Chapter 1: Management TRUE/FALSE 1. While good management is basic to starting and growing a business, once some measure of success has been achieved, good management becomes less important. Answer: False Good management is basic to starting a business, growing a business, and maintaining a business once it has achieved some measure of success. 2. Managers are responsible for doing the basic work in the company. Answer: False The manager's job is not to do the basic work in the company, but to help others do their work. 3. Companies that plan have larger profits and faster growth than companies that don’t. Answer: True 4. The classical functions of management are (1) making things happen, (2) meeting the competition, (3) organizing people, projects, and processes, and (4) leading. Answer: False The classical functions of management are planning, organizing, leading, and controlling. 5. According to the "What Really Works" box, meta-analysis is a research tool that combines the results of a number of research studies. Answer: True 6. According to the "What Really Works" box, meta-analysis is useful for management theorists and researchers, but it has little value for the practicing manager. Answer: False Meta-analysis is also useful for practicing managers, because it shows what works and the conditions under which management techniques may work better or worse in the "real world." 7. Top managers are responsible for creating a context for change in the organization. Answer: True 8. Top managers are the managers responsible for facilitating team activities toward goal accomplishment. Answer: False Top managers are executives responsible for the overall direction of the organization; team leaders are the managers responsible for facilitating team activities toward goal accomplishment. 9. Typical titles used for top managers are general manager, plant manager, regional manager, and divisional manager. Answer: False These are typical titles for middle managers, not top managers. See Exhibit 1.2. 10. First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing subunit strategies for achieving these objectives. Answer: False This is the responsibility of middle managers. See Exhibit 1.2. 11. Bandai, the third-largest toy maker in the world, has embarked on a series of acquisitions in an effort to become the leading toy maker in the world. The decision to adopt this goal was most likely made by its top management. Answer: True See Exhibit 1.2. 12. Middle managers are typically responsible for coordinating and linking groups, departments, and divisions within a company. Answer: True See Exhibit 1.2. 13. First-line managers are the only managers who do not supervise other managers. Answer: True See Exhibit 1.2. 14. Middle managers engage in plans and actions that typically produce results within two weeks. Answer: False First-line managers engage in such plans and actions. Middle managers plan 6 to 18 months out. 15. The job of team leader would NOT be considered a management position. Answer: False The job of team leader is indeed one of the four kinds of management jobs, which are top managers, middle managers, first-line managers, and team leaders. 16. Team leaders direct the work of individuals within the team structure. Answer: False Instead of directing individuals' work, team leaders facilitate team activities toward goal accomplishment. 17. Team leaders are responsible for managing both internal team relationships and external relationships with other teams, departments, and divisions in a company. Answer: True 18. While interpersonal conflict management is a critical skill for first-line managers, it is not a very important skill for team leaders. Answer: False This is a critical skill for team leaders. Team leaders are responsible for internal team relations. Since the entire team suffers when a conflict arises between members, it is critical for team leaders to know how to help team members resolve conflicts. 19. The three interpersonal sub roles are monitor, disseminator, and spokesperson. Answer: False The three interpersonal sub roles are figurehead, leader, and liaison. See Exhibit 1.3. 20. Mintzberg concluded that managers fulfill three major roles while performing their jobs. These roles are categorized as interpersonal roles, organizational roles, and decisional roles. Answer: False Mintzberg's roles were interpersonal roles, informational roles, and decisional roles. See Exhibit 1.3 21. The decisional roles consist of four subroles. They are entrepreneur, disturbance handler, resource allocator, and spokesperson. Answer: False The four subroles are entrepreneur, disturbance handler, resource allocator, and negotiator. See Exhibit 1.3. 22. When the CEO of Whole Foods slashed his salary from $1 million to $1 to avoid the huge salary disparities that negatively influence employee morale in many corporations, he was using the management function of organizing. Answer: False In inspiring and motivating the employees, the CEO was using the management function of leading. 23. In the entrepreneur role, managers adapt themselves, their subordinates, and their units to change. Answer: True 24. Companies look for a total of four sets of skills in individuals to identify potential managers. These desired skills are technical skills, human skills, conceptual skills, and motivation to manage. Answer: True 25. Technical skill refers to the ability to see the organization as a whole, how the different parts affect each other, and how the company fits into or is affected by its environment. Answer: False Technical skill refers to the ability to apply the specialized procedures, techniques, and knowledge required to get the job done. The foregoing defines conceptual skill. 26. For many managers, the knowledge, skills, and abilities that led to success early in their careers (i.e., prior to their promotion into the ranks of management) may not necessarily help them succeed as managers. Answer: True 27. Conceptual skills are most important for lower-level managers. Answer: False Technical skills are most important for lower-level managers. 28. Upper-level managers may actually spend more time dealing with people than lower-level managers. Answer: True 29. Only first-line managers need technical skills. Answer: False Technical skills are most important for team leaders and first-line managers, but they are also essential for other managerial jobs. 30. The motivation to manage tends to be higher among managers at higher levels in the organization than it is among managers at lower levels in the organization. Answer: True 31. The number one mistake made by managers who were "derailed" from their fast track movement up the managerial ranks was that they didn't develop the necessary technical skills. Answer: False The number one mistake made by managers who were "derailed" from their fast track movement up the managerial ranks was that they were insensitive to others by virtue of their abrasive, intimidating, and bullying management style. 32. Effective managers interfere in decisions that their subordinates should be making alone. Answer: False This practice alienates subordinates. 33. After taking this course, you will have a very clear idea of what you will be expected to do as a manager. Answer: False Most of the new managers conclude that their initial expectations about managerial work were wrong. 34. A management study discovered that companies that invest in their people will create long-term competitive advantages that are difficult for other companies to duplicate. Answer: True MULTIPLE CHOICE 1. _____________ is defined as getting work done through others. A. Management B. Planning C. Organizing D. Strategizing E. Controlling Answer: A 2. When Ruth was hired to be the second-in-command at Graham Mailing Services, she was told that her job was to deal with the employees to make sure they got the mailing done to the customers’ specifications. She was not instructed on how to run machines or in any other technical area because hers was a job in: A. marketing B. relationship control C. management D. customer service E. strategizing Answer: C Management is getting work done through others. 