Test bank for essentials of contemporary management 4th edition by jones

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Chapter 01
The Management Process Today
True / False Questions

1. A desired future outcome that a firm hopes to achieve is called a goal.
True False

2. The planning, organizing, leading, and controlling of resources in order to achieve
organizational goals both effectively and efficiently is known as management.
True False

3. An organization's people are not considered one of its resources as they are not permanent.
True False

4. Management is the process of planning, organizing, leading and controlling resources in
order to make a profit. Therefore, an administrator of a not-for-profit organization is not truly
a manager.
True False

5. Increase in a firm's effectiveness will increase its performance, but increase in efficiency
will have no predictable effect on performance.
True False

6. McDonald's developed a fat fryer that decreases the amount of oil used in cooking, and
reduced the amount of time to cook fries. This is an example of increased efficiency.
True False

7. Effectiveness is a measure of how productively a firm uses its resources to achieve a goal.
True False

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8. In general, jobs become more interesting the more complex or responsible they are.
True False

9. Effective managers are those who choose the right organizational goals to pursue and have
the skills to utilize resources efficiently.
True False

10. A measure of the appropriateness of goals selected by managers for the organization and
the degree to which the organization achieves these goals is known as the effectiveness of the
organization.
True False

11. The process that managers use to select the goals for the organization is known as
organizing.
True False

12. An organization's strategy is an outcome of its planning process.
True False

13. Grouping people into various departments of a firm is known as organizing.
True False

14. An organization's structure determines how the organization's resources can be used to
create goods and services.
True False

15. The outcome of the controlling function should be the ability to measure the organization's
performance accurately.
True False

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16. Considering the management hierarchy, first-line managers typically report to top
managers.
True False

17. To perform managerial tasks efficiently and effectively, organizations group their
managers by level in hierarchy and by type of skill.
True False

18. Managers who supervise first-line managers are typically called middle managers.
True False

19. The relative importance of planning, organizing, leading, and controlling differ depending
on the level of management that a manager occupies.
True False

20. The lower the manager's position in the organization's hierarchy, the less time the manager
will spend leading and controlling subordinates.
True False

21. The amount of time that managers spend planning and organizing resources decreases as
they move towards higher levels in the organization.
True False

22. The lower the managers' positions are in the hierarchy, the more time the managers spend
leading and controlling first-line managers or nonmanagerial employees.
True False

23. On a relative scale, managers spend a considerable amount of time on controlling.
True False

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24. The ability to distinguish between the cause and effect of a problem within an
organization is an important part of the conceptual skills of a manager.
True False

25. An organization's top managers need to have more conceptual skills than other managers.
True False

26. Human skills can be learned through education and training, but they cannot be developed
through work experience.
True False

27. Thorough and direct feedback allows managers to develop their human skills.
True False

28. The array of technical skills managers need depends on their position in their
organizations.
True False

29. Departmental skills that create a core competency give an organization a competitive
advantage.
True False

30. The dramatic change in the tasks and responsibilities of managers can be predominantly
attributed to global competition and advances in new information technology (IT).
True False

31. Modern information technology has contributed to increases in restructuring and
outsourcing in organizations.
True False

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32. Self-managed teams and empowerment are ways to increase efficiency and effectiveness
in an organization.
True False

33. In a self-managed team, first-line managers act as coaches or mentors to provide advice
and guidance and help teams find new ways to perform their tasks more efficiently.
True False

34. Information technology facilitates the use of self-managed teams.
True False

35. Responsiveness to customers is one of the building blocks of competitive advantage.
True False

36. Companies that have speed and flexibility are agile competitors.
True False

37. Pressure to increase performance can be healthy for an organization because it leads
managers to question the way the organization is working.
True False

38. Crisis management involves making important choices about how to establish the
organizational chain of command and reporting relationships necessary to mobilize a fast
response.
True False

39. The causes of global crises or disasters fall into three main categories: natural causes,
human causes, and international terrorism and geopolitical conflicts.
True False

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Multiple Choice Questions

40. The measure of how well (or how productively) an organization uses its resources to
achieve a goal is known as:
A. effectiveness.
B. appropriateness.
C. efficiency.
D. timeliness.
E. appraisal.

