Shared Flashcard Set

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Understanding Business Chapter 7
Study set for Intro to Business class based on the book by Nickels
124
Business
Undergraduate 1
02/29/2012

Additional Business Flashcards

 


 

Cards

Term

(p. 179) __________ is the art of utilizing organizational resources to accomplish goals at work. 
A. Socialization
B. Justification
C. Preparation
D. Management

Definition

D. Management

Term

(p. 178) Management is more progressive today. There is more emphasis on: 
A. individual work that can be successfully measured.
B. working in teams.
C. striving to eliminate the control function of management.
D. placing greater reliance on the government for financing.

Definition

B. working in teams.

Term

(p. 178) One of the challenges facing today's managers is to: 
A. deal with a workforce that is less educated and less self-directed than in the past.
B. find ways to encourage conformity instead of diversity.
C. work with a more educated workforce.
D. cope with the sudden and unexpected slowdown in the pace of innovation and change.

Definition

C. work with a more educated workforce.

Term

 (p. 178) Today's progressive managers: 
A. prefer to use the autocratic style of leadership.
B. emphasize teamwork and cooperation rather than discipline and order-giving.
C. face fewer challenges and problems than managers in the past.
D. can rely on a much higher level of worker loyalty to the organization than in the past.

Definition

B. emphasize teamwork and cooperation rather than discipline and order-giving.

Term

 (p. 178) Which of the following statements comparing today's workers with those from earlier eras is most accurate? Compared to earlier workers, today's employees are: 
A. more loyal to the firm.
B. less educated and less self-directed.
C. more willing to leave the firm to seek better opportunities.
D. more likely to need direct guidance and direction from their managers.

Definition

C. more willing to leave the firm to seek better opportunities.

Term

(p. 178) The revolution in management that is currently underway suggests that the most effective managers of the future will: 
A. be very strict in their treatment of workers.
B. emphasize individual initiative rather than teamwork.
C. specialize in performing one of the four management functions.
D. emphasize team work.

Definition

D. emphasize team work.

Term

(p. 178) How are managers today different from managers in the past? 
A. Managers today are more likely to reprimand workers
B. Managers in the past would use praise and gentle suggestions
C. Managers in the past were less loyal to their employer
D. Managers today emphasize teamwork

Definition

D. Managers today emphasize teamwork

Term

 (p. 180) Which of the following statements has resulted in changes in the role of management? 
A. Most workers today show little initiative or creativity, so managers must spend more time directing their efforts
B. The marketplace is becoming global, which increases both competition and opportunities for cooperation and integration
C. Firms are recognizing that their workforces are too diverse, so managers must find ways to reduce diversity without violating federal laws against discrimination
D. The desire to encourage teamwork has resulted in larger, more cumbersome organizations with too many workers

Definition

B. The marketplace is becoming global, which increases both competition and opportunities for cooperation and integration

Term

(p. 179) One of the four primary functions of management is: 
A. controlling.
B. marketing.
C. financing.
D. designing.

Definition

A. controlling.

Term

(p. 179) The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as
A. directing.
B. leadership.
C. planning.
D. forecasting.

Definition

C. planning.

Term

(p. 180) According to the "Reaching Beyond Our Borders" box in Chapter 7, Jack Welch, former CEO of General Electric, said the key problem companies face in addressing opportunities for in the global market is: 
A. the lack of engineer and scientists in the global market.
B. the lack of support from the U.S. government for global expansion.
C. the lack of professional managers at all levels to run operations.
D. the lack of production capability to keep up with global demand.

Definition

C. the lack of professional managers at all levels to run operations.

Term

(p. 180) When managers work on creating conditions and systems to ensure that everything and everyone works together to achieve the organization's goals, they are involved in the __________ function of management. 
A. controlling
B. leading
C. planning
D. organizing

Definition

D. organizing

Term

(p. 181) __________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not. 
A. Organizing
B. Controlling
C. Leading
D. Officiating

Definition

B. Controlling

Term

(p. 179) ___________ is the management function that involves setting goals, strategies, and tactics for achieving the organization's goals and objectives. 
A. Forecasting
B. Planning
C. Conceptualizing
D. Controlling

Definition

B. Planning

Term

 (p. 180) ___________ is the management function of creating a vision for the organization and guiding, training, coaching, and motivating employees to help achieve the goals and objectives of the organization. 
A. Organizing
B. Controlling
C. Leading
D. Officiating

Definition

C. Leading

Term

(p. 180) Which of the following goals best describes today's view of the organizing function? Organizing today focuses on: 
A. achieving unified opinions from a diversified workforce.
B. designing the organization around the customer.
C. simplifying the process of measuring outcomes related to performance standards.
D. developing the most efficient strategic plans for the firm.

