Understanding business Test bank solution Chap 7 Management and leadership

Identify and define the four key functions of management. Explain the differences between strategic, tactical, operational, and contingency planning. What is the purpose of the SWOT analysis? What types of information does this analysis provide? What is empowerment? How has the movement toward empowerment changed the role of the manager? Describe the three basic types of management skills, and relate these skills to the tasks performed by different levels of management.

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Chapter 07 - Management and Leadership

TEST PLANNING TABLE FOR CHAPTER 7

162,163,164,165,166,167, 168

24,25,

169,170,171,172,173, 174

26,27,28,29,

175,176, 275

3 Relate the planning

process and decision

making to the

accomplishment of

company goals.

30,31,32,33,34,35,36,37, 38,39,40,41,42,43,44,45, 46,47,48,49,50,51,52,53, 54,55,56,57,58,59,60,61, 62,63,

177,178,179,180,181,182, 183,184,185,186,187,188, 189,190,191,192,193,194, 195,196

64,65,66,67,68,69,

197,198,199,200,201

70,71,72,

202,203,204,205,206, 207,208,209,210, 276,277,

211,212,213,214,215,216, 217,218,219,220,221,222, 223,224

93,94,95,96,97,98~, 225,226,227 99,100,101,102,103,228,229,230,231,232,

233,234, 279, 285*

5 Explain the

differences between

leaders and managers,

and describe the various

leadership styles.

104,105,106,107,108,109, 110,111,112,113,114,115, 116,117,118,119,120,121, 122,123,124,125,126,127, 128,129,

235,236,237,238,239,240, 241,242,243,244,245

130,131~, 246,247,248,249,250, 251~

132,133,134,135,136, 137,138,139,

252,253,254,255,256, 257,258,259,260, 278,280,

281*,282*

6 Summarize the five

steps of the control

function of management.

140,141,142,143,144,145, 146,147,148,149,150,151,

261,262,263,264,265

152,

266,267,268 153,154,155,269,270,271,272,273,2

74, 284*

Total number of test items: 285

True/false questions are in plain text.

Multiple choice questions are in bold text.

Questions on boxed material are in bold text with a tilde~.

Essay questions are in bold underlined text.

Minicase questions are in bold with an asterisk*.

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Management and Leadership Answer Key

True / False Questions

1 The main job of managers today is to watch over people to be sure they do what the

manager asks of them

Answer: False

AACSB: Reflective Thinking

Bloom’s: Remember

Learning Objective: 07-01 Describe the changes occurring today in the management function

Level of Difficulty: 1 Easy

Topic: Definition of Management

2 The best way to get people to do what a manager wants is for the manager to reprimand

those who don't do things correctly

Answer: False

3 Managers in progressive firms of all kinds tend to be friendly, and treat employees as

partners

Answer: True

4 Managers must earn the trust of their employees.

Answer: True

5 Because of their importance and skills, few managers lost their jobs in the recent

economic crisis

Answer: False

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6 A modern manager's main job is to issue orders, then follow up to make sure employees

do as they were told

Answer: False

7 Managers in progressive organizations tend to emphasize teamwork and cooperation

rather than discipline and giving orders

Answer: True

8 Despite all of the changes in the business environment, the basic way a manager performs

his or her job has remained remarkably constant

Answer: False

9 Given the lack of discipline and short attention spans of today's workers, modern

managers must watch their workers closely, set strict rules, and vigorously enforce

policies

Feedback: Today's managers emphasize teamwork and cooperation rather than discipline and

order giving Managers now guide, train, support, motivate and coach employees

Answer: False

Bloom’s: Understand

Level of Difficulty: 2 Medium

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10 In most high-tech industries, the best way to respond quickly to rapid technological

changes is to keep most authority and responsibility in the hands of a few key managers who provide precise, detailed directions to the workers