41. Burger King developed a fat-fryer machine that reduced the amount of oil used to fry
burgers by 30 percent over its current competitors. This is an example of an attempt to
improve the organization's:
A. effectiveness.
B. efficiency.
C. planning.
D. organizing.
E. appropriateness.

42. A manager who chooses inappropriate goals for the organization, but makes good use of
the organization's resources in pursuing these goals is said to have:
A. low effectiveness/medium efficiency.
B. low effectiveness/high efficiency.
C. medium effectiveness/low efficiency.
D. high effectiveness/high efficiency.
E. medium effectiveness/medium efficiency.

43. A manager who chooses the wrong goals for the organization and makes poor use of the
organization's resources in pursuing these goals is said to have:
A. low effectiveness/low efficiency.
B. low effectiveness/medium efficiency.
C. medium effectiveness/low efficiency.
D. high effectiveness/high efficiency.
E. medium effectiveness/medium efficiency.

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44. When a manager produces a new product that many customers want to purchase and sells

it at a price that is attractive to these customers, this manager is said to have:
A. medium efficiency/low effectiveness.
B. low efficiency/high effectiveness.
C. high efficiency/high effectiveness.
D. low efficiency/medium effectiveness.
E. medium effectiveness/medium efficiency.

45. When a manager produces a product that customers want, but that is too expensive for
them to buy, the manager is said to have:
A. low efficiency/low effectiveness.
B. low efficiency/high effectiveness.
C. high efficiency/high effectiveness.
D. low efficiency/medium effectiveness.
E. medium effectiveness/medium efficiency.

46. The measure of the "appropriateness" of the goals selected by management for the
organization and the degree to which the organization accomplishes these goals is known as:
A. efficiency.
B. strategy.
C. effectiveness.
D. conceptual skill.
E. restructuring.

47. The people within an organization who are responsible for supervising the organization's
use of its resources are known as:
A. managers.
B. normalisers.
C. precisionist.
D. strategists.
E. restructurers.

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48. All of the following are essential managerial functions EXCEPT:
A. leading.
B. controlling.
C. demonstrating.
D. planning.
E. organizing.

49. In what order do managers typically perform managerial functions?
A. Organizing, Planning, Controlling, Leading
B. Organizing, Leading, Planning, Controlling
C. Planning, Organizing, Leading, Controlling
D. Planning, Organizing, Controlling, Leading
E. Leading, Organizing, Planning, Controlling

50. Planning involves:
A. measuring and monitoring organizational goals.
B. evaluating how well the organization has achieved its goals.
C. energizing individuals and groups to work together to achieve organizational goals.
D. deciding the strategies to adopt to attain organizational goals.
E. allowing people to work together to achieve organization goals.

51. The outcome of planning is _____, a cluster of decisions concerning what organizational
goals to pursue, what actions to take, and how to use resources to achieve goals.
A. turnaround
B. control mechanism

C. strategy
D. restructuring
E. empowerment

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52. The process that managers use to design a structure of working relationships that allows
employees to work together to achieve organizational goals is called:
A. planning.
B. leading.
C. demonstrating.
D. controlling.
E. organizing.

53. When a manager groups workers into departments based on the tasks that they perform, it
is called:
A. planning.
B. organizing.
C. leading.
D. demonstrating.
E. controlling.

54. A formal system of reporting relationships that coordinates workers so that they work
together to attempt to achieve organizational goals is called a(n):
A. leading strategy.
B. controlling strategy.
C. organizational structure.
D. low-cost strategy.

E. efficiency strategy.

55. Mr. Jake, CEO of Star, Inc. draws a picture of the reporting relationships that will occur
under the new management reorganization. This is an example of:
A. planning.
B. leading.
C. organizing.
D. executing.
E. controlling.