3. A manager striving to improve organizational _____________ is accomplishing tasks that help fulfill organizational objectives. A. efficiency B. effectiveness C. functionality D. synergy E. productivity Answer: B 4. One of the reasons for the slow response to help the victims of Hurricane Katrina was an antiquated FEMA system that was bogged down in bureaucratic red tape. In other words, the failure of assistance to arrive in a timely fashion was due to a lack of: A. apathy B. efficiency C. instrumentality D. effectiveness E. the absence of entropy Answer: B Efficiency means getting work done with a minimum of effort, expense, or waste. 5. _____________ is the accomplishment of tasks that help fulfill organizational objectives. A. Benchmarking B. Optimizing C. Satisficing D. Efficiency E. Effectiveness Answer: E 6. To achieve its goal of increased market share, Krispy Kreme launched a program in Palm Beach County, Florida, that awards grade-school students a free doughnut for every A on their report cards. Which management function was used to create this program? A. controlling B. leading C. focusing D. planning E. organizing Answer: D Planning is determining the means to achieve an organizational goal. 7. Nestlé was unsuccessful in early attempts to sell its chocolate in India. It discovered its chocolate bars were not suitable for the Indian markets because the candy had to sit in direct sunlight without benefit of air conditioning and became messy. Nestlé adopted an innovation strategy and developed Chocostick, a liquid chocolate, which is very popular. Nestlé used which management function to solve its problem? A. planning B. meeting the competition C. making things happen D. organizing people, processes, and projects E. leading Answer: A 8. A manager engaged in the management function of _____________ is determining organizational goals and the means for achieving them. A. planning B. organizing C. leading D. human resources management E. controlling Answer: A 9. When Interstate Bakeries, the makers of Wonder bread, declared bankruptcy, the company’s objectives were to increase its revenues by at least 5 percent and reduce its net losses by at least 80 percent. Which management function was used to set these goals and will help the company meet these goals? A. planning B. organizing C. controlling D. motivating E. leading Answer: A Planning is determining organizational objectives and a means for achieving them. 10. The candy market in Asia has grown recently as more Asians emulate the American lifestyle, and Hershey has decided that to grow it must start selling to the Asian markets. This decision was part of which management function? A. planning B. organizing C. leading D. controlling E. evaluating Answer: A Planning is determining organizational objectives and a means for achieving them. 11. A business school administrator who is determining what classes will be offered in which rooms, and who will teach each specific class is involved in which classical management function? A. making things happen B. organizing C. controlling D. motivating E. leading Answer: B 12. The candy market in Asian has grown recently as more Asians emulate the American lifestyle, and Hershey has decided that to grow it must start selling to the Asian markets. Which management function will help determine who decides how Hershey will get its products into the small pop-and-mom retail outlets that are prevalent in China? A. planning B. organizing C. leading D. controlling E. evaluating Answer: B Organizing is deciding where decisions will be made, who will do what jobs, and who will work for whom. 13. Designer Karl Lagerfeld partnered with Swedish retailer Hennes & Mauritz to sell an affordable line of high-fashion clothing, which Lagerfeld will design exclusively for the retailer. Hennes & Mauritz will take responsibility for manufacturing and marketing the clothes. Which management function guided the alliance between the designer and the retailer? A. controlling B. leading C. motivating D. planning E. organizing Answer: E Organizing is deciding where decisions will be made, who will do what jobs, and who will work for whom. 14. According to the "What Really Works" box, a(n) _____________ is a type of study that often shows the conditions under which management techniques may work better or worse in the real world. A. social audit B. meta-analysis C. effectiveness analysis D. SWOT analysis E. risk assessment Answer: B 15. According to the "What Really Works" box, meta-analysis is of value to and will benefit: A. investors and financial institutions B. any student of business C. all stakeholders D. management scholars and practicing managers E. none of these Answer: D 16. According to the "What Really Works" box, which of the following statements about meta-analysis is true? A. Meta-analysis is a statistical technique applicable only in a single research study. B. Meta-analysis is of value to all organizational stakeholders. C. Statistics generated through meta-analysis cannot be converted to an understandable format. D. Meta-analysis shows the conditions under which management techniques may work better or worse in the real world. E. Meta-analysis only benefits inexperienced managers. Answer: D 17. According to the "What Really Works" box, _____________ suggest that a test of general mental ability will be a successful predictor of a job applicant's on-the-job performance about 75 percent of the time. A. meta-analyses B. market audits C. employee-fit tests D. job analyses E. social interaction audits Answer: A 18. A U.S. Marine drill instructor motivating new recruits to challenge themselves is engaged in which management function? A. planning B. organizing C. controlling D. motivating E. leading Answer: E 19. The Massachusetts Institute of Technology (MIT) announced that it was going to overcome the “digital divide” by making a $100 laptop for the poor children of the world. By relying strongly on the _____________ function of management, MIT has nearly achieved its goal. A. planning B. organizing C. leading D. controlling E. evaluating Answer: D Controlling is monitoring progress toward goal achievement and then taking corrective action when the project goal appears to be unreachable. 20. A manager engaged in the management function of _____________ is monitoring progress toward goal achievement and taking corrective action when needed. A. planning B. organizing C. leading D. controlling E. motivating Answer: D 21. Jane is in charge of her Rotary Club’s annual fund-raising auction. She will decide who will ask local businesses for prizes, who will determine the site, who will sell tickets to customers, and who will work the night of the auction. She is engaged in the management function of: A. planning B. controlling C. leading D. resource allocation E. organizing Answer: E Organizing is deciding where decisions will be made, who will do what jobs, and who will work for whom. 22. Southern Living magazine was forced to pull an issue off newsstands and mail warnings to 2.5 million subscribers after it became clear that a recipe for dinner rolls described as "little pillows from heaven" created a rather impressive firestorm. The management function of _____________ was used when the warnings were mailed to subscribers. A. planning B. organizing C. controlling D. motivating E. leading Answer: C Controlling is taking corrective action when necessary. 23. Hormel Foods had to recall 104,000 pounds of Stagg canned chili—labeled "hearty beef with a kick of green chilies"—after the kick turned out to come instead from the ground-up parts of a plastic handheld calculator. The recall was the application of which management function? A. controlling B. leading C. motivating D. planning E. organizing Answer: A Controlling is the monitoring of progress toward the achievement of goals and then taking what corrective action is indicated by the monitoring. 