Feedback: Managers of high-tech firms realize that workers often know much more about

technology than they do Thus, most progressive managers emphasize teamwork and

cooperation rather than discipline and order giving

Answer: False

11 Due to the fact that employees today often know much more about technology and the

technical aspects of their jobs than their managers do, progressive managers emphasize teamwork and cooperation as a strategy for getting work done

Feedback: Managers of high-tech firms realize that workers often know much more about

technology than they do Thus, most modern managers emphasize teamwork and cooperation rather than discipline and order giving

Answer: True

12 John is the general manager of a retail outlet By emphasizing teamwork and acting in a

role of coach rather than boss, John is considered to be a modern manager

Feedback: Most modern managers tend to be more progressive They choose to guide and

support their employees instead of giving orders

Answer: True

AACSB: Knowledge Application

Bloom’s: Apply

Level of Difficulty: 3 Hard

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13 As an office manager, Sylvie consistently tells her employees what to do, watches over

their tasks, and reprimands those who don't listen to her orders Sylvie is a modern

manager

Feedback: Most modern managers tend to be more progressive They choose to guide and

support their employees instead of giving orders

Answer: False

Bloom’s: Apply

14 Managers make decisions about how to use organizational resources to accomplish goals

Answer: True

Learning Objective: 07-02 Describe the four functions of management

Topic: Functions of Management

15 Financing is one of the four key functions of management

Answer: False

16 The four key management functions are planning, organizing, leading, and controlling

Answer: True

17 One trend of the leading management function is to empower employees, giving them as

much freedom as possible to become self-directed and self-motivated

Answer: True

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18 Leading is the management function of designing the structure of the organization so that

everyone can function together

Answer: False

19 As a management function, the main focus of controlling is to keep complete and

up-to-date records of the organization's financial transactions for tax and regulatory purposes

Answer: False

20 The management function that involves guiding, training, and motivating others to work

toward the achievement of an organization's goals is called leading

Answer: True

21 In many smaller firms the manager's role is to direct the employees, telling them exactly

what to do

Answer: True

22 Planning is the function of management that includes anticipating future trends and

determining the best strategies and tactics to achieve an organization's goals and

objectives

Answer: True

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23 Planning is a key management function because other management functions depend on

having a good plan

Answer: True

24 Managers focus on making efficient use of their organization's human resources, but leave

decisions about the efficient use of other resources such as buildings, machinery, and supplies to engineers and accountants

Feedback: Managers must practice the art of getting things done through organizational

resources including people, financial resources, information and all types of equipment and assets

Answer: False

25 Today's progressive organizations are designed around the needs of the customer The

idea is to organize systems to be responsive to customer needs

Feedback: Organizing includes designing the structure of the organization and creating

conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives

Answer: True

26 Beth has spent the last two hours going over some consumer surveys to see how well her

company is achieving its goal of improving customer satisfaction Beth's efforts are an example of the controlling function of management

Feedback: Controlling is the function concerned with determining whether or not an

organization is progressing toward achieving its goals and objectives

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Topic: The Four Functions of Management

27 Jack, a manager with Tiny Tots Toy Company, has just participated in a meeting that

looked at future trends in the toy industry, and identified new challenges and opportunitiesfor Tiny Tots Jack's participation in this meeting was part of the organizing function of management

Feedback: Jack's activities are part of the planning function Planning involves anticipating

future trends and identifying business opportunities and challenges

Answer: False

AACSB: Analytical Thinking

Bloom’s: Analyze

28 Harold is a no-nonsense boss who believes that the best way for an organization to

achieve its goals is for workers to follow their boss's orders Thus, he tells workers exactlywhat to do and how to do it Harold's approach is an example of directing

Feedback: Directing involves telling workers exactly what to do This approach is still

common among managers in small companies, but managers in larger firms tend to rely more

on leading rather than directing

Answer: True

Bloom’s: Apply

29 Rita is a manager of a medium-sized service company She is currently involved in

redesigning her department to ensure that employees and other resources can respond more quickly and efficiently to the needs of its customers Rita's efforts are part of the organizing function of management

