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Chapter 1—MANAGEMENT AND ENTREPRENEURSHIP TRUE/FALSE (Concepts) 1. A manager is responsible for achieving organizational objectives through efficient and effective utilization of personal ability. ANS: F PTS: 1 DIF: Moderate REF: p. 4 OBJ: 1-1 C NAT: AACSB Reflective Thinking | Management Leadership Principles 2. A manager is responsible for achieving organizational objectives through efficient and effective utilization of resources. ANS: T PTS: 1 DIF: Easy REF: p. 4 OBJ: 1-1 C NAT: AACSB Reflective Thinking | Management Leadership Principles 3. The manager’s resources are human, financial, and physical. ANS: F PTS: 1 DIF: Moderate REF: p. 4 OBJ: 1-1 C NAT: AACSB Reflective Thinking | Management Leadership Principles 4. The level of organizational performance is unrelated to how effectively and efficiently managers utilize resources to achieve objectives. ANS: F PTS: 1 DIF: Easy REF: p. 6 OBJ: 1-1 C NAT: AACSB Reflective Thinking | Management Leadership Principles 5. In a Wall Street Journal Gallup survey, top executives identified leadership ability as the most important trait for successful managers. ANS: F PTS: 1 DIF: Moderate REF: p. 7 OBJ: 1-1 C NAT: AACSB Reflective Thinking | Management Leadership Principles 6. A manager needs technical, interpersonal, and decision-making skills. ANS: T PTS: 1 DIF: Moderate REF: p. 8 OBJ: 1-2 C NAT: AACSB Reflective Thinking | Management Leadership 1

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28 Test Bank for Management Fundamentals: Concepts, Applications, Skill Development, 5eChapter 1: Management and Entrepreneurship 27

Chapter 1MANAGEMENT AND ENTREPRENEURSHIPTRUE/FALSE (Concepts)

1.A manager is responsible for achieving organizational objectives through efficient and effective utilization of personal ability.ANS:FPTS:1DIF:ModerateREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

2.A manager is responsible for achieving organizational objectives through efficient and effective utilization of resources.ANS:TPTS:1DIF:EasyREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

3.The managers resources are human, financial, and physical.ANS:FPTS:1DIF:ModerateREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

4.The level of organizational performance is unrelated to how effectively and efficiently managers utilize resources to achieve objectives.ANS:FPTS:1DIF:EasyREF:p. 6

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

5.In a Wall Street Journal Gallup survey, top executives identified leadership ability as the most important trait for successful managers.ANS:FPTS:1DIF:ModerateREF:p. 7

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

6.A manager needs technical, interpersonal, and decision-making skills.ANS:TPTS:1DIF:ModerateREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

7.The three skills that managers need are technical, interpersonal, and analytical skills.ANS:FPTS:1DIF:HardREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

8.Technical skills involve the ability to use methods and techniques to perform a task.ANS:TPTS:1DIF:ModerateREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

9.Interpersonal skills involve the ability to understand, communicate, and work well with individuals and groups through developing effective relationships.ANS:TPTS:1DIF:ModerateREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

10.Interpersonal skills are based on strong conceptual skills.ANS:FPTS:1DIF:EasyREF:p. 9

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

11.Decision-making skills are based on the ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities.ANS:TPTS:1DIF:EasyREF:p. 9

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

12.The four management functions are planning, organizing, leading, and controlling.ANS:TPTS:1DIF:EasyREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

13.There are three basic management functions.ANS:FPTS:1DIF:EasyREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

14.Planning is typically the second step in the management process.ANS:FPTS:1DIF:EasyREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

15.Organizing is the process of delegating and coordinating tasks and allocating resources to achieve objectives.ANS:TPTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

16.Leading is the process of ordering employees to perform particular tasks.ANS:FPTS:1DIF:HardREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

17.Controlling is the process of establishing and implementing mechanisms to ensure that objectives are achieved.ANS:TPTS:1DIF:EasyREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

18.The three management role categories are interpersonal, informational, and decisional roles.ANS:TPTS:1DIF:ModerateREF:p. 12

OBJ:1-4 CNAT:AACSB Reflective Thinking | Management Leadership Principles

19.The three levels of management are top managers, middle managers, and nonmanagement operative employees.ANS:FPTS:1DIF:EasyREF:p. 15

OBJ:1-5 CNAT:AACSB Reflective Thinking | Management Leadership Principles

20.There are basically four levels of management.ANS:FPTS:1DIF:EasyREF:p. 15

OBJ:1-5 CNAT:AACSB Reflective Thinking | Management Leadership Principles

21.General, functional, and project managers perform basically the same tasks.ANS:FPTS:1DIF:EasyREF:p. 16

