Deck 6: The Nature of Management

Question 1

A declaration of an organization's fundamental purpose and basic philosophy is known as a(n):

A)protocol.
B)mission.
C)referendum.
D)agenda.
E)target.

Answer 1

B

Question 2

The first step in decision-making process is developing options directly.

Answer 2

False

Question 3

Planning is a crucial management activity because:

A)it designs the map that lays the groundwork for the other functions.
B)the process of managing an organization ends with planning.
C)it eliminates other management functions like organizing and controlling.
D)it can never go wrong or fail.
E)what an organization wants to achieve is based on a planned course of action.

Answer 3

A

Question 4

Before an organization can plan a course of action,it must first:

A)take corrective action.
B)develop a blueprint of the plan.
C)decide on the people to be involved in the plan.
D)determine what it wants to achieve.
E)allocate and organize the required resources.

Question 5

Management takes place only in business settings.

Question 6

For any company,owners and shareholders are the only sources of primary funding.

Question 7

Jason is an operations manager in an automobile company.Which of the following is most likely to be his primary management function in the firm?

A)Administering production activities
B)Arranging finance
C)Creating advertisements
D)Recruiting employees
E)Promoting products and services

Question 8

If a manager is concerned about doing the work in such a manner that it yields the desired result,then his or her primary managerial concern is:

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

Question 9

Melanie is one of the senior managers in the consumer electronics department of a large company.She is part of a team that determines the objectives of the department based on future trends in the industry and decides how to accomplish them.Melanie is involved in the management function of:

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

Question 10

If a manager is concerned about doing the work with the least cost and waste possible,then his or her primary managerial concern is:

A)efficiency.
B)effectiveness.
C)delegation.
D)hiring.
E)expertise.

Question 11

Determining an organization's objectives and deciding how to accomplish them,a management function,is known as:

A)planning.
B)nearshoring.
C)staffing.
D)crowdsourcing.
E)factoring.

Question 12

Top-level managers make an organization's strategic decisions that focus on a key idea for using resources in order to take advantage of opportunities.

Question 13

Forecasting is a part of the management function of:

A)planning.
B)crowdsourcing.
C)nearshoring.
D)factoring.
E)retailing.

Question 14

Carrie starts her own catering business.She creates a website for her business and mentions the fundamental purpose and basic philosophy of her business on the website.This declaration can be regarded as the _____ of her business.

A)protocol
B)mission
C)referendum
D)agenda
E)target

Question 15

If a manager is analyzing several methods for obtaining primary funding to expand operations,he or she is concerned about the _____ of the company.

A)financial resources
B)intangible resources
C)human resources
D)natural resources
E)structural resources

Question 16

Lara was less educationally qualified and experienced than her colleagues when she joined Aurora Systems Inc.However,due to her ability to negotiate effectively with clients,convince her team members to work harder,and understand their needs,she is a senior-level manager today.Which of the following skills can be most attributed to Lara's success in this scenario?

A)Technical skills
B)Cognitive skills
C)Human relations skills
D)Critical thinking skills
E)Psychomotor skills

Question 17

Which of the following is the first function of management?

A)Planning
B)Crowdsourcing
C)Staffing
D)Factoring
E)Directing

Question 18

_____ make decisions about the use of an organization's resources and are concerned with planning,organizing,staffing,directing,and controlling the organization's activities.

A)Managers
B)Shareholders
C)Creditors
D)Consumers
E)Suppliers

Question 19

Managers need adequate _____ to pay for essential activities.

A)human resources
B)intangible resources
C)financial resources
D)non-renewable resources
E)biological resources

Question 20

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

Question 21

An organization's objectives regarding profits are generally stated in terms of:

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

Question 22

Tactical plans usually cover a period of:

A)five years or more.
B)one year or less.
C)three years.
D)one week or less.
E)ten years.

Question 23

In the context of company goals,which of the following is an effective practice?

A)A company should pursue only one goal at a time.
B)A company should use its goal as a substitute for its mission.
C)Company goals should be specific.
D)Company goals should not be defined in terms of a target to be achieved.
E)Company goals should not be limited by a time frame.

Question 24

Growth objectives essentially relate to:

A)making the best use of an organization's resources.
B)coordinating an organization's resources smoothly.
C)focusing on profit as the sole indicator of growth.
D)adapting and releasing new products in the market.
E)building an organization's ability to promote diversity.