Feedback: Organizing involves designing the structure of the organization so that resources

can efficiently achieve the organization's objectives One of the key objectives today is to findways to organize businesses so that they please the customer

Answer: True

Bloom’s: Apply

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30 Planning involves setting the organizational vision, goals and objectives

Answer: True

Learning Objective: 07-03 Relate the planning process and decision making to the accomplishment of company goals

31 Progressive managers consider planning to be of little importance in today's rapidly

changing business environment

Answer: False

Topic: The Importance of Planning

32 Goals tend to be broad and focus on the long term while objectives tend to be specific and

more short term in their focus

Answer: True

33 A vision is a detailed set of specific steps that a firm must take to achieve its short-run

objectives

Answer: False

34 A statement about why an organization exists and what it is trying to achieve is called the

organization's directive

Answer: False

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35 A vision is the overall explanation of why an organization exists and where it is trying to

head

Answer: True

36 A vision gives the organization a sense of purpose and a set of values that unite employees

toward a common destiny

Answer: True

37 A mission statement outlines the fundamental purposes of an organization

Answer: True

38 Today, a mission statement should also address social responsibility

Answer: True

39 Goals are broad, long-term accomplishments an organization wants to achieve

Answer: True

40 While goals are measurable, objectives are not

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41 Goals are developed and agreed to by management so that the workers can follow them

Answer: False

42 Objectives should be expressed as broad, general principles rather than as specific

short-term results

Answer: False

43 Continuous planning is not necessary, because plans that worked well in the past are likely

to continue to work well in the future

Answer: False

44 Planning is a continuous process

Answer: True

45 The SWOT analysis helps firms identify competitive threats and market opportunities

Answer: True

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46 An analysis of the business environment helps managers identify threats and opportunities

that face their firm

Answer: True

47 Strategic planning is now much easier than it used to be because managers have access to

very reliable computerized forecasting tools

Answer: False

48 Tactical planning deals with setting long-range goals, while strategic planning develops

the specific strategies needed to achieve the organization's operational goals

Answer: False

49 Strategic planning determines the major goals of the organization

Answer: True

50 Today's business environment changes so rapidly that strategic planning is becoming

more difficult and subject to change

Answer: True

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51 Managers or teams of managers at the lower levels of an organization normally develop

strategic plans, but top managers do most of the tactical planning

Answer: False

52 Contingency planning involves developing alternative courses of action to be used if the

primary plans do not achieve the desired results

Answer: True

53 Operational planning looks at the organization as a whole, while strategic planning

focuses on specific departmental actions

Answer: False

54 One example of tactical planning is setting annual budgets and deciding on other details

and activities necessary to meet the strategic objectives

Answer: True

55 Many cities and businesses are now developing contingency plans to respond to potential

terrorist attacks

Answer: True

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56 Instead of creating detailed strategic plans, the leaders of market-based companies

(companies that respond quickly to environmental changes) set flexible directions so as to allow for change and seize opportunities when they come

Answer: True

57 Decision making occurs in all management functions

Answer: True

58 The first step in the rational decision-making model is to identify alternative solutions

Answer: False

59 The last step in the rational decision-making model is to determine whether the decision

was a good one and follow up

Answer: True

60 One step in the rational decision-making model is to develop alternatives

Answer: True

61 Brainstorming is coming up with as many solutions as possible in a short period of time

with a focus toward not censoring anyone's ideas

Answer: True

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62 Problem solving is more formal than using the rational decision-making model

Answer: False

63 PMI is a problem-solving technique that involves listing pluses, minuses and

implications

Answer: True

64 A mission statement should provide a detailed explanation of how a company will

achieve its objectives

Feedback: A mission statement is an outline of the organization's fundamental purposes, not a

detailed explanation of what is to be done and who is to do it Figure 7.2 shows an actual mission statement for Starbucks that clearly illustrates this