24. As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Rade back had to find inexpensive ways to reward employees and bolster morale during a sales-flattening economic downturn. Rade back had to engage in which management function? A. planning B. organizing C. leading D. controlling E. evaluating Answer: C A manager engaged in the management function of leading is inspiring and motivating workers to continue to work hard to achieve organizational goals. 25. Robert Rothschild Farm boosted the morale and showed its gratitude to its 75 employees at its retail store, cafe, and production facility by hosting its first employee appreciation week. It used the management function of _____________ to boost morale. A. leading B. commanding C. organizing D. controlling E. resource allocation Answer: A Leading involves inspiring employees to work harder to achieve organizational goals. 26. Eastman Kodak owns a company that manufactures dental radiation equipment. The company, which is run as an independent unit, has experienced excessive financial losses the last three years. The _____________ for the company would be expected to develop the long-term plans needed to make the company profitable. A. supervising manager B. top manager C. first-line manager D. middle-level manager E. department manager Answer: B 27. When Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas, C2 and Pepsi Edge to bank on the low-carb trend, carb-conscious consumers rejected the drinks en masse since one of their key tenets is avoiding refined sugar in any amount. The new brands grabbed a combined market share of less than 1 percent. Coke’s and PepsiCo’s _____________ would be responsible for determining that the product should be deleted from each of their product lines. A. middle-level management B. first-line management C. team leaders D. product supervisors E. top management Answer: E 28. Which of the following typically is NOT performed by top managers? A. setting objectives consistent with organizational goals or planning and implementing subunit strategies for achieving these objectives B. developing in employees the attitudes of commitment to and ownership in the company's performance C. creating a positive organizational culture through language and action D. monitoring the business environment E. creating a context for change Answer: A See Exhibit 1.2. 29. After declaring bankruptcy, Interstate Bakeries, the makers of Twinkies, Ho Hos, and Ding Dong snack cakes, decided to modernize its products’ look by redesigning its packaging. _____________ would be responsible for implementing this package change. A. Middle-level management B. First-line management C. Team leaders D. Product supervisors E. Top management Answer: A Middle managers implement the strategies needed to achieve top management’s goals. See Exhibit 1.2. 30. A middle manager for a manufacturer of environmentally-friendly packaging would: A. monitor how consumers feel about environmental waste B. schedule vacation time for employees C. determine how the company was going to implement a plan calling for a 10 percent decrease in costs D. be responsible for maintaining a positive organizational culture E. do all of these Answer: C See Exhibit 1.2. 31. A top manager for a management consulting firm would: A. establish a positive organizational culture that encourages employees to be passionate about their clients B. make sure employees are attired according to the company dress code C. evaluate the performance of individual consultants D. monitor expense statements turned in by consultants E. coordinate activities within and between consultants working in the field and support staff in the office Answer: A See Exhibit 1.2. 32. The chairs of the accounting, marketing, and communications departments at a typical university are assuming the roles of _____________ because they supervise nonmanagerial employees. A. supervising managers B. top managers C. first-line managers D. middle-level managers E. department managers Answer: C See Exhibit 1.2. 33. As a result of a major blackout in Los Angeles, _____________ in the police department had to determine which police officers were going to work overtime. A. top managers B. middle managers C. administrative managers D. first-line managers E. team leaders Answer: B Middle managers are responsible for planning and implementing subunit strategies for achieving the objectives of top managers. See Exhibit 1.2. 34. _____________ are responsible for creating a positive organizational culture through language and action. A. Top managers B. Middle managers C. Team leaders D. Supervisors E. Group facilitators Answer: A 35. Robert Rothschild Farm boosted the morale and showed its gratitude to its 75 employees at its retail store, cafe, and production facility by hosting its first employee appreciation week. "It was a good mix of fun and learning," said Robin Coffey, marketing manager. Coffey is an example of a: A. supervising manager B. top manager C. first-line manager D. middle-level manager E. department manager Answer: D The marketing department is a division. A division manager is a middle-level manager. 36. _____________ were most likely responsible for Hershey's decision to sell its products in the Asian markets. A. General managers B. Middle managers C. First-line managers D. Team leaders E. Top managers Answer: E Top managers are responsible for creating change and long-term strategies. 37. As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Radeback had to find inexpensive ways to reward employees and bolster morale during a sales-flattening economic downturn. Radeback is an example of a: A. supervising manager B. top manager C. first-line manager D. middle-level manager E. department manager Answer: D The human resources department is a division. A division manager is a middle-level manager. See Exhibit 1.2. 38. Typical responsibilities for _____________ include setting objectives consistent with organizational goals and then planning and implementing the subunit strategies for achieving these goals. A. top managers B. shift supervisors C. first-line managers D. team leaders E. middle managers Answer: E 39. Middle managers typically: A. plan and allocate resources B. coordinate and link groups and departments C. implement changes and strategies generated by top managers D. monitor the activities of first-line managers who report to them E. do all of these Answer: E 40. Typical responsibilities for _____________ include coordinating and linking groups, departments, and divisions within a company. A. top managers B. middle managers C. vice presidents D. team leaders E. first-line managers Answer: B 41. It is the responsibility of _____________ to develop intermediate plans, designed to produce results within six to eighteen months. A. top managers B. middle managers C. first-line managers D. group facilitators E. team leaders Answer: B 42. First-line managers will most likely have to: A. monitor the performance of corporate investments B. encourage, monitor, and reward the performances of their employees C. determine how to deal with long-term environmental changes D. periodically monitor the company's organizational culture E. do none of these Answer: B 43. Managers who train and supervise the performance of nonmanagerial employees, and who are directly responsible for producing the company's products or services, are categorized as: A. general managers B. middle managers C. first-line managers D. team leaders E. top managers Answer: C 44. Robert Rothschild Farm boosted the morale and showed its gratitude to its 75 employees at its retail store, cafe, and production facility by hosting its first employee appreciation week. A _____________ manager more than likely planned the employee picnic, selected and ordered the awards, and encouraged workers to attend. A. marketing B. team C. first-line D. top E. middle Answer: C One of the duties of the first-line manager is to reward the performance of others. 