Deck 1: The Management Process Today

Question 1

Which of the following defines efficiency of a manager?

A) Choosing appropriate goals and achieving them
B) Justifying time needed to produce a given output of goods
C) Increasing production through greater investment of resources
D) Minimizing the amount of input resources

Answer 1

D
Explanation: Efficiency is a measure of how productively resources are used to achieve a goal. Organizations are efficient when managers minimize the amount of input resources or the amount of time needed to produce a given output of goods or services.

Question 2

Innovation takes place when management centralizes control of work activities and creates an organizational culture that precludes risk taking.

Answer 2

False
Explanation: Innovation, the process of creating new or improved goods and services that customers want or developing better ways to produce or provide goods and services, poses a special challenge. Typically innovation takes place in small groups or teams; management decentralizes control of work activities to team members and creates an organizational culture that rewards risk taking.

Question 3

Turnaround management is the creation of a new vision for a struggling company based on a new approach to planning and organizing to make better use of a company's resources and allow it to survive and prosper.

Answer 3

True
Explanation: Turnaround management is the creation of a new vision for a struggling company using a new approach to planning and organizing to make better use of a company's resources and allow it to survive and eventually prosper. It involves developing radical new strategies such as how to reduce the number of products sold or change how they are made and distributed, or close corporate and manufacturing operations to reduce costs.

Question 4

An organization's efficiency decreases when it reduces the quantity of resources it uses to produce goods or services.

Question 5

Today, the term "chief operating officer" refers to the chief executive officer.

Question 6

Organizations are efficient when managers maximize the amount of input resources.

Question 7

Restructuring involves contracting with another company in a low-cost country abroad to have it perform a work activity the organization previously performed itself.

Question 8

A measure of how productively resources are used to achieve a goal is known as ________.

A) efficiency
B) effectiveness
C) reliability
D) validity

Question 9

Which of the following is an appropriate definition of organizational performance?

A) It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization.
B) It is a measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals.
C) It is an approach to modeling organizations using one-on-one interactions between members of the organization as a proxy for all value-adding activities in the organization.
D) It is a measure of the interaction among the managerial culture, the workplace culture, and the surrounding culture.

Question 10

Not-for-profit sectors are not affected by global competition.

Question 11

An organization's resources include assets such as ________.

A) competitors
B) loyal customers and employees
C) ethical codes
D) performance goals

Question 12

Managers at all levels and in all departments are responsible for planning, organizing, leading, and controlling.

Question 13

Conceptual skills include the general ability to understand, alter, lead, and control the behavior of other individuals and groups.

Question 14

Management includes ________.

A) planning and organizing of resources other than human resources
B) planning, organizing, and leading of resources and controlling them
C) planning and organizing but not leading and controlling
D) leading and controlling but not planning and organizing

Question 15

In contrast to middle managers, top managers are responsible for the performance of specific departments.

Question 16

Restructuring results in the loss of jobs.

Question 17

The number of students competing for places in business courses is on a constant decline.

Question 18

The outcome of organizing is the creation of a strategy.

Question 19

An organization's vision is a short, succinct, and inspiring statement of what the organization intends to become and the goals it is seeking to achieve.

Question 20

Organizations appoint turnaround CEOs when the organizations become more efficient and effective.

Question 21

Which of the following is true of effectiveness?

A) Organizational performance increases in direct proportion to increase in effectiveness.
B) It is a measure of how productively resources are used to achieve a goal.
C) Organizations are effective when managers minimize the amount of input resources.
D) Effectiveness is related to performance but not efficiency.

Question 22

High efficiency/high effectiveness situations result in the production of a ________.

A) high-quality product that customers do not want
B) high-quality product that few customers can afford
C) product that customers want at a quality and price they can afford
D) product of mediocre quality that customers will buy despite its high price

Question 23

What must one do to perform the essential managerial task of controlling in achieving organizational goals?

A) Motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals
B) Choose appropriate organizational goals and courses of action to best achieve those goals
C) Establish task and authority relationships that allow people to work together to achieve organizational goals
D) Establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals

Question 24

A manufacturing company is said to be effective if it ________.