Answer: False

65 The SWOT analysis focuses only on the internal activities of the firm, while a PERT

analysis is used to review the external environment in which the firm operates

Feedback: SWOT stands for strengths, weaknesses, opportunities and threats While the

strengths and weaknesses part of SWOT analysis focuses on internal aspects of the

organization, the opportunities and threats part of SWOT looks at the external environment in which the organization operates

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66 Tactical planning involves making decisions about which customers to serve, what

products or services to sell, and the geographic areas in which the firm will compete

Feedback: The fundamental nature of the topics described in this question would be

considered in the strategic planning process

Answer: False

67 Contingency planning is most important in markets where conditions are relatively stable

and market growth is predictable

Feedback: Contingency planning is the process of preparing alternative courses of action that

may be used if the primary plans don't achieve the organization's objectives The need to implement contingency plans is more likely to arise in markets where there is a great deal of rapid change and uncertainty

Answer: False

68 The top managers at the Sax Department Store find that their employees do not really

share a common sense of purpose or have a common set of values This suggests that top management has not provided a clear vision for the firm

Feedback: A vision is a broad statement of why an organization exists and what it seeks to

accomplish It is intended to give the organization a sense of purpose and provide workers with a set of values and a sense of direction

Answer: True

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69 In order to ensure effective implementation, managers should make only one set of plans

and carefully follow them to ensure that the organization's objectives are achieved

Feedback: Economic and competitive conditions change so rapidly that it is wise to have

alternative plans available in the event the primary plan does not achieve its objectives This

is the idea behind contingency planning

Answer: False

70 Lucy is part of the top management team at Cloudy Daze Rain Gear, a company that

produces umbrellas, raincoats, hats and all-weather shoes As a member of top

management, Lucy is more likely to be involved in strategic planning than in tactical planning

Feedback: Top management normally carries out strategic planning, while lower-level

managers are usually responsible for tactical planning

Answer: True

Bloom’s: Apply

71 Jamika is a manager at a well-known retail store Each morning she determines the order

in which store projects are performed; she sets work schedules for employees and

standards that must be met These activities suggest that Jamika is involved in operational planning

Feedback: Operational planning is the process of setting work standards and schedules that

are necessary to carry out tactical plans

Answer: True

Bloom’s: Apply

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72 Sharon needed to solve a problem quickly, so she called together the work team in her

department and asked them to list as many possible solutions as they could come up with

in a short period of time During the process she encouraged responses and avoided censoring what her workers said Sharon is utilizing a problem-solving technique known

as brainstorming

Feedback: Brainstorming is a problem-solving technique that encourages a group of people to

come up with as many suggestions for solving the problem as possible in a short period of time, and with no censoring of ideas

Answer: True

Bloom’s: Apply

73 After management has created a plan of action, the focus turns to the controlling function

to recheck and often redo the plan

Answer: False

Learning Objective: 07-04 Describe the organizing function of management

74 Organizing involves allocating resources, assigning tasks, and establishing procedures for

accomplishing the organizational objectives

Answer: True

75 The visual illustration of the relationships among the people within an organization that

shows who is accountable for the work and who reports to whom is called a Gantt Chart

Answer: False

76 Branch and plant managers and division heads are classified as first-line managers

Answer: False

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Topic: Types of Managers and Leadership Styles

77 A CEO is often the president of the firm and is responsible for developing the strategic

plans

Answer: True

78 The recent recession eliminated many middle managers giving the remaining managers

more employees to supervise

Answer: True

79 Supervisory managers are those who directly oversee the activities of workers and

evaluate their daily performance

Answer: True

80 Middle managers usually are responsible for tactical planning and controlling

Answer: True

81 The CIO, COO, and CFO are classified as top management positions

Answer: True

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82 In this day of rapidly changing technology, technical skills are the most important skills

for all levels of management

Answer: False

83 Conceptual skills refer to the ability of a manager to perform the tasks associated with a

specific discipline or department

Answer: False

84 First-line managers typically spend less time on conceptual tasks and more time on

technical skills

Answer: True

85 Most of a top manager's time is devoted to conceptual and human relations activities

Answer: True

86 The ability to plan, coordinate, and delegate are among a manager's most basic technical

skills

Answer: False

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87 A person who is a good first-line manager is automatically likely to be a good middle or

