CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT
Test Correlation Table              Question Types/Level of Difficulty

   LE...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


      True/False Questions
      Learning Objective 1

1.    Alan Questrom’...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT

      hands-on experience, many of them must develop new skills to cope with...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT

      as the ability to negotiate.

      ANSWER: T, Knowledge, Easy, p. 15
...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


31.   Taking responsibility for your life at work and beyond involves self-...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT

4.   Which of the following is not considered a key managerial competency?
 ...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT

10.   The term ____________refers to the tasks and activities involved in di...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT

      a.   planning
      b.   organizing
      c.   directing
      d.   co...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


20.   GE Capital is divided into four distinct businesses for the purpose o...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


25.   Once managers have defined goals for future performance, they must tr...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


30.   ____________ involves getting others to perform tasks necessary to ac...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


35.   Tonya Forrister is the type of manager who leads a hectic work life f...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


40.   Typical job titles of middle managers include all of the following ex...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


45.   A large electronics manufacturer has recently hired Susan Jenson. Her...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


50.   Typical job titles of top managers include all of the following excep...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT

56.   Which of the following statements is not representative of top managem...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


60.   Juan Amaya's typical business week includes using his own technical e...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


65.   Which of the following is not considered a component of the planning ...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


70.   Cliff Hudson, CEO of Sonic, finds that he must manage his time and de...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


75.   The Whole Foods Market developed its employees’ teamwork competency b...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


80.   A manager understands the nature of national, ethnic, and cultural di...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


85.   Top managers like John Mackey of Whole Foods or Allen Questrom of J.C...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


90.   A serious global awareness mistake made by __________ was to change t...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


95.   Beverly Stevens is willing to make mistakes and accepts responsibilit...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


100   Survey results indicate that MBA students place the highest emphasis ...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT

     planning, organizing, leading, and controlling. Effective management is...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


     a. First-line managers are directly responsible for the production of ...
CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT


