ce
B. technic
al
C. conceptu
al
D. huma
n
E. physic
al
138
.
The ability to think analytically is associated with ______ skills.
A. comprehensi
on
B. conceptu
al
C. huma
n
D. abstra
ct
E. intuiti
ve
139
.
Despite the appeal of the opportunity, Samantha decided to delay taking her
product to foreign markets because she felt that her current personnel did not
have enough international experience. She was exhibiting ______ skills.
A. comparati
ve
B. huma
n
C. intangib
le
D. conceptu
al
E. intuiti
ve
140
.
Conceptual skills are particularly important for ______ managers.
A. first-
line
B. function
al
C. to
p
D. middl
e
E. gener
al
141
.
______ skills consist of the ability to work well in cooperation with other people
to get things done.
A. Suppo
rt
B. Conceptu
al
C. Person
al
D. Intuiti
ve
E. Huma
n
142
.
Tyler has coffee with one of his direct reports almost daily. He does this to
inquire in an informal way about progress on the job, and to provide coaching
and support, as well as appropriate congratulations for special efforts. Tyler is
exhibiting which type of managerial skill?
A. Cohesio
n
B. Conceptu
al
C. Intuiti
ve
D. Engageme
nt
E. Huma
n
143
.
Human skills are important for ________ managers.
A. to
p
B. function
al
C. first-
line
D. middl
e
E. all levels
of
144
.
Which of the following is not a chief skill companies seek in top managers
today?
A. The ability to motivate and engage
others.
B. The ability to
communicate.
C. Work experience outside the United
States.
D. High energy levels to meet the demands of global travel and a
24/7 world.
E. The ability to give a wide range of orders
authoritatively.
Essay Questions
145
.
Studying management can be helpful even before you become a manager.
List at least three of the rewards of studying management.
146
.
What is competitive advantage? Explain the importance of each of the four
areas in which an organization must stay ahead of its competitors.
147
.
One of the challenges for managers is managing personal happiness and life
goals. Explain why this is a challenge for managers. Discuss how you think
these ideas apply to you in the future.
148
.
Identify and describe the four managerial functions. Give a specific example of
each.
149
.
List the three levels of management in the traditional pyramid. Give an
example of a task that a manager at each level might perform.
150
.
List Mintzberg's findings about the nature of managerial work.
151
.
List the characteristics that most entrepreneurs have.
152
.
Define the three types of principal skills that managers need according to
Robert Katz. At which level of management is each skill most important?
Chapter 01 The Exceptional Manager: What You Do, How
You Do It Answer Key
True / False Questions
1. Virginia Rometty, CEO of IBM, believes that her success is due in part to her
ability to take risks.
TRUE
The ability to take risks, to embrace change and to keep going forward
despite fears and internal criticism, is important to any manager's survival,
regardless of gender. As Rometty says, "Growth and comfort do not coexist."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
2. Exceptional managers have a gift that cannot be taught.
FALSE
Being an exceptional manager is not exactly a gift, like a musician having
perfect pitch. In good part it may be an art. Fortunately, it is one that is
teachable.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
3. Management includes integrating the work of people through planning,
organizing, leading, and controlling the organization's resources.
TRUE
Management is defined as (1) the pursuit of organizational goals efficiently
and effectively by (2) integrating the work of people through (3) planning,
organizing, leading, and controlling the organization's resources.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
4. To be efficient in management means to use resources wisely and cost
effectively.
TRUE
Efficiency is the means of attaining the organization's goals. To be efficient
means to use resources like people, money, and raw materials wisely and
cost effectively.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
5. Efficiency and effectiveness are terms used interchangeably and
equivalently in management.
FALSE
To be efficient means to use resources like people, money, and raw
materials wisely and cost effectively. To be effective means to achieve
results, to make the right decisions, and to successfully carry them out so
they achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
6. Automated telephone systems are typically both very effective and very
efficient.
FALSE
We're accustomed to having our calls to companies for information and
customer support answered not by people but by automated answering
systems. This arrangement is efficient for the companies, since they no
longer need as many employees to answer the phones. But it's not effective
if it leaves us, the customers, fuming and less inclined to continue doing
business.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
7. An effective manager has a multiplier effect on the organization, meaning
his or her influence is multiplied beyond the results achievable by just one
person.
TRUE
In being a manager you have a multiplier effect: your influence on the
organization is multiplied far beyond the results that can be achieved by just
one person acting alone.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
8. John Hammergren's compensation of $145 million in 2010 as CEO of health
care technology firm McKesson is typical for CEOs in North America today.
FALSE
The business press frequently reports on the astronomical earnings of top
chief executive officers. The top earner was John Hammergren of health care
technologies company McKesson, who led the list that year with $145
million. However, this kind of huge payday isn't common. Median
compensation for top-ranked CEOs in North America in 2010 was $9 million.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
9. Studying management is likely to help you once you are in a manager role,
but is unlikely to be beneficial before then.
FALSE
There are several benefits of studying management that you can use before
being a manager. You will better understand how to deal with organizations
from the outside, how to relate to your supervisors, how to interact with co-
workers, and how to manage yourself in the workplace.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
10. One of the payoffs of studying management is an improved understanding
of how to deal with organizations as a customer.
TRUE
Studying management is likely to help you understand how to deal with
organizations from the outside. Since we all are in constant interaction with
all kinds of organizations, it helps to understand how they work and how the
people in them make decisions. Such knowledge may give you some
defensive skills that you can use in dealing with organizations as a customer
or investor.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
11. One of the rewards of being a manager is that you can build a catalog of
successful products or services.
TRUE
There are many rewards, apart from those of money and status, to being a
manager. One of these is that you can build a catalog of successful products
or services. Every product or service you provide becomes a monument to
your accomplishments.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
12. If you enjoy mentoring and helping others to grow, management is a great
job.
TRUE
According to productivity-improvement expert Odette Pollar, "If you truly like
people and enjoy mentoring and helping others to grow and thrive,
management is a great job."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
13. Most people prefer to have a combination of a high level of skill and low
level of challenge while at work.
FALSE
The ideal state that many people seek is an emotional zone somewhere
between boredom and anxiety, in the view of psychologist Mihaly
Csikzentmihalyi. Boredom, he says, may arise because skills and challenges
are mismatched: You are exercising your high level of skill in a job with a low
level of challenge, such as licking envelopes.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
14. Organizations can gain a competitive advantage by matching their
competition in terms of quality, responsiveness, and efficiency.
FALSE
The first challenge of a manager is to manage for competitive advantage.
This means an organization must stay ahead in four areas: (1) being
responsive to customers, (2) innovation, (3) quality, and (4) efficiency.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
15. The decline in revenue in the newspaper industry is due to a sharp drop in
the number of people reading American newspapers.
FALSE
American newspapers are more widely read than ever before, with 105.5
million unique visitors a month in 2011 versus 60 million four years earlier.
The problem: Many people aren't paying for news; they're getting it free
online.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
16. When managing for competitive advantage, the first "law" of business is
"take care of the shareholders."
FALSE
Responsiveness to the customer is part of managing for competitive
advantage. Here, the first law of business is: Take care of the customer.
Without customers, whatever they might be called, sooner or later there will
be no organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
17. Taking care of the customer applies equally well to nonprofit and for-profit
businesses.
TRUE
Nonprofit organizations are well advised to be responsive to their
"customers," too, whether they're called citizens, members, students,
patients, voters, rate-payers, or whatever, since they are the justification for
the organizations' existence.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
18. In business, innovation is defined as finding ways to deliver new or better
goods or services.
TRUE
Finding ways to deliver new or better goods or services is called innovation.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
19. Whereas a generation ago organizations rewarded employees for their
efficiency, today the emphasis is on length of service.
FALSE
A generation ago, organizations rewarded employees for their length of
service. Today, however, the emphasis is on efficiency: Companies strive to
produce goods or services as quickly as possible using as few employees
(and raw materials) as possible.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
20. Despite continued immigration, the proportion of racial or ethnic groups in
the United States is expected to be stable well into the next century.
FALSE
Today nearly one in six American workers is foreign-born, the highest
proportion since the 1920s. But greater changes are yet to come. By mid-
century, the mix of American racial or ethnic groups will change
considerably, with the United States becoming half (54%) racial or ethnic
minority.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
21. When he or she does not speak the local language, a manager should rely
on gestures and symbols since their consistency of meaning provides a form
of universal communication throughout the world.
FALSE
Gestures and symbols don't have the same meaning to everyone
throughout the world. For example, in Greece the hand-waving gesture
commonly used in America for goodbye is considered an insult.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
22. The Internet is a global network of independently operating but
interconnected computers, linking hundreds of thousands of smaller
networks around the world.
TRUE
The Internet is the global network of independently operating but
interconnected computers, linking hundreds of thousands of smaller
networks around the world.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
23. The buying and selling of goods or services over computer networks is
known as e-exchange.
FALSE
E-commerce, or electronic commerce, is the buying and selling of goods or
services over computer networks.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
24. One reason e-business is so important is that the Internet dramatically
lowers the cost of communication.
TRUE
Information technology has facilitated e-business, using the Internet to
facilitate every aspect of running a business. As one article puts it, "at
bottom, the Internet is a tool that dramatically lowers the cost of
communication. That means it can radically alter any industry or activity
that depends heavily on the flow of information."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
25. Text messages and documents transmitted over a computer network are
called cyber-messages.
FALSE
E-mail is the term for text messages and documents transmitted over a
computer network.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
26. Project management software allows managers to plan and schedule the
people, costs, and resources to complete a project on time.
TRUE
Project management software is a program for planning and scheduling the
people, costs, and resources to complete a project on time.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
27. A problem typically associated with interconnected databases on the
Internet is the potential to overwhelm employees with too much
information.
TRUE
The Internet, with its huge, interconnected databases made up of
computerized collections of interrelated files, can overwhelm us with
information, much of it useful, much of it not.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
28. One advantage of e-business is that organizations and teams are no longer
as bound by time zones and locations.
TRUE
With computers and telecommunications technology, organizations and
teams become "virtual"; they are no longer as bound by time zones and
locations.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
29. Viral staffing is the term used to describe working from home or remote
locations using a variety of information technologies.
FALSE
Telecommuting is working from home or remote locations using a variety of
information technologies.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
30. Meetings that are conducted via telecommuting use video and audio links
along with computers to let people in different locations see, hear, and talk
with one another.
FALSE
Meetings may be conducted via videoconferencing, using video and audio
links along with computers to let people in different locations see, hear, and
talk with one another.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
31. Collaborative computing involves using state-of-the-art computer software
and hardware to help people work better together.
TRUE
Collaborative computing, using state-of-the-art computer software and
hardware, will help people work better together.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
32. Integration management is the implementation of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
FALSE
Knowledge management is the implementing of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
33. In recent years, white-collar crime in the United States has become very
rare.
FALSE
Bernard Madoff is but one of a long list of famous business scoundrels of the
early 21st century. Not since sociologist Edwin Sutherland invented the term
white-collar crime in the 1930s have so many top-level executives been
hauled into court as during recent years.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
34. The Josephson Institute suggests a TEAM (Teach, Enforce, Advocate, Model)
approach for parents to encourage good financial habits in children.
FALSE
The Josephson Institute suggests that parents can take a TEAM (Teach,
Enforce, Advocate, Model) approach to help children learn the importance of
honesty.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
35. Unsustainable business practices have resulted from an often accepted but
untrue notion that natural resources are limitless.
TRUE
Our economic system has brought prosperity, but it has also led to
unsustainable business practices because it has assumed that natural
resources are limitless, which they are not.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
36. Having to attend too many meetings or feeling a lack of respect are typical
reasons that some people don't find being a manager fulfilling.
TRUE
Many people simply don't find being a manager fulfilling. They may
complain that they have to go to too many meetings, that they can't do
enough for their employees, that they are caught in the middle between
bosses and subordinates. They may feel, at a time when Dilbert cartoons
have created such an unflattering portrayal of managers, that they lack
respect.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
37. One's experience in management remains very insulated from the
company's culture.
FALSE
Productivity-improvement expert Odette Pollar points out that "one's
experience in management is greatly affected by the company's culture."
Culture, or style, is indeed an important matter, because it affects your
happiness within an organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
38. The "management process" is sometimes called the "four management
functions."
TRUE
The management process can also be called the four management
functions: planning, organizing, leading, and controlling.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
39. When Barrett, a college administrator, is determining which of several
degree programs his campus will offer, he is involved in the management
function of controlling.
FALSE
Planning is defined as setting goals and deciding how to achieve them. A
college is established for the purpose of educating students, and its present
managers, or administrators, must decide the best way to accomplish this.
For example, they must ask which of several possible degree programs
should be offered.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
40. Organizing is the arranging of tasks, people, and other resources to
accomplish work.
TRUE
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
41. When Carla revises the waitstaff schedule at her restaurant to have more
personnel available during the newly busy breakfast rush, she is engaged in
organizing.
TRUE
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
42. When Shannon reviews reports and determines that she has four
underperforming salespeople with whom she will need to talk, she is
performing the controlling managerial function.
TRUE
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
43. When a manager is motivating others to work hard to achieve the
organization's goals, she is engaged in the management function of
leading.
TRUE
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
44. Tucker recently attended a dinner for the new CEO. He came away feeling
very excited and anxious to do his part to help the company achieve its
goals. In this instance, the CEO was performing the management function
known as planning.
FALSE
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
45. According to Peter Drucker, "knowledge workers" have very little technical
skill.
FALSE
The workplace of the future may resemble a symphony orchestra, famed
management theorist Peter Drucker said. Employees, especially so-called
knowledge workers, those who have a great deal of technical skills, can be
compared to concert musicians. Their managers can be seen as conductors.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
46. The traditional organizational model is most often represented by a funnel
shape.
FALSE
The traditional organizational model is pyramid-like, where one leader sits at
the top, with layers of managers beneath.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
47. There are managers at three levels of an organization: top, middle, and first-
line.
TRUE
Managers of an organization may be classified into three levels: top, middle,
and first-line.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
48. First-line managers make long-term decisions about the overall direction of
the organization and establish the objectives, policies, and strategies for it.
FALSE
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
49. Mingjin is a branch manager in Albuquerque who reports to the CEO in
Denver and to whom three other managers at her facility report, so she
would be termed a middle manager.
TRUE
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them. In the for-profit world, the titles may be "division
head," "plant manager," and "branch sales manager."
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
50. A first-line manager directs the daily tasks of nonmanagerial personnel.
TRUE
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
51. A vice president of production is a general manager.
FALSE
If your title is vice president of production, director of finance, or
administrator for human resources, you are a functional manager. A
functional manager is responsible for just one organizational activity.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
52. A general manager typically oversees several departments within an
organization.
TRUE
A general manager may oversee several departments, such as production
and finance and human resources. A general manager is responsible for
several organizational activities.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
53. The main purpose of a nonprofit organization is to offer services to some
clients.
TRUE
Nonprofit organizations' main purpose is to offer services to some clients,
not to make a profit.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
54. According to Mintzberg's research, managers rely more on verbal than on
written communication because of the time it takes to accomplish the
latter.
TRUE
A manager relies more on verbal than on written communication. Writing
letters, memos, and reports takes time. Most managers in Mintzberg's
research tended to get and transmit information through telephone
conversations and meetings.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
55. Since the 1960s research conducted by Mintzberg, the typical general
manager has reduced her work week to the traditional 40 hours.
FALSE
According to Mintzberg's research, long hours at work are standard, with 50
hours being typical and up to 90 hours not unheard of. Since then, a 1999
survey by John P. Kotter of the Harvard Business School found that the
general managers he studied worked just under 60 hours per week.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
56. Most managers require lengthy, uninterrupted periods during the regular
workday to accomplish their work and make themselves unavailable to
subordinates to create them.
FALSE
The executive's work time has been characterized as "the interrupt-driven
day" and many managers, such as the late Mary Kay Ash, head of the Mary
Kay Cosmetics company, get up as early as 5 a.m. so that they will have a
quiet period in which to work undisturbed.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
57. Time and task management are major challenges for every manager.
TRUE
It is clear from Mintzberg's work that both time and task management are
major challenges for every manager.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
58. According to Mintzberg, the three broad types of managerial roles include
interpersonal, analytical, and critical.
FALSE
From his observations and other research, Mintzberg concluded that
managers play three broad types of roles or "organized sets of behavior":
interpersonal, informational, and decisional.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
59. Good executive functioning includes heavy multitasking and answering
every e-mail nearly instantly.
FALSE
Executive functioning includes the ability to focus your thoughts, control
your impulses, and avoid distractions. You can drive yourself crazy trying to
multitask and answer every e-mail message instantly. Or you can recognize
your brain's finite capacity for processing information.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
60. The monitor function is an example of the informational roles often played
by managers.
TRUE
In their three informational roles as monitor, disseminator, and
spokesperson, managers receive and communicate information with other
people inside and outside the organization.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
61. In interpersonal managerial roles, a manager acts as entrepreneur,
disturbance handler, or negotiator.
FALSE
In their interpersonal roles, managers interact with people inside and
outside their work units. The three interpersonal roles include figurehead,
leader, and liaison activities. In their decisional roles, managers use
information to make decisions to solve problems or take advantage of
opportunities. The four decision-making roles are entrepreneur, disturbance
handler, resource allocator, and negotiator.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
62. Entrepreneurship means taking risks to try to create a new enterprise.
TRUE
Entrepreneurship is the process of taking risks to try to create a new
enterprise.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
63. Two types of entrepreneurship include the extrapreneur and the
intrapreneur.
FALSE
There are two types of entrepreneurship. An entrepreneur is someone who
sees a new opportunity for a product or service and launches a business to
try to realize it. An intrapreneur is someone who works inside an existing
organization who sees an opportunity for a product or service and mobilizes
the organization's resources to try to realize it.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
64. Successful entrepreneurial companies have been called "gazelles" because
of a characteristic they possess, namely an acute sensitivity to danger in
the environment.
FALSE
Entrepreneurial companies have been called "gazelles" for the two
attributes that make them successful: speed and agility. "Gazelles have
mastered the art of the quick," says Alan Webber, founding editor of Fast
Company magazine. "They have internal approaches and fast decision-
making approaches that let them move with maximum agility in a fast-
changing business environment."
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
65. Entrepreneurs typically have a much higher need for achievement and a
stronger belief in personal control of destiny than do typical managers.
FALSE
Both entrepreneurs and managers have a high need for achievement. Also
characteristic of both is a belief in personal control of destiny.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
66. Opportunity entrepreneurs are those who start their own business out of a
burning desire rather than because they lost a job.
TRUE
So-called opportunity entrepreneurs, about 89%, are those who start their
own business out of a burning desire rather than because they lost a job.
Unlike necessity types, they tend to be more ambitious and to start firms
that can lead to high-growth businesses.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
67. Researcher Robert Katz determined that through education and experience
managers acquire technical, conceptual, and human skills.
TRUE
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills: technical, conceptual,
and human.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
68. Having required technical skills is most important among top managers at
the highest leadership levels.
FALSE
Having the requisite technical skills seems to be most important at the
lower levels of management; that is, it is critical among first-line managers.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
69. Human skills become less critical as one's career progresses, and are least
important for top managers.
FALSE
Human skills, which include the ability to motivate, to inspire trust, to
communicate with others, are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
Multiple Choice Questions
70. One way to think of ______ is "the art of getting things done through
people."
A. supervisi
on
B. motivati
on
C. manageme
nt
D. leadershi
p
E. strate
gy
Management, said one pioneer of management ideas, is "the art of getting
things done through people."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
71. The pursuit of organizational goals efficiently and effectively by integrating
the work of people through planning, organizing, leading, and controlling the
organization's resources is called
A. employme
nt.
B. career
planning.
C. competitive
advantage.
D. manageme
nt.
E. strategic
planning.
Management is defined as (1) the pursuit of organizational goals efficiently
and effectively by (2) integrating the work of people through (3) planning,
organizing, leading, and controlling the organization's resources.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
72. A group of people who work together to achieve some specific purpose
is/are called
A. manager
s.
B. a
collaboration
.
C. a
team.
D. an
organization.
E. a
community.
An organization is a group of people who work together to achieve some
specific purpose.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
73. Tracy, a manager at a busy warehouse, was slow to hire new employees,
preferring instead to encourage improvements from his current staff. He
carefully watched his other costs too, performing equipment maintenance
on a regular basis to improve its lifespan. Tracy would best be described as
a(n) _____ manager.
A. efficie
nt
B. ethic
al
C. innovati
ve
D. effectiv
e
E. micr
o
Efficiency is the means of attaining the organization's goals. To be efficient
means to use resources like people, money, and raw materials wisely and
cost effectively.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 3 Hard
Topic: Management: What It Is, What Its Benefits Are
74. To be ______ as a manager means to make the right decisions and
successfully carry them out to achieve goals.
A. producti
ve
B. ethic
al
C. efficie
nt
D. effectiv
e
E. innovati
ve
Effectiveness is the organization's ends, the goals. To be effective means to
achieve results, to make the right decisions, and to successfully carry them
out so they achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
75. The _________ effect states that a manager's influence on the organization
has implications far beyond the results that can be achieved by one person
acting alone.
A. proliferati
on
B. multipli
er
C. manageri
al
D. hal
o
E. additiv
e
In being a manager you have a multiplier effect: Your influence on the
organization is multiplied far beyond the results that can be achieved by just
one person acting alone.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
76. According to a Fortune article, the scarcest, most valuable resource in
business is not financial capital but
A. renewable
resources.
B. government
support.
C. highly innovative
technology.
D. a young
workforce.
E. skilled, effective
managers.
Exceptional managers are in high demand. "The scarcest, most valuable
resource in business is no longer financial capital," says a Fortune article.
"It's talent. If you doubt that, just watch how hard companies are battling for
the best people… Talent of every type is in short supply, but the greatest
shortage of all is skilled, effective managers."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
77. Which of the following is the most likely payoff of studying management as
a discipline?
A. You will understand how to brand your
organization.
B. You will understand how to relate to and interact with your supervisors
and co-workers.
C. You will understand how to manage your family and close friends more
effectively.
D. You will understand how to deal with the media in
a crisis.
E. You will understand how to advance your career
without guilt.
A few of the payoffs of studying management as a discipline include
understanding how to deal with organizations from the outside,
understanding how to relate to your supervisors and co-workers, and
understanding how to manage yourself in the workplace.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
78. Which of the following is not a reward for practicing management?
A. You can build a catalog of successful products or
services.
B. You and your employees can experience a sense of
accomplishment.
C. You can stretch your abilities and magnify your
range.
D. You can be rewarded with money and status for your
efforts.
E. You can become exempt from many of society's ethical
standards.
In addition to money and status, there are many rewards to being a
manager including experiencing a sense of accomplishment, stretching your
abilities and magnifying your range, and building a catalog of successful
products or services.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
79. Which of the following is one of the seven primary challenges facing
managers today?
A. Maintaining good records of what worked in
the past.
B. Dealing with a stubbornly static and immobile
environment.
C. Staying ahead of competitors through corporate
espionage.
D. Managing to achieve one's own happiness and life
goals.
E. Collaborating with
competitors.
Seven challenges face any manager: You need to manage for competitive
advantage. You need to manage for diversity in race, ethnicity, gender, and
so on. You need to manage for the effects of globalization and of information
technology. You need to manage to maintain ethical standards, and manage
for sustainability, and finally for the achievement for your own happiness
and life goals.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
80. Petra is a new manager for a household products company, after getting a
promotion from an administrative job that she found boring. But now she
frequently experiences ______, like when she had to explain the new product
her team is developing to the CEO and several board members. As
psychologist Csikzentmihalyi predicts, her ideal state would be an emotional
zone between that and boredom.
A. overloa
d
B. anxiet
y
C. immodes
ty
D. fea
r
E. pressur
e
The ideal state that many people seek is an emotional zone somewhere
between boredom and anxiety, in the view of psychologist Mihaly
Csikzentmihalyi. Boredom, he says, may arise because skills and challenges
are mismatched: You are exercising your high level of skill in a job with a low
level of challenge, such as licking envelopes. Anxiety arises when one has
low levels of skill but a high level of challenge, such as suddenly being
called upon to give a rousing speech to strangers.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
81. The ability of an organization to outperform others by producing goods or
services more effectively than its competitors is called its
A. competitive
advantage.
B. qualit
y.
C. efficienc
y.
D. innovatio
n.
E. effectivenes
s.
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thereby outperforming them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
82. Which of the following is not an area in which an organization must stay
ahead of its competitors to achieve competitive advantage?
A. Environmental
action
B. Being responsive to
customers
C. Innovati
on
D. Qualit
y
E. Efficienc
y
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thereby outperforming them.
This means an organization must stay ahead in four areas: (1) being
responsive to customers, (2) innovation, (3) quality, and (4) efficiency.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
83. Which of the following is the most likely reason for the decline in fortunes of
American newspapers, and their inability to exploit their competitive
advantage?
A. A poorer standard for news-
gathering.
B. Relying too heavily on advertising, rather than customer subscriptions,
for revenue.
C. Decline in newspaper readership over the last 70
years.
D. Preference of customers for getting news in a nonverbal
format.
E. An increase in salaries and material costs within the
industry.
How did newspapers lose their way? First, by giving away the product, and
second, by relying too much on advertising for revenue.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
84. In seeking competitive advantage, the first law of business is to
A. take care of your
shareholders.
B. take care of your
stakeholders.
C. take care of the
customer.
D. take care of the
environment.
E. take care of your
employees.
The first law of business is: Take care of the customer. Without customers,
whatever they're called, sooner or later there will be no organization. This is
known as responsiveness to customers, an important component of
competitive advantage.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
85. Finding ways to deliver new or better goods or services is called
A. advanceme
nt.
B. streamlinin
g.
C. innovatio
n.
D. efficienc
y.
E. quality
control.
Finding ways to deliver new or better goods or services is called innovation.
No organization, for-profit or nonprofit, can allow itself to become
complacent, especially when rivals are coming up with creative ideas.
"Innovate or die" is an important adage for any manager.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
86. Customers are likely to put up with poor-quality products only if your
organization is
A. underperforming in
innovation.
B. using computerized customer
service.
C. the only one of its
kind.
D. in a very competitive
industry.
E. lacking strong environmental
policies.
If your organization is the only one of its kind, customers may put up with
products or services that are less than stellar but only because they have no
choice. But if another organization comes along and offers a better-quality
product, you may find your company falling behind.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
87. By mid-century, the percentage of Hispanics (of any race) in the U.S.
population is expected to ______, and the percentage of non-Hispanic whites
is expected to ______.
A. stay the same;
increase
B. double;
decrease
C. decrease;
increase
D. double; increase
slightly
E. stay the same;
decrease
By mid-century, the mix of American racial or ethnic groups will change
considerably, with the United States becoming half (54%) racial or ethnic
minority. Non-Hispanic whites are projected to decrease from 66% of the
population in 2008 to 46% in 2050. African Americans will increase from
14% to 15%, Asians and Pacific Islanders from 5.1% to 9.2%, and Hispanics
from 15% to 30%.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
88. The concept of a "flat" world means
A. employees are learning to suppress negative emotion in the
workplace.
B. corporations are developing a preference for a new, flatter
organizational structure.
C. a recession now slows the economies of most nations
simultaneously.
D. globalization has leveled the playing field for emerging
economies.
E. businesspeople are now more conservative in their approach to
investment.
American firms have been going out into the world in a major way, even as
the world has been coming to us. This has led to what New York Times
columnist Thomas Friedman has called, in his book The World Is Flat, a
phenomenon in which globalization has leveled (made "flat") the
competitive playing fields between industrial and emerging-market
countries.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
89. Though many advantages have been linked to e-business, studies show that
employees are less productive when dealing with excessive ______ volume.
A. videoconferenci
ng
B. meetin
g
C. e-
mail
D. telecommuti
ng
E. collaborative
computing
Studies show that employees lose valuable time and productivity when
dealing with excessive and unimportant e-mail volume and increasing
amounts of cell-phone spam.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
90. Paul has been tasked with creating a new microsite on his engineering
company's intranet. The site will house company-approved design
procedures and efficiency strategies for all employees. Creating the design
microsite is a form of
A. strategy
management.
B. e-
management
.
C. project
management.
D. knowledge
management.
E. morale
management.
Knowledge management is the implementing of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
91. As a sales manager, you would have to decide how much leeway to give
your subordinates in giving gifts to prospective clients in foreign countries.
This is an example of the challenge of managing for
A. your own
happiness.
B. globalizatio
n.
C. ethical
standards.
D. sustainabili
ty.
E. diversit
y.
With the pressure to meet sales, production, and other targets, managers
can find themselves confronting ethical dilemmas. An example would be
how much leeway to give employees in giving gifts to prospective clients in
a foreign country to try to land a contract.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
92. Economic development that meets the needs of the present without
compromising the ability of future generations to meet their own needs is
known as
A. environmentalis
m.
B. globalizatio
n.
C. ethic
s.
D. the bottom
line.
E. sustainabili
ty.
Sustainability is defined as economic development that meets the needs of
the present without compromising the ability of future generations to meet
their own needs.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
93. The company's culture most directly affects
A. the number of competitors a
firm has.
B. the number of products a company
makes.
C. the amount charged for the firm's products or
services.
D. the manager's
happiness.
E. the education of the
workforce.
One's experience in management is greatly affected by the company's
culture. Culture, or style, is indeed an important matter, because it affects
your happiness within an organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
94. Which of the following is one of the four principal functions of management,
also known as the management process?
A. Organizin
g
B. Schedulin
g
C. Motivati
ng
D. Executin
g
E. Monitori
ng
Managers perform what is known as the management process, also called
the four management functions: planning, organizing, leading, and
controlling.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
95. Setting goals and deciding how to achieve them is called
A. controllin
g.
B. managin
g.
C. plannin
g.
D. organizin
g.
E. leadin
g.
Planning is defined as setting goals and deciding how to achieve them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
96. When a manager at a software company is determining whether to hire
more full-time programmers or possibly more temporary ones, he is
engaged in
A. plannin
g.
B. organizin
g.
C. managin
g.
D. leadin
g.
E. controllin
g.
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work. Organizing includes determining the tasks to be done,
by whom, and what the reporting hierarchy is to be.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
97. Because the various groups that help a manager reach company goals often
have different needs and wants, resolving conflicts is an essential part of
which management function?
A. Plannin
g
B. Clarifyin
g
C. Organizin
g
D. Controlli
ng
E. Leadin
g
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals. The various groups
involved often have different needs and wants, so an essential part of
leadership is resolving conflicts.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 2 Medium
Topic: What Managers Do: The Four Principal Functions
98. A general manager at a department store is giving an important
presentation to several departments to engage the whole staff in a new
customer retention effort beginning this month. This is an example of
A. plannin
g.
B. organizin
g.
C. leadin
g.
D. controllin
g.
E. marketin
g.
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
99. Monitoring performance and taking corrective action as needed is called
A. improvisin
g.
B. plannin
g.
C. organizin
g.
D. improvin
g.
E. controllin
g.
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
100. Aziz immediately halted production at his facility after seeing a report
indicating the last batch had a high level of product defects, and restarted
work only when the problem was discovered and fixed. Aziz is engaged in
which management function?
A. Repairin
g
B. Organizin
g
C. Monitori
ng
D. Controlli
ng
E. Executin
g
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
101. Management theorist Peter Drucker compared the workplace of the future to
a
A. pyrami
d.
B. symphony
orchestra.
C. flattened
oval.
D. chess
game.
E. warshi
p.
The workplace of the future may resemble a symphony orchestra, famed
management theorist Peter Drucker said. Employees, especially so-called
knowledge workers, can be compared to concert musicians. Their managers
can be seen as conductors. The conductor's role is not to play each
instrument but to lead them all through the most effective performance of a
particular work.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
102. Tonya is a structural engineer who works for a large international firm. She
designs the concrete and steel structures that support even the largest and
most complex buildings. Because of her high level of technical skills, Tonya
is best referred to as a
A. knowledge
worker.
B. blue-collar
worker.
C. self-managed
worker.
D. first-line
worker.
E. first-line
manager.
A knowledge worker is one who has a great deal of technical skill such as
Tonya has in this example.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
103. In the traditional management pyramid, managers are classified into ______
levels.
A. tw
o
B. thre
e
C. fou
r
D. fiv
e
E. si
x
Managers may be classified into three levels: top, middle, and first-line.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
104. A senior vice president is an example of what level of manager?
A. first-
line
B. to
p
C. leadershi
p
D. middl
e
E. mer
it
An organization's top managers tend to have titles such as "chief executive
officer (CEO)," "chief operating officer (COO)," "president," and "senior vice
president."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
105. Managers who are future oriented, dealing with uncertain, highly
competitive conditions, and who stay alert to long-run opportunities and
problems are most likely to be
A. first-line
managers.
B. functional
managers.
C. middle
managers.
D. general
managers.
E. top
managers.
Top managers make long-term decisions about the overall direction of the
organization. They need to pay a lot of attention to the environment outside
the organization, being alert for long-run opportunities and problems and
devising strategies for dealing with them. Thus, executives at this level must
be future oriented, dealing with uncertain, highly competitive conditions.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
106. Managers who implement the policies and plans determined at the highest
levels and coordinate the activities of lowest-level managers are called
A. executional
managers.
B. first-line
managers.
C. middle
managers.
D. functional
managers.
E. general
managers.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
107. Derrick is a clinic director running a downtown Chicago facility for a large
nonprofit health organization. He receives most of his strategic direction
from the organization and supervises several department managers in his
workplace. Derrick is a
A. first-line
manager.
B. middle
manager.
C. tactical
manager.
D. functional
manager.
E. coordination
manager.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them. One title in nonprofit organizations may be "clinic
director" for example.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
108. Managers who make short-term operating decisions and direct the daily
tasks of the nonmanagerial employees are called
A. first-line
managers.
B. middle
managers.
C. general
managers.
D. functional
managers.
E. initial
managers.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel, who are, of course, all those people who work directly at their
jobs but don't oversee the work of others.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
109. Angelina is a shift supervisor for a successful supermarket chain, directing
the work of as many as eight other cashiers. She is a(n)
A. directional
manager.
B. middle
manager.
C. first-line
manager.
D. general
manager.
E. area
manager.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel, who are, of course, all those people who work directly at their
jobs but don't oversee the work of others. Supervisor is the name often
given to first-line managers as a whole.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
110. A ______ manager is responsible for just one organizational activity.
A. speciali
st
B. first-
line
C. singul
ar
D. function
al
E. top-
level
A functional manager is responsible for just one organizational activity.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
111. The United Way and Nature Conservancy are examples of which type of
organization?
A. For-
profit
B. Nonpro
fit
C. Administrati
ve
D. Mutual-
benefit
E. Aid-
based
Nonprofit organizations' purpose is to offer services to some clients, not to
make a profit. Examples of such organizations are hospitals, colleges, and
social-welfare agencies (e.g., the Salvation Army, the Red Cross).
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
112. Which type of nonprofit organization offers services to all clients within its
jurisdiction?
A. Administrati
ve
B. Mutual-
benefit
C. Aid-
based
D. Authori
ty
E. Commonwe
al
One particular type of nonprofit organization is called the commonweal
organization. Unlike nonprofit service organizations, which offer services to
some clients, commonweal organizations offer services to all clients within
their jurisdictions. Examples are the military services, the U.S. Postal
Service, and your local fire and police departments.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
113. Abbie recently joined a professional organization for certified public
accountants, and was happy that her firm offered to pay the dues. This type
of group is an example of a(n) ______ organization.
A. for-
profit
B. nonpro
fit
C. administrati
ve
D. mutual-
benefit
E. aid-
based
Mutual-benefit organizations are voluntary collections of members such as
political parties, farm cooperatives, labor unions, trade associations, and
clubs whose purpose is to advance members' interests.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
114. The primary measure of success of a nonprofit organization is typically
A. the total
revenue.
B. ROI
.
C. the effectiveness of the services
delivered.
D. the market
share.
E. the number of services
available.
In a nonprofit organization, although income and expenditures are very
important concerns, the measure of success is usually the effectiveness of
the services delivered.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
115. Which of the following statements about a manager's worklife is not among
the findings of management scholar Henry Mintzberg?
A. Managers work long
hours.
B. Most managerial tasks require lengthy periods of time for
completion.
C. Managers rely more on verbal than on written
communication.
D. Managers work at an intense
pace.
E. Managers' work is characterized by
variety.
Managers tend to work long hours at an intense pace; their work is
characterized by fragmentation, brevity, and variety; and they rely more on
verbal than on written communication. Only about a tenth of the managerial
activities observed by Mintzberg took more than an hour; about half were
completed in under 9 minutes. Phone calls averaged 6 minutes, informal
meetings 10 minutes, and desk-work sessions 15 minutes.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
116. According to Mintzberg's work, which of the following is one of the three
broad types of roles that managers play?
A. Analytic
al
B. Profession
al
C. Interdepende
nt
D. Disciplina
ry
E. Interperson
al
From his observations and other research, Mintzberg concluded that
managers play three broad types of roles or "organized sets of behavior":
interpersonal, informational, and decisional.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
117. Which of the following is an example of a decisional role that managers
play?
A. Figurehea
d
B. Spokesperso
n
C. Resource
allocator
D. Liaiso
n
E. Monit
or
In their decisional roles, managers use information to make decisions to
solve problems or take advantage of opportunities. The four decision-
making roles are entrepreneur, disturbance handler, resource allocator, and
negotiator.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
118. In a ______ role, you should be constantly alert for useful information,
whether gathered from newspaper stories about the competition or
discovered in conversations with subordinates.
A. figurehe
ad
B. negotiat
or
C. spokespers
on
D. monit
or
E. disseminat
or
As a monitor, you should be constantly alert for useful information, whether
gathered from newspaper stories about the competition or gathered from
snippets of conversation with subordinates you meet in the hallway.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
119. Matthew, the president of a diesel engine research firm, was welcoming
potential partners from a large automobile corporation in Europe. Before
handing them off to his technical counterpart, he gave them an extensive
tour of his laboratory and field-testing operations as part of which
managerial role?
A. Figurehea
d
B. Analytic
al
C. Monit
or
D. Visionar
y
E. Disseminat
or
In your figurehead role, you may show visitors around your company. In
general, you perform symbolic tasks that represent your organization.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
120. After a large chemical fire, Eric took responsibility publicly for the failure of
his employees to follow workplace safety standards, and indicated that
several of them had been placed on leave. Here, Eric was acting in a ______
role.
A. leadershi
p
B. negotiat
or
C. liaiso
n
D. authori
ty
E. entreprene
ur
In a role of leader, you are responsible for the actions of your subordinates,
since their successes and failures reflect on you. Your leadership is
expressed in your decisions about training, motivating, and disciplining
people.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
121. Two different project teams recently submitted proposals for very promising
ideas, but the budget will not allow both to go forward this year. Amanda is
making the tough decisions about which should be the focus this time, as a
part of her ______ role.
A. leadershi
p
B. disseminat
or
C. resource
allocator
D. negotiat
or
E. entreprene
ur
Because you'll never have enough time, money, and so on, you'll need to be
a resource allocator as a manager, setting priorities about use of resources.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
122. Colin takes notes at executive council meetings and prepares summaries to
present to middle managers and supervisors at a monthly meeting. This
task is part of a(n) _______ role.
A. disseminat
or
B. entreprene
ur
C. monit
or
D. leadershi
p
E. visionar
y
Workers complain they never know what's going on if a supervisor fails in
the role of disseminator. Managers need to constantly disseminate
important information to employees, as via e-mail and meetings.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
123. Jocelyn's staff is upset because they normally receive their paychecks or
direct deposits on Fridays and occasionally on Thursdays if there is a holiday.
Tomorrow is Friday, July 4, and the bank did not process payments today as
expected, so Jocelyn is on the phone trying to get the situation resolved as
part of which managerial role?
A. Disturbance
handler
B. Monit
or
C. Spokesperso
n
D. Negotiat
or
E. Resource
allocator
Unforeseen problems, from product defects to international currency crises,
require a manager to be a disturbance handler, fixing problems.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
124. Chemka is speaking at a press conference to discuss the company's plans to
close three underperforming branches after several years and several
rounds of changes in trying to keep them open. Chemka is performing the
_______ role.
A. disseminat
or
B. monit
or
C. liaiso
n
D. spokespers
on
E. figurehe
ad
You are expected, of course, to be a diplomat, to put the best face on the
activities of your work unit or organization to people outside it. This is the
informational role of spokesperson.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
125. To inspire innovation, Jinyuan encourages his employees to devote one
afternoon a month to work on pet projects, just to spend time in the lab
experimenting and thinking freely. He is acting in the ______ role.
A. entreprene
ur
B. disturbance
handler
C. resource
allocator
D. negotiat
or
E. liaiso
n
A good manager is expected to be an entrepreneur, to initiate and
encourage change and innovation.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
126. Armed with a stack of market research, Jalen, a marketing department
manager, is in the research and development manager's office attempting
to convince him to eliminate two features his engineers plan to add to a
product, and replace them with two others based on customer preference.
Jalen is operating in the ______ role.
A. entreprene
ur
B. resource
allocator
C. disturbance
handler
D. negotiat
or
E. liaiso
n
To be a manager is to be a continual negotiator, working with others inside
and outside the organization to accomplish your goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
127. Jeremy Stoppelman and Russel Simmons, founders of Yelp, a website with
reviews of businesses, created a new type of business that did not exist
before their efforts. They would best be described as
A. business
developers.
B. inventor
s.
C. sole
proprietors.
D. entrepreneu
rs.
E. intrapreneu
rs.
Most small businesses originate with people like Stoppelman and Simmons.
They are the entrepreneurs, the people with the idea, the risk takers.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
128. _________ means taking risks to try to create a new enterprise.
A. Entrepreneurs
hip
B. Incorporati
on
C. Franchisin
g
D. Joint
venturing
E. Acquisitio
n
Entrepreneurship is the process of taking risks to try to create a new
enterprise.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
129. The defining difference between an entrepreneur and an intrapreneur is that
the latter
A. is the person responsible for funding the former with a startup
investment.
B. is working on multiple opportunities
simultaneously.
C. works within an existing organization, using its resources to exploit an
opportunity.
D. usually runs a small
business.
E. works in a team setting to develop an idea to
fruition.
An entrepreneur is someone who sees a new opportunity for a product or
service and launches a business to try to realize it. An intrapreneur is
someone who works inside an existing organization who sees an opportunity
for a product or service and mobilizes the organization's resources to try to
realize it.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
130. The development of Google News by Google employees experimenting with
ways to facilitate browsing news from several sources is an example of
A. business
intelligence.
B. intrapreneursh
ip.
C. business
invention.
D. corporate
design.
E. entrepreneursh
ip.
An example of an intrapreneur is Marissa Mayer of Google developing a
researcher's personal news reading program into Google News.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
131. The belief that you control your own destiny is called
A. internal locus of
control.
B. entrepreneursh
ip.
C. intrapreneursh
ip.
D. power
centering.
E. manifest
destiny.
Internal locus of control is the belief that you control your own destiny, that
external forces will have little influence.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
132. Research has shown that all of the following are characteristics of an
entrepreneur except which?
A. self-
confident
B. highly
experienced
C. belief in personal control of
destiny
D. high energy level and action
orientation
E. high tolerance for
ambiguity
An entrepreneur has a high need for achievement, a belief in personal
control of destiny, a high energy level and action orientation, a high
tolerance for ambiguity, and self-confidence and tolerance for risk.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
133. Which of the following is more characteristic of an entrepreneur than a
manager?
A. High need for
achievement
B. External locus of
control
C. Belief in personal control of
destiny
D. Motivated by organizational
rewards
E. Tolerance for
risk
More characteristic of entrepreneurs than managers are self-confidence and
tolerance for risk. Precisely because they are willing to take risks in the
pursuit of new opportunities and even risk personal financial failure,
entrepreneurs need the confidence to act decisively.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
134. After her divorce, Jillian had to go back to work. While she interviewed to
return to her previous accounting profession, she began a custom wedding
invitation business. Jillian would best be described as a(n)
A. motivated
entrepreneur.
B. necessity
entrepreneur.
C. opportunity
entrepreneur.
D. performance
entrepreneur.
E. chance
entrepreneur.
So-called necessity entrepreneurs are people such as laid-off corporate
workers, discharged military people, immigrants, and divorced homemakers
who suddenly must earn a living and are simply trying to replace lost
income. These make up about 11% of entrepreneurs.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 3 Hard
Topic: The Entrepreneurial Spirit
135. According to researcher Robert Katz, which of the following is one of three
principal skills acquired by experienced managers?
A. Intuiti
ve
B. Evaluati
ve
C. Huma
n
D. Comprehensi
ve
E. Coordinati
on
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills: technical, conceptual,
and human.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
136. ______ skills consist of the job-specific knowledge needed to perform well in
a specialized field.
A. Technic
al
B. Actio
n
C. Conceptu
al
D. Physic
al
E. Huma
n
Technical skills consist of the job-specific knowledge needed to perform well
in a specialized field.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
137. Marie recently became a managing partner at her law firm. Though her job
has changed, she still needs to have the necessary ______ skills to advise
and review the contracts of the real estate attorneys that she manages.
A. performan
ce
B. technic
al
C. conceptu
al
D. huma
n
E. physic
al
Technical skills consist of the job-specific knowledge needed to perform well
in a specialized field.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
138. The ability to think analytically is associated with ______ skills.
A. comprehensi
on
B. conceptu
al
C. huma
n
D. abstra
ct
E. intuiti
ve
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
139. Despite the appeal of the opportunity, Samantha decided to delay taking
her product to foreign markets because she felt that her current personnel
did not have enough international experience. She was exhibiting ______
skills.
A. comparati
ve
B. huma
n
C. intangib
le
D. conceptu
al
E. intuiti
ve
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
140. Conceptual skills are particularly important for ______ managers.
A. first-
line
B. function
al
C. to
p
D. middl
e
E. gener
al
Conceptual skills are particularly important for top managers, who must deal
with problems that are ambiguous but that could have far-reaching
consequences.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
141. ______ skills consist of the ability to work well in cooperation with other
people to get things done.
