Exam 19: Professional Management in the Entrepreneurial Firm

You Make the Call-Situation 1 In one small firm, the owner-manager and his management team use various methods to delegate decision making to employees at the operating level. New employees are trained thoroughly when they begin, but no supervisor monitors their work closely once they have learned their duties. Of course, help is available as needed, but no one is there on an hour-to-hour basis to make sure employees are functioning as needed and that they are avoiding mistakes. Occasionally, all managers and supervisors leave for a day-long meeting and allow the operating employees to run the business by themselves. Job assignments are defined rather loosely. Management expects employees to assume responsibility and to take necessary action whenever they see that something needs to be done. When employees ask for direction, they are sometimes simply told to solve the problem in whatever way they think best.

Frequent and flagrant disregard of the chain of command undermines the position of the

Elizabeth Vaughn desires to create an innovative cultural environment within her business. Which one of the following should she not do?

A major goal of business incubators is to promote economic development by providing financial assistance to new businesses.

Please list and describe the four stages of small business growth.

The number of subordinates reporting to one superior constitutes that manager's

It is difficult for entrepreneurs to make the shift from founder to professional manager.

What type of leadership style focuses on creating emotional bonds?

A small business typically lacks the marketing research tools that big corporations have.

List the six distinctive leadership styles identified by Daniel Goleman and his colleagues. Briefly state how each type of leader operates.

An automobile dealer wants to use the modern management concept of work teams. To do so, he should reduce direct supervision in the body shop.

Which of the following is not a necessary characteristic for effective business leadership?

The process of developing and engaging in mutually beneficial relationships with peers is

Discuss the use of employee empowerment and self-managed work teams as leadership approaches.

A monthly production schedule is an example of a

Marcia Mendez, who runs a drapery business, has groups of employees who work in production and in installation. If she decides to use work teams as part of her leadership approach, she must increase

Budgets are usually prepared three years at a time, in advance, with a breakdown of figures for each month or quarter.

Controlling is the managerial function that involves the manager's

What conditions call for the use of a line-and-staff form of organization? Explain the relationship of this form to the principle of unity of command.

Owner-managers of small businesses typically overdo the amount of planning.