TB Ch01 Revised

Chapter 1 The Exceptional Manager: What You Do, How You Do

Test Item Table by Major Question and Level of Learning

Major Question

Level of Learning

Level 1: Knowledge (Knows Basic Terms

& Facts)

Level 2: Comprehension (Understands Concepts &

Principles)

Level 3: Application (Applies Principles)

1.1 What are the rewards of being an exceptional manager—of being a star in my workplace?

2,3,4,64,65,66,67,68,69,137

1,5,6,7,8,9,10,11,70,71,72,138

1.2 Challenges can make one feel alive. What are six challenges I could look forward to as a manager?

15,18,24,25,27,28,74,75,77,79

12,13,14,16,17,19,20,21,22,23,26,29,30,31,73,76,78,81

80,139

1.3 What would I actually do—that is, what would be my four principal functions—as a manager?

32,33,34,35,36,82,83,84,85,86,87

89 88,90,91,140

1.4 What are the levels and areas of management I need to know to move up, down, and sideways?

37,39,40,41,42,43,45,92,95,97,98,100,102,103,104,141

38,46,94,106

44,93,96,99,101,105

1.5 To be an exceptional manager, what roles must I play successfully?

51,54,55,56,108,109,110,142

47,48,49,50,52,53,107,115,119

111,112,113,114,116,117,118,120,121,122,123

1.6 Do I have what it takes to be an entrepreneur?

57,58,59,61,124,126,143

60,125

1.7 To be a terrific manager, what skills should I cultivate?

128,130,133,144

62,63,127,132,135,136

129,131,134

Note: Bold numbers indicate short essay questions; italicized numbers indicate T/F questions.

Kinicki/Williams, Management: A Practical Introduction, 4eCopyright © 2009, The McGraw-Hill Companies

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Chapter 1 The Exceptional Manager: What You Do, How You Do It

True/False Questions

1. One of the “star strategies” that can be adopted by average performers to become star performers is organizational savvy.

Answer: True Page: 3 LO: 1 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Kelley suggests that star managers have initiative, can network, are self-managed, have a good sense of perspective and followership, are leaders, can participate well in teams, have organizational savvy, and excel at show and tell.

2. Management includes integrating the work of people through planning, organizing, leading, and controlling the organization’s resources.

Answer: True Page: 4 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge

3. Effectiveness means to use resources wisely and cost-effectively.

Answer: False Page: 5 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge

4. Efficiency and effectiveness mean the same thing.


5. Automated telephone systems are often very effective, but rarely are they efficient.

Answer: False Page: 5 LO: 1 Difficulty: Moderate AACSB: 4 BT: ComprehensionRationale: Automated telephone systems are often efficient; the companies no longer need as many telephone receptionists. They may be ineffective in satisfying customers.

6. An effective manager's influence on the organization is multiplied beyond the results achievable by just one person.

Answer: True Page: 6 LO: 1 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Good managers create value. The reason is that 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.

7. Being a manager usually leads to a higher salary.

Answer: True Page: 6 LO: 1 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.


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8. One of the rewards of being a manager is that you and your employees can experience a sense of accomplishment.

Answer: True Page: 7 LO: 1 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: The rewards of practicing management include experiencing a sense of accomplishment, stretching your abilities and magnifying your range, and building a catalog of successful products or services.

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: ComprehensionRationale: One of the payoffs of studying management as a discipline includes understanding how to interact with co-workers.

10. One of the payoffs of studying management includes understanding how to deal with organizations as a customer.

Answer: True Page: 7 LO: 1 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: One of the payoffs of studying management as a discipline includes understanding how to deal with organizations from the outside, as a customer or investor, for example.

11. If you enjoy mentoring and helping others to grow management is a great job.

Answer: True Page: 7 LO: 1 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: According to Odette Pollar, “If you truly like people and enjoy mentoring and helping others to grow and thrive, management is a great job.”

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: ComprehensionRationale: Managers face six challenges that need to be balanced including both ethical standards and competitive advantage.

13. Many people prefer being bored to being anxious or to being balanced between boredom and anxiety.

Answer: False Page: 8 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: The ideal state that many people seek is an emotional zone somewhere between boredom and anxiety, in the view of psychologist Mihaly Csikzentmihalyi.


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14. Organizations need to stay ahead of their competition in their quality and responsiveness to customers including the need for innovation.