top manager

Answer: False

88 Human relations skills include those associated with leadership, coaching, morale building

and supportiveness

Answer: True

89 The question of how to implement change within an organization is the responsibility of

the firm's CEO

Answer: True

90 Staffing involves recruiting, hiring, motivating, and retaining the best people available for

the organization

Answer: True

91 Due to the growth of the Internet, recruiting is less important today than in the past

Answer: False

92 Staffing is a less important management function today than in the past

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93 Organizing involves developing a structure or framework that relates all workers, tasks

and resources to each other

Feedback: Operationally, organizing means allocating resources, assigning tasks, and

establishing procedures for accomplishing the organizational objectives

Answer: True

94 Top management is also known as first-line management because it deals with key

managerial decisions on a priority basis

Feedback: Top management consists of the president and other key company executives On

the other hand, first-line managers are immediately above an organization's workers

Answer: False

95 Supervisory managers usually work more with ideas than with people

Feedback: Supervisory managers are responsible for assigning specific jobs to workers and

evaluating their daily performance Their jobs often bring them into direct contact with the workers they supervise Figure 7.6 illustrates this by showing that first-line managers rely more on human relations skills than on conceptual skills

Answer: False

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96 Because of the complex nature of their jobs, top managers spend most of their time

developing and using technical skills

Feedback: Top managers spend most of their time on tasks requiring conceptual and human

relations skills

Answer: False

97 The experience gained by first-line managers as they perform their jobs enables them to

acquire all the skills they will need when promoted to higher levels of management

Feedback: Different skill sets are needed at different levels of management First-line

managers tend to use technical skills extensively, but spend much less time using conceptual skills On the other hand top managers use very few technical skills, but often perform tasks requiring exceptional conceptual skills Thus, the skills learned by a first-line manager may not be very useful at higher levels of management

Answer: False

98 According to the Reaching Across Our Borders box, business leaders must strive to

thoroughly understand a nation’s culture and respect its strengths and challenges in order

to be successful in the global market

Feedback: Business leaders need to study countries and the impact they have on business

functions It’s critical they also thouroughly understand a nation’s culture and respect its strengths and challenges

Answer: True

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99 Mark is a manager for Cable Connection He spends most of his time scheduling the

specific service calls that each employee performs during the day, verifying job

completion, and evaluating employee performance on each call These responsibilities suggest that Mark is a middle manager

Feedback: First-line managers typically carry out the tasks that Mark is performing Middle

managers generally are more involved in tactical planning and controlling

Answer: False

100. Chris was recently promoted to a position as a first-line manager At this level of management, he will use human relations and conceptual skills as well as technical skills

Feedback: Though they rely on technical skills more than managers at other levels, first-line

managers must also use human and conceptual skills to a certain degree In fact, as Figure 7.6 shows, all three levels of management, to varying degrees, must use all three types of skills

Answer: True

Bloom’s: Apply

101. Liz is a first-line manager at her company, which is very traditional in its approach to management In her position, Liz probably spends a lot of time giving employees detailed and specific instructions

Feedback: First-line managers are directly responsible for supervising workers and evaluating

their performance

Answer: True

Bloom’s: Apply

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102. Fatma wants to become a manager However, she is shy and avoids conversation with strangers She is very comfortable with computers and information technology and has great technical skills in these areas Fatma's personal traits make her a good candidate for

a top management position

Feedback: Top managers typically use few technical skills Instead, almost all of their time is

devoted to human relations and conceptual tasks

Answer: False

Bloom’s: Apply

103. Staffing is less important at Sony, IBM and other high-tech firms because these firms sell technology

Feedback: At most high-tech companies, like IBM and Sony, the primary capital equipment is

brainpower, so staffing is essential to obtain the best people available to accomplish these companies' objectives

