1. Managers can run a business with just human and physical resources.
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1 Chapter 06 The Nature of Management / Questions 1. Managers can run a business with just human and physical resources. 2. Management takes place only in business settings. 3. The decision to introduce new products in order to reach objectives is often a key management duty. 4. For any company, owners and shareholders are the only sources of primary funding. 5. Planning involves forecasting events and determining the best course of action from a set of options or choices. 6. Crisis management plans are the long-range plans developed by top management. 7. Staffing is defined as the structuring of resources and activities to accomplish goals in an efficient and effective manner. 8. Directing is motivating and leading employees to achieve organizational objectives. 9. Taking action to correct deviations from standards is part of the controlling function. Source: M Business 5 th editin 1
2 10. An important part of good directing is administering awards and recognition. 11. All organizations, regardless of size, have multiple levels of management. 12. A chief executive officer is a middle manager. 13. Top managers focus on strategic decisions to use resources in order to take advantage of opportunities. 14. Middle managers are responsible for tactical planning that implements the general guidelines established by top management. 15. A department manager is a first-line manager. 16. All managers perform all the five management functions, but not to the same degree. 17. Although managers may not actually perform the specific jobs within organizations, they need the technical expertise required to perform jobs related to their area of management in order to train employees and answer questions. 18. Conceptual skills are the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive their underlying causes. 19. Human relations skills are highly important for managers working in the service sector. 20. Analytical skills involve the ability to think creatively. 21. Situations requiring small-scale decisions generally occur after some warning signs. Source: M Business 5 th editin 2
3 22. The first step in good managerial decision making is developing options directly. 23. Once a situation has been recognized, management must define it. 24. In the analyzing options stage, managers should consider the practicality and appropriateness of each option. 25. When making a decision, selecting the best option is a completely objective procedure. Multiple Choice Questions 26. The main focus of the process of management is: A. initiating corporate social responsibility initiatives. B. locating potential sources of raw materials. C. coordinating resources to achieve objectives. D. regulating the growth of small businesses to maintain the monopoly of larger companies. E. creating a heightened sense of employee empowerment in the company. 27. 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. Employees D. Consumers E. Suppliers Source: M Business 5 th editin 3
4 28. If a manager is concerned about doing the work with the least cost and waste, then her primary managerial concern is: A. efficiency. B. effectiveness. C. delegation. D. hiring. E. expertise. 29. All of the following are typical resources that must be acquired by each organization in the pursuit of its objectives EXCEPT: A. people. B. raw materials and equipment. C. money. D. information. E. laws and regulations. 30. When providing benefits, a manager is most closely involved with the resources of the company. A. natural B. physical C. human D. financial E. structural 31. Managers need adequate resources to pay for essential activities. A. human B. natural C. financial D. renewable E. biological 32. All of the following are major management functions EXCEPT: A. directing. B. staffing. C. advertising. D. organizing. E. controlling. Source: M Business 5 th editin 4
5 33. Organizations must have adequate supplies of all types of and coordinate their use carefully to achieve their objectives. A. information B. resources C. blueprints D. provisions E. products 34. If a manager is analyzing several methods for obtaining primary funding to expand operations, she is working with the resources of the company. A. financial B. physical C. human D. natural E. structural 35. Determining an organization's objectives and deciding how to accomplish them are part of the management function known as: A. planning. B. organizing. C. staffing. D. controlling. E. directing. 36. Forecasting is most closely associated with the management function of: A. planning. B. directing. C. staffing. D. organizing. E. retailing. 37. 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. goal. Source: M Business 5 th editin 5
6 38. Which of the following statements is true with regard to 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 the goals set by a company to achieve its mission. 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 are immeasurable. 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. 40. Growth objectives essentially relate to: A. making the best use of an organization's resources. B. coordinating the 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 the organization's ability to promote diversity. 41. planning is conducted on a long-range basis by top managers. A. Incremental B. Tactical C. Strategic D. Operational E. Static Source: M Business 5 th editin 6