Definition

B. designing the organization around the customer.

Term

(p. 181) When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in: 
A. controlling.
B. planning.
C. directing.
D. accounting.

Definition

A. controlling.

Term

(p. 179) When managers identify a market trend that suggests a new opportunity and then devise a strategy to go after this new opportunity, they are involved in the function of: 
A. controlling.
B. planning.
C. leading.
D. organizing.

Definition

B. planning.

Term

(p. 180) Which of the following activities would be a part of the leading function of management? 
A. Devising a new strategic plan to enter a new foreign market currently dominated by a competing firm
B. Recruiting qualified workers to join the organization and assigning them to their proper position
C. Examining a financial report to see whether the firm's profits are improving and taking corrective action if they are not
D. Training and coaching workers to help them understand their job and perform it effectively

Definition

D. Training and coaching workers to help them understand their job and perform it effectively

Term

(p. 179) Which of the following activities is part of the planning function of management? 
A. Assigning a particular worker to do a specific task
B. Looking at market forecasts to identify future business opportunities and challenges
C. Praising a sales representative who has far exceeded her monthly sales objectives
D. Conducting a job interview with a potential new employee

Definition

B. Looking at market forecasts to identify future business opportunities and challenges

Term

(p. 180) Which of the following activities is part of the organizing function of management? 
A. Going over a spreadsheet to analyze some financial data
B. Teaching a new employee how to use a piece of office equipment
C. Giving front-line workers additional resources needed to provide faster and better service to customers
D. Developing a broad general strategy to help the organization meet its long-term growth objectives

Definition

C. Giving front-line workers additional resources needed to provide faster and better service to customers

Term

(p. 180) As a manager, two of Sylvia's strengths are her ability to communicate goals clearly, and her ability to guide, coach, and motivate workers. Based on these strengths, __________ is a management function that Sylvia is likely to be good at performing. 
A. Controlling
B. Planning
C. Leading
D. Organizing

Definition

C. Leading

Term

(p. 181) Amanda, a regional manager for Flairol Cosmetics, has just seen a report showing that sales in her region are trending lower than anticipated for the third quarter. Her next task is to determine the reason for the disappointing results and find a way to get sales up to their desired level. Amanda's efforts are part of the ____________ function of management. 
A. controlling
B. directing
C. organizing
D. planning

Definition

A. controlling

Term

(p. 181) A __________ is an overall explanation of why an organization exists and where it is trying to head. 
A. tactical plan
B. prime directive
C. corporate charter
D. vision

Definition

D. vision

Term

(p. 181) A vision for a company is: 
A. an explanation of why the company exists and where it wants to go.
B. the same thing as an objective.
C. a detailed plan that outlines the major organizational structure of the firm.
D. very relevant for the short-term, but less useful for the long-term.

Definition

A. an explanation of why the company exists and where it wants to go.

Term

(p. 181) A meaningful mission statement should address topics such as the organization's: 
A. form of ownership and methods of financing.
B. self-concept and company philosophy.
C. advertising strategy and distribution plan.
D. tactical plans and contingency plans.

Definition

B. self-concept and company philosophy.

Term

(p. 181) Employees often work with managers to develop a(n) __________ that outlines the fundamental purposes of their organization. 
A. organization chart
B. value statement
C. mission statement
D. PERT diagram

Definition

C. mission statement

Term

 (p. 181) __________ involves setting the organization's vision, goals, and objectives. 
A. Organizing
B. Planning
C. Controlling
D. Directing

Definition

B. Planning

Term

(p. 181) ___________ are broad, long-term accomplishments an organization wants to achieve. 
A. Goals
B. Objectives
C. Directives
D. Agendas

Definition

A. Goals

Term

(p. 181) __________ are specific, short-term, measurable results an organization wants to achieve in order to fulfill its long term goals. 
A. Directives
B. Opportunity targets
C. Objectives
D. Mission complements

Definition

C. Objectives

Term

 (p. 182) A __________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities. 
A. WISH
B. SWAMP
C. ASSET
D. SWOT

Definition

D. SWOT

Term

(p. 183) __________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals. 
A. Strategic
B. Contingency
C. Central
D. Tactical

Definition

A. Strategic

Term

(p. 184) The type of planning that is concerned with developing detailed short-term actions about what is to be done, who is to do it, and how it is to be done is known as __________ planning. 
A. strategic
B. contingency
C. first-line
D. tactical

Definition

D. tactical

Term

(p. 184) __________ planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives. 
A. Strategic
B. Contingency
C. Tactical
D. Alternative

Definition

B. Contingency

Term

(p. 184) Tactical planning is concerned with: 
A. determining the best way to cope with an emergency situation.
B. developing detailed strategies about what is to be done, who is to do it, and how it is to be done.
C. devising temporary courses of action to be used if the primary plans do not achieve the desired results.
D. setting long run goals that will govern the general course of the organization for years.