45. Walker supervises operations on the chassis assembly line for a large vehicle manufacturer. Most of his time is spent in quality control maintenance, scheduling workers, and training new employees. Walker would be categorized as a: A. first-line manager B. middle manager C. top manager D. team leader E. group facilitator Answer: A 46. A first-line manager for a large electric generator manufacturer would: A. monitor how its customers feel about electric-powered engines B. determine if the company needed to increase its production by adding another shift C. monitor and manage the performance of the company's international subsidiaries D. manage the performance of employees who actually build the generators E. do all of these Answer: D 47. A _____________ for a McDonald's fast-food restaurant would be responsible for placing orders for food and paper supplies and for setting up weekly work schedules. A. corporate vice president B. middle manager C. first-line manager D. division supervisor E. top manager Answer: C 48. Middle managers will most likely have to: A. facilitate a bottom-up planning approach to supervising B. manage the performance of entry-level employees C. implement the changes generated by top managers D. develop employees' commitment to and ownership of the company's performance E. monitor long-term environmental trends Answer: C 49. The CEO of Camper brand shoes expects its designers to operate like a team when they create new shoe designs. Most of its designers do not have a background in fashion so it is important that they share their expertise. Each team has a leader who is responsible for: A. developing organizational codes of ethics B. managing external and internal team relationships C. developing growth strategies D. coordinating the performances of all teams E. doing all of these Answer: B 50. Team leaders typically: A. conduct quality control audits B. manage external and internal relationships C. act as department liaisons D. oversee strategy implementation E. do all of these Answer: B 51. According to Mintzberg, which of the following lists the three major roles managers fulfill while performing their jobs? A. interpersonal roles, informational roles, and decisional roles B. informational roles, ethical roles, and action roles C. corporate roles, coordination roles, and informational roles D. decisional roles, informational roles, and organizational roles E. interpersonal roles, intrapersonal roles, and departmental roles Answer: A See Exhibit 1.3. 52. Which of the following is an example of an interpersonal role? A. figurehead B. monitor C. disseminator D. resource allocator E. spokesperson Answer: A The other interpersonal roles are leader and liaison. See Exhibit 1.3. 53. According to Mintzberg, managers engaged in _____________ roles are talking to people inside and outside the organization. A. decisional B. conceptual C. interpersonal D. informational E. motivational Answer: C See Exhibit 1.3. 54. The marketing manager of Interstate Bakeries was asked to meet with the organization's research and development department to explain why the company needed to change its 25-year-old package design for Twinkies. The marketing manager took on an interpersonal role as: A. liaison B. disseminator C. disturbance handler D. figurehead E. resource allocator Answer: A In a liaison role, managers deal with people outside their units. 55. Millard Fuller, who founded the world-renowned Christian housing ministry Habitat for Humanity International with his wife. Before ending his service as president, Fuller had been forced into assuming a figurehead role since the hiring of a new managing director. What did Fuller do? A. He distributed critical information to employees. B. He monitored the environment. C. He helped the organization adapt to incremental changes. D. He negotiated salaries, raises, and promotions. E. He performed ceremonial duties like greeting company visitors. Answer: E The figurehead role is an interpersonal role in which the manager in that role represents the company in various ways to the external environment. 56. What interpersonal role, as defined by Mintzberg, was the CEO of Whole Foods assuming when he slashed his salary from $1 million to $1 to avoid the huge salary disparities that negatively influence employee morale in many corporations? A. figurehead B. monitor C. leader D. negotiator E. spokesperson Answer: C In the leader role, managers motivate and encourage workers to accomplish organizational goals. 57. At the death of her husband, Miriam McAllister became the CEO of a company that is the world's leading manufacturer of kidney dialysis machines. It was believed when she took the position that she would only perform ceremonial duties and would not want to be actively involved in the running of the company. In other words, it was assumed she would be a: A. resource allocator B. monitor C. disseminator D. spokesperson E. figurehead Answer: E It was assumed that McAllister would perform ceremonial duties. 58. Lorenzo Fluza is the owner and CEO of the company that makes Camper shoes. Mintzberg would describe Lorenzo Fluza as taking a leader role within the organization. This means he spends much of his time: A. negotiating B. responding to instrumental change C. performing ceremonial duties D. motivating and encouraging its employees to meet their organizational objectives E. ignoring interpersonal roles Answer: D 59. As described by Mintzberg, a marketing manager who was hired by a manufacturer of plumbing fixtures to operate information booths at more than twenty different international trade shows annually would have the informational role of: A. entrepreneur B. resource allocator C. figurehead D. communicator E. spokesperson Answer: E In the spokesperson role, managers share information with people outside the firm. 60. According to a speech made by Dr. Hans-Joachim Koerber to a forum for retail leaders, "Sustained growth is essential. Sustaining growth is a challenge for virtually every company." Koerber is the CEO of Metro Group, Germany's largest retailer, which has more than 2,400 stores in 30 countries. What informational role did Koerber assume? A. liaison B. resource allocator C. figurehead D. negotiator E. spokesperson Answer: E In the spokesperson role, managers share information with people outside their company. 61. During a meeting of the Ambulatory Care Nursing Association (ACNA) board of directors, a commitment was made to ask members for their feedback about their experiences with and perceptions of ACNA. The head of the organization said, "The essence of being a leader is to make sure the organization knows itself." Then she volunteered to conduct the environmental scanning and share what she learned with the others. What informational roles is she assuming? A. liaison and spokesperson B. resource allocator and liaison C. monitor and disseminator D. negotiator and monitor E. spokesperson and liaison Answer: C In the monitor role, she conducts environmental scanning. In the disseminator role, she shares what she has learned. 62. At the death of her husband, Miriam McAllister became the CEO of a company that is the world's leading manufacturer of kidney dialysis machines. Even though she was not expected to, she quickly asked company employees to develop ideas for new products that would lead to organizational growth in a changing environment. The decisional role she took on was that of a(n): A. leader B. disseminator C. resource allocator D. spokesperson E. entrepreneur Answer: E In the entrepreneur role, managers adapt themselves, their subordinates, and their units to change. 63. Jimmy Wales is the CEO of Wikipedia, a user-generated encyclopedia 42 times the size of Encyclopedia Britannica. At the inception of the online project, Wales had to assume the decisional role of _____________ as he dealt with critics of the project who contended that allowing anyone to enter data into the encyclopedia would lead to inconsistencies and misinformation. A. resource allocator B. entrepreneur C. disturbance handler D. liaison E. disseminator Answer: C The disturbance handler role is played when managers must respond to severe problems demanding immediate attention. 