Answer: False

Bloom’s: Apply

104. People who are good leaders also are almost always good managers

Answer: False

Learning Objective: 07-05 Explain the differences between leaders and managers, and describe the various leadership styles

105. Leadership is the management function of checking to determine whether or not an organization is progressing toward its objectives, and taking corrective action if it is not

Answer: False

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106. One difference between managers and leaders is that managers strive to achieve stability while leaders embrace change

Answer: True

107. Management carries out of the vision created by leadership

Answer: True

108. Effective leadership includes the ability both to welcome change and to promote ethical behavior

Answer: True

109. Good leaders motivate workers and create the environment for workers to motivate themselves

Answer: True

110. Managers must lead by doing, not just by saying

Answer: True

111. A leader's most important job may be to transform the way the company does business

so that it's more effective and efficient

Answer: True

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112. Researchers have determined that all effective leaders have similar traits

Answer: False

113. There is no single leadership style that works best in all situations

Answer: True

114. Research has shown that the democratic style of leadership is the most effective style

of leadership

Answer: False

115. Research on leadership supports the idea that the best leadership style depends on several factors, including the people being led and the situation

Answer: True

116. The autocratic style of leadership can be very effective in emergency situations

Answer: True

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117. The traits used by autocratic leaders include warmth, friendliness, and understanding

Answer: False

118. The traits that characterize participative leaders include flexibility, good listening skills, and empathy

Answer: True

119. Autocratic leadership is most effective with workers who like to work independently and make their own decisions

Answer: False

120. Research has shown that employee participation in decision making improves job satisfaction

Answer: True

121. Free-rein leaders tend to carefully monitor their subordinates to make sure they are doing the job in the correct way

Answer: False

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122. Managers are most effective when they consistently use the same leadership style withevery employee assigned to their work group

Answer: False

123. In traditional organizations, directing includes both giving assignments to workers andproviding feedback on their performance

Answer: True

124. Empowerment means that more authority and responsibility is given to top

management

Answer: False

125. Enabling is the term used to describe the process by which employees recognize and respect the authority of managers to issue orders

Answer: False

126. Knowledge management involves finding the right information, keeping the

information accessible, and making the information known to everyone in the firm

Answer: True

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127. The focus of knowledge management is to make sure top managers have all of the information they need to run the company

Answer: False

128. The first step to developing a knowledge management system is to develop the

technology to keep information secure

Answer: False

129. The amount of data gathered has grown so much that the term big data is used to describe the vast amount of information available

Answer: True

130. A comparison of leadership and management suggests that leadership is about creating

a vision, while management is about carrying out that vision

Feedback: Leadership is creating a vision, while management is the carrying out of the

leadership's vision

Answer: True

131. The Adapting to Change box showed us that what people think of a company is

influenced by their responses on social media

Feedback: Mary Barra of GM made a commitment to search for complaints, respond quickly,

and solve problems customers were posting on Twitter and Facebook If GM didn't respond totheir customer base, their image could be tarnished

Answer: True

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132. Heather has a strong desire to maintain and preserve order and stability She is very good at developing tactical plans to achieve her company's goals and objectives These characteristics suggest that Heather has characteristics of an exceptional leader

Feedback: One of the characteristics of leaders is that, rather than striving for order and

stability, they create and embrace change The fact that Heather strives to produce order and stability suggests she might be a good manager, and her planning skills reinforce this

conclusion However, not all good managers make good leaders

Answer: False

133. Brett heads a department in a major manufacturing corporation He strives to maintain

a free-rein approach to leadership in most situations Recently, Brett's company lost a major contract that it needs to continue the current level of operation The company needs

to take quick action to adjust, including slashing expenses Under these conditions, Brett should maintain his free-rein style of leadership