A. Suppo
rt
B. Conceptu
al
C. Person
al
D. Intuiti
ve
E. Huma
n
Human skills consist of the ability to work well in cooperation with other
people to get things done.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
142. Tyler has coffee with one of his direct reports almost daily. He does this to
inquire in an informal way about progress on the job, and to provide
coaching and support, as well as appropriate congratulations for special
efforts. Tyler is exhibiting which type of managerial skill?
A. Cohesio
n
B. Conceptu
al
C. Intuiti
ve
D. Engageme
nt
E. Huma
n
Human skills consist of the ability to work well in cooperation with other
people to get things done. They include the ability to motivate, to inspire
trust, and to communicate with others.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
143. Human skills are important for ________ managers.
A. to
p
B. function
al
C. first-
line
D. middl
e
E. all levels
of
Human skills, including the ability to motivate, to inspire trust, and to
communicate with others, are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
144. Which of the following is not a chief skill companies seek in top managers
today?
A. The ability to motivate and engage
others.
B. The ability to
communicate.
C. Work experience outside the United
States.
D. High energy levels to meet the demands of global travel and a
24/7 world.
E. The ability to give a wide range of orders
authoritatively.
Instead of someone who gives orders, companies seek top managers with
these chief skills: the ability to motivate and engage others, the ability to
communicate, work experience outside the United States, and high energy
levels to meet the demands of global travel and a 24/7 world.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
Essay Questions
145. Studying management can be helpful even before you become a manager.
List at least three of the rewards of studying management.
(1) You will understand how to deal with organizations from the outside. It
helps to understand how organizations work and how the people in them
make decisions. (2) You will understand how to relate to your supervisors.
Since most of us work in organizations and most of us have bosses, studying
management will enable you to understand the pressures managers deal
with and how they will best respond to you. (3) You will understand how to
interact with co-workers. Studying management can give you the
understanding of teams and teamwork, cultural differences, conflict and
stress, and negotiation and communication skills that will help you get along
with fellow employees. (4) You will understand how to manage yourself in
the workplace. Management courses give you the opportunity to realize
insights about yourself—your personality, emotions, values, perceptions,
needs, and goals. We help you build your skills in areas such as self-
management, listening, handling change, managing stress, avoiding
groupthink, and coping with organizational politics.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
146. What is competitive advantage? Explain the importance of each of the four
areas in which an organization must stay ahead of its competitors.
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thus outperforming them.
This means an organization must stay ahead in four areas: customer
responsiveness, innovation, quality, and efficiency.
Being responsive to customers. The first law of business is: Take care of the
customer. Without customers—buyers, clients, consumers, shoppers, users,
patrons, guests, investors, or whatever they're called—sooner or later there
will be no organization.
Innovation is finding ways to deliver new or better goods or services.
Quality. If your organization is the only one of its kind, customers may put
up with products or services that are less than stellar. However, if you are
not a unique organization, which is more likely, customers will begin to buy
from the company with better quality for the same price.
Efficiency. In today's organizations, the emphasis is on efficiency: Companies
strive to produce goods or services as quickly as possible using as few
employees (and raw materials) as possible.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
147. One of the challenges for managers is managing personal happiness and life
goals. Explain why this is a challenge for managers. Discuss how you think
these ideas apply to you in the future.
Every person must consider whether his job (managerial or otherwise) helps
him or her reach his or her own happiness and goals. Many managers find
the job of management to be unfulfilling—they often feel they have to give
up too much of their personal lives because of the long hours or travel, or
they don't enjoy the constant activity that management entails. Also, many
managers feel caught in the middle between upper levels of management
and their employees. The student should offer an example of how this may
or may not affect her in the future.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
148. Identify and describe the four managerial functions. Give a specific example
of each.
Planning is setting goals and deciding how to achieve them. Organizing is
arranging tasks, people, and other resources to accomplish the work.
Leading is motivating, directing, and otherwise influencing people to work
hard to achieve the goals. Controlling is monitoring performance, comparing
it to goals, and taking corrective action as needed. The student should give
an example of each.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
149. List the three levels of management in the traditional pyramid. Give an
example of a task that a manager at each level might perform.
Managers may be classified into three levels: top, middle, and first-line.
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it. They
need to pay a lot of attention to the environment outside the organization,
being alert for long-run opportunities and problems and devising strategies
for dealing with them. Thus, executives at this level must be future oriented,
dealing with uncertain, highly competitive conditions.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
150. List Mintzberg's findings about the nature of managerial work.
A manager relies more on verbal than on written communication.
A manager works long hours at an intense pace.
A manager's work is characterized by fragmentation, brevity, and variety.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
151. List the characteristics that most entrepreneurs have.
The characteristics that most entrepreneurs have include: high need for
achievement, belief in personal control of destiny, high energy level and
action orientation, high tolerance for ambiguity, and self-confidence and
tolerance for risk.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
152. Define the three types of principal skills that managers need according to
Robert Katz. At which level of management is each skill most important?
Technical skills consist of job-specific knowledge needed to perform well in a
specialized field. Having the requisite technical skills seems to be most
important at the lower levels of management—that is, among first-line
managers.
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
Conceptual skills are particularly important for top managers, who must deal
with problems that are ambiguous but that could have far-reaching
consequences.
Human skills are the ability to work well with others to get things done.
These skills—the ability to motivate, to inspire trust, to communicate with
others—are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
3. (p. 37) An "attitude of trial" refers in part to a willingness to set aside belief and
conventional wisdom and to act on the facts.
FALSE
Stanford business scholars Jeffrey Pfeffer and Robert Sutton describe an attitude
of wisdom as a mind-set that, first, is willing to set aside belief and conventional
wisdom and to act on the facts and, second, has an unrelenting commitment to
gathering information necessary to make informed decisions and to keeping pace
with new evidence to update practices.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
4. (p. 37) Proponents of evidence-based management would say there are few really
new ideas.
TRUE
Evidence-based management is based on three truths, one of which is that there
are few really new ideas. Most supposedly new ideas are old, wrong, or both.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
5. (p. 38) Peter Drucker was the author of The Practice of Management and has
been described as the creator and inventor of modern management.
TRUE
Who is Peter Drucker? "He was the creator and inventor of modern
management," says management guru Tom Peters. In 1954, Drucker published
his famous text, The Practice of Management.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
6. (p. 39) The contemporary perspective of management includes three viewpoints:
systems, behavioral and quantitative.
FALSE
The contemporary perspective of management includes three viewpoints:
systems, contingency, and quality-management.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
7. (p. 39) The behavioral viewpoint on management is part of the historical
perspective.
TRUE
The historical perspective of management includes three viewpoints: classical,
behavioral, and quantitative.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
8. (p. 39) Studying theoretical perspectives of management can be a source of new
ideas.
TRUE
Studying theoretical perspectives of management can, among other things,
provide new ideas that may be useful to you when you come up against new
situations.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
9. (p. 39) Because of radical changes to modern business practice, studying
theoretical perspectives of management unfortunately does not provide a helpful
understanding of the present.
FALSE
Studying theoretical perspectives of management can, among other things, help
us to understand the present. "Sound theories help us interpret the present, to
understand what is happening and why," say Christensen and Raynor.
Understanding history will help you understand why some practices are still
favored, whether for right or wrong reasons.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
10. (p. 39) Noah is new to management in the music industry, which is undergoing
dramatic change. He should study theoretical perspectives of management to
help him predict some of the probable outcomes of this change and help him
decide on his strategy going forward.
TRUE
Studying theoretical perspectives of management provides good theories that
can help you make predictions and enable you to develop a set of principles that
will guide your actions.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
11. (p. 39) Cisco Systems, a telecommunication company, switched from a
traditional pyramid hierarchy to "management councils" for decision-making in
order to add authority and accountability.
FALSE
Will the system of "management councils" at Cisco work? Some insiders say it
adds bureaucracy and dilutes authority and accountability. CEO John Chambers
argues that the system is the only way a company as large as Cisco can grow fast
because it enables it to move as quickly and nimbly as it needs to.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
12. (p. 40) The classical viewpoint emphasized ways to manage work more
independently.
FALSE
The classical viewpoint emphasized finding ways to manage work more
efficiently.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
13. (p. 40) Frank and Lillian Gilbreth were chief proponents of scientific
management.
TRUE
Two chief proponents of scientific management were Frederick W. Taylor and the
team of Frank and Lillian Gilbreth.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
14. (p. 40) A "therblig", a term coined by Frank Gilbreth, is a unit of motion in the
workplace.
TRUE
A made-up word you won't find in most dictionaries, therblig was coined by
Frank Gilbreth which refers to 1 of 17 basic motions. By identifying the therbligs
in a job, Frank and his wife, Lillian, were able to eliminate motions while
simultaneously reducing fatigue.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
15. (p. 40) The two branches of the classical viewpoint of management are scientific
and structural.
FALSE
The classical viewpoint, which emphasized finding ways to manage work more
efficiently, had two branches—scientific and administrative—each of which is
identified with particular pioneering theorists.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
16. (p. 40) In general, classical management assumes that people are self-
interested.
FALSE
In general, classical management assumes that people are rational.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
17. (p. 40) Ryan was having a hard time concentrating on work on Friday afternoon.
He had friends visiting for the weekend and he kept checking his social media
sites and other Web sites to solidify his plans. He certainly wasn't working as
hard as he could have been, something that scientific management theorist
Frederick Taylor would have called "soldiering".
TRUE
Frederick Taylor called deliberately working at less than full capacity soldiering.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
18. (p. 40) Motion studies were used to assess and improve efficiency as part of the
classical viewpoint.
TRUE
Frederick Taylor based his scientific management system (part of the classical
viewpoint) on motion studies, in which he broke down each worker's job into
basic physical motions and then trained workers to use the methods of their
best-performing co-workers.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
19. (p. 41) As part of the scientific management viewpoint, Taylor suggested paying
all employees doing the same job the same wage.
FALSE
Taylor suggested employers institute a differential rate system, in which more
efficient workers earned higher wages.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
20. (p. 41) Under the differential rate system proposed by Frederick Taylor,
employees should be paid on the basis of seniority.
FALSE
Taylor suggested employers institute a differential rate system, in which more
efficient workers earned higher wages.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
21. (p. 42) The first person to identify the major functions of management was
Henri Fayol.
TRUE
Fayol was the first to identify the major functions of management—planning,
organizing, leading, and controlling, as well as coordinating—the first four of
which provide the framework for most management books.
AACSB: Analytic
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
22. (p. 42) Administrative management is concerned with the jobs of individuals.
FALSE
Scientific management is concerned with the jobs of individuals. Administrative
management is concerned with managing the total organization.
AACSB: Analytic
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
23. (p. 43) One of the problems with the classical viewpoint is that its principles
cannot be easily grasped by most workers.
FALSE
A flaw in the classical viewpoint is that it is mechanistic: It tends to view humans
as cogs within a machine, not taking into account the importance of human
needs.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
24. (p. 43) Fast food companies like McDonald's have used job specialization, and
time and motion studies to increase productivity. This reflects the important
contributions of the quantitative viewpoint of management.
FALSE
The essence of the classical viewpoint was that work activity was amenable to a
rational approach, that through the application of scientific methods, time and
motion studies, and job specialization it was possible to boost productivity.
Indeed, these concepts are still in use today, the results visible to you every time
you visit McDonald's or Pizza Hut.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
25. (p. 43) Bureaucracy, as conceptualized by Max Weber, was his ideal way to
structure an organization.
TRUE
To German sociologist Max Weber, a bureaucracy was a rational, efficient, ideal
organization based on principles of logic.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
26. (p. 43) Max Weber felt that impersonality was a positive attribute of an
organization that would lead to better performance.
TRUE
To German sociologist Max Weber, a better-performing organization should have
five positive bureaucratic features, including impersonality, without reference or
connection to a particular person.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
27. (p. 44) Motivating employees toward achievement is a focus of the classical
viewpoint of management.
FALSE
The behavioral viewpoint emphasized the importance of understanding human
behavior and of motivating employees toward achievement.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
28. (p. 44) Hugo Munsterberg suggested that psychologists could contribute to
industry by studying jobs and determining which people are best suited to
specific jobs.
TRUE
Munsterberg suggested that psychologists could contribute to industry in three
ways. One was to study jobs and determine which people are best suited to
specific jobs.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
29. (p. 44) Douglas McGregor was one of the pioneers of early behaviorism.
FALSE
Early behaviorism was pioneered by Hugo Munsterberg, Mary Parker Follett, and
Elton Mayo. Douglas McGregor was a pioneer of the human relations movement.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
30. (p. 45) Mary Parker Follett believed that conflicts within organization should be
resolved to mutual satisfaction through a process called integration.
TRUE
Follett believed that conflicts should be resolved by having managers and
workers talk over differences and find solutions that would satisfy both parties—
a process she called integration.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
31. (p. 46) The idea that workers become more productive if they think that
managers care about their welfare is called the "Hawthorne Effect."
TRUE
The Hawthorne effect theorized that employees worked harder if they received
added attention, if they thought that managers cared about their welfare and that
supervisors paid special attention to them.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
32. (p. 46) The Hawthorne studies have been criticized for poor design and a lack of
empirical data to support the conclusions, so the findings cannot be applied to
modern management.
FALSE
Ultimately, the Hawthorne studies were faulted for being poorly designed and not
having enough empirical data to support the conclusions. Nevertheless, they
succeeded in drawing attention to the importance of "social man" (social beings)
and how managers using good human relations could improve worker
productivity. This in turn led to the so-called human relations movement in the
1950s and 1960s.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
33. (p. 46) Abraham Maslow and Douglas McGregor were theorists in the human
relations movement.
TRUE
The two theorists who contributed most to the human relations movement—
which proposed that better human relations could increase worker productivity
—were Abraham Maslow and Douglas McGregor.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
34. (p. 46) Abraham Maslow would say that some human needs must be satisfied
before others.
TRUE
What motivates you to perform: Food? Security? Love? Recognition? Self-
fulfillment? Probably all of these, Abraham Maslow would say, although some
needs must be satisfied before others.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
35. (p. 46) Sarah is a manager who keeps a tight rein on her staff since she
considers her workers to be irresponsible, lazy, and resistant to change. She is a
Theory Y manager.
FALSE
Theory X represents a pessimistic, negative view of workers. In this view,
workers are considered to be irresponsible, to be resistant to change, to lack
ambition, to hate work, and to want to be led rather than to lead. Theory Y
represents the outlook of human relations proponents—an optimistic, positive
view of workers.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
36. (p. 47) Because the human relations movement was considered too simplistic
for practical use, it has been superseded by the behavioral science approach to
management.
TRUE
The human relations movement was a necessary correction to the sterile
approach used within scientific management, but its optimism came to be
considered too simplistic for practical use. More recently, the human relations
view has been superseded by the behavioral science approach to management.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
37. (p. 47) The management theory that draws from the disciplines of psychology,
sociology, anthropology, and economics is the management science approach.
FALSE
Behavioral science relies on scientific research for developing theories about
human behavior that can be used to provide practical tools for managers. The
disciplines of behavioral science include psychology, sociology, anthropology, and
economics.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
38. (p. 47) Behavioral science research has shown that competition is superior to
cooperation in promoting achievement and productivity.
FALSE
Behavioral science research found that cooperation is superior to competition in
promoting achievement and productivity.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
39. (p. 48) The application to management of techniques such as statistics and
computer simulations is known as quantitative management.
TRUE
Quantitative management emphasizes the application to management of
quantitative techniques, such as statistics and computer simulations.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
40. (p. 48) Michael is a manager of a downtown hotel and is currently considering
pricing of rooms for the upcoming holiday season. He would be wise to use the
mathematical tools of management science to help him with this decision.
TRUE
Management science focuses on using mathematics to aid in problem solving and
decision making such as what price to charge for a hotel room at a given time.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
41. (p. 48) The behavioral science approach to management has its roots in
techniques created for American and British military personnel and equipment
in World War II.
FALSE
When the Americans entered the war in 1941, they used a successful statistical
British model to form operations research (OR) teams to determine how to
deploy troops, submarines, and other military personnel and equipment most
effectively. OR techniques have since evolved into quantitative management.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
42. (p. 49) Over the years, Toyota has used a variety of operations research-based
"lean management" techniques to sell its cars on the basis of superior quality.
TRUE
Over the years, Toyota Motor Corp. developed a variety of production techniques
that drew in part on operations research. These efficient techniques, which all
come under the term "lean management," enabled Toyota to sell its cars on the
basis of their superior quality.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
43. (p. 49) Contingency management is concerned with work scheduling,
productions planning, and optimal levels of inventory.
FALSE
Operations management is concerned with work scheduling, production
planning, facilities location and design, and decisions about the optimum levels
of inventory a company should maintain.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
44. (p. 51) A set of interrelated parts that operate together to achieve a common
purpose is called a system.
TRUE
A system is a set of interrelated parts that operate together to achieve a common
purpose.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
45. (p. 51) For a jewelry designer, gold and silver rings, earrings, and bracelets are
considered system inputs.
FALSE
For a jewelry designer, gold and silver rings, earrings, and bracelets are
considered system outputs, which here are the products produced by the
organization.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
46. (p. 51) Feedback is one of the four parts of a system.
TRUE
The four parts of a system are inputs, outputs, transformational processes and
feedback (See Figure 2.3).
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
47. (p. 52) In a closed system, an organization has little interaction with its
environment.
TRUE
A closed system has little interaction with its environment; that is, it receives
very little feedback from the outside.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
48. (p. 52) One reason for the success of the Tommy Hilfiger clothing brand in the
1990s was maintaining a closed system with respect to young consumers'
feedback.
FALSE
"When Hilfiger's distinctive logo-laden shirts and jackets started showing up on
urban rappers in the early ‘90s," says one account, "the company started sending
researchers into music clubs to see how this influential group wore the styles."
By having constant feedback—an open system—with young consumers, Hilfiger
was rewarded: In the late ‘90s, its jeans became the No.1 brand in this age group.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
49. (p. 52) Continuous learning in an organization is more likely to occur in an open
system than a closed one.
TRUE
The concept of open systems, which stresses feedback from multiple
environmental factors, both inside and outside the organization, attempts to
ensure a continuous learning process in order to correct old mistakes and avoid
new ones.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
50. (p. 53) The contingency viewpoint began to develop when managers discovered
that a variety of different mathematical equations can be used for problem
solving and decision making.
FALSE
The contingency viewpoint began to develop when managers discovered that
under some circumstances better results could be achieved by breaking the one-
best-way rule. The contingency viewpoint emphasizes that a manager's approach
should vary according to—that is, be contingent on—the individual and the
environmental situation.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
51. (p. 53) The manager following the contingency viewpoint would ask, "What
management method is the best to use under these particular circumstances?"
TRUE
The manager following the contingency viewpoint would ask, "What method is
the best to use under these particular circumstances?"
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
52. (p. 54) Gary Hamel believes than management innovation can be improved by
identifying and sometime challenging core beliefs that people have about an
organization.
TRUE
How do you get the ball rolling in management innovation, particularly in a
traditional, conventional company? Hamel believes that the answer can be found
by identifying core beliefs that people have about the organization, especially
those that detract from the pursuit of management innovation.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
53. (p. 55) Mindfulness is most helpful in improving quality control.
FALSE
Mindfulness is associated with cultivating flexibility, which can help you take a
contingency point of view towards management.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
54. (p. 56) Quality control focuses on the performance of workers, urging
employees to strive for "zero defects".
FALSE
Quality control is a strategy for minimizing errors by managing each state of
production. Quality assurance focuses on the performance of workers, urging
employees to strive for "zero defects".
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
55. (p. 56) The total ability of a product or service to meet customer needs is known
as functionality.
FALSE
Quality refers to the total ability of a product or service to meet customer needs.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
56. (p. 56-57) Deming and Juran were part of the quality-management movement.
TRUE
In the years after World War II, the imprint "Made in Japan" on a product almost
guaranteed that it was cheap and flimsy. That began to change with the arrival in
Japan of two Americans, W. Edwards Deming and Joseph M. Juran, pioneers of the
quality management movement.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
57. (p. 57) The two sources of information about quality in Total Quality
Management are customers and competitors.
FALSE
One component of TQM
is to listen to and learn from customers and employees. TQM companies pay
attention to their customers, the people who use their products or services. In
addition, employees within the companies listen and learn from other
employees, those outside their own work areas.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
58. (p. 58) A learning organization is one that actively creates, acquires, and
transfers knowledge within itself and is able to modify itself to reflect new
knowledge.
TRUE
A learning organization is an organization that actively creates, acquires, and
transfers knowledge within itself and is able to modify its behavior to reflect new
knowledge.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
59. (p. 58) An information organization has three parts: creating and acquiring
knowledge, transferring knowledge, and modifying behavior.
FALSE
A learning organization has three parts: creating and acquiring knowledge,
transferring knowledge, and modifying behavior.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
60. (p. 59) A knowledge worker is someone whose occupation is principally
concerned with generating or interpreting information.
TRUE
A knowledge worker is someone whose occupation is principally concerned with
generating or interpreting information, as opposed to manual labor.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
61. (p. 59) A boundaryless organization is an organization whose members are
geographically apart.
FALSE
A virtual organization is an organization whose members are geographically
apart, usually working with e-mail, collaborative computing, and other computer
connections.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
62. (p. 59) The opposite of a bureaucracy is a boundaryless organization.
TRUE
The opposite of a bureaucracy, with its numerous barriers and divisions, a
boundaryless organization is a fluid, highly adaptive organization whose
members, linked by information technology, come together to collaborate on
common tasks.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
63. (p. 59) Human capital is the economic or productive potential of employee
knowledge, experience, and actions.
TRUE
Human capital is the economic or productive potential of employee knowledge,
experience, and actions.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
64. (p. 60) Among aspects of human capital are goodwill, mutual respect,
cooperation, trust, and teamwork.
FALSE
Among aspects of social capital are goodwill, mutual respect, cooperation, trust,
and teamwork.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
Multiple Choice Questions
65. (p. 37) "True is better than new" is one of the truths of
A. scientific management.
B. the human relations movement.
C. operations management.
D. evidence-based management.
E. management science.
Evidence-based management is based on three truths: there are few really new
ideas, true is better than new, and doing well usually dominates.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
66. (p. 39) The contemporary perspective includes which of the following
viewpoints?
A. Behavioral
B. Quantitative
C. Contingency
D. Classical
E. Rational
The contemporary perspective also includes three viewpoints—systems,
contingency, and quality-management.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
67. (p. 39) Which of the following is a good reason for
oretical perspectives of management?
A. Provides an understanding of the competitors' strengths
B. Eliminates the need for in-depth analysis
C. Correctly guides the writing of a mission statement
D. Provides clues to the meaning of your managers' decisions
E. Acts as a encyclopedia of solutions
Studying management theory provides understanding of the present, a guide to
action, a source of new ideas, clues to the meaning of your managers' decisions,
and clues to the meaning of outside events.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
68. (p. 40) Scientific and administrative management are part of the ________
viewpoint.
A. behavioral
B. contingency
C. classical
D. quantitative
E. quality
The classical viewpoint, which emphasized finding ways to manage work more
efficiently, had two branches—scientific and administrative.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
69. (p. 40) ______ emphasized the scientific study of work methods to improve
productivity of individual workers.
A. Scientific management
B. Quantitative science
C. TQM
D. Management science
E. Administrative management
Scientific management emphasized the scientific study of work methods to
improve the productivity of individual workers.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
70. (p. 40) Frank and Lillian Gilbreth identified 17 basic units of _____, each of which
they called a "therblig".
A. time
B. distance
C. energy
D. data
E. motion
A made-up word you won't find in most dictionaries, therblig was coined by
Frank Gilbreth and is, in fact, "Gilbreth" spelled backward, with the "t" and the "h"
reversed. It refers to 1 of 17 basic motions. By identifying the therbligs in a job,
Frank and his wife, Lillian, were able to eliminate motions while simultaneously
reducing fatigue.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
71. (p. 41) Which of the following is NOT one of the principles proposed by Fredrick
Taylor to eliminate soldiering?
A. Give workers the training and incentives to do the task properly
B. Apply rule-of-thumb methods to the study of the task
C. Carefully select workers with the right abilities for the task
D. Study each part of the task scientifically
E. Use scientific principles to plan the work methods
Taylor believed that managers could eliminate soldiering by applying four
principles of science: 1. Evaluate a task by scientifically studying each part of the
task (not use old rule-of-thumb methods). 2. Carefully select workers with the
right abilities for the task. 3. Give workers the training and incentives to do the
task with the proper work methods. 4. Use scientific principles to plan the work
methods and ease the way for workers to do their jobs.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
72. (p. 40) Fredrick Taylor and the Gilbreths were proponents of which of the
following?
A. Scientific management and administrative management, respectively
B. Scientific management and human relations management, respectively
C. Human relations
D. Management science
E. Scientific management
Scientific management emphasized the scientific study of work methods to
improve the productivity of individual workers. Two of its chief proponents were
Frederick W. Taylor and the team of Frank and Lillian Gilbreth.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
73. (p. 41) Abby runs a house-cleaning service and has noticed that some of her
staff are much more efficient than others and can clean a house in about half the
average time. She would like to reward these workers with a higher wage by
implementing what would be known by Taylor as a(n)
A. sliding scale system.
B. incentivized wage system.
C. differential rate system.
D. productivity wage system.
E. merit pay system.
Taylor, the father of scientific management, suggested employers institute a
differential rate system, in which more efficient workers earned higher wages.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
74. (p. 40) Taylor called the tendency for people to deliberately work at less than
full capacity
A. loafing.
B. underachieving.
C. underperforming.
D. therbliging.
E. soldiering.
No doubt there are some days when you haven't studied, or worked, as efficiently
as you could. This could be called "underachieving," or "loafing," or what Taylor
called it—soldiering, deliberately working at less than full capacity.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
75. (p. 40-41) Which of the following is NOT a part of Frederick Taylors's work in
scientific management?
A. Elimination of soldiering
B. Motion studies
C. Differential rate system
D. Hierarchy of human needs
E. Raising productivity
Taylor did motion studies, proposed a differential rate system, and believed he
could raise productivity through eliminating soldiering. The hierarchy of human
needs is credited to Maslow.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
76. (p. 42) __________ was concerned with managing the total organization and was
studied by Fayol and Weber.
A. Administrative management
B. Operations management
C. Management science
D. Scientific management
E. Contemporary management
Administrative management is concerned with managing the total organization.
Among the pioneering theorists were Henri Fayol and Max Weber.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
77. (p. 42) Of the following, which is one of the functions of management described
by Fayol?
A. Accommodating
B. Coordinating
C. Arbitrating
D. Collaborating
E. Tasking
Fayol was the first to identify the major functions of management—planning,
organizing, leading, and controlling, as well as coordinating.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
78. (p. 42) Which of the following was a positive feature of bureaucracy, according
to Max Weber?
A. Generalists in the workplace
B. A flat organization with little hierarchy of authority
C. Hiring and promotion based on social status
D. Clear division of labor
E. Flexible rules and procedures
Weber felt that a better-performing organization should have five positive
bureaucratic features including a clear division of labor, with parts of a complex
job being handled by specialists.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
79. (p. 43) McDonald's ability to deliver food quickly and inexpensively has its roots
in which management theory?
A. Management science viewpoint
B. Behavioral viewpoint
C. Mathematical viewpoint
D. Systems viewpoint
E. Classical viewpoint
The essence of the classical viewpoint was that work activity was amenable to a
rational approach, that through the application of scientific methods, time and
motion studies, and job specialization it was possible to boost productivity.
Indeed, these concepts are still in use today, the results visible to you every time
you visit McDonald's or Pizza Hut.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
80. (p. 43) The most significant flaw in the classical viewpoints is that it
A. overemphasizes mathematical techniques.
B. is impractical in the workplace.
C. does not address productivity.
D. discounts the importance of human needs.
E. does not account for irrational behavior.
A flaw in the classical viewpoint is that it is mechanistic: It tends to view humans
as cogs within a machine, not taking into account the importance of human
needs.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
81. (p. 43) The essence of the classical viewpoints is that
A. resources are limited.
B. people are self-interested.
C. people will take on responsibility if it is offered to them.
D. workers behave how you expect them to.
E. a rational approach can be used to boost productivity.
The essence of the classical viewpoint was that work activity was amenable to a
rational approach, that through the application of scientific methods, time and
motion studies, and job specialization it was possible to boost productivity.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
82. (p. 44) Which of the following viewpoints emphasized the importance of
understanding human actions and of motivating employees toward
achievement?
A. Qualitative viewpoint
B. Behavioral viewpoint
C. Classical viewpoint
D. Contingency viewpoint
E. Management science viewpoint
The behavioral viewpoint emphasized the importance of understanding human
behavior and of motivating employees toward achievement.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
83. (p. 44) Which of the following is one of the phases in the development of the
behavioral viewpoint?
A. Human resource management
B. Operations management
C. Operations research
D. Human relations movement
E. Administrative management
The behavioral viewpoint developed over three phases: (1) early behaviorism,
(2) the human relations movement, and (3) behavioral science.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
84. (p. 44) Who was known as "the father of industrial psychology"?
A. Frederick Taylor
B. Mary Parker Follett
C. Max Weber
D. Elton Mayo
E. Hugo Munsterberg
Hugo Munsterberg has been called the father of industrial psychology. His ideas
led to the field of industrial psychology, the study of human behavior in
workplaces, which is still taught in colleges today.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
85. (p. 44) Emily runs a consulting business that assists in the hiring process, using
a team of psychologists to help companies to better understand their specific
jobs and the type of employees that are best suited to fill them. Her business
relies on the work of which behavioral theory pioneer?
A. Hugo Munsterberg
B. Douglas McGregor
C. Mary Parker Follett
D. Frederick Taylor
E. Elton Mayo
Hugo Munsterberg suggested that psychologists could contribute to industry in
three ways. One of them was that they could study jobs and determine which
people are best suited to specific jobs.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
86. (p. 45) The idea that the work process should be under the control of workers
with the relevant knowledge, rather than of managers, who should act as
facilitators, was developed by
A. Lillian Gilbreth.
B. Mary Parker Follet.
C. Max Weber.
D. Hugo Munsterberg.
E. Elton Mayo.
Follett thought organizations should become more democratic, with managers
and employees working cooperatively. One of her most important ideas was that
the work process should be under the control of workers with the relevant
knowledge, rather than of managers, who should act as facilitators.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
87. (p. 45) Among the recommendations of Mary Parker Follett was that
A. motion studies should be made of every job.
B. managers should design and control the work process.
C. integration should occur in organizations when conflicts arise.
D. a competitive environment is most conducive to productivity.
E. everyone should understand their roles: managers as order-givers, and
employees as order-takers.
One of Mary Parker Follet's important contributions to management theory was
that conflicts should be resolved by having managers and workers talk over
differences and find solutions that would satisfy both parties—a process she
called integration.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
88. (p. 46) Which research, though flawed, drew attention to the idea that managers
using good human relations could improve worker productivity?
A. Maslow's hierarchy of human needs.
B. Operations research.
C. Theory Y.
D. Fayol's administrative management.
E. The Hawthorne studies.
The Hawthorne studies were faulted for being poorly designed and not having
enough empirical data to support the conclusions. Nevertheless, they succeeded
in drawing attention to the importance of "social man" (social beings) and how
managers using good human relations could improve worker productivity.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
89. (p. 46) Who proposed the hierarchy of human needs as a theory of motivation?
A. McGregor
B. Weber
C. Munsterberg
D. Maslow
E. Mayo
In 1943 Maslow proposed his famous hierarchy of human needs: physiological,
safety, love, esteem, and self-actualization.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
90. (p. 46) An optimistic view of workers that envisions them as capable of
accepting responsibility and working in a self-directed manner is representative
of
A. hierarchy of accountability.
B. hierarchy of needs.
C. Theory X.
D. Theory Y.
E. self-fulfilling prophecy.
Theory Y represents the outlook of human relations proponents—an optimistic,
positive view of workers. In this view, workers are considered to be capable of
accepting responsibility, self-direction, and self-control and of being imaginative
and creative.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
91. (p. 46) Amanda was a tough manager, and made it a regular practice to check up
on her staff, looking for cheating on timesheets and people coming back late from
lunch. She was not at all surprised to find rule-breakers with regularity, but she
may have been falling into what management trap?
A. Self-fulfilling prophecy
B. Theory Y
C. Soldiering
D. The Hawthorne effect
E. The hierarchy of needs
The principal contribution offered by the Theory X/Theory Y perspective is that
it can help managers avoid falling into the trap of the self-fulfilling prophecy. This
is the idea that if a manager expects a subordinate to act in a certain way, the
worker may, in fact, very well act that way, thereby confirming the manager's
expectations: The prophecy that the manager made is fulfilled.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
92. (p. 47) Behavioral science relies on __________ for developing theories about
human behavior that can help managers.
A. rules-of-thumb
B. scientific research
C. intuition
D. simulations
E. trial and error
Behavioral science relies on scientific research for developing theories about
human behavior that can be used to provide practical tools for managers.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
93. (p. 47) Which of the following is a discipline that is part of behavioral science?
A. Sociology
B. Physics
C. Computer science
D. Biology
E. Chemistry
The disciplines of behavioral science include psychology, sociology, anthropology,
and economics, all of which consider human behavior.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
94. (p. 47) Behavioral science research suggests that which of the following doesn't
necessarily promote achievement, and actually can make people hostile?
A. The Hawthorne effect
B. Competition
C. Soldiering
D. Industrial espionage
E. Self-fulfilling prophecies
Behavioral science research concludes that cooperation is superior to
competition in promoting achievement and productivity. Alfie Kohn notes that
competition can make people hostile.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
95. (p. 48) Applying techniques like statistics and computer simulations to
management is characteristic of the ______ viewpoint.
A. classical
B. behavioral
C. managerial
D. quantitative
E. contingency
The third and last category under historical perspectives consists of quantitative
viewpoints, which emphasize the application to management of quantitative
techniques, such as statistics and computer simulations.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
96. (p. 48) ______ focuses on using mathematics to aid in problem solving and
decision making.
A. Management science
B. Behavioral science
C. TQM
D. Scientific management
E. Administrative management
Management science focuses on using mathematics to aid in problem solving and
decision making.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
97. (p. 48) Emilio has developed a mathematical model for the film studio at which
he works. The model will help in determining release dates and the desirable
number of screens for new movies. This model is an application of
A. scientific management.
B. behavioral science.
C. management science.
D. contingency management.
E. administrative management.
Management science stresses the use of rational, science-based techniques and
mathematical models to improve decision making and strategic planning.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
98. (p. 48) The tools of ______ are useful for UPS and FedEx in deciding how many
employees and aircraft should be scheduled during the month of December.
A. scientific management
B. soldiering
C. management science
D. the Hawthorne studies
E. efficiency management
Management science focuses on using mathematics to aid in problem solving and
decision making and is likely what UPS and FedEx use to decide how many
package sorters to schedule and at which times.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
99. (p. 49) ______ focuses on managing the production and delivery of an
organization's products or services more effectively.
A. Operations management
B. Management science
C. Scientific management
D. Operations research
E. Administrative management
Operations management focuses on managing the production and delivery of an
organization's products or services more effectively.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
100. (p. 49) Pina works for a large amusement park and is in charge of scheduling
the sizable staff, including ride attendants, food service and janitorial employees,
and character actors, in an effective manner. This work is typical of
A. operations research.
B. contingency planning.
C. quality management.
D. operations management.
E. qualitative analysis.
Operations management is concerned with work scheduling, production
planning, facilities location and design, and decisions about the optimum
inventory a company should maintain.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
101. (p. 51) The ______ viewpoint sees organizations as entities made up of
interrelated parts known as inputs, outputs, transformation processes, and
feedback.
A. classical
B. closed loop
C. contingency
D. quality management
E. systems
The systems viewpoint regards the organization as a system of interrelated parts.
The four parts of a system are inputs, outputs, transformation processes and
feedback.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
102. (p. 51) A(n) __________ is a set of interrelated parts operating together to achieve
a common purpose.
A. transformational process
B. environment
C. system
D. output
E. therblig
A system is a set of interrelated parts that operate together to achieve a common
purpose.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
103. (p. 51) Modern Wealth Management has seen a consistent profit in its business
of providing financial advice. The profit would be considered a(n) _____ of the
system.
A. byproduct
B. input
C. transformational process
D. output
E. feedback loop
Outputs are the products, services, profits, losses, employee satisfaction or
discontent, and the like that are produced by the organization. Whatever comes
out of the system is an output.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
104. (p. 51) Stefan works on the assembly line of a US automobile manufacturer. He
would be considered a(n) ______ of this system.
A. participant
B. feedback mechanism
C. input
D. transformation process
E. output
Inputs are the people, money, information, equipment, and materials required to
produce an organization's goods or services. Whatever goes into a system is an
input.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
105. (p. 51) Customers lined up for hours to be among the first to purchase the
iPhone 4. The excitement for the product would be considered ______ in the
system.
A. an input
B. feedback
C. an output
D. affirmation
E. a transformative process
Feedback is information about the reaction of the environment to the outputs
that affects the inputs. Are the customers buying or not buying the product? That
information is feedback.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
106. (p. 52) A(n) ______________ continually interacts with its environment.
A. networked system
B. relational system
C. active system
D. open system
E. porous system
An open system continually interacts with its environment.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
107. (p. 52) A(n) ______________ receives very little feedback from the outside.
A. closed system
B. isolated system
C. neutral system
D. porous system
E. subsystem
A closed system has little interaction with its environment; that is, it receives
very little feedback from the outside.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
108. (p. 52) Many technology companies are hesitant to involve customers in the
development of their products, since they are trying to protect their latest
products and ideas from competitors' attempts to replicate them. This typically
results in a fairly ______ system.
A. responsive
B. closed
C. distinctive
D. stable
E. intelligent
A closed system has little interaction with its environment; that is, it receives
very little feedback from the outside.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
109. (p. 53) The ________ viewpoint emphasizes that a manager's actions should vary
according to the situation.
A. contingency
B. quality management
C. flexible management
D. systems
E. scenario
The contingency viewpoint emphasizes that a manager's approach should vary
according to—that is, be contingent on—the individual and the environmental
situation.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
110. (p. 53) Over the years, Vivian has a very diverse group of employees; some
were very interested in the financial rewards the company offered while others
really would prefer extra time off or even to be recognized at the monthly
department meetings. Vivian should consider the ______ viewpoint of
management in this case.
A. behavioral
B. systems
C. contingency
D. variance management
E. classical
The contingency viewpoint emphasizes that a manager's approach should vary
according to—that is, be contingent on—the individual and the environmental
situation.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
111. (p. 53) Which of the following approaches is characteristic of a manager using
the contingency viewpoint?
A. Purchasing new technology to improve efficiency
B. Simplifying the steps of the work process
C. Using motivational techniques to boost worker productivity
D. Assessing the characteristics of particular situation before deciding what to do
E. Performing a motion study
The contingency viewpoint emphasizes that a manager's approach should vary
according to—that is, be contingent on—the individual and the environmental
situation. Thus, the manager that assesses a particular situation and decides
what to do is using a contingency viewpoint.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
112. (p. 54) Gary Hamel believes that identifying and examining core beliefs that
people have about an organization can be helpful in improving management
A. rewards.
B. innovation.
C. restructuring.
D. planning.
E. motivation.
How do you get the ball rolling in management innovation, particularly in a
conventional company? Hamel believes that the answer can be found by
identifying core beliefs that people have about the organization, especially those
that detract from the pursuit of management innovation.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
113. (p. 55) "Mindfulness" is characterized by which of the following attributes?
A. Acting from a single perspective
B. Automatic behavior
C. Belief in one right way
D. Active engagement
E. Protecting traditional ideas
One barrier to being flexible is mindlessness. Instead we need to adopt the frame
of mind that Harvard psychology professor Ellen Langer has called mindfulness,
a form of active engagement.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
114. (p. 56) The strategy for minimizing errors by managing each stage of
production is called
A. TQM.
B. six sigma.
C. quality assurance.
D. zero defects.
E. quality control.
Quality control is defined as the strategy for minimizing errors by managing each
stage of production.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
115. (p. 56) Statistical sampling to locate errors by testing just some of the items in
a particular production run is a ______ technique.
A. quality control
B. continuous improvement
C. reengineering
D. quality assurance
E. total quality management
Quality control techniques were developed in the 1930s at Bell Telephone Labs
by Walter Shewart, who used statistical sampling to locate errors by testing just
some (rather than all) of the items in a particular production run.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
116. (p. 57) According to Deming, quality stemmed from a steady focus on the
organization's mission and
A. a reduction in production variation.
B. Theory Y management.
C. operations research.
D. the Hawthorne effect.
E. a self-fulfilling prophecy.
Deming believed that quality stemmed from "constancy of purpose"—steady
focus on an organization's mission—along with statistical measurement and
reduction of variations in production processes.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
117. (p. 57) Deming proposed that when something goes wrong, chances are
__________ that the system is at fault, and __________ that the individual worker is at
fault.
A. 15%, 85%
B. 35%, 65%
C. 50%, 50%
D. 65%, 35%
E. 85%, 15%
Deming proposed his so-called 85-15 rule—namely, when things go wrong, there
is an 85% chance that the system is at fault, only a 15% chance that the
individual worker is at fault.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
118. (p. 57) The comprehensive approach dedicated to continuous quality
improvement, training, and customer satisfaction is known as
A. quality rating.
B. quality assurance.
C. reengineering.
D. quality control.
E. total quality management.
Total quality management (TQM) is a comprehensive approach—led by top
management and supported throughout the organization—dedicated to
continuous quality improvement, training, and customer satisfaction.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
119. (p. 57) Which of the following is NOT a component of TQM?
A. Use accurate standards to identify and eliminate problems.
B. Urge employees to strive for "zero defects".
C. Make continuous improvement a priority.
D. Get every employee involved.
E. Listen to and learn from customers and employees.
The four components of TQM are as follows: 1. Make continuous improvement a
priority. 2. Get every employee involved. 3. Listen to and learn from customers
and employees. 4. Use accurate standards to identify and eliminate problems.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
120. (p. 58) Organizations that actively create, acquire, and transfer knowledge
within themselves and are able to modify their behavior to reflect this new
knowledge are called __________ organizations.
A. Hawthorne
B. information
C. Theory Y
D. TQM
E. learning
A learning organization is an organization that actively creates, acquires, and
transfers knowledge within itself and is able to modify its behavior to reflect new
knowledge.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
121. (p. 58) The term "learning organization" was coined by
A. Shewart.
B. Deming.
C. Juran.
D. Senge.
E. Mayo.
Learning organizations, says Massachusetts Institute of Technology professor
Peter Senge, who coined the term, are places "where people continually expand
their capacity to create the results they truly desire, where new and expansive
patterns of thinking are nurtured, where collective aspiration is set free, and
where people are continually learning how to learn together."
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
122. (p. 58) A change was underway at Andotek. The company had fallen behind the
competition so new talent had been hired, the training and development budget
had been doubled, and cross-functional teams were added to improve
information flow. It appears that Andotek is attempting to become a ______
organization.
A. closed system
B. Theory Y
C. contingency
D. learning
E. virtual
A learning organization is an organization that actively creates, acquires, and
transfers knowledge within itself and is able to modify its behavior to reflect new
knowledge. It can acquire knowledge by hiring new talent when needed, and
devoting significant resources to training. Transferring knowledge can be
improved by reducing barriers to information sharing.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
123. (p. 58) Audrey works for a large electronics company as a payroll manager. She
has just attended a software training where she learned new tools that she thinks
will benefit her staff. On the plane home Audrey began planning how she would
train everyone in order to help her department reach its goals. Audrey's
approach is most characteristic of what type of organization?
A. A bureaucratic organization
B. An operations research organization
C. A systems organization
D. A purposeful organization
E. A learning organization
A learning organization is an organization that actively creates, acquires, and
transfers knowledge within itself and is able to modify its behavior to reflect new
knowledge. It can acquire knowledge by devoting significant resources to
training. Transferring knowledge can be improved by reducing barriers to
information sharing.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
124. (p. 58) Scott works for an organization that describes itself as a "learning
organization." As a manager, which of the following actions is Scott most likely to
take while working for this organization?
A. Scott encourages his employees to work alone and attempt to fix problems
themselves for maximum efficiency.
B. Scott likes to promote from within because those folks know how "it has
always been done."
C. Scott avoids the high costs of training and development since his employees
are already familiar with standard procedures.
D. Scott puts all of his time into running his part of the organization, and feels
that reading trade journals is a big time waster.
E. When Scott needs another employee, he deliberately looks for someone who
will bring something new to the organization.
A learning organization is an organization that actively creates, acquires, and
transfers knowledge within itself and is able to modify its behavior to reflect new
knowledge. One of the ways to create and acquire knowledge is to hire new talent
and expertise when needed.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
125. (p. 59) Which of these is defined as an organization whose members are
geographically apart, usually working with e-mails, collaborative computing, and
other computer connections?
A. Virtual organization
B. Technological organization
C. Global organization
D. Boundaryless organization
E. Telecom organization
A virtual organization is an organization whose members are geographically
apart, usually working with e-mail, collaborative computing, and other computer
connections.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
126. (p. 59) A(n) __________ is defined as a fluid, highly adaptive organization whose
members, linked by information technology, come together to collaborate on
common tasks.
A. industrial organization
B. technological organization
C. virtual organization
D. boundaryless organization
E. collaborative organization
A boundaryless organization is a fluid, highly adaptive organization whose
members, linked by information technology, come together to collaborate on
common tasks.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
127. (p. 59) None of Javier's siblings went to college and all of them now work at
manual labor, but he went on to a university and became an actuary, calculating
insurance premiums for a Fortune 500 insurance company. Javier can be
described as a ______ worker.