64. In the _____________ role, managers adapt themselves, their subordinates, and their units to change. A. resource allocator B. entrepreneur C. disturbance handler D. liaison E. disseminator Answer: B 65. When Spiegel announced to the media that it was nearing the completion of its corporate restructuring and was one step closer to emerging from Chapter 11 status after filing its proposed joint plan of reorganization. According to Mintzberg, which managerial role would have been adopted in order to make this announcement to the media? A. environmental B. controller C. spokesperson D. entrepreneur E. interpersonal Answer: C The spokesperson shares information with people outside the company. 66. Connie O’Day is a middle-level manager for the publishers of Free Spirit magazine, a publication targeted to women who are not worried about finding a husband or maintaining a house and garden. She spends much of her day conducting interviews with groups of women to determine what they consider most important in their lives. She also keeps an eye on the sales and content of other women’s magazines. Which informational role does O’Day perform? A. entrepreneur B. monitor C. resource allocator D. spokesperson E. liaison Answer: B In the monitor role, managers scan their environments for information, actively contact others for information, and because of their personal contacts, receive a great deal of unsolicited information. 67. The informational role managers play when they share information they have collected with their subordinates and others in the company is called the _____________ role. A. monitor B. figurehead C. resource allocator D. entrepreneur E. disseminator Answer: E 68. The sales manager is in charge of monitoring the expense accounts of her sales force. In this decisional role, she acts as a(n): A. resource allocator B. entrepreneur C. disturbance handler D. monitor E. disseminator Answer: A A resource allocator decides who gets what resources. 69. In Great Britain, Nestlé introduced a candy bar called Yorkie with the slogan "It's not for girls!" The resulting furor over this sexist campaign required its British managers to spend a great deal of time in the role of: A. resource allocators B. entrepreneurs C. disturbance handlers D. liaisons E. disseminators Answer: C The disturbance handler role is played when managers must respond to severe problems that demand immediate attention. 70. According to Mintzberg, which role would a manager assume if she were trying to convince union members to accept a 25-cent-per-hour reduction in pay in order to keep the manufacturing plant open? A. resource allocator B. entrepreneur C. disturbance handler D. liaison E. negotiator Answer: E In the negotiator role, managers negotiate schedules, projects, goals, resources, and employee raises. 71. An accountant with _____________ skill has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses. A. technical B. human C. conceptual D. motivational E. interpersonal Answer: A Technical skills are the ability to apply the specialized procedures, techniques, and knowledge required to get the job done. 72. Which type of skills tends to be most important to the success of lower-level managers? A. decisional skills B. human skills C. conceptual skills D. motivation to manage E. technical skills Answer: E 73. What type of skills tends to be equally important at all levels of management? A. technical skills B. human skills C. decisional skills D. motivation to manage E. conceptual skills Answer: B 74. Creating a competitive advantage through people relies heavily on the use of which skill to reward people for providing exceptional customer service? A. motivation to manage B. conceptual C. technical D. interpersonal E. decisional Answer: A 75. The ability to perform _____________ increases in its importance to success as managers rise through the managerial ranks. A. interpersonal skills B. human skills C. conceptual skills D. informational skills E. technical skills Answer: C 76. Which skills increase in their importance to success as managers rise through the managerial ranks? A. human skills and decisional skills B. informational skills and the motivation to manage C. conceptual skills and the motivation to manage D. conceptual skills, technical skills, and human skills E. human skills and informational skills Answer: C 77. In 2007, Rupert Murdoch, the owner of a global newspaper empire, met with his top executives to determine survival strategies for newspapers in the face of increasing audience migration to online sources of news. Which skills will be most important in developing this strategy? A. interpersonal skills B. human skills C. conceptual skills D. informational skills E. technical skills Answer: C Conceptual skills are the ability to see the organization as a whole and understand how its different parts affect each other and its environment. 78. Managers need different skills to perform their various roles successfully. A middle manager who assumed a negotiator role when dealing with employees would rely most heavily on his or her _____________ skills. A. decisional B. human C. conceptual D. technical E. informational Answer: B 79. There have been several studies of managers who fail (derailers) and managers who succeed in climbing the organizational hierarchy (arrivers). At the death of her husband, Miriam McAllister became the CEO of a company that is the world's leading manufacturer of kidney dialysis machines and encouraged its expansion into other hospital services. McAllister has almost doubled her company's revenues since she took control. As an arriver, McAllister would be: A. unable to adapt her style of management to what was needed by her subordinates B. sensitive to others C. cold, aloof, and arrogant D. overly ambitious E. abrasive and intimidating Answer: B The number one mistake made by derailers is their insensitivity to others. 80. Stan Dali was the most successful salesperson his realty company had ever hired. He quickly was promoted to sales manager, but was never able to reach any higher levels of management because of the way he bullied his employees. Dali is an example of a: A. derailer B. staller C. failure D. non-arriver E. laggard Answer: A A derailer is a manager who was successful at the beginning, but gets knocked off the fast track. 81. There have been several studies of managers who fail (derailers) and managers who succeed in climbing the organizational hierarchy (arrivers). Which of the following statements describes one of the facts learned from these studies? A. Arrivers differ significantly from derailers. B. Arrivers have no weaknesses. C. Arrivers and derailers both possess two or more fatal flaws regarding how they managed people. D. The number one mistake of derailers was that they were unable to think strategically. E. Arrivers are sensitive to the feelings of others. Answer: E Both arrivers and derailers are talented. Arrivers have weaknesses just like derailers. Arrivers typically have no more than one fatal flaw. The number one mistake of derailers is that they are insensitive to the needs of others. 82. Inchow Environments, Inc. was once a successful manufacturer of fishing lures. It hired a new CEO who was a derailer. As a derailer, the new CEO: A. refused to listen to the advice given him by the previous CEO B. was too flexible C. preferred to take the role of figurehead D. could not think strategically E. is accurately described by all of these Answer: D One of many fatal flaws that derailers have is the inability to think strategically. 