Answer: True Page: 8 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.

15. Core competency is the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them.


16. The first “law” of business is “take care of the shareholders.”

Answer: False Page: 8 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: The first law of business is: take care of the customers.

17. Taking care of the customer applies only in for-profit businesses.

Answer: False Page: 8 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.

18. Finding ways to deliver new or better goods or services is called innovation.


19. One of the reasons network television is losing competitive advantage is the fragmentation of the audience occasioned by the change from a “linear” viewing model to an “on-demand” model.

Answer: True Page: 9 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: One of the ways that network television is losing competitive advantage is that the audience is fragmenting due to the change from a “linear” viewing model to an “on-demand” model.


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20. Whereas a generation ago, organizations rewarded employees for their efficiency, today the emphasis is on length of service.

Answer: False Page: 10 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Whereas a generation ago organizations rewarded employees for their length of service, today the emphasis is on efficiency.

21. The mix of American racial and ethnic groups has changed considerably in the last half-century, but has now stabilized.

Answer: False Page: 10 LO: 2 Difficulty: Moderate AACSB: 5 BT: ComprehensionRationale: During the next half-century, the mix of American racial or ethnic groups will change considerably, with the U.S. becoming half minority.

22. To a Grecian, an American goodbye wave gesture is rude.

Answer: True Page: 10 LO: 2 Difficulty: Moderate AACSB: 5 BT: ComprehensionRationale: 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.

23. Gestures and symbols have the same meaning to everyone throughout the world.

Answer: False Page: 10 LO: 2 Difficulty: Moderate AACSB: 5 BT: ComprehensionRationale: 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.

24. The global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world is called the Extranet.


25. E-commerce is the buying and selling of goods or services over computer networks.


26. E-business is using the Internet to facilitate every aspect of running a business.



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27. Text messages and documents transmitted over a computer network are called e-mail.


28. Computerized collections of interrelated files are called “megafiles.”


29. Project management software allows managers to plan and schedule the people, costs, and resources to complete a project on time.

Answer: True Page: 11 LO: 2 Difficulty: Easy AACSB: 4 BT: Comprehension

30. Accelerated decision making, conflict, and stress are some of the implications of e-business.

Answer: True Page: 11 LO: 2 Difficulty: Medium AACSB: 4 BT: KnowledgeRationale: One of the implications of e-business is accelerated decision making, conflict, and stress. The Internet not only speeds everything up, it also can overwhelm us with information, much of it useful, much of it not.

31. Telecommuting means working from home or remote locations using a variety of information technologies.


32. Meetings that are conducted via videoconferencing, use video and audio links along with computers to let people in different locations see, hear, and talk with one another.


33. Collaborative computing involves using state-of-the-art computer software and hardware to help people work better together.


34. Knowledge management is the implementation of systems and practices to increase the sharing of knowledge and information throughout an organization.



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35. In the United States, white-collar crime is significantly on the decline.

Answer: False Page: 12 LO: 2 Difficulty: Moderate AACSB: 2 BT: ComprehensionRationale: 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.

36. Many people simply don’t find being a manager fulfilling because they can’t do enough for their employees given the other demands on their time.

Answer: True Page: 12 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Many people simply don’t find being a manager fulfilling. They may complain that they have to go to too many meetings, that they don’t do enough for their employees, and that they are caught in the middle between bosses and subordinates.

37. One’s experience in management is greatly affected by the company’s culture.

Answer: True Page: 12 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Culture, or style, is indeed an important matter, because it affects your happiness within an organization.

38. The “management process” is the same as the “four management functions.”


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.


40. When a manager is setting goals, he is involved in the management function of organizing.


41. Organizing is the arranging of tasks, people, and other resources to accomplish work.


42. Controlling includes taking corrective actions on problems that a manager observes.



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43. “Knowledge workers” have very little technical skill.


44. Fortunately, everyone who works in an organization is a manager.

Answer: False Page: 15 LO: 4 Difficulty: Medium AACSB: 3 BT: ComprehensionRationale: Not everyone who works in an organization is a manager, of course, but those who are may be classified into three levels—top, middle, and first-line.

45. There are managers at three levels of an organization: top, middle, and first-line.


46. Middle managers make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it.


47. 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.


