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Chapter 01
Management in a Diverse Workplace
True / False Questions
1. (p. 3) Management is a form of work that involves deciding the best way to use an
organization's resources to produce goods or provide services.
TRUE
Difficulty: Easy
2. (p. 3) Medium and large organizations may have multiple levels of management. The three
primary levels of management are: Senior Management, Advisory Committee Management
and Supervisory Management.
FALSE
Difficulty: Medium
3. (p. 3) Top or senior managers establish the objectives of the organization, formulate the steps
to accomplish them and allocate appropriate resources.
TRUE
Difficulty: Medium
4. (p. 4) Middle managers make sure that day-to-day operations run smoothly.
FALSE
Difficulty: Medium
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5. (p. 5) A management pyramid (bottom to top) would list the following managers from each
level: crew leaders, senior vice presidents and chief executive officers.
FALSE
Difficulty: Easy
6. (p. 5) Controlling is the activity which measures the performance of an organization to ensure
that financial goals are met.
TRUE
Difficulty: Easy
7. (p. 5) Holding regular meetings where employees can ask questions is an example of
leading.
TRUE
Difficulty: Easy
8. (p. 6) When a manager is making changes in policies, resolving conflicts or deciding how
best to utilize his resources, he is performing a decision-making role.
TRUE
Difficulty: Medium
9. (p. 6) Senior managers divide their time about equally among the five managerial activities.
TRUE
Difficulty: Medium
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10. (p. 6) Middle managers spend most of their time leading and planning.
FALSE
Difficulty: Easy
11. (p. 5) All management skill sets are easy to place into finite categories - as each job has
specific descriptions.
FALSE
Difficulty: Medium
12. (p. 6) Conceptual skills help managers understand how different parts of a business relate to
one another.
TRUE
Difficulty: Easy
13. (p. 7) To perform a particular job, the following three types of Management skills have been
identified:
a) Organizational skills b) Human Relations skills and c) Technical Skills
FALSE
Difficulty: Medium
14. (p. 7) A manager who interacts with peers and others outside the organization to gain
information is known as a relationship builder.
TRUE
Difficulty: Medium
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15. (p. 7) Technical skills are important at all levels of the management.
FALSE
Difficulty: Easy
16. (p. 7) Conceptual skills are most important at the senior management level.
TRUE
Difficulty: Easy
17. (p. 11) Greater diversity will always create new problems for companies as they have to
translate verbal and written materials into several languages.
FALSE
Difficulty: Easy
18. (p. 9) Increase in information availability and technological change spurts growth in
manager's role in training.
TRUE
Difficulty: Medium
19. (p. 9) The problems women and minorities face in winning promotions to senior
management positions gave rise to the term glass ceiling.
TRUE
Difficulty: Easy
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20. (p. 10) People with differing physical abilities are also included in defining diversity in the
workforce.
TRUE
Difficulty: Easy
21. (p. 10) Even though companies are becoming increasingly global, the focus on diversity is
localized and defined in Western terms.
FALSE
Difficulty: Medium
22. (p. 11) Increased organizational factionalism entails an increase in time to deal with specialinterest and advocacy groups.
TRUE
Difficulty: Hard
23. (p. 11) When starting out, entrepreneurs must perform many of the basic management
functions that professional managers perform.
TRUE
Difficulty: Medium
24. (p. 12) Entrepreneurs and professional managers have similar personal characteristics.
FALSE
Difficulty: Medium
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25. (p. 13) According to the Small Business Administration (SBA), a company is considered a
small business if it has less than 100 employees.
TRUE
Difficulty: Easy
26. (p. 13) Small businesses and large businesses tend to produce an equal amount of
innovations.
FALSE
Difficulty: Easy
27. (p. 13) Intrapreneurship is a term that defines entrepreneurs within a large or medium-sized
company.
TRUE
Difficulty: Medium
28. (p. 13) Most businesses do not encourage managers to think like entrepreneurs as the
managers might develop new products and services and start their own companies.
FALSE
Difficulty: Medium
29. (p. 13) Intrapreneurs take risks in much the same manner as entrepreneurs.
FALSE
Difficulty: Medium
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30. (p. 14) Managers do not have to possess all adequate information as they can access it using
modern computers in the new information age.
