Deck 6: The Nature of Management

Question 1

Any organization requiring the coordination of resources requires management.

Answer 1

True

Question 2

Directing involves forecasting events and determining the best course of action from a set of options or choices.

Answer 2

False

Question 3

Grace manages a beach rental kiosk. Her goal is to run this business in such a way that she achieves the desired result, making a profit and providing her customers with the items they need to enjoy their vacation. Thus, her primary managerial concern is

A) efficiency.
B) effectiveness.
C) standardization.
D) innovation.
E) expertise.

Answer 3

effectiveness.

Question 4

Wes is a manager at a large investment banking firm. The firm is expanding, and he is tasked with hiring more people to carry out the organization's increased workload. Wes must also determine what to pay the new hires and develop a plan to train them. Wes is engaged in

A) factoring.
B) directing.
C) organizing.
D) staffing.
E) supplying.

Question 5

Bradley is a manager at a company that has made the difficult decision to downsize. After his company eliminated 50 employees, what must Bradley do to effectively manage his remaining employees and help them through the situation?

A) promote optimism and positive thinking
B) commiserate with his employees
C) make sure his employees know that the company, not him, is to blame
D) encourage his employees to look for employment elsewhere
E) give his employees expensive gifts to encourage them to stay

Question 6

The Electronics Warehouse wants to make sure its products are always available to customers. Since the company sells many electronic products, including computers, televisions, printers, and gaming equipment, it will need many diverse ________ to maximize efficiencies and provide creative solutions to help the company reduce expenses and reach its objectives.

A) customers
B) managers
C) investors
D) locations
E) suppliers

Question 7

To earn a profit, managers must acquire, coordinate, and control all of the following resources EXCEPT

A) competitive products.
B) people.
C) services.
D) money.
E) raw materials and equipment.

Question 8

Ross is one of the senior managers of a large company. He is part of a team that determines the objectives of the company based on future trends in the industry and decides how to accomplish them. Ross is involved in the management function of

A) staffing.
B) recruiting.
C) planning.
D) directing.
E) factoring.

Question 9

Which management function is crucial because it lays the foundation for all other management functions?

A) planning
B) organizing
C) staffing
D) controlling
E) directing

Question 10

Marla manages an online shoe store. She must determine what her company's warehouses and distributing facilities need and which type of automation can maximize order efficiency. What major phase of the planning process does this example describe?

A) data gathering
B) event forecasting
C) objective setting
D) action taking
E) option selecting

Question 11

Jake starts his own catering business. He creates a website for the business, which states that his purpose is to provide his customers with delicious food at a fair price. For Jake's company, this is its

A) statement of operations.
B) mission statement.
C) business plan.
D) operating agenda.
E) target statement.

Question 12

Vince starts his own tutoring business. He wants to write a good mission statement that explains his company's reason for existence. What is one guideline he should follow in writing his mission statement?

A) It should be long and include complex details.
B) It should be written in technical industry jargon.
C) It should answer every question its customers could ever want answers to.
D) It should be short and vague.
E) It should be clear and concise.

Question 13

Naveen is part of the planning team in his organization that is working to develop the firm's mission statement. The team knows that along with describing the business and identifying its customers, the team should also articulate the business's operating philosophy and list any core competencies the business has. What other item should Naveen and his team include in the mission statement?

A) how the business will be financed
B) a detailed plan of how the firm plans to grow in the future
C) the firm's organizational hierarchy and management structure
D) the firm's responsibilities with respect to being a good steward of environmental, financial, and human resources
E) a complete listing that answers every possible question that customers could have about the firm's processes and products

Question 14

Which of these basic questions will be answered by a well-developed mission statement?

A) Who are our customers?
B) How do we expand our business?
C) How do we acquire customers?
D) Who are our competitors?
E) What products do we sell?

Question 15

Joey's jewelry business has grown from a small startup in his basement to a chain of outlets all over the state. His business has the potential to expand further, provided he has the resources. To attract investors and other resources, he creates a mission statement for his company. He highlights that his gems come from countries with fair labor practices. Which basic question of a well-developed mission statement is he addressing?