OBJ:1-6 CNAT:AACSB Reflective Thinking | Management Leadership Principles

22.All three levels of management use all three management skills to some degree.ANS:TPTS:1DIF:ModerateREF:p. 17

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

23.Different functions, skills, and roles can be expected when managing in a for-profit organization versus managing in a not-for-profit organization.ANS:FPTS:1DIF:HardREF:p. 18

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

24.One difference between a managers job in for-profit organizations versus not-for-profit organizations is that the primary measure of performance in for-profit organizations is bottom-line profit.ANS:TPTS:1DIF:ModerateREF:p. 19

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

25.Learning organizations have everyone engaged in identifying and solving problems, enabling change, and continuous improvement.ANS:TPTS:1DIF:ModerateREF:p. 19

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

26.Knowledge management involves everyone in an organization in sharing knowledge and applying it to continuously improve products and processes.ANS:TPTS:1DIF:EasyREF:p. 19

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

27.Intrapreneurs commonly start a new small business venture, while entrepreneurs commonly start a new line of business within a large organization.ANS:FPTS:1DIF:HardREF:p. 21

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

28.A small business is defined as a company that is publicly owned and operated, with a small number of employees and relatively low volume of sales.ANS:FPTS:1DIF:ModerateREF:p. 21

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

29.Intrapreneurs commonly have more risk than entrepreneurs.ANS:FPTS:1DIF:HardREF:p. 21

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

30.Much of the creativity and innovation in society comes from entrepreneurs.ANS:TPTS:1DIF:EasyREF:p. 22

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

31.Large businesses commonly acquire small businesses to gain innovations.ANS:TPTS:1DIF:ModerateREF:p. 22

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

32.Small businesses are the primary suppliers and distributors of products for large businesses.ANS:TPTS:1DIF:EasyREF:p. 22

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

33.The first step to entrepreneurship is to select the new venture or the industry in which the business will compete.ANS:TPTS:1DIF:EasyREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

34.Nearly half of new venture ideas stem from previous work experience.ANS:TPTS:1DIF:HardREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

35.A competitive advantage specifies how an organization offers unique customer value.ANS:TPTS:1DIF:EasyREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

36.A first-mover advantage specifies how an organization offers unique customer value.ANS:FPTS:1DIF:EasyREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

37.A first-mover advantage refers to offering a unique customer value before competitors do so.ANS:TPTS:1DIF:EasyREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

38.When a company offers a unique customer value before competitors do so, its referred to as a first-mover advantage.ANS:TPTS:1DIF:HardREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

39.A business plan is a written description of a new ventureits objectives and the steps for achieving them.ANS:TPTS:1DIF:EasyREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

40.There are very few Web sites dedicated to providing information related to developing a business plan.ANS:FPTS:1DIF:EasyREF:p. 25

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of ValueMULTIPLE CHOICE (Concepts)

1.A manager is responsible for achieving:

a.his or her objectives for the organization.

b.the objectives established by governmental leaders.

c.the organizations objectives.

d.the objectives which are common to the managers industry.

ANS:CPTS:1DIF:EasyREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

2.A manager is responsible for achieving organizational objectives through:

a.controlling the process.

b.efficient and effective utilization of resources.

c.planning and controlling.

d.personal effort.

ANS:BPTS:1DIF:ModerateREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

3.A manager is responsible for:

a.setting organizational objectives.

b.determining organizational needs.

c.achieving organizational objectives.

d.administering discipline in the workplace.

ANS:CPTS:1DIF:EasyREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

4.Which of the following is the best example of being efficient?

a.doing more than others

b.doing more than in the past

c.doing things right

d.doing the right thing

ANS:CPTS:1DIF:ModerateREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

5.Which of the following is the best example of being effective?

a.doing more than others

b.doing more than in the past

c.doing things right

d.doing the right thing

ANS:DPTS:1DIF:ModerateREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

6.All of the following are managers resources EXCEPT:

a.human resources.

b.financial resources.

c.physical resources.

d.technical resources.

ANS:DPTS:1DIF:EasyREF:p. 4

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

7.The level of organizational performance is based on:

a.how effectively and efficiently managers utilize resources to achieve objectives.

b.how well efforts are coordinated.

c.the innate ability of employees.

d.how well a manager stays within the budget.