48. A first-line manager directs the daily tasks of nonmanagerial personnel.


49. A manager of Marketing is a general manager.


50. A “Chief Operating Officer” of an organization is likely to be a first-line supervisor.

Answer: False Page: 17 LO: 4 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: A first-line supervisor makes short-term operating decisions, directing the daily tasks of nonmanagerial personnel. A Chief Operating Officer is a high-level general manager who oversees the operations of the firm.


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51. A functional manager is responsible for several organizational activities.


52. The main purpose of a nonprofit organization is to make a profit.

Answer: False Page: 18 LO: 4 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: The purpose of nonprofit organizations is to offer services to some clients, not to make a profit.

53. Managers tend to work long hours, but at a relatively leisurely pace.

Answer: False Page: 19 LO: 5 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Managers tend to work long hours at an intense pace.

54. Managers rely more on written than on oral communication.

Answer: False Page: 19 LO: 5 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Managers rely more on verbal than on written communication.

55. E-mail helps managers to concentrate on the important tasks in their day.

Answer: False Page: 19 LO: 5 Difficulty: Moderate AACSB: 4 BT: ComprehensionRationale: All the e-mail, cell phone calls, text messaging, and so on can lead people to end up “concentrating on the urgent rather than the important,” according to Ed Reilly, head of the America Management Association.

56. Time and task management are major challenges for every manager.

Answer: True Page: 20 LO: 5 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: It is clear from Mintzberg’s work that time and task management are major challenges for every manager.

57. According to Mintzberg, the three types of managerial roles include interpersonal, collaborational, and decisional.



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58. Managerial stars keep their priorities straight by seeing projects through the eyes of the stockholders.

Answer: False Page: 21 LO: 5 Difficulty: Hard AACSB: 3 BT: ComprehensionRationale: Stars like Microsoft’s Chris Peters keep their priorities straight by seeing projects through the eyes of the customers or the coworkers who depend on them.

59. Successful CEOs do not multitask.

Answer: True Page: 21 LO: 5 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Successful CEOs do not multitask, which is an attempt to defy the brain’s natural inability to concentrate on two things at once.

60. The interpersonal roles of a manager include only leader and liaison activities.


61. A manager, in a spokesperson role, needs to constantly disseminate important information to employees, as via email and meetings.


62. Decisional managerial roles include entrepreneur roles, monitor roles, resource allocator roles, and negotiator roles.


63. Entrepreneurship means taking risks to create a new enterprise.


64. Two types of entrepreneurship include the extrapreneur and the intrapreneur.


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: ComprehensionRationale: One of the most famous instances of intrapreneurship occurred at 3M Corp, when 3M employee Art Fry conceived of Post-it Notes.


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66. Being an entrepreneur is what it takes to grow or maintain a business while being a manager is what it takes to start a business.


67. Opportunity entrepreneurs are those who start their own business out of a burning desire rather than because they lost a job.


68. To deal with ambiguous problems with far-reaching potential, a manager needs technical skills.

Answer: False Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.

69. Human skills are critical for first level and middle managers, but not for top managers.

Answer: False Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Human skills consist of the ability to work well in cooperation with other people to get things done. These skills are necessary for managers of all levels.

Multiple Choice Questions

70. Which of the following are examples of Kelley’s “star strategies”?A) ReflectivenessB) Self-controlC) FocusD) Show and tellE) Cooperation

Answer: D Page: 3 LO: 1 Difficulty: Medium AACSB: 3 BT: ComprehensionRationale: Kelley’s “star strategies” include: initiative, networking, self-management, perspective, followership, leadership, teamwork, organizational savvy, and show and tell.


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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

F) employment. G) management. H) career planning. I) competitive advantage. J) strategic planning.

Answer: B Page: 4 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge

72. A group of people who work together to achieve some specific purpose is/are calledA) managers.B) employees. C) a team. D) an organization.E) a community.

Answer: D Page: 4 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge

73. To be _____________ means to use resources wisely and cost-effectively. A) efficient B) effective C) multiplied D) ethical E) innovative

Answer: A Page: 5 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge

74. To be ______________ means to make the right decisions and successfully carry them out to achieve goals.

A) efficient B) effective C) multiplied D) ethical E) innovative



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75. 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) organizationB) managerialC) multiplier D) halo E) Hawthorne

Answer: C Page: 6 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge

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: ComprehensionRationale: “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.