     A "do unto others" philosophy is part of the firm's commitment to open...
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  1. 1. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT Test Correlation Table Question Types/Level of Difficulty LEARNING OBJECTIVES Easy Moderate Difficult 1. Define managers and TF 3, 6 1, 2, 4 5, 7 management. MC 4, 5, 7, 10, 12 1, 3, 6 2, 8, 9, 11, 13 ES − 1 − 2. Explain what managers do. TF 9, 13, 15, 19 8, 10, 12, 14, 11, 16, 18 17 MC 24, 30, 32, 40, 15, 17, 18, 20, 14, 16, 19, 21, 41, 50, 53, 54 22, 25, 26, 27, 23, 33, 36, 37, 28, 29, 31, 34, 38, 42, 43, 46, 35, 39, 44, 45, 48, 51, 52, 55, 47, 49, 57, 58, 56, 60 59 ES − 3 2, 4, 5 3. Describe the competencies used TF 21, 26, 33 20, 22, 23, 25, 24, 29, 34 in managerial work and assess 27, 28, 30, 31, your current competency levels. 32 MC 61, 62, 68, 70, 63, 66, 67, 69, 64, 65, 71, 72, 76, 81, 83, 87, 73, 77, 79, 80, 74, 75, 78, 86, 92, 94, 97, 100 82, 84, 85, 88, 89, 91, 95, 102 90, 93, 96, 98, 99, 101 ES − 6, 8 7 1
  2. 2. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT True/False Questions Learning Objective 1 1. Alan Questrom’s primary goal in turning J. C. Penney was to find ways to increase revenues. ANSWER: F, Knowledge, Moderate, p. 4 2. J. C. Penney found that they needed to centralize their purchasing practices as part of their “renewed emphasis on expense control.” ANSWER: T, Knowledge, Moderate, p. 4 3. J. C. Penney actually owns Walgreen’s. ANSWER: F, Knowledge, Easy, p. 4 4. Fortune magazine includes “the ability to attract, develop, and keep talented people” as one of the key factors used to establish its list of Most Admired Companies. ANSWER: T, Knowledge, Moderate, p. 4 5. An organization is any structured group of people working independently to achieve certain goals. ANSWER: F, Application, Difficult, p. 6 6. Most employees do some type of managerial work. ANSWER: F, Knowledge, Easy, p. 7 7. “Managers” is a title given to those in charge of a profit-making enterprise. ANSWER: F, Knowledge, Difficult, p. 7 Learning Objective 2 8. Managerial roles are linked and are played out simultaneously on occasion. ANSWER: T, Knowledge, Moderate, p. 8 9. At the U.S. Postal Service the degree of job specialization is high. ANSWER: T, Knowledge, Easy, p. 9 10. Managers are responsible for setting goals; employees are responsible for achieving them. ANSWER: F, Knowledge, Moderate, p. 9 11. Middle managers are removed from the technical aspects of production work. Lacking 2
  3. 3. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT hands-on experience, many of them must develop new skills to cope with top management’s demands. ANSWER: T, Knowledge, Difficult, p. 13 12. Meg Whitman is the CEO of eBay. As a top manager, Whitman’s primary management task is planning and leading. ANSWER: T, Application, Moderate, p. 14 13. Small businesses typically do not differentiate among levels of management. ANSWER: T, Knowledge, Easy, p. 12 14. A small organization usually has only one level of management—often the founder or the owner or an executive director. ANSWER: T, Knowledge, Moderate, p. 12 15. Managers play a key role in creating the culture and climate that affect both the ethics and the social responsibility of an organization. ANSWER: T, Knowledge, Easy, p. 10 16. The greater emphasis on managing group performance and allocating resources represent the most important differences between first-line and middle managers. ANSWER: T, Knowledge, Difficult, p. 13 17. As middle managers have assumed more authority in recent years, the public relations duties of top managers have decreased. ANSWER: F, Knowledge, Moderate, p. 14 18. Top managers conduct a great deal of their leadership activity with people in organizations other than their own. ANSWER: T, Knowledge, Difficult, p. 14 19. Dee Hock, founder of Visa Card, has found that self-management of ethics, character, and conduct takes up nearly 90 percent of a manager’s time. ANSWER: F, Knowledge, Easy, p. 13 Learning Objective 3 20. In theory, six managerial competencies are essential for effectiveness. In practice, knowing where one competency begins and the other ends is difficult, and some or all need to be relied upon at different times. ANSWER: T, Application, Moderate, p. 14 21. Communication competency includes both formal and informal communication as well 3
  4. 4. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT as the ability to negotiate. ANSWER: T, Knowledge, Easy, p. 15 22. Of the six managerial competencies, strategic action is the most fundamental. ANSWER: F, Knowledge, Moderate, p. 15 23. Formal communication can take place at a more personal level, as during conversation with suppliers and clients. ANSWER: T, Knowledge, Moderate, p. 16 24. The Container Store has been able to cut costs by implementing programs for new employees that minimize the amount of training required. ANSWER: F, Knowledge, Difficult, p. 17 25. “Designing the team” is the first step for any team project and usually is the responsibility of a manager or team leader. ANSWER: T, Knowledge, Moderate, p. 19 26. In a recent study of more than 400 organizations and 80,000 managers, the Gallup organization found that the best managed companies