FALSE
Difficulty: Medium
Multiple Choice Questions
31. (p. 3) All of the following are levels of management except
A. top management.
B. supervisory management.
C. board of directors.
D. middle management.
E. senior management.
Difficulty: Easy
32. (p. 3) The process of deciding the most effective way to use an organization's resources for
production of goods and/or services is called
A. management.
B. resource planning.
C. strategic objective setting.
D. planning.
E. strategic execution.
Difficulty: Medium
33. (p. 4) A _____ is a member of senior management.
A. supervisor
B. CFO
C. department head
D. shift manager
E. sales representative
Difficulty: Easy
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34. (p. 4) A department head is a member of _____ management.
A. junior
B. senior
C. middle
D. supervisory
E. lower
Difficulty: Easy
35. (p. 4) A grocery store manager is a member of _____ management.
A. middle
B. senior
C. junior
D. supervisory
E. conventional
Difficulty: Easy
36. (p. 4) _____ management includes department heads and district sales managers.
A. Middle
B. Senior
C. Junior
D. Supervisory
E. First-level
Difficulty: Medium
37. (p. 4) Plans of acquiring a competitor are overseen by the company's _____ management.
A. global
B. senior
C. supervisory
D. sales and marketing
E. middle
Difficulty: Medium
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38. (p. 4) _____ managers make sure that day-to-day operations run smoothly.
A. Middle
B. Senior
C. Junior
D. Supervisory
E. Strategy
Difficulty: Easy
39. (p. 3-4) Senior managers make decisions about the company's
A. direction.
B. day-to-day problems.
C. objectives.
D. resources.
E. goals.
Difficulty: Easy
40. (p. 5) A manager who sets a goal to increase profits by 5 percent is engaged in
A. supervising.
B. mandating.
C. planning.
D. controlling.
E. organizing.
Difficulty: Medium
41. (p. 5) Providing guidance and encouragement to the employees to better their performance
at work is an example of
A. planning.
B. controlling.
C. organizing.
D. leading.
E. staffing.
Difficulty: Medium
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42. (p. 5) Holding regular meetings where employees can ask questions is an example of
A. supervising.
B. staffing.
C. leading.
D. organizing.
E. controlling.
Difficulty: Easy
43. (p. 5) When a manager is deciding on what kind of people his organization needs to meet its
goals and then recruits, selects and trains the right people he is
A. planning.
B. organizing.
C. staffing.
D. leading.
E. controlling.
Difficulty: Easy
44. (p. 5) A grocery store manager who sets up a team of employees to restock shelves is
A. supervising.
B. staffing.
C. planning.
D. organizing.
E. controlling.
Difficulty: Medium
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45. (p. 5) _____ involves grouping and assigning activities and providing authority to
employees.
A. Planning
B. Organizing
C. Staffing
D. Leading
E. Controlling
Difficulty: Medium
46. (p. 6) The middle managers spend most of their time between _____ and ______.
A. planning, leading.
B. organizing, planning.
C. leading, controlling.
D. staffing, leading.
E. organizing, controlling.
Difficulty: Easy
47. (p. 6) Most senior managers spend majority of their time
A. organizing and staffing.
B. leading and controlling.
C. planning.
D. leading, controlling, and staffing.
E. divided equally among the five management activities.
Difficulty: Medium
48. (p. 6) _____ involves measuring performance against goals.
A. Supervising
B. Mandating
C. Planning
D. Organizing
E. Controlling
Difficulty: Medium
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49. (p. 6) Interacting with people in the same field for building a network is part of a manager's
_____ role.
A. interpersonal
B. planning
C. information
D. decision-making
E. strategic
Difficulty: Easy
50. (p. 6) _____ requires a manager to analyze financial records and make changes if set
standards are not being met.
A. Supervising
B. Staffing
C. Controlling
D. Organizing
E. Leading
Difficulty: Easy
51. (p. 6) Effective usage of a manager's authority is encouraged by role definitions such as
A. interpersonal roles.
B. information-related roles.
C. decision-making roles.
D. all of the above
E. none of the above
Difficulty: Medium
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52. (p. 6) Most managing activities
A. overlap.
B. inter-relate.
C. amalgamate.
D. focus on goal orientation.
E. are redundant.
Difficulty: Medium
53. (p. 6) Working to resolve conflicts is part of a manager's _____ role.
