Test Bank for Fundamentals of Management (Q and A 31-60)

31) A candy manufacturer that made candy at a lower cost without improving the quality of the candy could be said to ________. A) increase effectiveness without increasing efficiency B) increase efficiency without increasing effectiveness C) increase both effectiveness and efficiency D) decrease both effectiveness and efficiency Answer: B Explanation: Lowering cost is a measure of increased efficiency. Making better candy is a measure of increased effectiveness. So lowering cost for unimproved candy shows an increase in efficiency but not effectiveness. 32) The "father" of scientific management was ________. A) Henri Fayol B) Robert L. Katz C) Henry Mintzberg D) Frederick Winslow Taylor Answer: D Explanation: Fayol worked about the same time period as Taylor and was also fairly "scientific" in his approach. However, Taylor was the person who stressed being "scientific" and coined the term scientific management in his 1911 book. Mintzberg and Katz also contributed to ideas about scientific management, but both of these thinkers came later. 33) Taylor began to develop his theory of ________ after a result of viewing workers in steel companies. A) the functions of management B) ethics-based management C) management skills D) scientific management Answer: D Explanation: Taylor's scientific management theory posited that efficiency in organizations could be improved by studying organizations objectively and systematically. The functions of management were developed by Fayol. Management skills were identified by Katz. Ethics-based management is not a known theory of management. 34) A major contribution that Taylor made to the study of management was ________. A) to measure efficiency on a 4-star scale B) to identify the one best way to get a job done C) to identify the three best ways to get a job done D) to measure inefficiency on a 4-star scale Answer: B Explanation: Taylor measured efficiency and inefficiency, but he did not rank them on a star scale. What Taylor did do was collect data to identify the "one best way" to do a job; that is, the most efficient and effective way to complete a task. Taylor focused on only a single best way. 35) Which of the following did Taylor NOT find "appalling" in his study of workers in steel companies? A) Workers "took it easy" on the job. B) Workers employed different techniques for the same job. C) Workers would only attempt to perform a job if they were shown to have aptitude for it. D) Worker output was only about one-third of what was possible. Answer: C Explanation: Taylor indeed discovered that workers did not work hard on the job, did not have standardized methods and techniques for completing a task, and only accomplished a fraction of their theoretical work potential. All of the above dismayed Taylor greatly, convincing him that the situation could be greatly improved with the application of standardized work rules and task methodology. The one thing in the list that Taylor did not discover was workers who refused to work at jobs they did not have aptitude for. In fact, he found that the reverse situation existed–workers performed jobs that they had no aptitude for–this constituted yet another practice that was appalling to Taylor. The Perfect Manager (Scenario) Brenda Kraft has proven herself to be an able manager. Her section has a high project completion rate with the highest-quality product and the lowest defects in her division. In addition, she accomplishes this with fewer full-time people than other managers. Co-workers say that the secret of her success is in her ability to determine what needs to be done and by whom, and her understanding of the basic "management processes." 36) Brenda's ability to determine what needs to be done and by whom is evidence that she excels at which management function? A) planning B) controlling C) leading D) organizing Answer: D Explanation: Good organizers excel at determining the right job for the right person. Planning may include a minor element of delegating, as a planner must map out future tasks. Leading includes an element of directing, which also involves delegating. However, neither planning nor leading is as directly involved in delegating as organizing is. Finally, controlling, largely a monitoring activity, has little to do with delegating. Joe, the Manager (Scenario) As a production supervisor, Joe determines the number of output units his department will produce each week. On Monday, he informs his team that the schedule is going to be difficult this week due to the increased number of output units. He goes on to tell them that he is confident that they can fulfill the schedule because they are tough, talented, and "when the going gets tough, they are the ones who get going." Each day during the week, Joe checks the amount of output that the employees have completed and the number of units that have been rejected. 37) When Joe decides the number of output units his team will be able to produce this week, which management process is he performing? A) controlling B) leading C) planning D) organizing Answer: C Explanation: Planning involves foreseeing the future and making accommodations to deal with what is likely to occur. Joe is performing both of these functions, so he is planning. None of the other choices involve specifically preparing for future occurrences, so planning is the only category that fits here. 38) Effectiveness refers to the relationship between inputs and outputs. Answer: FALSE Explanation: Efficiency is concerned with maximizing the output-to-input ratio. Effectiveness, on the other hand, refers not to how well resources are used but to which resources to use, and whether or not those resources help the organization attain its goals. 