A) uses fewer workers and yet maintains productivity as before
B) takes less time than before to produce a given output
C) sets appropriate goals and achieves them
D) generates employment for a large number of people

Question 25

The formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals is called organizational ________.

A) structure
B) performance
C) goals
D) resources

Question 26

How to allocate organizational resources to pursue the strategies that attain set goals is a question addressed during ________.

A) regulating
B) planning
C) leading
D) controlling

Question 27

In what order do managers typically perform the managerial functions?

A) Organizing, planning, controlling, leading
B) Organizing, leading, planning, controlling
C) Planning, organizing, leading, controlling
D) Planning, organizing, controlling, leading

Question 28

Which of the following describes the essential managerial task of leading in achieving organizational goals?

A) Motivate, coordinate, and energize individuals and groups
B) Evaluate how well the organization has achieved its goals
C) Choose appropriate goals and courses of action
D) Establish task and authority relationships allowing people to work together

Question 29

Which of the following describes organizational performance that results in a high-quality product that customers do not want?

A) Low efficiency and low effectiveness
B) High efficiency and low effectiveness
C) Low efficiency and high effectiveness
D) High efficiency and high effectiveness

Question 30

The goals chosen by the management of Dino's Cafe seemed inappropriate for the store, but the management did make good use of the various resources in pursuing these goals. Dino's Cafe is said to have ________.

A) low efficiency and high effectiveness
B) high efficiency and high effectiveness
C) low efficiency and low effectiveness
D) high efficiency and low effectiveness

Question 31

Low efficiency/high effectiveness situations arise when managers choose ________.

A) wrong goals to pursue and make poor use of resources to achieve these goals
B) right goals to pursue but do a poor job of using resources to achieve these goals
C) right goals to pursue and make good use of resources to achieve these goals
D) wrong goals to pursue and make good use of resources to achieve these goals

Question 32

Low efficiency/low effectiveness situations include ________.

A) the production of a product that customers want, but that is too expensive for them to buy
B) the production of a product that customers want at a quality and price that they can afford
C) managers choosing the wrong goals to pursue and making poor use of resources
D) managers choosing wrong goals but making good use of resources to pursue these goals

Question 33

A measure of the appropriateness of the goals that managers have selected for the organization to pursue and the degree to which the organization achieves those goals is ________.

A) efficiency
B) reliability
C) utility
D) effectiveness

Question 34

Who among the following has achieved the objectives of the essential managerial task of organizing?

A) John, who has chosen appropriate organizational goals
B) Vince, who has set task and authority relationships that allow people to work together
C) Benita, who has determined courses of action to achieve organizational goals
D) Catherine, who has established systems to evaluate goal achievement

Question 35

The essential managerial task of planning involves ________.

A) establishing task and authority relationships such that people work together
B) motivating individuals and groups to work together
C) choosing appropriate goals and courses of action
D) evaluating how well the organization has achieved its goals

Question 36

Managers identify and select appropriate organizational goals and courses of action to perform the ________ task.

A) planning
B) organizing
C) leading
D) controlling

Question 37

Which of the following describes organizational performance that results in a low-quality product that customers do not want?

A) Low efficiency and low effectiveness
B) High efficiency and low effectiveness
C) Low efficiency and high effectiveness
D) High efficiency and high effectiveness

Question 38

Which of the following describes organizational performance that results in a product that customers want at a quality and price that they can afford?

A) Low efficiency and low effectiveness
B) High efficiency and low effectiveness
C) Low efficiency and high effectiveness
D) High efficiency and high effectiveness

Question 39

Which of the four principal managerial tasks can help William understand his performance in the other three tasks?

A) Planning
B) Organizing
C) Controlling
D) Leading

Question 40

Which of the following describes organizational performance that results in a product that customers want, but that is too expensive for them to buy?

A) Low efficiency and low effectiveness
B) High efficiency and low effectiveness
C) Low efficiency and high effectiveness
D) High efficiency and high effectiveness

Question 41

The task of managers to evaluate how well an organization has achieved its goals and to take any corrective actions needed to maintain or improve performance is ________.