ANS:APTS:1DIF:ModerateREF:p. 6

OBJ:1-1 CNAT:AACSB Reflective Thinking | Management Leadership Principles

8.Which of the following are requisite management skills?

a.technical skills

b.interpersonal skills

c.decision-making skills

d.all of these

ANS:DPTS:1DIF:EasyREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

9.All the following are management skills EXCEPT:

a.technical skills.

b.interpersonal skills.

c.psychological skills.

d.decision-making skills.

ANS:CPTS:1DIF:ModerateREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

10.__________ skills involve the ability to use methods and techniques to perform a task.

a.Decision-making

b.Interpersonal

c.Technical

d.Communication

ANS:CPTS:1DIF:ModerateREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

11.Which of the following statements is TRUE regarding technical skills?

a.Managers need only skills regarding people; subordinates do all the technical work.

b.Most employees are promoted to their first management position primarily because of their technical skills.

c.Technical skills are used mostly by top management.

d.Technical skills are used mostly by middle management.

ANS:BPTS:1DIF:HardREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

12.__________ skills involve the ability to understand, communicate, and work well with individuals and groups through developing effective relationships.

a.Interpersonal

b.Decision-making

c.Technical

d.Team-building

ANS:APTS:1DIF:EasyREF:p. 8

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

13.The ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities is:

a.technical skills.

b.interpersonal skills.

c.decision-making skills.

d.the classical decision-making model.

ANS:CPTS:1DIF:ModerateREF:p. 9

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

14.According to Ghiselli, the number-one trait that contributes to successful management is:

a.intelligence.

b.self-assurance.

c.decisiveness.

d.supervisory ability.

ANS:DPTS:1DIF:ModerateREF:p. 10

OBJ:1-2 CNAT:AACSB Reflective Thinking | Management Leadership Principles

15.The four management functions are:

a.planning, organizing, supervising, and controlling.

b.planning, organizing, leading, and feedback.

c.planning, directing, leading, and controlling.

d.planning, organizing, leading, and controlling.

ANS:DPTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

16.__________ is the process of setting objectives and determining in advance exactly how the objectives will be met.

a.Organizing

b.Leading

c.Controlling

d.Planning

ANS:DPTS:1DIF:HardREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

17.__________ is the process of delegating and coordinating tasks and allocating resources to achieve objectives.

a.Organizing

b.Planning

c.Controlling

d.Leading

ANS:APTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

18.The management function of __________ involves delegating and coordinating tasks and allocating resources to achieve objectives.

a.controlling

b.organizing

c.leading

d.planning

ANS:BPTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

19.An important part of __________ is staffing.

a.planning

b.controlling

c.leading

d.organizing

ANS:DPTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

20.__________ is the process of influencing employees to work toward achieving objectives.

a.Organizing

b.Controlling

c.Planning

d.Leading

ANS:DPTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

21.The management function of __________ involves influencing employees to work toward achieving objectives.

a.planning

b.organizing

c.leading

d.controlling

ANS:CPTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

22.__________ is the process of establishing and implementing mechanisms to ensure that objectives are achieved.

a.Leading

b.Planning

c.Controlling

d.Organizing

ANS:CPTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

23.The management function of __________ involves establishing and implementing mechanisms to ensure that objectives are achieved.

a.controlling

b.leading

c.organizing

d.planning

ANS:APTS:1DIF:ModerateREF:p. 11

OBJ:1-3 CNAT:AACSB Reflective Thinking | Management Leadership Principles

24.A management role is:

a.based on the managers supervisor ability.

b.a set of expectations of how one will behave in a given situation.

c.performed by top management only.

d.performed by middle management only.

ANS:BPTS:1DIF:HardREF:p. 12

OBJ:1-4 CNAT:AACSB Reflective Thinking | Management Leadership Principles

25.All of the following are management role categories EXCEPT:

a.interpersonal roles.

b.informational roles.

c.decisional roles.

d.technical roles.

ANS:DPTS:1DIF:ModerateREF:p. 12

OBJ:1-4 CNAT:AACSB Reflective Thinking | Management Leadership Principles

26.The three management role categories are:

a.interpersonal roles, informational roles, and decisional roles.

b.interpersonal roles, operational roles, and decisional roles.

c.interpersonal roles, informational roles, and operational roles.

d.external roles, informational roles, and decisional roles.