Feedback: No single leadership style is always effective The best style will depend on the

people being led, the organization, and the situation Good managers often vary their

leadership styles as conditions change In crisis situations, the autocratic approach is

sometimes more effective than a free-rein approach

Answer: False

134. Lamont is quick and decisive He makes most decisions by himself, issues orders, and expects his subordinates to follow them without question Lamont's behavior is an

example of the free-rein style of leadership

Feedback: A free-rein manager is one who gives his or her subordinates a substantial amount

of freedom Lamont's approach, with its emphasis on issuing orders without consultation, is more consistent with the autocratic style of leadership

Answer: False

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Bloom’s: Apply

135. A recent customer survey has convinced top managers at Akwip Corporation that theirfirm is doing a poor job of responding quickly to the needs of customers The managers are very concerned about this problem Empowerment might be an approach that would help Akwip improve its responsiveness

Feedback: Empowerment means giving employees the authority and responsibility to respond

quickly to consumer requests

Answer: True

136. Juanita is a project manager for a group of experienced and creative programmers at Idle Time Gaming, a publisher of popular computer games Since the programmers are bright, creative, and highly motivated, Juanita brainstorms basic ideas with her group, then allows the programmers a great deal of freedom to do what it takes to reach the agreed-upon objectives Juanita is using a free-rein leadership style

Feedback: A free-rein leader gives subordinates a great deal of freedom to do whatever it

takes to accomplish the organization's objectives

Answer: True

Bloom’s: Apply

137. Bryce has worked for Carolina Hotel for 10 years Greg is a new employee at the hotel Rachel, who oversees both of these employees, may find that she should use a different leadership style with Greg than with Bryce

Feedback: An effective manager may use different leadership styles for different people or

situations A new worker may require more direction, while a more experienced employee may be more responsive to empowerment and a free-rein style of leadership More

experienced workers may respond better to a more democratic style

Answer: True

Bloom’s: Apply

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138. Joseph, a department chair at a major university, always gives department faculty members a chance to express their opinions and encourages them to participate in decisionmaking Employees who work with Joseph are likely to have a high level of job

satisfaction

Feedback: Joseph is using the democratic leadership style Research has found that this style

usually increases the job satisfaction of employees

Answer: True

Bloom’s: Apply

139. Zoe is a middle manager at Watta-Deihl Incorporated The company's top

management has just announced that they are going to initiate a policy of empowerment

In order for this policy to succeed, Zoe and other managers will need to adopt a more autocratic style of leadership

Feedback: Empowerment means giving employees more authority and responsibility to make

their own decisions Autocratic leadership, which relies on issuing orders and expecting people to follow them, is not consistent with empowerment Managers in firms where

empowerment is practiced typically give fewer detailed instructions and spend more time coaching, assisting and counseling workers

Answer: False

Bloom’s: Apply

140. The steps of the controlling function include assigning tasks and establishing

procedures to accomplish organizational goals

Answer: False

Learning Objective: 07-06 Summarize the five steps of the control function of management

141. Controlling provides managers and workers with feedback that helps them adjust to deviations from plans

Answer: True

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142. If managers do a good job planning and organizing, there shouldn't be a need for them

to be involved with controlling

Answer: False

143. Two of the key components of the control process are setting clear performance standards and communicating results and deviations to the employees involved

Answer: True

144. The first step in the controlling process is to monitor and record the actual results

Answer: False

145. Without clear standards, the control process is impossible to implement

Answer: True

146. In the control process, performance standards should be stated in general terms in order to give management as much flexibility as possible

Answer: False

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147. In order to be effective, performance standards must be specific, attainable, and measurable

Answer: True

148. Accounting and finance are important for control systems because they provide the numbers management needs to evaluate progress

Answer: True

149. External customers are those individuals or units that receive services from other units within the same organization

Answer: False

150. A customer-oriented firm should focus exclusively on satisfying its internal

customers

Answer: False

151. When all is said and done, financial standards such as profit and return on investment are the only relevant measures of how well a firm is meeting its goals