83. There have been several studies of managers who fail (derailers) and managers who succeed in climbing the organizational hierarchy (arrivers). Which of the following statements describes one of the facts learned from these studies? A. Derailers are insensitive. B. Arrivers fail to inform others when things will not be done on time. C. Arrivers fail to admit mistakes. D. Arrivers fail to take responsibility for mistakes. E. There are several significant differences between arrivers and derailers. Answer: A The alternatives beginning “Arrivers” describe derailers not arrivers. Arrivers have only one fatal flaw, and derailers have at least two fatal flaws. 84. As the shift supervisor at a car wash, Jakob is bossy, arrogant, and insensitive to the needs of his subordinates. He is unable to delegate any tasks to the other employees. He will more than likely never be a middle or top manager because he: A. is a management laggard B. is a derailer C. does not understand the importance of synergy D. is not a hands-on doer E. is a non-arriver Answer: B The number one mistake made by derailers is their insensitivity to others. 85. After six months as a manager, new managers typically believe their job is: A. to provide negative reinforcement B. to exercise formal authority C. to maintain control and avoid delegation D. people development E. to solve problems for subordinates Answer: E See Exhibit 1.6. 86. After their first year of managerial experience, managers tend to: A. exercise more formal authority B. do less listening and more telling C. view themselves as the boss D. use more positive reinforcement E. do all of these Answer: D See Exhibit 1.6. 87. After a year as a manager, new managers typically realize their job is: A. to be a troubleshooter B. to manage tasks C. just as they expected D. people development E. to be a problem-solver Answer: D See Exhibit 1.6. 88. Which of the following management practices can be used by an organization that wants to create a competitive advantage through its employees? A. self-managed teams B. employment security C. high wages contingent on organizational performance D. sharing information E. doing all of these Answer: E See Exhibit 1.7 for other examples of management practices used to create a competitive advantage through people. 89. Leon Dodd is a member of a self-managed team at Standard Aero Alliance, Inc. (SAAI). His team’s top priorities are understanding customer requirements and expectations. It would appear that SAAI is: A. using employee benchmarking B. allowing its employees to assume various decisional roles C. letting its teams handle all planning functions D. using its employees to create a competitive advantage E. relying more on conceptual skills than human skills Answer: D The use of self-managed teams is one management practice suggested as a way to create a competitive advantage through employees. See Exhibit 1.7. 90. Wainscott Finch, a Fortune 500 management consulting firm, conducts Project Management Preparatory Academies for its clients in which participants spend 70 hours learning how to create a differential competitive advantage through their employees. Why? A. The maintenance of employee relations is the latest trend in business. B. Satisfied employees yield satisfied customers. C. The participants’ companies do not have a competitive advantage. D. Employees only need job security to be satisfied in their work. E. Environmental monitoring has detected a general trend toward organizational dissatisfaction. Answer: B Research indicates that managers have an important effect on customer satisfaction because they are responsible for how satisfied their employees are at their jobs. Satisfied employees provide much better customer service. 91. Refer to What Would You Do? Which traditional management function will be the key in ensuring that Starbucks reduces wastes, decreases costs, and still operates efficiently? A. organizing B. leading C. goal setting D. motivating E. controlling Answer: E Controlling means monitoring progress toward goal achievement and taking corrective action when needed. 92. Refer to What Would You Do? The CEO of Starbucks: A. is responsible for developing employees' commitment to the company's performance B. monitors and manages the performance of subunits and individual managers who report to them C. is responsible for setting objectives consistent with organizational goals D. teaches employees how to do their job more efficiently E. coordinates and links groups, departments, and divisions within a company Answer: C Top managers are responsible for the overall direction of the organization. 93. Refer to What Would You Do? What specific role did the CEO assume when telling employees, "We have to defend our position; we have lots of companies small and large who want to take a piece of our business away." A. figurehead B. monitor C. disseminator D. resource allocator E. spokesperson Answer: C Disseminators share information with others in their departments or companies. 94. Refer to What Would You Do? What specific decisional role did Schwartz assume when he was asked to return to the position of CEO for Starbucks? A. entrepreneurial B. conceptual C. interpersonal D. liaison E. negotiator Answer: E In the entrepreneurial role, managers adapt themselves, their subordinates, and their units to change. 95. Refer to What Would You Do? What skills should the CEO primarily use to produce a turnaround in sales or profits? A. decisional B. conceptual C. interpersonal D. informational E. motivational Answer: B Conceptual skills are the ability to see the organization as a whole, understand how the different parts affect each other, and recognize how the company fits into or is affected by its environment. SHORT ANSWER 1. Define efficiency and effectiveness, and explain their relationship to the process of management. Answer: Managers need to be concerned with both efficiency and effectiveness in the work process. Efficiency is getting work done with a minimum of effort, expense, or waste. By itself, efficiency is not enough to ensure managerial success. Managers must also strive for effectiveness, which is accomplishing tasks that help fulfill organizational objectives. 2. Define meta-analysis, and briefly identify what it is used for. Answer: Meta-analysis refers to a study of studies. It is a statistical approach that provides the best scientific estimate of how well management theories and practices work. Thus, it is used to assess the value of management theories and practices. 3. List and briefly identify the four classical functions of management. Answer: The four classical functions of management are planning (determining organizational goals and the means for achieving them), organizing (deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom), leading (inspiring and motivating workers to work hard to achieve organizational goals), and controlling (monitoring progress toward goal achievement and taking corrective action when needed). 4. Identify the four different kinds of managers. List one of the basic responsibilities for each of these four different types of manager. Answer: There are four different kinds of managers. TOP MANAGERS are responsible for creating a context for change, developing attitudes of commitment and ownership, creating a positive organizational culture through words and actions, and monitoring their company's business environments. MIDDLE MANAGERS are responsible for planning and allocating resources, coordinating and linking groups and departments, monitoring and managing the performance of subunits and managers, and implementing the changes or strategies generated by top managers. FIRST-LINE MANAGERS are responsible for managing the performance of nonmanagerial employees, teaching direct reports how to do their jobs, and making detailed schedules and operating plans based on middle management's intermediate-range plans. TEAM LEADERS are responsible for facilitating team performance, managing external relationships, and facilitating internal team relationships. 5. What are the four major responsibilities for the typical middle manager? Answer: The four major responsibilities of middle managers are (1) setting objectives consistent with top management's goals and planning and implementing subunit strategies for achieving these objectives; (2) coordinating and linking groups, departments, and divisions within a company; (3) monitoring and managing the performance of subunits and individual managers who report to them; and (4) implementing the changes or strategies generated by top managers. 