ANS:APTS:1DIF:ModerateREF:p. 12

OBJ:1-4 CNAT:AACSB Reflective Thinking | Management Leadership Principles

27.Which of the following is an example of a managerial interpersonal role?

a.figurehead

b.disseminator

c.disturbance handler

d.negotiator

ANS:APTS:1DIF:HardREF:p. 12

OBJ:1-4 CNAT:AACSB Reflective Thinking | Management Leadership Principles

28.In training others, one is performing a __________ role.

a.leader

b.liaison

c.figurehead

d.spokesperson

ANS:APTS:1DIF:HardREF:p. 12

OBJ:1-4 CNAT:AACSB Reflective Thinking | Management Leadership Principles

29.Which of the following is an example of a managerial informational role?

a.leader

b.liaison

c.monitor

d.negotiator

ANS:CPTS:1DIF:HardREF:p. 13

OBJ:1-4 CNAT:AACSB Reflective Thinking | Management Leadership Principles

30.Which of the following is an example of a managerial decisional role?

a.leader

b.spokesperson

c.monitor

d.negotiator

ANS:DPTS:1DIF:HardREF:p. 13

OBJ:1-4 CNAT:AACSB Reflective Thinking | Management Leadership Principles

31.There are __________ levels of management.

a.two

b.three

c.four

d.five

ANS:BPTS:1DIF:EasyREF:p. 15

OBJ:1-5 CNAT:AACSB Reflective Thinking | Management Leadership Principles

32.The three levels of management are:

a.top managers, middle managers, and nonmanagement operative employees.

b.top managers, middle managers, and first-line managers.

c.executives, middle managers, and nonmanagement operative employees.

d.executives, middle managers, and first-line managers.

ANS:BPTS:1DIF:ModerateREF:p. 15

OBJ:1-5 CNAT:AACSB Reflective Thinking | Management Leadership Principles

33.The three types of managers are:

a.general managers, functional managers, and project managers.

b.general managers, functional managers, and specific managers.

c.functional managers, project managers, and specific managers.

d.functional managers, project managers, and staff managers.

ANS:APTS:1DIF:ModerateREF:p. 16

OBJ:1-6 CNAT:AACSB Reflective Thinking | Management Leadership Principles

34.Which of the following is NOT a type of manager?

a.general manager

b.functional manager

c.project manager

d.conceptual manager

ANS:DPTS:1DIF:ModerateREF:p. 16

OBJ:1-6 CNAT:AACSB Reflective Thinking | Management Leadership Principles

35.A general manager:

a.coordinates employees and other resources across several functional departments to accomplish a specific task.

b.supervises the activities of several departments that perform different activities.

c.supervises activities in areas such as marketing, operations/production, finance/accounting, and human resources/personnel management.

d.is another name for top management.

ANS:BPTS:1DIF:ModerateREF:p. 16

OBJ:1-6 CNAT:AACSB Reflective Thinking | Management Leadership Principles

36.Middle managers are:

a.general managers.

b.functional managers.

c.project managers.

d.both general and functional managers.

ANS:DPTS:1DIF:ModerateREF:p. 16

OBJ:1-6 CNAT:AACSB Reflective Thinking | Management Leadership Principles

37.A functional manager:

a.coordinates employees and other resources across several functional departments to accomplish a specific task.

b.supervises the activities of several departments that perform different activities.

c.supervises activities in areas such as marketing, operations/production, finance/accounting, and human resources/personnel management.

d.supervises nonmanagement operative employees only.

ANS:CPTS:1DIF:ModerateREF:p. 16

OBJ:1-6 CNAT:AACSB Reflective Thinking | Management Leadership Principles

38.Which of the following statements is TRUE regarding the primary management skills needed by top-level managers?

a.They have a greater need for technical and decision-making skills.

b.They have a greater need for technical and interpersonal skills.

c.They have a greater need for decision-making and interpersonal skills.

d.They tend to have a balanced need for technical, interpersonal, and decision-making skills.

ANS:CPTS:1DIF:ModerateREF:p. 17

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

39.The hierarchy of skills managers need, starting with first-line managers, is:

a.technical skills, decision-making skills, and interpersonal skills.

b.interpersonal skills, technical skills, and decision-making skills.

c.technical skills, interpersonal skills, and decision-making skills.

d.interpersonal skills, decision-making skills, and technical skills.