Definition

B. developing detailed strategies about what is to be done, who is to do it, and how it is to be done.

Term

(p. 184) Which of the following is involved in setting work standards and schedules needed to implement the firm's tactical objectives? 
A. Mission statement
B. Tactical planning
C. Operational planning
D. Contingency planning

Definition

C. Operational planning

Term

 (p. 184) A(n) __________ would be used by a department manager as a tool for making daily and weekly assignments: 
A. operational plan
B. vision statement
C. mission statement
D. tactical plan

Definition

A. operational plan

Term

 (p. 184) Strategic planning looks at the organization as a whole, while ________ planning focuses on daily tasks and decisions. 
A. tactical
B. strategic
C. mission
D. operational

Definition

D. operational

Term

(p. 185) _________ planning is a part of contingency planning that is used to deal with sudden and unexpected changes in the business environment. 
A. Crisis
B. Tactical
C. Operational
D. SWOT

Definition

A. Crisis

Term

(p. 185) __________ is choosing among two or more alternatives. 
A. Contingency planning
B. Decision-making
C. Organizational selection
D. Utility analysis

Definition

B. Decision-making

Term

(p. 186) The first step in the rational decision-making model is to: 
A. recruit team members to work on the problem.
B. gather data.
C. develop alternative responses.
D. define the situation.

Definition

D. define the situation.

Term

(p. 186) __________ is a problem solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas. 
A. Brainstorming
B. Game theory
C. CAD/CAM
D. PMI

Definition

A. Brainstorming

Term

(p. 186) PMI is a: 
A. computer program used to help managers write mission statements.
B. statistical technique used in the controlling process.
C. problem solving technique used to evaluate possible solutions to a problem.
D. rule of thumb used to determine how many employees should be managed by any single manager.

Definition

C. problem solving technique used to evaluate possible solutions to a problem.

Term

(p. 181) In a company in which a effective vision has been provided: 
A. there is no need for tactical planning.
B. the economic and competitive environments tend to be much more predictable.
C. employees are likely to have a sense of purpose and a common set of values.
D. goals and objectives are no longer needed.

Definition

C. employees are likely to have a sense of purpose and a common set of values.

Term

(p. 181) A basic difference between goals and objectives is that goals are: 
A. precise, while objectives are vague.
B. set by tactical plans, while objectives are set by strategic plans.
C. set by middle management, while objectives are set by first-line managers.
D. concerned with broad, long-term accomplishments, while objectives focus on specific short-term details.

Definition

D. concerned with broad, long-term accomplishments, while objectives focus on specific short-term details.

Term

 (p. 183) Which of the following would be a concern addressed in a strategic plan? 
A. Should the firm make a long-term commitment to expand into new markets?
B. Which specific jobs should be assigned to each employee?
C. How much output should be produced this week in a given production facility?
D. Which computer software package should the firm's human resources office use to manage the payroll?

Definition

A. Should the firm make a long-term commitment to expand into new markets?

Term

(p. 185) According to the "Spotlight on Small Business" box in Chapter 7, the Blue Man Group knew that if they wanted to expand their product planning and organization were critical. Therefore, the three partners spent considerable time writing a: 
A. strategic plan
B. performance plan
C. crisis plan
D. responsive plan

Definition

A. strategic plan

Term

(p. 184) Because economic and competitive environments frequently change, organizations should: 
A. set a long-term plan and stick to it.
B. develop contingency plans.
C. save time and money by cutting back on planning.
D. eliminate any long-term strategic plans, but devise short-term tactical plans and update them once a year.

Definition

B. develop contingency plans.

Term

 (p. 186) Which of the following techniques would a team of workers be most likely to use if they wanted to evaluate several possible solutions to a specific problem their company needs to solve? 
A. PERT
B. Regression analysis
C. PMI
D. MBO

Definition

C. PMI

Term

(p. 181) Jenna Raiter, the president and CEO of AutoMotion Auto Service Centers, has asked several managers and employees to help establish a statement to outline the fundamental purposes of their company. The result of this effort is likely to be a document known as a(n): 
A. payoff matrix.
B. mission statement.
C. tactical plan.
D. organization chart.