A. knowledge
B. information
C. facts-based
D. data
E. research
A knowledge worker is someone whose occupation is principally concerned with
generating or interpreting information, as opposed to manual labor.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
128. (p. 59) Attracting, retaining, and developing great employees is a powerful
method to stay ahead of the competition, which demonstrates the importance of
______ capital.
A. human
B. labor
C. social
D. support
E. financial
Thinking about people as human capital has an obvious basis: "Attracting,
retaining, and developing great people is sometimes the only way our
organizations can keep up with the competition across the street or around the
globe," says Susan Meisinger, president and CEO of the Society for Human
Resource Management.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
129. (p. 60) ______ is the economic or productive potential of strong, trusting, and
cooperative relationships.
A. Human capital
B. Social capital
C. Financial capital
D. Economic capital
E. Knowledge capital
Social capital is the economic or productive potential of strong, trusting, and
cooperative relationships.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
130. (p. 60) To create a learning organization, managers must perform three key
functions or roles: build a commitment to learning, work to generate ideas with
impact, and
A. minimize stress with positive talk.
B. be fair to employees.
C. stir conflict before implementing new ideas.
D. work to generalize ideas with impact.
E. work to create chaos to generate new ideas.
To create a learning organization, managers must perform three key functions or
roles: (1) build a commitment to learning, (2) work to generate ideas with
impact, and (3) work to generalize ideas with impact.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
131. (p. 60) Which of the following is most likely to help build a learning
organization?
A. Direct staff to avoid failure at all costs
B. Create chaos to support new-idea generation
C. Restrict training to save expenses and improve the balance sheet
D. Encourage heated debates on every proposed idea
E. Create a psychologically safe environment
To create a learning organization, managers must perform three key functions or
roles: (1) build a commitment to learning, (2) work to generate ideas with
impact, and (3) work to generalize ideas with impact. To generalize ideas with
impact the staff can create a psychologically safe and comforting environment
that increases the sharing of successes, failures, and best practices.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
Essay Questions
132. (p. 38) How is management both an art and a science?
Intuition, judgment and experience are part of the successful mix of effective
management. These factors are more "art" than science, and may exist in a
manager without actual training in management. However, management also
uses the scientific method; it observes and gathers facts, makes decisions based
on the facts, makes predictions of future events, and tests the prediction under
systematic conditions. These are parts of the "science" of management.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
133. (p. 39) Why should one study different theoretical perspectives about
management? Give at least three reasons.
There are five good reasons for
oretical perspectives. The student may give any three of the following: (1)
understanding of the present, (2) guide to action, (3) source of new ideas, (4)
clues to meaning of your managers' decisions, (5) clues to meaning of outside
events.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-01 What's the payoff in studying different management perspectives; both yesterday's and today's?
Topic: Evolving Viewpoints: How We Got to Today's Management Outlook
134. (p. 40-43) Describe the fundamental ideas underlying the classical viewpoint to
management, and give at least one example of a modern practice that has its
roots in this view. Compare and contrast its two approaches.
The classical viewpoint is based on the assumption that people are rational. The
essence of the classical viewpoint was that work activity was amenable to a
rational approach, that through the application of scientific methods, time and
motion studies, and job specialization it was possible to boost productivity. The
classical viewpoint also led to such innovations as management by objectives and
goal setting, as we explain elsewhere.
The two major approaches are the scientific management approach and the
administrative approach.
Scientific management emphasized the scientific study of work methods to
improve the productivity of individual workers. Two of its chief proponents were
Frederick W. Taylor and the team of Frank and Lillian Gilbreth. Taylor used
motion studies and suggested using a differential rate system. The Gilbreths
expanded on Taylor's motion studies.
Administrative management is concerned with managing the total organization.
Among the pioneering theorists were Henri Fayol, who identified the major
functions of management, and Max Weber, who advocated five positive
bureaucratic features.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-02 If the name of the game is to manage work more efficiently; what can the classical viewpoint teach
me?
Topic: Classical Viewpoint: Scientific & Administrative
135. (p. 44-47) Explain the ideas emphasized by the behavioral viewpoint. List the
three phases of development of the behavioral viewpoint and discuss at least one
major contribution and its pioneer from each of the first two phases.
The behavioral viewpoint emphasized the importance of understanding human
behavior and of motivating employees toward achievement. The three phases
include the early behaviorism, the human relations movement, and behavioral
science.
Students should describe at least one of the following: The three people who
pioneered behavioral theory were Hugo Munsterberg, Mary Parker Follett, and
Elton Mayo. Hugo Munsterberg was the first to apply psychology to industry and
is called "the father of industrial psychology." Mary Parker Follet believed that
organizations should become more democratic, with managers and employees
working cooperatives. She anticipated some of today's concepts of "self-managed
teams," "worker empowerment," and "interdepartmental teams." Elton Mayo
conducted the Hawthorne studies, which demonstrated the Hawthorne effect—
that employees worked harder if they received added attention, if they thought
that managers cared about their welfare and that supervisors paid special
attention to them.
Students should describe at least one of the following: The two theorists who
contributed most to the human relations movement—which proposed that
better human relations could increase worker productivity—were Abraham
Maslow and Douglas McGregor. Abraham Maslow developed the Hierarchy of
Needs in his research to study motivation. Douglas McGregor developed Theory X
versus Theory Y to explain managers' attitudes toward employees.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-03 To understand how people are motivated to achieve; what can I learn from the behavioral
viewpoint?
Topic: Behavioral Viewpoint: Behaviorism, Human Relations, & Behavioral Science
136. (p. 48-49) Explain the emphasis of the quantitative viewpoint. Describe the two
major approaches to this viewpoint.
The quantitative viewpoint emphasizes that mathematically-based techniques
can help managers be more effective. The two approaches of quantitative
management are management science and operations management.
Management science focuses on using mathematics to aid in problem solving and
decision making. Operations management focuses on managing the production
and delivery of an organization's products or services more effectively.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-04 If the manager's job is to solve problems; how might the two quantitative approaches help?
Topic: Quantitative Viewpoints: Management Science & Operations Research
137. (p. 50-51) Describe the systems viewpoint and provide examples of each of the
four associated parts using a real or fictitious company.
The systems viewpoint sees organizations as a system, either open or closed,
with inputs, outputs, transformation processes, and feedback.
Inputs are the people, money, information, equipment, and materials required to
produce an organization's goods or services. Example: For a jewelry designer—
designer, money, artistic talent, gold and silver, tools, marketing expertise.
Transformational processes are the organization's capabilities in management
and technology that are applied to converting inputs into outputs. Example:
Designer's management skills (planning, organizing, leading, controlling), gold
and silver smithing tools and expertise, Web site for marketing.
Outputs are the products, services, profits, losses, employee satisfaction or
discontent, etc., produced by the organization. Example: Gold and silver rings,
earrings, bracelets, etc.
Feedback is the information about the reaction of the environment to the
outputs, which affects the inputs. Example: Web customers like African-style
designs, dislike imitation Old English designs.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 02-05 How can the exceptional manager be helped by the systems viewpoint?
Topic: Systems Viewpoint
138. (p. 54) Why is the contingency viewpoint important?
The contingency viewpoint is important because it seems to be the most
practical of the viewpoints. It addresses problems on a case-by-case basis and
varies the solution accordingly.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-06 In the end; is there one best way to manage in all situations?
Topic: Contingency Viewpoint
139. (p. 57) Describe Total Quality Management, and list at least three of the four
components of it that are used by organizations to implement it.
Total quality management (TQM) is a comprehensive approach—led by top
management and supported throughout the organization—dedicated to
continuous quality improvement, training, and customer satisfaction. The four
components of TQM are as follows: 1. Make continuous improvement a priority.
2. Get every employee involved. 3. Listen to and learn from customers and
employees. 4. Use accurate standards to identify and eliminate problems.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-07 Can the quality management viewpoint offer guidelines for true managerial success?
Topic: Quality-Management Viewpoint
140. (p. 58) What is a learning organization? What competitive advantage do
learning organizations hold?
A learning organization is one that actively creates, acquires, and transfers
knowledge within itself and is able to modify its behavior to reflect new
knowledge. Learning organizations can adapt more quickly to changing
conditions in the environment, and bring the knowledge and experience of a
wide range of employees to bear on new problems. Organizations must
continually learn new things or face obsolescence.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 02-08 Organizations must learn or perish. How do I build a learning organization?
Topic: The Learning Organization in an Era of Accelerated Change
Chapter 01 The Exceptional Manager: What You Do, How
You Do It Answer Key
True / False Questions
1. Virginia Rometty, CEO of IBM, believes that her success is due in part to her
ability to take risks.
TRUE
The ability to take risks, to embrace change and to keep going forward
despite fears and internal criticism, is important to any manager's survival,
regardless of gender. As Rometty says, "Growth and comfort do not coexist."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
2. Exceptional managers have a gift that cannot be taught.
FALSE
Being an exceptional manager is not exactly a gift, like a musician having
perfect pitch. In good part it may be an art. Fortunately, it is one that is
teachable.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
3. Management includes integrating the work of people through planning,
organizing, leading, and controlling the organization's resources.
TRUE
Management is defined as (1) the pursuit of organizational goals efficiently
and effectively by (2) integrating the work of people through (3) planning,
organizing, leading, and controlling the organization's resources.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
4. To be efficient in management means to use resources wisely and cost
effectively.
TRUE
Efficiency is the means of attaining the organization's goals. To be efficient
means to use resources like people, money, and raw materials wisely and
cost effectively.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
5. Efficiency and effectiveness are terms used interchangeably and
equivalently in management.
FALSE
To be efficient means to use resources like people, money, and raw
materials wisely and cost effectively. To be effective means to achieve
results, to make the right decisions, and to successfully carry them out so
they achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
6. Automated telephone systems are typically both very effective and very
efficient.
FALSE
We're accustomed to having our calls to companies for information and
customer support answered not by people but by automated answering
systems. This arrangement is efficient for the companies, since they no
longer need as many employees to answer the phones. But it's not effective
if it leaves us, the customers, fuming and less inclined to continue doing
business.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
7. An effective manager has a multiplier effect on the organization, meaning
his or her influence is multiplied beyond the results achievable by just one
person.
TRUE
In being a manager you have a multiplier effect: your influence on the
organization is multiplied far beyond the results that can be achieved by just
one person acting alone.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
8. John Hammergren's compensation of $145 million in 2010 as CEO of health
care technology firm McKesson is typical for CEOs in North America today.
FALSE
The business press frequently reports on the astronomical earnings of top
chief executive officers. The top earner was John Hammergren of health care
technologies company McKesson, who led the list that year with $145
million. However, this kind of huge payday isn't common. Median
compensation for top-ranked CEOs in North America in 2010 was $9 million.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
9. Studying management is likely to help you once you are in a manager role,
but is unlikely to be beneficial before then.
FALSE
There are several benefits of studying management that you can use before
being a manager. You will better understand how to deal with organizations
from the outside, how to relate to your supervisors, how to interact with co-
workers, and how to manage yourself in the workplace.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
10. One of the payoffs of studying management is an improved understanding
of how to deal with organizations as a customer.
TRUE
Studying management is likely to help you understand how to deal with
organizations from the outside. Since we all are in constant interaction with
all kinds of organizations, it helps to understand how they work and how the
people in them make decisions. Such knowledge may give you some
defensive skills that you can use in dealing with organizations as a customer
or investor.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
11. One of the rewards of being a manager is that you can build a catalog of
successful products or services.
TRUE
There are many rewards, apart from those of money and status, to being a
manager. One of these is that you can build a catalog of successful products
or services. Every product or service you provide becomes a monument to
your accomplishments.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
12. If you enjoy mentoring and helping others to grow, management is a great
job.
TRUE
According to productivity-improvement expert Odette Pollar, "If you truly like
people and enjoy mentoring and helping others to grow and thrive,
management is a great job."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
13. Most people prefer to have a combination of a high level of skill and low
level of challenge while at work.
FALSE
The ideal state that many people seek is an emotional zone somewhere
between boredom and anxiety, in the view of psychologist Mihaly
Csikzentmihalyi. Boredom, he says, may arise because skills and challenges
are mismatched: You are exercising your high level of skill in a job with a low
level of challenge, such as licking envelopes.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
14. Organizations can gain a competitive advantage by matching their
competition in terms of quality, responsiveness, and efficiency.
FALSE
The first challenge of a manager is to manage for competitive advantage.
This means an organization must stay ahead in four areas: (1) being
responsive to customers, (2) innovation, (3) quality, and (4) efficiency.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
15. The decline in revenue in the newspaper industry is due to a sharp drop in
the number of people reading American newspapers.
FALSE
American newspapers are more widely read than ever before, with 105.5
million unique visitors a month in 2011 versus 60 million four years earlier.
The problem: Many people aren't paying for news; they're getting it free
online.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
16. When managing for competitive advantage, the first "law" of business is
"take care of the shareholders."
FALSE
Responsiveness to the customer is part of managing for competitive
advantage. Here, the first law of business is: Take care of the customer.
Without customers, whatever they might be called, sooner or later there will
be no organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
17. Taking care of the customer applies equally well to nonprofit and for-profit
businesses.
TRUE
Nonprofit organizations are well advised to be responsive to their
"customers," too, whether they're called citizens, members, students,
patients, voters, rate-payers, or whatever, since they are the justification for
the organizations' existence.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
18. In business, innovation is defined as finding ways to deliver new or better
goods or services.
TRUE
Finding ways to deliver new or better goods or services is called innovation.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
19. Whereas a generation ago organizations rewarded employees for their
efficiency, today the emphasis is on length of service.
FALSE
A generation ago, organizations rewarded employees for their length of
service. Today, however, the emphasis is on efficiency: Companies strive to
produce goods or services as quickly as possible using as few employees
(and raw materials) as possible.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
20. Despite continued immigration, the proportion of racial or ethnic groups in
the United States is expected to be stable well into the next century.
FALSE
Today nearly one in six American workers is foreign-born, the highest
proportion since the 1920s. But greater changes are yet to come. By mid-
century, the mix of American racial or ethnic groups will change
considerably, with the United States becoming half (54%) racial or ethnic
minority.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
21. When he or she does not speak the local language, a manager should rely
on gestures and symbols since their consistency of meaning provides a form
of universal communication throughout the world.
FALSE
Gestures and symbols don't have the same meaning to everyone
throughout the world. For example, in Greece the hand-waving gesture
commonly used in America for goodbye is considered an insult.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
22. The Internet is a global network of independently operating but
interconnected computers, linking hundreds of thousands of smaller
networks around the world.
TRUE
The Internet is the global network of independently operating but
interconnected computers, linking hundreds of thousands of smaller
networks around the world.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
23. The buying and selling of goods or services over computer networks is
known as e-exchange.
FALSE
E-commerce, or electronic commerce, is the buying and selling of goods or
services over computer networks.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
24. One reason e-business is so important is that the Internet dramatically
lowers the cost of communication.
TRUE
Information technology has facilitated e-business, using the Internet to
facilitate every aspect of running a business. As one article puts it, "at
bottom, the Internet is a tool that dramatically lowers the cost of
communication. That means it can radically alter any industry or activity
that depends heavily on the flow of information."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
25. Text messages and documents transmitted over a computer network are
called cyber-messages.
FALSE
E-mail is the term for text messages and documents transmitted over a
computer network.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
26. Project management software allows managers to plan and schedule the
people, costs, and resources to complete a project on time.
TRUE
Project management software is a program for planning and scheduling the
people, costs, and resources to complete a project on time.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
27. A problem typically associated with interconnected databases on the
Internet is the potential to overwhelm employees with too much
information.
TRUE
The Internet, with its huge, interconnected databases made up of
computerized collections of interrelated files, can overwhelm us with
information, much of it useful, much of it not.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
28. One advantage of e-business is that organizations and teams are no longer
as bound by time zones and locations.
TRUE
With computers and telecommunications technology, organizations and
teams become "virtual"; they are no longer as bound by time zones and
locations.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
29. Viral staffing is the term used to describe working from home or remote
locations using a variety of information technologies.
FALSE
Telecommuting is working from home or remote locations using a variety of
information technologies.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
30. Meetings that are conducted via telecommuting use video and audio links
along with computers to let people in different locations see, hear, and talk
with one another.
FALSE
Meetings may be conducted via videoconferencing, using video and audio
links along with computers to let people in different locations see, hear, and
talk with one another.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
31. Collaborative computing involves using state-of-the-art computer software
and hardware to help people work better together.
TRUE
Collaborative computing, using state-of-the-art computer software and
hardware, will help people work better together.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
32. Integration management is the implementation of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
FALSE
Knowledge management is the implementing of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
33. In recent years, white-collar crime in the United States has become very
rare.
FALSE
Bernard Madoff is but one of a long list of famous business scoundrels of the
early 21st century. Not since sociologist Edwin Sutherland invented the term
white-collar crime in the 1930s have so many top-level executives been
hauled into court as during recent years.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
34. The Josephson Institute suggests a TEAM (Teach, Enforce, Advocate, Model)
approach for parents to encourage good financial habits in children.
FALSE
The Josephson Institute suggests that parents can take a TEAM (Teach,
Enforce, Advocate, Model) approach to help children learn the importance of
honesty.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
35. Unsustainable business practices have resulted from an often accepted but
untrue notion that natural resources are limitless.
TRUE
Our economic system has brought prosperity, but it has also led to
unsustainable business practices because it has assumed that natural
resources are limitless, which they are not.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
36. Having to attend too many meetings or feeling a lack of respect are typical
reasons that some people don't find being a manager fulfilling.
TRUE
Many people simply don't find being a manager fulfilling. They may
complain that they have to go to too many meetings, that they can't do
enough for their employees, that they are caught in the middle between
bosses and subordinates. They may feel, at a time when Dilbert cartoons
have created such an unflattering portrayal of managers, that they lack
respect.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
37. One's experience in management remains very insulated from the
company's culture.
FALSE
Productivity-improvement expert Odette Pollar points out that "one's
experience in management is greatly affected by the company's culture."
Culture, or style, is indeed an important matter, because it affects your
happiness within an organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
38. The "management process" is sometimes called the "four management
functions."
TRUE
The management process can also be called the four management
functions: planning, organizing, leading, and controlling.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
39. When Barrett, a college administrator, is determining which of several
degree programs his campus will offer, he is involved in the management
function of controlling.
FALSE
Planning is defined as setting goals and deciding how to achieve them. A
college is established for the purpose of educating students, and its present
managers, or administrators, must decide the best way to accomplish this.
For example, they must ask which of several possible degree programs
should be offered.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
40. Organizing is the arranging of tasks, people, and other resources to
accomplish work.
TRUE
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
41. When Carla revises the waitstaff schedule at her restaurant to have more
personnel available during the newly busy breakfast rush, she is engaged in
organizing.
TRUE
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
42. When Shannon reviews reports and determines that she has four
underperforming salespeople with whom she will need to talk, she is
performing the controlling managerial function.
TRUE
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
43. When a manager is motivating others to work hard to achieve the
organization's goals, she is engaged in the management function of
leading.
TRUE
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
44. Tucker recently attended a dinner for the new CEO. He came away feeling
very excited and anxious to do his part to help the company achieve its
goals. In this instance, the CEO was performing the management function
known as planning.
FALSE
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
45. According to Peter Drucker, "knowledge workers" have very little technical
skill.
FALSE
The workplace of the future may resemble a symphony orchestra, famed
management theorist Peter Drucker said. Employees, especially so-called
knowledge workers, those who have a great deal of technical skills, can be
compared to concert musicians. Their managers can be seen as conductors.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
46. The traditional organizational model is most often represented by a funnel
shape.
FALSE
The traditional organizational model is pyramid-like, where one leader sits at
the top, with layers of managers beneath.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
47. There are managers at three levels of an organization: top, middle, and first-
line.
TRUE
Managers of an organization may be classified into three levels: top, middle,
and first-line.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
48. First-line managers make long-term decisions about the overall direction of
the organization and establish the objectives, policies, and strategies for it.
FALSE
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
49. Mingjin is a branch manager in Albuquerque who reports to the CEO in
Denver and to whom three other managers at her facility report, so she
would be termed a middle manager.
TRUE
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them. In the for-profit world, the titles may be "division
head," "plant manager," and "branch sales manager."
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
50. A first-line manager directs the daily tasks of nonmanagerial personnel.
TRUE
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
51. A vice president of production is a general manager.
FALSE
If your title is vice president of production, director of finance, or
administrator for human resources, you are a functional manager. A
functional manager is responsible for just one organizational activity.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
52. A general manager typically oversees several departments within an
organization.
TRUE
A general manager may oversee several departments, such as production
and finance and human resources. A general manager is responsible for
several organizational activities.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
53. The main purpose of a nonprofit organization is to offer services to some
clients.
TRUE
Nonprofit organizations' main purpose is to offer services to some clients,
not to make a profit.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
54. According to Mintzberg's research, managers rely more on verbal than on
written communication because of the time it takes to accomplish the
latter.
TRUE
A manager relies more on verbal than on written communication. Writing
letters, memos, and reports takes time. Most managers in Mintzberg's
research tended to get and transmit information through telephone
conversations and meetings.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
55. Since the 1960s research conducted by Mintzberg, the typical general
manager has reduced her work week to the traditional 40 hours.
FALSE
According to Mintzberg's research, long hours at work are standard, with 50
hours being typical and up to 90 hours not unheard of. Since then, a 1999
survey by John P. Kotter of the Harvard Business School found that the
general managers he studied worked just under 60 hours per week.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
56. Most managers require lengthy, uninterrupted periods during the regular
workday to accomplish their work and make themselves unavailable to
subordinates to create them.
FALSE
The executive's work time has been characterized as "the interrupt-driven
day" and many managers, such as the late Mary Kay Ash, head of the Mary
Kay Cosmetics company, get up as early as 5 a.m. so that they will have a
quiet period in which to work undisturbed.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
57. Time and task management are major challenges for every manager.
TRUE
It is clear from Mintzberg's work that both time and task management are
major challenges for every manager.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
58. According to Mintzberg, the three broad types of managerial roles include
interpersonal, analytical, and critical.
FALSE
From his observations and other research, Mintzberg concluded that
managers play three broad types of roles or "organized sets of behavior":
interpersonal, informational, and decisional.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
59. Good executive functioning includes heavy multitasking and answering
every e-mail nearly instantly.
FALSE
Executive functioning includes the ability to focus your thoughts, control
your impulses, and avoid distractions. You can drive yourself crazy trying to
multitask and answer every e-mail message instantly. Or you can recognize
your brain's finite capacity for processing information.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
60. The monitor function is an example of the informational roles often played
by managers.
TRUE
In their three informational roles as monitor, disseminator, and
spokesperson, managers receive and communicate information with other
people inside and outside the organization.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
61. In interpersonal managerial roles, a manager acts as entrepreneur,
disturbance handler, or negotiator.
FALSE
In their interpersonal roles, managers interact with people inside and
outside their work units. The three interpersonal roles include figurehead,
leader, and liaison activities. In their decisional roles, managers use
information to make decisions to solve problems or take advantage of
opportunities. The four decision-making roles are entrepreneur, disturbance
handler, resource allocator, and negotiator.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
62. Entrepreneurship means taking risks to try to create a new enterprise.
TRUE
Entrepreneurship is the process of taking risks to try to create a new
enterprise.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
63. Two types of entrepreneurship include the extrapreneur and the
intrapreneur.
FALSE
There are two types of entrepreneurship. An entrepreneur is someone who
sees a new opportunity for a product or service and launches a business to
try to realize it. An intrapreneur is someone who works inside an existing
organization who sees an opportunity for a product or service and mobilizes
the organization's resources to try to realize it.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
64. Successful entrepreneurial companies have been called "gazelles" because
of a characteristic they possess, namely an acute sensitivity to danger in
the environment.
FALSE
Entrepreneurial companies have been called "gazelles" for the two
attributes that make them successful: speed and agility. "Gazelles have
mastered the art of the quick," says Alan Webber, founding editor of Fast
Company magazine. "They have internal approaches and fast decision-
making approaches that let them move with maximum agility in a fast-
changing business environment."
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
65. Entrepreneurs typically have a much higher need for achievement and a
stronger belief in personal control of destiny than do typical managers.
FALSE
Both entrepreneurs and managers have a high need for achievement. Also
characteristic of both is a belief in personal control of destiny.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
66. Opportunity entrepreneurs are those who start their own business out of a
burning desire rather than because they lost a job.
TRUE
So-called opportunity entrepreneurs, about 89%, are those who start their
own business out of a burning desire rather than because they lost a job.
Unlike necessity types, they tend to be more ambitious and to start firms
that can lead to high-growth businesses.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
67. Researcher Robert Katz determined that through education and experience
managers acquire technical, conceptual, and human skills.
TRUE
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills: technical, conceptual,
and human.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
68. Having required technical skills is most important among top managers at
the highest leadership levels.
FALSE
Having the requisite technical skills seems to be most important at the
lower levels of management; that is, it is critical among first-line managers.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
69. Human skills become less critical as one's career progresses, and are least
important for top managers.
FALSE
Human skills, which include the ability to motivate, to inspire trust, to
communicate with others, are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
Multiple Choice Questions
70. One way to think of ______ is "the art of getting things done through
people."
A. supervisi
on
B. motivati
on
C. manageme
nt
D. leadershi
p
E. strate
gy
Management, said one pioneer of management ideas, is "the art of getting
things done through people."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
71. The pursuit of organizational goals efficiently and effectively by integrating
the work of people through planning, organizing, leading, and controlling the
organization's resources is called
A. employme
nt.
B. career
planning.
C. competitive
advantage.
D. manageme
nt.
E. strategic
planning.
Management is defined as (1) the pursuit of organizational goals efficiently
and effectively by (2) integrating the work of people through (3) planning,
organizing, leading, and controlling the organization's resources.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
72. A group of people who work together to achieve some specific purpose
is/are called
A. manager
s.
B. a
collaboration
.
C. a
team.
D. an
organization.
E. a
community.
An organization is a group of people who work together to achieve some
specific purpose.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
73. Tracy, a manager at a busy warehouse, was slow to hire new employees,
preferring instead to encourage improvements from his current staff. He
carefully watched his other costs too, performing equipment maintenance
on a regular basis to improve its lifespan. Tracy would best be described as
a(n) _____ manager.
A. efficie
nt
B. ethic
al
C. innovati
ve
D. effectiv
e
E. micr
o
Efficiency is the means of attaining the organization's goals. To be efficient
means to use resources like people, money, and raw materials wisely and
cost effectively.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 3 Hard
Topic: Management: What It Is, What Its Benefits Are
74. To be ______ as a manager means to make the right decisions and
successfully carry them out to achieve goals.
A. producti
ve
B. ethic
al
C. efficie
nt
D. effectiv
e
E. innovati
ve
Effectiveness is the organization's ends, the goals. To be effective means to
achieve results, to make the right decisions, and to successfully carry them
out so they achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
75. The _________ effect states that a manager's influence on the organization
has implications far beyond the results that can be achieved by one person
acting alone.
A. proliferati
on
B. multipli
er
C. manageri
al
D. hal
o
E. additiv
e
In being a manager you have a multiplier effect: Your influence on the
organization is multiplied far beyond the results that can be achieved by just
one person acting alone.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
76. According to a Fortune article, the scarcest, most valuable resource in
business is not financial capital but
A. renewable
resources.
B. government
support.
C. highly innovative
technology.
D. a young
workforce.
E. skilled, effective
managers.
Exceptional managers are in high demand. "The scarcest, most valuable
resource in business is no longer financial capital," says a Fortune article.
"It's talent. If you doubt that, just watch how hard companies are battling for
the best people… Talent of every type is in short supply, but the greatest
shortage of all is skilled, effective managers."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
77. Which of the following is the most likely payoff of studying management as
a discipline?
A. You will understand how to brand your
organization.
B. You will understand how to relate to and interact with your supervisors
and co-workers.
C. You will understand how to manage your family and close friends more
effectively.
D. You will understand how to deal with the media in
a crisis.
E. You will understand how to advance your career
without guilt.
A few of the payoffs of studying management as a discipline include
understanding how to deal with organizations from the outside,
understanding how to relate to your supervisors and co-workers, and
understanding how to manage yourself in the workplace.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
78. Which of the following is not a reward for practicing management?
A. You can build a catalog of successful products or
services.
B. You and your employees can experience a sense of
accomplishment.
C. You can stretch your abilities and magnify your
range.
D. You can be rewarded with money and status for your
efforts.
E. You can become exempt from many of society's ethical
standards.
In addition to money and status, there are many rewards to being a
manager including experiencing a sense of accomplishment, stretching your
abilities and magnifying your range, and building a catalog of successful
products or services.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
79. Which of the following is one of the seven primary challenges facing
managers today?
A. Maintaining good records of what worked in
the past.
B. Dealing with a stubbornly static and immobile
environment.
C. Staying ahead of competitors through corporate
espionage.
D. Managing to achieve one's own happiness and life
goals.
E. Collaborating with
competitors.
Seven challenges face any manager: You need to manage for competitive
advantage. You need to manage for diversity in race, ethnicity, gender, and
so on. You need to manage for the effects of globalization and of information
technology. You need to manage to maintain ethical standards, and manage
for sustainability, and finally for the achievement for your own happiness
and life goals.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
80. Petra is a new manager for a household products company, after getting a
promotion from an administrative job that she found boring. But now she
frequently experiences ______, like when she had to explain the new product
her team is developing to the CEO and several board members. As
psychologist Csikzentmihalyi predicts, her ideal state would be an emotional
zone between that and boredom.
A. overloa
d
B. anxiet
y
C. immodes
ty
D. fea
r
E. pressur
e
The ideal state that many people seek is an emotional zone somewhere
between boredom and anxiety, in the view of psychologist Mihaly
Csikzentmihalyi. Boredom, he says, may arise because skills and challenges
are mismatched: You are exercising your high level of skill in a job with a low
level of challenge, such as licking envelopes. Anxiety arises when one has
low levels of skill but a high level of challenge, such as suddenly being
called upon to give a rousing speech to strangers.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
81. The ability of an organization to outperform others by producing goods or
services more effectively than its competitors is called its
A. competitive
advantage.
B. qualit
y.
C. efficienc
y.
D. innovatio
n.
E. effectivenes
s.
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thereby outperforming them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
82. Which of the following is not an area in which an organization must stay
ahead of its competitors to achieve competitive advantage?
A. Environmental
action
B. Being responsive to
customers
C. Innovati
on
D. Qualit
y
E. Efficienc
y
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thereby outperforming them.
This means an organization must stay ahead in four areas: (1) being
responsive to customers, (2) innovation, (3) quality, and (4) efficiency.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
83. Which of the following is the most likely reason for the decline in fortunes of
American newspapers, and their inability to exploit their competitive
advantage?
A. A poorer standard for news-
gathering.
B. Relying too heavily on advertising, rather than customer subscriptions,
for revenue.
C. Decline in newspaper readership over the last 70
years.
D. Preference of customers for getting news in a nonverbal
format.
E. An increase in salaries and material costs within the
industry.
How did newspapers lose their way? First, by giving away the product, and
second, by relying too much on advertising for revenue.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
84. In seeking competitive advantage, the first law of business is to
A. take care of your
shareholders.
B. take care of your
stakeholders.
C. take care of the
customer.
D. take care of the
environment.
E. take care of your
employees.
The first law of business is: Take care of the customer. Without customers,
whatever they're called, sooner or later there will be no organization. This is
known as responsiveness to customers, an important component of
competitive advantage.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
85. Finding ways to deliver new or better goods or services is called
A. advanceme
nt.
B. streamlinin
g.
C. innovatio
n.
D. efficienc
y.
E. quality
control.
Finding ways to deliver new or better goods or services is called innovation.
No organization, for-profit or nonprofit, can allow itself to become
complacent, especially when rivals are coming up with creative ideas.
"Innovate or die" is an important adage for any manager.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
86. Customers are likely to put up with poor-quality products only if your
organization is
A. underperforming in
innovation.
B. using computerized customer
service.
C. the only one of its
kind.
D. in a very competitive
industry.
E. lacking strong environmental
policies.
If your organization is the only one of its kind, customers may put up with
products or services that are less than stellar but only because they have no
choice. But if another organization comes along and offers a better-quality
product, you may find your company falling behind.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
87. By mid-century, the percentage of Hispanics (of any race) in the U.S.
population is expected to ______, and the percentage of non-Hispanic whites
is expected to ______.
A. stay the same;
increase
B. double;
decrease
C. decrease;
increase
D. double; increase
slightly
E. stay the same;
decrease
By mid-century, the mix of American racial or ethnic groups will change
considerably, with the United States becoming half (54%) racial or ethnic
minority. Non-Hispanic whites are projected to decrease from 66% of the
population in 2008 to 46% in 2050. African Americans will increase from
14% to 15%, Asians and Pacific Islanders from 5.1% to 9.2%, and Hispanics
from 15% to 30%.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
88. The concept of a "flat" world means
A. employees are learning to suppress negative emotion in the
workplace.
B. corporations are developing a preference for a new, flatter
organizational structure.
C. a recession now slows the economies of most nations
simultaneously.
D. globalization has leveled the playing field for emerging
economies.
E. businesspeople are now more conservative in their approach to
investment.
American firms have been going out into the world in a major way, even as
the world has been coming to us. This has led to what New York Times
columnist Thomas Friedman has called, in his book The World Is Flat, a
phenomenon in which globalization has leveled (made "flat") the
competitive playing fields between industrial and emerging-market
countries.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
89. Though many advantages have been linked to e-business, studies show that
employees are less productive when dealing with excessive ______ volume.
A. videoconferenci
ng
B. meetin
g
C. e-
mail
D. telecommuti
ng
E. collaborative
computing
Studies show that employees lose valuable time and productivity when
dealing with excessive and unimportant e-mail volume and increasing
amounts of cell-phone spam.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
90. Paul has been tasked with creating a new microsite on his engineering
company's intranet. The site will house company-approved design
procedures and efficiency strategies for all employees. Creating the design
microsite is a form of
A. strategy
management.
B. e-
management
.
C. project
management.
D. knowledge
management.
E. morale
management.
Knowledge management is the implementing of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
91. As a sales manager, you would have to decide how much leeway to give
your subordinates in giving gifts to prospective clients in foreign countries.
This is an example of the challenge of managing for
A. your own
happiness.
B. globalizatio
n.
C. ethical
standards.
D. sustainabili
ty.
E. diversit
y.
With the pressure to meet sales, production, and other targets, managers
can find themselves confronting ethical dilemmas. An example would be
how much leeway to give employees in giving gifts to prospective clients in
a foreign country to try to land a contract.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
92. Economic development that meets the needs of the present without
compromising the ability of future generations to meet their own needs is
known as
A. environmentalis
m.
B. globalizatio
n.
C. ethic
s.
D. the bottom
line.
E. sustainabili
ty.
Sustainability is defined as economic development that meets the needs of
the present without compromising the ability of future generations to meet
their own needs.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
93. The company's culture most directly affects
A. the number of competitors a
firm has.
B. the number of products a company
makes.
C. the amount charged for the firm's products or
services.
D. the manager's
happiness.
E. the education of the
workforce.
One's experience in management is greatly affected by the company's
culture. Culture, or style, is indeed an important matter, because it affects
your happiness within an organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
94. Which of the following is one of the four principal functions of management,
also known as the management process?
A. Organizin
g
B. Schedulin
g
C. Motivati
ng
D. Executin
g
E. Monitori
ng
Managers perform what is known as the management process, also called
the four management functions: planning, organizing, leading, and
controlling.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
95. Setting goals and deciding how to achieve them is called
A. controllin
g.
B. managin
g.
C. plannin
g.
D. organizin
g.
E. leadin
g.
Planning is defined as setting goals and deciding how to achieve them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
96. When a manager at a software company is determining whether to hire
more full-time programmers or possibly more temporary ones, he is
engaged in
A. plannin
g.
B. organizin
g.
C. managin
g.
D. leadin
g.
E. controllin
g.
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work. Organizing includes determining the tasks to be done,
by whom, and what the reporting hierarchy is to be.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
97. Because the various groups that help a manager reach company goals often
have different needs and wants, resolving conflicts is an essential part of
which management function?
A. Plannin
g
B. Clarifyin
g
C. Organizin
g
D. Controlli
ng
E. Leadin
g
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals. The various groups
involved often have different needs and wants, so an essential part of
leadership is resolving conflicts.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 2 Medium
Topic: What Managers Do: The Four Principal Functions
98. A general manager at a department store is giving an important
presentation to several departments to engage the whole staff in a new
customer retention effort beginning this month. This is an example of
A. plannin
g.
B. organizin
g.
C. leadin
g.
D. controllin
g.
E. marketin
g.
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
99. Monitoring performance and taking corrective action as needed is called
A. improvisin
g.
B. plannin
g.
C. organizin
g.
D. improvin
g.
E. controllin
g.
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
100. Aziz immediately halted production at his facility after seeing a report
indicating the last batch had a high level of product defects, and restarted
work only when the problem was discovered and fixed. Aziz is engaged in
which management function?
A. Repairin
g
B. Organizin
g
C. Monitori
ng
D. Controlli
ng
E. Executin
g
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
101. Management theorist Peter Drucker compared the workplace of the future to
a
A. pyrami
d.
B. symphony
orchestra.
C. flattened
oval.
D. chess
game.
E. warshi
p.
The workplace of the future may resemble a symphony orchestra, famed
management theorist Peter Drucker said. Employees, especially so-called
knowledge workers, can be compared to concert musicians. Their managers
can be seen as conductors. The conductor's role is not to play each
instrument but to lead them all through the most effective performance of a
particular work.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
102. Tonya is a structural engineer who works for a large international firm. She
designs the concrete and steel structures that support even the largest and
most complex buildings. Because of her high level of technical skills, Tonya
is best referred to as a
A. knowledge
worker.
B. blue-collar
worker.
C. self-managed
worker.
D. first-line
worker.
E. first-line
manager.
A knowledge worker is one who has a great deal of technical skill such as
Tonya has in this example.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
103. In the traditional management pyramid, managers are classified into ______
levels.
A. tw
o
B. thre
e
C. fou
r
D. fiv
e
E. si
x
Managers may be classified into three levels: top, middle, and first-line.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
104. A senior vice president is an example of what level of manager?
A. first-
line
B. to
p
C. leadershi
p
D. middl
e
E. mer
it
An organization's top managers tend to have titles such as "chief executive
officer (CEO)," "chief operating officer (COO)," "president," and "senior vice
president."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
105. Managers who are future oriented, dealing with uncertain, highly
competitive conditions, and who stay alert to long-run opportunities and
problems are most likely to be
A. first-line
managers.
B. functional
managers.
C. middle
managers.
D. general
managers.
E. top
managers.
Top managers make long-term decisions about the overall direction of the
organization. They need to pay a lot of attention to the environment outside
the organization, being alert for long-run opportunities and problems and
devising strategies for dealing with them. Thus, executives at this level must
be future oriented, dealing with uncertain, highly competitive conditions.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
106. Managers who implement the policies and plans determined at the highest
levels and coordinate the activities of lowest-level managers are called
A. executional
managers.
B. first-line
managers.
C. middle
managers.
D. functional
managers.
E. general
managers.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
107. Derrick is a clinic director running a downtown Chicago facility for a large
nonprofit health organization. He receives most of his strategic direction
from the organization and supervises several department managers in his
workplace. Derrick is a
A. first-line
manager.
B. middle
manager.
C. tactical
manager.
D. functional
manager.
E. coordination
manager.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them. One title in nonprofit organizations may be "clinic
director" for example.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
108. Managers who make short-term operating decisions and direct the daily
tasks of the nonmanagerial employees are called
A. first-line
managers.
B. middle
managers.
C. general
managers.
D. functional
managers.
E. initial
managers.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel, who are, of course, all those people who work directly at their
jobs but don't oversee the work of others.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
109. Angelina is a shift supervisor for a successful supermarket chain, directing
the work of as many as eight other cashiers. She is a(n)
A. directional
manager.
B. middle
manager.
C. first-line
manager.
D. general
manager.
E. area
manager.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel, who are, of course, all those people who work directly at their
jobs but don't oversee the work of others. Supervisor is the name often
given to first-line managers as a whole.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
110. A ______ manager is responsible for just one organizational activity.
A. speciali
st
B. first-
line
C. singul
ar
D. function
al
E. top-
level
A functional manager is responsible for just one organizational activity.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
111. The United Way and Nature Conservancy are examples of which type of
organization?
A. For-
profit
B. Nonpro
fit
C. Administrati
ve
D. Mutual-
benefit
E. Aid-
based
Nonprofit organizations' purpose is to offer services to some clients, not to
make a profit. Examples of such organizations are hospitals, colleges, and
social-welfare agencies (e.g., the Salvation Army, the Red Cross).
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
112. Which type of nonprofit organization offers services to all clients within its
jurisdiction?
A. Administrati
ve
B. Mutual-
benefit
C. Aid-
based
D. Authori
ty
E. Commonwe
al
One particular type of nonprofit organization is called the commonweal
organization. Unlike nonprofit service organizations, which offer services to
some clients, commonweal organizations offer services to all clients within
their jurisdictions. Examples are the military services, the U.S. Postal
Service, and your local fire and police departments.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
113. Abbie recently joined a professional organization for certified public
accountants, and was happy that her firm offered to pay the dues. This type
of group is an example of a(n) ______ organization.
A. for-
profit
B. nonpro
fit
C. administrati
ve
D. mutual-
benefit
E. aid-
based
Mutual-benefit organizations are voluntary collections of members such as
political parties, farm cooperatives, labor unions, trade associations, and
clubs whose purpose is to advance members' interests.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
114. The primary measure of success of a nonprofit organization is typically
A. the total
revenue.
B. ROI
.
C. the effectiveness of the services
delivered.
D. the market
share.
E. the number of services
available.
In a nonprofit organization, although income and expenditures are very
important concerns, the measure of success is usually the effectiveness of
the services delivered.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
115. Which of the following statements about a manager's worklife is not among
the findings of management scholar Henry Mintzberg?
A. Managers work long
hours.
B. Most managerial tasks require lengthy periods of time for
completion.
C. Managers rely more on verbal than on written
communication.
D. Managers work at an intense
pace.
E. Managers' work is characterized by
variety.
Managers tend to work long hours at an intense pace; their work is
characterized by fragmentation, brevity, and variety; and they rely more on
verbal than on written communication. Only about a tenth of the managerial
activities observed by Mintzberg took more than an hour; about half were
completed in under 9 minutes. Phone calls averaged 6 minutes, informal
meetings 10 minutes, and desk-work sessions 15 minutes.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
116. According to Mintzberg's work, which of the following is one of the three
broad types of roles that managers play?
A. Analytic
al
B. Profession
al
C. Interdepende
nt
D. Disciplina
ry
E. Interperson
al
From his observations and other research, Mintzberg concluded that
managers play three broad types of roles or "organized sets of behavior":
interpersonal, informational, and decisional.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
117. Which of the following is an example of a decisional role that managers
play?
A. Figurehea
d
B. Spokesperso
n
C. Resource
allocator
D. Liaiso
n
E. Monit
or
In their decisional roles, managers use information to make decisions to
solve problems or take advantage of opportunities. The four decision-
making roles are entrepreneur, disturbance handler, resource allocator, and
negotiator.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
118. In a ______ role, you should be constantly alert for useful information,
whether gathered from newspaper stories about the competition or
discovered in conversations with subordinates.
A. figurehe
ad
B. negotiat
or
C. spokespers
on
D. monit
or
E. disseminat
or
As a monitor, you should be constantly alert for useful information, whether
gathered from newspaper stories about the competition or gathered from
snippets of conversation with subordinates you meet in the hallway.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
119. Matthew, the president of a diesel engine research firm, was welcoming
potential partners from a large automobile corporation in Europe. Before
handing them off to his technical counterpart, he gave them an extensive
tour of his laboratory and field-testing operations as part of which
managerial role?
A. Figurehea
d
B. Analytic
al
C. Monit
or
D. Visionar
y
E. Disseminat
or
In your figurehead role, you may show visitors around your company. In
general, you perform symbolic tasks that represent your organization.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
120. After a large chemical fire, Eric took responsibility publicly for the failure of
his employees to follow workplace safety standards, and indicated that
several of them had been placed on leave. Here, Eric was acting in a ______
role.
A. leadershi
p
B. negotiat
or
C. liaiso
n
D. authori
ty
E. entreprene
ur
In a role of leader, you are responsible for the actions of your subordinates,
since their successes and failures reflect on you. Your leadership is
expressed in your decisions about training, motivating, and disciplining
people.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
121. Two different project teams recently submitted proposals for very promising
ideas, but the budget will not allow both to go forward this year. Amanda is
making the tough decisions about which should be the focus this time, as a
part of her ______ role.
A. leadershi
p
B. disseminat
or
C. resource
allocator
D. negotiat
or
E. entreprene
ur
Because you'll never have enough time, money, and so on, you'll need to be
a resource allocator as a manager, setting priorities about use of resources.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
122. Colin takes notes at executive council meetings and prepares summaries to
present to middle managers and supervisors at a monthly meeting. This
task is part of a(n) _______ role.
A. disseminat
or
B. entreprene
ur
C. monit
or
D. leadershi
p
E. visionar
y
Workers complain they never know what's going on if a supervisor fails in
the role of disseminator. Managers need to constantly disseminate
important information to employees, as via e-mail and meetings.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
123. Jocelyn's staff is upset because they normally receive their paychecks or
direct deposits on Fridays and occasionally on Thursdays if there is a holiday.
Tomorrow is Friday, July 4, and the bank did not process payments today as
expected, so Jocelyn is on the phone trying to get the situation resolved as
part of which managerial role?