ANS:CPTS:1DIF:HardREF:p. 17

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

40.In comparison to top and middle managers, first-line managers spend more time __________ and __________.

a.planning; organizing

b.leading; controlling

c.organizing; controlling

d.planning; leading

ANS:BPTS:1DIF:ModerateREF:p. 17

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

41.__________ involves everyone in an organization in sharing knowledge and applying it to continuously improve products and processes.

a.Learning

b.Quality

c.Knowledge management

d.Diversity

ANS:CPTS:1DIF:EasyREF:p. 19

OBJ:1-7 CNAT:AACSB Reflective Thinking | Management Leadership Principles

42.__________ commonly start a new small business venture.

a.Venture capitalists

b.Entrepreneurs

c.Intrapreneurs

d.Extrapreneurs

ANS:BPTS:1DIF:ModerateREF:p. 21

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

43.__________ commonly start a new line of business within a large organization.

a.Venture capitalists

b.Entrepreneurs

c.Intrapreneurs

d.Extrapreneurs

ANS:CPTS:1DIF:ModerateREF:p. 21

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

44.A business that is independently owned and operated, with a small number of employees and relatively low volume of sales is a:

a.small business.

b.medium business.

c.large business.

d.joint venture.

ANS:APTS:1DIF:EasyREF:p. 21

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

45.The major contributions that entrepreneurs make to society include all of the following EXCEPT:

a.innovation.

b.job creation.

c.support of large businesses.

d.economic stability.

ANS:DPTS:1DIF:ModerateREF:p. 22

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

46.A first-mover advantage refers to:

a.offering unique customer value.

b.offering a unique customer value before competitors do so.

c.writing down the objectives and steps for achieving a new venture.

d.leaving an industry or product line before sales drop.

ANS:BPTS:1DIF:ModerateREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

47.A(n) __________ is a written description of a new ventureits objectives and the steps for achieving them.

a.executive summary

b.direct investment

c.business plan

d.none of these

ANS:CPTS:1DIF:ModerateREF:p. 23

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of Value

48.Which of the following sections of a business plan is commonly presented first, though it is usually written after the rest of the business plan has been completed?

a.Executive Summary

b.Operations

c.Marketing

d.Introduction

ANS:APTS:1DIF:EasyREF:p. 24

OBJ:1-8 CNAT:AACSB Reflective Thinking | Management Creation of ValueLEARNING OUTCOMES (Concepts)

1.Describe a managers responsibility.ANS:

A manager is responsible for achieving organizational objectives through efficient and effective use of resources. Efficient means doing things right, and effective means doing the right thing. The managers resources include human, financial, physical, and informational resources.PTS:1OBJ:LO 1-1 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

2.List and explain the three management skills.ANS:

The three management skills are technical, interpersonal, and decision-making skills. Technical skills involve the ability to use methods and techniques to perform a task. Interpersonal skills involve the ability to understand, communicate, and work well with individuals and groups through developing effective relationships. Decision-making skills are based on the ability to conceptualize situations and select alternatives to solve problems and take advantage of opportunities.PTS:1OBJ:LO 1-2 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

3.List and explain the four management functions.ANS:

The four management functions are planning, organizing, leading, and controlling. Planning is the process of setting objectives and determining in advance exactly how the objectives will be met. Organizing is the process of delegating and coordinating tasks and allocating resources to achieve objectives. Leading is the process of influencing employees to work toward achieving objectives. Controlling is the process of establishing and implementing mechanisms to ensure that the organization achieves its objectives.PTS:1OBJ:LO 1-3 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

4.Identify the three management role categories.ANS:

Managers play the interpersonal role when they act as figurehead, leader, or liaison. Managers play the informational role when they act as monitor, disseminator, or spokesperson. Managers play the decisional role when they act as entrepreneur, disturbance handler, resource allocator, or negotiator.PTS:1OBJ:LO 1-4 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

5.List the hierarchy of management levels.ANS:

The three hierarchy levels are top managers (e.g., operations executive), middle managers (e.g., marketing manager), and first-line managers (e.g., accounting supervisor).PTS:1OBJ:LO 1-5 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

6.Describe the three different types of managers.ANS:

A general manager supervises the activities of several departments or units that perform different activities. Functional managers supervise related activities such as marketing, operations, finance, and human resources management. A project manager coordinates employees and other resources across several functional departments to accomplish a specific task.PTS:1OBJ:LO 1-6 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

7.Describe the differences among management levels in terms of skills needed and functions performed.ANS:

Top managers have a greater need for conceptual and decision-making skills than first-line managers do. Middle managers have a need for all three skills. First-line managers have a greater need for technical skills than top managers.PTS:1OBJ:LO 1-7 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

8.Explain the difference between an entrepreneur and an intrapreneur.ANS:

Entrepreneurs commonly start a new small business venture. Intrapreneurs commonly start a new line of business within a large organization, or they tend to run a small business within a large organization.PTS:1OBJ:LO 1-8 C

NAT:AACSB Reflective Thinking | Management Creation of Value

REVIEW QUESTIONS (Concepts)