A) planning
B) organizing
C) leading
D) controlling

Question 42

A short, succinct, and inspiring statement of what the organization intends to become is an organization's ________.

A) goal
B) strategy
C) vision
D) mission

Question 43

Who among the following has opted for a low-cost strategy?

A) Nivon Flights in their first year are offering tickets cheaper than their competitors.
B) Klaus Ltd. is creating highly innovative products that appeal to different consumers.
C) Baron Blakes has ruled out achievement of economies of scale for its product range.
D) Cantaloupe Farms has decided to invest fewer resources into its marketing ventures.

Question 44

Which of the following describes first-line managers?

A) They are also known as supervisors.
B) They are at the top of the managerial hierarchy.
C) They work in one single department of an organization.
D) They look out for the best way to organize resources.

Question 45

Organizational structure is the formal system of ________.

A) financial management
B) reporting relationships
C) vision articulation
D) goal selection

Question 46

Mark, a manager at Matt's Shack, monitors the work performance of workers in his department to determine if the quality of their work is meeting the standards of the company. Mark is engaging in which of the following managerial functions?

A) Planning
B) Organizing
C) Leading
D) Controlling

Question 47

Which of the following is a responsibility of leadership?

A) Evaluating how well they themselves are performing in leading the organization
B) Encouraging employees to perform at a high level to help the organization achieve its goals
C) Evaluating an organization's success in reaching its goals and taking corrective actions
D) Deciding which goals to measure and then designing control systems for them

Question 48

A formal system of reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals is called an organizational ________.

A) culture
B) structure
C) assimilation
D) chart

Question 49

Which of the following refers to a cluster of decisions concerning what organizational goals to pursue, what actions to take, and how to use resources to achieve these goals?

A) Strategy
B) Value
C) Synergy
D) Mission

Question 50

Which of the following strategies helps an organization to obtain customers by making decisions that allow it to produce goods or services more cheaply than its competitors?

A) Disintermediation strategy
B) Low-cost strategy
C) Centralization strategy
D) Differentiation strategy

Question 51

Susan, the CEO of United Group Ltd., reviews the performance of her company in the past month's Profit & Loss Statement to determine if the company is on pace to meet the planned sales and profitability goals. Susan is engaged in which of the following managerial functions?

A) Planning
B) Organizing
C) Controlling
D) Leading

Question 52

Which of the following processes gives managers the ability to measure performance accurately and regulate organizational efficiency and effectiveness?

A) Controlling
B) Planning
C) Organizing
D) Leading

Question 53

If Lucas has opted for a differentiation strategy, which of the following courses of action is he taking?

A) Selling goods at lower prices than rivals
B) Reaping benefits from economies of scale
C) Innovating products for different consumers
D) Opting for low-cost country sourcing

Question 54

The process of structuring working relationships so that organizational members interact and cooperate to achieve organizational goals is known as ________.

A) planning
B) leading
C) controlling
D) organizing

Question 55

Which of the managerial functions involves managers using their power, personality, influence, persuasion, and communication skills to coordinate people and groups so that their activities and efforts are in harmony?

A) Leading
B) Planning
C) Organizing
D) Controlling

Question 56

In order to ensure that it has a competitive advantage over its competitors, a company decides to acquire a much smaller local company. The move is an example of a ________.

A) vision
B) business model
C) strategy
D) mission

Question 57

The strategy of delivering new, exciting, and unique products to the customers is known as a ________ strategy.

A) low-cost
B) differentiation
C) centralization
D) penetration

Question 58

When a manager lays out the lines of authority and responsibility among different individuals and groups, the manager is ________.

A) organizing
B) leading
C) controlling
D) planning

Question 59

During which managerial task does a manager articulate a clear organizational vision for the organization's members to accomplish?

A) Planning
B) Organizing
C) Controlling
D) Leading

Question 60

Which of the following is true of middle managers?