77. Which of the following is a payoff of studying management as a discipline?A) You will understand how to choose target markets.B) You will understand how to relate to your family much better.C) You will understand how to market the organization.D) You will understand how to advance your career quickly.E) You will understand how to manage yourself in the workplace.

Answer: E Page: 7 LO: 1 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.


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78. Which of the following is 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 effortsE) All of the above are rewards of being a manager.

Answer: E Page: 7 LO: 1 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.

79. Which of the following is a challenge facing managers? A) staying ahead of competitors through replicationB) managing to achieve the manager’s own happiness and life goalsC) remembering what worked in the pastD) dealing with accelerated decision making, conflict, and stressE) collaborating with competitors

Answer: B Page: 8 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.

80. The ability of an organization to produce goods or services better than its competitors is called its

A) customer responsiveness. B) core competency. C) competitive advantage. D) efficiency. E) effectiveness.



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81. The first law of business is A) take care of the customer. B) take care of your employees. C) take care of your stockholders. D) take care of the community. E) take care of the environment.


82. An organization must stay ahead of their competitors in all of the following areas exceptA) being responsive to customers. B) innovation.C) quality. D) white-collar organization.E) efficiency.

Answer: D Page: 8 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.

83. Finding ways to deliver goods or services as quickly as possible using as few resources as possible is called

A) innovation. B) efficiency. C) effectiveness. D) organizing.E) quality improvement.


84. During the next half-century, the percentage of whites in the population is expected to ____________, and the percentage of Hispanics is expected to ________.

A) increase, increase B) increase, decrease C) decrease, increase D) increase, stay the same E) stay the same, increase

Answer: C Page: 10 LO: 2 Difficulty: Moderate AACSB: 5 BT: ComprehensionRationale: Nonhispanic whites are projected to decrease from 69% of the population at the turn of the 21st century to 50% in 2050. Hispanics are expected to increase from 13% to 24%.


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85. ______ is the implementation of systems and practices to increase the sharing of knowledge and information throughout an organization.

A) Knowledge management B) Information managementC) E-management D) Project management E) Software management


86. Amy is in charge of the company newsletter. She provides the newsletter by both e-mail and hard copy to each employee. In the newsletter she includes changes in company policy, awards employees have received, and general interest articles about the company staff. Amy is participating in

A) Information managementB) E-managementC) Project managementD) Knowledge managementE) Software management

Answer: D Page: 11 LO: 2 Difficulty: Hard AACSB: 3 BT: ApplicationRationale: Knowledge management is the implementation of systems and practices to increase the sharing of knowledge and information throughout an organization. This is exactly what Amy does with the newsletter.

87. The company’s culture most directly affectsA) 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.

Answer: A Page: 12 LO: 2 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.


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88. Which of the following is a function of management? A) Planning B) Following C) Scheduling D) Destiny control E) Statistical quality control


89. What you as a manager do to “get things done” is called A) the management process. B) efficiency. C) effectiveness. D) goal setting. E) strategy.


90. Setting goals and deciding how to achieve them is called A) planning. B) organizing. C) leading. D) controlling. E) managing.


91. Arranging tasks, people, and other resources to accomplish the work is called A) planning. B) organizing. C) leading.D) controlling. E) managing.


92. Motivating and directing people to work hard to achieve the organization's goals is called A) planning. B) organizing. C) leading. D) controlling. E) managing.



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93. Monitoring performance and taking corrective action as needed is called A) planning. B) organizing. C) leading. D) controlling. E) managing.


94. A manager at a Pharmaceutical company is attempting to determine which type of people to hire. This is an example of

A) planning. B) organizing. C) leading.D) controlling.E) marketing.

Answer: A Page: 13 LO: 3 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Planning is defined as setting goals and deciding how to achieve them. Good decisions such as which type of people to hire help the manager in achieving company goals.

95. An administrator at a college is deciding whether English professors should teach specialized courses or teach a variety of English courses. This is an example of

A) planning. B) organizing. C) leading. D) controlling. E) leadership.

Answer: B Page: 14 LO: 3 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Organizing is defined as arranging tasks, people, and other resources to accomplish the work. This would include decisions around what English professors should teach.


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96. A team manager is inspiring her team to think of ideas that will put them first in sales among all departments in the retail store in which her team works. This is an example of

A) planning. B) organizing. C) leading. D) controlling.E) leadership.