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56. Effective leadership depends on the use of:
A. power and influence.
B. authority and giving orders.
C. physical resources.
D. structure.
E. policies and procedures.

57. Managers motivating and assisting workers to achieve organizational goals is an important
aspect of:
A. planning.
B. leading.
C. demonstrating.
D. controlling.
E. organizing.

58. Jane, who heads the Finance team, monitors the work performance of her team members

to determine if the quality of their work is "up to standard." Jane is engaging in which
function?
A. Planning
B. Demonstrating
C. Organizing
D. Leading
E. Controlling

59. _____ managers are often called supervisors.
A. First-line
B. Middle
C. Top
D. Interim
E. Consultant

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60. Which of the following is least likely to be a first-line manager?
A. A foreman in an auto assembly plant.
B. The manager of tellers in a bank.
C. The head of a marketing department.
D. A head mechanic in a car dealer's service department.
E. The head nurse in the obstetrics department of a hospital.

61. Who is responsible for finding the best way to organize human and other resources to
achieve organizational goals?
A. First-line manager
B. Middle manager

C. Top manager
D. Executive
E. Supervisor

62. Which of the following is NOT a part of the job of a middle manager?
A. Deciding how to organize human resources
B. Suggesting to top management ways in which goals should be changed
C. Developing and fine-tuning skills and know-how within functional areas
D. Making decisions about the production of goods/services
E. Cross-departmental responsibility

63. When we say that the top managers of an organization are responsible for the performance
of all the departments in an organization, this is another way of saying that they have:
A. restructuring responsibilities.
B. technical responsibilities.
C. global responsibilities.
D. cross-departmental responsibilities.
E. competitive responsibilities.

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64. The top managers of an organization devote most of their time to _____ than lower level
managers do.
A. planning and organizing
B. leading and controlling
C. controlling and staffing
D. staffing and organizing
E. motivation and controlling

65. The ability to analyze and diagnose a problem situation and distinguish between cause and
effect is a:
A. human skill.
B. negotiating skill.
C. technical skill.
D. conceptual skill.
E. service skill.

66. Which of the following includes the ability to understand, lead, and control the behavior
of other workers?
A. Conceptual skill
B. Human skill
C. Technical skill
D. Negotiating skill
E. Organizing skill

67. The ability of a worker in the accounting department to prepare the organization's balance
sheet is an example of a(n):
A. conceptual skill.
B. first-line skill.
C. human skill.
D. technical skill.
E. cognitive skill.

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68. Which of the following is NOT a reason that organizations often group people of similar

technical skills together?
A. They can learn from each other.
B. It is easier to supervise them.
C. It is easer to focus on the bigger picture to identify cause effect relationship.
D. It is easier to train the employees.
E. The employees can easily become more skilled.

69. The specific set of departmental skills, knowledge, and experience that allows one
organization to outperform its competitors is called:
A. total quality management
B. core competencies
C. managerial skill
D. competitive advantage
E. empowerment

70. TeleTop Corporation is planning to eliminate a few redundant departments and reduce
levels in the organizational hierarchy to lower operating costs. This is an example of:
A. empowerment
B. restructuring
C. outsourcing
D. controlling
E. CRM

71. _____ involves simplifying, shrinking, or downsizing an organization's operations to
lower operating costs.
A. Streamlining
B. Reengineering
C. Optimization
D. Restructuring
E. Reforming

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72. Which of the following statements is true regarding restructuring?
A. It is significantly different from downsizing.
B. It focuses on reducing the number of jobs among first-line managers.
C. It can be done by eliminating departments and reducing levels in the hierarchy.
D. Restructuring has decreased in recent years on account of modern IT.
E. Restructuring reduces efficiency and effectiveness.

73. Which of the following statements is true regarding outsourcing?
A. It reduces efficiency.
B. It leads to an increase in operating costs.
C. It is not widely practiced in the business world.
D. It can be used for activities such as manufacturing, marketing, and customer service.
E. It takes up money and resources that could be used in more effective ways.