7 42. Strategic plans: A. establish the short-range objectives of an organization. B. 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. are developed by an organization's middle management. 43. are very short-term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan. A. Operational plans B. Contingency plans C. Strategic plans D. Tactical plans E. Executive-level plans 44. Crisis management plans generally cover maintaining business operations during a crisis and: A. laying off the employees 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 it. D. ensuring that the employees do not know about details of the crisis. E. establishing long-range objectives to recover the financial losses suffered by the company. 45. Dividing work into small units and assigning it to specific individuals is a task related to the management function of: A. planning. B. organizing. C. staffing. D. controlling. E. directing. Source: M Business 5 th editin 7
8 46. 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 the organization on course. B. Organizing involves determining and administering appropriate rewards and recognition for employees in an organization. C. Organizing ensures that an organization has enough employees with appropriate skills to do the work. D. Organizing designs the map that lays the groundwork for other management functions. E. Organizing helps create synergy, whereby the effect of a whole system equals more than that of its parts. 47. Maria and Harold have just finished interviewing four candidates who want to work for Jackson Office Supplies Inc., a large company based in Houston. In which of the following management functions are Maria and Harold involved? A. Planning B. Analyzing C. Staffing D. Controlling E. Directing 48. Downsizing is an aspect most closely associated with the management function of: A. staffing. B. planning. C. organizing. D. controlling. E. directing. 49. Providing incentives to employees to motivate them toward achieving organizational objectives relates to the management function of: A. planning. B. organizing. C. marketing. D. controlling. E. directing. Source: M Business 5 th editin 8
9 50. When Betsy pointed out to her supervisor that the furniture assemblers at their manufacturing plant were using 20 percent more nails in the current month when compared to the preceding months, she was involved in the management function of: A. planning. B. organizing. C. staffing. D. controlling. E. directing. 51. For an organization, the first step in the management function of controlling is to: A. ask its employees to fix the problems. B. take corrective actions when necessary. C. investigate the causes of any deviations. D. measure the actual performance. E. identify deviations from the standard. 52. 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. 53. In which of the following management functions do top managers in an organization spend most of their time? A. Directing B. Controlling C. Organizing D. Staffing E. Planning 54. are responsible for tactical planning that will implement the general guidelines established by top management. A. Chief executive officers B. Middle managers C. Top managers D. First-line supervisors E. Office managers Source: M Business 5 th editin 9
10 55. The specific operations of the organization, plant, division, or department would most typically involve the of the company. A. top management B. middle management C. first-line management D. board of directors E. stockholders 56. Positions such as foremen, supervisors, and office service managers are a part of the of the company. A. top management B. first-line management C. middle management D. executive levels E. strategic planning division 57. managers spend most of their time directing and controlling the daily operations of the organization. A. Product B. Middle C. Top-level D. First-line E. Division 58. 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. 59. A marketing manager is primarily responsible for: A. using the money available to the company to attain its objectives. 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 the company. Source: M Business 5 th editin 10
11 60. 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 is fulfilling the managerial role of a. A. disseminator B. negotiator C. resource allocator D. leader E. figurehead 61. When a manager informs employees about the changes taking place in the external and internal environment that will affect them and the organization, he is acting as a. A. negotiator B. monitor C. resource allocator D. disturbance handler E. disseminator 62. Which of the following is a feature of democratic leadership? A. Encouraging employees to discuss concerns and provide inputs B. Using economic rewards solely to motivate employees C. Allowing the employees complete autonomy to work on their own D. Monitoring employee actions very closely and in great detail E. Making decisions and telling the employees what must be done and in what manner 63. The style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in the employee and allows employees to meet their work demands with little or no inputs. A. free-rein B. autocratic C. authoritarian D. repressive E. democratic 64. A(n) leadership style is best for stimulating unskilled or unmotivated employees. A. bureaucratic B. democratic C. free-rein D. autocratic E. inclusive Source: M Business 5 th editin 11
