Test Bank for Fundamentals of Management (Q and A 89-139)

89) When Don reviews the equipment malfunction, what management role will he play in deciding whether to bring in extra people? A) monitor B) disseminator C) resource allocator D) disturbance handler Answer: C Explanation: The decision of whether or not to bring in more workers is a matter of resource allocation–the resources being workers and the allocation referring to how Don chooses to distribute the people he has on various tasks. The malfunction itself could be classified as a disturbance and Don's assessment of it a form of monitoring. However, the key here is Don's decision to deploy extra people, and that again is a matter of resource allocation. The General Manager (Scenario) Michelle is the general manager of a power plant. This morning, she will meet with city officials to discuss environmental issues. After the meeting, she will confer with the plant's section managers to address the concerns of the city representatives. This afternoon, Michelle will meet with a team leader to go over a complaint filed by an employee. After the complaint meeting, Michelle plans to spend time in the library and on the Internet researching new technologies that can be used to improve the performance of her plant. 90) When Michelle learns from city officials about how her plant's operations may be affecting the environment, she is performing which management role? A) leader B) resource allocator C) entrepreneur D) liaison Answer: D Explanation: In meeting with officials outside of the organization, Michelle is providing a link to the outside world, or functioning as a liaison. Of the other choices given, leader and resource allocator do not involve communication with the outside world. An entrepreneur may connect with the outside world, but Michelle is not functioning as an entrepreneur because she is not looking for business opportunities. So liaison is the only choice that makes sense here. 91) When Michelle addresses a complaint filed by an employee, she is performing which management role? A) resource allocator B) disturbance handler C) liaison D) figurehead Answer: B Explanation: A complaint is clearly a type of disturbance, so in addressing an employee's complaint, Michelle is functioning as a disturbance handler. None of the other roles–resource allocator, liaison, or figurehead–involve addressing problems directly or "fixing" situations, so the correct choice here is disturbance handler. 92) When Michelle meets with the section managers to brief them on the concerns of the city officials, which management role is she performing? A) disseminator B) liaison C) disturbance handler D) negotiator Answer: A Explanation: Michelle's meeting with the section managers is one in which she is dispensing information or functioning as a disseminator. Michelle is connecting with others here, but she is not a liaison because she is connecting within the organization, not outside of it. Michelle is neither addressing a problem nor mediating between parties so she is not functioning in the role of disturbance handler or negotiator. 93) When Michelle spends time searching for new technologies for her plant, she is performing which management role? A) leader B) entrepreneur C) spokesperson D) disturbance handler Answer: B Explanation: In seeking out and working to develop new business opportunities, Michelle is clearly functioning as an entrepreneur. An entrepreneur within an organization develops new products that can be used to improve the organization. In this case, Michelle is seeking to develop a new process that will provide a better and more efficient product. The other three choices–leader, spokesperson, and disturbance handler–are all social functions. Being an entrepreneur can have a social aspect, but a large part of entrepreneurship can be accomplished outside of a social context. For example, a chemist can develop a new formula without the aid of others. In this case, Michelle is developing a new product on her own. 94) Which type of management skill does Michelle use most during the day? A) conceptual B) informational C) interpersonal D) political Answer: C Explanation: Three of Michelle's activities for the day require interpersonal skills–meeting with the city officials, meeting with the section managers, and handling the employee's complaint. Michelle's research is the only activity she carries out that does not require some measure of interpersonal skill. None of the other skills–conceptual, informational, or political– is used as frequently. Full file at https://testbanku.eu/ 95) Michelle's evaluation of new technologies that can be used in the production processes of her plant is an example of which type of management skill? A) conceptual B) communication C) political D) interpersonal Answer: A Explanation: In evaluating new technologies, Michelle must break down and sort out a great deal of complex information and come to some conclusion about how some of it might be applied to her own situation. This is clearly an example of conceptual skill–analyzing a complex situation. The task does not require Michelle to communicate her conclusions at this point or use them in a social or political context. So the clear choice here is that Michelle is using conceptual skill. Application of Skills (Scenario) Harris, a budding stand-up comedian, spent months hanging out at Laugh Town, a local club, meeting other stand-ups, doing a lot of listening and finding out how they learned their trade. It got to the point where several of the star acts were trying out their new material on Harris. If Harris laughed, the material must be good, they said. Finally Harris got to the point where he wanted to try out his own act. Bobby G, a successful comic, agreed to listen to Harris. Bobby laughed a few times, but as he performed his material Harris couldn't help but wonder about the odd, pained expression on Bobby's face. When it was over, Bobby told him, "Very funny, Harris. Keep working on it." It was at that point that Harris decided he would become an agent for other comedians. Somehow, he knew that that was what he was truly suited for. 96) Recognizing that the pained expression on Bobby G's face had more meaning than Bobby's encouraging words is an example of Harris using which skill? A) conceptual skill B) political skill C) interpersonal skill D) technical skill Answer: C Explanation: The clues Bobby gave that revealed his true feelings were subtle and difficult to detect. Yet, Harris used his interpersonal skill to infer Bobby's true feelings about his act. Harris noticed Bobby's pained expression and realized that it, more than Bobby's words, was telling him that his act was probably not very funny. 