used employee in teams. ANSWER: T, Knowledge, Easy, p. 18 27. When people think of teamwork, they realize the importance of making a distinction between the team members and a team leader. ANSWER: F, Knowledge, Moderate, p. 19 28. At Southwest Airlines, effective teamwork makes it possible for ground crews to turn around a plane at the gate in less than 17 minutes. Except for the pilots, every employee is on the team that accomplishes this goal. ANSWER: F, Knowledge, Moderate, pp. 18–19 29. Among the components of strategic action competency, budgeting and financial management is highly important. ANSWER: F, Knowledge, Difficult, p. 21 30. A manager’s international competency is reflected in cultural knowledge and understanding and an openness and sensitivity to cultural differences. ANSWER: F, Knowledge, Moderate, p. 22 4
  5. 5. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 31. Taking responsibility for your life at work and beyond involves self-management competency. ANSWER: T, Knowledge, Moderate, p. 23 32. Global awareness is different from the understanding of multiple cultures. ANSWER: F, Knowledge, Moderate, p. 22 33. Proctor & Gamble has been highly successful in its standardized global branding strategy that provides maximum name recognition to customers. ANSWER: F, Knowledge, Easy, pp. 23–24 34. For new college graduates, surveys reveal that career development is a much higher priority than building a family. ANSWER: F, Knowledge, Difficult, p. 25 Multiple Choice Questions Preview 1. Which of the following is not one of Allen Questrom's strategies for the J.C. Penney turnaround? a. sold the credit card division b. centralized purchasing c. sold Eckerd drugstores d. refocused product strategies ANSWER: C, Knowledge, Moderate, p. 4 2. What strategic abilities did Vanessa Castagna bring to her job as chief operating officer at J. C. Penney? a. permitted store managers to work with vendors b. successful experience with Sears c. reduction in operating expenses d. previous experience at Kmart ANSWER: C, Knowledge, Difficult, p. 4 Learning Objective 1 Managers and Management 3. A _____________is a combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness. a. manager b. competency c. entrepreneur d. strategy ANSWER: B, Knowledge, Moderate, p. 4 5
  6. 6. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 4. Which of the following is not considered a key managerial competency? a. communication b. teamwork and strategic action c. entrepreurship d. global awareness and self-management ANSWER: C, Knowledge, Easy, p. 5 5. A(n) ______________ has a structure and strives to achieve goals that individuals acting alone could not reach. a. manager b. organization c. competency d. not-for-profit group ANSWER: B, Knowledge, Easy, p. 6 6. All organizations have the same overall goals, but their specific goals are unique. A specific goal at FedEx is ____________. a. serving customers b. diversity training c. on-time package delivery d. profits for shareholders ANSWER: C, Knowledge, Moderate, p. 6 7. A ___________ is a person who plans, organizes, directs, and controls the allocation of human, material, financial, and information resources in pursuit of the organization’s goals. a. organization b. manager c. CEO d. functional officer ANSWER: B, Knowledge, Easy, p. 7 8. Which of the following position(s) is typically not considered a manager? a. CEO b. Chief Information Officer c. computer programmer d. coach ANSWER: C, Knowledge, Difficult, p. 7 9. Which of the following is not one of the duties of Carly Fiorina, CEO at Hewlett- Packard? a. training a new management team b. restructuring HP c. creating a work environment d. implementing a corporate merger ANSWER: A, Knowledge, Difficult, p. 7 6
  7. 7. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 10. The term ____________refers to the tasks and activities involved in directing an organization or one of its units: planning, organizing, leading, and controlling. a. manager b. data processor c. management d. functional coordinator ANSWER: C, Knowledge, Easy, p. 7 11. Which of the following statements is false? a. Functional managers may be the head of a payroll department. b. Functional managers often oversee several general managers. c. Functional managers may be responsible for making sure that payroll checks are issued on time and in the correct amounts. d. General managers may be responsible for a strategic business unit or a division. ANSWER: B, Knowledge, Difficult, p. 8 12. General managers usually have ___________managers reporting to them. a. functional b. country c. top d. type B ANSWER: A, Knowledge, Easy, p. 8 13. One who understands the workings of a business enterprise is aware of the fact that in large organization, managers may be distinguished by the scope of the activities they manage. Therefore, which of the following statements is accurate? a. Functional mangers supervise employee with general skills that may be applied to many roles. b. General Managers supervise employees with specialized skills in a single area. c. General managers may be responsible for the operation of a department, but only if it is very small. d. General managers are responsible for the overall operations of a more complex unit such as a company or division. ANSWER: D, Application, Difficult, p. 8 Learning Objective 2 What Managers Do 14. In what specific sequence do managers perform their managerial functions in order to achieve company goals? a. planning, organizing, leading, controlling b. organizing, leading, controlling, planning c. leading, controlling, planning, organizing d. None of the above because the functions are often performed simultaneously, ANSWER: D, Knowledge, Difficult, p. 8 15. The sale of J.C. Penney's credit card operation to GE Capital is an example of which managerial function? 7