Question 25

Which of the following questions does the mission statement of an organization seek to answer?

A)What business are we in?
B)How do we expand our business?
C)What are our staffing requirements?
D)Why are we not cost effective?
E)How do we meet the annual sales target?

Question 26

Which of the following explains an organization's reason for existence?

A)The organization's balance sheet
B)The organization's code of conduct
C)The organization's article of incorporation
D)The organization's mission statement
E)The organization's tactical plan

Question 27

Strategic plans:

A)establish the short-range objectives of an organization.
B)must take into account an organization's capabilities and resources.
C)are designed to implement the activities and objectives specified in the tactical plans.
D)generally cover periods ranging from two to six months.
E)must be developed by an organization's lower management.

Question 28

_____ are the ends or results desired by an organization that are derived from the organization's mission.

A)Protocols
B)Statutes
C)Objectives
D)Agendas
E)Referendums

Question 29

In the context of a business's objectives,which of the following is an ineffective practice?

A)Isolating them from the business's mission
B)Stating them in such a way that they are measurable
C)Using them to make tactical plans for the business
D)Keeping them elaborate or simple
E)Using them to establish criteria to evaluate performance

Question 30

The top management of New 18 Apparels Inc.has decided to set up an online store to cater to the changing business environment and reach out to the Asian market.The management has also identified that the success of the company will depend on its ability to create and develop new products and processes in the next two years.This is an example of _____.

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

Question 31

_____,a type of plan for meeting objectives,generally cover periods ranging from one year or longer.

A)Functional plans
B)Tactical plans
C)Static plans
D)Operational plans
E)Strategic plans

Question 32

A(n)_____ is best described as the result that a firm wishes to achieve.

A)protocol
B)statute
C)referendum
D)agenda
E)goal

Question 33

The top management of Dusk Automobiles Inc.has decided that the company's objective for the next two years will be to expand the overall business internationally.This is an example of _____.

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

Question 34

Which of the following statements is true of the goals of a company?

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)An attribute,a target,and a time frame are the three elements of a goal set by a company to achieve its mission.

Question 35

_____,a type of plan for meeting objectives,establish the long-range objectives and the overall course of action by which a firm fulfills its mission.

A)Functional plans
B)Tactical plans
C)Strategic plans
D)Operational plans
E)Static plans

Question 36

Which of the following objectives are generally stated in terms of percentage of sales increase and market share,with the goal of increasing those figures?

A)Objectives regarding opportunity costs
B)Objectives regarding efficiency
C)Objectives regarding competitive advantage
D)Objectives regarding employee turnover
E)Objectives regarding raising capital

Question 37

_____,a type of plan for meeting objectives,include plans to move into international markets.

A)Incremental plans
B)Tactical plans
C)Strategic plans
D)Operational plans
E)Static plans

Question 38

When efficiency is an objective,organizations primarily focus on:

A)making the best use of their resources.
B)sales as the sole criterion for evaluating employees' performance.
C)profit as the sole indicator of growth.
D)ensuring that their business expenses are equal to their assets.
E)limiting workplace diversity.

Question 39

The principal difference between objectives and goals is that:

A)objectives are broad,while goals are narrow.
B)objectives can be multiple,while a company can have only one goal.
C)objectives are measurable,while goals need not be measurable.
D)objectives are long term,while goals are short term.
E)objectives cannot lead to a competitive advantage,while goals can lead to a competitive advantage.

Question 40

Which of the following provides direction for all managerial decisions and establishes criteria for evaluating performance within organizations?

A)Protocols
B)Minutes
C)Objectives
D)Statutes
E)Referendums

Question 41

Which of the following is an effective practice with regard to tactical plans?

A)They should cover a period of three years or more.
B)They should protect an organization from reacting to changes in the environment.
C)They should disregard a company's overall strategy.
D)They should be periodically reviewed and updated by an organization's management.
E)They should be established by an organization's first-line managers.

Question 42

Short-range plans covering a period of one year or less that are designed to implement the activities and objectives specified in an organization's strategic plan are referred to as _____.

A)referendums
B)protocols
C)static plans
D)operational plans
E)tactical plans

Question 43

Providing incentives to employees to motivate them toward achieving organizational objectives relates to the management function of:

A)factoring.
B)benchmarking.
C)evaluating.
D)controlling.
E)directing.