97) Determining who reports to whom is part of the controlling function of management. Answer: FALSE Explanation: The controlling function is largely a process of monitoring and evaluation. Subordinates are observed to see if they are working efficiently. Programs are evaluated to make sure they are progressing toward organizational goals. Deciding who reports to whom is not a part of this function. 98) Providing motivation is part of the controlling function of management. Answer: FALSE Explanation: Motivating employees falls under the category of leadership for a manager, not controlling. 99) Defining goals is a key part of the organizing function of management. Answer: FALSE Explanation: Defining goals for an organization is part of the planning, rather than the organizing, function of management. Usually only top managers participate in defining broad, strategic goals, while all managers define goals for practical levels of organization operation. 100) Deciding who will be assigned to which job is a part of the leading function of management. Answer: FALSE Explanation: Assigning tasks falls largely in the category of organizing. Leading is concerned with directing and motivating employees. 101) Fayol's management processes are completely equivalent to Mintzberg's management roles. Answer: FALSE Explanation: Fayol's four functions of management are planning, leading, controlling, and organizing. Mintzberg's categories include some of these functions, such as leading and making planning decisions, but leave out the others. Though the two systems can ultimately be reconciled with one another, it would be a stretch to say that they are equivalent. The strength of the two systems is that they represent different points of view and provide two different lenses with which to observe and analyze management. 102) In Mintzberg's view, the roles of figurehead, leader, and liaison are all interpersonal roles. Answer: TRUE Explanation: Mintzberg sees the manager's interpersonal chores as providing motivation and support (leading), representing the part of the organization you control (figurehead), and connecting with other parts of the organization and/or the outside world (liaison). 103) Disturbance handler is one of Mintzberg's interpersonal roles. Answer: FALSE Explanation: Though "disturbance handler" sounds like an interpersonal role, it falls under Mintzberg's category of decisional roles. A disturbance handler must decide how to address problems that arise in a way that will best benefit the organization. 104) A key difference between Fayol's and Mintzberg's view of management is that Fayol's view was based on empirical observations of managers in action. Answer: FALSE Explanation: It was Mintzberg, rather than Fayol, who based his categories on what managers actually do. Fayol's categories were based on experience, but his data was not collected in a systematic manner. 105) Most people who study management think that Fayol's categories are more useful than Mintzberg's. Answer: TRUE Explanation: Though Fayol's scheme was not based on scientifically collected data, the simplicity of his categories has made it more popular in management circles than Mintzberg's more complicated scheme. 106) A typical first-level manager spends more of his or her time leading than planning. Answer: TRUE Explanation: Of the three managerial levels, first-level managers proportionally spend the most time leading and the least time planning. Typically, first-level managers spend about twice as much time leading as they do planning. 107) Because profit, or the "bottom line," is not the measure of success for not-for-profit organizations, managers of charitable organizations do not have to concern themselves with the financial aspects of their organizations. Answer: FALSE Explanation: Managers of non-profit organizations are interested in the financial aspects of their organizations primarily for reasons of efficiency. Generally, the less money and resources they waste in being inefficient, the more they have for attaining their actual goals. 108) All managers devote at least some of their time to planning. Answer: TRUE Explanation: Though higher-level managers generally do more planning, even the lowest firstlevel manager will spend some of his or her time planning. Generally, the lower the manager, the less strategic his or her planning is likely to be. 109) A manager in a large business generally will spend more of his or her time as a spokesperson and entrepreneur than his or her counterpart in a small business. Answer: FALSE Explanation: Only the very top managers in a large firm spend much time in spokesperson and entrepreneurial roles. In a small firm, a manager is much more likely to take on the role as a spokesperson or a "rainmaker" who procures new business. 110) The political skills of a manager consist mainly of the ability to understand the workings of government and to present information effectively to others in the form of political speechmaking. Answer: FALSE Explanation: Political skills have little to do with making speeches or understanding government. Instead, political skills for a manager involve acquiring a power base within an organization of loyal allies who pledge support. 