  8. 8. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT a. planning b. organizing c. directing d. controlling ANSWER: A, Application, Moderate, p. 9 16. All of the following are reasons managers plan except: a. establishing an overall direction for the organization’s future. b. identifying and committing the organization’s resources to achieving its goals. c. coordinating human, material, and information resources. d. deciding which tasks must be done to reach those goals. ANSWER: C, Knowledge, Difficult, p. 9 17. In the _________ process managers set standards of performance, measure current performance against those standards, take action to correct any deviations, and adjust the standards if necessary. a. planning b. organizing c. leading d. controlling ANSWER: D, Knowledge, Moderate, p. 10 18. Cliff Hudson wants to speed up Sonic Drive-In's average service time from 350 seconds to Wendy's industry best of 127 seconds. This is an example of the __________ function. a. leading b. planning c. controlling d. organizing ANSWER: C, Application, Moderate, p. 11 19. When Cliff Hudson became CEO of Sonic, he made decisions to eliminate all of the following traditional but unproductive items except: a. non-standardized menus. b. unprofitable breakfast items. c. Frankie Avalon as a spokesman. d. five hamburger sizes. ANSWER: B, Application, Difficult, p. 11 8
  9. 9. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 20. GE Capital is divided into four distinct businesses for the purpose of serving the specialized needs of customers. What managerial function is being employed to achieve this type of clarity? a. planning b. organizing c. leading d. controlling ANSWER: B, Application, Moderate, p. 10 21. When Lois Dimpfel, vice president of IBM Worldwide Olympic Technology Systems, was organizing the team to bring the Salt Lake City Games to millions of TV viewers, she was primarily involved in the _______________ managerial function. a. planning b. controlling c. organizing d. leading ANSWER: D, Application, Difficult, p. 10 22. Cathy Johnson has just moved into a top-level managerial role with Avon products. Which of the following is not part of the planning process she will be engaged in? a. establishing directions for the organization b. identifying the organization's resources to achieve organizational goals c. committing the organization's resources to achieve organizational goals d. structuring relationships among employees that will enable them to carry out management's plans and meet specific goals ANSWER: D, Application, Moderate, p. 12 23. Starbucks attributes its success to the managerial function of ______________, which includes control procedures such as the criteria used to hire people, the type of coffee beans used, and the physical layout of stores. a. planning b. controlling c. directing d. organizing ANSWER: B, Application, Difficult, p. 10 24. The planning function is the dynamic process of making decisions that focuses on ___________. a. future performance b. outsourcing c. past performance d. technical skills ANSWER: A, Knowledge, Easy, p. 9 9
  10. 10. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 25. Once managers have defined goals for future performance, they must translate those relatively abstract desires into reality. The coordination effort to do this represents ____________. a. planning b. controlling c. organizing d. leading ANSWER: C, Knowledge, Moderate, p. 9 26. The _______________ managerial function concerns itself with assigning workers to departments. a. planning b. organizing c. leading d. controlling ANSWER: B, Application, Moderate, p. 9 27. Tim Hodges, a regional vice-president for 7–11 stores, allowed his store managers the freedom to run their operations as though they were separate businesses. By __________ in a new way, he was attempting to better coordinate the company's human and material resources. a. controlling b. staffing c. organizing d. planning ANSWER: C, Application, Moderate, p. 10 28. After management has made plans, created a structure, and hired the right personnel, someone must ____________________ the organization over time. a. control b. evaluate the efficiency of c. lead d. evaluate the effectiveness of ANSWER: C, Knowledge, Moderate, p. 10 29. Lois Dimple, vice president of IBM Worldwide Olympic Technology Systems, knew she needed to plan, organize, and lead simultaneously to complete the task assigned to her. What was Dimple’s responsibility? a. coordinate the summer Olympic games in Atlanta b. coordinate the winter Olympic games in Utah c. coordinate the summer Olympic games in Sydney d. create a system supplying real time Internet coverage of the games ANSWER: B, Knowledge, Moderate, p. 10 10