A. Disturbance
handler
B. Monit
or
C. Spokesperso
n
D. Negotiat
or
E. Resource
allocator
Unforeseen problems, from product defects to international currency crises,
require a manager to be a disturbance handler, fixing problems.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
124. Chemka is speaking at a press conference to discuss the company's plans to
close three underperforming branches after several years and several
rounds of changes in trying to keep them open. Chemka is performing the
_______ role.
A. disseminat
or
B. monit
or
C. liaiso
n
D. spokespers
on
E. figurehe
ad
You are expected, of course, to be a diplomat, to put the best face on the
activities of your work unit or organization to people outside it. This is the
informational role of spokesperson.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
125. To inspire innovation, Jinyuan encourages his employees to devote one
afternoon a month to work on pet projects, just to spend time in the lab
experimenting and thinking freely. He is acting in the ______ role.
A. entreprene
ur
B. disturbance
handler
C. resource
allocator
D. negotiat
or
E. liaiso
n
A good manager is expected to be an entrepreneur, to initiate and
encourage change and innovation.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
126. Armed with a stack of market research, Jalen, a marketing department
manager, is in the research and development manager's office attempting
to convince him to eliminate two features his engineers plan to add to a
product, and replace them with two others based on customer preference.
Jalen is operating in the ______ role.
A. entreprene
ur
B. resource
allocator
C. disturbance
handler
D. negotiat
or
E. liaiso
n
To be a manager is to be a continual negotiator, working with others inside
and outside the organization to accomplish your goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
127. Jeremy Stoppelman and Russel Simmons, founders of Yelp, a website with
reviews of businesses, created a new type of business that did not exist
before their efforts. They would best be described as
A. business
developers.
B. inventor
s.
C. sole
proprietors.
D. entrepreneu
rs.
E. intrapreneu
rs.
Most small businesses originate with people like Stoppelman and Simmons.
They are the entrepreneurs, the people with the idea, the risk takers.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
128. _________ means taking risks to try to create a new enterprise.
A. Entrepreneurs
hip
B. Incorporati
on
C. Franchisin
g
D. Joint
venturing
E. Acquisitio
n
Entrepreneurship is the process of taking risks to try to create a new
enterprise.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
129. The defining difference between an entrepreneur and an intrapreneur is that
the latter
A. is the person responsible for funding the former with a startup
investment.
B. is working on multiple opportunities
simultaneously.
C. works within an existing organization, using its resources to exploit an
opportunity.
D. usually runs a small
business.
E. works in a team setting to develop an idea to
fruition.
An entrepreneur is someone who sees a new opportunity for a product or
service and launches a business to try to realize it. An intrapreneur is
someone who works inside an existing organization who sees an opportunity
for a product or service and mobilizes the organization's resources to try to
realize it.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
130. The development of Google News by Google employees experimenting with
ways to facilitate browsing news from several sources is an example of
A. business
intelligence.
B. intrapreneursh
ip.
C. business
invention.
D. corporate
design.
E. entrepreneursh
ip.
An example of an intrapreneur is Marissa Mayer of Google developing a
researcher's personal news reading program into Google News.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
131. The belief that you control your own destiny is called
A. internal locus of
control.
B. entrepreneursh
ip.
C. intrapreneursh
ip.
D. power
centering.
E. manifest
destiny.
Internal locus of control is the belief that you control your own destiny, that
external forces will have little influence.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
132. Research has shown that all of the following are characteristics of an
entrepreneur except which?
A. self-
confident
B. highly
experienced
C. belief in personal control of
destiny
D. high energy level and action
orientation
E. high tolerance for
ambiguity
An entrepreneur has a high need for achievement, a belief in personal
control of destiny, a high energy level and action orientation, a high
tolerance for ambiguity, and self-confidence and tolerance for risk.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
133. Which of the following is more characteristic of an entrepreneur than a
manager?
A. High need for
achievement
B. External locus of
control
C. Belief in personal control of
destiny
D. Motivated by organizational
rewards
E. Tolerance for
risk
More characteristic of entrepreneurs than managers are self-confidence and
tolerance for risk. Precisely because they are willing to take risks in the
pursuit of new opportunities and even risk personal financial failure,
entrepreneurs need the confidence to act decisively.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
134. After her divorce, Jillian had to go back to work. While she interviewed to
return to her previous accounting profession, she began a custom wedding
invitation business. Jillian would best be described as a(n)
A. motivated
entrepreneur.
B. necessity
entrepreneur.
C. opportunity
entrepreneur.
D. performance
entrepreneur.
E. chance
entrepreneur.
So-called necessity entrepreneurs are people such as laid-off corporate
workers, discharged military people, immigrants, and divorced homemakers
who suddenly must earn a living and are simply trying to replace lost
income. These make up about 11% of entrepreneurs.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 3 Hard
Topic: The Entrepreneurial Spirit
135. According to researcher Robert Katz, which of the following is one of three
principal skills acquired by experienced managers?
A. Intuiti
ve
B. Evaluati
ve
C. Huma
n
D. Comprehensi
ve
E. Coordinati
on
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills: technical, conceptual,
and human.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
136. ______ skills consist of the job-specific knowledge needed to perform well in
a specialized field.
A. Technic
al
B. Actio
n
C. Conceptu
al
D. Physic
al
E. Huma
n
Technical skills consist of the job-specific knowledge needed to perform well
in a specialized field.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
137. Marie recently became a managing partner at her law firm. Though her job
has changed, she still needs to have the necessary ______ skills to advise
and review the contracts of the real estate attorneys that she manages.
A. performan
ce
B. technic
al
C. conceptu
al
D. huma
n
E. physic
al
Technical skills consist of the job-specific knowledge needed to perform well
in a specialized field.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
138. The ability to think analytically is associated with ______ skills.
A. comprehensi
on
B. conceptu
al
C. huma
n
D. abstra
ct
E. intuiti
ve
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
139. Despite the appeal of the opportunity, Samantha decided to delay taking
her product to foreign markets because she felt that her current personnel
did not have enough international experience. She was exhibiting ______
skills.
A. comparati
ve
B. huma
n
C. intangib
le
D. conceptu
al
E. intuiti
ve
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
140. Conceptual skills are particularly important for ______ managers.
A. first-
line
B. function
al
C. to
p
D. middl
e
E. gener
al
Conceptual skills are particularly important for top managers, who must deal
with problems that are ambiguous but that could have far-reaching
consequences.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
141. ______ skills consist of the ability to work well in cooperation with other
people to get things done.
A. Suppo
rt
B. Conceptu
al
C. Person
al
D. Intuiti
ve
E. Huma
n
Human skills consist of the ability to work well in cooperation with other
people to get things done.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
142. Tyler has coffee with one of his direct reports almost daily. He does this to
inquire in an informal way about progress on the job, and to provide
coaching and support, as well as appropriate congratulations for special
efforts. Tyler is exhibiting which type of managerial skill?
A. Cohesio
n
B. Conceptu
al
C. Intuiti
ve
D. Engageme
nt
E. Huma
n
Human skills consist of the ability to work well in cooperation with other
people to get things done. They include the ability to motivate, to inspire
trust, and to communicate with others.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
143. Human skills are important for ________ managers.
A. to
p
B. function
al
C. first-
line
D. middl
e
E. all levels
of
Human skills, including the ability to motivate, to inspire trust, and to
communicate with others, are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
144. Which of the following is not a chief skill companies seek in top managers
today?
A. The ability to motivate and engage
others.
B. The ability to
communicate.
C. Work experience outside the United
States.
D. High energy levels to meet the demands of global travel and a
24/7 world.
E. The ability to give a wide range of orders
authoritatively.
Instead of someone who gives orders, companies seek top managers with
these chief skills: the ability to motivate and engage others, the ability to
communicate, work experience outside the United States, and high energy
levels to meet the demands of global travel and a 24/7 world.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
Essay Questions
145. Studying management can be helpful even before you become a manager.
List at least three of the rewards of studying management.
(1) You will understand how to deal with organizations from the outside. It
helps to understand how organizations work and how the people in them
make decisions. (2) You will understand how to relate to your supervisors.
Since most of us work in organizations and most of us have bosses, studying
management will enable you to understand the pressures managers deal
with and how they will best respond to you. (3) You will understand how to
interact with co-workers. Studying management can give you the
understanding of teams and teamwork, cultural differences, conflict and
stress, and negotiation and communication skills that will help you get along
with fellow employees. (4) You will understand how to manage yourself in
the workplace. Management courses give you the opportunity to realize
insights about yourself—your personality, emotions, values, perceptions,
needs, and goals. We help you build your skills in areas such as self-
management, listening, handling change, managing stress, avoiding
groupthink, and coping with organizational politics.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
146. What is competitive advantage? Explain the importance of each of the four
areas in which an organization must stay ahead of its competitors.
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thus outperforming them.
This means an organization must stay ahead in four areas: customer
responsiveness, innovation, quality, and efficiency.
Being responsive to customers. The first law of business is: Take care of the
customer. Without customers—buyers, clients, consumers, shoppers, users,
patrons, guests, investors, or whatever they're called—sooner or later there
will be no organization.
Innovation is finding ways to deliver new or better goods or services.
Quality. If your organization is the only one of its kind, customers may put
up with products or services that are less than stellar. However, if you are
not a unique organization, which is more likely, customers will begin to buy
from the company with better quality for the same price.
Efficiency. In today's organizations, the emphasis is on efficiency: Companies
strive to produce goods or services as quickly as possible using as few
employees (and raw materials) as possible.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
147. One of the challenges for managers is managing personal happiness and life
goals. Explain why this is a challenge for managers. Discuss how you think
these ideas apply to you in the future.
Every person must consider whether his job (managerial or otherwise) helps
him or her reach his or her own happiness and goals. Many managers find
the job of management to be unfulfilling—they often feel they have to give
up too much of their personal lives because of the long hours or travel, or
they don't enjoy the constant activity that management entails. Also, many
managers feel caught in the middle between upper levels of management
and their employees. The student should offer an example of how this may
or may not affect her in the future.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
148. Identify and describe the four managerial functions. Give a specific example
of each.
Planning is setting goals and deciding how to achieve them. Organizing is
arranging tasks, people, and other resources to accomplish the work.
Leading is motivating, directing, and otherwise influencing people to work
hard to achieve the goals. Controlling is monitoring performance, comparing
it to goals, and taking corrective action as needed. The student should give
an example of each.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
149. List the three levels of management in the traditional pyramid. Give an
example of a task that a manager at each level might perform.
Managers may be classified into three levels: top, middle, and first-line.
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it. They
need to pay a lot of attention to the environment outside the organization,
being alert for long-run opportunities and problems and devising strategies
for dealing with them. Thus, executives at this level must be future oriented,
dealing with uncertain, highly competitive conditions.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
150. List Mintzberg's findings about the nature of managerial work.
A manager relies more on verbal than on written communication.
A manager works long hours at an intense pace.
A manager's work is characterized by fragmentation, brevity, and variety.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
151. List the characteristics that most entrepreneurs have.
The characteristics that most entrepreneurs have include: high need for
achievement, belief in personal control of destiny, high energy level and
action orientation, high tolerance for ambiguity, and self-confidence and
tolerance for risk.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
152. Define the three types of principal skills that managers need according to
Robert Katz. At which level of management is each skill most important?
Technical skills consist of job-specific knowledge needed to perform well in a
specialized field. Having the requisite technical skills seems to be most
important at the lower levels of management—that is, among first-line
managers.
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
Conceptual skills are particularly important for top managers, who must deal
with problems that are ambiguous but that could have far-reaching
consequences.
Human skills are the ability to work well with others to get things done.
These skills—the ability to motivate, to inspire trust, to communicate with
others—are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
Kinicki 4e Test Bank: Revised Questions Key
Chapter 1
5. Automated telephone systems are often very effective, but are rarely efficient.
Answer: False Page: 5 LO: 1 Difficulty: Moderate AACSB: 4 BT:
Comprehension
Rationale: Automated telephone systems are often efficient; the companies
no longer need as many telephone receptionists. They may be ineffective in
satisfying customers.
7. Being a manager usually leads to a higher salary.
Answer: True Page: 6 LO: 1 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: The financial payoff for being a manager can be as much as
$233,500 if you are a small business chief executive, far more than the
average American worker.
9. Studying management really does not help you understand how to interact with co-
workers.
Answer: False Page: 7 LO: 1 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: One of the payoffs of studying management as a discipline
includes understanding how to interact with co-workers.
12. While managers sometimes need to manage for ethical standards, sometimes achieving
competitive advantage should dominate managers' decision-making.
Answer: False Page: 8 LO: 2 Difficulty: Moderate AACSB: 2 BT:
Comprehension
Rationale: Managers face six challenges that need to be balanced including
both ethical standards and competitive advantage.
35. In the United States, white-collar crime is significantly on the decline.
Answer: False Page: 12 LO: 2 Difficulty: Moderate AACSB: 2 BT:
Comprehension
Rationale: Not since sociologist Edwin Sutherland invented the term “white-
collar crime” in the 1930s were so many top-level executives being hauled
into court as during 2003-2004.
39. When a manager is motivating others to work hard to achieve the organization’s
goals, she is engaged in the management function of leading.
Answer: True Page: 13 LO: 3 Difficulty: Easy AACSB: 3 BT:
Knowledge
52. The main purpose of a nonprofit organization is to make a profit.
Answer: False Page: 18 LO: 4 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: The purpose of nonprofit organizations is to offer services to some
clients, not to make a profit.
65. Art Fry, the3M employee who invented Post-it Notes is an example of an
intrapreneur.
Answer: True Page: 25 LO: 6 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: One of the most famous instances of intrapreneurship occurred at
3M Corp, when 3M employee Art Fry conceived of Post-it Notes.
76. According to a recent Fortune magazine article, The scarcest, most valuable
resource in business is
A) a highly stable technology.
B) a young workforce.
C) skilled effective managers.
D) financial capital.
E) government support.
Answer: C Page: 6 LO: 1 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: “The scarcest, most valuable resource in business is no longer
financial capital,” says a recent Fortune article. “It’s talent. If you doubt that,
just watch how hard companies are battling for the best people…Talent of
every type is in short supply, but the greatest shortage of all is skilled,
effective managers.
79. Which of the following is a challenge facing managers?
A staying ahead of competitors through replication
F) managing to achieve the manager’s own happiness and life goals
G) remembering what worked in the past
H) dealing with accelerated decision making, conflict, and stress
I) collaborating with competitors
Answer: B Page: 8 LO: 2 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Six challenges face any manager: You need to manage for
competitive advantage. You need to manage for diversity in race, ethnicity,
gender, and so on, because the future won’t resemble the past. You need to
manage for the effects of globalization and of information technology. You
need to manage to maintain ethical standards and for the achievement for your
own happiness and life goals.
83. Finding ways to deliver goods or services as quickly as possible using as few
resources as possible is called
A innovation.
J) efficiency.
K) effectiveness.
L) organizing.
M) quality improvement.
Answer: B Page: 10 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
87. The company’s culture most directly affects
A a manager’s happiness.
N) the number of competitors a firm has.
O) the number of products a company makes.
P) the amount charged for the firm’s products or services.
Q) the education of the workforce.
Answer: A Page: 12 LO: 2 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: One’s experience in management is greatly affected by the
company’s culture. Culture, or style, is indeed an important matter, because it
affects your happiness within an organization.
102. Jay is a software engineer who works for Microsoft. He develops the software
code that fixes bugs found in Microsoft products. Because of his great deal of
technical skills, Jay is best referred to as a
A knowledge worker.
R) blue-collar worker.
S) self-managed worker.
T) first-line worker.
U) first line manager.
Answer: A Page: 15 LO: 4 Difficulty: Moderate AACSB: 3 BT:
Application
Rationale: A knowledge worker is one who has a great deal of technical skill
such as Jay has in this example.
103. Managers who are responsible for the people who directly make a product rather
than managing others are called
A top managers.
V) middle managers.
W) first-line managers.
X) general managers.
Y) functional managers.
113. Which of the following statements about a manager’s life is true according to Henry
Mintzberg?
A Managers work long hours.
Z) Managers work at an intense pace.
AA) Managers’ work is characterized by fragmentation.
AB) Managers rely more on verbal than on written communication.
AC) All of the above statements are correct.
Answer: E Page: 19-20 LO: 5 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: Managers tend to work long hours at an intense pace; their work is
characterized by fragmentation, brevity, and variety; and they rely more on
verbal than on written communication.
119. Betty, a manager, is training new employees of the firm who will be working for her.
Betty is performing the __________ role.
AD) leadership
AE) figurehead
AF) liaison
AG) technical
AH) entrepreneur
Answer: A Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT:
Application
Rationale: Leadership is expressed in Betty’s decisions about training.
125. A manager is using information to understand the cause of a problem and determine the
best corrective action. This is an example of a(n):
A informational role.
AI) interpersonal role.
AJ) decisional role.
AK) analytical role.
AL) visionary role.
Answer: C Page: 21 LO: 5 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Decisional roles require managers to use information to take
decisions to solve problems or take advantage of opportunities.
130. __________ means taking risks to create a new enterprise.
A Entrepreneurship
AM) Sole proprietorship
AN) Partnership creation
AO) Joint venturing
AP) Acquisition
Answer: A Page: 24 LO: 6 Difficulty: Easy AACSB: 3 BT:
Knowledge
134. According to Katz, which of the following principal skills is one that managers
need?
A intuition
AQ) evaluative
AR) human
AS) comprehensive
AT) coordination
Answer: C Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Robert Katz found that through education and experience
managers acquire three principle skills—technical, conceptual, and human.
136. Jo, a managing partner of an accounting firm, understands tax law. This means
she has a ______________ skill.
A technical
AU) conceptual
AV) human
AW) physical
AX) intuitive
Answer: A Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT:
Application
Rationale: In this case, knowledge of tax law is a job-specific or technical
skill.
151. Define the three types of principal skills that managers need according to Robert Katz.
Page: 27-28 LO: 7 Difficulty: Easy AACSB: 3 BT:
Knowledge
Answer:
Technical skills consist of job-specific knowledge needed to perform well in a
specialized field. Conceptual skills consist of the ability to think analytically,
to visualize an organization as a whole and understand how the parts work
together. Human skills are the ability to work well with others to get things
done.
Chapter 2
5. The “historical perspective” includes systems, contingency and quality management
viewpoints.
Answer: False Page: 41 LO: 1 Difficulty: Easy AACSB: 3 BT:
Knowledge
20. Bureaucracy, as conceptualized by Weber, was the ideal way to structure an organization..
Answer: True Page: 45 LO: 2 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Weber believed that bureaucracy was an ideal form of
organization.
46. Quality assurance focuses on the performance of workers, urging employees to strive for
“zero defects.”
Answer: True Page: 52, 58 LO: 7 Difficulty: Easy AACSB: 3 BT:
Knowledge
49. TQM is initiated by lower level managers and affects top management last.
Answer: False Page: 59 LO: 7 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Total quality management (TQM) is a comprehensive approach—
led by top management and supported throughout the organization—dedicated
to continuous quality improvement, training, and customer satisfaction.
61. __________ was concerned with managing the total organization and was studied by
Fayol and Weber.
A Administrative management
AY) Scientific management
AZ) Contemporary management
BA) Custom management
BB) Management science
Answer: A Page: 43 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
65. Frederick W. Taylor is important to management history because he
A pioneered motion studies.
BC) developed therbligs.
BD) identified the major functions of management.
BE) developed ideas that would later lead to the field of industrial
psychology.
BF) anticipated the concept of “self-managed teams.”
Answer: A Page: 44 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
74. Which of the following was a positive feature of bureaucracy, according to Max Weber?
A managers and workers working side-by-side
BG) impersonality
BH) loosely-defined hierarchy of authority
BI) hiring and promotion based on social status
BJ) informal rules and procedures
Answer: B Page: 45 LO: 2 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Weber felt that a better-performing organization should have five
positive bureaucratic features including impersonality.
77. Which of the following is one of the phases in the development of the behavioral
viewpoint?
A human resource management
BK) human relations
BL) operations management
BM) administrative theory
BN) operations research
Answer: B Page: 46 LO: 3 Difficulty: Easy AACSB: 3 BT:
Knowledge
80. Among the recommendations of Mary Parker Follett was
A integration should occur in organizations when conflicts arose.
BO) managers and workers should work competitively.
BP) managers should be order-givers, and employees should be order-
takers.
BQ) motion studies should be made of every job.
BR) supervisors should control the work process completely.
Answer: A Page: 47 LO: 3 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: One of Mary Parker Follet’s important contributions to
management theory was that conflicts should be resolved by having managers
and workers talk over differences and find solutions that would satisfy both
parties—a process she called integration.
83. When Carlos noticed that he was hungry, he stopped working, got up, fixed himself a
sandwich, and ate it in the company of his wife, who happened to be in the kitchen at
the time. According to Maslow, the motivation for Carlos’s behavior arose from
which one of the following needs?
A physiological
BS) psychological
BT) security
BU) social
BV) self-fulfillment
Answer: A Page: 48 LO: 3 Difficulty: Hard AACSB: 3 BT:
Application
Rationale: Maslow proposed the hierarchy of human needs: physiological,
safety, love, esteem, and self-actualization. The only one of these listed as a
choice in the question is physiological, or the need for food, shelter, etc.
90. Operations research techniques have evolved into
A scientific management.
BW) behavioral science.
BX) quantitative methods.
BY) TQM.
BZ) administrative management.
Answer: C Page: 50 LO: 4 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: OR techniques were fairly specific applications of quantitative
methods. Over time, the application of those methods to management
problems was broadened.
95. The ________ viewpoint emphasizes that a manager's actions should vary according to
the situation.
A contingency
CA) quality management
CB) operations management
CC) systems
CD) open loop
Answer: A Page: 52 LO: 5 Difficulty: Easy AACSB: 3 BT:
Knowledge
99. A(n) ______________ continually interacts with its environment.
A closed system
CE) open system
CF) neutral system
CG) porous system
CH) subsystem
Answer: B Page: 54 LO: 5 Difficulty: Easy AACSB: 3 BT:
Knowledge
100. A(n) ______________ has little interaction with its environment.
A closed system
CI) open system
CJ) neutral system
CK) porous system
CL) subsystem
Answer: A Page: 54 LO: 5 Difficulty: Easy AACSB: 3 BT:
Knowledge
102. The plant manager who oversees the manufacture of Cheerios cereal is part of the
__________ of the manufacturing system.
A inputs
CM) transformation processes
CN) outputs
CO) feedback
CP) organizational processes
Answer: B Page: 53 LO: 5 Difficulty: Moderate AACSB: 3 BT:
Application
Rationale: Transformation processes are the organization’s capabilities in
management (the plant manager) and technology that are applied to converting
inputs into outputs. The main activity of the organization is to transform
inputs into outputs.
120. __________ is the economic or productive potential of employee knowledge,
experience, and actions.
A Human capital
CQ) Social capital
CR) Financial capital
CS) Economic capital
CT) Knowledge capital
Answer: APage: 61 LO: 8 Difficulty: Easy AACSB: 3 BT:
Knowledge
126. Explain the ideas emphasized by the behavioral viewpoint. List the three phases of
development of the behavioral viewpoint and discuss the major contributions of the
pioneers in the first two phases.
Page: 46-49 LO: 3 Difficulty: Hard AACSB: 3 BT:
Comprehension
Answer:
The behavioral viewpoint emphasized the importance of understanding human
behavior and of motivating employees toward achievement. The three phases
include the early behaviorists, the human relations movement, and behavioral
science.
The three people who pioneered behavioral theory were Hugo Munsterberg,
Mary Parker Follett, and Elton Mayo. Hugo Munsterberg was the first to
apply psychology to industry and is called “the father of industrial
psychology.” Mary Parker Follet believed that organizations should become
more democratic, with managers and employees working cooperatives. She
anticipated some of today’s concepts of “self-managed teams,” “worker
empowerment,” and “interdepartmental teams.” Elton Mayo conducted the
Hawthorne studies, which demonstrated the Hawthorne effect—that
employees worked harder if they received added attention, if they thought that
managers cared about their welfare and that supervisors paid special attention
to them.
The two theorists who contributed most to the human relations movement—
which proposed that better human relations could increase worker productivity
—were Abraham Maslow and Douglas McGregor. Abraham Maslow
developed the Hierarchy of Needs in his research to study motivation.
Douglas McGregor developed Theory X versus Theory Y to explain managers’
attitudes toward employees.
127. Explain the emphasis of the quantitative viewpoint. Describe the two major approaches
to this viewpoint.
Page: 50-51 LO: 4 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Answer:
The quantitative viewpoint emphasizes that mathematically-based techniques
can help managers be more effective. The two approaches of quantitative
management are management science and operations management.
Management science focuses on using mathematics to aid in problem solving
and decision making. Operations management focuses on managing the
production and delivery of an organization’s products or services more
effectively.
128. Describe the systems viewpoint and explain how a manager would use this viewpoint.
Page: 53 LO: 5 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Answer:
The systems viewpoint sees organizations as a system, either open or closed,
with inputs, outputs, transformation processes, and feedback. A manager
encountering a problem would use the systems approach by analyzing the
input into the problem situation, the process going on in the problem situation,
the outputs of the process, and examine feedback about the effectiveness of the
system.
131. What is a learning organization? What competitive advantage do learning organizations
hold?
Page: 60 LO: 8 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Answer:
A learning organization is one that actively creates, acquires, and transfers
knowledge within itself and is able to modify its behavior to reflect new
knowledge. Learning organizations can adapt more quickly to changing
conditions in the environment, and bring the knowledge and experience of a
wide range of employees to bear on new problems.
Chapter 3
3. A stakeholder is anyone who has stock in a particular firm.
Answer: False Page: 73 LO: 1 Difficulty: Easy AACSB: 3 BT:
Knowledge
5. All firms have a Board of Directors.
Answer: False Page: 74 LO: 1 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Not all firms have a board of directors. A lawyer, for instance,
may operate as a sole proprietor, making all her own decisions.
7. In an organization’s environment, internal stakeholders include the owners of an
organization.
Answer: True Page: 74 LO: 1 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Stakeholders are the people whose interests are affected by an
organization’s activities. Internal stakeholders include employees, owners,
and the Board of Directors.
11. Customers are the focus of “for-profit” organizations only.
Answer: False Page: 75 LO: 2 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Customers are those who pay to use an organization’s goods or
services. Customers may be the focus not only of for-profit organizations but
also nonprofit ones.
12. Competitors are people or organizations that compete for customers or resources.
Answer: True Page: 75 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
13. A supplier is a person or an organization that provides supplies to consumers.
Answer: False Page: 75 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
17. Government regulators are regulatory agencies that establish ground rules under
which organizations may operate.
Answer: True Page: 77-78 LO: 2 Difficulty: Easy
AACSB: 3 BT: Knowledge
18. External stakeholders include the government.
Answer: True Page: 73 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
19. To a commercial airline, the Federal Aviation Agency is an example of a stakeholder.
Answer: True Page: 78 LO: 2 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: The FAA is a stakeholder in an airline's external environment,
more particularly its task environment.
30. A situation in which you have to decide whether to pursue a course of action that may
benefit you or your organization but that is unethical or even illegal is called
social performance.
Answer: False Page: 81 LO: 3 Difficulty: Easy AACSB: 2 BT:
Knowledge
47. If ethical responsibility is about being a good individual citizen, social responsibility
is about influencing firms to be good organizational citizens.
Answer: True Page: 86 LO: 4 Difficulty: Moderate AACSB: 2 BT:
Comprehension
Rationale: Social responsibility is a manager’s duty to take actions that will
benefit the interests of society as well as of the organization.
53. According to recent research, 80% of people indicated that they buy a firm’s goods or
services partly on their perception of its ethics.
Answer: True Page: 90 LO: 4 Difficulty: Moderate AACSB: 2 BT:
Comprehension
Rationale: The announcement of a company’s conviction for illegal activity
has been shown to diminish sales growth for several years. One survey found
that 80% of people said they decide to buy a firm’s goods or services partly on
their perception of its ethics.
56. Personality, internal dimensions, external dimensions, and organizational dimensions
are the four layers of diversity on Rowe's “diversity wheel.”
Answer: True Page: 91-92 LO: 5 Difficulty: Easy
AACSB: 5 BT: Knowledge
60. Traditionally, the further up the pay scale and the higher the education level, the wider
the earnings gap between men and women.
Answer: True Page: 93-94 LO: 5 Difficulty: Moderate
AACSB: 5 BT: Comprehension
Rationale: Traditionally, women have earned roughly the same pay as men
only in jobs paying $25,000-$30,000 a year. The further up the pay scale and
the higher the education level, the wider the earnings gap.
62. The Americans with Disabilities Act requires organizations to reasonably
accommodate an individual’s disabilities.
Answer: True Page: 95 LO: 5 Difficulty: Easy AACSB: 5 BT:
Knowledge
76. A(n) __________ is a person or organization that provides raw materials, services,
equipment, labor, or energy to other organizations.
A supplier
CU) distributor
CV) strategic ally
CW) special interest group
CX) ESOP
Answer: A Page: 75 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
78. The Environmental Protection Agency (EPA) administers environmental standards in
the U.S. The EPA represents __________, part of an organizations' __________.
A local communities; task environment
CY) financial institutions; internal environment
CZ) government regulators; task environment
DA) special interest groups; external environment
DB) political-legal forces; general environment
Answer: C Page: 77 LO: 2 Difficulty: Hard AACSB: 3 BT:
Application
Rationale: Government regulators such as the EPA are regulatory agencies
that establish ground rules under which organizations may operate. These
regulators are part of the task environment, the groups that present the
organization with daily tasks to handle.
83. Unemployment rates are examples of _____________ forces in an organization's
general environment.
A economic
DC) technological
DD) political-legal
DE) sociocultural
DF) demographic
Answer: A Page: 79 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
85. Which of the following is considered a demographic characteristic?
A lifestyle
DG) gender
DH) health and fitness level
DI) personal influences
DJ) unemployment
Answer: B Page: 80 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
94. Drug companies are often criticized for selling their drugs at exorbitant prices. When
asked, they will often say that the pricing is fair given the amount of research and
development that has gone into the drug. Without this high price, they argue that
other new drugs that will help millions of people around the world could not be
developed. Yet, those who cannot afford the high price and may die without the
drug feel unjustly discriminated against. The drug companies are practicing
which approach to this ethical dilemma?
A utilitarian
DK) justice
DL) fairness
DM) moral idealism
DN) moral rights
Answer: A Page: 82 LO: 3 Difficulty: Hard AACSB: 2 BT:
Application
Rationale: The utilitarian approach is guided by what will result in the
greatest good for the greatest number of people. In the example given the
drug companies are providing a new drug in addition to the others they have
developed that will help even more people, despite the fact that some cannot
afford the drugs.
102. The economic development that meets the needs of the present without
compromising the ability of future generations to meet their own needs is known as
A economic growth.
DO) strategic planning.
DP) philanthropic growth.
DQ) sustainability.
DR) economic growth.
Answer: D Page: 88 LO: 4 Difficulty: Easy AACSB: 2 BT:
Knowledge
103. Google made a pledge to investors when it went public to reserve 1% of its profit
and equity to “make the world a better place.” This action is the best example of
corporate
A fairness.
DS) correctness.
DT) green.
DU) philanthropy.
DV) sustainability.
Answer: D Page: 89 LO: 4 Difficulty: Moderate AACSB: 2 BT:
Comprehension
Rationale: Philanthropy is defined as making charitable donations to benefit
humankind as Google did with its pledge.
104. Sergio is Manager of Human Resources for XYZ Company. News has just been
released that the company has violated financial reporting laws. Based on research
on the effects of such publicity, Sergio should expect that
A job applications will increase.
DW) job applications will decrease in the short term, but recover within a
month.
DX) job applications will stay about the same.
DY) job applications will decrease.
DZ) Research has not addressed this issue so Sergio has no grounds for
having any expectations whatsoever related to the number of job
applications.
Answer: D Page: 90 LO: 4 Difficulty: Moderate AACSB: 2 BT:
Comprehension
Rationale: Ethics can affect the quality of people who apply to work in an
organization. One online survey of 1,020 people indicated that 83% rated a
company’s record of business ethics as “very important” when deciding
whether to accept a job offer.
105. Which of the following is one of the layers of the “diversity wheel”?
A gender
EA) lifestyle
EB) external dimensions
EC) corporate culture
ED) age
Answer: C Page: 91-92 LO: 5 Difficulty: Easy
AACSB: 5 BT: Knowledge
Question 1
1. Management is the process of assembling and using sets of
resources in a goal-directed manner to accomplish tasks in an
organizational setting.
True
False
2 points
Question 2
1. The term manager refers to anyone who ________.
is not a member of a
labor union
is a member of an
organization
owns shares in the
company
plans, controls, and
evaluates
2 points
Question 3
1. According to Mintzberg's theory of managerial functions,
________ roles include acting as an entrepreneur, a disturbance
handler, a resource allocator, and a negotiator.
decisional
informatio
nal
interperso
nal
leader
2 points
Question 4
1. ________ skills, also known as cognitive complexity, are often
the major factor that determines who reaches the highest levels of
the organization.
Interpersonal
Technical
Conceptual
Decision-
making
2 points
Question 5
1. As the general manager of a steel plant, Frederick Ivanovic
has to divide his time between supervising the overall functioning of
the plant, resolving conflicts between workers, preparing production
reports, and meeting with his seniors to provide them with regular
updates. This reflects the constraint dimension of management.
True
False
2 points
Question 6
1. As the Mayo Clinic became famous, it realized that it must
nurture the _____ that it created.
patient base
organizational
culture
brand
operating
standards
2 points
Question 7
1. Managerial ethics is concerned with morality and _______ of
business conduct among individuals
policies
effectiven
ess
code
standards
2 points
Question 8
1. Mayo Clinic had to invest in ________ and strategic thought
about marketing
attracting patients
professional
development
marketing
expansion
2 points
Question 9
1. A ___________ is an individual or group having an interest in
and are affected by the actions of an organization
shareholder
major investor
group
stakeholder
owner-manager
2 points
Question 10
1. A Company's success in foreign markets is largely determined
by the ways in which it respond to social, economic, political, and
other _________ to international trade.
impediments
technological
aids
cultural
barriers
external
obstacles
2 points
Question 11
1. Managers must be:
compensated more than their
subordinates
technically competent
collegial with employees
entrepreneurs
2 points
Question 12
1. iManage floundered from 1999 to 2000 when the dot.com
bubble burst, jeopardizing its plans to lead the world to a systematic
way of storing and __________information assets.
using
enhanci
ng
protecti
ng
digitizin
g
2 points
Question 13
1. The availability and quality of _______ is a major determinant
in whether or not to enter a new international market
financial
support
infrastructur
e
currency
political
support
2 points
Question 14
1. ________ management is a type of planning process in which
managers, among other things, monitor results and make necessary
adjustments.
operational
tactical
strategic
transformati
onal
2 points
Question 15
1. Corporate responsibility deals with the _____ that corporations
owe to their constituents
loyalty
accountabi
lity
obligations
returns
2 points
Question 16
1. Another purpose of Amy's Ice Cream video is to help students:
Better understand marketing
strategy
Distinguish among the types of
corporations
Develop organization and
management skills
Understand the importance of
customer service
2 points
Question 17
1. ________ level managers are generally only involved in the
development of their unit's specific operational plan.
middle
lower
geographi
cal
functional
2 points
Question 18
1. In Amy's Ice Cream video, one of the most important decisions
Amy Miller faced was choosing:
A new CEO
A marketing strategy
Employees who cared about the
business
A legal ownership structure for the
new business.
2 points
Question 19
1. One major function of a manager is to acquire and ________
resources.
develo
p
distribu
te
organiz
e
evaluat
e
2 points
Question 20
1. The increasing dynamic and complex business environment
provides a _______challenge for managers
tactical
global
motivatio
nal
strategic
2 points
Question 21
1. The purpose of the Snapple video is to help students
understand how _________ is an effective strategy implementation
tool.
operations
management
organizational
development
market segmentation
cost reduction
2 points
Question 22
1. Global business has been growing rapidly in recent decades
because of:
transportation technology
immigration
increased worldwide purchasing power
liberalization of governmental policies on
international trade
2 points
Question 23
1. Organizations must constantly analyze their external
environments and their competition for ________ that may reduce or
eliminate a competitive advantage.
processes
sustainabi
lity
innovation
s
policies
2 points
Question 24
1. The purpose of the Impact of Culture on Business video is to
help students
Understand the impact of culture on business
Learn about how culture influences political systems
Better understand the consequences of
technological developments
Realize that economic conditions vary from country
to country
2 points
Question 25
1. Plans will often fail in the _________ stage because of
inadequate resource assessment and lack of accountability
control
implementa
tion
formulation
evaluation
2 points
Question 26
1. Corporate managers formulate the strategic plan but are
usually not directly involved in developing _____ or _______ plans
Implementation;
tactical
tactical;
operational
control;
implementation
e. evaluation;
control
2 points
Question 27
1. Porter’s five force framework focuses on five _______ that can
significantly influence a company’s performance within an industry
Elements
Principles
Industry and competitor
forces
Reasons
2 points
Question 28
1. iManage Worksite embodies what Mr. Panjwani calls:
employee
empowerment
cost effectiveness
"borderless
collaboration"
common sense
management
2 points
Question 29
1. U.S. manufactures contend that the yuan is undervalued,
making Chinese goods _______ for U.S. consumers and American
products _______ in China
cheaper; more
expensive
expensive; cheaper
more attractive; less
attractive
less attractive; more
attractive
2 points
Question 30
1. Despite the growth of global trade and investment,
globalization is not without ___________
controversy
beneficiaries
claims of
ethnocentricity
macro socio-economic
issues
2 points
Question 31
1. According to the ________ approach to ethical decision making,
some things are just right or wrong, independent of their
consequences.
universal
utilitarian
justice
moral
rights
2 points
Question 32
1. From the perspective of social responsibility, shareholders are
stakeholders.
True
False
2 points
Question 33
1. A major concern with the efficiency perspective is that
corporations can impose indirect consequences that may not be
completely understood or anticipated. In economic terms, such an
unintended consequence is called a(n) ________.
externalit
y
ethical
lapse
oligopoly
random
error
2 points
Question 34
1. The ________ perspective of social responsibility states that a
manager's responsibility is to maximize profits for the owners of the
business.
effector
effectiven
ess
efficiency
efficacy
2 points
Question 35
1. Employees are unlikely to conform to a corporate code of
ethics unless other actions taken by the organization reinforce the
code.
True
False
2 points
Question 36
1. One of the first challenges for managers as they set objectives
is to determine priorities.
True
False
2 points
Question 37
1. A(n) ________ budget outlines how much money an
organization needs, and it is submitted to a superior or a budget
review committee.
approv
ed
pro
forma
propos
ed
linked
2 points
Question 38
1. The setting of organizational objectives must be preceded by
the development of organizational plans.
True
False
2 points
Question 39
1. Which of the following types of plans is the least complex and
rarely has a direct effect on other plans outside of the department
or unit for which they were developed?
strategic
plans
tactical plans
operational
plans
directional
plans
2 points
Question 40
1. A manager tells his sales staff that he wants sales to increase
by 18 percent during this year. Even though they are skeptical about
whether this goal can be reached, most of them agree to it.
However, they were unable to meet the target at the end of the
year. Which of the following would best explain the failure to meet
this goal?
If employees are only superficially committed to the goal, it will
probably not be achieved.
If employees do not believe it is possible to achieve a goal, it is
probably because the goal is too vague.
If employees are skeptical that a goal can be reached, it is
because they do not know how their performance will be
measured.
If a goal is too specific, employees will be demotivated by the
impersonal nature of the goal.
2 points
Question 41
1. An organization using a region-country focus is highly
decentralized.
True
False
2 points
Question 42
1. According to Hofstede, ________ is the extent to which people
accept power and authority differences among people.
gender focus
individualism
power distance
uncertainty
avoidance
2 points
Question 43
1. A ________ is often called a "Greenfield venture."
strategic alliance
licensing
arrangement
wholly-owned
subsidiary
cross-border
acquisition
2 points
Question 44
1. A transnational organization tries to be simultaneously
centralized and decentralized.
True
False
2 points
Question 45
1. In virtual teams, members frequently depend on electronically
mediated communications.
True
False
2 points
Question 46
1. To succeed when pursuing a ________, there must be
significant differences among the firm's target customers or among
geographical segments of its customers.
focus strategy
global strategy
leveraged
strategy
competitive
strategy
2 points
Question 47
1. A firm's value chain consists of ________.
primary and support activities
primary and secondary
activities
observable and surreptitious
activities
regional and global activities
2 points
Question 48
1. ________ translate(s) the strategic intent and mission of the
firm into concrete and measurable goals.
Strategic
alliance
Core
competencies
Strategic
objectives
Strategic
planning
2 points
Question 49
1. A firm can limit its strategic scope by focusing on a specific
customer segment.
True
False
2 points
Question 50
1. A ________ involves competing with firms across markets by
using strengths in one market to overcome weaknesses in another
market.
global strategy
multicultural strategy
multipoint competition
strategy
differentiation strategy
106. Which of the following would be considered a primary dimension of diversity?
A gender
EE) geographic location
EF) lifestyle
EG) ethical beliefs
EH) educational background
Answer: A Page: 92 LO: 5 Difficulty: Easy AACSB: 5 BT:
Knowledge
115. Identify at least five of the external stakeholders of organizations that lie in the task
environment. Explain why each of these is important to the organization.
Page: 75-78 LO: 2 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Answer:
The task environment consists of: Competitors, customers, suppliers,
distributors, strategic allies, employee organizations, local communities,
financial institutions, government regulators, special-interest groups, and mass
media. These are all important to the organization because they are the source
of some input the organization needs. For example, customers bring in money
when they buy a product; suppliers bring in needed materials; employee
unions bring in workers.
116. Identify at least four forces in the general environment of organizations. How do
these differ from those forces in the task environment?
Page: 79-80 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
Answer:
The forces are: Economic, technological, sociocultural, demographic,
political-legal, and international. They differ from forces in the task
environment because an organization may be able to influence or control
elements in its task environment, but not in its general environment.
120. Does ethical behavior and social responsibility pay off financially for an
organization? Summarize the research given in the text.
Page: 90 LO: 4 Difficulty: Hard AACSB: 2 BT:
Comprehension
Answer:
Ethical and socially responsible corporate behaviors have the following effects
(or lack of effects) that have been demonstrated in research studies:
*One survey found that 74% of people polled said their perception of a firm’s
honesty directly affected their decision about whether to buy its stock.
*Illegal corporate behavior diminishes a company's sales growth for several
years.
*88% of customers claim they are more likely to buy from socially responsible
companies.
*Ethical corporate behavior attracts more qualified job applicants.
*One survey found that 71% of employees who saw honesty applied rarely or
never in their organization had seen misconduct in the past year.
*Unethical behavior in the form of employee fraud costs U.S. organizations
around $652 billion a year.
*Studies suggest that profitability is enhanced by a reputation for honesty and
corporate citizenship.
Chapter 4
3. The shrinking of time and space making it easier for people to communicate is referred to
as the global village.
Answer: True Page: 106 LO: 1 Difficulty: Easy AACSB: 3 BT:
Knowledge
6. The term “global economy” refers to the decreasing tendency of the economies of the
world to interact with one another as one market instead of many national markets.
Answer: False Page: 107-108 LO: 1 Difficulty: Easy
AACSB: 3 BT: Knowledge
7. The term “global economy” refers to the increasing tendency of the economies of the
world to erect barriers to free trade.
Answer: False Page: 107-108 LO: 1 Difficulty: Easy
AACSB: 3 BT: Knowledge
23. Multinationals expand to take advantage of the availability of suppliers or to pay tariffs
and accept import quotas.
Answer: False Page: 113-114 LO: 3 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: Multinationals expand to take advantage of availability of
supplies, new markets, lower labor costs, access to finance capital, or
avoidance of tariffs and import quotas.
24. The reasons that companies expand internationally all have to do with making or saving
money.
Answer: True Page: 113-114 LO: 3 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: There are at least five reasons why companies expand
internationally. All of them have to do with making or saving money.
29. Global outsourcing is defined as using suppliers outside the home country to provide
labor, goods, or services.
Answer: True Page: 115LO: 3 Difficulty: Easy AACSB: 3 BT:
Knowledge
42. An “import quota” is a trade barrier in the form of a customs duty, or tax, levied mainly
on imports.
Answer: False Page: 119 LO: 4 Difficulty: Easy AACSB: 3 BT:
Knowledge
45. The organization that assists in smoothing the flow of money between nations is the
World Bank.
Answer: False Page: 120 LO: 4 Difficulty: Easy AACSB: 3 BT:
Knowledge
52. The Asia-Pacific Economic Cooperation (APEC) includes the U.S. and Canada as
members.
Answer: True Page: 121 LO: 4 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: Among the 21 members of APEC are the United States, Canada,
and China.
60. The GLOBE project looks at sustainability around the world.
Answer: False Page: 124-125 LO: 5 Difficulty: Easy
AACSB: 5 BT: Knowledge
69. Which of the following refers to the “shrinking” of time and space as air travel and the
electronic media have made it easier for people of the globe to communicate with
one another?
A Pony Express
EI) Global Village
EJ) The Internet
EK) World Wide Web
EL) Free Trade Agreements
Answer: B Page: 106 LO: 1 Difficulty: Easy AACSB: 3 BT:
Knowledge
70. The beginning of the global economy can be traced to
A the industrial revolution.
EM) the scientific revolution.
EN) the Renaissance.
EO) the fall of the Berlin Wall.
EP) the end of WWII.
Answer: D Page: 107 LO: 1 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Rationale: The fall of communism in Eastern Europe was one of the three
major factors contributing to the rise of the global economy.
71. The term “global economy” refers to the ___________ tendency of the economies of
the world to interact with one another as ______ market instead of ______ national
markets.
A decreasing; one; many
EQ) increasing; one; many
ER) decreasing; many; one
ES) increasing; many; one
ET) increasing; different; similar
Answer: B Page: 107-108 LO: 1 Difficulty: Easy
AACSB: 3 BT: Knowledge
105. A limit on the numbers of a product that can be imported is called a(n)
A embargo.