111) Technical skills involve a manager's ability to think logically and effectively about complex situations. Answer: FALSE Explanation: Thinking logically about complex situations is a conceptual skill rather than a technical skill. 112) A small business manager in many ways combines the roles of top manager and first-line manager in a large business. Answer: TRUE Explanation: A small business manager is usually a generalist. He or she may map out planning strategy like a top manager at one point in a day and supervise workers like a first-line manager during a different point in a day. 113) In a short essay, list and explain the four basic functions of management. Answer: Planning involves the process of defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities so the organization can achieve its goals. Planning can be short term in scope–planning tomorrow's schedule–or long term–creating a five-year expansion plan. Organizing involves the process of determining what tasks need to be done, who should do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. Leading is primarily concerned with motivating subordinates and getting them to work in the most effective and efficient ways possible. Leading also involves directing and instructing subordinates, as well as resolving any conflicts that arise between them. A leader is a role model who must always keep in mind that his or her example is being observed by subordinates. Typically, a leader who is fair, consistent, sets high standards, and lives up to those standards has the best results. Controlling is largely a function of monitoring subordinates to ensure that work is proceeding as it should and goals will be met. Evaluation is a key part of controlling. Managers must correct inefficiencies and flaws in the process that is being carried out. Controlling also involves rewarding productive individuals and disciplining unproductive individuals to give incentive for them to meet organizational goals. 114) In a short essay, describe the four main types of managerial skills identified by Robert Katz. Answer: Research by Robert L. Katz concluded that managers needed four essential skills. These are technical skills, interpersonal skills, political skills, and conceptual skills. Technical skills are the job-specific knowledge and techniques needed to perform specific tasks proficiently. Interpersonal skills involve understanding, mentoring, and motivating individuals and groups of people. Political skills include the ability to build a power base and establish beneficial connections. Conceptual skills are the skills managers use to think and to conceptualize about abstract and complex situations. 115) What was the primary cause of demise for such companies as Enron, Dave & Barry's, and Circuit City? A) poor management B) difficult economic conditions C) corruption D) governmental regulation Answer: A Explanation: Difficult economic conditions may have contributed to the failure of the companies listed, but many of their competitors faced the same challenge and did not go bankrupt. There is no evidence that corruption had undue influence on any of these failed enterprises. Regulation was also not a likely cause of their problems since again, competitors somehow managed to survive and even flourish under the same or similar circumstances. This leaves poor management as the primary cause of the failure of each company. 116) Who stands to benefit least from studying management? A) a pro football coach B) a pro football fan C) a pro football owner D) a pro football player Answer: B Explanation: Probably all four individuals can benefit from the study of management. The coach, as a manager of players, can probably benefit the most from learning effective management techniques. The owner similarly functions as a top executive of an organization (the team) and can easily obtain benefit in better management. An individual player is not a manager per se, yet to gain insight into the behavior and priorities of both his coach and his fellow players, the player stands to gain from studying management. It is the fan, whose purpose is simply to enjoy the game, who has the least to gain from learning about management. Understanding how the game is organized and managed is not likely to increase a fan's pleasure in watching the game. 117) We all have a vested interest in understanding the way organizations are managed because ________. A) we all stand to gain financially from organizational profits B) we interact with organizations every day of our lives C) we all depend on organizations for employment D) organizations dictate every facet of our lives Answer: B Explanation: Many individuals do not gain financially from organizations for employment or income. For example, a computer repair person may work completely independently and gain little or nothing directly from organizations. Organizations have great influence over people's lives, but it is an overstatement to claim that they "dictate" all facets of our lives. Organizations may not determine everything in our lives, but understanding such important entities can be very helpful. 118) Even people who have no plans to be managers can benefit from studying management because ________. A) they are likely to be managed in their work career B) everyone ends up managing C) they need to be able to outsmart their managers D) management helps people control their emotions Answer: A Explanation: Almost all people must interact with managers in their work careers, and most of them will be managed in some capacity. So being aware of management concepts is useful for the vast majority of people. 119) Which of the following is the mark of a well-managed company? A) It can build a customer base quickly. B) It can find ways to prosper even in economically challenging times. C) It doesn't need to worry about customer loyalty. D) It can find ways to prosper during economic boom times. Answer: B Explanation: Many companies can make a profit in a good economic climate. The mark of a company that is truly well run is that it can find ways to stay profitable in bad times or under conditions of adversity. Companies such as Apple have needed to reinvent themselves numerous times in order to succeed. 