39) A goal of efficiency is to minimize output costs while maximizing input costs. Answer: FALSE Explanation: The goal of efficiency is the opposite–to maximize outputs while minimizing inputs. An efficient operation uses the fewest resources to generate the greatest amount of product. 40) Effectiveness refers to the attainment of the organization's goals. Answer: TRUE Explanation: Effectiveness is concerned with "doing the right things"–choosing the tasks that will help the organization achieve its goals. Efficiency, on the other hand, refers to "doing things right," that is, once tasks are chosen they are done with a minimum of waste. 41) Managers who are effective at meeting organizational goals always act efficiently. Answer: FALSE Explanation: A manager may be effective but not efficient. For example, a manager may excel at achieving goals but waste a lot of money, energy, and resources in achieving them. 42) The four contemporary management processes are planning, organizing, leading, and commanding. Answer: FALSE Explanation: Leading is a term that replaced commanding and coordinating. So commanding is considered to be part of leading and not distinct from it. 43) In a short essay, discuss the difference between efficiency and effectiveness. Answer: Efficiency refers to getting the most output from the least amount of input. Efficiency is often referred to as "doing things–that is, performing a task with a minimum of wasted time, energy, labor, and resources and a maximum of the product being created. A mathematical measure of efficiency is given by the ratio of input to output. The smaller the input-to-output ratio, the greater the efficiency of the process. Effectiveness is often described as "doing the right things"–that is, those work activities that will help the organization reach its goals. Where efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals. 44) In a short essay, explain through examples how a process can be (a) efficient but not effective and (b) effective but not efficient. Answer: (a) Efficient but not effective: A craftsman building a wooden table may be highly efficient in the way he uses his time, energy, and wood in producing his product. However, despite this efficiency, the craftsman may still end up with a rickety table, thereby not fulfilling his goal of building a strong, sturdy table and failing to be effective. (b) Effective but not efficient: A craftsman may be inefficient and waste a great deal of time, energy, and wood in building a table. However, the table itself can turn out to be strong, sturdy, and beautiful, thereby fulfilling the goal of the process and qualifying the craftsman as effective. 45) Today, the basic management functions are considered to be ________. A) planning, coordinating, leading, and monitoring B) planning, organizing, leading, and motivating C) commanding, organizing, leading, and decision making D) planning, organizing, leading, and controlling Answer: D Explanation: The four functions are planning, organizing, leading, and controlling. The other choices include part of these functions (coordinating is a part of planning; monitoring is a part of controlling; motivating is a part of leading; and decision making is a key part of all managerial functions). 46) How many management functions were originally proposed by Henri Fayol? A) three: plan, organize, lead B) four: plan, organize, lead, control C) five: plan, organize, command, coordinate, control D) ten: 3 interpersonal, 3 informational, 4 decisional Answer: C Explanation: Fayol originally proposed five management functions: plan, organize, command, coordinate, and control. Two of the five, command and coordinate, were later condensed into a single function, "lead"–so leadership was clearly not one of Fayol's original functions. Later, Henry Mintzberg proposed a different scheme with ten roles. 47) Which of the following is NOT considered to be a part of the planning function of a manager? A) defining goals B) motivating C) mapping out strategy D) making decisions Answer: B Explanation: Defining goals and mapping out strategy are both fundamental parts of the planning function. Making decisions is not explicitly identified as being part of the planning function, but it is clearly part of all managerial functions and so must be ruled out as a correct answer here. This leaves motivating which is a part of the leading function rather than the planning function. 48) The controlling management function is largely a matter of ________. A) resolving conflicts B) determining what needs to be done C) monitoring to see that tasks are accomplished D) enforcing rules for employees Answer: C Explanation: Resolving conflicts falls under the category of leading, while determining what needs to be done is an organizing task. A minor part of controlling may involve enforcing of employee rules, but monitoring represents a much better choice, as the main goal of controlling is to make sure that tasks are being accomplished as planned. 49) Organizing includes ________. A) defining organizational goals B) resolving conflicts C) motivating organizational members D) determining who does what tasks Answer: D Explanation: The key part of the organizing function requires the manager to assign tasks to different organization members. For example, a bicycle racing team's manager will assign roles for each rider to cover during a race. Defining goals is a planning function, while resolving conflicts and motivating are both part of the leadership function. 50) Resolving a conflict would be considered to fall under which managerial function? A) controlling B) planning C) directing D) leading Answer: D Explanation: Conflict resolution is thought to fall under the leading function. Controlling is defined largely as a monitoring function and does not include resolving conflicts. Resolving conflicts is also not a subfunction of planning. Finally, directing is not one of the four major functions and is actually part of leading itself. 