A) What are our responsibilities with respect to being a good steward of environmental, financial, and human resources?
B) When do we plan to go international?
C) Who are our stockholders?
D) Who are our competitors?
E) How will we source our products?

Question 16

Chip owns a scuba shop in Australia. His business is doing well, catering to local divers and tourists who want to learn to dive. He has developed a strong organizational culture, a good marketing plan, and a coherent business strategy. What serves as the foundation for developing these strengths?

A) a financial plan that takes into account both current and future needs
B) a mission statement that delivers a clear answer to the five basic questions
C) an elaborate set of business goals
D) a set of clear and measurable objectives
E) a target to be achieved

Question 17

A firm's ________ should contain three key components: an attribute sought, a target to be achieved, and a time frame.

A) mission statement
B) operating philosophy
C) competitive advantage
D) agenda
E) goals

Question 18

Trevor is setting goals for his sales team. What should Trevor keep in mind when developing his goal?

A) He should not overwhelm the sales team with multiple goals.
B) Like a mission statement, any goal should answer five basic questions.
C) He should make sure any goal states exactly what is to be achieved.
D) He should keep his goals broad in nature so they can easily be changed.
E) Attaching a time frame to a goal will be less motivating for his sales team.

Question 19

What should be kept in mind when setting company goals?

A) A company can have only one goal that combines all elements of its mission statement.
B) A goal is defined as a declaration of a company's fundamental purpose and basic philosophy.
C) Once a goal is set, companies typically do not need to review the goal or monitor progress against the goal set.
D) A goal merely states what a company seeks to achieve without stipulating any standards of quality or amount of time needed to reach the goal.
E) A goal has three key components: an attribute sought, a target to be achieved, and a time frame in which the goal is to be achieved.

Question 20

Howie's hot dog stand wants to earn a profit and satisfy its customers. As a result, it has developed several signature hot dogs that use quality ingredients and mix inventive flavors. What key component of a goal is this example most closely related to?

A) a target
B) a time frame
C) an attribute
D) an objective
E) a mission

Question 21

Melvin's fishing store has profit as an objective. As a result, he wants to have

A) unlimited liability.
B) money and assets left over after paying off business expenses.
C) the ability to promote diversity.
D) time to release new products in the marketplace.
E) the ability to evaluate opportunity costs.

Question 22

Get Fit Gym wants to make the best use of its resources. As a result, the company hires college students to work at the front desk, so personal trainers can focus on helping members in the gym and teaching fitness classes. What type of objective is the most relevant to this example?

A) efficiency
B) profit
C) growth
D) competitive advantage
E) sales

Question 23

Nellie's Sweet Shop, a large candy store, has historically sold a lot of chocolate and gummy candies. However, over the years, people have become more health conscious. As a result, Nellie's develops a new line of sugar-free candies that taste as good as the original but without the guilt. What type of objective does this exemplify?

A) sales
B) competitive advantage
C) profit
D) efficiency
E) growth

Question 24

The top management of Darryl's Detailing Center decides that the company's objective for the next two years will be to expand the overall business to include locations in other states. This is an example of ________ planning.

A) functional
B) static
C) strategic
D) tactical
E) operational

Question 25

School Works, a large publisher of educational resources, decides to sell its high school division because it isn't as profitable as the elementary school division. This will allow the company to focus its efforts and funds on becoming the leading elementary school publisher. What type of plan is this?

A) incremental
B) tactical
C) strategic
D) operational
E) static

Question 26

Strategic plans generally cover a time frame of

A) three to six months.
B) six months to a year.
C) longer than five years.
D) one to three months.
E) one year or longer.

Question 27

All of the following are true of strategic plans EXCEPT

A) must take into account the organization's capabilities and resources.
B) should be market-driven.
C) must take into account the changing business environment.
D) must take into account the organizational objectives.
E) can be developed by any manager in a firm.

Question 28

What is a difference between strategic and tactical plans?