A. interpersonal
B. authority
C. controlling
D. decision-making
E. conceptual
Difficulty: Medium
54. (p. 7) When a manager decides to work on a major contract with another organization, he is
playing the role of a
A. resource director.
B. spokesperson.
C. entrepreneur.
D. negotiator.
E. leader.
Difficulty: Medium
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55. (p. 7) A manager who serves as an official representative of the organization is filling a
_____ role.
A. leader
B. relationship builder
C. figurehead
D. spokesperson
E. resource director
Difficulty: Medium
56. (p. 7) Interacting with others to gain information is an example of a _____ role.
A. leader
B. relationship builder
C. figurehead
D. spokesperson
E. resource director
Difficulty: Medium
57. (p. 7) Working to guide and motivate staff is an example of a _____ role.
A. spokesperson
B. relationship builder
C. figurehead
D. leader
E. resource director
Difficulty: Easy
58. (p. 7) Receiving and collecting information is part of a manager's _____ role.
A. negotiating
B. controlling
C. figurehead
D. monitoring
E. resource director
Difficulty: Hard
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59. (p. 7) Distributing information throughout the organization is part of a manager's _____
role.
A. communicator
B. relationship builder
C. figurehead
D. spokesperson
E. resource director
Difficulty: Hard
60. (p. 7) Distributing information outside the organization is part of a manager's _____ role.
A. communicator
B. relationship builder
C. figurehead
D. spokesperson
E. resource director
Difficulty: Medium
61. (p. 7) Making an effort to initiate change is part of a manager's _____ role.
A. leader
B. entrepreneur
C. disturbance handler
D. negotiator
E. resource director
Difficulty: Medium
62. (p. 7) Stepping in when a subordinate suddenly leaves is part of a manager's _____ role.
A. leader
B. entrepreneur
C. disturbance handler
D. negotiator
E. resource director
Difficulty: Medium
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63. (p. 7) Making decisions about allocating personnel across departments is part of a manager's
_____ role.
A. leader
B. entrepreneur
C. disturbance handler
D. negotiator
E. resource director
Difficulty: Easy
64. (p. 7) Establishing the details of supplier contracts is part of a manager's _____ role.
A. leader
B. negotiator
C. disturbance handler
D. entrepreneur
E. resource director
Difficulty: Easy
65. (p. 6) Decision-making, planning and organizing activities require _____ skills.
A. human relation
B. technical
C. conceptual
D. intuitive
E. industry-specific
Difficulty: Medium
66. (p. 6) Conceptual skills are most important at the
A. supervisory management level.
B. board of directors level.
C. vice-president's level.
D. district manager's level.
E. entry level
Difficulty: Medium
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67. (p. 8) Technical skills are _____ important at _____ levels of management.
A. equally; all
B. most; middle
C. least; middle
D. most; low
E. most; high
Difficulty: Medium
68. (p. 12) Some characteristics of being an entrepreneur are that
A. entrepreneurs start with an idea for creating or modifying a product or service.
B. entrepreneurs own their businesses, but they are restricted to a few types of ownership.
C. some entrepreneurs are sole proprietors.
D. entrepreneurs start with an idea for creating or modifying a product or service and
entrepreneurs own their businesses, but they are restricted to a few types of ownership.
E. entrepreneurs start with an idea for creating or modifying a product or service and some
entrepreneurs are sole proprietors.
Difficulty: Hard
69. (p. 8) Management principles are typically developed through observation and
A. benchmarking.
B. best practices.
C. deduction.
D. induction.
E. intuition.
Difficulty: Medium
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70. (p. 9) Some of the factors that could improve the quality of work life include all of the
following except
A. safe and healthy work environments.
B. opportunity for personal and professional growth.
C. work culture that compensates for the lack of a personal or social life.
D. the right to privacy and free speech.
E. opportunity to use and develop individual capabilities.
Difficulty: Medium
Essay Questions
71. (p. 4) Briefly describe the responsibilities of senior, middle and supervisory managers.
Senior Management: Are responsible for establishing goals or objectives for the organization,
decides on what actions are necessary to meet those objectives and how to utilize the
organization's resources. CEO's, CFO's and Senior Vice Presidents are considered Senior
Management.