Definition

B. mission statement.

Term

(p. 183) Jamal is part of a management group that is examining whether his company, State Engineering, should offer some important new services that would broaden its business by appealing to a different group of potential clients. Jamal's group is involved with: 
A. contingency planning.
B. operational planning.
C. strategic planning.
D. tactical planning.

Definition

C. strategic planning.

Term

(p. 181) Monica was hired by the Misty Mount Corporation to take over as the new chief executive officer. Her initial impression is that the company is in disarray, primarily because the employees do not have a sense of purpose or a common set of values. Monica's observations suggest that she needs to provide a(n) _________ for Misty Mount: 
A. vision
B. contingency plan
C. objective function
D. corporate logo

Definition

A. vision

Term

(p. 181) Customers who visit any Good As New Appliance Repair Center see a framed statement prominently displayed near the front door. The plaque describes the company's fundamental purposes. In part, it states that "All Good As New Centers operate under the belief that every customer deserves good quality parts, fast and dependable service, and a fair price." The words on this plaque reflect the ____________ of Good As New. 
A. strategic plan
B. mission statement
C. corporate agenda
D. corporate charter

Definition

B. mission statement

Term

 (p. 184) Setting contingency plans in an organization is considered very important today mainly because: 
A. managers have historically been poor tactical planners.
B. the government can charge firms with unfair business practices if they do not have such plans.
C. conditions change rapidly in today's economic and competitive environments.
D. most employees and staff don't understand strategic planning, so they tend to rely more on contingency plans.

Definition

C. conditions change rapidly in today's economic and competitive environments.

Term

 (p. 182) When a firm makes use of the SWOT analysis, one of its objectives is to: 
A. identify the best employees to fill each position within the organization.
B. set specific short-term performance standards for each department.
C. evaluate the desirability of issuing stocks or bonds in the current financial climate.
D. identify the things it does well as an organization and the things it needs to improve.

Definition

D. identify the things it does well as an organization and the things it needs to improve.

Term

(p. 184) Jermaine is a manager with Drevil Industries. Part of his job is to make specific short-term decisions about what his department must do to achieve Drevil's long-term success. Jermaine is involved in: 
A. strategic planning.
B. contingency planning.
C. tactical planning.
D. complimentary planning.

Definition

C. tactical planning.

Term

 (p. 185) According to the "Spotlight on Small Business" box in Chapter 7, one of the keys to the success of the Blue Man Group has been: 
A. keeping the price for their show as low as possible.
B. focusing on the small markets where the competition for entertainment is less intense.
C. the decision to keep the organization small and not risk losing control through expansion.
D. the development of a strategic plan to manage the product's growth and everyday operations.

Definition

D. the development of a strategic plan to manage the product's growth and everyday operations.

Term

(p. 184) Kayla is a supervisor who manages a production line. She spends several hours each week developing specific employee work assignments and production schedules for the coming week so that the production department can meet its short-term production objectives. This suggests that a significant component of Kayla's job involves: 
A. strategic planning.
B. contingency planning.
C. tactical planning.
D. operational planning.

Definition

D. operational planning.

Term

 (p. 184) Flavio, CEO of Fabulous Frozen Custard believes that alternate plans are almost as important as the primary operational plans because external circumstances such as the weather, competitor moves, and even economic conditions make it important to have a Plan B. Flavio endorses: 
A. tactical planning.
B. retroactive planning.
C. concurrent planning.
D. contingency planning.

Definition

D. contingency planning.

Term

 (p. 186) Carlos had been thinking of setting up a graphic design service business for quite some time. He knew that he wanted to work at home and he now had several leads for prospective customers. He also knew how much money he needed to make to cover his expenses. He had several ways to approach his new business including working by himself or taking on a partner. Both ways needed more thought to determine what each would involve. In terms of the rational decision-making model, Carlos is in which of the following steps? 
A. Defining the situation
B. Describing and collect needed information
C. Develop alternatives
D. Develop agreement among those involved

Definition

C. Develop alternatives

Term

(p. 186) __________ is the management function that involves allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives. 
A. Controlling
B. Outsourcing
C. Organizing
D. Coordinating

Definition

C. Organizing

Term

(p. 187) A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom. 
A. balance sheet
B. Venn diagram
C. stakeholder outline
D. organization chart

Definition

D. organization chart

Term

(p. 187) A(n) ________________ is a visual device which shows relationships among people and divides the organization's work. 
A. organization chart
B. Venn diagram
C. corporate tree
D. Gantt chart

Definition

A. organization chart

Term

(p. 188) The level of management that is directly responsible for assigning specific jobs to workers and evaluating their daily performance is called: 
A. primary management.
B. middle management.
C. supervisory management.
D. secondary management.