6. Specify the differences in the timeframes involved in planning done by top, middle, and first-line managers. Answer: Top managers typically create long-term plans, designed to produce results three to five years out. Middle managers are responsible for intermediate plans (six to eighteen months out). First-line supervisors engage in plans and actions that typically produce results within two weeks. 7. Among the four kinds of management jobs, specify the one that is the most recent addition to organizations. List the basic responsibilities of that management job. Answer: The fourth kind of manager is a team leader. This is a relatively new kind of management job that developed as companies shifted to self-managing teams, which, by definition, have no formal supervisor. Team leaders are responsible for facilitating team performance (but the team itself is responsible for actual performance), managing external relationships, and facilitating internal team relationships. 8. List and briefly identify the three basic managerial roles identified by Mintzberg. Include a list of the basic subroles that characterize each of these roles in your definition. Answer: Managers fulfill three major roles while performing their jobs: (1) interpersonal roles (i.e., talking to people), which include the subroles of figurehead, leader, and liaison; (2) informational roles (i.e., gathering and giving information), which include the subroles of monitor, disseminator, and spokesperson; and (3) decisional roles (i.e., making decisions), including the subroles of entrepreneur, disturbance handler, resource allocator, and negotiator. 9. List and briefly identify the four kinds of skills that companies look for in managers. Answer: When companies look for employees who would be good managers, they look for individuals who have technical skills, human skills, and conceptual skills, and are motivated to manage. Technical skills refer to the ability to apply the specialized procedures, techniques, and knowledge required to get the job done. Human skills are the ability to work well with others. Conceptual skills are the ability to see the organization as whole, how the different parts of the company affect each other, and how the company fits into or is affected by its external environment. Motivation to manage is an assessment of how enthusiastic employees are about managing the work of others. 10. Within the four sets of skills that companies look for in managers, specify those that tend to be more important or more prevalent in higher-level than lower-level managers. Answer: When companies look for employees who would be good managers, they look for individuals who have TECHNICAL SKILLS (the ability to apply the specialized procedures, techniques, and knowledge required to get the job done), HUMAN SKILLS (the ability to work well with others), and CONCEPTUAL SKILLS (the ability to see the organization as whole, how the different parts of the company affect each other, and how the company fits into or is affected by its external environment), and are MOTIVATED TO MANAGE (an assessment of how enthusiastic employees are about managing the work of others). It is the latter two characteristics that tend to be stronger in higher-level managers. Conceptual skill increases in importance as managers rise through the management hierarchy. In addition, managers at higher levels usually have stronger motivation to manage than managers at lower levels. 11. Identify three of the five most significant mistakes made by managers. Answer: Five of the most important mistakes made by managers are (1) being abrasive and intimidating; (2) being cold, aloof, or arrogant; (3) betraying trust; (4) being overly ambitious; and (5) failing to build a team and then delegate to that team. See Exhibit 1.5. 12. Briefly explain how and why companies can create competitive advantage through people. Answer: Well-managed companies are competitive because their work forces are smarter, better trained, more motivated, and more committed. Furthermore, companies that practice good management consistently have greater revenues and profits than companies that don't. Finally, good management matters because good management leads to satisfied employees who, in turn, provide better service to customers. Because employees tend to treat customers the same way that their managers treat them, good management can improve customer satisfaction. ESSAY 1. Define meta-analysis and its role in scientific research. Explain why meta-analysis is of value to both management scholars and management practitioners. Answer: Scientific research in management is designed to identify the most effective approaches to solving management problems; i.e., what works in the real world. Individual research studies often come to conflicting conclusions about what works. Meta-analysis is a research tool. It is a study of studies, which helps management scholars understand how well their research supports management theories by integrating the results of multiple, often conflicting studies. This can help scholars to more effectively plan future research, and to refine their theories in line with empirical results. It is also useful to practicing managers, because it shows what works and the conditions under which management techniques may work better or worse in the "real world." Essentially, meta-analysis "averages" the results of conflicting studies to determine a probability of success for a given management technique. Meta-analysis statistics can be converted into intuitive numbers that anyone can easily understand. Thus, this technique can be used to identify the best scientific evidence that management researchers have about what really works and what really doesn't work in management. An easy-to-understand index, known as the "probability of success," can be used to indicate how well a management idea or strategy is likely to work in the workplace. This can be particularly helpful to practitioners, who are held accountable for the results they produce (or do not produce). By implementing management ideas or strategies that are more likely to work in the unique situation they face, management practitioners can increase their probability of success. This not only facilitates organizational productivity, but enhances their career success. 2. Top managers are responsible for (1) creating a context for change, (2) developing attitudes of commitment and ownership, (3) creating a positive organizational culture through words and actions, and (4) monitoring their company's business environment. Of these four dimensions, which ones do you think can also be significantly impacted by the day-to-day actions of middle managers, first-line managers, and team leaders? Explain the rationale for your answer. Answer: Lower-level managers in their day-to-day activities probably could not impact two of the four dimensions significantly. These are (1) creating a context for change and (4) monitoring their company's business environment. Regarding both of these dimensions, lower-level managers have neither the time available to collect the necessary information for analysis, synthesis, and decision-making, nor the authority to develop and put in place overall strategies, visions, or mission statements. On the other hand, the day-to-day treatment of peers, subordinates and other employees will often have an impact on the attitudes of commitment of those employees and their personal acceptance of responsibility for their share of the company's performance (i.e., dimension 2, developing attitudes of commitment and ownership). Similarly, by their actions, lower-level managers can demonstrate the importance of, and their commitment to, company values and strategies (i.e., dimension 3, creating