120) Companies that are well managed can prosper during difficult economic times by depending on ________. A) government bailouts B) filing for bankruptcy C) raising prices D) a loyal customer base Answer: D Explanation: Well-managed companies, barring catastrophic and undeserved misfortune, should never need to depend on government bailouts or bankruptcy to survive–let alone prosper. Raising prices is also not a wise strategy for braving hard economic times, as more expensive products could serve to decrease rather than increase revenue. The best strategy for surviving adversity is having a loyal customer base. Although revenues may decrease, having faithful customers can usually get a company through a downturn. 121) Which of the following is a difficult ethical challenge to new managers in today's business climate? A) not being able to hire new employees B) having to fire employees who are not productive C) not receiving training in the transition to management D) increasing the amount that employees pay for health care Answer: C Explanation: In the breakout box, "A Question of Ethics," 58% of new managers indicated that they received no training to make the transition to manager. 122) Even people who have no plans to be managers can benefit from studying management because ________. A) they are likely to be managed in their work career B) everyone ends up managing C) they need to be able to outsmart their managers D) management helps people control their emotions Answer: A Explanation: Almost all people must interact with managers in their work careers, and most of them will be managed in some capacity. So being aware of management concepts is useful for the vast majority of people. 123) A business can have 350 employees and still be considered a small business. Answer: TRUE Explanation: A small business may have up to 500 employees if it doesn't engage in any major innovative practices or have a large impact on its industry. 124) Management has an impact on all businesses, but there are almost no examples of businesses that have failed because of poor management. Answer: FALSE Explanation: Examples of businesses that have filed for bankruptcy due to poor management include Gimbel's, Dave & Barry's, Circuit City, Enron, and many others. 125) Management should stay out of the topic of social media. Answer: FALSE Explanation: Managers today need a better understanding of social media in order to provide better guidelines for using them and because it is an important way to attract and interact with customers. 126) Studying management can be extremely useful even for those who don't plan to be managers themselves. Answer: TRUE Explanation: Most people will either be managers or be managed. Studying management helps people deal with the managers in their lives. 127) In a short essay, briefly discuss the importance of studying management. Answer: For a future manager, studying management is a "no-brainer." In general, the more you know about successful management practices the more likely you are to become a successful manager. Even if you are not going to become a manager, there are plenty of reasons to study management. If you become a nonmanagerial employee, for example, studying management can help you understand the managers you have to deal with. If you end up working in a system that does not involve management–for example, as an artist or an actor–you are still highly likely to end up dealing with management in important ways. An artist, for example, may work on her own for the most part, but she still must be able to negotiate the tricky waters of dealing with galleries, dealers, museums, and so on, all of which involve managers and management. Even if you can avoid managers of all types, you will undoubtedly earn and invest money in your life, and understanding management will help you invest that money wisely. As recent economic troubles have proved, good management is more important than ever. Those who try to invest well without knowing about good management practices invest at their peril. A final reason for studying management is the reality that most students, once they graduate from college and begin their careers, will either manage or be managed. 128) In a short essay, explain why customer satisfaction is becoming increasingly important in today's business world. Answer: Companies are finding that their success often depends on customer loyalty, and that loyalty in turn depends on the relationship the customer has with the company. A good example of this is Starbucks. A few years ago, as business for Starbucks began to wane, the company did some major rethinking of its products and services. One key thing that Starbucks did was listen to customers who didn't like to pay for wi-fi service when they went to a coffee shop. So Starbucks changed its long-term policy and provided free wi-fi for customers, a practice that increased business and showed customers that Starbucks really listened to them and was willing to change if an issue was important. 129) In a short essay, explain why innovation is becoming increasingly important in today's business world. Answer: Companies are finding that if they don't keep innovating they fall behind competitors. A good example of this situation involves Apple. Even after being perhaps the most innovative company of the last 50 years, inventing such things as iTunes, iPods, iPads, and iPhones, Apple finds that if it doesn't keep improving its innovations, it gets overtaken by competition. An example is the iPhone. Instead of standing still and allowing Droid phones to take over, Apple has recently acquired some amazing innovations that will keep it ahead of its competitors–at least for a while. 