Question 44

Downsizing is an aspect most closely associated with the management function of:

A)staffing.
B)crowdsourcing.
C)motivating.
D)bartering.
E)directing.

Question 45

Dividing work into small units and assigning it to specific individuals is a task related to the management function of _____.

A)evaluating
B)organizing
C)staffing
D)controlling
E)recruiting

Question 46

Which of the following statements is true of tactical plans?

A)They are developed by the highest managers of a firm.
B)They establish the long-range objectives of a firm.
C)They allow a firm to react to changes in the environment.
D)They specify what actions each individual needs to accomplish in a firm.
E)They help establish strategic plans.

Question 47

Due to a drop in the sales of its products,a few production employees and sales personnel of Red Fin Products Inc.were laid off.Which aspect of staffing does this scenario illustrate?

A)Downsizing
B)Bartering
C)Outsourcing
D)Benchmarking
E)Directing

Question 48

Hiring people to carry out the work of an organization is known as _____.

A)factoring
B)bartering
C)staffing
D)controlling
E)directing

Question 49

_____ is the structuring of resources and activities to accomplish objectives in an efficient and effective manner.

A)Evaluating
B)Organizing
C)Crowdsourcing
D)Controlling
E)Factoring

Question 50

Xtreme Toys,a company that manufactures toys inspired by popular video games,creates a strategic plan to be the leader in the product category within a period of three years.The company's middle management also creates a half-yearly plan to ensure that the objectives of the strategic plan are properly implemented.The half-yearly plan created by Xtreme Toys can be regarded as a(n):

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

Question 51

Which of the following is true of the management function of directing?

A)All managers are involved in directing,but it is most important for top-level managers.
B)Directing designs the map that lays the groundwork for the other managerial functions.
C)Good directing does not require the implementation of deadlines.
D)Directing involves determining and administering appropriate rewards and recognition.
E)Telling employees what to do and when to do it is against the principles of directing.

Question 52

Which of the following statements is true of the management function of organizing?

A)Organizing is the process of evaluating and correcting activities to keep a business on course.
B)Organizing involves determining and administering appropriate rewards and recognition for employees in an organization.
C)Organizing is a management function that leads to the duplication of resources.
D)Organizing is the last step in the process of managing a business.
E)Organizing helps create synergy,whereby the effect of a whole system equals more than that of its parts.

Question 53

_____ is an element in planning that deals with potential disasters such as product tampering,oil spills,fire,earthquake,computer viruses,or airplane crash.

A)Supply chain management
B)Crisis management
C)Value chain management
D)Enterprise resource planning
E)Material requirements planning

Question 54

The top management of XSports Autos Inc.creates a strategic plan to enter new product markets within a period of five years.The company's middle management creates half-yearly 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 half-yearly 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 55

Maria and Harold have just finished interviewing four candidates for a job position in Jackson Office Supplies Inc.,a large company based in Houston.In which of the following management functions are Maria and Harold involved?

A)Downsizing
B)Benchmarking
C)Staffing
D)Controlling
E)Directing

Question 56

Bigbag.com,a leading online retailer,uses the services of Data Safe Inc.,a small startup that helps companies manage and keep their electronic data safe.This helps Bigbag.com keep a backup of its proprietary information in case of virus attacks or any sort of damage to property.This is an example of _____.

A)supply chain management
B)contingency planning
C)materials requirement planning
D)enterprise resource planning
E)value chain management

Question 57

_____ is the process of evaluating and correcting activities to keep an organization on course.

A)Planning
B)Benchmarking
C)Staffing
D)Controlling
E)Recruiting

Question 58

_____ are very short-term plans that specify what actions individuals,work groups,or departments need to accomplish in order to achieve an organization's tactical plan and ultimately the strategic plan.

A)Operational plans
B)Protocols
C)Static plans
D)Referendums
E)Executive-level plans

Question 59

When Betsy informed her supervisor that the furniture assemblers at their manufacturing plant were using 20 percent more raw materials in the current month when compared to the preceding months,she was involved in the management function of:

A)planning.
B)structuring.
C)staffing.
D)controlling.
E)benchmarking.

Question 60

Crisis management plans generally cover maintaining business operations during a crisis and:

A)holding first-line employees solely responsible for the crisis.
B)avoiding responsibility for the crisis in the media.
C)communicating with others about the situation and the company's response to the crisis.
D)ensuring that the employees do not know about details of the crisis.
E)isolating top managers from the process of dealing with the crisis.