Answer: C Page: 14 LO: 3 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Leading is defined as motivating, directing, and otherwise influencing people to work hard to achieve the organization’s goals.

97. A manager at a department store is trying to figure out why an employee recruitment effort is not performing as expected. This is an example of

A) planning. B) organizing. C) leading. D) controlling. E) leadership.

Answer: D Page: 14 LO: 3 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Controlling is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. The manager had compared hiring with goals and is now trying to get to the cause of not meeting his goals. He will then take corrective action to reach those recruitment goals.

98. In organizations, there are managers at ___________ levels.A) oneB) twoC) three D) fourE) five



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99. Why did Peter Drucker compare knowledge workers to concert musicians?A) He loved classical music and enjoyed making these comparisons.B) He felt the workplace of the future may resemble a symphony orchestra with

employees the musicians and managers as conductors.C) He believed music in the workplace would eventually help workers to achieve

their very best work.D) He believed both concert musicians and knowledge workers need to be creative to

succeed.E) All of the above are reasons Peter Drucker compared knowledge workers to

concert musicians.

Answer: B Page: 15 LO: 4 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: 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.

100. Very large companies typically use which form of management structure?A) flatB) traditional management pyramidC) management squareD) corporate triangle formE) linear

Answer: B Page: 15 LO: 4 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: The traditional management pyramid shows levels and areas of management. Large companies need to use all levels of management to reach their goals.

101. Employees who have a great deal of technical skills are called: A) first line managers. B) knowledge workers. C) blue-collar workers. D) white-collar workers. E) self-managing workers.



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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.B) blue-collar worker.C) self-managed worker.D) first-line worker.E) first line manager.

Answer: A Page: 15 LO: 4 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: 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. B) middle managers. C) first-line managers. D) general managers. E) functional managers.


104. Managers who make strategic and long-term decisions about the overall direction of the organization are most likely to be

A) first-line managers. B) middle managers. C) top managers. D) functional managers. E) general managers.


105. GE CEO Jeffrey Immelt is aA) first-line manager.B) middle manager.C) top manager.D) functional manager.E) comprehensive manager.

Answer: C Page: 16 LO: 4 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: CEOs such as Immelt are top level managers, those that make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it.


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106. Managers who implement the policies and plans of the organization and coordinate the activities of lower levels are called

A) first level managers. B) middle managers. C) top managers. D) functional managers. E) general managers.


107. John is a plant manager for Proctor & Gamble who implements the policies of P & G in his plant. His plant makes diapers and other baby-related products. John is most likely a

A) first-line manager.B) middle manager.C) top manager.D) functional manager.E) coordination manager.

Answer: B Page: 16 LO: 4 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: 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 “plant manager” for example.

108. Managers who make short-term operating decisions and direct the daily tasks of the organization are called

A) first line managers. B) middle managers. C) top managers. D) functional managers. E) general managers.


109. A ______ manager is responsible for just one organizational activity.A) first-line B) functional C) top-levelD) CEO as a E) general



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110. __________ organizations are voluntary collections of members whose purpose is to advance members’ interests.

A) for-profitB) nonprofitC) administrativeD) mutual-benefitE) aid-based


111. A & H Farm Cooperative advances its members’ interests by providing a place for the members to sell their produce. A & H is which type of organization?

A) for-profitB) nonprofitC) administrativeD) mutual-benefitE) aid-based

Answer: D Page: 18 LO: 4 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Mutual-benefit organizations are voluntary collections of members such as a farm cooperative whose purpose is to advance members’ interests.

112. The measure of success of a nonprofit organization isA) ROI.B) the money that is earned.C) the effectiveness of the services delivered.D) the number of services delivered.E) the profit of the organization.

Answer: C Page: 18 LO: 4 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: In a nonprofit organization, although income and expenditures are very important concerns, the measure of success is usually the effectiveness of the services delivered.


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113. Which of the following statements about a manager’s life is true according to Henry Mintzberg?A) Managers work long hours.B) Managers work at an intense pace.C) Managers’ work is characterized by fragmentation.D) Managers rely more on verbal than on written communication.E) All of the above statements are correct.

Answer: E Page: 19-20 LO: 5 Difficulty: ModerateAACSB: 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.