Answer: False

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152. When setting standards used in controlling, it is better to simply state general goals such as "better quality" or "higher levels of consumer satisfaction" than it is to spend a lot

of time and effort developing more specific standards

Feedback: If standards are stated in very general terms, it becomes difficult to determine

whether the goals are being met General and vague goals do not clearly identify what the firm is trying to achieve

Answer: False

153. Chase is a manager for World Graphic Design, Inc., a firm that designs and

manufactures greeting cards, invitations, announcements, and other event material Chase spends a lot of time trying to find the right people for various positions at his company These efforts are part of the controlling function of management

Feedback: Controlling is concerned with checking to see whether the organization is meeting

its goals by setting standards, measuring actual performance, comparing actual results with the desired standards, providing feedback, and taking corrective action if necessary Staffing, which is the process of finding the right people for various positions within an organization, ispart of the organizing function of management

Answer: False

Bloom’s: Apply

154. Rebecca is concerned about the number of customers complaining about the poor service provided by the department she manages for a hardware store She is convinced that her employees can provide better service and cut complaints significantly Rebecca has set a goal for her department to reduce customer complaints by 15% within six

months This goal is an example of the type of performance standard needed for effective controlling

Feedback: An effective standard for the controlling process should be specific, attainable, and

measurable It is also important to establish a time period for the achievement of the goal Assuming that she is correct about the ability to reduce complaints significantly, Rebecca's standard satisfies these criteria

Answer: True

Bloom’s: Apply

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155. Pro Fit, Inc., a maker of men's sportswear, has just reported a record profit This proves that the firm is successfully achieving its goals

Feedback: Although measures of financial success (such as profit) are very important

indicators of business performance, they are not the only measures The purpose of a firm today is to satisfy a broad group of stakeholders, including employees, customers, and the people living in the local communities where the business has operations The success of the firm at satisfying the diverse interests of these groups cannot be measured by focusing on financial criteria alone

Answer: False

Bloom’s: Apply

Multiple Choice Questions

A individual work that can be successfully measured

B working in teams.

C striving to eliminate the control function of management

D placing greater reliance on the government for financing

Answer: B

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157. One of the challenges facing today's managers is to:

A deal with a workforce that is less educated and less self-directed than in the past

B find ways to encourage conformity instead of diversity

C work with a more educated workforce.

D cope with the sudden and unexpected slowdown in the pace of innovation and change

Answer: C

A prefer to use the autocratic style of leadership

B emphasize teamwork and cooperation rather than discipline and order giving.

C face fewer challenges and problems than managers in the past

D can rely on a much higher level of worker loyalty to the organization than in the past

Answer: B

159. The revolution in management that is currently under way suggests that the most effective managers of the future will:

A be very strict in their treatment of workers

B emphasize individual initiative rather than teamwork

C specialize in performing one of the four management functions

D emphasize teamwork.

Feedback: Management is experiencing a revolution The manager of the future will likely be

working in teams and assuming completely new roles in the firm

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160. How are managers today different from managers in the past?

A Managers today are more likely to reprimand workers

B Managers in the past would use praise and gentle suggestions

C Managers in the past were less loyal to their employer

D Managers today emphasize teamwork.

Feedback: Employees today are more educated and demand more self-direction As a result,

today's managers are educated to guide, train, support, motivate, and coach employees rather than to tell them what to do These managers are likely to emphasize teamwork and

communication rather than discipline and order giving

Answer: D

161. Which of the following statements has resulted in changes in the role of management?

A Most workers today show little initiative or creativity, so managers must spend more time directing their efforts

B The marketplace is becoming global, which increases both competition and opportunities

for cooperation and integration

C Firms are recognizing that their workforces are too diverse, so managers must find ways to reduce diversity without violating federal laws against discrimination

D The desire to encourage teamwork has resulted in larger, more cumbersome organizations with too many workers

Feedback: The marketplace is now global, and the advent of the Internet means that

competition from global competitors is only a mouse click away

Answer: B

Bloom’s: Apply

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162. is the art of utilizing organizational resources to accomplish goals at work

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