EU) tariff.
EV) quota.
EW) GATT.
EX) boycott.
Answer: C Page: 119 LO: 4 Difficulty: Easy AACSB: 3 BT:
Knowledge
111. The principal organization that provides low-interest loans to developing nations for
improving their infrastructures is called the
A World Bank.
EY) World Trade Organization.
EZ) International Monetary Fund.
FA) World Health Organization.
FB) GATT.
Answer: A Page: 119-120 LO: 4 Difficulty: Easy
AACSB: 3 BT: Knowledge
116. Which of the following is a major trading bloc?
A GATT
FC) OPEC
FD) IMF
FE) MFO
FF) APEC
Answer: E Page: 121 LO: 4 Difficulty: Easy AACSB: 3 BT:
Knowledge
117. The economic community that includes Italy and Holland is the
A NAFTA.
FG) EU.
FH) ASEAN.
FI) Mercosur.
FJ) IMF.
Answer: B Page: 121 LO: 4 Difficulty: Easy AACSB: 3 BT:
Knowledge
136. Identify the benefits for companies of expanding internationally?
Page: 113-114 LO: 3 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Answer:
The benefits include:
*Availability of supplies
*New markets for old products
*Lower labor costs
*Access to financial capital
*Avoidance of trade barriers
Chapter 5
9. A number of years ago, Rubbermaid had the goal of producing one new product a day.
At that time, Rubbermaid would be described as a prospector.
Answer: True Page: 142 LO: 1 Difficulty: Hard
AACSB: 3 BT: Application
Rationale: Prospectors focus on developing new products or services and in
seeking out new markets, rather than waiting for things to happen.
26. Cutting costs and keeping fares low is a key tactical goal for Southwest’s middle
managers.
Answer: True Page: 148 LO: 2 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: Cutting costs and keeping fares low is a key tactical goal for
Southwest’s middle managers.
39. In order for MBO to be successful, it must be implemented throughout the entire
organization.
Answer: True Page: 150 LO: 3 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: Top management must be committed to the MBO process and it
must be applied organizationwide.
43. The goal 'as many planes as possible should arrive on time' meets the criteria for a
SMART goal.
Answer: False Page: 152-153 LO: 3 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: A SMART goal is one that is Specific, Measurable, Attainable, Results-
oriented, and has Target dates. The example is not measurable
56. Which of the following is a benefit of planning?
A Planning requires you to set aside the time to do it.
FK) You can make all decisions without consulting superiors.
FL) Planning helps you cope with uncertainty.
FM) Planning helps you compare your results to your competition.
FN) Planning helps the company remain spontaneous.
Answer: C Page: 141-142 LO: 1 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: There are four benefits to planning: (1) planning helps you check
on your progress. (2) Planning helps you coordinate activities. (3) Planning
helps you think ahead. (4) Planning helps you cope with uncertainty.
59. XYZ Company scans its environment regularly. However, it does not tend to seek
opportunities outside its present markets. This company would most likely be a (n)
A reactor.
FO) prospector.
FP) analyzer.
FQ) defender.
FR) executor.
62. Which of the following is in the correct order?
A mission statement & vision statement, strategic planning, tactical
planning, operational planning
FS) vision statement, mission statement, strategic planning, operational
planning, tactical planning
FT) control of strategy, mission statement, strategic planning, tactical
planning, operational planning
FU) mission statement, vision statement, strategic planning, operational
planning, tactical planning
FV) mission statement, vision statement, tactical planning, strategic
planning, operational planning
Answer: A Page: 144 LO: 2 Difficulty: Easy
AACSB: 3 BT: Knowledge
65. The statement of an organization's purpose or reason for being is called its
A vision statement.
FW) mission statement.
FX) strategic plan.
FY) operational plan.
FZ) tactical plan.
Answer: B Page: 145 LO: 2 Difficulty: Easy
AACSB: 3 BT: Knowledge
68. The _________ identifies the goods or services the organization provides and will
provide, and the reasons for providing them.
A mission statement
GA) purpose
GB) vision
GC) strategy
GD) tactics
Answer: A Page: 145 LO: 2 Difficulty: Easy AACSB: 3 BT:
Knowledge
69. Roger Enrico of PepsiCo, had a clear sense of the future and the actions needed to get
there. This is an example of a(n)
A mission.
GE) purpose.
GF) vision.
GG) performance.
GH) action plan.
Answer: C Page: 145 LO: 2 Difficulty: Hard
AACSB: 3 BT: Application
Rationale: A vision is a long-term goal describing what an organization wants
to become. It is a clear sense of the future and the actions needed to get there.
72. Ivan is meeting with his subordinates to work out the numbers of positions for workers
needed to handle production for the next 6 months. Ivan is involved in
A strategic planning.
GI) operational planning.
GJ) tactical planning.
GK) controlling.
GL) developing an MBO.
Answer: B Page: 146 LO: 2 Difficulty: Hard
AACSB: 3 BT: Application
Rationale: Operational planning is done by first-line management to
determine how to accomplish specific tasks with available resources within the
next 1-52 weeks.
78. The space shuttle Discovery is an example of a
A policy.
GM) rule.
GN) procedure.
GO) project.
GP) program.
Answer: D Page: 149 LO: 2 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: The space shuttle Discovery is one project in the government’s
space program.
85. MBO works by “cascading” objectives; that is, they become more __________ at lower
levels of the organization.
A general
GQ) challenging
GR) time-bound
GS) attainable
GT) specific
Answer: E Page: 152 LO: 3 Difficulty: Moderate
AACSB: 3 BT: Comprehension
Rationale: MBO works by cascading objectives down through the
organization; that is, objectives are structured in a unified hierarchy, becoming
more specific at lower levels of the organization.
107. What is MBO? Describe the process by which MBO is done.
Page: 150-151 LO: 3 Difficulty: Moderate AACSB: 3 BT:
Comprehension
Answer:
Management by objectives (MBO) is a four-step process in which (1)
managers and employees jointly set objectives for the employee, (2) managers
develop action plans, (3) managers and employees periodically review the
employee’s performance, and (4) the manager makes a performance appraisal
and rewards the employee according to results. The purpose of MBO is to
motivate rather than control subordinates.
Chapter 01 The Exceptional Manager: What You Do, How
You Do It Answer Key
True / False Questions
1. Virginia Rometty, CEO of IBM, believes that her success is due in part to her
ability to take risks.
TRUE
The ability to take risks, to embrace change and to keep going forward
despite fears and internal criticism, is important to any manager's survival,
regardless of gender. As Rometty says, "Growth and comfort do not coexist."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
2. Exceptional managers have a gift that cannot be taught.
FALSE
Being an exceptional manager is not exactly a gift, like a musician having
perfect pitch. In good part it may be an art. Fortunately, it is one that is
teachable.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
3. Management includes integrating the work of people through planning,
organizing, leading, and controlling the organization's resources.
TRUE
Management is defined as (1) the pursuit of organizational goals efficiently
and effectively by (2) integrating the work of people through (3) planning,
organizing, leading, and controlling the organization's resources.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
4. To be efficient in management means to use resources wisely and cost
effectively.
TRUE
Efficiency is the means of attaining the organization's goals. To be efficient
means to use resources like people, money, and raw materials wisely and
cost effectively.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
5. Efficiency and effectiveness are terms used interchangeably and
equivalently in management.
FALSE
To be efficient means to use resources like people, money, and raw
materials wisely and cost effectively. To be effective means to achieve
results, to make the right decisions, and to successfully carry them out so
they achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
6. Automated telephone systems are typically both very effective and very
efficient.
FALSE
We're accustomed to having our calls to companies for information and
customer support answered not by people but by automated answering
systems. This arrangement is efficient for the companies, since they no
longer need as many employees to answer the phones. But it's not effective
if it leaves us, the customers, fuming and less inclined to continue doing
business.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
7. An effective manager has a multiplier effect on the organization, meaning
his or her influence is multiplied beyond the results achievable by just one
person.
TRUE
In being a manager you have a multiplier effect: your influence on the
organization is multiplied far beyond the results that can be achieved by just
one person acting alone.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
8. John Hammergren's compensation of $145 million in 2010 as CEO of health
care technology firm McKesson is typical for CEOs in North America today.
FALSE
The business press frequently reports on the astronomical earnings of top
chief executive officers. The top earner was John Hammergren of health care
technologies company McKesson, who led the list that year with $145
million. However, this kind of huge payday isn't common. Median
compensation for top-ranked CEOs in North America in 2010 was $9 million.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
9. Studying management is likely to help you once you are in a manager role,
but is unlikely to be beneficial before then.
FALSE
There are several benefits of studying management that you can use before
being a manager. You will better understand how to deal with organizations
from the outside, how to relate to your supervisors, how to interact with co-
workers, and how to manage yourself in the workplace.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
10. One of the payoffs of studying management is an improved understanding
of how to deal with organizations as a customer.
TRUE
Studying management is likely to help you understand how to deal with
organizations from the outside. Since we all are in constant interaction with
all kinds of organizations, it helps to understand how they work and how the
people in them make decisions. Such knowledge may give you some
defensive skills that you can use in dealing with organizations as a customer
or investor.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
11. One of the rewards of being a manager is that you can build a catalog of
successful products or services.
TRUE
There are many rewards, apart from those of money and status, to being a
manager. One of these is that you can build a catalog of successful products
or services. Every product or service you provide becomes a monument to
your accomplishments.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
12. If you enjoy mentoring and helping others to grow, management is a great
job.
TRUE
According to productivity-improvement expert Odette Pollar, "If you truly like
people and enjoy mentoring and helping others to grow and thrive,
management is a great job."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
13. Most people prefer to have a combination of a high level of skill and low
level of challenge while at work.
FALSE
The ideal state that many people seek is an emotional zone somewhere
between boredom and anxiety, in the view of psychologist Mihaly
Csikzentmihalyi. Boredom, he says, may arise because skills and challenges
are mismatched: You are exercising your high level of skill in a job with a low
level of challenge, such as licking envelopes.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
14. Organizations can gain a competitive advantage by matching their
competition in terms of quality, responsiveness, and efficiency.
FALSE
The first challenge of a manager is to manage for competitive advantage.
This means an organization must stay ahead in four areas: (1) being
responsive to customers, (2) innovation, (3) quality, and (4) efficiency.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
15. The decline in revenue in the newspaper industry is due to a sharp drop in
the number of people reading American newspapers.
FALSE
American newspapers are more widely read than ever before, with 105.5
million unique visitors a month in 2011 versus 60 million four years earlier.
The problem: Many people aren't paying for news; they're getting it free
online.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
16. When managing for competitive advantage, the first "law" of business is
"take care of the shareholders."
FALSE
Responsiveness to the customer is part of managing for competitive
advantage. Here, the first law of business is: Take care of the customer.
Without customers, whatever they might be called, sooner or later there will
be no organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
17. Taking care of the customer applies equally well to nonprofit and for-profit
businesses.
TRUE
Nonprofit organizations are well advised to be responsive to their
"customers," too, whether they're called citizens, members, students,
patients, voters, rate-payers, or whatever, since they are the justification for
the organizations' existence.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
18. In business, innovation is defined as finding ways to deliver new or better
goods or services.
TRUE
Finding ways to deliver new or better goods or services is called innovation.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
19. Whereas a generation ago organizations rewarded employees for their
efficiency, today the emphasis is on length of service.
FALSE
A generation ago, organizations rewarded employees for their length of
service. Today, however, the emphasis is on efficiency: Companies strive to
produce goods or services as quickly as possible using as few employees
(and raw materials) as possible.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
20. Despite continued immigration, the proportion of racial or ethnic groups in
the United States is expected to be stable well into the next century.
FALSE
Today nearly one in six American workers is foreign-born, the highest
proportion since the 1920s. But greater changes are yet to come. By mid-
century, the mix of American racial or ethnic groups will change
considerably, with the United States becoming half (54%) racial or ethnic
minority.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
21. When he or she does not speak the local language, a manager should rely
on gestures and symbols since their consistency of meaning provides a form
of universal communication throughout the world.
FALSE
Gestures and symbols don't have the same meaning to everyone
throughout the world. For example, in Greece the hand-waving gesture
commonly used in America for goodbye is considered an insult.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
22. The Internet is a global network of independently operating but
interconnected computers, linking hundreds of thousands of smaller
networks around the world.
TRUE
The Internet is the global network of independently operating but
interconnected computers, linking hundreds of thousands of smaller
networks around the world.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
23. The buying and selling of goods or services over computer networks is
known as e-exchange.
FALSE
E-commerce, or electronic commerce, is the buying and selling of goods or
services over computer networks.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
24. One reason e-business is so important is that the Internet dramatically
lowers the cost of communication.
TRUE
Information technology has facilitated e-business, using the Internet to
facilitate every aspect of running a business. As one article puts it, "at
bottom, the Internet is a tool that dramatically lowers the cost of
communication. That means it can radically alter any industry or activity
that depends heavily on the flow of information."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
25. Text messages and documents transmitted over a computer network are
called cyber-messages.
FALSE
E-mail is the term for text messages and documents transmitted over a
computer network.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
26. Project management software allows managers to plan and schedule the
people, costs, and resources to complete a project on time.
TRUE
Project management software is a program for planning and scheduling the
people, costs, and resources to complete a project on time.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
27. A problem typically associated with interconnected databases on the
Internet is the potential to overwhelm employees with too much
information.
TRUE
The Internet, with its huge, interconnected databases made up of
computerized collections of interrelated files, can overwhelm us with
information, much of it useful, much of it not.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
28. One advantage of e-business is that organizations and teams are no longer
as bound by time zones and locations.
TRUE
With computers and telecommunications technology, organizations and
teams become "virtual"; they are no longer as bound by time zones and
locations.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
29. Viral staffing is the term used to describe working from home or remote
locations using a variety of information technologies.
FALSE
Telecommuting is working from home or remote locations using a variety of
information technologies.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
30. Meetings that are conducted via telecommuting use video and audio links
along with computers to let people in different locations see, hear, and talk
with one another.
FALSE
Meetings may be conducted via videoconferencing, using video and audio
links along with computers to let people in different locations see, hear, and
talk with one another.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
31. Collaborative computing involves using state-of-the-art computer software
and hardware to help people work better together.
TRUE
Collaborative computing, using state-of-the-art computer software and
hardware, will help people work better together.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
32. Integration management is the implementation of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
FALSE
Knowledge management is the implementing of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
33. In recent years, white-collar crime in the United States has become very
rare.
FALSE
Bernard Madoff is but one of a long list of famous business scoundrels of the
early 21st century. Not since sociologist Edwin Sutherland invented the term
white-collar crime in the 1930s have so many top-level executives been
hauled into court as during recent years.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
34. The Josephson Institute suggests a TEAM (Teach, Enforce, Advocate, Model)
approach for parents to encourage good financial habits in children.
FALSE
The Josephson Institute suggests that parents can take a TEAM (Teach,
Enforce, Advocate, Model) approach to help children learn the importance of
honesty.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
35. Unsustainable business practices have resulted from an often accepted but
untrue notion that natural resources are limitless.
TRUE
Our economic system has brought prosperity, but it has also led to
unsustainable business practices because it has assumed that natural
resources are limitless, which they are not.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
36. Having to attend too many meetings or feeling a lack of respect are typical
reasons that some people don't find being a manager fulfilling.
TRUE
Many people simply don't find being a manager fulfilling. They may
complain that they have to go to too many meetings, that they can't do
enough for their employees, that they are caught in the middle between
bosses and subordinates. They may feel, at a time when Dilbert cartoons
have created such an unflattering portrayal of managers, that they lack
respect.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
37. One's experience in management remains very insulated from the
company's culture.
FALSE
Productivity-improvement expert Odette Pollar points out that "one's
experience in management is greatly affected by the company's culture."
Culture, or style, is indeed an important matter, because it affects your
happiness within an organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
38. The "management process" is sometimes called the "four management
functions."
TRUE
The management process can also be called the four management
functions: planning, organizing, leading, and controlling.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
39. When Barrett, a college administrator, is determining which of several
degree programs his campus will offer, he is involved in the management
function of controlling.
FALSE
Planning is defined as setting goals and deciding how to achieve them. A
college is established for the purpose of educating students, and its present
managers, or administrators, must decide the best way to accomplish this.
For example, they must ask which of several possible degree programs
should be offered.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
40. Organizing is the arranging of tasks, people, and other resources to
accomplish work.
TRUE
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
41. When Carla revises the waitstaff schedule at her restaurant to have more
personnel available during the newly busy breakfast rush, she is engaged in
organizing.
TRUE
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
42. When Shannon reviews reports and determines that she has four
underperforming salespeople with whom she will need to talk, she is
performing the controlling managerial function.
TRUE
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
43. When a manager is motivating others to work hard to achieve the
organization's goals, she is engaged in the management function of
leading.
TRUE
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
44. Tucker recently attended a dinner for the new CEO. He came away feeling
very excited and anxious to do his part to help the company achieve its
goals. In this instance, the CEO was performing the management function
known as planning.
FALSE
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
45. According to Peter Drucker, "knowledge workers" have very little technical
skill.
FALSE
The workplace of the future may resemble a symphony orchestra, famed
management theorist Peter Drucker said. Employees, especially so-called
knowledge workers, those who have a great deal of technical skills, can be
compared to concert musicians. Their managers can be seen as conductors.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
46. The traditional organizational model is most often represented by a funnel
shape.
FALSE
The traditional organizational model is pyramid-like, where one leader sits at
the top, with layers of managers beneath.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
47. There are managers at three levels of an organization: top, middle, and first-
line.
TRUE
Managers of an organization may be classified into three levels: top, middle,
and first-line.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
48. First-line managers make long-term decisions about the overall direction of
the organization and establish the objectives, policies, and strategies for it.
FALSE
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
49. Mingjin is a branch manager in Albuquerque who reports to the CEO in
Denver and to whom three other managers at her facility report, so she
would be termed a middle manager.
TRUE
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them. In the for-profit world, the titles may be "division
head," "plant manager," and "branch sales manager."
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
50. A first-line manager directs the daily tasks of nonmanagerial personnel.
TRUE
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
51. A vice president of production is a general manager.
FALSE
If your title is vice president of production, director of finance, or
administrator for human resources, you are a functional manager. A
functional manager is responsible for just one organizational activity.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
52. A general manager typically oversees several departments within an
organization.
TRUE
A general manager may oversee several departments, such as production
and finance and human resources. A general manager is responsible for
several organizational activities.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
53. The main purpose of a nonprofit organization is to offer services to some
clients.
TRUE
Nonprofit organizations' main purpose is to offer services to some clients,
not to make a profit.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
54. According to Mintzberg's research, managers rely more on verbal than on
written communication because of the time it takes to accomplish the
latter.
TRUE
A manager relies more on verbal than on written communication. Writing
letters, memos, and reports takes time. Most managers in Mintzberg's
research tended to get and transmit information through telephone
conversations and meetings.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
55. Since the 1960s research conducted by Mintzberg, the typical general
manager has reduced her work week to the traditional 40 hours.
FALSE
According to Mintzberg's research, long hours at work are standard, with 50
hours being typical and up to 90 hours not unheard of. Since then, a 1999
survey by John P. Kotter of the Harvard Business School found that the
general managers he studied worked just under 60 hours per week.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
56. Most managers require lengthy, uninterrupted periods during the regular
workday to accomplish their work and make themselves unavailable to
subordinates to create them.
FALSE
The executive's work time has been characterized as "the interrupt-driven
day" and many managers, such as the late Mary Kay Ash, head of the Mary
Kay Cosmetics company, get up as early as 5 a.m. so that they will have a
quiet period in which to work undisturbed.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
57. Time and task management are major challenges for every manager.
TRUE
It is clear from Mintzberg's work that both time and task management are
major challenges for every manager.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
58. According to Mintzberg, the three broad types of managerial roles include
interpersonal, analytical, and critical.
FALSE
From his observations and other research, Mintzberg concluded that
managers play three broad types of roles or "organized sets of behavior":
interpersonal, informational, and decisional.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
59. Good executive functioning includes heavy multitasking and answering
every e-mail nearly instantly.
FALSE
Executive functioning includes the ability to focus your thoughts, control
your impulses, and avoid distractions. You can drive yourself crazy trying to
multitask and answer every e-mail message instantly. Or you can recognize
your brain's finite capacity for processing information.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
60. The monitor function is an example of the informational roles often played
by managers.
TRUE
In their three informational roles as monitor, disseminator, and
spokesperson, managers receive and communicate information with other
people inside and outside the organization.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
61. In interpersonal managerial roles, a manager acts as entrepreneur,
disturbance handler, or negotiator.
FALSE
In their interpersonal roles, managers interact with people inside and
outside their work units. The three interpersonal roles include figurehead,
leader, and liaison activities. In their decisional roles, managers use
information to make decisions to solve problems or take advantage of
opportunities. The four decision-making roles are entrepreneur, disturbance
handler, resource allocator, and negotiator.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
62. Entrepreneurship means taking risks to try to create a new enterprise.
TRUE
Entrepreneurship is the process of taking risks to try to create a new
enterprise.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
63. Two types of entrepreneurship include the extrapreneur and the
intrapreneur.
FALSE
There are two types of entrepreneurship. An entrepreneur is someone who
sees a new opportunity for a product or service and launches a business to
try to realize it. An intrapreneur is someone who works inside an existing
organization who sees an opportunity for a product or service and mobilizes
the organization's resources to try to realize it.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
64. Successful entrepreneurial companies have been called "gazelles" because
of a characteristic they possess, namely an acute sensitivity to danger in
the environment.
FALSE
Entrepreneurial companies have been called "gazelles" for the two
attributes that make them successful: speed and agility. "Gazelles have
mastered the art of the quick," says Alan Webber, founding editor of Fast
Company magazine. "They have internal approaches and fast decision-
making approaches that let them move with maximum agility in a fast-
changing business environment."
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
65. Entrepreneurs typically have a much higher need for achievement and a
stronger belief in personal control of destiny than do typical managers.
FALSE
Both entrepreneurs and managers have a high need for achievement. Also
characteristic of both is a belief in personal control of destiny.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
66. Opportunity entrepreneurs are those who start their own business out of a
burning desire rather than because they lost a job.
TRUE
So-called opportunity entrepreneurs, about 89%, are those who start their
own business out of a burning desire rather than because they lost a job.
Unlike necessity types, they tend to be more ambitious and to start firms
that can lead to high-growth businesses.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
67. Researcher Robert Katz determined that through education and experience
managers acquire technical, conceptual, and human skills.
TRUE
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills: technical, conceptual,
and human.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
68. Having required technical skills is most important among top managers at
the highest leadership levels.
FALSE
Having the requisite technical skills seems to be most important at the
lower levels of management; that is, it is critical among first-line managers.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
69. Human skills become less critical as one's career progresses, and are least
important for top managers.
FALSE
Human skills, which include the ability to motivate, to inspire trust, to
communicate with others, are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
Multiple Choice Questions
70. One way to think of ______ is "the art of getting things done through
people."
A. supervisi
on
B. motivati
on
C. manageme
nt
D. leadershi
p
E. strate
gy
Management, said one pioneer of management ideas, is "the art of getting
things done through people."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
71. The pursuit of organizational goals efficiently and effectively by integrating
the work of people through planning, organizing, leading, and controlling the
organization's resources is called
A. employme
nt.
B. career
planning.
C. competitive
advantage.
D. manageme
nt.
E. strategic
planning.
Management is defined as (1) the pursuit of organizational goals efficiently
and effectively by (2) integrating the work of people through (3) planning,
organizing, leading, and controlling the organization's resources.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
72. A group of people who work together to achieve some specific purpose
is/are called
A. manager
s.
B. a
collaboration
.
C. a
team.
D. an
organization.
E. a
community.
An organization is a group of people who work together to achieve some
specific purpose.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
73. Tracy, a manager at a busy warehouse, was slow to hire new employees,
preferring instead to encourage improvements from his current staff. He
carefully watched his other costs too, performing equipment maintenance
on a regular basis to improve its lifespan. Tracy would best be described as
a(n) _____ manager.
A. efficie
nt
B. ethic
al
C. innovati
ve
D. effectiv
e
E. micr
o
Efficiency is the means of attaining the organization's goals. To be efficient
means to use resources like people, money, and raw materials wisely and
cost effectively.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 3 Hard
Topic: Management: What It Is, What Its Benefits Are
74. To be ______ as a manager means to make the right decisions and
successfully carry them out to achieve goals.
A. producti
ve
B. ethic
al
C. efficie
nt
D. effectiv
e
E. innovati
ve
Effectiveness is the organization's ends, the goals. To be effective means to
achieve results, to make the right decisions, and to successfully carry them
out so they achieve the organization's goals.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
75. The _________ effect states that a manager's influence on the organization
has implications far beyond the results that can be achieved by one person
acting alone.
A. proliferati
on
B. multipli
er
C. manageri
al
D. hal
o
E. additiv
e
In being a manager you have a multiplier effect: Your influence on the
organization is multiplied far beyond the results that can be achieved by just
one person acting alone.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 1 Easy
Topic: Management: What It Is, What Its Benefits Are
76. According to a Fortune article, the scarcest, most valuable resource in
business is not financial capital but
A. renewable
resources.
B. government
support.
C. highly innovative
technology.
D. a young
workforce.
E. skilled, effective
managers.
Exceptional managers are in high demand. "The scarcest, most valuable
resource in business is no longer financial capital," says a Fortune article.
"It's talent. If you doubt that, just watch how hard companies are battling for
the best people… Talent of every type is in short supply, but the greatest
shortage of all is skilled, effective managers."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
77. Which of the following is the most likely payoff of studying management as
a discipline?
A. You will understand how to brand your
organization.
B. You will understand how to relate to and interact with your supervisors
and co-workers.
C. You will understand how to manage your family and close friends more
effectively.
D. You will understand how to deal with the media in
a crisis.
E. You will understand how to advance your career
without guilt.
A few of the payoffs of studying management as a discipline include
understanding how to deal with organizations from the outside,
understanding how to relate to your supervisors and co-workers, and
understanding how to manage yourself in the workplace.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
78. Which of the following is not a reward for practicing management?
A. You can build a catalog of successful products or
services.
B. You and your employees can experience a sense of
accomplishment.
C. You can stretch your abilities and magnify your
range.
D. You can be rewarded with money and status for your
efforts.
E. You can become exempt from many of society's ethical
standards.
In addition to money and status, there are many rewards to being a
manager including experiencing a sense of accomplishment, stretching your
abilities and magnifying your range, and building a catalog of successful
products or services.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
79. Which of the following is one of the seven primary challenges facing
managers today?
A. Maintaining good records of what worked in
the past.
B. Dealing with a stubbornly static and immobile
environment.
C. Staying ahead of competitors through corporate
espionage.
D. Managing to achieve one's own happiness and life
goals.
E. Collaborating with
competitors.
Seven challenges face any manager: You need to manage for competitive
advantage. You need to manage for diversity in race, ethnicity, gender, and
so on. You need to manage for the effects of globalization and of information
technology. You need to manage to maintain ethical standards, and manage
for sustainability, and finally for the achievement for your own happiness
and life goals.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
80. Petra is a new manager for a household products company, after getting a
promotion from an administrative job that she found boring. But now she
frequently experiences ______, like when she had to explain the new product
her team is developing to the CEO and several board members. As
psychologist Csikzentmihalyi predicts, her ideal state would be an emotional
zone between that and boredom.
A. overloa
d
B. anxiet
y
C. immodes
ty
D. fea
r
E. pressur
e
The ideal state that many people seek is an emotional zone somewhere
between boredom and anxiety, in the view of psychologist Mihaly
Csikzentmihalyi. Boredom, he says, may arise because skills and challenges
are mismatched: You are exercising your high level of skill in a job with a low
level of challenge, such as licking envelopes. Anxiety arises when one has
low levels of skill but a high level of challenge, such as suddenly being
called upon to give a rousing speech to strangers.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
81. The ability of an organization to outperform others by producing goods or
services more effectively than its competitors is called its
A. competitive
advantage.
B. qualit
y.
C. efficienc
y.
D. innovatio
n.
E. effectivenes
s.
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thereby outperforming them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
82. Which of the following is not an area in which an organization must stay
ahead of its competitors to achieve competitive advantage?
A. Environmental
action
B. Being responsive to
customers
C. Innovati
on
D. Qualit
y
E. Efficienc
y
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thereby outperforming them.
This means an organization must stay ahead in four areas: (1) being
responsive to customers, (2) innovation, (3) quality, and (4) efficiency.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
83. Which of the following is the most likely reason for the decline in fortunes of
American newspapers, and their inability to exploit their competitive
advantage?
A. A poorer standard for news-
gathering.
B. Relying too heavily on advertising, rather than customer subscriptions,
for revenue.
C. Decline in newspaper readership over the last 70
years.
D. Preference of customers for getting news in a nonverbal
format.
E. An increase in salaries and material costs within the
industry.
How did newspapers lose their way? First, by giving away the product, and
second, by relying too much on advertising for revenue.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
84. In seeking competitive advantage, the first law of business is to
A. take care of your
shareholders.
B. take care of your
stakeholders.
C. take care of the
customer.
D. take care of the
environment.
E. take care of your
employees.
The first law of business is: Take care of the customer. Without customers,
whatever they're called, sooner or later there will be no organization. This is
known as responsiveness to customers, an important component of
competitive advantage.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
85. Finding ways to deliver new or better goods or services is called
A. advanceme
nt.
B. streamlinin
g.
C. innovatio
n.
D. efficienc
y.
E. quality
control.
Finding ways to deliver new or better goods or services is called innovation.
No organization, for-profit or nonprofit, can allow itself to become
complacent, especially when rivals are coming up with creative ideas.
"Innovate or die" is an important adage for any manager.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
86. Customers are likely to put up with poor-quality products only if your
organization is
A. underperforming in
innovation.
B. using computerized customer
service.
C. the only one of its
kind.
D. in a very competitive
industry.
E. lacking strong environmental
policies.
If your organization is the only one of its kind, customers may put up with
products or services that are less than stellar but only because they have no
choice. But if another organization comes along and offers a better-quality
product, you may find your company falling behind.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
87. By mid-century, the percentage of Hispanics (of any race) in the U.S.
population is expected to ______, and the percentage of non-Hispanic whites
is expected to ______.
A. stay the same;
increase
B. double;
decrease
C. decrease;
increase
D. double; increase
slightly
E. stay the same;
decrease
By mid-century, the mix of American racial or ethnic groups will change
considerably, with the United States becoming half (54%) racial or ethnic
minority. Non-Hispanic whites are projected to decrease from 66% of the
population in 2008 to 46% in 2050. African Americans will increase from
14% to 15%, Asians and Pacific Islanders from 5.1% to 9.2%, and Hispanics
from 15% to 30%.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
88. The concept of a "flat" world means
A. employees are learning to suppress negative emotion in the
workplace.
B. corporations are developing a preference for a new, flatter
organizational structure.
C. a recession now slows the economies of most nations
simultaneously.
D. globalization has leveled the playing field for emerging
economies.
E. businesspeople are now more conservative in their approach to
investment.
American firms have been going out into the world in a major way, even as
the world has been coming to us. This has led to what New York Times
columnist Thomas Friedman has called, in his book The World Is Flat, a
phenomenon in which globalization has leveled (made "flat") the
competitive playing fields between industrial and emerging-market
countries.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
89. Though many advantages have been linked to e-business, studies show that
employees are less productive when dealing with excessive ______ volume.
A. videoconferenci
ng
B. meetin
g
C. e-
mail
D. telecommuti
ng
E. collaborative
computing
Studies show that employees lose valuable time and productivity when
dealing with excessive and unimportant e-mail volume and increasing
amounts of cell-phone spam.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
90. Paul has been tasked with creating a new microsite on his engineering
company's intranet. The site will house company-approved design
procedures and efficiency strategies for all employees. Creating the design
microsite is a form of
A. strategy
management.
B. e-
management
.
C. project
management.
D. knowledge
management.
E. morale
management.
Knowledge management is the implementing of systems and practices to
increase the sharing of knowledge and information throughout an
organization.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
91. As a sales manager, you would have to decide how much leeway to give
your subordinates in giving gifts to prospective clients in foreign countries.
This is an example of the challenge of managing for
A. your own
happiness.
B. globalizatio
n.
C. ethical
standards.
D. sustainabili
ty.
E. diversit
y.
With the pressure to meet sales, production, and other targets, managers
can find themselves confronting ethical dilemmas. An example would be
how much leeway to give employees in giving gifts to prospective clients in
a foreign country to try to land a contract.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
92. Economic development that meets the needs of the present without
compromising the ability of future generations to meet their own needs is
known as
A. environmentalis
m.
B. globalizatio
n.
C. ethic
s.
D. the bottom
line.
E. sustainabili
ty.
Sustainability is defined as economic development that meets the needs of
the present without compromising the ability of future generations to meet
their own needs.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 1 Easy
Topic: Seven Challenges to Being an Exceptional Manager
93. The company's culture most directly affects
A. the number of competitors a
firm has.
B. the number of products a company
makes.
C. the amount charged for the firm's products or
services.
D. the manager's
happiness.
E. the education of the
workforce.
One's experience in management is greatly affected by the company's
culture. Culture, or style, is indeed an important matter, because it affects
your happiness within an organization.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
94. Which of the following is one of the four principal functions of management,
also known as the management process?
A. Organizin
g
B. Schedulin
g
C. Motivati
ng
D. Executin
g
E. Monitori
ng
Managers perform what is known as the management process, also called
the four management functions: planning, organizing, leading, and
controlling.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
95. Setting goals and deciding how to achieve them is called
A. controllin
g.
B. managin
g.
C. plannin
g.
D. organizin
g.
E. leadin
g.
Planning is defined as setting goals and deciding how to achieve them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
96. When a manager at a software company is determining whether to hire
more full-time programmers or possibly more temporary ones, he is
engaged in
A. plannin
g.
B. organizin
g.
C. managin
g.
D. leadin
g.
E. controllin
g.
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work. Organizing includes determining the tasks to be done,
by whom, and what the reporting hierarchy is to be.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
97. Because the various groups that help a manager reach company goals often
have different needs and wants, resolving conflicts is an essential part of
which management function?
A. Plannin
g
B. Clarifyin
g
C. Organizin
g
D. Controlli
ng
E. Leadin
g
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals. The various groups
involved often have different needs and wants, so an essential part of
leadership is resolving conflicts.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 2 Medium
Topic: What Managers Do: The Four Principal Functions
98. A general manager at a department store is giving an important
presentation to several departments to engage the whole staff in a new
customer retention effort beginning this month. This is an example of
A. plannin
g.
B. organizin
g.
C. leadin
g.
D. controllin
g.
E. marketin
g.
Leading is defined as motivating, directing, and otherwise influencing
people to work hard to achieve the organization's goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
99. Monitoring performance and taking corrective action as needed is called
A. improvisin
g.
B. plannin
g.
C. organizin
g.
D. improvin
g.
E. controllin
g.
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 1 Easy
Topic: What Managers Do: The Four Principal Functions
100. Aziz immediately halted production at his facility after seeing a report
indicating the last batch had a high level of product defects, and restarted
work only when the problem was discovered and fixed. Aziz is engaged in
which management function?
A. Repairin
g
B. Organizin
g
C. Monitori
ng
D. Controlli
ng
E. Executin
g
Controlling is defined as monitoring performance, comparing it with goals,
and taking corrective action as needed.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
101. Management theorist Peter Drucker compared the workplace of the future to
a
A. pyrami
d.
B. symphony
orchestra.
C. flattened
oval.
D. chess
game.
E. warshi
p.
The workplace of the future may resemble a symphony orchestra, famed
management theorist Peter Drucker said. Employees, especially so-called
knowledge workers, can be compared to concert musicians. Their managers
can be seen as conductors. The conductor's role is not to play each
instrument but to lead them all through the most effective performance of a
particular work.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
102. Tonya is a structural engineer who works for a large international firm. She
designs the concrete and steel structures that support even the largest and
most complex buildings. Because of her high level of technical skills, Tonya
is best referred to as a
A. knowledge
worker.
B. blue-collar
worker.
C. self-managed
worker.
D. first-line
worker.
E. first-line
manager.
A knowledge worker is one who has a great deal of technical skill such as
Tonya has in this example.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
103. In the traditional management pyramid, managers are classified into ______
levels.
A. tw
o
B. thre
e
C. fou
r
D. fiv
e
E. si
x
Managers may be classified into three levels: top, middle, and first-line.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
104. A senior vice president is an example of what level of manager?
A. first-
line
B. to
p
C. leadershi
p
D. middl
e
E. mer
it
An organization's top managers tend to have titles such as "chief executive
officer (CEO)," "chief operating officer (COO)," "president," and "senior vice
president."
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
105. Managers who are future oriented, dealing with uncertain, highly
competitive conditions, and who stay alert to long-run opportunities and
problems are most likely to be
A. first-line
managers.
B. functional
managers.
C. middle
managers.
D. general
managers.
E. top
managers.
Top managers make long-term decisions about the overall direction of the
organization. They need to pay a lot of attention to the environment outside
the organization, being alert for long-run opportunities and problems and
devising strategies for dealing with them. Thus, executives at this level must
be future oriented, dealing with uncertain, highly competitive conditions.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
106. Managers who implement the policies and plans determined at the highest
levels and coordinate the activities of lowest-level managers are called
A. executional
managers.
B. first-line
managers.
C. middle
managers.
D. functional
managers.
E. general
managers.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
107. Derrick is a clinic director running a downtown Chicago facility for a large
nonprofit health organization. He receives most of his strategic direction
from the organization and supervises several department managers in his
workplace. Derrick is a
A. first-line
manager.
B. middle
manager.
C. tactical
manager.
D. functional
manager.
E. coordination
manager.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them. One title in nonprofit organizations may be "clinic
director" for example.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
108. Managers who make short-term operating decisions and direct the daily
tasks of the nonmanagerial employees are called
A. first-line
managers.
B. middle
managers.
C. general
managers.
D. functional
managers.
E. initial
managers.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel, who are, of course, all those people who work directly at their
jobs but don't oversee the work of others.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
109. Angelina is a shift supervisor for a successful supermarket chain, directing
the work of as many as eight other cashiers. She is a(n)
A. directional
manager.
B. middle
manager.
C. first-line
manager.
D. general
manager.
E. area
manager.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel, who are, of course, all those people who work directly at their
jobs but don't oversee the work of others. Supervisor is the name often
given to first-line managers as a whole.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
110. A ______ manager is responsible for just one organizational activity.
A. speciali
st
B. first-
line
C. singul
ar
D. function
al
E. top-
level
A functional manager is responsible for just one organizational activity.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 1 Easy
Topic: Pyramid Power: Levels and Areas of Management
111. The United Way and Nature Conservancy are examples of which type of
organization?
A. For-
profit
B. Nonpro
fit
C. Administrati
ve
D. Mutual-
benefit
E. Aid-
based
Nonprofit organizations' purpose is to offer services to some clients, not to
make a profit. Examples of such organizations are hospitals, colleges, and
social-welfare agencies (e.g., the Salvation Army, the Red Cross).
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
112. Which type of nonprofit organization offers services to all clients within its
jurisdiction?
A. Administrati
ve
B. Mutual-
benefit
C. Aid-
based
D. Authori
ty
E. Commonwe
al
One particular type of nonprofit organization is called the commonweal
organization. Unlike nonprofit service organizations, which offer services to
some clients, commonweal organizations offer services to all clients within
their jurisdictions. Examples are the military services, the U.S. Postal
Service, and your local fire and police departments.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
113. Abbie recently joined a professional organization for certified public
accountants, and was happy that her firm offered to pay the dues. This type
of group is an example of a(n) ______ organization.
A. for-
profit
B. nonpro
fit
C. administrati
ve
D. mutual-
benefit
E. aid-
based
Mutual-benefit organizations are voluntary collections of members such as
political parties, farm cooperatives, labor unions, trade associations, and
clubs whose purpose is to advance members' interests.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
114. The primary measure of success of a nonprofit organization is typically
A. the total
revenue.
B. ROI
.
C. the effectiveness of the services
delivered.
D. the market
share.
E. the number of services
available.
In a nonprofit organization, although income and expenditures are very
important concerns, the measure of success is usually the effectiveness of
the services delivered.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 2 Medium
Topic: Pyramid Power: Levels and Areas of Management
115. Which of the following statements about a manager's worklife is not among
the findings of management scholar Henry Mintzberg?
A. Managers work long
hours.
B. Most managerial tasks require lengthy periods of time for
completion.
C. Managers rely more on verbal than on written
communication.
D. Managers work at an intense
pace.
E. Managers' work is characterized by
variety.
Managers tend to work long hours at an intense pace; their work is
characterized by fragmentation, brevity, and variety; and they rely more on
verbal than on written communication. Only about a tenth of the managerial
activities observed by Mintzberg took more than an hour; about half were
completed in under 9 minutes. Phone calls averaged 6 minutes, informal
meetings 10 minutes, and desk-work sessions 15 minutes.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 2 Medium
Topic: Roles Managers Must Play Successfully
116. According to Mintzberg's work, which of the following is one of the three
broad types of roles that managers play?
A. Analytic
al
B. Profession
al
C. Interdepende
nt
D. Disciplina
ry
E. Interperson
al
From his observations and other research, Mintzberg concluded that
managers play three broad types of roles or "organized sets of behavior":
interpersonal, informational, and decisional.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
117. Which of the following is an example of a decisional role that managers
play?
A. Figurehea
d
B. Spokesperso
n
C. Resource
allocator
D. Liaiso
n
E. Monit
or
In their decisional roles, managers use information to make decisions to
solve problems or take advantage of opportunities. The four decision-
making roles are entrepreneur, disturbance handler, resource allocator, and
negotiator.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
118. In a ______ role, you should be constantly alert for useful information,
whether gathered from newspaper stories about the competition or
discovered in conversations with subordinates.
A. figurehe
ad
B. negotiat
or
C. spokespers
on
D. monit
or
E. disseminat
or
As a monitor, you should be constantly alert for useful information, whether
gathered from newspaper stories about the competition or gathered from
snippets of conversation with subordinates you meet in the hallway.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
119. Matthew, the president of a diesel engine research firm, was welcoming
potential partners from a large automobile corporation in Europe. Before
handing them off to his technical counterpart, he gave them an extensive
tour of his laboratory and field-testing operations as part of which
managerial role?
A. Figurehea
d
B. Analytic
al
C. Monit
or
D. Visionar
y
E. Disseminat
or
In your figurehead role, you may show visitors around your company. In
general, you perform symbolic tasks that represent your organization.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
120. After a large chemical fire, Eric took responsibility publicly for the failure of
his employees to follow workplace safety standards, and indicated that
several of them had been placed on leave. Here, Eric was acting in a ______
role.
A. leadershi
p
B. negotiat
or
C. liaiso
n
D. authori
ty
E. entreprene
ur
In a role of leader, you are responsible for the actions of your subordinates,
since their successes and failures reflect on you. Your leadership is
expressed in your decisions about training, motivating, and disciplining
people.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
121. Two different project teams recently submitted proposals for very promising
ideas, but the budget will not allow both to go forward this year. Amanda is
making the tough decisions about which should be the focus this time, as a
part of her ______ role.
A. leadershi
p
B. disseminat
or
C. resource
allocator
D. negotiat
or
E. entreprene
ur
Because you'll never have enough time, money, and so on, you'll need to be
a resource allocator as a manager, setting priorities about use of resources.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
122. Colin takes notes at executive council meetings and prepares summaries to
present to middle managers and supervisors at a monthly meeting. This
task is part of a(n) _______ role.
A. disseminat
or
B. entreprene
ur
C. monit
or
D. leadershi
p
E. visionar
y
Workers complain they never know what's going on if a supervisor fails in
the role of disseminator. Managers need to constantly disseminate
important information to employees, as via e-mail and meetings.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
123. Jocelyn's staff is upset because they normally receive their paychecks or
direct deposits on Fridays and occasionally on Thursdays if there is a holiday.
Tomorrow is Friday, July 4, and the bank did not process payments today as
expected, so Jocelyn is on the phone trying to get the situation resolved as
part of which managerial role?
A. Disturbance
handler
B. Monit
or
C. Spokesperso
n
D. Negotiat
or
E. Resource
allocator
Unforeseen problems, from product defects to international currency crises,
require a manager to be a disturbance handler, fixing problems.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
124. Chemka is speaking at a press conference to discuss the company's plans to
close three underperforming branches after several years and several
rounds of changes in trying to keep them open. Chemka is performing the
_______ role.
A. disseminat
or
B. monit
or
C. liaiso
n
D. spokespers
on
E. figurehe
ad
You are expected, of course, to be a diplomat, to put the best face on the
activities of your work unit or organization to people outside it. This is the
informational role of spokesperson.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
125. To inspire innovation, Jinyuan encourages his employees to devote one
afternoon a month to work on pet projects, just to spend time in the lab
experimenting and thinking freely. He is acting in the ______ role.
A. entreprene
ur
B. disturbance
handler
C. resource
allocator
D. negotiat
or
E. liaiso
n
A good manager is expected to be an entrepreneur, to initiate and
encourage change and innovation.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
126. Armed with a stack of market research, Jalen, a marketing department
manager, is in the research and development manager's office attempting
to convince him to eliminate two features his engineers plan to add to a
product, and replace them with two others based on customer preference.
Jalen is operating in the ______ role.
A. entreprene
ur
B. resource
allocator
C. disturbance
handler
D. negotiat
or
E. liaiso
n
To be a manager is to be a continual negotiator, working with others inside
and outside the organization to accomplish your goals.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 3 Hard
Topic: Roles Managers Must Play Successfully
127. Jeremy Stoppelman and Russel Simmons, founders of Yelp, a website with
reviews of businesses, created a new type of business that did not exist
before their efforts. They would best be described as
A. business
developers.