a positive organizational culture through words and actions). Thus, they can support and enhance a positive organizational culture through their action and language by living those values and commitments and demonstrating this to all employees through their personal behavior. Employees will be more likely to accept and support the organization's culture if they see managers at all levels "living the culture" in their day-to-day work. 3. Compare and contrast the managerial roles of liaison, spokesperson, and negotiator. Explain both the similarities that link these roles behaviorally, and the differences that are used by Mintzberg to differentiate them. Answer: The roles of liaison, spokesperson, and negotiator are all subroles within Mintzberg's larger framework of three major roles fulfilled by managers while performing their jobs. The liaison is an interpersonal subrole, the spokesperson is an informational subrole, and the negotiator is a decisional subrole. From the behavioral point of view, each of these subroles is characterized by direct communication between the manager and other people. Specifically, in the liaison role, managers deal with people outside their units. For example, a production manager might meet with an engineering manager to develop solutions to problems. In the spokesperson role, managers share information with people outside their departments and companies. For example, a CEO might explain company performance to the board of directors. In the negotiator role, managers negotiate schedules, projects, goals, outcomes, resources, and employee raises, as, for example, in negotiating a union contract. Thus, there is considerable similarity and overlap in these roles from the perspective of the behavior of the manager. Mintzberg differentiates them in terms of their primary focus. In the case of behavior associated with the liaison role, the primary focus is on dealing with people outside of the managers' unit (as opposed to their own subordinates or bosses), and thus the role is interpersonal in nature. In the case of the spokesperson, the primary focus is on the sharing of information with people outside their units or companies, and thus the role is informational in nature. Finally, in the case of the negotiator, the primary focus is on making or influencing decisions in a manner that will benefit the company, and thus the role is decisional in nature. 4. Compare and contrast the relative importance of the four characteristics that companies look for in managers as they rise through the management hierarchy. That is, describe the similarities and differences in these characteristics among lower, middle, and upper-level managers, and explain the reasons for the differences. Answer: Companies look for four sets of characteristics in individuals to be promoted into the managerial ranks at any level. These characteristics are technical skills, human skills, conceptual skills, and motivation to manage. Thus, in terms of similarities, all four of these skills are required in anyone who wants to be a manager. Companies do not want one-dimensional managers. They want managers with a balance of skills. They want managers who know their stuff (technical skills), are equally comfortable working with blue-collar and white-collar employees (human skills), are able to assess the complexities of today's competitive marketplace and position their companies for success (conceptual skills), and want to assume positions of leadership and power (motivation to manage). However, there are differences in the relative importance of each of these characteristics to managerial success at different levels of the management hierarchy. Technical skills are most important for lower-level managers, because these managers supervise the line workers who produce products or serve customers. Team leaders and first-line managers need technical knowledge and skills to train new employees and help them solve problems, as well as to solve the problems that their employees cannot handle. While technical skills become less important as managers rise through the managerial ranks, they retain importance at all levels. Human skill (the ability to work well with others) is equally important at all levels of management. However, since lower-level managers spend much of their time solving technical problems, upper-level managers may actually spend more time dealing directly with people. Both conceptual skills and motivation to manage increase in importance as managers rise through the managerial ranks. Conceptual skill is the ability to see the organization as a whole, how the different parts of the company affect each other, and how the company fits into or is affected by its external environment, such as the local community, social and economic forces, customers, and competition. Good managers have to be able to recognize, understand, and reconcile multiple complex problems and perspectives. Motivation to manage is an assessment of how motivated employees are to interact with superiors, participate in competitive situations, behave assertively toward others, tell others what to do, reward good behavior and punish poor behavior, perform actions that are highly visible to others, and handle and organize administrative tasks. Managers typically have a stronger motivation to manage than their subordinates, and managers at higher levels usually have stronger motivation to manage than managers at lower levels. Furthermore, managers with stronger motivation to manage are promoted faster, are rated by their employees as better managers, and earn more money than managers with a weak motivation to manage. Thus, both conceptual skills and motivation to manage are particularly important to upper-level managers. 5. Describe the transition to management during the first year. Explain how this illustrates the chapter's emphasis on human skills as being more important than technical skills for success or failure in management. Answer: Managers often begin their jobs by using more formal authority and emphasizing their role as boss in the management of tasks. New managers typically do not believe that their job is to manage people, other than handling the tasks of hiring and firing. However, most managers find that being a manager has little to do with "bossing" their subordinates. After six months on the job, many managers were surprised at the fast pace, the heavy workload, and that "helping" their subordinates was viewed as interference. In short, they came to realize that their initial expectations about managerial work had been wrong. After a year on the job, most of the managers no longer thought of themselves as doers, but as managers who get things done through others. In making the transition, they finally realized that people development was the most important part of their job. By the end of one year, most managers will have abandoned their authoritarian approach for one based on communication, listening, and positive reinforcement. In completing this classic transition from "doer" to "manager," they stop trying to do everything themselves, and emphasize getting work done through others. In this way, their previous satisfaction (as individual contributors) with the direct production of goods or services is replaced with the "thrill" of coaching and developing the people who work for them. As the basic activities occupying their time change, their need for technical skills becomes less, while their need for human skills remains crucial to their success. In fact, five of the most important mistakes that managers make revolve around people skills rather than technical skills. These are being abrasive and intimidating; being cold, aloof, or arrogant; betraying trust; being overly ambitious; and failing to build a team and then delegate to that team. Thus, human skills clearly are more important than technical skills for success or failure in management. Test Bank for Effective Management Chuck Williams 9781285866246
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