12 65. Which of the following is true of authentic leaders? A. Authentic leaders display all the characteristics of autocratic leaders. B. Authentic leaders make all the relevant decisions and inform employees what they have to do and how. C. Authentic leaders are an exclusive group of leaders whose leadership behaviors are distinctive. D. Authentic leaders are identified by the way in which they conduct themselves with stakeholders. E. Authentic leaders are concerned about the task at hand, rather than establishing lasting relationships with stakeholders. 66. A systematic approach to effective decision making involves all the following steps EXCEPT: A. defining the situation. B. developing options. C. analyzing options. D. delegating the decision. E. implementing the decision. 67. Managers at Sprocket Inc. have recognized declining sales on their water purifier and must make a decision about what to do. Their next step is to: A. define the situation. B. develop options. C. analyze options. D. select the best option. E. implement the decision. 68. When selecting the best option among a series of possible decisions: A. it is always advisable to choose just one. B. quantitative and qualitative analyses are very helpful at all times. C. sometimes all options must be rejected. D. there may not be a best option. E. it may be possible to use a combination of several options. Source: M Business 5 th editin 12
13 69. When selecting the best option for making decisions in a large company, it may be necessary to: A. use a purely objective procedure for the selection. B. rely on one's intuitions, rather than hard data for the selection. C. finalize any one solution that can be applied to solve the problem completely. D. select the option that has been tested through quantitative methods first. E. consider using a subjective procedure when quantitative analysis is not an option. 70. When assessing the appropriateness of a decision option, managers should: A. consider its impact on the organization as a whole. B. think narrowly about the one department most affected by the decision. C. ask their subordinates which option they would choose. D. choose the option that partially addresses the problem. E. go with his or her intuition regarding which option is best. 71. When analyzing options in the decision-making process, managers must consider the appropriateness and of each option. A. novelty B. practicality C. creativity D. universality E. validity 72. Which of the following best describes the importance of monitoring the consequences of decisions? A. The consequences of decisions may not be apparent quickly enough without monitoring. B. Monitoring the consequences of decisions is the immediate logical step after selecting the best option. C. Monitoring the consequences acts like a financial barometer of how expensive decisions are. D. Shareholders like to see the consequences of decisions on annual reports. E. Monitoring the consequences of decisions is not important and it is expensive. Source: M Business 5 th editin 13
14 73. A(n) is a calendar, containing both specific and vague items, that helps a manager figure out what must be done and how to get it done to meet the objectives set by the organization. A. log sheet B. flowchart C. proforma D. referendum E. agenda 74. Which of the following refers to the process of building relationships and sharing information with colleagues who can help them achieve the items on their agenda? A. Controlling B. Directing C. Delegating D. Networking E. Monitoring 75. is used for job networking and is gaining in popularity among the younger generation as an alternative to traditional job hunting. A. EBay B. Watsapp C. LinkedIn D. Orkut E. Amazon Essay Questions 76. What is management? Source: M Business 5 th editin 14
15 77. What are the resources that are essential to every organization? 78. Describe the major functions of management. 79. Discuss the importance of having a well-developed mission for an organization. 80. Explain the three key components of organizational goals. Source: M Business 5 th editin 15
16 81. What are objectives of an organization? 82. Why is it important to periodically review and update tactical plans? 83. List the steps involved in the management function of controlling. 84. Discuss the top management of an organization with appropriate examples. Source: M Business 5 th editin 16
17 85. How do top managers differ from first-line managers? 86. Who constitutes the middle management of an organization? 87. What are some of the skills needed by managers? 88. What informational role does a manager play as a monitor? Source: M Business 5 th editin 17
18 89. Explain the interpersonal role of a manager as a figurehead. 90. Why do managers need technical expertise? Give appropriate examples. 91. How are managers classified on the basis of their leadership styles? 92. Explain the first step in effective decision making with appropriate examples. Source: M Business 5 th editin 18
19 93. Why is monitoring the consequences of decisions important? 94. What is an agenda? 95. Why is networking important to managers? Source: M Business 5 th editin 19
20 Source: M Business 5 th editin 20
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