51) An important part of the controlling function is ________. A) evaluating B) structuring C) coordinating D) punishing Answer: A Explanation: Once tasks are assigned and work is ongoing, a manager must assess the performance of organization members to see if the work is being carried out successfully. Structuring and coordinating are subfunctions of the organizing function. In extreme cases, punishment might be considered a part of controlling, but evaluating is clearly a much more common part of the controlling function. 52) ________ developed a categorization scheme for defining what managers do, consisting of 10 different but highly interrelated roles. A) Henri Fayol B) Robert L. Katz C) Henry Mintzberg D) Henry Ford Answer: C Explanation: Henry Mintzberg's scheme was developed after careful observations of managers in action and includes three interpersonal roles, three informational roles, and four decisional roles for a manager. Fayol developed the five (later changed to four) functions for a manager. Katz focused on managerial skills, not activities, while Henry Ford was, of course, a famed industrialist who did not contribute to management theory. 53) Giving a speech at an organization banquet would fall into which Mintzberg category? A) informational B) interpersonal C) decisional D) entrepreneurial Answer: B Explanation: Speechmaking sounds like it fits Mintzberg's "spokesperson" category, which is an informational role. However, a banquet speech would be likely to be more inspirational than informational, so it would better fit the interpersonal role of leader and figurehead. The decisional category does not describe the largely social function of making a speech. The entrepreneurial role is a subcategory of the decisional role, so it is incorrect here also. 54) Mintzberg developed his ten managerial roles by ________. A) sending out questionnaires to thousands of managers B) observing hundreds of managers over several years C) closely monitoring the work activities of five chief executives D) using common sense to analyze the situation Answer: C Explanation: Mintzberg's conclusions were not the result of observing hundreds of managers or sending out thousands of questionnaires. Instead, Mintzberg developed his roles after closely observing five executives in action while they were on the job. Mintzberg undoubtedly used common sense to draw some of his conclusions, but common sense was clearly not the primary means by which he created his categories. 55) According to Mintzberg, which of the following fit into the category of interpersonal roles? A) figurehead, leader, and liaison B) negotiator, liaison, and figurehead C) monitor, leader, and resource allocator D) disturbance handler, liaison, and negotiator Answer: A Explanation: The three roles that make up the interpersonal roles are figurehead, leader and liaison. The roles that make up informational roles are monitor, disseminator, and spokesperson. The roles that make up decisional roles are entrepreneur, disturbance handler, resource allocator, and negotiator. 56) A pharmaceutical company manager attending a meeting of academic scientists would be functioning in which role? A) informational B) figurehead C) liaison D) decisional Answer: C Explanation: A liaison functions as a link from one organization to another. In this case, the manager would be linking her for-profit organization to an organization that might provide it with valuable expertise or information. The other choices here are all somewhat valid as the manager would need to procure information, represent her company, and make decisions. However, the liaison role is a much better fit for this situation. 57) A finance manager who reads the Wall Street Journal on a regular basis would be performing which role? A) leader B) monitor C) disseminator D) liaison Answer: B Explanation: One of the responsibilities of a finance manager would be to keep track or monitor important events taking place in the business world. Reading the Wall Street Journal would be a good way to do this. After reading, the manager might disseminate some of the information he learned, but this would be secondary to the information monitoring function. A leader or liaison may indeed read a newspaper but only in the function of being an information monitor. 58) The emphasis that managers give to various activities is generally based on their ________. A) organizational level B) tenure with the organization C) experience in their field D) skill specialty Answer: A Explanation: Studies show that all managers carry out the four basic functions of planning, organizing, leading, and controlling. However, the proportion of time they spend on these activities usually correlates with organizational level. Top managers, for example, tend to do more planning while first-line managers do more leading and supervising. Organizational tenure, experience, and skill specialty may contribute only in minor ways to how managers spend their time. 59) The current research on managerial skill points to four general management skills. Which of the following is NOT one of the four skills? A) Political B) Interpersonal C) Conceptual D) Scientific Answer: D Explanation: The current research by Katz and others point out four management skills which include, conceptual skills, interpersonal skills, technical skills and political skills. 60) The four managerial functions first described by Fayol are considered the "best" because ________. A) they were devised a long time ago B) most sources still use them C) they date back to ancient Greece and Rome D) they are no longer popular today Answer: B Explanation: Fayol's functions are considered to be the "best" because of their usefulness and popularity. Most texts and authorities on managerial matters use the four functions because they are simple, elegant, and powerful in insight.