Definition

C. supervisory management.

Term

Middle managers are responsible for: 
A. establishing the vision for the organization.
B. assigning specific jobs and evaluating the daily performance of workers.
C. devising the organization's strategic plan.
D. developing tactical plans and controlling.

Definition

D. developing tactical plans and controlling.

Term

(p. 187) General and divisional managers, plant managers, and deans and department heads at colleges are classified as: 
A. middle management.
B. supervisory management.
C. top management.
D. nominal management.

Definition

A. middle management.

Term

(p. 188) Supervisory managers spend most of their time on: 
A. conceptual and financial skills.
B. technical and human relations skills.
C. strategic planning.
D. external efforts such as meeting with stockholders and other stakeholders.

Definition

B. technical and human relations skills.

Term

(p. 188) ___________ skills involve a manager's ability to picture the organization as a whole and the relationship among its various parts. 
A. Creative
B.
 Technical
C. Conceptual
D. Autonomic

Definition

C. Conceptual

Term

(p. 188) ____________ skills include the ability to perform tasks of a specific department or job, such as selling (marketing) or bookkeeping (accounting). 
A. Conceptual
B. Departmental
C. Technical
D. Tactical

Definition

C. Technical

Term

 (p. 188) Leadership, coaching, and morale building are all part of a manager's _________ skills. 
A. technical
B. theoretical
C. empirical
D. human relations

Definition

D. human relations

Term

 (p. 188) Although top managers most often possess these skills, they usually make less use of __________ skills than supervisory managers. 
A. technical
B. conceptual
C. human relations
D. empirical

Definition

A. technical

Term

(p. 187) The downsizing that has occurred in recent years has __________ middle managers in many organizations. 
A. increased the number of
B. eliminated the jobs of some
C. strengthened the control of
D. increased the importance of

Definition

B. eliminated the jobs of some

Term

(p. 187) Which of the following management positions is responsible for getting the right information to other managers to enable them to make better decisions? 
A. Chief executive officer (CEO)
B. Chief financial officer (CFO)
C. Chief planning officer (CPO)
D. Chief information officer (CIO)

Definition

D. Chief information officer (CIO)

Term

(p. 188) The further up the managerial ladder a person moves, the __________ his or her original job skills become. 
A. more important
B. less important
C. stronger
D. more tactical

Definition

B. less important

Term
(p. 187) A chief operating officer (COO) would be classified as part of a firm's: 
A. primary management.
B. middle management.
C. top management.
D. first-line management.
Definition
C. top management.
Term

(p. 189) ___________ involves recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives. 
A. Directing
B. Planning
C. Leading
D. Staffing

Definition

D. Staffing

Term

(p. 188) In comparing the types of skills used by managers at different levels within an organization, which of the following is true? 
A. Top managers use mainly technical skills and middle and first-line managers use mostly conceptual skills
B. First-line managers use mainly technical and human relations skills, while top managers devote most of their time to activities involving human relations and conceptual skills
C. The types of skills used by managers do not change much from one level of management to another
D. The specific skills used at different levels of management do vary, but conceptual skills are the most important at all levels

Definition

B. First-line managers use mainly technical and human relations skills, while top managers devote most of their time to activities involving human relations and conceptual skills

Term

(p. 189) Gabriella is responsible for hiring, motivating, and retaining the best employees for her organization. Gabriella is in charge of: 
A. staffing.
B. orienting.
C. directing.
D. facilitating.

Definition

A. staffing.

Term

(p. 188) After thirteen years as a laborer for Hendrix Construction, Jimmy was promoted to the position of foreman. He is directly responsible for assigning various jobs to his work crew and evaluating their performance on a daily basis. Jimmy is now a member of: 
A. top management.
B. middle management.
C. supervisory management.
D. forward management.

Definition

C. supervisory management.

Term

 (p. 188) By completing the courses needed to obtain a college major in accounting, marketing, or some other field, a student can go a long way toward acquiring the _________ skills managers need to rise through the ranks of their area of specialization. 
A. autocratic
B. technical
C. human relations
D. secondary

Definition

B. technical

Term

 (p. 187) Which of the following persons is most likely to be involved in strategic planning? 
A. Chief executive officer
B. Electrical shop supervisor
C. Budget analyst
D. Advertising manager

Definition

A. Chief executive officer

Term

(p. 188) Axel is in a new position, serving as a first-line manager. Axel's position will require him to spend a lot of time: 
A. developing strategic plans.
B. evaluating the daily performance of workers.
C. creating a vision for the company.
D. providing information to stakeholders.