1.What are a managers resources?ANS:

The managers resources are human, financial, physical, and informational.PTS:1OBJ:RQ 1-1 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

2.What are the three management skills?ANS:

Management skills include technical, interpersonal, and decision-making skills.PTS:1OBJ:RQ 1-2 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

3.What are the four functions of management?ANS:

The four functions of management include planning, organizing, leading, and controlling.PTS:1OBJ:RQ 1-3 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

4.What are the three management role categories?ANS:

The three management role categories include interpersonal, informational, and decisional roles.PTS:1OBJ:RQ 1-4 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

5.What are the three levels of management?ANS:

The three levels of management are top managers, middle managers, and first-line managers.PTS:1OBJ:RQ 1-5 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

6.What are the three types of managers?ANS:

The three types of managers are general managers, functional managers, and project managers.PTS:1OBJ:RQ 1-6 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

7.What is a new venture, and who starts it?ANS:

A new venture is a new business or a new line of business. Entrepreneurs commonly start a new small business venture. Intrapreneurs commonly start a new line of business within a large organization.PTS:1OBJ:RQ 1-8 C

NAT:AACSB Reflective Thinking | Management Creation of Value

8.How do you define small business?ANS:

A small business is a business that is independently owned and operated, with a small number of employees and relatively low volume of sales.PTS:1OBJ:RQ 1-8 C

NAT:AACSB Reflective Thinking | Management Creation of Value

9.What are competitive and first-mover advantages?ANS:

A competitive advantage specifies how an organization offers unique customer value. A first-mover advantage offers a unique customer value before competitors do so.PTS:1OBJ:RQ 1-8 C

NAT:AACSB Reflective Thinking | Management Creation of Value

10.What are the objectives of this book?ANS:

The objectives of this book are to teach you the important concepts of management, to develop your ability to apply the management concepts through critical thinking, and to develop your management skills in your personal and professional lives.PTS:1OBJ:RQ 1-8 C

NAT:AACSB Reflective Thinking | Management Leadership Principles

APPLYING THE CONCEPTS (Applications)

1.Tammy learned to use her computer to make reports on how well her employees were performing. This is an example of using which of the following types of management skills?

a.technical

b.interpersonal

c.decision making

ANS:APTS:1OBJ:AC 1-2 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

2.The president of NERCO Co. visualizes his company moving into a totally new market of golf equipment. This is an example of using which of the following types of management skills?

a.technical

b.interpersonal

c.decision making

ANS:CPTS:1OBJ:AC 1-2 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

3.Debbie tries to talk to each one of her employees at least once every day to make them feel their work is appreciated. Debbie is utilizing which of the following types of management skills?

a.technical

b.interpersonal

c.decision making

ANS:BPTS:1OBJ:AC 1-2 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

4.Jerry analyzes market data to determine which areas of the company need improvement. This is an example of a manager using which of the following management functions?

a.planning

b.organizing

c.leading

d.controlling

ANS:DPTS:1OBJ:AC 1-3 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

5.Julie decides that her employees do not work well together. She decides she will form new groups for her employees to work within. This is an example of a manager using which of the following management functions?

a.planning

b.organizing

c.leading

d.controlling

ANS:BPTS:1OBJ:AC 1-3 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

6.Jane has stated the goals of her human resources department is to hire as many different types of people as possible. Which of the following management functions is Jane utilizing?

a.planning

b.organizing

c.leading

d.controlling

ANS:APTS:1OBJ:AC 1-3 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

7.Terri has tried to get the employees of her human resources department to be excited about the opportunities that diversity programs offered. Terry is using which of the following management functions?

a.planning

b.organizing

c.leading

d.controlling

ANS:CPTS:1OBJ:AC 1-3 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

8.Gillian has gone to great measures to make sure different types of people are represented in each group. Gillian is using which of the following management functions?

a.planning

b.organizing

c.leading

d.controlling

ANS:BPTS:1OBJ:AC 1-3 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

9.Bright Co. is now in the process of analyzing how well each employee understood the concepts in their diversity program. Bright Co. is currently performing which of the following management functions?

a.planning

b.organizing

c.leading

d.controlling

ANS:DPTS:1OBJ:AC 1-3 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

10.Debbie provides her employees with data every morning at 8:00 to help them perform their jobs more effectively. Debbie is utilizing which of the following management roles?

a.interpersonal role

b.informational role

c.decisional role

ANS:BPTS:1OBJ:AC 1-4 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

11.Latoya, a retail store manager, is discussing the terms of a new shipment of clothes from the manufacturer. Latoya is utilizing which of the following management roles?