B. inventor
s.
C. sole
proprietors.
D. entrepreneu
rs.
E. intrapreneu
rs.
Most small businesses originate with people like Stoppelman and Simmons.
They are the entrepreneurs, the people with the idea, the risk takers.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
128. _________ means taking risks to try to create a new enterprise.
A. Entrepreneurs
hip
B. Incorporati
on
C. Franchisin
g
D. Joint
venturing
E. Acquisitio
n
Entrepreneurship is the process of taking risks to try to create a new
enterprise.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
129. The defining difference between an entrepreneur and an intrapreneur is that
the latter
A. is the person responsible for funding the former with a startup
investment.
B. is working on multiple opportunities
simultaneously.
C. works within an existing organization, using its resources to exploit an
opportunity.
D. usually runs a small
business.
E. works in a team setting to develop an idea to
fruition.
An entrepreneur is someone who sees a new opportunity for a product or
service and launches a business to try to realize it. An intrapreneur is
someone who works inside an existing organization who sees an opportunity
for a product or service and mobilizes the organization's resources to try to
realize it.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
130. The development of Google News by Google employees experimenting with
ways to facilitate browsing news from several sources is an example of
A. business
intelligence.
B. intrapreneursh
ip.
C. business
invention.
D. corporate
design.
E. entrepreneursh
ip.
An example of an intrapreneur is Marissa Mayer of Google developing a
researcher's personal news reading program into Google News.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
131. The belief that you control your own destiny is called
A. internal locus of
control.
B. entrepreneursh
ip.
C. intrapreneursh
ip.
D. power
centering.
E. manifest
destiny.
Internal locus of control is the belief that you control your own destiny, that
external forces will have little influence.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
132. Research has shown that all of the following are characteristics of an
entrepreneur except which?
A. self-
confident
B. highly
experienced
C. belief in personal control of
destiny
D. high energy level and action
orientation
E. high tolerance for
ambiguity
An entrepreneur has a high need for achievement, a belief in personal
control of destiny, a high energy level and action orientation, a high
tolerance for ambiguity, and self-confidence and tolerance for risk.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
133. Which of the following is more characteristic of an entrepreneur than a
manager?
A. High need for
achievement
B. External locus of
control
C. Belief in personal control of
destiny
D. Motivated by organizational
rewards
E. Tolerance for
risk
More characteristic of entrepreneurs than managers are self-confidence and
tolerance for risk. Precisely because they are willing to take risks in the
pursuit of new opportunities and even risk personal financial failure,
entrepreneurs need the confidence to act decisively.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 2 Medium
Topic: The Entrepreneurial Spirit
134. After her divorce, Jillian had to go back to work. While she interviewed to
return to her previous accounting profession, she began a custom wedding
invitation business. Jillian would best be described as a(n)
A. motivated
entrepreneur.
B. necessity
entrepreneur.
C. opportunity
entrepreneur.
D. performance
entrepreneur.
E. chance
entrepreneur.
So-called necessity entrepreneurs are people such as laid-off corporate
workers, discharged military people, immigrants, and divorced homemakers
who suddenly must earn a living and are simply trying to replace lost
income. These make up about 11% of entrepreneurs.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 3 Hard
Topic: The Entrepreneurial Spirit
135. According to researcher Robert Katz, which of the following is one of three
principal skills acquired by experienced managers?
A. Intuiti
ve
B. Evaluati
ve
C. Huma
n
D. Comprehensi
ve
E. Coordinati
on
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills: technical, conceptual,
and human.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
136. ______ skills consist of the job-specific knowledge needed to perform well in
a specialized field.
A. Technic
al
B. Actio
n
C. Conceptu
al
D. Physic
al
E. Huma
n
Technical skills consist of the job-specific knowledge needed to perform well
in a specialized field.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
137. Marie recently became a managing partner at her law firm. Though her job
has changed, she still needs to have the necessary ______ skills to advise
and review the contracts of the real estate attorneys that she manages.
A. performan
ce
B. technic
al
C. conceptu
al
D. huma
n
E. physic
al
Technical skills consist of the job-specific knowledge needed to perform well
in a specialized field.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
138. The ability to think analytically is associated with ______ skills.
A. comprehensi
on
B. conceptu
al
C. huma
n
D. abstra
ct
E. intuiti
ve
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
139. Despite the appeal of the opportunity, Samantha decided to delay taking
her product to foreign markets because she felt that her current personnel
did not have enough international experience. She was exhibiting ______
skills.
A. comparati
ve
B. huma
n
C. intangib
le
D. conceptu
al
E. intuiti
ve
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
140. Conceptual skills are particularly important for ______ managers.
A. first-
line
B. function
al
C. to
p
D. middl
e
E. gener
al
Conceptual skills are particularly important for top managers, who must deal
with problems that are ambiguous but that could have far-reaching
consequences.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
141. ______ skills consist of the ability to work well in cooperation with other
people to get things done.
A. Suppo
rt
B. Conceptu
al
C. Person
al
D. Intuiti
ve
E. Huma
n
Human skills consist of the ability to work well in cooperation with other
people to get things done.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 1 Easy
Topic: The Skills Exceptional Managers Need
142. Tyler has coffee with one of his direct reports almost daily. He does this to
inquire in an informal way about progress on the job, and to provide
coaching and support, as well as appropriate congratulations for special
efforts. Tyler is exhibiting which type of managerial skill?
A. Cohesio
n
B. Conceptu
al
C. Intuiti
ve
D. Engageme
nt
E. Huma
n
Human skills consist of the ability to work well in cooperation with other
people to get things done. They include the ability to motivate, to inspire
trust, and to communicate with others.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 3 Hard
Topic: The Skills Exceptional Managers Need
143. Human skills are important for ________ managers.
A. to
p
B. function
al
C. first-
line
D. middl
e
E. all levels
of
Human skills, including the ability to motivate, to inspire trust, and to
communicate with others, are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
144. Which of the following is not a chief skill companies seek in top managers
today?
A. The ability to motivate and engage
others.
B. The ability to
communicate.
C. Work experience outside the United
States.
D. High energy levels to meet the demands of global travel and a
24/7 world.
E. The ability to give a wide range of orders
authoritatively.
Instead of someone who gives orders, companies seek top managers with
these chief skills: the ability to motivate and engage others, the ability to
communicate, work experience outside the United States, and high energy
levels to meet the demands of global travel and a 24/7 world.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
Essay Questions
145. Studying management can be helpful even before you become a manager.
List at least three of the rewards of studying management.
(1) You will understand how to deal with organizations from the outside. It
helps to understand how organizations work and how the people in them
make decisions. (2) You will understand how to relate to your supervisors.
Since most of us work in organizations and most of us have bosses, studying
management will enable you to understand the pressures managers deal
with and how they will best respond to you. (3) You will understand how to
interact with co-workers. Studying management can give you the
understanding of teams and teamwork, cultural differences, conflict and
stress, and negotiation and communication skills that will help you get along
with fellow employees. (4) You will understand how to manage yourself in
the workplace. Management courses give you the opportunity to realize
insights about yourself—your personality, emotions, values, perceptions,
needs, and goals. We help you build your skills in areas such as self-
management, listening, handling change, managing stress, avoiding
groupthink, and coping with organizational politics.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Level of Difficulty: 2 Medium
Topic: Management: What It Is, What Its Benefits Are
146. What is competitive advantage? Explain the importance of each of the four
areas in which an organization must stay ahead of its competitors.
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thus outperforming them.
This means an organization must stay ahead in four areas: customer
responsiveness, innovation, quality, and efficiency.
Being responsive to customers. The first law of business is: Take care of the
customer. Without customers—buyers, clients, consumers, shoppers, users,
patrons, guests, investors, or whatever they're called—sooner or later there
will be no organization.
Innovation is finding ways to deliver new or better goods or services.
Quality. If your organization is the only one of its kind, customers may put
up with products or services that are less than stellar. However, if you are
not a unique organization, which is more likely, customers will begin to buy
from the company with better quality for the same price.
Efficiency. In today's organizations, the emphasis is on efficiency: Companies
strive to produce goods or services as quickly as possible using as few
employees (and raw materials) as possible.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 2 Medium
Topic: Seven Challenges to Being an Exceptional Manager
147. One of the challenges for managers is managing personal happiness and life
goals. Explain why this is a challenge for managers. Discuss how you think
these ideas apply to you in the future.
Every person must consider whether his job (managerial or otherwise) helps
him or her reach his or her own happiness and goals. Many managers find
the job of management to be unfulfilling—they often feel they have to give
up too much of their personal lives because of the long hours or travel, or
they don't enjoy the constant activity that management entails. Also, many
managers feel caught in the middle between upper levels of management
and their employees. The student should offer an example of how this may
or may not affect her in the future.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look
forward to as a manager?
Level of Difficulty: 3 Hard
Topic: Seven Challenges to Being an Exceptional Manager
148. Identify and describe the four managerial functions. Give a specific example
of each.
Planning is setting goals and deciding how to achieve them. Organizing is
arranging tasks, people, and other resources to accomplish the work.
Leading is motivating, directing, and otherwise influencing people to work
hard to achieve the goals. Controlling is monitoring performance, comparing
it to goals, and taking corrective action as needed. The student should give
an example of each.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-03 What would I actually do-that is; what would be my four principal functions-
as a manager?
Level of Difficulty: 3 Hard
Topic: What Managers Do: The Four Principal Functions
149. List the three levels of management in the traditional pyramid. Give an
example of a task that a manager at each level might perform.
Managers may be classified into three levels: top, middle, and first-line.
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it. They
need to pay a lot of attention to the environment outside the organization,
being alert for long-run opportunities and problems and devising strategies
for dealing with them. Thus, executives at this level must be future oriented,
dealing with uncertain, highly competitive conditions.
Middle managers implement the policies and plans of the top managers
above them and supervise and coordinate the activities of the first-line
managers below them.
Following the plans of middle and top managers, first-line managers make
short-term operating decisions, directing the daily tasks of nonmanagerial
personnel.
AACSB: Analytic
Blooms: Apply
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up;
down; and sideways?
Level of Difficulty: 3 Hard
Topic: Pyramid Power: Levels and Areas of Management
150. List Mintzberg's findings about the nature of managerial work.
A manager relies more on verbal than on written communication.
A manager works long hours at an intense pace.
A manager's work is characterized by fragmentation, brevity, and variety.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Level of Difficulty: 1 Easy
Topic: Roles Managers Must Play Successfully
151. List the characteristics that most entrepreneurs have.
The characteristics that most entrepreneurs have include: high need for
achievement, belief in personal control of destiny, high energy level and
action orientation, high tolerance for ambiguity, and self-confidence and
tolerance for risk.
AACSB: Analytic
Blooms: Remember
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Level of Difficulty: 1 Easy
Topic: The Entrepreneurial Spirit
152. Define the three types of principal skills that managers need according to
Robert Katz. At which level of management is each skill most important?
Technical skills consist of job-specific knowledge needed to perform well in a
specialized field. Having the requisite technical skills seems to be most
important at the lower levels of management—that is, among first-line
managers.
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
Conceptual skills are particularly important for top managers, who must deal
with problems that are ambiguous but that could have far-reaching
consequences.
Human skills are the ability to work well with others to get things done.
These skills—the ability to motivate, to inspire trust, to communicate with
others—are necessary for managers of all levels.
AACSB: Analytic
Blooms: Understand
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Level of Difficulty: 2 Medium
Topic: The Skills Exceptional Managers Need
Chapter 01 The Exceptional Manager: What You Do, How You Do It
Answer Key
True / False Questions
1. (p. 4) Carol Bartz, CEO of Yahoo!, advises moving ahead quickly after a failure so
as not to lose momentum.
TRUE
Bartz's favorite motto is "fail fast-forward." "It's about not being afraid to fail," she
says, "and if you do, identify it quickly and move ahead fast so no momentum is
lost."
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
2. (p. 4) Exceptional managers have a gift that cannot be taught.
FALSE
Is being an exceptional manager a gift, like a musician having perfect pitch? Not
exactly. But in good part it may be an art. Fortunately, it is one that is teachable.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
3. (p. 5) Management includes integrating the work of people through planning,
organizing, leading, and controlling the organization's resources.
TRUE
Management is defined as (1) the pursuit of organizational goals efficiently and
effectively by (2) integrating the work of people through (3) planning, organizing,
leading, and controlling the organization's resources.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
4. (p. 5) To be efficient means to achieve results, to make the right decisions and to
successfully carry them out.
FALSE
To be efficient means to use resources—people, money, raw materials, and the
like—wisely and cost-effectively. To be effective means to achieve results, to
make the right decisions and to successfully carry them out so that they achieve
the organization's goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
5. (p. 5) Efficiency and effectiveness have the same meaning in management.
FALSE
To be efficient means to use resources—people, money, raw materials, and the
like—wisely and cost-effectively. To be effective means to achieve results, to
make the right decisions and to successfully carry them out so that they achieve
the organization's goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
6. (p. 5) Automated telephone systems are typically both very effective and very
efficient.
FALSE
We're all now accustomed to having our calls to companies for information and
customer support answered not by people but by automated answering systems.
Certainly this arrangement is efficient for the companies, since they no longer
need as many employees to answer the phones. But it's not effective if it leaves
us, the customers, fuming and less inclined to continue doing business.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
7. (p. 6) An effective manager's influence on the organization is multiplied beyond
the results achievable by just one person.
TRUE
In being a manager you have a multiplier effect: your influence on the
organization is multiplied far beyond the results that can be achieved by just one
person acting alone.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
8. (p. 6) Chesapeake Energy CEO Aubrey McClendon's $112 million in
compensation in 2008 is typical for CEOs in North America.
FALSE
The business press frequently reports on the astronomical earnings of top chief
executive officers such as Chesapeake Energy's CEO Aubrey McClendon, whose
2008 compensation was $112 million. However, this kind of huge payday isn't
common. Median compensation for CEOs in North America in 2008 was $2
million, according to a survey of 3,242 participating CEOs.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
9. (p. 7) One of the rewards of being a manager is that you can build a catalog of
successful products or services.
TRUE
There are many rewards—apart from those of money and status—to being a
manager. One of these is that you can build a catalog of successful products or
services. Every product or service you provide—the personal Eiffel Tower or
Empire State Building you build, as it were—becomes a monument to your
accomplishments.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
10. (p. 7) Studying management is likely to help you once you are in a manager role,
but is unlikely to be beneficial before then.
FALSE
There are several benefits of studying management that which you can use
before being a manager. You will better understand how to deal with
organizations from the outside, how to relate to your supervisors, how to interact
with co-workers, and how to manage yourself in the workplace.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
11. (p. 7) One of the payoffs of studying management includes understanding how
to deal with organizations as a customer.
TRUE
Studying management is likely to help you understand how to deal with
organizations from the outside. Since we all are in constant interaction with all
kinds of organizations, it helps to understand how they work and how the people
in them make decisions. Such knowledge may give you some defensive skills that
you can use in dealing with organizations from the outside, as a customer or
investor, for example.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
12. (p. 7) If you enjoy mentoring and helping others to grow, management is a great
job.
TRUE
According to productivity-improvement expert Odette Pollar, "If you truly like
people and enjoy mentoring and helping others to grow and thrive, management
is a great job."
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
13. (p. 8) Most people prefer to have a combination of high level of skill and low
level of challenge while at work.
FALSE
The ideal state that many people seek is an emotional zone somewhere between
boredom and anxiety, in the view of psychologist Mihaly Csikzentmihalyi.
Boredom, he says, may arise because skills and challenges are mismatched: You
are exercising your high level of skill in a job with a low level of challenge, such as
licking envelopes.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
14. (p. 8) Organizations need to stay ahead of their competition in their quality,
responsiveness, efficiency, and innovation.
TRUE
The first challenge of a manager is to manage for competitive advantage. This
means an organization must stay ahead in four areas: (1) being responsive to
customers, (2) innovation, (3) quality, and (4) efficiency.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
15. (p. 8) Competitive advantage is defined as finding ways to deliver new or better
goods or services.
FALSE
Finding ways to deliver new or better goods or services is called innovation.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
16. (p. 8) When managing for competitive advantage, the first "law" of business is
"take care of the shareholders."
FALSE
Responsiveness to the customer is part of managing for competitive advantage.
Here, the first law of business is: Take care of the customer. Without customers—
buyers, clients, consumers, shoppers, users, patrons, guests, investors, or
whatever they're called—sooner or later there will be no organization.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
17. (p. 8) Taking care of the customer applies equally well to non-profit and for-
profit businesses.
TRUE
Nonprofit organizations are well advised to be responsive to their "customers,"
too, whether they're called citizens, members, students, patients, voters, rate-
payers, or whatever, since they are the justification for the organizations'
existence.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
18. (p. 9) The decline in revenue in the newspaper industry is due to a sharp drop
in the number of people reading American newspapers.
FALSE
American newspapers are more widely read than ever before—72 million unique
visitors a month in 2009 versus 60 million two years earlier. The problem: Many
people aren't paying for news; they're getting it free online.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
19. (p. 9) Whereas a generation ago, organizations rewarded employees for their
efficiency, today the emphasis is on length of service.
FALSE
A generation ago, organizations rewarded employees for their length of service.
Today, however, the emphasis is on efficiency: Companies strive to produce goods
or services as quickly as possible using as few employees (and raw materials) as
possible.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
20. (p. 10) Despite continued immigration, the proportion of racial or ethnic groups
in the US is expected to be stable well into the next century.
FALSE
Today nearly one in six American workers is foreign-born, the highest proportion
since the 1920s. But greater changes are yet to come. By midcentury, the mix of
American racial or ethnic groups will change considerably, with the United States
becoming half (54%) racial or ethnic minority.
AACSB: Diversity
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
21. (p. 10) When he or she does not speak the local language, a manager should rely
on gestures and symbols since they have the same meaning to everyone
throughout the world.
FALSE
Gestures and symbols don't have the same meaning to everyone throughout the
world. For example, in Greece the hand-waving gesture commonly used in
America for goodbye is considered an insult.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
22. (p. 10) The global network of independently operating but interconnected
computers, linking hundreds of thousands of smaller networks around the world
is called the Hypernetwork.
FALSE
The Internet is the global network of independently operating but
interconnected computers, linking hundreds of thousands of smaller networks
around the world.
AACSB: Technology
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
23. (p. 10) E-commerce is the buying and selling of goods or services over computer
networks.
TRUE
E-commerce, or electronic commerce, is the buying and selling of goods or
services over computer networks.
AACSB: Technology
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
24. (p. 11) One reason e-business is so important is that the Internet dramatically
lowers the cost of communication.
TRUE
More important than e-commerce, the information technology has facilitated e-
business, using the Internet to facilitate every aspect of running a business. As
one article puts it, "at bottom, the Internet is a tool that dramatically lowers the
cost of communication. That means it can radically alter any industry or activity
that depends heavily on the flow of information."
AACSB: Technology
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
25. (p. 11) Text messages and documents transmitted over a computer network are
called cyber-messages.
FALSE
E-mail is the term for text messages and documents transmitted over a computer
network.
AACSB: Technology
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
26. (p. 11) A problem typically associated with interconnected databases on the
Internet is that they contain too little information.
FALSE
The Internet, with its huge, interconnected databases—computerized collections
of interrelated files—can overwhelm us with information, much of it useful,
much of it not.
AACSB: Technology
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
27. (p. 11) Project management software allows managers to plan and schedule the
people, costs, and resources to complete a project on time.
TRUE
Project management software is a program for planning and scheduling the
people, costs, and resources to complete a project on time.
AACSB: Technology
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
28. (p. 11) One advantage of e-business is that organizations and teams are no
longer as bound by time zones and locations.
TRUE
With computers and telecommunications technology, organizations and teams
become "virtual"; they are no longer as bound by time zones and locations.
AACSB: Technology
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
29. (p. 11) Telecommuting means working from home or remote locations using a
variety of information technologies.
TRUE
Telecommuting is working from home or remote locations using a variety of
information technologies.
AACSB: Technology
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
30. (p. 11) Meetings that are conducted via telecommuting use video and audio
links along with computers to let people in different locations see, hear, and talk
with one another.
FALSE
Meetings may be conducted via videoconferencing, using video and audio links
along with computers to let people in different locations see, hear, and talk with
one another.
AACSB: Technology
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
31. (p. 11) Collaborative computing involves using state-of-the-art computer
software and hardware to help people work better together.
TRUE
Collaborative computing, using state-of-the-art computer software and hardware,
will help people work better together.
AACSB: Technology
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
32. (p. 11) Intellectual management is the implementation of systems and practices
to increase the sharing of knowledge and information throughout an
organization.
FALSE
Knowledge management is the implementing of systems and practices to
increase the sharing of knowledge and information throughout an organization.
AACSB: Technology
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
33. (p. 12) In recent years, white-collar crime in the US has become very rare.
FALSE
Not since sociologist Edwin Sutherland invented the term "white-collar crime" in
the 1930s have so many top-level executives been hauled into court as during
recent years.
AACSB: Ethics
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
34. (p. 12) The Josephson Institute suggests a TEAM (Teach, Enforce, Advocate,
Model) approach to encourage good financial habits in children.
FALSE
The Josephson Institute suggests that parents can take a TEAM (Teach. Enforce.
Advocate. Model.) approach to help children learn the importance of honesty.
AACSB: Ethics
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
35. (p. 13) Unsustainable business practices resulted from a general notion that
natural resources are unlimited.
TRUE
Our economic system has brought prosperity, but it has also led to unsustainable
business practices because it has assumed that natural resources are limitless,
which they are not.
AACSB: Ethics
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
36. (p. 13) Some people simply don't find being a manager fulfilling because they
are caught between the bosses and the subordinates, or may even feel that they
lack respect.
TRUE
Many people simply don't find being a manager fulfilling. They may complain
that they have to go to too many meetings, that they can't do enough for their
employees, that they are caught in the middle between bosses and subordinates.
They may feel, at a time when Dilbert cartoons have created such an unflattering
portrayal of managers, that they lack respect.
AACSB: Ethics
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
37. (p. 13) One's experience in management is usually not affected by the
company's culture.
FALSE
Culture, or style, is indeed an important matter, because it affects your happiness
within an organization.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
38. (p. 14) The "management process" is the same as the "four management
functions."
TRUE
The management process can also be called the four management functions:
planning, organizing, leading, and controlling.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
39. (p. 15) When a manager is motivating others to work hard to achieve the
organization's goals, she is engaged in the management function of leading.
TRUE
Leading is defined as motivating, directing, and otherwise influencing people to
work hard to achieve the organization's goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
40. (p. 14) When Barrett, a college administrator, is determining which of several
degree programs his campus will offer, he is involved in the management
function of controlling.
FALSE
Planning is defined as setting goals and deciding how to achieve them. A college
is established for the purpose of educating students, and its present managers, or
administrators, must decide the best way to accomplish this. For example, they
must ask which of several possible degree programs should be offered.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
41. (p. 15) Organizing is the arranging of tasks, people, and other resources to
accomplish work.
TRUE
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
42. (p. 15) When Arturo revises the wait staff schedule to have more personnel
available during the busier dinner rush, hoping it will help with several service
complaints, he is engaged in controlling.
TRUE
Controlling is defined as monitoring performance, comparing it with goals, and
taking corrective action as needed.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
43. (p. 16) According to Peter Drucker, "knowledge workers" have very little
technical skill.
FALSE
The workplace of the future may resemble a symphony orchestra, famed
management theorist Peter Drucker said. Employees, especially so-called
knowledge workers—those who have a great deal of technical skills—can be
compared to concert musicians. Their managers can be seen as conductors.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
44. (p. 16) The traditional organizational model is shaped like a rectangle.
FALSE
The traditional organizational model is pyramid-like, where one leader sits at the
top, with layers of managers beneath.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
45. (p. 16) There are managers at three levels of an organization: top, middle, and
first-line.
TRUE
There are managers at three levels of an organization: top, middle, and first-line.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
46. (p. 17) First-line managers make long-term decisions about the overall direction
of the organization and establish the objectives, policies, and strategies for it.
FALSE
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
47. (p. 17) Yajuan is a branch manager to whom three other managers at her facility
report, so she would be termed a middle manager.
TRUE
Middle managers implement the policies and plans of the top managers above
them and supervise and coordinate the activities of the first-line managers below
them. In the for-profit world, the titles may be "division head," "plant manager,"
and "branch sales manager."
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
48. (p. 18) A first-line manager directs the daily tasks of nonmanagerial personnel.
TRUE
Following the plans of middle and top managers, first-line managers make short-
term operating decisions, directing the daily tasks of nonmanagerial personnel.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
49. (p. 19) A Director of Finance is a general manager.
FALSE
If your title is Vice President of Production, Director of Finance, or Administrator
for Human Resources, you are a functional manager. A functional manager is
responsible for just one organizational activity.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
50. (p. 19) A functional manager typically oversees several departments within an
organization.
FALSE
A general manager may oversee several departments, such as Production and
Finance and Human Resources. A general manager is responsible for several
organizational activities.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
51. (p. 19) The main purpose of a nonprofit organization is to offer services to some
clients.
TRUE
Nonprofit organizations' main purpose is to offer services to some clients, not to
make a profit.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
52. (p. 20) According to Mintzberg's research, managers rely more on verbal than
on written communication because of the time it takes to accomplish the latter.
TRUE
A manager relies more on verbal than on written communication. Writing letters,
memos, and reports takes time. Most managers in Mintzberg's research tended to
get and transmit information through telephone conversations and meetings.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
53. (p. 21) Since the 1960s research conducted by Mintzberg, the typical general
manager has reduced her work week to the traditional forty hours.
FALSE
According to Mintzberg's research, long hours at work are standard, with 50
hours being typical and up to 90 hours not unheard of. Since then, a 1999 survey
by John P. Kotter of the Harvard Business School found that the general managers
he studied worked just under 60 hours per week.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
54. (p. 21) Most managers accomplish their work during lengthy, uninterrupted
periods during the regular workday.
FALSE
The executive's work time has been characterized as "the interrupt-driven day"
and many managers—such as the late Mary Kay Ash, head of the Mary Kay
Cosmetics company—get up as early as 5 A.M. so that they will have a quiet
period in which to work undisturbed.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
55. (p. 21) Time and task management are major challenges for every manager.
TRUE
It is clear from Mintzberg's work that time and task management are major
challenges for every manager.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
56. (p. 22) According to Mintzberg, the three broad types of managerial roles
include interpersonal, informational, and leadership.
FALSE
From his observations and other research, Mintzberg concluded that managers
play three broad types of roles or "organized sets of behavior": interpersonal,
informational, and decisional.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
57. (p. 22) Multitasking and answering every email instantly are good ways to
improve executive functioning.
FALSE
Executive functioning includes the ability to focus your thoughts, control your
impulses, and avoid distractions. You can drive yourself crazy trying to multitask
and answer every e-mail message instantly. Or you can recognize your brain's
finite capacity for processing information.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
58. (p. 22) The spokesperson function is an example of the informational roles often
played by managers.
TRUE
In their three informational roles—as monitor, disseminator, and spokesperson
—managers receive and communicate information with other people inside and
outside the organization.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
59. (p. 22) In decisional managerial roles, a manager acts as figurehead, leader or
liaison.
FALSE
In their interpersonal roles, managers interact with people inside and outside
their work units. The three interpersonal roles include figurehead, leader, and
liaison activities.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
60. (p. 25) Entrepreneurship means taking risks to try to create a new enterprise.
TRUE
Entrepreneurship is the process of taking risks to try to create a new enterprise.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
61. (p. 25) Two types of entrepreneurship include the extrapreneur and the
intrapreneur.
FALSE
There are two types of entrepreneurship. An entrepreneur is someone who sees
a new opportunity for a product or service and launches a business to try to
realize it. An intrapreneur is someone who works inside an existing organization
who sees an opportunity for a product or service and mobilizes the
organization's resources to try to realize it.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
62. (p. 26) Successful entrepreneurial companies have been called "gazelles"
because of a characteristic they possess, namely an acute sensitivity to the
environment.
FALSE
Entrepreneurial companies have been called "gazelles" for the two attributes that
make them successful: speed and agility. "Gazelles have mastered the art of the
quick," says Alan Webber, founding editor of Fast Company magazine. "They have
internal approaches and fast decision-making approaches that let them move
with maximum agility in a fast-changing business environment."
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
63. (p. 27) Characteristic of both entrepreneurs and managers is a high need for
achievement and a belief in personal control of destiny.
TRUE
Both entrepreneurs and managers have a high need for achievement. Also
characteristic of both is a belief in personal control of destiny.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
64. (p. 27) Opportunity entrepreneurs are those who start their own business out of
a burning desire rather than because they lost a job.
TRUE
So-called opportunity entrepreneurs, about 89%, are those who start their own
business out of a burning desire rather than because they lost a job. Unlike
necessity types, they tend to be more ambitious and to start firms that can lead to
high-growth businesses.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
65. (p. 28) Researcher Robert Katz determined that through education and
experience managers acquire technical, conceptual, and innovation skills.
FALSE
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills—technical, conceptual, and
human.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
66. (p. 28) Having required technical skills is most important among first-line
managers.
TRUE
Having the requisite technical skills seems to be most important at the lower
levels of management—that is, among first-line managers.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
67. (p. 29) Human skills are critical for first level and middle managers, but not for
top managers.
FALSE
Human skills—the ability to motivate, to inspire trust, to communicate with
others—are necessary for managers of all levels.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
Multiple Choice Questions
68. (p. 4) One way to think of ______ is "the art of getting things done through
people."
A. supervision
B. motivation
C. management
D. leadership
E. strategy
Management, said one pioneer of management ideas, is "the art of getting things
done through people."
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
69. (p. 5) The pursuit of organizational goals efficiently and effectively by
integrating the work of people through planning, organizing, leading, and
controlling the organization's resources is called
A. employment.
B. career planning.
C. competitive advantage.
D. management.
E. strategic planning.
Management is defined as (1) the pursuit of organizational goals efficiently and
effectively by (2) integrating the work of people through (3) planning, organizing,
leading, and controlling the organization's resources.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
70. (p. 5) A group of people who work together to achieve some specific purpose
is/are called
A. managers.
B. a collaboration.
C. a team.
D. an organization.
E. a community.
An organization is a group of people who work together to achieve some specific
purpose.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
71. (p. 5) Elian, a manager at a busy restaurant, was very careful about how he
scheduled his personnel, making sure everyone was busy during work, and he
carefully watched his other costs too, getting competitive bids from suppliers on
a regular basis. Elian would best be described as a(n) _____ manager.
A. efficient
B. ethical
C. innovative
D. effective
E. micro
Efficiency is the means of attaining the organization's goals. To be efficient means
to use resources—people, money, raw materials, and the like—wisely and cost-
effectively.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
72. (p. 5) To be ______ as a manager means to make the right decisions and
successfully carry them out to achieve goals.
A. productive
B. ethical
C. efficient
D. effective
E. innovative
Effectiveness is the organization's ends, the goals. To be effective means to
achieve results, to make the right decisions and to successfully carry them out so
that they achieve the organization's goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
73. (p. 6) The _________ effect states that your influence on the organization is
multiplied far beyond the results that can be achieved by just one person acting
alone.
A. proliferation
B. multiplier
C. managerial
D. halo
E. additive
In being a manager you have a multiplier effect: Your influence on the
organization is multiplied far beyond the results that can be achieved by just one
person acting alone.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
74. (p. 6) According to a Fortune article, the scarcest, most valuable resource in
business is not financial capital but
A. renewable resources.
B. government support.
C. highly innovative technology.
D. a young workforce.
E. skilled effective managers.
Exceptional managers are in high demand. "The scarcest, most valuable resource
in business is no longer financial capital," says a Fortune article. "It's talent. If you
doubt that, just watch how hard companies are battling for the best people
Talent of every type is in short supply, but the greatest shortage of all is skilled,
effective managers."
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
75. (p. 7) Which of the following is the most likely payoff of studying management
as a discipline?
A. You will understand how to brand your organization.
B. You will understand how to relate to and interact with your supervisors and
co-workers.
C. You will understand how to manage to your family and close friends much
better.
D. You will understand how to deal with the media in a crisis.
E. You will understand how to advance your career without guilt.
A few of the payoffs of studying management as a discipline include,
understanding how to deal with organizations from the outside, understanding
how to relate to your supervisors and how to interact with co-workers, and you
will understand how to manage yourself in the workplace.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
76. (p. 7) Which of the following is NOT a reward for practicing management?
A. You can build a catalog of successful products or services.
B. You and your employees can experience a sense of accomplishment.
C. You can stretch your abilities and magnify your range.
D. You can be rewarded money and status for your efforts.
E. You can become exempt from many of society's ethical standards.
In addition to money and status, there are many rewards to being a manager
including experiencing a sense of accomplishment, stretching your abilities and
magnifying your range, and building a catalog of successful products or services.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
77. (p. 8) Which of the following is a challenge facing managers today?
A. Maintaining good records of what worked in the past
B. Dealing with a static, immobile environment
C. Staying ahead of competitors through corporate espionage
D. Managing to achieve the manager's own happiness and life goals
E. Collaborating with competitors
Seven challenges face any manager: You need to manage for competitive
advantage. You need to manage for diversity in race, ethnicity, gender, and so on.
You need to manage for the effects of globalization and of information technology.
You need to manage to maintain ethical standards, and manage for sustainability,
and finally for the achievement for your own happiness and life goals.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
78. (p. 8) Indra is a new manager for a software company, and she doesn't like to be
bored at work. But neither does she enjoy _____, such as when she had to explain
the new product her team is developing to the CEO and several board members.
As psychologist Csikzentmihalyi predicts, her ideal state would be an emotional
zone between the two.
A. overload
B. anxiety
C. immodesty
D. fear
E. pressure
The ideal state that many people seek is an emotional zone somewhere between
boredom and anxiety, in the view of psychologist Mihaly Csikzentmihalyi.
Boredom, he says, may arise because skills and challenges are mismatched: You
are exercising your high level of skill in a job with a low level of challenge, such as
licking envelopes. Anxiety arises when one has low levels of skill but a high level
of challenge, such as (for many people) suddenly being called upon to give a
rousing speech to strangers.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
79. (p. 8) The ability of an organization to produce goods or services more
effectively than its competitors is called its
A. competitive advantage.
B. quality.
C. efficiency.
D. innovation.
E. effectiveness.
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thereby outperforming them.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
80. (p. 8) In seeking competitive advantage, the first law of business is
A. take care of your shareholders.
B. take care of your stakeholders.
C. take care of the customer.
D. take care of the environment.
E. take care of your employees.
The first law of business is: Take care of the customer. Without customers—
buyers, clients, consumers, shoppers, users, patrons, guests, investors, or
whatever they're called—sooner or later there will be no organization. This is
known as responsiveness to customers, an important component of competitive
advantage.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
81. (p. 8) Which of the following is NOT an area in which an organization must stay
ahead of its competitors to achieve competitive advantage?
A. Market share growth
B. Being responsive to customers
C. Innovation
D. Quality
E. Efficiency
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thereby outperforming them. This
means an organization must stay ahead in four areas: (1) being responsive to
customers, (2) innovation, (3) quality, and (4) efficiency.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
82. (p. 8) Finding ways to deliver new or better goods or services is called
A. advancement.
B. streamlining.
C. innovation.
D. efficiency.
E. quality control.
Finding ways to deliver new or better goods or services is called innovation. No
organization, for-profit or nonprofit, can allow itself to become complacent—
especially when rivals are coming up with creative ideas. "Innovate or die" is an
important adage for any manager.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
83. (p. 8-9) Customers are likely to put up with ______ only if your organization is the
only one of its kind.
A. modest levels of innovation
B. computerized customer service
C. poor quality products
D. e-commerce transactions
E. lack of environmental policies
If your organization is the only one of its kind, customers may put up with
products or services that are less than stellar but only because they have no
choice. But if another organization comes along and offers a better-quality
product, you may find your company falling behind.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
84. (p. 9) Which of the following is the most likely reason for the decline in fortunes
of American newspapers, an inability to exploit their competitive advantage?
A. A poorer standard for news gathering
B. Relying too heavily on advertising, rather than customer subscriptions, for
revenue
C. Decline in newspaper readership over the last 70 years
D. Preference of customers for getting news in a digital format
E. An increase in salaries and material costs within the industry
How did newspapers lose their way? First, by giving away the product, and
second, by relying too much on advertising for revenue.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
85. (p. 10) By midcentury, the percentage of Hispanics (of any race) in the
population is expected to _____, and the percentage of non-Hispanic whites is
expected to _____.
A. stay the same; increase
B. increase; decrease
C. decrease; increase
D. increase; stay the same
E. stay the same; decrease
By midcentury, the mix of American racial or ethnic groups will change
considerably, with the United States becoming half (54%) racial or ethnic
minority. Non-Hispanic whites are projected to decrease from 66% of the
population in 2008 to 46% in 2050. African Americans will increase from 14% to
15%, Asians and Pacific Islanders from 5.1% to 9.2%, and Hispanics (who may be
of any race) from 15% to 30%.
AACSB: Diversity
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
86. (p. 10) The concept of a "flat" world means
A. employees are learning to suppress negative emotion in the workplace.
B. corporations are developing a preference for a new, flatter organizational
structure.
C. a recession now slows the economies of most nations simultaneously.
D. globalization has leveled the playing field for emerging economies.
E. business people are now more conservative in their approach to investment.
American firms have been going out into the world in a major way, even as the
world has been coming to us—leading to what New York Times columnist
Thomas Friedman has called, in The World Is Flat, a phenomenon in which
globalization has leveled (made "flat") the competitive playing fields between
industrial and emerging-market countries.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
87. (p. 11) Many advantages have been linked to e-business, but studies show that
employees are less productive when dealing with excessive ______ volume.
A. videoconferencing
B. meeting
C. email
D. telecommuting
E. collaborative computing
Studies show that employees lose valuable time and productivity when dealing
with excessive and unimportant e-mail volume and increasing amounts of cell-
phone spam.
AACSB: Technology
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
88. (p. 11) Mariana is in charge of planning and hosting the monthly all-company
meeting, and creating an updated webpage for employees as follow-up. She
gathers important happenings, new project information, changes to schedules or
other plans, and requests additional items from the staff. Holding these meetings
and creating the employee webpage are a form of
A. information management.
B. e-management.
C. project management.
D. knowledge management.
E. morale management.
Knowledge management is the implementing of systems and practices to
increase the sharing of knowledge and information throughout an organization.
AACSB: Technology
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
89. (p. 11) As a sales manager, you would have to decide how much you should
allow your sales rep to criticize the competition. This is an example of the
challenge of managing for
A. your own happiness.
B. globalization.
C. ethical standards.
D. sustainability.
E. diversity.
With the pressure to meet sales, production, and other targets, managers can find
themselves confronting ethical dilemmas. An example would be how much you
should allow your sales reps to knock the competition.
AACSB: Ethics
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
90. (p. 13) Economic development that meets the needs of the present without
compromising the ability of future generations to meet their own needs is known
as
A. environmentalism.
B. globalization.
C. ethics.
D. the bottom line.
E. sustainability.
Sustainability is defined as economic development that meets the needs of the
present without compromising the ability of future generations to meet their
own needs.
AACSB: Ethics
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
91. (p. 13) The company's culture most directly affects
A. a manager's happiness.
B. the number of competitors a firm has.
C. the number of products a company makes.
D. the amount charged for the firm's products or services.
E. the education of the workforce.
One's experience in management is greatly affected by the company's culture.
Culture, or style, is indeed an important matter, because it affects your happiness
within an organization.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
92. (p. 14) Which of the following is one of the four principal functions of
management, also known as the management process?
A. Planning
B. Scheduling
C. Motivating
D. Executing
E. Monitoring
Managers perform what is known as the management process, also called the
four management functions: planning, organizing, leading, and controlling.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
93. (p. 14) Setting goals and deciding how to achieve them is called
A. controlling.
B. managing.
C. planning.
D. organizing.
E. leading.
Planning is defined as setting goals and deciding how to achieve them.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
94. (p. 15) When administrators of a college are determining whether to hire more
full-time instructors or possibly more part-time ones, they are engaged in
A. planning.
B. organizing.
C. managing.
D. leading.
E. controlling.
Organizing is defined as arranging tasks, people, and other resources to
accomplish the work.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
95. (p. 15) Because the various groups that help a manager reach company goals
often have different needs and wants, resolving conflicts is an essential part of
which management function?
A. Planning
B. Managing
C. Organizing
D. Controlling
E. Leading
Leading is defined as motivating, directing, and otherwise influencing people to
work hard to achieve the organization's goals. The various groups involved often
have different needs and wants, so an essential part of leadership is resolving
conflicts.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
96. (p. 15) Monitoring performance and taking corrective action as needed is called
A. managing.
B. planning.
C. organizing.
D. improving.
E. controlling.
Controlling is defined as monitoring performance, comparing it with goals, and
taking corrective action as needed.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
97. (p. 15) Rosaria is concerned about a new report that shows the last production
run for which she was responsible had a high level of defects among the
products. She plans to delay the next run until the problem has been discovered
and fixed. Rosaria is engaged in which management function?
A. Repairing
B. Organizing
C. Monitoring
D. Controlling
E. Executing
Controlling is defined as monitoring performance, comparing it with goals, and
taking corrective action as needed.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
98. (p. 15) A general manager at a department store is giving an important
presentation to several departments to engage the whole staff in a new customer
retention effort beginning this month. This is an example of
A. planning.
B. organizing.
C. leading.
D. controlling.
E. marketing.
Leading is defined as motivating, directing, and otherwise influencing people to
work hard to achieve the organization's goals.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
99. (p. 16) Management theorist Peter Drucker compared the workplace of the
future to a
A. pyramid.
B. symphony orchestra.
C. flattened oval.
D. chess game.
E. warship.
The workplace of the future may resemble a symphony orchestra, famed
management theorist Peter Drucker said. Employees, especially so-called
knowledge workers—those who have a great deal of technical skills—can be
compared to concert musicians. Their managers can be seen as conductors. In
Drucker's analogy, musicians are divided into different sections (teams) based on
their instruments. The conductor's role is not to play each instrument better than
the musicians but to lead them all through the most effective performance of a
particular work.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
100. (p. 16) In the traditional management pyramid, managers are classified into
______ levels.
A. two
B. three
C. four
D. five
E. six
Managers may be classified into three levels—top, middle, and first-line.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
101. (p. 16) A chief operating officer is an example of what level of manager?
A. First-line
B. Top
C. Leadership
D. Middle
E. Merit
An organization's top managers tend to have titles such as "chief executive officer
(CEO)," "chief operating officer (COO)," "president," and "senior vice president."
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
102. (p. 16) Erica is a structural engineer who works for a large international firm.
She designs the concrete and steel structures that support most large buildings.
Because of her high level of technical skills, Erica is best referred to as a
A. knowledge worker.
B. blue-collar worker.
C. self-managed worker.
D. first-line worker.
E. first line manager.
A knowledge worker is one who has a great deal of technical skill such as Erica
has in this example.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
103. (p. 17) Managers who are future oriented, dealing with uncertain, highly
competitive conditions, and who stay alert to long-run opportunities and
problems are most likely to be
A. first-line managers.
B. functional managers.
C. middle managers.
D. general managers.
E. top managers.
Top managers make long-term decisions about the overall direction of the
organization. They need to pay a lot of attention to the environment outside the
organization, being alert for long-run opportunities and problems and devising
strategies for dealing with them. Thus, executives at this level must be future
oriented, dealing with uncertain, highly competitive conditions.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
104. (p. 17) Managers who implement the policies and plans determined at the
highest levels and coordinate the activities of lowest levels are called
A. executional managers.
B. first-line managers.
C. middle managers.
D. functional managers.
E. general managers.
Middle managers implement the policies and plans of the top managers above
them and supervise and coordinate the activities of the first-line managers below
them.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
105. (p. 17) Jerome is a clinic director running a facility in an urban area for a large
non-profit health organization. He receives most of his strategic direction from
the organization and supervises several department managers in his workplace.
Jerome is a
A. first-line manager.
B. middle manager.
C. facility manager.
D. functional manager.
E. coordination manager.
Middle managers implement the policies and plans of the top managers above
them and supervise and coordinate the activities of the first-line managers below
them. One title may be "clinic director" for example.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
106. (p. 18) Managers who make short-term operating decisions and direct the
daily tasks of the nonmanagerial employees are called
A. first-line managers.
B. middle managers.
C. general managers.
D. functional managers.
E. initial managers.
Following the plans of middle and top managers, first-line managers make short-
term operating decisions, directing the daily tasks of nonmanagerial personnel,
who are, of course, all those people who work directly at their jobs but don't
oversee the work of others.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
107. (p. 18) Esteban is an Accounts Payable supervisor for a large electronics
company, directing the work of four accounting clerks. He is a(n)
A. directional manager.
B. middle manager.
C. first-line manager.
D. general manager.
E. area manager.
Following the plans of middle and top managers, first-line managers make short-
term operating decisions, directing the daily tasks of nonmanagerial personnel,
who are, of course, all those people who work directly at their jobs but don't
oversee the work of others. Supervisor is the name often given to first-line
managers as a whole.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
108. (p. 19) A ______ manager is responsible for just one organizational activity.
A. specialist
B. first-line
C. singular
D. functional
E. top-level
A functional manager is responsible for just one organizational activity.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
109. (p. 19) Will is thinking about joining a professional organization for
accountants since he was recently hired at a prestigious firm and his dues will be
paid. This is an example of a(n) ______ organization.
A. for-profit
B. nonprofit
C. administrative
D. mutual-benefit
E. aid-based
Mutual-benefit organizations are voluntary collections of members—political
parties, farm cooperatives, labor unions, trade associations, and clubs—whose
purpose is to advance members' interests.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
110. (p. 19) The Salvation Army and the Red Cross are examples of which type of
organization?