  11. 11. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 30. ____________ involves getting others to perform tasks necessary to achieve the organization’s goals. a. Leading b. Organizing c. Controlling d. Planning ANSWER: A, Knowledge, Easy, p. 10 31. The process by which a person, group, or organization consciously monitors performance and takes corrective action is referred to as __________. a. planning b. leading c. controlling d. organizing ANSWER: C, Knowledge, Moderate, p. 10 32. Managers are often classified into these major types: a. monitors, leaders, and coordinators b. presidents, vice presidents, and directors c. top managers, middle managers, and first-line managers d. assistants, associates, and executives ANSWER: C, Knowledge, Easy, p. 12 33. Which of the following is not a factor in determining whether a first-line manager will be successful? a. has a strong technical expertise to teach subordinates b. is willing to let subordinates do the work c. plans and schedules work for employees d. has sales or marketing experience before becoming manager ANSWER: D, Knowledge, Difficult, pp. 12–13 34. James Herndon has been working for ExxonMobil for three years. He recently was promoted to production supervisor. Krystina Rios supervises sales associates who go to people's homes and sell insurance. Both positions may be classified as a ___________ manager. a. first-line b. matrix c. high potential d. functional ANSWER: A, Application, Moderate, pp. 12–13 11
  12. 12. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 35. Tonya Forrister is the type of manager who leads a hectic work life full of interruptions. Her job is constantly on the “firing line.” From this description, Tonya would be considered a ___________ manager. a. bureaucratic b. first-line c. task force d. ineffective ANSWER: B, Application, Moderate, pp. 12–13 36. Jason Henderson is a sales manager with Kia Motor Company. Primarily his subordinates see him as a team leader in their project. Jason's position represents a __________. a. component of a matrix organizational design b. distinct division of staff and line positions c. component of a mechanistic organizational design d. first-line manager ANSWER: D, Application, Difficult, pp. 12–13 37. J. W. Morgan is a manager with Tenet Hospital. He has saved the hospital thousands of dollars by implementing a new quality control system for purchasing supplies for all teams in his surgical department. This effort to remain a significant source of innovation is characteristic of ______________ management. a. top b. first-line c. project d. middle ANSWER: B, Application, Difficult, pp. 12–13 38. The most important managerial task performed by first-line managers is usually ______. a. managing multiple departments b. coordinating teams c. scouting for possible take-over targets d. managing individual performance ANSWER: D, Knowledge, Difficult, pp. 12–13 39. Jerry Strahan of Lucky Hot Dogs describes his job as ringmaster. He tries to balance the health department's demands for clean kiosks, vendors' demands for supplies, and his first-line manager's demand for recruiting new employees to staff the company's 25 kiosks in New Orleans. Strahan is considered to be at what level of management? a. top management b. middle management c. first-line management d. intermediate management ANSWER: B, Application, Moderate, p. 13 12
  13. 13. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 40. Typical job titles of middle managers include all of the following except: a. plant manager b. sales manager c. director of finance d. All of the above are considered job titles for middle managers. ANSWER: B, Knowledge, Easy, p. 13 41. Audrey Van Drew at Alcatel USA finds herself translating top management's strategy for increasing sales into tangible quotas for production plant managers. Van Drew would be considered to be at what level of management? a. top management b. middle management c. first-line management d. intermediate management ANSWER: B, Application, Easy, p. 13 42. Norma Jean Lockhart has recently been promoted to a middle manager with Allied Pharmaceutical. She wanted to know what task most middle managers considered important. She found out that the key task was ______________. a. managing individual performance b. coordinating teams c. managing group performance and allocating resources d. representing one's subordinates ANSWER: C, Application, Difficult, p. 13 43. Laura Gonzales is a manager with Safeway. Her responsibilities partially include establishing target dates for products and developing evaluation criteria for performance. These responsibilities are primarily associated with _____________ management. a. first-line b. team c. middle d. top ANSWER: C, Application, Difficult, p. 13 44. Ryan Getty of Smith Bakery is responsible for directing and coordinating the activities of first-line managers. Ryan’s position would best be classified as a ________. a. top manager b. second-line manager c. project leader d. middle manager ANSWER: D, Application, Moderate, p. 13 13