74. _____ involves contracting with another company, usually in a low-cost country abroad,
to have it perform a work activity the organization previously performed itself.
A. Leasing
B. Sub-letting
C. Importing
D. Exporting
E. Outsourcing

75. The process of expanding employees' knowledge, tasks, and responsibility is called:
A. empowerment
B. restructuring

C. outsourcing
D. controlling
E. job remodeling

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76. _____ involves giving employees more authority and responsibility over the way they
perform their work activities.
A. Empowerment
B. Job remodeling
C. Task analysis
D. Work liberation
E. Emancipation

77. A _____ refers to a group of employees who assume collective responsibility for
organizing, controlling, and supervising their own work activities.
A. quality circle
B. self-managed team
C. cross-functional team
D. project team
E. virtual team

78. All of the following statements are true regarding the role of IT in empowering
employees, EXCEPT:
A. it expands employees' job knowledge.
B. it reduces the scope of employees' job responsibilities.
C. it allows one employee to perform a task that was previously performed by many
employees.

D. it increases an employee's autonomy and responsibility.
E. it facilitates the use of self-managed teams.

79. The use of information technology in self-managed teams:
A. provides team members with real-time information about each others' performance.
B. causes poor resource allocation decisions.
C. results in the underutilization of a firm's human resources.
D. allows first line managers to tell employees how to do their jobs.
E. increases the amount of time required to complete a task.

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80. When CostCo builds a distribution warehouse so that it can supply products to its stores
within a 200-mile radius on almost a daily basis, we say that CostCo has achieved:
A. empowerment.
B. a competitive advantage.
C. increased quality.
D. increased innovation.
E. work liberation.

81. Which of the following is NOT a building block of competitive advantage?
A. Efficiency
B. Innovation
C. Responsiveness to customers
D. Quality
E. Extremity

82. When workers are organized into quality control teams and are given the responsibility of

continuously improving their performance, they are involved in:
A. MBO.
B. SEC.
C. EPA.
D. TQM.
E. NVE

83. The process of creating new products that customers want is called:
A. customer responsiveness.
B. TQM.
C. strategy formulation.
D. innovation.
E. restructuring.

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84. All the following are true about turnaround management EXCEPT:
A. it is the creation of a new vision for a struggling company using a new approach to
planning and organizing.
B. it involves developing radical new strategies
C. it is a complex management task.
D. it is done under conditions of certainty.
E. it is intended to help a company survive, and eventually prosper.

85. When considering the challenges of managing diversity in the workplace, managers
should establish practices that ensure that human resources are treated fairly. Which of the
following is NOT one of the types of diversity managers need to be concerned about for legal
and ethical reasons?

A. Sexual preference
B. Personality
C. Religion
D. Age
E. Gender

86. Crisis management involves all of the following EXCEPT:
A. creating teams to facilitate rapid communication.
B. developing bargaining and negotiating strategies.
C. creating teams to facilitate thoughtful decision making.
D. establishing the organizational chain of command to mobilize a fast response.
E. recruiting and select the right people to lead and work in teams.

Essay Questions

87. Discuss the relationship between "efficiency" and "effectiveness" and how they impact the
performance of an organization.

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88. Explain why college students should study management. Explain how the knowledge of
management may benefit fit you personally in your future.

89. Identify and define the essential managerial functions.

90. What is a "strategy"? Give an example of the strategy of a business with which you are
familiar.

91. Identify and define the basic levels of management. What is each responsible for? Give an
example of each.

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92. Explain how and why the amount of time managers spend in the managerial functions
varies across the different levels of management.

93. Identify and briefly define the three major types of managerial skills that managers need.

94. Identify and discuss what is meant by the "technical skills" of a manager. Give a practical
business example of how managers use these skills in their everyday activities in a particular
setting.

95. Briefly explain how restructuring and outsourcing are used to increase organizational
efficiency and effectiveness.

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96. What is empowerment? What effect is empowerment likely to have on organizations?