Question 61

Most people get their initial managerial experience as _____,those who supervise workers and the daily operations of an organization.

A)top managers
B)middle managers
C)first-line managers
D)chief operations officers
E)chief financial officers

Question 62

A marketing manager is primarily responsible for:

A)identifying and efficiently using sources of financing.
B)hiring employees and dealing with them in a formalized manner.
C)planning,pricing,and promoting products and overseeing their distribution.
D)managing an entire business of a major segment of the business.
E)implementing,maintaining,and controlling technology applications required by a company.

Question 63

When a manager informs employees about the changes taking place in the external and internal environment that will affect them and their organization,he or she is acting as a _____.

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

Question 64

In an organization,decisions regarding adding new products,acquiring companies,and moving into foreign markets would most typically be made by:

A)the first-line management.
B)a sales manager.
C)the middle management.
D)a production manager.
E)the top management.

Question 65

In businesses,_____ include the president and other top executives,such as the chief executive officer,chief financial officer,and chief operations officer,who have overall responsibility for an organization.

A)first-line managers
B)top managers
C)trade creditors
D)external auditors
E)middle managers

Question 66

_____ spend most of their time directing and controlling the daily operations of an organization.

A)Board of directors
B)Middle managers
C)Top-level managers
D)First-line managers
E)Chief executive officers

Question 67

The _____ style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in an employee and allows employees to meet their work demands with little or no interference.

A)free-rein
B)autocratic
C)authoritarian
D)repressive
E)totalitarian

Question 68

_____ are responsible for tactical planning that will implement the general guidelines established by top management.

A)Chief executive officers
B)Middle managers
C)Top-level managers
D)Trade creditors
E)External auditors

Question 69

For an organization,the first step in the management function of controlling is to:

A)compare present performance with standards.
B)take corrective actions when necessary.
C)investigate the causes of any deviations.
D)measure the actual performance.
E)identify deviations from the standard.

Question 70

Janet works as a manager at Unicorn Infra Inc.Janet and her 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,Janet is a _____.

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

Question 71

_____ refer to the ability to identify relevant issues and recognize their importance,understand the relationships between them,and perceive the underlying causes of a situation.

A)Technical skills
B)Analytical skills
C)Cognitive skills
D)Social skills
E)Human relations skills

Question 72

_____ refer to the ability of an individual to think in abstract terms and to see how parts fit together to form the whole.

A)Technical skills
B)Perceptual skills
C)Conceptual skills
D)Social skills
E)Human relations skills

Question 73

The specific operations of an organization,plant,division,or department would most typically involve the _____ of the company.

A)top management
B)middle management
C)executive officers
D)board of directors
E)stockholders

Question 74

Identify the management function in which top managers in an organization spend most of their time.

A)Benchmarking
B)Controlling
C)Organizing
D)Staffing
E)Planning

Question 75

Which of the following has been a recent trend with regard to the different levels of management within an organization?

A)With technological advances accelerating,the role of privacy officers has declined within organizations.
B)The top management of most organizations spends most of its time directing and controlling workers' daily performance on the job.
C)Effective managers at enlightened corporations have found that diversity is detrimental for workers and for the bottom line.
D)The ranks of middle managers have been shrinking as more and more companies downsize to be more productive.
E)Most stakeholders support the perks and special treatment the top management of an organization gets.

Question 76

Production and operations managers are concerned with:

A)identifying and efficiently using sources of financing.
B)managing an entire market segment of a business.
C)planning,pricing,and promoting products.
D)transforming resources into good and services.
E)recruiting new employees and developing employee programs.

Question 77

George is a bank manager.He manages the activities of an entire branch without specializing in any one particular function.Thus,George is a(n)_____.

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

Question 78

Positions such as foremen,supervisors,and office service managers are a part of the _____ of a company.

A)top management
B)first-line management
C)middle management
D)executive levels
E)strategic planning division

Question 79

Which of the following is a feature of democratic leadership?

A)Encouraging employees to discuss concerns and provide inputs
B)Using economic rewards as sole means to motivate employees
C)Allowing employees complete autonomy to work on their own
D)Monitoring employee actions very closely and in great detail
E)Making decisions and telling employees what must be done and in what manner

Question 80

When a manager works with suppliers,distributors,and labor unions to reach agreements about the quality and price of input,technical,and human resources,he or she is fulfilling the managerial role of a _____.

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