A) Strategic plans are short term, while tactical plans are long term.
B) Strategic plans are long term, while tactical plans are short term.
C) Strategic plans cover a period of one year or less, while tactical plans cover a period of one year or more.
D) Strategic plans are narrow in scope, while tactical plans are broader.
E) Strategic plans are easier to adjust or abandon than tactical plans.

Question 29

What type of plan helps keep the organization on the course established in the strategic plan?

A) contingency plans
B) implementation plans
C) tactical plans
D) static plans
E) operational plans

Question 30

Easy Does It, a home improvement store, has a strategic plan to open a new store next year. As a result, it develops a plan to determine what needs to be accomplished in order to get the new store up and running. This is a ________ plan.

A) contingency
B) tactical
C) static
D) operational
E) growth

Question 31

The top management of Clear Chemical Inc. creates a strategic plan to enter new product markets within a period of five years. The company's middle management creates six-month plans to ensure that the objectives of the strategic plan are properly implemented. Along with these plans, each department creates short-term plans that specify the actions to be taken by specific employees and teams to meet the objectives of the strategic plan and the six-month plans. These short-term plans established at the departmental level are referred to as

A) operational plans.
B) contingency plans.
C) static plans.
D) tactical plans.
E) executive-level plans.

Question 32

Stan works in the supply warehouse for a large manufacturing facility. Each day, Stan is given a production quota. This ensures that enough materials will be available for the next day's production run, so the company can increase its product availability and be able to ship products faster than any other company. A production quota is an example of a(n)

A) operational plan.
B) tactical plan.
C) contingency plan.
D) static plan.
E) assembly plan.

Question 33

What is an example of an operational plan?

A) A motorcycle dealership's highest managers develop a plan to add a new bike model over the course of two years.
B) Two large entertainment companies merge, and the newly combined company plans to spin off into three separate units focusing on movies, music, and comedy clubs over a four-year period.
C) A work group at a large manufacturing plant is assigned a weekly production quota to ensure there are sufficient products available to elevate market share and ultimately help the firm be number one in its product category.
D) A large book store plans to find ways to increase traffic to its social media site and promote premium instructor and student materials to those who visit the site.
E) An office supply store plans to open four new stores over a three-year period, creating three separate year-long plans to specify how much to spend to set up each store, where to locate, and when to open each new store.

Question 34

A huge fire broke out in Fancy Fixtures, a small home decorating store. The fire destroyed the store's inventory, and ultimately, the company went out of business. What is most likely the reason this company went out of business?

A) Fancy Fixtures's top management team couldn't come up with a favorable solution to this crisis.
B) Competing home decor stores refused to help Fancy Fixtures restore its operations.
C) All of Fancy Fixtures's managers had to focus on crisis management, so their regular duties were neglected.
D) The owners of Fancy Fixtures decided not to respond to the crisis.
E) Fancy Fixtures didn't have an updated contingency plan to handle such a crisis.

Question 35

What is true regarding crisis management?

A) Many companies have crisis management teams to deal specifically with problems, permitting other managers to continue to focus on their regular duties.
B) Once a company develops a crisis management plan, it never needs to reevaluate that plan.
C) Even the most prepared company can't plan for how to react to every type of disaster.
D) It is important to respond privately and deliberately when a disaster occurs.
E) Approximately 85 percent of businesses fail to reopen after a serious disaster because most companies don't make appropriate crisis management plans.

Question 36

Pamela manages a large blood donation facility. One of her roles is structuring the company's resources and activities to accomplish its objectives efficiently and effectively. What management function does this example pertain to?

A) evaluating
B) organizing
C) directing
D) controlling
E) factoring

Question 37

Vanessa works for a large cable company and is the manager for its service and repair team. Each day Vanessa reviews the list of job orders and locations of each job. She divides the job orders among her repair team so the jobs are completed in the most efficient manner possible based on where each job is located. What function of management does this represent?

A) planning
B) controlling
C) regulating
D) sequencing
E) organizing

Question 38

Kelli's kitchen appliance company is reorganizing for greater efficiency. How would this company most likely organize the work?