114. Which of the following is an example of an interpersonal role?A) Negotiator B) SpokespersonC) EntrepreneurD) Figurehead E) Monitor


115. Which of the following is an example of an informational role?A) Disturbance handler B) LeaderC) SpokespersonD) LiaisonE) Resource allocator


116. According to Mintzberg's work, which of the following is a type of role that managers play? A) Analytical B) Interrogatory C) InterdependentD) Decisional E) All of these are managerial roles according to Mintzberg.



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117. When managers interact with suppliers in solving quality problems, they are operating in the _______ role.

A) interpersonal B) informational C) decisional D) analytical E) visionary

Answer: A Page: 22 LO: 5 Difficulty: Hard AACSB: 3 BT: ApplicationRationale: When managers are in their interpersonal managerial roles they interact with people inside and outside (suppliers) their work units. As a liaison managers work to develop alliances that will help them achieve the organization’s goals (such as solving the quality problem.)

118. Pat, a manager, is showing potential customers around the company facility. Pat is performing the __________ role.

A) leadership B) figurehead C) liaison D) technical E) entrepreneur

Answer: B Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: In a figurehead role, the manager shows visitors around the company. He or she performs symbolic tasks that represent the organization. Pat is performing a symbolic task to represent the organization.

119. Betty, a manager, is training new employees of the firm who will be working for her. Betty is performing the __________ role.


Answer: A Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Leadership is expressed in Betty’s decisions about training.


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120. Chris, a manager, attends meetings of the local city government council to lobby for tax breaks for his company. Chris is performing the ________ role.


Answer: C Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: In a liaison role, Chris must act like a politician, working with other people outside the work unit and organization to develop alliances that will help her achieve the organization’s goals such as tax breaks.

121. When managers collect data from other people, they are operating in the ______ role. A) interpersonal B) informational C) decisional D) analytical E) visionary

Answer: B Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: As a monitor, a manager should be constantly alert for useful information, whether gathered from newspaper stories about the competition or gathered from snippets of conversation with subordinates met in the hallway.

122. Over breakfast, Jordan, a manager, scans the Wall Street Journal for information relevant to his company's industry. Jordan is performing the ________ role.

A) disseminator B) entrepreneur C) monitor D) spokesperson E) visionary

Answer: C Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Jordan is being alert for useful information relevant to the company—the monitor role.


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123. Riya, a manager, calls a meeting of her subordinates to tell them about the new benefits package. Riya is performing the ________ role.

A) disseminator B) monitor C) spokesperson D) negotiator E) resource allocator

Answer: A Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Riya is disseminating important information to subordinates.

124. Raj is assigned to hold a press conference that discusses the company's plans to build a new plant. Raj is performing the _________ role.

A) disseminator B) monitor C) liaison D) spokesperson E) figurehead

Answer: D Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Raj is acting as the organization's representative and presenting the organization in a positive light—the spokesperson role.

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.B) interpersonal role.C) decisional role.D) analytical role. E) visionary role.

Answer: C Page: 21 LO: 5 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Decisional roles require managers to use information to take decisions to solve problems or take advantage of opportunities.


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126. Bianca is establishing a suggestion system that rewards employees for their ideas to save the company money. She is acting in the __________ role.

A) entrepreneur B) disturbance handler C) resource allocator D) negotiator E) liaison

Answer: A Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Bianca is encouraging change and innovation through the use of the suggestion system, the entrepreneur role.

127. Allen is down on the factory floor helping to clear up a problem that occurred on the assembly line. He is acting in the ________ role.

A) entrepreneur B) disturbance handler C) resource allocator D) negotiator E) liaison

Answer: B Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Allen is fixing a problem that has arisen; he is acting as a disturbance handler.

128. Marie is deciding how much budget each of the departments she managers will receive next year. She is operating in the ___________ role.

A) entrepreneur B) resource allocator C) disturbance handler D) negotiator E) liaison

Answer: B Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Marie is allocating the resource of money to various subunits.


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129. Melvin, leader of a task force, is in the Marketing Department manager's office attempting to convince him to allow a particular member of the department to work on the task force. Melvin is operating in the _______________ role.

A) entrepreneur B) resource allocator C) disturbance handler D) negotiator E) liaison

Answer: D Page: 22 LO: 5 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Melvin is attempting to negotiate with another manager for a resource.