  14. 14. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 45. A large electronics manufacturer has recently hired Susan Jenson. Her responsibilities include motivating and disciplining project leaders, keeping track of performance and providing feedback, and improving communications and productivity of the various projects. These responsibilities are closely affiliated with ____________ management. a. project b. first-line c. middle d. top ANSWER: C, Application, Moderate, p. 13 46. Which of the following is a middle manager not likely to do? a. establish target dates for product completion b. set performance standards c. coordinate her activities with other middle managers d. encourage first-line managers to voice their concerns directly to top management ANSWER: D, Knowledge, Difficult, p. 13 47. Marie Runyon's promotion to manager of La Madeleine Bakery & Café has been met with 70-hour workweeks starting at 3 a.m. She must meet a profit target by using company mandated sales strategies. What type of manager is Runyon? a. first line b. middle c. top d. matrix ANSWER: B, Application, Moderate, p. 13 48. Jackie Deaver is attempting to establish target dates for her division. Further, she has been involved in developing evaluation criteria for the performance of her employees and supervisors. She is a little overwhelmed with deciding which projects should be given money, personnel, and materials. Jackie would most likely be classified as a ___________ manager. a. first-line b. hands-on c. middle d. strategic ANSWER: C, Application, Difficult, p. 13 49. Camillo Silva is responsible for translating top management policies into specific goals. Camillo's position would best be classified as a __________. a. first-line employee b. section coordinator c. tactical supervisor d. middle manager ANSWER: D, Application, Moderate, p. 13 14
  15. 15. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 50. Typical job titles of top managers include all of the following except: a. chairman. b. division president. c. chief executive officer. d. All of the above are considered job titles for top managers. ANSWER: D, Knowledge, Easy, p. 13 51. Ray Anderson, founder and CEO of Interface, retired and selected a successor who has pledged to continue a strong commitment to environmentalism. Anderson was the top manager of a billion-dollar-a-year company offering what product? a. plumbing supplies b. petroleum products c. Internet retailing d. floor covering ANSWER: D, Knowledge, Difficult, p. 14 52. Top managers spend most of their day (over 75 percent) planning and leading. They spend most of their leading time _________. a. entertaining socially after work b. directly involved with employee tasks c. working with key people outside their own organization d. controlling middle management decisions ANSWER: C, Knowledge, Difficult, p. 14 53. Setting the overall direction of an organization is the responsibility of: a. top managers. b. middle managers. c. first-line managers. d. task forces. ANSWER: A, Knowledge, Easy, p. 13 54. Dee Hock tells his managers at Visa Card to invest at least 40 percent of their time in improving self-management of their own ethics, character, and conduct. Dee operates at the __________ level. a. top management b. functional c. middle-level marketing d. production management ANSWER: A, Application, Easy, p. 14 55. Top managers _ ________. a. supervise employees with specialized skills that are applied in narrow areas b. are responsible for the operation of an entire department c. are responsible for the day-to-day operations of a division d. are responsible for the overall direction and operations of an organization ANSWER: D, Knowledge, Difficult, pp. 13–14 15
  16. 16. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 56. Which of the following statements is not representative of top management? a. Top management determines the amount of earnings that the corporation will report. b. Top management is responsible for the overall operations of the organization. c. Top management spends much time talking with other top managers in the company. d. Top management often represents the organization in community affairs. ANSWER: A, Knowledge, Difficult, pp. 13–14 57. Heather Jenkins feels great pressure and demands in her job at Citicorp. Her typical day involves disposing of thirty-six pieces of mail, handling five telephone calls per hour, and going to eight meetings each day. Jenkins is most likely experiencing the challenges felt by ________________. a. all employees b. top managers c. first-line managers d. leaders of self-managed teams ANSWER: B, Application, Moderate, pp. 13–14 58. Albert Stroucken, president of H.B. Fuller, was recently a target of questions from the Federal Drug Administration (FDA) and the media after tests revealed that children in Central America sniff Resistol, a glue used for making H.B. Fuller shoes. The children sniff the glue because it provides a temporary euphoria that relieves hunger and hopelessness in their homes in Honduras and Guatemala. The FDA has charged that the glue’s fumes can cause brain damage. What managerial position does Stroucken most likely hold? a. public relations director b. top manager c. middle manager d. first-line manager ANSWER: B, Application, Moderate, p. 14 59. Angela Duke seems to spend days and nights working for General Electric. It seems that one night she may spend working late at the office and the next night entertaining business associates. Even when she goes home, Angela uses her study as a branch office. She is most likely fulfilling the role of . a. staff management b. top management c. middle management d. board of director member ANSWER: B, Application, Moderate, p. 14 16