A) around traditional departments
B) around individuals
C) into teams
D) to other managers
E) to independent consultants

Question 39

All of the following are reasons organizing is important EXCEPT

A) eliminates synergy.
B) establishes lines of authority.
C) improves communication.
D) helps avoid duplication of resources.
E) improves competitiveness.

Question 40

Mitch owns a large moving company. Over the years, the market has changed, and Mitch has had to adapt how he structures his resources and activities to continue to accomplish his business objectives efficiently and effectively. What does this scenario demonstrate?

A) organizing occurs continuously
B) organizing duplicates resources
C) organizing slows down decision making
D) organizing only occurs once
E) organizing rarely occurs

Question 41

Emma manages workflow at a magazine. She sets and implements the deadlines and encourages the writers and editors to do their work. What managerial function is Emma fulfilling?

A) controlling
B) planning
C) organizing
D) directing
E) goal setting

Question 42

Frieda is a sales manager for a uniform supply company. Her favorite part of the day is when she gets to interact one-on-one with her employees motivating them, providing leadership, and rewarding them for doing their jobs well. Frieda enjoys the ________ function of management.

A) organizing
B) directing
C) staffing
D) controlling
E) authority

Question 43

Jaclyn manages a fast food restaurant. One day, while sitting in the restaurant taking her break, she hears a group of customers complaining about how slow the service has been getting and that they may have to stop eating there. What is the most effective control action Jaclyn can take to resolve the problem?

A) She can simply take the customers' word for it and discipline her employees.
B) She can fire all the employees and hire new ones.
C) She can watch her employees work to determine the cause of the problem, and then respond appropriately.
D) She can speed up the service by doing all the work herself.
E) She can offer her employees incentives to speed up their work.

Question 44

Kishan is a top-level manager at an accounting firm. He has many years of varied experience and he spends most of his time making strategic decisions about how to use the company's resources. On which management function does he spend most of his time?

A) benchmarking
B) controlling
C) organizing
D) staffing
E) planning

Question 45

Isra manages a small coffee house. In fact, this business is so small that Isra is the only manager. What level manager is Isra?

A) Isra is a first-line manager because small companies have no need for the other management levels.
B) Isra assumes the responsibilities of all three levels.
C) As the only manager, Isra is a top manager, delegating the functions of the other levels to her employees.
D) Isra is a middle manager, which is the most common level of management in small businesses.
E) Isra prefers to be called a supervisor because she wants her employees to have more authority and not be overwhelmed by her management status.

Question 46

What is true of top management compensation?

A) Stockholders and key stakeholders support paying CEOs higher salaries because they recognize the importance of capable leadership.
B) If a company performs poorly, the CEO is given higher pay to motivate him or her to work harder to improve performance.
C) Stakeholders give top management perks and special treatment for doing a good job.
D) Compensation committees are working with boards of directors and CEOs to detach salary from performance because it isn't fair to hold top managers solely responsible for the company's performance.
E) Many firms are trying to align CEO compensation with performance.

Question 47

Kylene is a manager at a large technology company. Since her company wants to serve consumers from fast-growing demographic groups such as Hispanics, African Americans, and Asian Americans, she wants to hire employees from those groups to help make decisions regarding issues related to consumer diversity. All of the following are rules she should follow in diversity recruiting EXCEPT

A) limit hiring to individuals from the chosen demographic groups.
B) show prospective employees that the company is diversity-friendly.
C) educate all employees on the tangible benefits of diversity recruiting to garner their support.
D) spend some money getting the message out to the right places.
E) support community-based diversity organizations.

Question 48

Sven manages the computer department at his company. He helps the organization implement its general guidelines by managing the specific operations related to his department. Sven is a

A) first-line manager.
B) middle manager.
C) top manager.
D) supervisor.
E) chief executive officer.

Question 49

Oliver is a manager at a clothing store. He spends most of his time in the store with his employees, making sure they work their scheduled hours, watching them interact with customers, and ensuring all the daily tasks are completed sufficiently. Oliver is a

A) director.
B) middle manager.
C) top-level manager.
D) first-line manager.
E) chief executive officer.