Definition

B. evaluating the daily performance of workers.

Term

(p. 187) Anita is employed as plant manager for Mojo Industries, Incorporated. Though she spends some time performing all management functions, she is particularly concerned with tactical planning and controlling. Anita's position would be classified as part of Mojo's: 
A. top management.
B. lateral management.
C. supervisory management.
D. middle management.

Definition

D. middle management.

Term

(p. 188) After working for eleven years as a production line worker, Hollis recently was made a foreman. In his new position, Hollis will rely on: 
A. conceptual skills more than human relations skills.
B. technical skills and human relations skills more than conceptual skills.
C. technical skills and conceptual skills, but he won't really need any human relations skills.
D. accounting and financial skills.

Definition

B. technical skills and human relations skills more than conceptual skills.

Term

(p. 188) Ricardo works as a department head at BarnesHospital. His job requires Ricardo to spend most of his time training and coaching employees to perform their jobs more effectively and teaching other managers to be better leaders. Ricardo's job requires him to make full use of his: 
A. technical skills.
B. conceptual skills.
C. orientation skills.
D. human relations skills.

Definition

D. human relations skills.

Term

 (p. 188) As CEO of Google, Eric Schmidt performs strategic planning for the organization as well as putting structure in place to monitor company progress. These activities make use of Eric's: 
A. conceptual skills.
B. technical skills.
C. concurrent skills.
D. human relations skills.

Definition

A. conceptual skills.

Term

(p. 188) Vinnie wants to become a manager in his company, but he has always been a bit shy and has a hard time interacting with co-workers. In order for Vinnie to succeed as a manager, he will need to work on his: 
A. technical skills.
B. human relations skills.
C. control skills.
D. integration skills.

Definition

B. human relations skills.

Term

(p. 188) Rob intends to major in accounting because he is confident that an ability to read and interpret financial and accounting data is the way to get to the top in business. Rob seems to be concerned with developing his: 
A. technical skills.
B. verbal skills.
C. qualitative skills.
D. conceptual skills.

Definition

A. technical skills.

Term

 (p. 189) _____________ involves creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business so that it is more effective and efficient. 
A. Organizing
B. Production management
C. Tactical planning
D. Leadership

Definition

D. Leadership

Term

(p. 189) Leaders: 
A. embrace change.
B. are mainly concerned with tactical issues as opposed to change issues.
C. tend to do the work themselves rather than delegate it to others.
D. strive to maintain order and stability.

Definition

A. embrace change.

Term

(p. 191) The __________ style of leadership is characterized by making managerial decisions without consulting others. 
A. autocratic
B. bureaucratic
C. free rein
D. democratic

Definition

A. autocratic

Term

. (p. 191) Managers who listen to their subordinates and allow them to participate in decision-making are using the ____________ style of leadership. 
A. autocratic
B. free-rein
C. participative
D. bureaucratic

Definition

C. participative

Term

(p. 191) A(n) __________ leader would set objectives and give employees a great deal of freedom to decide for themselves how to accomplish those objectives. 
A. free-rein
B. autocratic
C. Type A
D. aristocratic

Definition

A. free-rein

Term

(p. 189) A key to effective leadership is the ability to: 
A. maintain order, stability, and control.
B. communicate a vision and rally others around that vision.
C. master the technical details of the jobs performed by subordinates.
D. maintain an autocratic approach to dealing with others.

Definition

B. communicate a vision and rally others around that vision.

Term

(p. 192) __________ is the term used to describe giving workers the education and tools they need to assume additional decision-making powers. 
A. Energizing
B. Provisioning
C. Upgrading
D. Enabling

Definition

D. Enabling

Term

 

(p. 192) _____________ means giving employees the authority and responsibility to respond quickly to customer requests. 
A. Restructuring
B. Delineating
C. Empowerment
D. Intrapreneuring

 

Definition

C. Empowerment

Term

(p. 192) In traditional organizations, ____________ involves giving explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization. 
A. directing
B. organizing
C. budgeting
D. controlling

Definition

A. directing

Term

 (p. 192) ____________ is concerned with finding the right information and making that information accessible and understood by everyone in an organization. 
A. Mission management
B. Data management
C. Knowledge management
D. Auditing

Definition

C. Knowledge management

Term

(p. 192) The first step in developing a knowledge management system is to: 
A. empower employees to make their own decisions and accept the consequences.
B. obtain the necessary information system technologies.
C. recognize that perfect information is readily available in all organizations.
D. determine what knowledge is most important to the organization.