A. For-profit
B. Nonprofit
C. Administrative
D. Mutual-benefit
E. Aid-based
Nonprofit organizations' purpose is to offer services to some clients, not to make
a profit. Examples of such organizations are hospitals, colleges, and social-
welfare agencies (the Salvation Army, the Red Cross).
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
111. (p. 19) Which type of nonprofit organization offers services to all clients within
its jurisdiction?
A. Administrative
B. Mutual-benefit
C. Aid-based
D. Authority
E. Commonweal
One particular type of nonprofit organization is called the commonweal
organization. Unlike nonprofit service organizations, which offer services to
some clients, commonweal organizations offer services to all clients within their
jurisdictions. Examples are the military services, the U.S. Postal Service, and your
local fire and police departments.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
112. (p. 19) The measure of success of a nonprofit organization is
A. the total revenue.
B. ROI.
C. the effectiveness of the services delivered.
D. the market share.
E. the number of services available.
In a nonprofit organization, although income and expenditures are very
important concerns, the measure of success is usually the effectiveness of the
services delivered.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
113. (p. 21) Which of the following statements about a manager's worklife is NOT
among the findings of management scholar Henry Mintzberg?
A. Managers work long hours.
B. Most managerial tasks require lengthy periods of time for completion.
C. Managers rely more on verbal than on written communication.
D. Managers work at an intense pace.
E. Managers' work is characterized by fragmentation.
Managers tend to work long hours at an intense pace; their work is characterized
by fragmentation, brevity, and variety; and they rely more on verbal than on
written communication. Only about a tenth of the managerial activities observed
by Mintzberg took more than an hour; about half were completed in under 9
minutes. Phone calls averaged 6 minutes, informal meetings 10 minutes, and
desk-work sessions 15 minutes.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
114. (p. 22) According to Mintzberg's work, which of the following is one of the
three broad types of roles that managers play?
A. Analytical
B. Interrogatory
C. Interdependent
D. Disciplinary
E. Informational
From his observations and other research, Mintzberg concluded that managers
play three broad types of roles or "organized sets of behavior": interpersonal,
informational, and decisional.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
115. (p. 22) Which of the following is an example of a decisional role that managers
play?
A. Leader
B. Spokesperson
C. Entrepreneur
D. Liaison
E. Monitor
In their decisional roles, managers use information to make decisions to solve
problems or take advantage of opportunities. The four decision-making roles are
entrepreneur, disturbance handler, resource allocator, and negotiator.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
116. (p. 23) In a ______ role, you must act like a politician, working with other people
outside your work unit and organization to develop alliances that will help you
achieve your organization's goals.
A. figurehead
B. negotiator
C. spokesperson
D. liaison
E. disseminator
In a liaison role, you must act like a politician, working with other people outside
your work unit and organization to develop alliances that will help you achieve
your organization's goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
117. (p. 23) Adam, the general manager of a mechanical engineering firm, was
welcoming potential partners from a large automobile corporation in Europe.
Before handing them off to his technical counterpart, he gave them an extensive
tour of his laboratory and field testing operations as part of which managerial
role?
A. Figurehead
B. Analytical
C. Monitor
D. Visionary
E. Disseminator
In your figurehead role, you may show visitors around your company. In general,
you perform symbolic tasks that represent your organization.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
118. (p. 23) After an accident, Jack publicly took responsibility for the failure of his
employees to follow workplace safety standards, and indicated that several of
them had been placed on leave. Here, Jack was acting in a ______ role.
A. leadership
B. negotiator
C. liaison
D. authority
E. entrepreneur
In a role of leader, you are responsible for the actions of your subordinates, since
their successes and failures reflect on you. Your leadership is expressed in your
decisions about training, motivating, and disciplining people.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
119. (p. 23) Because revenues are down significantly this year, Oscar is making
tough decisions about where to cut the budget. Oscar is performing the ______ role
as he does this task.
A. leadership
B. disseminator
C. resource allocator
D. negotiator
E. entrepreneur
Because you'll never have enough time, money, and so on, you'll need to be a
resource allocator, setting priorities about use of resources.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
120. (p. 23) Every day over breakfast, David, who is a general manager, scans the
Wall Street Journal for information relevant to his company's industry. Here,
David is performing the ______ role.
A. disseminator
B. entrepreneur
C. monitor
D. leadership
E. visionary
As a monitor, you should be constantly alert for useful information, such as that
gathered from newspaper stories about the competition.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
121. (p. 23) Alonzo's sales staff is upset because today they received their
paychecks and he had not clearly explained to them the changes in the bonus
structure that the organization implemented on the first of the month. This is a
failure in which managerial role?
A. Disseminator
B. Monitor
C. Spokesperson
D. Negotiator
E. Resource allocator
Workers complain they never know what's going on? That probably means their
supervisor failed in the role of disseminator. Managers need to constantly
disseminate important information to employees, as via e-mail and meetings.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
122. (p. 23) Eliza is assigned to hold a press conference that discusses the
company's plans to close three underperforming branches after several years
and several rounds of changes in trying to keep them open. Eliza is performing
the _______ role.
A. disseminator
B. monitor
C. liaison
D. spokesperson
E. figurehead
You are expected, of course, to be a diplomat, to put the best face on the activities
of your work unit or organization to people outside it. This is the informational
role of spokesperson.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
123. (p. 23) Amanda gives all of her employees one afternoon a month to work on
pet projects, just to spend time in the lab experimenting and thinking freely. She
is acting in the ______ role.
A. entrepreneur
B. disturbance handler
C. resource allocator
D. negotiator
E. liaison
A good manager is expected to be an entrepreneur, to initiate and encourage
change and innovation.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
124. (p. 23) Armed with a stack of market research, Jalen, a Marketing Department
manager, is in the Research and Development manager's office attempting to
convince him to eliminate two features his engineers have added to a product,
and replace them with two others based on customer preference. Jalen is
operating in the ______ role.
A. entrepreneur
B. resource allocator
C. disturbance handler
D. negotiator
E. liaison
To be a manager is to be a continual negotiator, working with others inside and
outside the organization to accomplish your goals.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
125. (p. 25) Jeremy Stoppelman and Russel Simmons, founders of Yelp, a Web site
with reviews of businesses, created a new type of business that did not exist
before their efforts. They would best be described as
A. business developers.
B. inventors.
C. sole proprietors.
D. entrepreneurs.
E. intrapreneurs.
Most small businesses originate with people like Stoppelman and Simmons. They
are the entrepreneurs, the people with the idea, the risk takers.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
126. (p. 25) __________ means taking risks to try to create a new enterprise.
A. Entrepreneurship
B. Incorporation
C. Franchising
D. Joint venturing
E. Acquisition
Entrepreneurship is the process of taking risks to try to create a new enterprise.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
127. (p. 25) The defining difference between an entrepreneur and an intrapreneur
is that the latter
A. is the person responsible for funding the former with a startup investment.
B. is working on multiple opportunities simultaneously.
C. works within an existing organization, using its resources to exploit an
opportunity.
D. usually runs a small business.
E. works in a team setting to develop an idea to fruition.
An entrepreneur is someone who sees a new opportunity for a product or service
and launches a business to try to realize it. An intrapreneur is someone who
works inside an existing organization who sees an opportunity for a product or
service and mobilizes the organization's resources to try to realize it.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
128. (p. 26) The development of Google News by Google employees experimenting
with artificial intelligence to group news from several sources is an example of
A. business intelligence.
B. intrapreneurship.
C. business invention.
D. corporate design.
E. entrepreneurship.
An example of an intrapreneur is Marissa Mayer of Google developing a
researcher's personal news reading program into Google News.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
129. (p. 27) The belief that you control your own destiny is called
A. internal locus of control.
B. entrepreneurship.
C. intrapreneurship.
D. power centered.
E. manifest destiny.
Internal locus of control is the belief that you control your own destiny, that
external forces will have little influence.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
130. (p. 27) Research has shown that all of the following are characteristics of an
entrepreneur EXCEPT which?
A. High need for achievement
B. High IQ
C. Belief in personal control of destiny
D. High energy level and action orientation
E. High tolerance for ambiguity
An entrepreneur has a high need for achievement, a belief in personal control of
destiny, a high energy level and action orientation, a high tolerance for ambiguity,
and self-confidence and tolerance for risk.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
131. (p. 27) Which of the following is more characteristic of an entrepreneur than a
manager?
A. High need for achievement
B. External locus of control
C. Belief in personal control of destiny
D. Motivated by organizational rewards
E. Tolerance for risk
More characteristic of entrepreneurs than managers are self-confidence and
tolerance for risk. Precisely because they are willing to take risks in the pursuit of
new opportunities—indeed, even risk personal financial failure—entrepreneurs
need the confidence to act decisively.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
132. (p. 27) An entrepreneur who starts her own business because of a life change,
such as a layoff or divorce, that requires finding a new source of income is known
as a(n)
A. necessity entrepreneur.
B. motivated entrepreneur.
C. opportunity entrepreneur.
D. need-driven entrepreneur.
E. chance entrepreneur.
So-called necessity entrepreneurs are people such as laid-off corporate workers,
discharged military people, immigrants, and divorced homemakers who
suddenly must earn a living and are simply trying to replace lost income and are
hoping a job comes along. These make up about 11% of entrepreneurs.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
133. (p. 28) According to researcher Robert Katz, which of the following is a
principal skill acquired by experienced managers?
A. Intuitive
B. Evaluative
C. Human
D. Comprehensive
E. Coordination
In the mid-1970s, researcher Robert Katz found that through education and
experience managers acquire three principal skills—technical, conceptual, and
human.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
134. (p. 28) ______ skills consist of the job-specific knowledge needed to perform
well in a specialized field.
A. Technical
B. Action
C. Conceptual
D. Physical
E. Human
Technical skills consist of the job-specific knowledge needed to perform well in a
specialized field.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
135. (p. 28) Adam, a managing partner of a law firm, needs to have ______ skills to
advise and review the work of the patent attorneys that he manages.
A. performance
B. technical
C. conceptual
D. human
E. physical
Technical skills consist of the job-specific knowledge needed to perform well in a
specialized field.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
136. (p. 29) The ability to think analytically is associated with ______ skills.
A. comprehension
B. conceptual
C. human
D. abstract
E. intuitive
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
137. (p. 29) After careful consideration, Hayley decided to forego an opportunity to
take her product to international markets for the time being, because she felt that
her personnel did not have enough international experience. She was exhibiting
______ skills.
A. comparative
B. conceptual
C. human
D. intangible
E. intuitive
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
138. (p. 29) Conceptual skills are particularly important for ______ managers.
A. first-line
B. functional
C. middle
D. top
E. general
Conceptual skills are particularly important for top managers, who must deal
with problems that are ambiguous but that could have far-reaching
consequences.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
139. (p. 29) ______ skills consist of the ability to work well in cooperation with other
people to get things done.
A. Support
B. Conceptual
C. Human
D. Personal
E. Intuitive
Human skills consist of the ability to work well in cooperation with other people
to get things done.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
140. (p. 29) Samantha regularly tries to have lunch with each of her direct reports.
She asks about their successes and struggles, and tries to provide informal
coaching and support, as well as appropriate congratulations for their efforts.
Samantha is exhibiting which type of skill?
A. Cohesion
B. Conceptual
C. Human
D. Intuitive
E. Engagement
Human skills consist of the ability to work well in cooperation with other people
to get things done. These skills include the ability to motivate, to inspire trust,
and to communicate with others.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
141. (p. 29) Human skills are important for ________ managers.
A. top
B. functional
C. first-line
D. middle
E. all levels of
Human skills—the ability to motivate, to inspire trust, to communicate with
others—are necessary for managers of all levels.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
142. (p. 29) Which of the following is NOT a chief skill companies seek in top
managers today?
A. The ability to motivate and engage others
B. The ability to communicate
C. Work experience outside the U.S.
D. High energy levels to meet the demands of global travel and a 24/7 world
E. The ability to give a wide range of orders effectively
Instead of someone who gives orders, companies seek top managers with these
chief skills: the ability to motivate and engage others, the ability to communicate,
work experience outside the United States, and high energy levels to meet the
demands of global travel and a 24/7 world.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-07 To be a terrific manager; what skills should I cultivate?
Topic: The Skills Exceptional Managers Need
Essay Questions
143. (p. 7) Studying management can be helpful even before you become a
manager. List at least three of the rewards of studying management.
(1) You will understand how to deal with organizations from the outside. It helps
to understand how organizations work and how the people in them make
decisions. (2) You will understand how to relate to your supervisors. Since most
of us work in organizations and most of us have bosses, studying management
will enable you to understand the pressures managers deal with and how they
will best respond to you. (3) You will understand how to interact with co-
workers. Studying management can give you the understanding of teams and
teamwork, cultural differences, conflict and stress, and negotiation and
communication skills that will help you get along with fellow employees. (4) You
will understand how to manage yourself in the workplace. Management courses
give you the opportunity to realize insights about yourself—your personality,
emotions, values, perceptions, needs, and goals. We help you build your skills in
areas such as self-management, listening, handling change, managing stress,
avoiding groupthink, and coping with organizational politics.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-01 What are the rewards of being an exceptional manager?
Topic: Management: What It Is, What Its Benefits Are
144. (p. 8-9) What is competitive advantage? Explain the importance of each of the
four areas in which an organization must stay ahead of its competitors.
Competitive advantage is the ability of an organization to produce goods or
services more effectively than competitors do, thus outperforming them. This
means an organization must stay ahead in four areas: customer responsiveness,
innovation, quality, and efficiency.
Being responsive to customers. The first law of business is: Take care of the
customer. Without customers—buyers, clients, consumers, shoppers, users,
patrons, guests, investors, or whatever they're called—sooner or later there will
be no organization.
Innovation is finding ways to deliver new or better goods or services.
Quality. If your organization is the only one of its kind, customers may put up
with products or services that are less than stellar. However, if you are not a
unique organization, which is more likely, customers will begin to buy from the
company with better quality for the same price.
Efficiency. In today's organizations, the emphasis is on efficiency: Companies
strive to produce goods or services as quickly as possible using as few employees
(and raw materials) as possible.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
145. (p. 13) One of the challenges for managers is managing personal happiness
and life goals. Explain why this is a challenge for managers. Discuss how you
think these ideas apply to you in the future.
Every person must consider whether his job (managerial or otherwise) helps
him or her reach his or her own happiness and goals. Many managers find the job
of management to be unfulfilling - they often feel they have to give up too much of
their personal lives because of the long hours or travel, or they don't enjoy the
constant activity that management entails. Also, many managers feel caught in
the middle between upper levels of management and their employees. The
student should offer an example of how this may or may not affect her in the
future.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-02 Challenges can make one feel alive. What are seven challenges I could look forward to as a
manager?
Topic: Seven Challenges to Being an Exceptional Manager
146. (p. 14-15) Identify and describe the four managerial functions. Give a specific
example of each.
Planning is setting goals and deciding how to achieve them. Organizing is
arranging tasks, people, and other resources to accomplish the work. Leading is
motivating, directing, and otherwise influencing people to work hard to achieve
the goals. Controlling is monitoring performance, comparing it to goals, and
taking corrective action as needed. The student should give an example of each.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-03 What would I actually do-- that is; what would be my four principal functions-- as a manager?
Topic: What Managers Do: The Four Principal Functions
147. (p. 16-18) List the three levels of management in the traditional pyramid. Give
an example of a task that a manager at each level might perform.
Managers may be classified into three levels—top, middle, and first-line.
Top managers make long-term decisions about the overall direction of the
organization and establish the objectives, policies, and strategies for it. They
need to pay a lot of attention to the environment outside the organization, being
alert for long-run opportunities and problems and devising strategies for dealing
with them. Thus, executives at this level must be future oriented, dealing with
uncertain, highly competitive conditions.
Middle managers implement the policies and plans of the top managers above
them and supervise and coordinate the activities of the first-line managers below
them.
Following the plans of middle and top managers, first-line managers make short-
term operating decisions, directing the daily tasks of nonmanagerial personnel.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 01-04 What are the levels and areas of management I need to know to move up; down; and sideways?
Topic: Pyramid Power: Levels & Areas of Management
148. (p. 20-21) List Mintzberg's findings about the nature of managerial work.
A manager relies more on verbal than on written communication.
A manager works long hours at an intense pace.
A manager's work is characterized by fragmentation, brevity, and variety.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-05 To be an exceptional manager; what roles must I play successfully?
Topic: Roles Managers Must Play Successfully
149. (p. 27) List the characteristics that most entrepreneurs have.
The characteristics that most entrepreneurs have include: high need for
achievement, belief in personal control of destiny, high energy level and action
orientation, high tolerance for ambiguity, and self-confidence and tolerance for
risk.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 01-06 Do I have what it takes to be an entrepreneur?
Topic: The Entrepreneurial Spirit
150. (p. 28-29) Define the three types of principal skills that managers need
according to Robert Katz. At which level of management is each skill most
important?
Technical skills consist of job-specific knowledge needed to perform well in a
specialized field. Having the requisite technical skills seems to be most important
at the lower levels of management—that is, among first-line managers.
Conceptual skills consist of the ability to think analytically, to visualize an
organization as a whole and understand how the parts work together. Conceptual
skills are particularly important for top managers, who must deal with problems
that are ambiguous but that could have far-reaching consequences.
Human skills are the ability to work well with others to get things done. These
skills—the ability to motivate, to inspire trust, to communicate with others—are
necessary for managers of all levels.
Chapter 04
Global Management: Managing Across Borders
True / False Questions
1. Becoming a world citizen includes learning how not to be an "ugly American".
True False
2. Among cultural patterns of which one should be aware is the tradition of
businessmen asking about the wives of all business associates in Afghanistan.
True False
3. Globalization is the elimination of all trade barriers worldwide.
True False
4. Air travel and electronic media have made the global village phenomenon
possible.
True False
5. The term "global village" refers to the tendency for various cultural groups to
cluster in small pods throughout the world.
True False
6. Great communications systems have been a hallmark of great civilizations.
True False
7. "E-commerce" refers to the buying and selling of products and services
through computer networks.
True False
8. The term "global economy" refers to the heightened economic regulation of
many national markets as they protect themselves from one another.
True False
9. The term "global economy" refers to worldwide conditions by which goods,
people, and money can move more freely.
True False
10. The global economy has had a revitalizing effect on some parts of the United
States.
True False
11. Among the negative effects of global interdependency are outsourcing and
higher-priced goods.
True False
12. Mergers have surged in the past 20 years because many industries are not
suited to being midsize or small.
True False
13. The Internet has made it more difficult for small firms to get started because
now everyone must compete on a global scale.
True False
14. One advantage of small companies over large ones is the former's ability to
change direction faster.
True False
15. Bay-Traders are those who trade seafood from the Chesapeake Bay for other
goods rather than selling it on the open market.
True False
16. The recent recession has caused an increasing number of Americans to look
for work overseas.
True False
17. A multinational corporation is a nonprofit organization with operations in
several countries.
True False
18. The International Red Cross is an example of a multinational organization.
True False
19. Smart phones, e-mail, and videoconferencing have all but eliminated the need
for international business travel.
True False
20. Unless you work outside of the U.S., international management is likely to
have little relevance during your career.
America the world will assuredly come to you. That, in a nutshell, is why you
need to learn about international management. While working for a U.S.
company you may have to deal with foreign customers. Or you may have to work
with a foreign company in some sort of joint venture. Or while working for an
American company you may have to purchase important components, raw
materials, or services from a foreign supplier.
True False
21. Successful international managers are polycentric rather than ethnocentric or
geocentric.
True False
22. Managers who take the view that native managers in foreign offices best
understand native personnel and practices, and so the home office should leave
them alone, are called polycentric managers.
True False
23. Ethnocentric policies have been linked to recruiting difficulties and high
turnover.
True False
24. Polycentric managers accept that there are differences and similarities
between home and foreign personnel and practices and that they should use
whatever techniques are most effective.
True False
25. Ethnocentrism is a form of parochialism.
True False
26. A parochial manager is able to consider decisions and events from a variety of
viewpoints.
True False
27. Two of the reasons companies expand internationally are to take advantage
of the availability of suppliers, or to charge tariffs or impose import quotas.
True False
28. The reasons that companies expand internationally all have to do with
making or saving money.
True False
29. Maquiladoras are manufacturing plants allowed to operate in South and
Central America with special privileges in return for employing citizens in these
countries.
True False
30. Deglobalization is a trend to move production back to the U.S. over fears
about geopolitics or energy prices.
True False
31. A tariff is a limitation on the numbers of products allowed into a country,
imposed by its government to protect domestic industries.
True False
32. One way to avoid a tariff is to create a subsidiary to produce the product in
the foreign country imposing that tariff.
True False
33. Joint ventures have a lower level of risk than franchising.
True False
34. A wholly-owned subsidiary is the global expansion strategy with the highest
risk and investment.
True False
35. When U.S. airlines use other U.S. companies to perform their aircraft
maintenance functions it is known as outsourcing.
True False
36. Global outsourcing is defined as using suppliers outside the home country to
provide labor, goods, or services.
True False
37. If you can describe a job precisely, or write rules for doing it, it is protected
against offshoring.
True False
38. Jobs that requires face-to-face or physical contact, or those that require
recognition of complex patterns, are unlikely to be offshored.
True False
39. Countertrading refers to a company producing goods domestically and selling
them outside the company.
True False
40. As of 2009, the U.S. was the world's top exporter.
True False
41. If a country's currency drops dramatically and it is unable to import the
goods it needs, then an exporter who trades with that country may turn to
countertrading.
True False
42. When Dupont agrees to let a Brazilian company make its product Teflon, the
non-stick coating, for a fee it is called franchising.
True False
43. If The Gap provides the use of its name plus its operating know-how to
companies in Turkey in return for an upfront fee plus a percentage of the profits,
The Gap would be participating in franchising.
True False
44. General Motors working with Shanghai Automotive Industry Group to build
Buicks in China is an example of a strategic alliance.
True False
45. A foreign subsidiary that is totally owned and controlled by an organization is
called a multinational.
True False
46. A greenfield venture is a foreign subsidiary created to exploit previously
untapped natural resources in another country.
True False
47. Free trade is the movement of goods and services among nations without
political or economic obstruction.
True False
48. Trade protectionism is a term for government measures that promote and
preserve free trade globally.
True False
49. The U.S. exports more to China than to any other nation.
True False
50. An import quota is a trade barrier in the form of a customs duty, or tax, levied
mainly on imports.
True False
51. A revenue tariff is designed to protect domestic products from foreign
imports by raising the price of the latter.
True False
52. Dumping is the practice of a foreign company exporting products abroad at a
lower price than the price in the home market—or even below the costs of
production—in order to drive down the price of the domestic product.
True False
53. Cuban cigars and sugar are not allowed to be imported into the U.S. because
of a trade embargo.
True False
54. Tariffs are common today and still growing in number since they have a long
history of protecting jobs in this country.
True False
55. The organization that assists in smoothing the flow of money between
nations is the World Bank.
True False
56. The General Agreement on Tariffs and Trade (GATT) is expected to supersede
the WTO in the near future.
True False
57. The International Monetary Fund assisted Asian countries with loans in the
late 1990s when they were suffering a monetary crisis.
True False
58. The rate at which one country's currency can be swapped for another
country's currency is called the interchange rate.
True False
59. An example of a trading bloc is the European Union.
True False
60. Canada is part of NAFTA.
True False
61. Several countries of the EU now share a single currency.
True False
62. The Mercosur is comprised of countries in southeast Asia.
True False
63. The purpose of granting "most favored nation" status to another country is to
promote tourism.
True False
64. In China, it is permissible for office colleagues to inquire about the size of
your apartment and your salary.
True False
65. Most of what we know about our native culture we have learned through
formal education.
True False
66. Power distance refers to how loosely or tightly people are socially bonded.
True False
67. The U.S. is low on the dimension of uncertainty avoidance.
True False
68. The GLOBE project is a large, ongoingƒ effort to find technological
improvements to assist world trade.
True False
69. The GLOBE cultural dimension that examines the extent to which a society
should minimize gender discrimination and role inequalities is known as gender
egalitarianism.
True False
70. Knowing the cultural tendencies of foreign business partners and
competitors can give you a strategic competitive advantage.
True False
71. Arabs prefer a larger interpersonal space when communicating than
Americans.
True False
72. In polychronic time, time is viewed as being flexible and multidimensional.
True False
73. The religion with the most followers worldwide is Hinduism.
True False
74. Turnover rates are higher among managers returning from overseas
assignments than for those who did not go abroad.
True False
Multiple Choice Questions
75. Which of the following is a way to become a world citizen?
A. Dress comfortably and casually, so you are ready for any activity.
B. To gain an early upper hand, be very vocal and assertive.
C. Be and think globally.
D. Speak English at all times since it is the world's language.
E. Learn rituals of respect.
76. The trend of the world economy toward becoming a more interdependent
system is called
A. international cooperation.
B. globalization.
C. world partnership.
D. economic defragmentation.
E. international unification.
77. The earliest forms of communication, the hallmark of great civilizations, were
based on
A. personal relationships.
B. technology.
C. transportation.
D. warfare.
E. agriculture.
78. Which form of technology was exploding when the notion of a "global village"
was first developed?
A. newspapers
B. telephones
C. television
D. cell phones
E. the Internet
79. Which of the following is an event that helped spur the inception of the global
economy?
A. the opening of Asian markets to foreign investors
B. improved race relations worldwide
C. the industrial revolution
D. the invention of the Internet
E. the increasing regulation of economies across the world
80. Which of the following is a negative effect for the U.S. of global economic
interdependency?
A. decreased economic activity
B. poorer quality goods
C. lower standards of living
D. loss of well-paying jobs
E. more expensive products
81. According to technology philosopher Nicholas Negroponte, the global market
driven by electronic information results in an increase of minifirms and
A. multinational corporations.
B. unstable governments.
C. nonprofit organizations.
D. intercorporate conflict.
E. megamergers.
82. Leah runs a small handmade custom card business, and has recently put up a
website. What advantage does her business have over larger competitors?
A. It has greater access to capital.
B. It has superior distribution.
C. It has more access to young talent.
D. It can change direction quicker.
E. It has well-defined bureaucratic systems.
83. According to management recruiters, ______ demonstrates independence,
resourcefulness, and entrepreneurship to potential employers.
A. importing goods from another country
B. foreign work experience
C. holding school leadership positions
D. speaking a second language
E. studying the fine arts
84. Estevez- Richmond, Inc. is a large civil engineering firm with operations in
the U.S., Mexico, Costa Rica and Guatemala. The company is a
A. megamerger.
B. multinational organization.
C. global organization.
D. multiregional firm.
E. multinational corporation.
85. Great Challenge is a nonprofit organization that assists several African
nations with large infrastructure development projects. Great Challenge is a(n)
A. multinational corporation.
B. global aid firm.
C. international philanthrophy.
D. multinational organization.
E. world charity.
86. The World Health Organization is an example of a
A. multinational organization.
B. multigovernment organization.
C. international social corporation.
D. multinational corporation.
E. global philanthropy.
87. __________ managers accept that there are differences and similarities between
home and foreign personnel and practices and that they should use whatever
techniques are most effective.
A. Expatriate
B. Ethnocentric
C. Geocentric
D. Polycentric
E. Global
88. Holly is a seasoned American manager, currently working in South Korea. She
has noticed that some of her management techniques work well in her overseas
position, but sometimes she finds it more effective to defer to the practices of her
Korean counterparts. Holly can be described as a(n) ______ manager.
A. parochial
B. ethnocentric
C. expatriate
D. polycentric
E. geocentric
89. A polycentric manager believes that
A. organizations should maximize the number of managers from different
countries in foreign operations.
B. her country and culture are superior.
C. managers in foreign countries should follow corporate procedures.
D. native managers in foreign offices best understand native personnel and
practices.
E. managers in foreign countries should use whatever techniques are most
effective.
90. It is rare for Jason to deviate from the practices he has always used as a U.S.
manager, even though he is now working at an African subsidiary. He says, to use
his words, that he is "just ensuring the job gets done right". Jason is most likely
a(n) ______ manager.
A. ethnocentric
B. concentric
C. prejudicial
D. polycentric
E. geocentric
91. Ethnocentrism among international managers has been linked to
A. higher performance by foreign subsidiaries.
B. lower turnover among employees in foreign subsidiaries.
C. fewer lawsuits over personnel policies within foreign subsidiaries.
D. recruitment difficulties for foreign subsidiaries.
E. poor quality products from foreign subsidiaries.
92. A narrow view in which people see things solely through their own
perspective is known as
A. concentrism.
B. polycentrism.
C. geocentrism.
D. expatriatism.
E. parochialism.
93. Which of the following is a primary reason that companies expand
internationally?
A. political expediency
B. higher tariffs
C. more diverse employees
D. prevention of counterfeiting
E. lower labor costs
94. Sport Fit, Inc., an American corporation, designs and manufactures men's and
women's undergarments for athletic activities. It has recently begun to
manufacture at a plant in Mexico, thanks to the inexpensive labor there and
various tax breaks from the Mexican government. Sport Fit is
A. repatriating.
B. using a maquiladora.
C. countertrading.
D. franchising.
E. licensing.
95. Carlie runs a successful jewelry store online. She loves designing and
marketing the jewelry and she managers others who do the production, but the
shipping has become a real problem. She decided to contract with a shipping
company to handle this logistical part of her business. Carlie is
A. countertrading.
B. franchising.
C. outsourcing.
D. licensing.
E. privatizing.
96. When a company uses a supplier outside itself to provide goods and services,
it is
A. outsourcing.
B. countertrading.
C. franchising.
D. licensing.
E. privatizing.
97. Cole purchases handcrafted marble containers and decorator pieces in India
and brings them to the U.S. to sell in his retail store. He is involved in
A. outsourcing.
B. countertrading.
C. importing.
D. franchising.
E. exporting.
98. A company that is producing goods domestically and sells them outside the
country is involved in
A. countertrading.
B. outsourcing.
C. importing.
D. exporting.
E. franchising.
99. A company that barters goods for other goods is involved in
A. outsourcing.
B. countertrading.
C. importing.
D. exporting.
E. franchising.
100. Tricolor Products, a textiles company in the U.S., normally exported much of
its product to Greece. Since the financial crisis in that country, many of its
customers were unable to import at normal levels, so Tricolor resorted to
bartering for some of these companies' finished goods, which it then resold in the
United States. Tricolor is involved in
A. importing.
B. franchising.
C. reexporting.
D. outsourcing.
E. countertrading.
101. A company allows a foreign firm to pay it a fee to make or distribute the first
company's product or service. This is called
A. outsourcing.
B. franchising.
C. licensing.
D. countertrading.
E. a joint venture.
102. China does not allow foreign car manufacturers to sell vehicles
independently in its country but instead requires them to partner with a Chinese
company. This type of partnership is known as a
A. franchise agreement.
B. countertrade.
C. joint venture.
D. maquiladora.
E. greenfield venture.
103. A U.S. company agrees with a foreign company to start a new enterprise
together in a foreign country, sharing the risks and the rewards. This is called a
A. countertrade.
B. greenfield venture.
C. wholly owned subsidiary.
D. strategic alliance.
E. maquiladora.
104. GO Sun was a small solar research company in Colorado. It was recently
purchased by a much larger alternative energy firm in Germany. Go Sun is now a
______ of the German corporation.
A. maquiladora
B. strategic ally
C. wholly owned subsidiary
D. greenfield venture
E. licensee
105. Eli Lilly has agreed to let a South African company manufacture several of
Eli Lilly's diabetes drugs and pay Eli Lilly a fee to distribute the drugs with a
different brand name in South Africa. Eli Lilly is engaging in
A. licensing.
B. franchising.
C. countertrading.
D. a strategic alliance.
E. a greenfield venture.
106. Pizza Hut provides the use of its name plus operating know-how to
companies in Costa Rica in return for a fee plus a percentage of profits. Pizza Hut
is
A. exporting.
B. franchising.
C. countertrading.
D. involved in a strategic alliance.
E. involved in a greenfield venture.
107. The movement of goods and services among nations without political or
economic obstruction is called
A. trade policy.
B. free trade.
C. trade protectionism.
D. privatization.
E. trade embargo.
108. When a government uses measures like tariffs and import quotas, it is
called
A. ethnocentrism.
B. free trade.
C. a trade bloc.
D. an embargo.
E. trade protectionism.
109. Which of the following is a form of trade protectionism?
A. a trade bloc
B. a countertrade
C. a revenue quota
D. an embargo
E. outsourcing
110. The EU has recently agreed to cut the taxes it charges on bananas imported
from Central and South America. This tax is a type of
A. embargo.
B. tariff.
C. import quota.
D. predatory selling.
E. boycott.
111. Korean has a complete ban on beef and beef products imported from
Canada. This is an example of a(n)
A. revenue tariff.
B. boycott.
C. embargo.
D. protective tariff.
E. import quota.
112. __________ is the practice of a foreign company exporting products abroad at a
lower price than the price in the home market—or even below the costs of
production—in order to drive down the price of the domestic product.
A. Export crashing
B. Dumping
C. Predatory selling
D. Loss transaction
E. Alien advantage
113. A duty imposed on imported goods designed simply to raise money for the
government in known as a(n)
A. protective tariff.
B. income quota.
C. income embargo.
D. revenue tariff.
E. import quota.
114. Wheat producers in the U.S. claim that the Canadian Wheat Board is selling
wheat imported into the U.S. at unreasonably low prices and they fear depression
of their own prices. The U.S. producers are accusing the Canadians of
A. creating an embargo.
B. unfair foreign advantage.
C. export crashing.
D. loss transactions.
E. dumping.
115. Import quotas are designed to prevent
A. embargoes.
B. dumping.
C. exports.
D. tariffs.
E. outsourcing.
116. Which of the following organizations succeeded GATT?
A. World Trade Organization
B. World Bank
C. EU
D. International Monetary Fund
E. NAFTA
117. The __________ is designed to monitor and enforce trade agreements.
A. World Bank
B. WTO
C. IMF
D. GATT
E. EU
118. The principal organization that provides low-interest loans to developing
nations for improving, for example, their transportation or education systems is
called the
A. World Bank.
B. World Trade Organization.
C. International Monetary Fund.
D. APEC.
E. GATT.
119. The ______ is controversial because it has been accused of financing projects
which harm the environment and of helping countries that permit sweatshops or
suppress religious freedom.
A. World Bank.
B. WTO.
C. ASEAN.
D. GATT.
E. EU.
120. When Thailand's currency dropped precipitously in value in the 1990s, the
______ helped by loaning money to various Asian countries.
A. World Bank
B. IMF
C. WTO
D. EU
E. GATT
121. The __________ is the rate at which one country's currency can be exchanged
for another country's currency.
A. exchange rate
B. GATT
C. terms of transaction
D. interest rate
E. return rate
122. Which of the following is a major trading bloc?
A. GATT
B. GLOBE
C. ASEAN
D. IMF
E. WTO
123. The economic community that includes China and the Philippines is the
A. NAFTA.
B. EU.
C. ASEAN.
D. Mercosur.
E. IMF.
124. Which of the following countries is a member of Mercosur?
A. China
B. Argentina
C. Greece
D. Costa Rica
E. Mexico
125. The government has certified that more than a half million U.S. workers
have lost their jobs or had their hours or wages reduced as a result of
A. NAFTA.
B. WTO.
C. Mercosur.
D. IMF.
E. EU.
126. China and the U.S. are both part of what trading bloc?
A. NAFTA
B. EU
C. ASEAN
D. Mercosur
E. APEC
127. ______ is a trading status describes a condition in which a country grants
other countries favorable trading treatment such as a reduction of import duties.
A. Most favored nation
B. Liberty status
C. Protected trade
D. Mercosur
E. Free trading status
128. If your Chinese coworker in Hong Kong tells you that you have gained
weight, you should interpret this comment as
A. an insult.
B. flirtation.
C. a misunderstanding.
D. friendliness.
E. too personal.
129. A nation's __________ is the shared set of beliefs, values, knowledge, and
patterns of behavior common to its people.
A. economic policy
B. culture
C. social pattern
D. demography
E. political process
130. Kendall was feeling very uncomfortable and disoriented since she arrived
for her new job in Bangkok. It seemed like just about everything was different
than what she was used to. Kendall was experiencing
A. overseas difficulties.
B. sociological struggles.
C. complexity issues.
D. culture shock.
E. adjustment pains.
131. In a(n) ______, shared meanings are primarily derived from written and
spoken words rather than situational cues.
A. core values system
B. low-context culture
C. expatriate system
D. societal value system
E. high-context culture
132. Which of the following is a cultural dimension of Hofstede's model?
A. uncertainty avoidance
B. power structure
C. profit seeking
D. gender egalitarianism
E. future orientation
133. In Hofstede's model, how much people embrace stereotypical male or
female traits is known as
A. individualism.
B. power distance.
C. gender egalitarianism.
D. masculinity/femininity.
E. assertiveness.
134. ______ means that people accept inequality in power among people,
institutions, and organizations.
A. High uncertainty avoidance
B. High power distance
C. Individualism
D. Low power distance
E. Low uncertainty avoidance
135. When examining the dimensions of Hofstede's model, which of the following
is true of the U.S.?
A. high power distance
B. low assertiveness
C. high individualism
D. high uncertainty avoidance
E. low masculinity
136. Which of the following is a cultural dimension in the GLOBE project?
A. humane orientation
B. power seeking
C. ethnic egalitarianism
D. failure avoidance
E. group performance
137. When conducting business in English in Asia, if the answer to a question is
"yes", one should assume that means
A. "with certainty".
B. "no".
C. "the question is understood".
D. "I can be persuaded".
E. "this is fair".
138. ______ time is a preference for doing one thing at a time.
A. Singular
B. Unichronic
C. Monochronic
D. Absolute
E. Unitary
139. Dean was working for the summer in Panama. He had made arrangements
with a business associate to give him a ride to a nearby town at 10am. He was
very upset when his ride had still not appeared by 10:30. Dean did not
understand that ______ time is common in Latin America.
A. variable
B. monochronic
C. multitask
D. delayed
E. polychronic
140. Megan, a native of New York, was living in London and working for a news
magazine. Megan is what is known as a(n)
A. countertrader.
B. franchisor.
C. expatriate.
D. outsourcer.
E. repatriate.
Essay Questions
141. Describe the history of communication and how it has been important to
great civilizations through the modern day, and the concept of the "global
village".
142. What is meant by the term "global economy"? How will it positively and
negatively affect the U.S.?
143. What are the advantages to your career of working overseas?
144. Describe ethnocentrism and the dangers of being an ethnocentric manager
when working overseas, and discuss what other approach may be superior.
145. Identify at least three benefits for companies of expanding internationally,
and provide an example of each.
146. Explain the various ways that companies can expand internationally. List
them in order of lowest to highest risk and investment.
147. Explain the three primary barriers to free trade that can exist, and why a
country might erect such barriers. Give an example of each.
148. Identify and discuss the purpose of the three principal organizations
designed to facilitate international trade.
149. What is a trading bloc? Identify four major trading blocs and the area of the
world in which the member countries are located.
150. Discuss the cultural differences in language, interpersonal space, time
orientation, and religion. Why are these factors important to successful
international business?
Chapter 04 Global Management: Managing Across Borders Answer
Key
True / False Questions
1. (p. 103) Becoming a world citizen includes learning how not to be an "ugly
American".
TRUE
Becoming a world citizen includes learning how not to be an "ugly American" as
well as being global in focus, but thinking local, learning what's appropriate
behavior, knowing your field, and becoming at least minimally skilled in the
language.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
2. (p. 103) Among cultural patterns of which one should be aware is the tradition of
businessmen asking about the wives of all business associates in Afghanistan.
FALSE
Before you travel and conduct business abroad, spend some time learning about
patterns of interpersonal communication. In Afghanistan, a man does not ask
another man about his wife.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
3. (p. 104) Globalization is the elimination of all trade barriers worldwide.
FALSE
Globalization is the trend of the world economy toward becoming a more
interdependent system.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
4. (p. 104) Air travel and electronic media have made the global village phenomenon
possible.
TRUE
The global village refers to the "shrinking" of time and space as air travel and the
electronic media have made it easier for the people of the globe to communicate
with one another.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
5. (p. 104) The term "global village" refers to the tendency for various cultural
groups to cluster in small pods throughout the world.
FALSE
The global village refers to the "shrinking" of time and space as air travel and the
electronic media have made it easier for the people of the globe to communicate
with one another.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
6. (p. 104) Great communications systems have been a hallmark of great
civilizations.
TRUE
The hallmark of great civilizations has been their great systems of
communications.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
7. (p. 105) "E-commerce" refers to the buying and selling of products and services
through computer networks.
TRUE
E-commerce, or electronic commerce, is the buying and selling of products and
services through computer networks.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
8. (p. 105-106) The term "global economy" refers to the heightened economic
regulation of many national markets as they protect themselves from one
another.
FALSE
In the late 1980s, the trend toward governments deregulating their economies
began sweeping the globe. This is one of three events that set up conditions by
which goods, people, and money could move more freely throughout the world—
a global economy. The global economy refers to the increasing tendency of the
economies of the world to interact with one another as one market instead of
many national markets.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
9. (p. 106) The term "global economy" refers to worldwide conditions by which
goods, people, and money can move more freely.
TRUE
By the late 1980s, there were several events that set up conditions by which
goods, people, and money could move more freely throughout the world—a
global economy. The global economy refers to the increasing tendency of the
economies of the world to interact with one another as one market instead of
many national markets.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
10. (p. 106) The global economy has had a revitalizing effect on some parts of the
United States.
TRUE
Foreign firms are building plants in the United States, revitalizing parts of
industrial America. Indeed, foreign direct investment makes up 15% of the
country's gross domestic product (total value of all goods and services).
Companies based overseas provide jobs for approximately 10% of the U.S.
workforce.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
11. (p. 106) Among the negative effects of global interdependency are outsourcing
and higher-priced goods.
FALSE
One negative effect of global interdependence is the movement, or outsourcing,
of formerly well-paying jobs overseas as companies seek cheaper labor costs,
particularly in manufacturing. But this typically leads to better and more
affordable products.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
12. (p. 107) Mergers have surged in the past 20 years because many industries are
not suited to being midsize or small.
TRUE
The last 20 years have seen a surge in mergers. Certain industries—oil,
telecommunications, automobiles, financial services, and pharmaceuticals, for
instance—aren't suited to being midsize, let alone small and local, so companies
in these industries are trying to become bigger and cross-border. The means for
doing so is to merge with other big companies.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
13. (p. 107) The Internet has made it more difficult for small firms to get started
because now everyone must compete on a global scale.
FALSE
The Internet and the World Wide Web allow almost anyone to be global, which
has an important result: small companies can get started more easily. Because
anyone can put goods or services on a Web site and sell worldwide, this wipes
out the former competitive advantages of distribution and scope that large
companies used to have.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
14. (p. 107) One advantage of small companies over large ones is the former's ability
to change direction faster.
TRUE
Small companies can maneuver and change direction faster, which gives them an
advantage in terms of time and distance over large companies.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
15. (p. 107) Bay-Traders are those who trade seafood from the Chesapeake Bay for
other goods rather than selling it on the open market.
FALSE
Bay-traders make a living selling things on eBay, the online auction company.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
16. (p. 108) The recent recession has caused an increasing number of Americans to
look for work overseas.
TRUE
The recent brutal U.S. job market has also spurred more Americans to hunt for
jobs overseas (and impelled foreign-born professionals who used to work in the
United States to return home).
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
17. (p. 109) A multinational corporation is a nonprofit organization with operations
in several countries.
FALSE
A multinational corporation, or multinational enterprise, is a business firm with
operations in several countries. A multinational organization is a nonprofit
organization with operations in several countries.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
18. (p. 109) The International Red Cross is an example of a multinational
organization.
TRUE
A multinational organization is a nonprofit organization with operations in
several countries. Examples are the World Health Organization, the International
Red Cross, and the Church of Latter Day Saints.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
19. (p. 109) Smart phones, e-mail, and videoconferencing have all but eliminated the
need for international business travel.
FALSE
In fact, frequent travel may still be needed because personal encounters are
essential. "There is no substitute for face time," says a Business-Week article. Yes,
technologies such as smart phones, e-mail, and videoconferencing make it easier
to connect with others—superficially, at least. "But," says an investment banker,
"in a global world you have to get in front of your employees, spend time with
your clients, and show commitment."
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
20. (p. 109-110) Unless you work outside of the U.S., international management is
likely to have little relevance during your career.
America the world will assuredly come to you. That, in a nutshell, is why you
need to learn about international management. While working for a U.S.
company you may have to deal with foreign customers. Or you may have to work
with a foreign company in some sort of joint venture. Or while working for an
American company you may have to purchase important components, raw
materials, or services from a foreign supplier.
FALSE
Even if in the coming years you never travel to the wider world outside North
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
21. (p. 111) Successful international managers are polycentric rather than
ethnocentric or geocentric.
FALSE
The successful international manager is geocentric, not ethnocentric or
polycentric. Geocentric managers accept that there are differences and
similarities between home and foreign personnel and practices and that they
should use whatever techniques are most effective. Being an ethno- or
polycentric manager takes less work. But the payoff for being a geocentric
manager can be far greater.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
22. (p. 111) Managers who take the view that native managers in foreign offices best
understand native personnel and practices, and so the home office should leave
them alone, are called polycentric managers.
TRUE
Polycentric managers take the view that native managers in the foreign offices
best understand native personnel and practices, and so the home office should
leave them alone.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
23. (p. 111) Ethnocentric policies have been linked to recruiting difficulties and high
turnover.
TRUE
Ethnocentrism can be bad for business. A survey of 918 companies with home
offices in the United States, Japan, and Europe found that ethnocentric policies
were linked to such problems as recruiting difficulties, high turnover rates, and
lawsuits over personnel policies.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
24. (p. 111) Polycentric managers accept that there are differences and similarities
between home and foreign personnel and practices and that they should use
whatever techniques are most effective.