130. __________ means taking risks to create a new enterprise.A) EntrepreneurshipB) Sole proprietorshipC) Partnership creationD) Joint venturingE) Acquisition


131. The belief that you control your own destiny is calledA) internal locus of control.B) entrepreneurship.C) intrapreneurship.D) external locus of control.E) manifest destiny.


132. All of the following are characteristics of an entrepreneur EXCEPTA) high need for achievement B) ability to maintain a businessC) belief in personal control of destiny D) high energy level and action orientedE) self confidence

Answer: B Page: 26 LO: 6 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: 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.


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133. An entrepreneur who starts their own business out of a burning desire rather than because they lost a job is called a/an ________.

A) necessity entrepreneur B) motivated entrepreneurC) opportunity entrepreneur D) abnormal entrepreneurE) chance entrepreneur


134. According to Katz, which of the following principal skills is one that managers need? A) intuitionB) evaluativeC) human D) comprehensiveE) coordination

Answer: C Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Robert Katz found that through education and experience managers acquire three principle skills—technical, conceptual, and human.

135. __________ skills consist of the job-specific knowledge needed to perform well in a specialized field.

A) Technical B) Conceptual C) Human D) Physical E) Evaluative


136. Jo, a managing partner of an accounting firm, understands tax law. This means she has a ______________ skill.

A) technical B) conceptual C) human D) physical E) intuitive

Answer: A Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: In this case, knowledge of tax law is a job-specific or technical skill.


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137. The ability to think analytically is associated with _______________ skills. A) technical B) conceptual C) human D) physical E) intuitive


138. Robert has a picture in his mind of the whole process by which his company produces applesauce. This is an example of a ______________ skill.


Answer: B Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: This reflects Robert’s ability to understand how the parts of his organization work together.

139. Conceptual skills are particularly important for _____________ managers. A) first-line B) middle C) top D) functional E) general

Answer: C Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Top managers must deal with ambiguous problems that require a conceptual understanding.

140. __________ skills consist of the ability to work well in cooperation with other people to get things done.




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141. José, a manager, has an open door policy and encourages his staff to drop in whenever they have a question. José is exercising ______ skills.

A) technical B) conceptual C) human D) intuitive E) liaison

Answer: C Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ApplicationRationale: Human skills consist of the ability to work well in cooperation with other people to get things done. José’s policy reflects the ability to interact well with people.

142. Human skills are particularly important for ________ managers. A) top B) middle C) first-line D) independentE) all types of

Answer: E Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: Human skills are necessary for managers of all levels.

143. Which of the following is a chief skill companies seek in top managers?A) the ability to motivate and engage othersB) the ability to communicateC) work experience outside the U.S.D) high energy levels to meet the demands of global travel and a 24/7 worldE) All of the above are chief skills companies seek in top managers.

Answer: E Page: 27 LO: 7 Difficulty: Moderate AACSB: 3 BT: ComprehensionRationale: All of the choices listed in the question are traits that companies seek in top managers.

Essay Questions

144. Explain what is meant by the “multiplier” effect that managers have.

Page: 6 LO: 1 Difficulty: Easy AACSB: 3 BT: Knowledge

Answer: The “multiplier” effect means is that a manager's influence is multiplied far beyond the results that could be achieved by just one person acting alone.


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145. What is competitive advantage? What are the areas within which an organization needs to obtain competitive advantage? Explain what each of these areas means for an organization.

Page: 8 LO: 1 Difficulty: Moderate AACSB: 3 BT: Comprehension

Answer: 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 getter 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.

146. 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 yourself in the future.

Page: 12 LO: 2 Difficulty: Difficult AACSB: 3 BT: Application

Answer: 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 affect them (or not) in the future.


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147. Identify and describe the four managerial functions. Give a specific example of each from an organizational situation you have personally experienced.

Page: 13-14 LO: 3 Difficulty: Moderate AACSB: 3 BT: Application

Answer: 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 from his or her experience.

148. Describe what top-level managers do.


Answer: 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 be3 future oriented, dealing with uncertain, highly competitive conditions.

149. List Mintzberg's findings about the nature of managerial work.

Page: 19-20 LO: 5 Difficulty: Easy AACSB: 3 BT: Knowledge

Answer: 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.

150. List the characteristics that most entrepreneurs have.


Answer: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.


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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.


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TB Ch01 Revised

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Transcript of TB Ch01 Revised