Definition

D. determine what knowledge is most important to the organization.

Term

(p. 189) One difference between managers and leaders is that: 
A. managers are found in businesses while leaders operate in nonprofit organizations.
B. mangers work to achieve stability while leaders embrace change.
C. managers use an autocratic approach while leaders embrace a democratic style.
D. all employees can manage, but only top managers can lead.

Definition

B. mangers work to achieve stability while leaders embrace change.

Term

(p. 192) Which of the following statements about effective leadership is the most accurate? 
A. Effective leaders have the same personality traits
B. The most effective leadership style depends on who is being led and in what situation
C. The democratic style of leadership will almost always improve the effectiveness of the organization
D. One trait of effective managers is that they consistently maintain the same style of leadership

Definition

B. The most effective leadership style depends on who is being led and in what situation

Term

(p. 191) Autocratic leadership is likely to be effective when: 
A. subordinates are highly trained professionals.
B. the organization faces an emergency situation.
C. workers enjoy expressing their opinions and having a say in what is done.
D. the manager is uncertain about the best strategy to pursue.

Definition

B. the organization faces an emergency situation.

Term

(p. 192) Which of the following statements about leadership styles is most accurate? 
A. A manager should choose one style and use it consistently
B. Managers have no control over the leadership style they use
C. Effective managers often use a variety of leadership styles
D. Managers should always start with an autocratic style, but can gradually switch to a more democratic approach if workers earn their trust

Definition

C. Effective managers often use a variety of leadership styles

Term

(p. 192) As firms make greater use of empowerment and teams, managers will find that they: 
A. should use the same techniques for directing employees that were used in the past.
B. will need to closely supervise the teams to make sure they remain focused on the goals of the organization.
C. will need to provide the teams with detailed instructions to give them a clear sense of direction.
D. must become more like coaches and counselors than bosses.

Definition

D. must become more like coaches and counselors than bosses.

Term

Which of the following best summarizes the type of leader future organizations are likely to need? In the future, organizations will need leaders who: 
A. supply both a vision and a moral and ethical foundation for growth.
B. provide the sense of stability and orderliness the organization needs to withstand the challenges posed by a changing environment.
C. have a strong track record of focusing on the accomplishment of financial objectives.
D. are effective at using autocratic techniques.

Definition

A. supply both a vision and a moral and ethical foundation for growth.

Term

(p. 191) The CEO of peripheral company QuickDrive uses a leadership style that encourages employees to discuss management issues with the CEO and to work together to resolve those issues in a democratic manner. Which of the following statements would the CEO of QuickDrive most likely make? 
A. The key to QuickDrive staying on top in a high-tech industry is not wasting time checking out what other firms do, but to act immediately on my directives
B. In a high-tech business, it is more important to invest in technology than to invest in people
C. The key to keeping talented employees loyal to QuickDrive is to use a participative management style and treat them with respect, value their ideas, give them the resources they need, and expect great things from them
D. Spending a lot of money to buy out competitors for their technology is likely to backfire, because QuickDrive is a leader in technology development

Definition

C. The key to keeping talented employees loyal to QuickDrive is to use a participative management style and treat them with respect, value their ideas, give them the resources they need, and expect great things from them

Term

(p. 191) Well-known retired basketball coach, Bob Knight, was known for his emotional antics at IndianaUniversity and Texas Tech. If you talk with Bob, he believes in total dedication from his team and total compliance to his style of coaching. It's "his way or the highway." Bob typifies the _____________ style of leader. 
A. bureaucratic
B. free-rein
C. remanded
D. autocratic

Definition

D. autocratic

Term

 (p. 191) At Holyfield Chemicals, department heads usually make decisions after meeting with employees and seeking their ideas and suggestions. Department heads at Holyfield Chemicals make extensive use of the ___________ style of leadership. 
A. autocratic
B. diplomatic
C. democratic (participative)
D. open shop

Definition

C. democratic (participative)

Term

 (p. 191) At Lifeline Pharmaceuticals, highly regarded research personnel rely on top management to provide strategic direction. Beyond that, researchers work on their own to develop new drugs to satisfy customer needs and company profit objectives. Middle management at Lifeline practice _____________. 
A. free-rein leadership
B. consultative leadership
C. projectory leadership
D. autocratic leadership

Definition

A. free-rein leadership

Term

 

(p. 192) Adam is a first-line manager for Idle Time Gaming, Inc., a company whose values and focus is innovation. Having recently transferred in from a traditional retail (top/down) company, which of the following changes will the new company expect Adam to embrace? 
A. He must continue to issue detailed instructions to give the teams a sense of direction
B. He will no longer have a management position in the firm, since the purpose of teams is to eliminate the need for first-line managers
C. He will need to act less like a "boss" and more like a coach, advisor, counselor, and team player
D. He will isolate himself from his subordinates

 

Definition

C. He will need to act less like a "boss" and more like a coach, advisor, counselor, and team player

Term

(p. 193) The first step in controlling consists of: 
A. issuing orders and explaining routines.
B. setting clear performance standards.
C. establishing a clear chain of command.
D. assigning workers to perform specific tasks.