a.interpersonal role

b.informational role

c.decisional role

ANS:CPTS:1OBJ:AC 1-4 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

12.Claude is teaching a new employee how to use the cash register. Claude is utilizing which of the following management roles?

a.interpersonal role

b.informational role

c.decisional role

ANS:APTS:1OBJ:AC 1-4 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

13.Michael has the job responsibility to make sure that the store clerks provide friendly customer service. Michael is at what level of management?

a.top

b.middle

c.first-line

ANS:CPTS:1OBJ:AC 1-5 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

14.Sam Glass is the president of M Mart, and he has decided M Mart should expand globally to countries all over the world. Sam is at what level of management?

a.top

b.middle

c.first-line

ANS:APTS:1OBJ:AC 1-5 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

WORK APPLICATIONS (Applications)

1.Describe the specific resources used by your present or past boss. Give the managers job title and department.ANS:

Answers will vary.PTS:1OBJ:WA 1-1 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

2.Identify a specific manager, preferably one who is or was your boss, and explain what makes him or her successful or unsuccessful. Give examples.ANS:

Answers will vary.PTS:1OBJ:WA 1-1 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

3.Select a manager, preferably one who is or was your boss, and state the specific management skills he or she uses on the job.ANS:

Answers will vary.PTS:1OBJ:WA 1-2 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

4.Identify a specific manager, preferably one who is or was your boss, and give examples of how that person performs each of the four management functions.ANS:

Answers will vary.PTS:1OBJ:WA 1-3 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

5.Identify a specific manager, preferably one who is or was your boss, and give examples of how that person performs in each of the three management role categories. Be sure to identify at least one of the three or four roles in each category.ANS:

Answers will vary.PTS:1OBJ:WA 1-4 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

6.Identify the three levels of management in a specific organization by level and title. Be sure to give the organizations name.ANS:

Answers will vary.PTS:1OBJ:WA 1-5 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

7.Identify which type of boss you have now or have had previously. If that person is or was a functional manager, be sure to specify the functional tasks of the department.ANS:

Answers will vary.PTS:1OBJ:WA 1-6 A

NAT:AACSB Reflective Thinking | Management Leadership Principles

8.Does a company you work for (or one you have worked for) have a competitive advantage? If yes, what is it? If not, how is this company the same as its competitors?ANS:

Answers will vary.PTS:1OBJ:WA 1-8 A

NAT:AACSB Reflective Thinking | Management Creation of Value

COMMUNICATION SKILLS (Skills)

1.Are you interested in being a manager?ANS:

Answers will vary.PTS:1OBJ:CS 1-1 S

NAT:AACSB Reflective Thinking | Management Leadership Principles

2.Why is it important to take this course in management?ANS:

Answers will vary. Some of the reasons may include that it is important to learn about management because knowledge of what management is can help you to be a better employee, because this course can help you to qualify to become a manager, and because it can help you if you become a manager.PTS:1OBJ:CS 1-1 S

NAT:AACSB Reflective Thinking | Management Leadership Principles

3.Is it more important for managers to be efficient or effective? Can you improve both at the same time?ANS:

It is more important for managers to be effective than efficient because even if managers do the wrong things very well, they will not be successful.

No. You really cant improve both at the same time in the sense that you have to be effective before you can be efficient.PTS:1OBJ:CS 1-1 S

NAT:AACSB Reflective Thinking | Management Leadership Principles

4.Is management ability universal? In other words, can a good manager in one environment (e.g., computers) also be effective in another (e.g., banking)?ANS:

Generally, the answer is yes. Many managers change industries throughout their careers and are effective in more than one industry.PTS:1OBJ:CS 1-1 S

NAT:AACSB Reflective Thinking | Management Leadership Principles

5.Some people say the hard skills (technical, finance, quantitative analysis) are more important for managers than soft skills (interpersonal), and some say the opposite is true. What is your view?ANS:

Although it can make a good debate, it is really hard to say whether one is really more important than the other. A truly good manager has both hard and soft skills; most people dont progress in management without both.PTS:1OBJ:CS 1-2 S

NAT:AACSB Reflective Thinking | Management Leadership Principles

6.Is your college professor a manager? Why or why not?ANS:

No. College professors are not really managers, even though they do perform the four functions of management. Students are not employees of the college; in essence, students are customers, so your professor is not a manager.PTS:1OBJ:CS 1-5 S

NAT:AACSB Reflective Thinking | Management Leadership Principles

7.When a good employee is promoted to management, which management level is the promotion usually to, and how do the management skills and functions change with the job promotion?ANS:

When an employee is promoted, it is usually to the first-line management position. The employees technical skills are still important, but interpersonal skills and decision-making skills become more important as a manager. The nonmanager operative employee performs mostly nonmanagement functions. However, as a manager, the new supervisor will have to spend more time planning, organizing, leading, and controlling.PTS:1OBJ:CS 1-5 S

NAT:AACSB Reflective Thinking | Management Leadership Principles

8.When an employee is promoted to a manager, do most organizations provide some type of training? Should they? Why or why not?ANS:

No. Most organizations dont provide any training when an employee is promoted to a manager.