Middle Management: Is responsible for achieving the goals set by senior management.
Department heads and Sales managers fall in this category.
Supervisory Management: Is responsible for ensuring that the day-to-day operations are
running smoothly. Crew leaders and Foremen are part of the Supervisory management team.
Difficulty: Medium
72. (p. 5, 6) Describe the five major tasks of management.
Planning: Deciding what objectives to pursue and what to do to achieve those objectives;
Organizing: Grouping activities, assigning activities, and providing the authority necessary to
carry out the activities.
Staffing: Determining human resource needs and recruiting, selecting, training, and
developing human resources.
Leading: Directing and channeling human behavior toward the accomplishment of objectives.
Controlling: Measuring performance against objectives, determining the causes of deviations,
and taking corrective action where necessary.
Difficulty: Hard
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73. (p. 6, 7) Briefly describe the three different management skills that managers need to perform
their jobs.
There are three different skills that all managers must possess. They are Conceptual Skills,
Human Relations Skills and Technical Skills:
Conceptual Skills help managers understand how different parts of an organization relate to
one another and to the business as a whole;
Human Relations Skills: Needed by managers to understand and work well with people;
Technical Skills: Specific abilities that people use to perform their jobs.
Difficulty: Medium
74. (p. 7; Fig. 1.4) Explain five decision-making roles of management.
Entrepreneur role: Manager initiates change.
Disturbance handler role: Manager decides how conflicts between subordinates should be
resolved and steps in when needed.
Resource director role: Manager decides how the organization will use its resources.
Negotiator role: Manager decides to negotiate major contracts.
Figurehead: Manager serves as an official representative of the organization or unit.
Relationship builder: Manager interacts with peers and with people outside the organization.
Leader: Manager guides and motivates staff and acts as a positive influence in the workplace.
Communicator: Manager distributes information within the organization.
Spokesperson: Manager distributes information outside the organization.
Monitor: Manager receives and collects information.
Difficulty: Medium
75. (p. 7; Fig. 1.4) Identify and discuss the interpersonal roles associated with management.
Figurehead role: The manager serves as an official representative of the organization or unit;
relationship builder role: Manager interacts with peers and with people outside the
organization to gain information; leader role: Manager guides and motivates staff and acts as a
positive influence in the workplace.
Difficulty: Medium
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76. (p. 7) Describe the informational roles of a manager.
Monitor: Manager receives and collects information;
Communicator: Manager distributes information within the organization;
Spokesperson: Manager distributes information outside the organization.
Difficulty: Medium
77. (p. 10) Contrast the current state of workplace diversity with that of the past. What does the
future likely hold with respect to workplace diversity?
In the 1960s, White males dominated most businesses; most managers managed people with
backgrounds similar to their own; The trend toward greater diversity is expected to continue
over the next 50 years allowing organizations to respond not only to diverse groups of
employees but customers as well.
Diversity must also be defined in global terms as the more and more companies begin to
globalize. Diversity must not be defined in Western terms as was before.
Difficulty: Medium
78. (p. 11) Identify some of the challenges that entrepreneur's might face when establishing a
business.
Being an entrepreneur is much more riskier than than being a professional manager. Without
the right skills and a lot of hard work, entrepreneurs can go out of business and lose all the
money invested in their company. Many entrepreneurs like the idea of making decisions and
being their own bosses, however, the decisions they make can be detrimental to their business
as they must be willing to take risks.
Difficulty: Medium
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79. (p. 12) What can managers do to encourage entrepreneurship within an organization?
Develop a system that supports and encourages people to champion their new ideas or
products; tolerate failures; establish effective communication systems.
Difficulty: Easy
80. (p. 14) Outline the factors that help managers deal with the challenges of the new
information age.
Identifying and acquiring adequate information historically have been two of the biggest
challenges of managers. The advent of the computer age has greatly altered not only the
availability of information but also the manner in which it is identified and acquired. The
phenomenal improvements in computer hardware have been accompanied by improvements
in software and user compatibility. Modern computers are much more user friendly than those
of the past. Managers today do not need to know sophisticated programming languages and
computer jargon to use computers.
Difficulty: Medium
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