Definition

B. setting clear performance standards.

Term

(p. 193) In the control process the first step is to: 
A. communicate results and deviations to employees.
B. compare results to plans and standards.
C. set clear and appropriate standards.
D. monitor and record performance.

Definition

C. set clear and appropriate standards.

Term

(p. 194) In order for standards to be useful in the controlling process, they must have certain characteristics. One of these characteristics is that they must be: 
A. nonspecific.
B. redundant.
C. included the mission statement.
D. attainable.

Definition

D. attainable.

Term

 (p. 194) Which of the following should form the foundation of a firm's control system? 
A. Accounting and finance
B. Marketing and production
C. Human resources and finance
D. Computing and production

Definition

A. Accounting and finance

Term

(p. 194) __________ are units within an organization that receive services from other units within the organization. 
A. End-users
B. Internal customers
C. Third-party distribution centers
D. Profit centers

Definition

B. Internal customers

Term

(p. 194) __________ include dealers, who buy products to sell to others, and ultimate customers who buy products for their own personal use. 
A. End users
B. External customers
C. Internal customers
D. Distribution centers

Definition

B. External customers

Term

 (p. 193) Ho Han has just spent two hours going over quality reports to determine whether his department is meeting quality standards he set for the current month. Ho's efforts are part of the ___________ function of management. 
A. planning
B. organizing
C. directing
D. controlling

Definition

D. controlling

Term

(p. 194) Pam is a sales manager for Paradise Beauty Products. She has told her sales people that she expects each of them to increase their customer contacts by at least 5 percent in the next month. Pam has set a(n): 
A. procedural policy.
B. functional objective.
C. policy guide.
D. performance standard.

Definition

D. performance standard.

Term

(p. 194) Which of the following is a clear performance standard? 
A. Bring about a significant improvement in the morale of all workers.
B. Decrease the number of products rejected due to manufacturing defects by 10% over the next 6 months.
C. Completely eliminate all customer complaints.
D. Make secretaries more efficient.

Definition

B. Decrease the number of products rejected due to manufacturing defects by 10% over the next 6 months.

Term

(p. 193) Two years ago, Travis started his own restaurant supply company, serving the greater Chicago area. Until recently, he has never concerned himself with establishing a formal control system. Now, with a recession looming, he is experiencing cost conscious restaurant owners. He has decided that a formal control system is needed. The first step Travis should take is: 
A. draw up a formal organization chart.
B. talk to his banker to set financial goals.
C. devise a set of clear performance standards.
D. design an accident report form so that he can keep accurate records of all accidents that occur.

Definition

C. devise a set of clear performance standards.

Term

(p. 193) As a middle manager for her firm, Tori just finished comparing the results of a promotional campaign with the outcome expectations. The next step in the control process is: 
A. monitor and record actual performance.
B. set up contingency plans.
C. communicate results and deviations with management and employees involved.
D. establish discipline committees to decide on dismissals.

Definition

C. communicate results and deviations with management and employees involved.

Term

(p. 194) Harper is a sales rep for an eyeglass company. The company is always on the cutting edge of trendy designs. In her job, she frequently relies on the marketing department to provide her with information and materials. When using customer satisfaction to judge the success of their company, Harper's managers should: 
A. ignore Harper's satisfaction, since she is an employee rather than a customer.
B. take Harper's satisfaction into account, because customers can be internal as well as external.
C. consider Harper's satisfaction, but place less emphasis it than on the satisfaction of a stockholder, since she is an external customer.
D. only consider Harper's satisfaction if she has worked in the same job for at least 2 years.

Definition

B. take Harper's satisfaction into account, because customers can be internal as well as external.

Term
(p. 194) When establishing criteria to measure the success of a customer-oriented business, managers should: 
A. limit their attention to financial measures such as profit and return on investment since these are the only objective and quantifiable measures available.
B. focus most of their attention on measures of employee satisfaction, since without good employees the firm will not be competitive.
C. focus primarily on financial measures, but pay some attention to non-financial concerns.
D. recognize that, while financial measures are important and should be considered, the purpose of the firm is to satisfy both internal and external customers.
Definition
D. recognize that, while financial measures are important and should be considered, the purpose of the firm is to satisfy both internal and external customers.
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