FALSE
Geocentric managers accept that there are differences and similarities between
home and foreign personnel and practices and that they should use whatever
techniques are most effective.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
25. (p. 111) Ethnocentrism is a form of parochialism.
TRUE
Ethnocentrism might also be called parochialism—that is, a narrow view in
which people see things solely through their own perspective.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
26. (p. 111) A parochial manager is able to consider decisions and events from a
variety of viewpoints.
FALSE
Parochialism refers to a narrow view in which people see things solely through
their own perspective.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
27. (p. 112-113) Two of the reasons companies expand internationally are to take
advantage of the availability of suppliers, or to charge tariffs or impose import
quotas.
FALSE
Companies expand internationally to take advantage of availability of supplies,
new markets, lower labor costs, access to finance capital, or avoidance of tariffs
and import quotas. Countries, not companies, place tariffs on imported goods or
impose import quotas to protect domestic industries.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
28. (p. 112) The reasons that companies expand internationally all have to do with
making or saving money.
TRUE
There are at least five reasons why companies expand internationally. All of them
have to do with making or saving money.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
29. (p. 113) Maquiladoras are manufacturing plants allowed to operate in South and
Central America with special privileges in return for employing citizens in these
countries.
FALSE
Maquiladoras are manufacturing plants allowed to operate in Mexico with special
privileges in return for employing Mexican citizens.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
30. (p. 113) Deglobalization is a trend to move production back to the U.S. over fears
about geopolitics or energy prices.
TRUE
While some companies are locating their manufacturing outside the U.S., a
countertrend, called "deglobalization," is that some companies are moving
production back home, because long supply chains can be easily affected by the
whims of geopolitics and energy prices.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
31. (p. 113) A tariff is a limitation on the numbers of products allowed into a
country, imposed by its government to protect domestic industries.
FALSE
Countries place tariffs (fees) on imported goods or impose import quotas—
limitations on the numbers of products allowed in—for the purpose of protecting
their own domestic industries.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
32. (p. 113) One way to avoid a tariff is to create a subsidiary to produce the product
in the foreign country imposing that tariff.
TRUE
To avoid tariffs and quotas, a company might create a subsidiary to produce the
product in the foreign country.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
33. (p. 113) Joint ventures have a lower level of risk than franchising.
FALSE
Figure 4.1 shows that franchising has a lower level of risk and investment than
joint ventures do.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
34. (p. 113) A wholly-owned subsidiary is the global expansion strategy with the
highest risk and investment.
TRUE
Figure 4.1 shows that a wholly-owned subsidiary is the global expansion strategy
with the highest risk and investment.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
35. (p. 113) When U.S. airlines use other U.S. companies to perform their aircraft
maintenance functions it is known as outsourcing.
TRUE
A common practice of many companies, outsourcing is defined as using suppliers
outside the company to provide goods and services. For example, airlines are
increasingly farming out aircraft maintenance to other companies.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
36. (p. 114) Global outsourcing is defined as using suppliers outside the home
country to provide labor, goods, or services.
TRUE
Global outsourcing is defined as using suppliers outside the United States to
provide labor, goods, or services.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
37. (p. 114) If you can describe a job precisely, or write rules for doing it, it is
protected against offshoring.
FALSE
As soon as a job becomes routine enough to describe in a spec sheet, it becomes
vulnerable to outsourcing. Says Fred Levy, a Massachusetts Institute of
Technology economist, "If you can describe a job precisely, or write rules for
doing it, it's unlikely to survive. Either we'll program a computer to do it, or we'll
teach a foreigner to do it."
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
38. (p. 114) Jobs that requires face-to-face or physical contact, or those that require
recognition of complex patterns, are unlikely to be offshored.
TRUE
Jobs that will remain at home rather than being offshored may share certain
traits, regardless of the industry they serve: Face-to-face contact, physical
contact, or recognizing complex patterns.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
39. (p. 115) Countertrading refers to a company producing goods domestically and
selling them outside the company.
FALSE
When exporting, a company produces goods domestically and sells them outside
the country. Countertrading is bartering goods for goods.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
40. (p. 115) As of 2009, the U.S. was the world's top exporter.
FALSE
The United States was ranked the number 3 exporter in the world in 2009, down
from number 1 a decade earlier (see Table 4.1).
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
41. (p. 116) If a country's currency drops dramatically and it is unable to import the
goods it needs, then an exporter who trades with that country may turn to
countertrading.
TRUE
Sometimes other countries may wish to import American goods but lack the
currency to pay for them. In that case, the exporting U.S. company may resort to
countertrading—that is, bartering goods for goods. When the Russian ruble
plunged in value in 1998, some goods became a better medium of exchange than
currency.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
42. (p. 116) When Dupont agrees to let a Brazilian company make its product Teflon,
the non-stick coating, for a fee it is called franchising.
FALSE
In licensing, a company allows a foreign company to pay it a fee to make or
distribute the first company's product or service. For example, the Du Pont
chemical company might license a company in Brazil to make Teflon, the nonstick
substance that is found on some frying pans.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
43. (p. 116) If The Gap provides the use of its name plus its operating know-how to
companies in Turkey in return for an upfront fee plus a percentage of the profits,
The Gap would be participating in franchising.
TRUE
Franchising is a form of licensing in which a company allows a foreign company
to pay it a fee and a share of the profit in return for using the first company's
brand name and a package of materials and services.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
44. (p. 116) General Motors working with Shanghai Automotive Industry Group to
build Buicks in China is an example of a strategic alliance.
TRUE
A U.S. firm may form a joint venture, also known as a strategic alliance, with a
foreign company to share the risks and rewards of starting a new enterprise
together in a foreign country. For instance, General Motors operates a joint
venture with Shanghai Automotive Industry Group to build Buicks in China.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
45. (p. 116) A foreign subsidiary that is totally owned and controlled by an
organization is called a multinational.
FALSE
A wholly-owned subsidiary is a foreign subsidiary that is totally owned and
controlled by an organization.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
46. (p. 116) A greenfield venture is a foreign subsidiary created to exploit previously
untapped natural resources in another country.
FALSE
A greenfield venture is a foreign subsidiary that the owning organization has
built from scratch.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
47. (p. 117) Free trade is the movement of goods and services among nations
without political or economic obstruction.
TRUE
Free trade is the movement of goods and services among nations without
political or economic obstruction.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
48. (p. 117) Trade protectionism is a term for government measures that promote
and preserve free trade globally.
FALSE
Countries often use trade protectionism—the use of government regulations to
limit the import of goods and services—to protect their domestic industries
against foreign competition.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
49. (p. 117) The U.S. exports more to China than to any other nation.
FALSE
Our foremost trading partners in terms of exports are our immediate neighbors
—Canada and Mexico (see Table 4.2). China is third here, though the U.S. imports
more from this country than any other.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
50. (p. 118) An import quota is a trade barrier in the form of a customs duty, or tax,
levied mainly on imports.
FALSE
An import quota is a trade barrier in the form of a limit on the numbers of a
product that can be imported. Its intent is to protect domestic industry by
restricting the availability of foreign products.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
51. (p. 118) A revenue tariff is designed to protect domestic products from foreign
imports by raising the price of the latter.
FALSE
There are two types of tariffs: One is designed simply to raise money for the
government (revenue tariff). The other, is to raise the price of imported goods to
make the prices of domestic products more competitive (protective tariff).
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
52. (p. 118) Dumping is the practice of a foreign company exporting products
abroad at a lower price than the price in the home market—or even below the
costs of production—in order to drive down the price of the domestic product.
TRUE
Dumping is the practice of a foreign company's exporting products abroad at a
lower price than the price in the home market—or even below the costs of
production—in order to drive down the price of the domestic product.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
53. (p. 118) Cuban cigars and sugar are not allowed to be imported into the U.S.
because of a trade embargo.
TRUE
An embargo is a complete ban on the import or export of certain products such
as the U.S. ban on Cuban cigars and sugar.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
54. (p. 118) Tariffs are common today and still growing in number since they have a
long history of protecting jobs in this country.
FALSE
In the 1920s, the institution of tariff barriers did not so much protect jobs as
depress the demand for goods and services, thereby leading to the loss of jobs
anyway—and the massive unemployment of the Great Depression of the 1930s.
As a result of this lesson, after World War II the advanced nations of the world
began to realize that if all countries could freely exchange the products that each
could produce most efficiently, this would lead to lower prices all around. Thus
began the removal of barriers to free trade.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
55. (p. 119) The organization that assists in smoothing the flow of money between
nations is the World Bank.
FALSE
The International Monetary Fund (IMF) is designed to assist in smoothing the
flow of money between nations.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
56. (p. 119) The General Agreement on Tariffs and Trade (GATT) is expected to
supersede the WTO in the near future.
FALSE
The World Trade Organization (WTO) is designed to monitor and enforce trade
agreements. WTO succeeded GATT as the world forum for trade negotiations and
has the formal legal structure for deciding trade disputes.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
57. (p. 119) The International Monetary Fund assisted Asian countries with loans in
the late 1990s when they were suffering a monetary crisis.
TRUE
The International Monetary Fund (IMF) is designed to assist in smoothing the
flow of money between nations. The IMF operates as a last-resort lender that
makes short-term loans to countries suffering from unfavorable balance of
payments, and it assisted Asian countries during the crisis in the late 1990s.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
58. (p. 119) The rate at which one country's currency can be swapped for another
country's currency is called the interchange rate.
FALSE
The exchange rate is the rate at which one country's currency can be exchanged
for another country's currency.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
59. (p. 119) An example of a trading bloc is the European Union.
TRUE
A trading bloc is a group of nations within a geographical region that have agreed
to remove trade barriers with one another. Examples include NAFTA, CAFTA, the
EU, APEC countries, and Mercosur.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
60. (p. 120) Canada is part of NAFTA.
TRUE
Formed in 1994, the North American Free Trade Agreement (NAFTA) is a trading
bloc consisting of the United States, Canada, and Mexico.
AACSB: Analytic
Bloom's: Understand
Difficulty: Easy
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
61. (p. 120) Several countries of the EU now share a single currency.
TRUE
Formed in 1957, the European Union (EU) consists of 27 trading partners in
Europe. By 2002, such national symbols as the franc, the mark, the lira, the
peseta, and the guilder had been replaced with the EU currency, the euro.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
62. (p. 121) The Mercosur is comprised of countries in southeast Asia.
FALSE
The Mercosur is the largest trade bloc in Latin America and has 10 members.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
63. (p. 121) The purpose of granting "most favored nation" status to another
country is to promote tourism.
FALSE
Most favored nation trading status describes a condition in which a country
grants other countries favorable trading treatment such as the reduction of
import duties. The purpose is to promote stronger and more stable ties between
companies in the two countries.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
64. (p. 122) In China, it is permissible for office colleagues to inquire about the size
of your apartment and your salary.
TRUE
There are all kinds of cultural differences American managers have to get used to.
In China, people draw different lines between personal and work spaces, so that,
for example, it is permissible for office colleagues to inquire about the size of
your apartment and your salary.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
65. (p. 122) Most of what we know about our native culture we have learned
through formal education.
FALSE
Culture is the shared set of beliefs, values, knowledge, and patterns of behavior
common to a group of people. We begin learning our culture starting at an early
age through everyday interaction with people around us.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
66. (p. 123) Power distance refers to how loosely or tightly people are socially
bonded.
FALSE
Power distance refers to the degree to which people accept inequality in social
situations while individualism/collectivism refers to how loosely or tightly are
people socially bonded.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
67. (p. 123) The U.S. is low on the dimension of uncertainty avoidance.
TRUE
Countries such as Sweden, India, the United States, Singapore, and Jamaica are
very low on the dimension of uncertainty avoidance. Low uncertainty avoidance
means that people have high tolerance for the uncertain and ambiguous.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
68. (p. 124) The GLOBE project is a large, ongoing effort to find technological
improvements to assist world trade.
FALSE
The GLOBE project is a massive and ongoing cross-cultural investigation of nine
cultural dimensions involved in leadership and organizational processes.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
69. (p. 124) The GLOBE cultural dimension that examines the extent to which a
society should minimize gender discrimination and role inequalities is known as
gender egalitarianism.
TRUE
Gender egalitarianism expresses the extent to which a society should minimize
gender discrimination and role inequalities.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
70. (p. 125) Knowing the cultural tendencies of foreign business partners and
competitors can give you a strategic competitive advantage.
TRUE
The practical lesson to draw from the GLOBE project research is this: Knowing
the cultural tendencies of foreign business partners and competitors can give you
a strategic competitive advantage.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
71. (p. 127) Arabs prefer a larger interpersonal space when communicating than
Americans.
FALSE
People of different cultures have different ideas about what is acceptable
interpersonal space—that is, how close or far away one should be when
communicating with another person. For instance, the people of North America
and northern Europe tend to conduct business conversations at a range of 3-4
feet. For people in Latin American and Asian cultures, the range is about 1 foot.
For Arabs, it is even closer.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
72. (p. 128) In polychronic time, time is viewed as being flexible and
multidimensional.
TRUE
Polychronic time is a preference for doing more than one thing at a time. Here
time is viewed as being flexible and multidimensional.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
73. (p. 129) The religion with the most followers worldwide is Hinduism.
FALSE
Christianity has the most followers in the world with 2.1 billion. Hinduism has
only 900 million by comparison.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
74. (p. 130) Turnover rates are higher among managers returning from overseas
assignments than for those who did not go abroad.
TRUE
Of those managers who stayed for the length of their overseas assignments,
about one-fourth left the company, often to join a competitor—a turnover rate
double that of managers who did not go abroad.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-05 What are the principal areas of cultural differences?
Topic: The Importance of Understanding Cultural Differences
Multiple Choice Questions
75. (p. 103) Which of the following is a way to become a world citizen?
A. Dress comfortably and casually, so you are ready for any activity.
B. To gain an early upper hand, be very vocal and assertive.
C. Be and think globally.
D. Speak English at all times since it is the world's language.
E. Learn rituals of respect.
Becoming a world citizen includes learning how not to be an "ugly American" as
well as being global in focus, but thinking local, learning what's appropriate
behavior, knowing your field, and becoming at least minimally skilled in the
language. Appropriate behavior includes dressing professionally and learning
rituals of respect.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
76. (p. 104) The trend of the world economy toward becoming a more
interdependent system is called
A. international cooperation.
B. globalization.
C. world partnership.
D. economic defragmentation.
E. international unification.
Globalization is the trend of the world economy toward becoming a more
interdependent system.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
77. (p. 103) The earliest forms of communication, the hallmark of great civilizations,
were based on
A. personal relationships.
B. technology.
C. transportation.
D. warfare.
E. agriculture.
The hallmark of great civilizations has been great systems of communications. In
the beginning, communication was based on transportation, such as the Roman
Empire's network of roads.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
78. (p. 103) Which form of technology was exploding when the notion of a "global
village" was first developed?
A. newspapers
B. telephones
C. television
D. cell phones
E. the Internet
During the 1950s and 1960s, as television exploded throughout the world,
communications philosopher Marshall McLuhan posed the notion of a "global
village," where we all share our hopes, dreams, and fears in a "worldpool" of
information.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
79. (p. 105) Which of the following is an event that helped spur the inception of the
global economy?
A. the opening of Asian markets to foreign investors
B. improved race relations worldwide
C. the industrial revolution
D. the invention of the Internet
E. the increasing regulation of economies across the world
It was in the late 1980s when the Berlin Wall came down, signaling the beginning
of the end of communism in Eastern Europe. It was also when Asian countries
began to open their economies to foreign investors. Finally, the trend toward
governments deregulating their economies began sweeping the globe. These
three events set up conditions by which goods, people, and money could move
more freely throughout the world—a global economy.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
80. (p. 105) Which of the following is a negative effect for the U.S. of global economic
interdependency?
A. decreased economic activity
B. poorer quality goods
C. lower standards of living
D. loss of well-paying jobs
E. more expensive products
A negative effect of global economic interdependency is the movement, or
outsourcing, of formerly well-paying jobs overseas as companies seek cheaper
labor costs, particularly in manufacturing.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
81. (p. 105) According to technology philosopher Nicholas Negroponte, the global
market driven by electronic information results in an increase of minifirms and
A. multinational corporations.
B. unstable governments.
C. nonprofit organizations.
D. intercorporate conflict.
E. megamergers.
According to technology philosopher Nicholas Negroponte, in the global market
driven by electronic information, "there will be an increasing absence of things
that aren't either very local or very global." If Negroponte is correct, it means we
will see more of two opposite kinds of businesses: mergers of huge companies
into even larger companies, and small, fast-moving start-up companies.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
82. (p. 107) Leah runs a small handmade custom card business, and has recently put
up a website. What advantage does her business have over larger competitors?
A. It has greater access to capital.
B. It has superior distribution.
C. It has more access to young talent.
D. It can change direction quicker.
E. It has well-defined bureaucratic systems.
The Internet and the World Wide Web allow almost anyone to be global, which
Kevin Maney points out has two important results: (1) small companies can get
started more easily; (2) small companies can maneuver faster.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
83. (p. 108) According to management recruiters, ______ demonstrates
independence, resourcefulness, and entrepreneurship to potential employers.
A. importing goods from another country
B. foreign work experience
C. holding school leadership positions
D. speaking a second language
E. studying the fine arts
Foreign experience demonstrates independence, resourcefulness, and
entrepreneurship, according to management recruiters.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
84. (p. 109) Estevez- Richmond, Inc. is a large civil engineering firm with operations
in the U.S., Mexico, Costa Rica and Guatemala. The company is a
A. megamerger.
B. multinational organization.
C. global organization.
D. multiregional firm.
E. multinational corporation.
A multinational corporation, or multinational enterprise, is a business firm with
operations in several countries.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
85. (p. 109) Great Challenge is a nonprofit organization that assists several African
nations with large infrastructure development projects. Great Challenge is a(n)
A. multinational corporation.
B. global aid firm.
C. international philanthrophy.
D. multinational organization.
E. world charity.
A multinational organization is a nonprofit organization with operations in
several countries.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
86. (p. 109) The World Health Organization is an example of a
A. multinational organization.
B. multigovernment organization.
C. international social corporation.
D. multinational corporation.
E. global philanthropy.
A multinational organization is a nonprofit organization with operations in
several countries. Examples are the World Health Organization, the International
Red Cross, the Church of Latter Day Saints.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
87. (p. 111) __________ managers accept that there are differences and similarities
between home and foreign personnel and practices and that they should use
whatever techniques are most effective.
A. Expatriate
B. Ethnocentric
C. Geocentric
D. Polycentric
E. Global
Geocentric managers accept that there are differences and similarities between
home and foreign personnel and practices and that they should use whatever
techniques are most effective.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
88. (p. 111) Holly is a seasoned American manager, currently working in South
Korea. She has noticed that some of her management techniques work well in her
overseas position, but sometimes she finds it more effective to defer to the
practices of her Korean counterparts. Holly can be described as a(n) ______
manager.
A. parochial
B. ethnocentric
C. expatriate
D. polycentric
E. geocentric
Geocentric managers accept that there are differences and similarities between
home and foreign personnel and practices and that they should use whatever
techniques are most effective.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
89. (p. 111) A polycentric manager believes that
A. organizations should maximize the number of managers from different
countries in foreign operations.
B. her country and culture are superior.
C. managers in foreign countries should follow corporate procedures.
D. native managers in foreign offices best understand native personnel and
practices.
E. managers in foreign countries should use whatever techniques are most
effective.
Polycentric managers take the view that native managers in the foreign offices
best understand native personnel and practices, and so the home office should
leave them alone.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
90. (p. 111) It is rare for Jason to deviate from the practices he has always used as a
U.S. manager, even though he is now working at an African subsidiary. He says, to
use his words, that he is "just ensuring the job gets done right". Jason is most
likely a(n) ______ manager.
A. ethnocentric
B. concentric
C. prejudicial
D. polycentric
E. geocentric
Ethnocentric managers believe that their native country, culture, language, and
behavior are superior to all others. Ethnocentric managers tend to believe that
they can export the managers and practices of their home countries to anywhere
in the world and that they will be more capable and reliable.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
91. (p. 111) Ethnocentrism among international managers has been linked to
A. higher performance by foreign subsidiaries.
B. lower turnover among employees in foreign subsidiaries.
C. fewer lawsuits over personnel policies within foreign subsidiaries.
D. recruitment difficulties for foreign subsidiaries.
E. poor quality products from foreign subsidiaries.
A survey of 918 companies found that ethnocentric policies were linked to such
problems as recruiting difficulties, high turnover rates, and lawsuits over
personnel policies.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
92. (p. 111) A narrow view in which people see things solely through their own
perspective is known as
A. concentrism.
B. polycentrism.
C. geocentrism.
D. expatriatism.
E. parochialism.
Parochialism is a narrow view in which people see things solely through their
own perspective.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
93. (p. 112-113) Which of the following is a primary reason that companies expand
internationally?
A. political expediency
B. higher tariffs
C. more diverse employees
D. prevention of counterfeiting
E. lower labor costs
Companies expand internationally to take advantage of availability of supplies,
new markets, lower labor costs, access to finance capital, or avoidance of tariffs
and import quotas.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
94. (p. 113) Sport Fit, Inc., an American corporation, designs and manufactures
men's and women's undergarments for athletic activities. It has recently begun to
manufacture at a plant in Mexico, thanks to the inexpensive labor there and
various tax breaks from the Mexican government. Sport Fit is
A. repatriating.
B. using a maquiladora.
C. countertrading.
D. franchising.
E. licensing.
American companies have found it cheaper to do their manufacturing outside the
United States. For example, the rationale for using maquiladoras—manufacturing
plants allowed to operate in Mexico with special privileges in return for
employing Mexican citizens—is that they provide less expensive labor for
assembling many types of manufactured goods.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
95. (p. 113) Carlie runs a successful jewelry store online. She loves designing and
marketing the jewelry and she managers others who do the production, but the
shipping has become a real problem. She decided to contract with a shipping
company to handle this logistical part of her business. Carlie is
A. countertrading.
B. franchising.
C. outsourcing.
D. licensing.
E. privatizing.
A common practice of many companies, outsourcing is defined as using suppliers
outside the company to provide goods and services.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
96. (p. 113) When a company uses a supplier outside itself to provide goods and
services, it is
A. outsourcing.
B. countertrading.
C. franchising.
D. licensing.
E. privatizing.
A common practice of many companies, outsourcing is defined as using suppliers
outside the company to provide goods and services.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
97. (p. 114) Cole purchases handcrafted marble containers and decorator pieces in
India and brings them to the U.S. to sell in his retail store. He is involved in
A. outsourcing.
B. countertrading.
C. importing.
D. franchising.
E. exporting.
When importing, a company buys goods outside the country and resells them
domestically.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
98. (p. 115) A company that is producing goods domestically and sells them outside
the country is involved in
A. countertrading.
B. outsourcing.
C. importing.
D. exporting.
E. franchising.
When exporting, a company produces goods domestically and sells them outside
the country.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
99. (p. 116) A company that barters goods for other goods is involved in
A. outsourcing.
B. countertrading.
C. importing.
D. exporting.
E. franchising.
Countertrading is bartering goods for goods.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
100. (p. 116) Tricolor Products, a textiles company in the U.S., normally exported
much of its product to Greece. Since the financial crisis in that country, many of
its customers were unable to import at normal levels, so Tricolor resorted to
bartering for some of these companies' finished goods, which it then resold in the
United States. Tricolor is involved in
A. importing.
B. franchising.
C. reexporting.
D. outsourcing.
E. countertrading.
Countertrading is bartering goods for goods.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
101. (p. 116) A company allows a foreign firm to pay it a fee to make or distribute
the first company's product or service. This is called
A. outsourcing.
B. franchising.
C. licensing.
D. countertrading.
E. a joint venture.
In licensing, a company allows a foreign company to pay it a fee to make or
distribute the first company's product or service.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
102. (p. 116) China does not allow foreign car manufacturers to sell vehicles
independently in its country but instead requires them to partner with a Chinese
company. This type of partnership is known as a
A. franchise agreement.
B. countertrade.
C. joint venture.
D. maquiladora.
E. greenfield venture.
A U.S. firm may form a joint venture, also known as a strategic alliance, with a
foreign company to share the risks and rewards of starting a new enterprise
together in a foreign country. Sometimes a joint venture is the only way an
American company can have a presence in a certain country, whose laws may
forbid foreigners from ownership. Indeed, in China, this is the only way foreign
cars may be sold in that country.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
103. (p. 116) A U.S. company agrees with a foreign company to start a new
enterprise together in a foreign country, sharing the risks and the rewards. This
is called a
A. countertrade.
B. greenfield venture.
C. wholly owned subsidiary.
D. strategic alliance.
E. maquiladora.
A U.S. firm may form a joint venture, also known as a strategic alliance, with a
foreign company to share the risks and rewards of starting a new enterprise
together in a foreign country.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
104. (p. 116) GO Sun was a small solar research company in Colorado. It was
recently purchased by a much larger alternative energy firm in Germany. Go Sun
is now a ______ of the German corporation.
A. maquiladora
B. strategic ally
C. wholly owned subsidiary
D. greenfield venture
E. licensee
A wholly-owned subsidiary is a foreign subsidiary that is totally owned and
controlled by an organization. The foreign subsidiary may be an existing
company that is purchased outright.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
105. (p. 116) Eli Lilly has agreed to let a South African company manufacture several
of Eli Lilly's diabetes drugs and pay Eli Lilly a fee to distribute the drugs with a
different brand name in South Africa. Eli Lilly is engaging in
A. licensing.
B. franchising.
C. countertrading.
D. a strategic alliance.
E. a greenfield venture.
In licensing, a company allows a foreign company to pay it a fee to make or
distribute the first company's product or service.
106. (p. 116) Pizza Hut provides the use of its name plus operating know-how to
companies in Costa Rica in return for a fee plus a percentage of profits. Pizza Hut
is
A. exporting.
B. franchising.
C. countertrading.
D. involved in a strategic alliance.
E. involved in a greenfield venture.
Franchising is a form of licensing in which a company allows a foreign company
to pay it a fee and a share of the profit in return for using the first company's
brand name and a package of materials and services.
107. (p. 117) The movement of goods and services among nations without political
or economic obstruction is called
A. trade policy.
B. free trade.
C. trade protectionism.
D. privatization.
E. trade embargo.
Free trade is the movement of goods and services among nations without
political or economic obstruction.
108. (p. 117-118) When a government uses measures like tariffs and import quotas, it
is called
A. ethnocentrism.
B. free trade.
C. a trade bloc.
D. an embargo.
E. trade protectionism.
Countries often use trade protectionism—the use of government regulations to
limit the import of goods and services—to protect their domestic industries
against foreign competition. Tariffs and import quotas are among the measures
used in protectionism.
109. (p. 118) Which of the following is a form of trade protectionism?
A. a trade bloc
B. a countertrade
C. a revenue quota
D. an embargo
E. outsourcing
Countries often use trade protectionism—the use of government regulations to
limit the import of goods and services—to protect their domestic industries
against foreign competition. The three devises by which countries try to exert
protectionism consist of tariffs (protective, not revenue), import quotas, and
embargoes.
110. (p. 118) The EU has recently agreed to cut the taxes it charges on bananas
imported from Central and South America. This tax is a type of
A. embargo.
B. tariff.
C. import quota.
D. predatory selling.
E. boycott.
A tariff is a trade barrier in the form of a customs duty, or tax, levied mainly on
imports.
111. (p. 118) Korean has a complete ban on beef and beef products imported from
Canada. This is an example of a(n)
A. revenue tariff.
B. boycott.
C. embargo.
D. protective tariff.
E. import quota.
An embargo is a complete ban on the import or export of certain products.
112. (p. 118) __________ is the practice of a foreign company exporting products
abroad at a lower price than the price in the home market—or even below the
costs of production—in order to drive down the price of the domestic product.
A. Export crashing
B. Dumping
C. Predatory selling
D. Loss transaction
E. Alien advantage
Dumping is the practice of a foreign company's exporting products abroad at a
lower price than the price in the home market—or even below the costs of
production—in order to drive down the price of the domestic product.
113. (p. 118) A duty imposed on imported goods designed simply to raise money for
the government in known as a(n)
A. protective tariff.
B. income quota.
C. income embargo.
D. revenue tariff.
E. import quota.
There are two types of tariffs: One is designed simply to raise money for the
government (revenue tariff).
114. (p. 118) Wheat producers in the U.S. claim that the Canadian Wheat Board is
selling wheat imported into the U.S. at unreasonably low prices and they fear
depression of their own prices. The U.S. producers are accusing the Canadians of
A. creating an embargo.
B. unfair foreign advantage.
C. export crashing.
D. loss transactions.
E. dumping.
Dumping is the practice of a foreign company's exporting products abroad at a
lower price than the price in the home market—or even below the costs of
production—in order to drive down the price of the domestic product.
115. (p. 118) Import quotas are designed to prevent
A. embargoes.
B. dumping.
C. exports.
D. tariffs.
E. outsourcing.
Quotas are designed to prevent dumping, the practice of a foreign company's
exporting products abroad at a lower price than the price in the home market—
or even below the costs of production—in order to drive down the price of the
domestic product.
116. (p. 119) Which of the following organizations succeeded GATT?
A. World Trade Organization
B. World Bank
C. EU
D. International Monetary Fund
E. NAFTA
WTO succeeded GATT as the world forum for trade negotiations and has the
formal legal structure for deciding trade disputes.
117. (p. 119) The __________ is designed to monitor and enforce trade agreements.
A. World Bank
B. WTO
C. IMF
D. GATT
E. EU
The World Trade Organization (WTO) is designed to monitor and enforce trade
agreements.
118. (p. 119) The principal organization that provides low-interest loans to
developing nations for improving, for example, their transportation or education
systems is called the
A. World Bank.
B. World Trade Organization.
C. International Monetary Fund.
D. APEC.
E. GATT.
Today the purpose of the World Bank is to provide low-interest loans to
developing nations for improving transportation, education, health, and
telecommunications.
119. (p. 119) The ______ is controversial because it has been accused of financing
projects which harm the environment and of helping countries that permit
sweatshops or suppress religious freedom.
A. World Bank.
B. WTO.
C. ASEAN.
D. GATT.
E. EU.
In recent years, the World Bank has been the target of demonstrations. Protesters
believe it finances projects that could damage the ecosystem, such as the Three
Gorges Dam on China's Yangtze River. Others complain it supports countries that
permit low-paying sweatshops or that suppress religious freedom.
120. (p. 119) When Thailand's currency dropped precipitously in value in the 1990s,
the ______ helped by loaning money to various Asian countries.
A. World Bank
B. IMF
C. WTO
D. EU
E. GATT
During the late 1990s, the IMF loaned Asian countries billions of dollars
following Thailand's financial crisis.
121. (p. 119) The __________ is the rate at which one country's currency can be
exchanged for another country's currency.
A. exchange rate
B. GATT
C. terms of transaction
D. interest rate
E. return rate
An exchange rate is the rate at which one country's currency can be exchanged
for another country's currency.
122. (p. 119) Which of the following is a major trading bloc?
A. GATT
B. GLOBE
C. ASEAN
D. IMF
E. WTO
The six major trading blocs are the NAFTA nations, the European Union, the
APEC countries, the ASEAN countries, the Mercosur, and CAFTA.
123. (p. 121) The economic community that includes China and the Philippines is
the
A. NAFTA.
B. EU.
C. ASEAN.
D. Mercosur.
E. IMF.
The Association of Southeast Asian Nations (ASEAN) is a trading bloc consisting
of 11 countries in Asia: Brunei, Cambodia, China, Indonesia, Laos, Malaysia,
Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam.
124. (p. 121) Which of the following countries is a member of Mercosur?
A. China
B. Argentina
C. Greece
D. Costa Rica
E. Mexico
The Mercosur is the largest trade bloc in Latin America and has 10 members—
Argentina, Brazil, Paraguay, Uruguay, Venezuela, Bolivia, Chile, Colombia,
Ecuador, and Peru.
125. (p. 120) The government has certified that more than a half million U.S.
workers have lost their jobs or had their hours or wages reduced as a result of
A. NAFTA.
B. WTO.
C. Mercosur.
D. IMF.
E. EU.
Nearly 525,000 workers, mostly in manufacturing, have been certified by the U.S.
government as having lost their jobs or had their hours or wages reduced
because of NAFTA's shifting of jobs south of the border.
126. (p. 121) China and the U.S. are both part of what trading bloc?
A. NAFTA
B. EU
C. ASEAN
D. Mercosur
E. APEC
The Asia-Pacific Economic Cooperation (APEC) is a group of 21 Pacific Rim
countries whose purpose is to improve economic and political ties. Among the 21
members are the United States, Canada, and China.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
127. (p. 121) ______ is a trading status describes a condition in which a country
grants other countries favorable trading treatment such as a reduction of import
duties.
A. Most favored nation
B. Liberty status
C. Protected trade
D. Mercosur
E. Free trading status
Most favored nation trading status describes a condition in which a country
grants other countries favorable trading treatment such as the reduction of
import duties.
128. (p. 122) If your Chinese coworker in Hong Kong tells you that you have gained
weight, you should interpret this comment as
A. an insult.
B. flirtation.
C. a misunderstanding.
D. friendliness.
E. too personal.
In Hong Kong, an American journalist riding in an elevator said hi to a Chinese
colleague. She responded, "You've gained weight." Although the remark would be
regarded as tactless and offensive in the United States, "In China, such an
intimate observation from a colleague isn't necessarily an insult," the journalist
wrote. "It's probably just friendliness."
129. (p. 122) A nation's __________ is the shared set of beliefs, values, knowledge, and
patterns of behavior common to its people.
A. economic policy
B. culture
C. social pattern
D. demography
E. political process
A nation's culture is the shared set of beliefs, values, knowledge, and patterns of
behavior common to a group of people.
130. (p. 122) Kendall was feeling very uncomfortable and disoriented since she
arrived for her new job in Bangkok. It seemed like just about everything was
different than what she was used to. Kendall was experiencing
A. overseas difficulties.
B. sociological struggles.
C. complexity issues.
D. culture shock.
E. adjustment pains.
Because a culture is made up of so many nuances, visitors to another culture may
experience culture shock—the feelings of discomfort and disorientation
associated with being in an unfamiliar culture.
131. (p. 123) In a(n) ______, shared meanings are primarily derived from written and
spoken words rather than situational cues.
A. core values system
B. low-context culture
C. expatriate system
D. societal value system
E. high-context culture
A person from North America, Great Britain, Scandinavia, Germany, or
Switzerland, for example, comes from a low-context culture in which shared
meanings are primarily derived from written and spoken words.
132. (p. 123) Which of the following is a cultural dimension of Hofstede's model?
A. uncertainty avoidance
B. power structure
C. profit seeking
D. gender egalitarianism
E. future orientation
The Hofstede model of four cultural dimensions identified four dimensions along
which national cultures can be placed: (1) individualism/collectivism, (2) power
distance, (3) uncertainty avoidance, and (4) masculinity/femininity.
133. (p. 123) In Hofstede's model, how much people embrace stereotypical male or
female traits is known as
A. individualism.
B. power distance.
C. gender egalitarianism.
D. masculinity/femininity.
E. assertiveness.
Masculinity/femininity is how much people embrace stereotypical male or
female traits.
134. (p. 123) ______ means that people accept inequality in power among people,
institutions, and organizations.
A. High uncertainty avoidance
B. High power distance
C. Individualism
D. Low power distance
E. Low uncertainty avoidance
High power distance, such as occurs in Mexico, India, Thailand, Panama, and the
Philippines, means that people accept inequality in power among people,
institutions, and organizations.
135. (p. 124) When examining the dimensions of Hofstede's model, which of the
following is true of the U.S.?
A. high power distance
B. low assertiveness
C. high individualism
D. high uncertainty avoidance
E. low masculinity
In general, the United States ranked very high on individualism, relatively low on
power distance, low on uncertainty avoidance, and moderately high on
masculinity.
136. (p. 124) Which of the following is a cultural dimension in the GLOBE project?
A. humane orientation
B. power seeking
C. ethnic egalitarianism
D. failure avoidance
E. group performance
The nine cultural dimensions are power distance, uncertainty avoidance,
institutional collectivism, in-group collectivism, gender egalitarianism,
assertiveness, future orientation, performance orientation, and humane
orientation.
137. (p. 127) When conducting business in English in Asia, if the answer to a
question is "yes", one should assume that means
A. "with certainty".
B. "no".
C. "the question is understood".
D. "I can be persuaded".
E. "this is fair".
Even if you are operating in the English language, there are nuances between
cultures that can lead to misperceptions. For instance, in Asia, a "yes" answer to a
question "simply means the question is understood," says one well-traveled
writer. "It's the beginning of negotiations."
138. (p. 128) ______ time is a preference for doing one thing at a time.
A. Singular
B. Unichronic
C. Monochronic
D. Absolute
E. Unitary
Monochronic time is a preference for doing one thing at a time. In this
perception, time is viewed as being limited, precisely segmented, and schedule
driven.
139. (p. 128) Dean was working for the summer in Panama. He had made
arrangements with a business associate to give him a ride to a nearby town at
10am. He was very upset when his ride had still not appeared by 10:30. Dean did
not understand that ______ time is common in Latin America.
A. variable
B. monochronic
C. multitask
D. delayed
E. polychronic
Polychronic time is a preference for doing more than one thing at a time. Here
time is viewed as being flexible and multidimensional. This outlook on time is the
kind that prevails in Mediterranean, Latin American, and especially Arab
cultures.
140. (p. 128) Megan, a native of New York, was living in London and working for a
news magazine. Megan is what is known as a(n)
A. countertrader.
B. franchisor.
C. expatriate.
D. outsourcer.
E. repatriate.
Expatriates are those people living or working in a foreign country.
Essay Questions
141. (p. 104-105) Describe the history of communication and how it has been
important to great civilizations through the modern day, and the concept of the
"global village".
The hallmark of great civilizations has been their great systems of
communications. In the beginning, communications was based on
transportation: the Roman Empire had its network of roads, as did other ancient
civilizations, such as the Incas. Later the great European powers had their far-
flung navies. In the 19th century, the United States and Canada unified North
America by building transcontinental railroads. Later the airplane reduced travel
time between continents.
Transportation began to yield to the electronic exchange of information.
Beginning in 1844, the telegraph ended the short existence of the Pony Express
and, beginning in 1876, found itself in competition with the telephone. The
amplifying vacuum tube, invented in 1906, led to commercial radio. Television
came into being in England in 1925. During the 1950s and 1960s, as television
exploded throughout the world, communications philosopher Marshall McLuhan
posed the notion of a "global village," which refers to the "shrinking" of time and
space as air travel and the electronic media have made it easier for the people of
the globe to communicate with one another.
Then the world became even faster and smaller. Fifteen years ago, cell phones,
pagers, fax, and voice-mail links barely existed. Then came the Internet, the
worldwide computer-linked "network of networks," for which there were an
estimated 1.7 billion users throughout the world in late 2000. The arrival of the
Web quickly led to e-commerce, or electronic commerce, the buying and selling
of products and services through computer networks. Total U.S. e-commerce
sales were expected to top $136 billion in 2007.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
142. (p. 105-106) What is meant by the term "global economy"? How will it positively
and negatively affect the U.S.?
The "global economy" refers to the growing tendency of the economies of nations
to interact with each other as one market instead of many.
This positively affects the U.S. by providing additional markets for U.S. products,
which will mean domestic growth. In addition, foreign firms are building plants
in the United States, revitalizing parts of industrial America. Foreign direct
investment makes up 15% of the country's gross domestic product (total value of
all goods and services). Companies based overseas provide jobs for
approximately 10% of the U.S. workforce.
It negatively affects the U.S. because economic problems in other parts of the
world are more likely to affect the U.S. economy. There are risks associated with
financially intertwined markets. Another negative effect is the movement, or
outsourcing, of formerly well-paying jobs overseas as companies seek cheaper
labor costs, particularly in manufacturing.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-01 What three important developments of globalization will probably affect me?
Topic: Globalization: The Collapse of Time & Distance
143. (p. 108) What are the advantages to your career of working overseas?
Anyone with international experience is likely to have a leg up, higher salary, and
be more marketable. Foreign experience demonstrates independence,
resourcefulness, and entrepreneurship, according to management recruiters.
People who have worked abroad can generally move quickly and are nimble with
inquiring minds. People who have worked and supported themselves overseas
tend to be adaptive and inquisitive—valuable skills in today's workplace.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
144. (p. 111) Describe ethnocentrism and the dangers of being an ethnocentric
manager when working overseas, and discuss what other approach may be
superior.
Ethnocentric managers believe that their native country, culture, language, and
behavior are superior to all others. Ethnocentric managers tend to believe that
they can export the managers and practices of their home countries to anywhere
in the world and that they will be more capable and reliable. Ethnocentrism can
be bad for business. A survey of 918 companies with home offices in the United
States, Japan, and Europe found that ethnocentric policies were linked to such
problems as recruiting difficulties, high turnover rates, and lawsuits over
personnel policies.
Successful international managers are geocentric instead; that is, they accept the
differences and similarities between domestic and foreign people and cultures
and use whatever management techniques are most effective in particular
situations.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-02 Why learn about international management; and what characterizes the successful international
manager?
Topic: You & International Management
145. (p. 112-113) Identify at least three benefits for companies of expanding
internationally, and provide an example of each.
The benefits include:
1. Availability of supplies. For years oil companies, for example, have expanded
their activities outside the United States in seeking cheaper or more plentiful
sources of oil.
2. New markets for old products. Sometimes a company will find, as cigarette
makers have, that the demand for their product has declined domestically but
that they can still make money overseas.
3. Lower labor costs. For example, the rationale for using maquiladoras—
manufacturing plants allowed to operate in Mexico with special privileges in
return for employing Mexican citizens—is that they provide less expensive labor
for assembling everything from appliances to cars.
4. Access to financial capital. Sometimes a foreign government will offer a
subsidy in hopes of attracting a company that will create jobs, as Ireland did in
the 1970s for Lotus sports-car maker John DeLorean.
5. Avoidance of trade barriers. For example, Japan imposes tariffs on agricultural
products, such as rice, imported from the United States. To avoid these penalties,
a company might create a subsidiary to produce the product in the foreign
country.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
146. (p. 113-116) Explain the various ways that companies can expand
internationally. List them in order of lowest to highest risk and investment.
The alternatives are:
1. Global outsourcing: using suppliers outside the country to provide goods
and/or services.
2. Importing, exporting, and countertrading: buying foreign products for
domestic resale, selling domestic products outside the country, or trading for
goods.
3. Licensing or franchising: allowing a foreign company to distribute a good or
service for a fee, or allowing a foreign company to use a brand name and
organizational know-how in return for a fee and percentage of profits.
4. Joint venture: allying with a foreign company to start a new enterprise
together in a foreign country.
5. Wholly-owned subsidiary: buying or starting a foreign subsidiary.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-03 Why do companies expand internationally; and how do they do it?
Topic: Why & How Companies Expand Internationally
147. (p. 117-118) Explain the three primary barriers to free trade that can exist, and
why a country might erect such barriers. Give an example of each.
Barriers include protective tariffs, import quotas, and embargoes. Countries
often use such barriers as a form of trade protectionism—the use of government
regulations to limit the import of goods and services—to protect their domestic
industries against foreign competition. The justification they often use is that this
saves jobs.
Tariffs are duties or taxes levied on imports. Tariffs may be used to raise money
for the government (revenue tariffs) or to protect domestic production
(protective tariffs). An example of the second type is the U.S. tariff on Japanese
steel.
Import quotas are limits on the numbers of a product that can be imported.
These also protect domestic industries. The U.S. has also used this technique to
protect domestic steel production against Japanese competition.
Embargoes are complete bans on import or export of particular products. This
may be done to protect domestic production or for reasons of foreign policy or
protection of technological secrets. For example, the U.S. has banned the import
of Cuban cigars and sugar for political reasons.
AACSB: Analytic
Bloom's: Apply
Difficulty: Hard
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
148. (p. 118-119) Identify and discuss the purpose of the three principal
organizations designed to facilitate international trade.
The three organizations are the WTO, the World Bank, and the IMF.
The WTO (World Trade Organization) serves as a forum for agreements between
nations about international trade, and a means to resolve disputes in that area.
The World Bank provides low-interest loans to developing countries for
improving their infrastructure, including transportation, education, health, and
communications.
The IMF (International Monetary Fund) assists in the flow of money between
nations, and may make last-resort, short-term loans to countries in financial
difficulties.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Learning Objective: 04-04 What are barries to free trade; and what major organizations and trading blocs promote trade?
Topic: The World of Free Trade: Regional Economic Cooperation
149. (p. 119-121) What is a trading bloc? Identify four major trading blocs and the
area of the world in which the member countries are located.
A trading bloc is a group of nations in a particular geographic area that agree to
join together to remove trade barriers with one another. The major trading blocs
are:
NAFTA: U.S., Canada, Mexico
EU: Europe
ASEAN: Southeast Asia
APEC: countries of the Pacific rim, including the US and Canada
Mercosur: Latin America
CAFTA: Central America
150. (p. 127-129) Discuss the cultural differences in language, interpersonal space,
time orientation, and religion. Why are these factors important to successful
international business?
Language: Only 20% of the people of the world speak English, and over 3000
different languages are spoken. Even with English, how particular words are to
be interpreted can vary.
Interpersonal space: People of different cultures have different ideas about what
is acceptable interpersonal space—that is, how close or far away one should be
when communicating with another person. This can lead to cross-cultural
misunderstandings and discomfort.
Time orientation: Individuals in cultures with monochronic time prefer doing
one thing at a time, and perceive time as being limited, precisely segmented, and
schedule driven. Those with polychronic orientation find multitasking
acceptable, and view time as flexible and multidimensional. This can lead to cross
cultural misunderstandings.
Religion: Major religions include Christianity, Islam, Hinduism, Buddhism,
Judaism, and Chinese traditional religions; members of these religions vary
widely in their most important work-related values.