Question 50

Roger and his team members are primarily responsible for procuring the funds needed for the successful operation of the organization and investing that money to pursue organizational goals. Thus, Roger is a

A) financial manager.
B) production manager.
C) sales manager.
D) human resource manager.
E) marketing manager.

Question 51

Tracy is a manager at a law firm. Part of her role is conducting performance reviews for the paralegals in the office. By doing so, she is fulfilling the managerial role of a

A) disseminator.
B) negotiator.
C) resource allocator.
D) leader.
E) figurehead.

Question 52

Wayne is a manager of a large pharmaceutical firm. He often meets with consumer groups to discuss the safety of the company's new drugs. When he does this, he is acting as a

A) negotiator.
B) monitor.
C) resource allocator.
D) liaison.
E) spokesperson.

Question 53

Lloyd is the manager of the marketing department for a large firm. His department was given 3 new computer systems. Lloyd must determine which of his employees should get the new equipment. By doing so, Lloyd is acting as a

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

Question 54

Daniel is a first-line manager at a heating and cooling company. Because Daniel has worked in the field for over 20 years, he is able to train employees, answer questions, provide guidance, and solve problems. These abilities most closely describe his

A) technical expertise.
B) human relations skills.
C) leadership.
D) analytical skills.
E) conceptual skills.

Question 55

Sean is interviewing for a position at a law firm. In the interview, he is asked: "How would you resolve the issue of successfully arguing a case in which you disagree with our client's position?" Answering this question requires Sean to use

A) technical skills.
B) analytical skills.
C) cognitive skills.
D) social skills.
E) human relations skills.

Question 56

Which trait would be part of a person's human relations skills?

A) the ability to think in abstract terms
B) the ability to understand the relationship between relevant issues
C) the ability to perceive the underlying cause of an issue
D) the ability to think creatively
E) the ability to understand the needs of others

Question 57

Pierre is a manager at a women's clothing store. He is very particular about how things are done, right down to how the shirts are folded and the positioning of the mannequins. He uses his authority and economic rewards to get his employees to comply with his directions. What type of manager is Pierre?

A) authentic
B) democratic
C) free-rein
D) autocratic
E) participative

Question 58

Chippers, a new bar and restaurant, encourages its employees and managers to participate in creating specialty drinks and menu items. This is an example of

A) autocratic leadership.
B) authentic leadership.
C) the use of analytical skills.
D) participative decision making.
E) free-rein leadership.

Question 59

Sounds Deluxe, a stereo and audio electronics company, encourages its employees to work together to make decisions that reinforce the company's mission and values. Each employee brings his or her own unique insights, and by discussing these insights with other employees, they collectively develop innovative ideas or decisions that most likely would not have been reached by one or two people. This scenario explains

A) groupthink.
B) individual innovation.
C) autocratic leadership.
D) free-rein decision making.
E) teamwork.

Question 60

Aiden is assessing the appropriateness of a proposed option to resolve his company's product safety issues. When considering the consequences of the option, he should

A) consider its impact on the organization as a whole.
B) think narrowly about the one department most affected by the decision.
C) disregard the practicality of the options available.
D) choose the option that partially addresses the problem.
E) limit the evaluation to objective procedures.

Question 61

Chrissy wants to develop a list of possible courses of action to draw more customers to her shop, so she calls a meeting of her sales staff. Together, they discuss the issue and suggest ideas to solve the problem. This is called

A) groupthink.
B) brainstorming.
C) analyzing options.
D) moderated discussion.
E) crowdsourcing.

Question 62

Liz manages a large floor refinishing company. She spends a lot of time communicating with a variety of people and participating in activities that do not seem to have much to do with goals of her company but are crucial for getting the job done. What is this called?

A) socializing
B) unprofessional behavior
C) networking
D) procrastinating
E) conflict of interest

Question 63

All of the following are challenges managers confront in the business world today EXCEPT

A) rapidly changing technology.
B) the impact of social media.
C) declining educational standards.
D) the stagnant nature of the workforce.
E) increased global competition.

Question 64

How are managers classified on the basis of their leadership styles?