Yes. The organization should provide some type of training for the employee. Most successful leaders have had extensive training.PTS:1OBJ:CS 1-5 S

NAT:AACSB Reflective Thinking | Management Leadership Principles

9.Would you rather work for a small or large business?ANS:

Answers will vary.PTS:1OBJ:CS 1-8 S

NAT:AACSB Reflective Thinking | Management Creation of Value

10.Are you interested in being an entrepreneur?ANS:

Answers will vary.PTS:1OBJ:CS 1-8 S

NAT:AACSB Reflective Thinking | Management Creation of Value

SKILL BUILDERS (Skills)

1.Youve been promoted from being an employee in one department to be the supervisor in another department. The supervisor you are replacing did not require the group to do much work. Production is low and has declined in recent months. That is why you got the job. As a situational manager, identify the following:

Capability Level

Management Style

Behavior to Use

Action TakenANS:

1

Autocratic

High directive/Low supportive

Closely oversee the employees work. Be sure that production increases to standard levels.

Second-Best Answer

2

Consultative

High directive/High supportive

Closely oversee the employees work as you encourage them to improve performance, and get to know them. Be sure standards are met.PTS:1OBJ:S

NAT:AACSB Reflective Thinking | Management Leadership Principles

2.As a supervisor you want to improve performance in your department. You have asked your employees to think of ways to improve the department. However, you dont expect many good ideas because in the past the group has not been very interested or enthusiastic in participating in decision making. You have some good ideas. As a situational manager, identify the following:

Capability Level

Management Style

Behavior to Use

Action TakenANS:

2

Consultative

High directive/High supportive

Encouragingly ask the members for their ideas. After they are finished, present your ideas and sell them on the benefits of implementing them.

Second-Best Answer

3

Participative

Low directive/High supportive

Encouragingly ask the members for their ideas. Do not directly give your own ideas. Instead, give some of your information and let them come to conclusions so that they feel as though the ideas are theirs rather than yours.PTS:1OBJ:S

NAT:AACSB Reflective Thinking | Management Leadership Principles

3.As a supervisor you spend little time telling employees what to do and most of the time encouraging them to do a good job. However, at the present time, your employees have fallen behind schedule on an important project due soon. As a situational manager, identify the following:

Capability Level

Management Style

Behavior to Use

Action TakenANS:

2

Consultative

High directive/High supportive

Oversee the employees to be sure that the deadline is met as you continue to encourage them.

Second-Best Answer

3

Participative

Low directive/High supportive

Continue to encourage the employees and use more directives than usual to meet the deadline.PTS:1OBJ:S

NAT:AACSB Reflective Thinking | Management Leadership Principles

4.You are discussing the delegation of a new task to one of your best employees, Pete. However, Pete is hesitant to take on the new assignment. You are confident he can do it on his own. As a situational manager, identify the following:

Capability Level

Management Style

Behavior to Use

Action TakenANS:

3

Participative

Low directive/High supportive

Encouragingly ask Pete what the best way is to do the task. Build up his confidence as you discuss the delegation.

Second-Best Answer

2

Consultative

High directive/High supportive

Tell Pete how to do the delegation as you encourage him to do it.PTS:1OBJ:S

NAT:AACSB Reflective Thinking | Management Leadership Principles

5.You have an employee, Jean, who does an excellent job on her own. You believe the job is boring to Jean because it is too easy for her. Therefore, you have decided to delegate one of three assignments to her, but youre not sure which one she will like best. As a situational manager, identify the following:

Capability Level

Management Style

Behavior to Use

Action TakenANS:

4

Empowering

Low directive/Low supportive

Explain the three tasks and let Jean select the one she wants to do.

Second-Best Answer

3

Participative

Low directive/High supportive

Tell Jean what the three tasks are and together supportively decide which task she should do.PTS:1OBJ:S

NAT:AACSB Reflective Thinking | Management Leadership Principles

1