97. What are the building blocks of competitive advantage?

98. What are some of the implications of having a diverse workforce?

99. Briefly explain the causes of global crises.

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Chapter 01 The Management Process Today Answer Key

True / False Questions

1. (p. 4) A desired future outcome that a firm hopes to achieve is called a goal.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-1
Topic: What Is Management?

2. (p. 4) The planning, organizing, leading, and controlling of resources in order to achieve
organizational goals both effectively and efficiently is known as management.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-1
Topic: What Is Management?

3. (p. 4) An organization's people are not considered one of its resources as they are not
permanent.

FALSE

AACSB: Analytic
Bloom's Taxonomy: Comprehension
Difficulty: Moderate
Learning Objective: 01-1
Topic: What Is Management?

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4. (p. 4) Management is the process of planning, organizing, leading and controlling resources
in order to make a profit. Therefore, an administrator of a not-for-profit organization is not
truly a manager.
FALSE

AACSB: Analytic
Bloom's Taxonomy: Comprehension
Difficulty: Hard
Learning Objective: 01-1
Topic: What Is Management?

5. (p. 5) Increase in a firm's effectiveness will increase its performance, but increase in
efficiency will have no predictable effect on performance.
FALSE

AACSB: Analytic
Bloom's Taxonomy: Comprehension
Difficulty: Moderate

Learning Objective: 01-1
Topic: Achieving High Performance: A Manager's Goal

6. (p. 5) McDonald's developed a fat fryer that decreases the amount of oil used in cooking, and
reduced the amount of time to cook fries. This is an example of increased efficiency.
TRUE

AACSB: Reflective Thinking
Bloom's Taxonomy: Application
Difficulty: Hard
Learning Objective: 01-1
Topic: Achieving High Performance: A Manager's Goal

7. (p. 6) Effectiveness is a measure of how productively a firm uses its resources to achieve a
goal.
FALSE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-1
Topic: Achieving High Performance: A Manager's Goal

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8. (p. 6) In general, jobs become more interesting the more complex or responsible they are.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-1
Topic: Why Study Management?

9. (p. 6) Effective managers are those who choose the right organizational goals to pursue and
have the skills to utilize resources efficiently.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-1
Topic: Achieving High Performance: A Manager's Goal

10. (p. 6) A measure of the appropriateness of goals selected by managers for the organization
and the degree to which the organization achieves these goals is known as the effectiveness of
the organization.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-1
Topic: Achieving High Performance: A Manager's Goal

11. (p. 8) The process that managers use to select the goals for the organization is known as
organizing.
FALSE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-2
Topic: Planning

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12. (p. 9) An organization's strategy is an outcome of its planning process.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-2
Topic: Planning

13. (p. 9) Grouping people into various departments of a firm is known as organizing.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-2
Topic: Organizing

14. (p. 9) An organization's structure determines how the organization's resources can be used to

create goods and services.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Comprehension
Difficulty: Easy
Learning Objective: 01-2
Topic: Organizing

15. (p. 10) The outcome of the controlling function should be the ability to measure the
organization's performance accurately.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Comprehension
Difficulty: Easy
Learning Objective: 01-2
Topic: Controlling

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16. (p. 11) Considering the management hierarchy, first-line managers typically report to top
managers.
FALSE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy

Learning Objective: 01-3
Topic: Levels of Management

17. (p. 11) To perform managerial tasks efficiently and effectively, organizations group their
managers by level in hierarchy and by type of skill.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-3
Topic: Levels and Skills of Managers

18. (p. 12) Managers who supervise first-line managers are typically called middle managers.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Knowledge
Difficulty: Easy
Learning Objective: 01-3
Topic: Levels of Management

19. (p. 13) The relative importance of planning, organizing, leading, and controlling differ
depending on the level of management that a manager occupies.
TRUE

AACSB: Analytic
Bloom's Taxonomy: Comprehension
Difficulty: Easy
Learning Objective: 01-3

Topic: Levels of Management

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