130) A common factor that all managers face in today's world is the ________. A) changing nature of work B) lagging development of technology C) demand to move to a production based economy D) boredom of employees Answer: A Explanation: In today's world, managers are dealing with changing workplaces, a changing workforce, global economic and political uncertainties, and changing technology. 131) The decision of the Seattle Post Intelligencer newspaper to go "all-digital" resulted in ________. A) managers needing to hire new employees B) managers needing to drastically reduce their workforce C) no workforce changes, but changes in the price of the paper D) very few changes in the way the paper did business Answer: B Explanation: The digital version of the newspaper resulted in a workforce reduction of 165 employees to about 20 employees. Obviously, no new employees were needed, and there were large changes in the workforce and the way the paper did business. 132) How do customers play a role in changing the job of the modern manager? A) Managers are learning to think of customers as adversaries in a battle of survival. B) Managers are inviting customers to take control of the planning and design of new products. C) Managers are increasingly de-emphasizing customer satisfaction as a major goal. D) Managers are increasingly including customer satisfaction as a major goal. Answer: D Explanation: Managers are beginning to see the importance of customer satisfaction as a measure of organizational success. Rather than simply look at short-term profit, managers increasingly are focusing on the long-term goal of building a base of satisfied customers who will remain loyal. Accordingly, rather than de-emphasizing the customer, seeing the customer as an enemy, or "partnering," managers are increasingly viewing customers as a database that provides meaningful feedback on the true value of their product. 133) The CEO of Cisco Systems likes to ________. A) read emails from satisfied customers B) listen to voice mails from satisfied customers C) listen to voice mails from dissatisfied customers D) argue with dissatisfied customers and try to convince them that they are wrong Answer: C Explanation: The CEO of Cisco Systems likes to hear the emotion and frustration in a customer's voice when lodging a complaint. That is why he listens to voice mails to get insight into how the company is performing. Reading emails, he claims, does not provide the depth of feeling that voice mails provide. Arguing might be something that the CEO is tempted to do but hasn't reported doing so far. 134) What does a company's prompt, courteous, and helpful answering of a telephone with a human operator signal to the customer who is calling? A) The company has high prices. B) The company is wasting resources on telephone operators. C) The company is responsive to the customer's needs. D) The company has low prices. Answer: C Explanation: In today's competitive business environment, high-quality customer service sends a signal that the company is willing to do whatever is necessary to please the customer–including hiring costly human operators to field phone calls. The other possible signals–that the company has high prices, low prices, or is wasteful–are very unlikely. For most products, pricing would be minimally affected by the presence of human operators. Since customer service is now recognized as being highly important, it is unlikely that customers would view high-quality customer service as wasteful. 135) Why is innovation a key component of a manager's job in today's business environment? A) Innovation keeps employees on their toes. B) Innovation gives companies a "fresh" image without changing much real substance. C) New approaches are always superior to old approaches. D) Innovation efforts are needed in all types of organizations. Answer: D Explanation: Innovation means doing things differently, exploring new territory, and taking risks. And innovation isn't just for high-tech or other technologically sophisticated organizations; innovative efforts are needed in all types of organizations. 136) Which of the following did a Gallop poll find to be the most important variable in employee productivity? A) pay level B) quality of the employee-supervisor relationship C) quality of the workplace environment D) the benefits that employees enjoyed Answer: B Explanation: The number one most important variable in maximizing productivity was found to be the relationship between employees and their supervising managers. This finding is a strong indication that good management really matters. Employees who respect and hold a high opinion of their supervisors work harder and more efficiently than those with less favorable relationships. 137) Research has shown that talented managers contribute about ________ percent more to profit than average managers. A) 10 B) 25 C) 50 D) 90 Answer: C Explanation: Evidence from Gallup and other studies point to the higher success rate of engaging and talented managers. Research has shown that talented managers contribute about 48 percent higher profit to their companies than do average managers. 138) Which management challenge refers to management's responsibility to be attentive to environmental and societal challenges? A) social media B) politics C) managerial ethics D) sustainability Answer: D Explanation: From a business perspective, sustainability has been defined as a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies. 139) Described as the new frontier, this new challenge for managers has the potential to both boast and drain employee productivity. A) organizational politics B) social media C) environmental activism D) intrapreneurship Answer: B Explanation: More and more businesses are turning to social media not just as a way to connect with customers but also as a way to manage their human resources and tap into their innovation and talent. That's the potential power of social media, but the potential peril is in how it's used.