A) They decide how the different departments should interact.
B) They are responsible for daily supervision of the nonmanagerial employees.
C) They develop skills and know-how so that the organization is efficient and effective.
D) They are responsible for the performance of all departments.

Question 61

Contracting with another company, usually in a low-cost country abroad, to have it perform a work activity the organization previously performed itself is known as ________.

A) integrating
B) telecommuting
C) outsourcing
D) insourcing

Question 62

Define efficiency. When is an organization said to be efficient?

Question 63

Which of the following management techniques involves giving employees more authority and responsibility over how they perform their work activities?

A) Innovation
B) Total quality management
C) Empowerment
D) Outsourcing

Question 64

Simplifying, shrinking, or downsizing an organization's operations to lower operating costs is known as ________.

A) restructuring
B) outsourcing
C) empowering
D) innovating

Question 65

Which of the following is an accurate definition of a self-managed team?

A) A group of people who work interdependently and with shared purpose across space, time, and organization boundaries using technology to communicate and collaborate
B) Several professionals who independently address various issues that an organization may have, focusing on the issues in which they specialize
C) A group of employees who assume collective responsibility for organizing, controlling, and supervising their own work activities
D) A team used only for a defined period of time and for a separate, concretely definable purpose

Question 66

The ability to analyze and diagnose a situation and to distinguish between cause and effect demonstrates a manager's ________ skills.

A) interpersonal
B) conceptual
C) technical
D) communication

Question 67

Fresh Farms, Inc., is facing financial problems. In order to tackle the situation, the management has decided to reduce the number of middle managers by 20 percent to help them cut costs. This is an example of ________.

A) telecommuting
B) restructuring
C) outsourcing
D) empowering

Question 68

The creation of a new vision for a struggling company based on a new approach to planning and organizing to make better use of a company's resources and allow it to survive and prosper is ________ management.

A) performance
B) total quality
C) turnaround
D) impression

Question 69

Which of the following is true of top managers?

A) They supervise nonmanagerial employees.
B) They help first-line managers better use resources.
C) They have cross-departmental responsibility.
D) They are responsible for a single department.

Question 70

A bank allows its tellers to not only handle deposits and disbursement, but also distribute traveler's checks and sell certificates of deposit. This is an example of ________.

A) innovation
B) restructuring
C) total quality management
D) empowerment

Question 71

Organizations that operate and compete in more than one country are known as ________ organizations.

A) domestic
B) central
C) holding
D) global

Question 72

Who among the following is most likely to be a part of the top management team?

A) Supervisor
B) Head nurse
C) Chief executive officer
D) Divisional manager

Question 73

The ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors is known as its ________.

A) competitive advantage
B) strategy
C) absolute advantage
D) goal

Question 74

The general abilities to understand, alter, lead, and control the behavior of individuals and groups are ________ skills.

A) analytic
B) cognitive
C) human
D) conceptual

Question 75

The company for which Margaret works has announced that due to declining global sales, it will lay off 12 percent of its labor force. This is an example of ________.

A) innovating
B) telecommuting
C) restructuring
D) outsourcing

Question 76

George works as the human resource manager at Maddy's Confectionaries. It was mandatory for his subordinates to obtain his signature on every document related to the hiring of a new employee. When he realized that this was increasing the duration of the hiring process, he told his subordinates that they no longer needed his signature unless the hire involved extraordinary circumstances. This is an example of ________.

A) outsourcing
B) total quality management
C) empowerment
D) innovation

Question 77

Being a part of top management at a large fast food chain, Donald is most likely to spend more of his time in ________.

A) planning and organizing resources
B) planning and controlling nonmanagerial employees
C) organizing and leading first-line managers
D) organizing resources and leading first-line managers

Question 78

The specific set of departmental skills, knowledge, and experience that allows one organization to outperform its rivals is known as the organization's ________.

A) strategy
B) vision
C) mission
D) core competency

Question 79

What is organizational performance and what is its relationship with efficiency and effectiveness?

Question 80

The job-specific skills required to perform a particular type of work at a high level are a part of a manager's ________ skills.

A) technical
B) communication
C) interpersonal
D) conceptual