  17. 17. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 60. Juan Amaya's typical business week includes using his own technical expertise in metal framing buildings, keeping good rapport with the community, knowing union and non- union hiring practices, supervising work crews, and monitoring the financial matters of his company. Amaya is what type of manager? a. first-line manager b. middle manager c. top manager d. a business owner who does all levels of managing ANSWER: D, Application, Difficult, p. 13 Learning Objective 3 Managerial Competencies 61. It takes all of the following managerial competencies to be a great manager except: a. global awareness. b. communication. c. technical expertise. d. teamwork. ANSWER: C, Knowledge, Easy, p. 14 62. Communication competency is essential to effective managerial performance. Which of the following activities do not require this competency? a. meeting face-to-face with customers b. negotiating via teleconferencing c. being aware of body language during a meeting d. all of the above require the communication competency ANSWER: D, Application, Easy, p. 15 63. Helene Perlman negotiates effectively on behalf of a team over roles and resources, is skilled at developing relationships and exercising influence upward with superiors, and takes decisive and fair actions when handling problem subordinates. Helene is engaged in ___________communication. a. negotiation b. informal c. formal d. planning ANSWER: A. Application, Moderate, p. 18 64. Which of the following is true concerning informal communication? a. In China, building a social network is known as guanxi. b. In Korea, a social network is known as kwankye. c. Informal communication is often times delivered spontaneously. d. All of the following are true concerning informal communication. ANSWER: D, Knowledge, Difficult, p. 16 17
  18. 18. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 65. Which of the following is not considered a component of the planning and administration competency? a. time management b. information gathering, analysis, and problem solving c. budgeting and financial management d. negotiation ANSWER: D, Knowledge, Difficult, p. 17 66. A manager monitors information and uses it to identify symptoms, underlying problems, and alternative solutions. What competency is the manager demonstrating? a. communication b. planning and administration c. teamwork d. strategic action ANSWER: B, Application, Moderate, p. 19 67. Communication competency is featured in the Container Store's "do-unto-others" philosophy in all of the following except: a. formal training for all employees b. management commitment to sharing information c. specialized information technology systems d. sales and presentation skills ANSWER: C, Application, Moderate. p. 17 68. Employees at __________ are encouraged to treat customers like they would treat visitors in their own homes. a. The Container Store 1. Sonic 2. J. C. Penney 3. Whole Foods Market ANSWER: A, Knowledge, Easy, p. 17 69. Cliff Hudson, CEO of Sonic, believes his day “comes down to a series of choices.” How does Hudson handle his typical day as a CEO? a. He allocates time spent on certain tasks. b. He manages his time and delegates effectively. c. He discusses resource allocation and agrees to completion dates. d. All of the above. ANSWER: D, Application, Moderate, pp. 17–18 18
  19. 19. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 70. Cliff Hudson, CEO of Sonic, finds that he must manage his time and delegate effectively because there are more daily problems and opportunities than he can possibly attend to. This is part of the __________. a. teamwork competency b. communication competency c. planning and administration competency d. personnel management competency ANSWER: C, Knowledge, Easy, p. 18 71. Latisha Phillips handles several issues and projects at one time but doesn’t spread herself to thin, monitors and keeps to a schedule or changes the schedule if needed, and works effectively under time pressure. What dimension of the planning and administration competency characterizes her work? a. information gathering and analysis b. time management c. planning and organizing projects d. budgeting and financial management ANSWER: B, Application, Difficult, p. 19 72. The view of successful teamwork includes all of the following except: a. a competency that involves taking the lead at times. b. supporting others who are taking the lead at other times. c. collaborating with others in the organization on projects that do not even have a designated team leader. d. setting the strategic goals for the team. ANSWER: D, Knowledge, Difficult, p. 19 73. A manager brings conflict and dissent into the open and uses it to enhance the quality of decision, while at the same time facilitating cooperative behavior and keeping the group moving toward its goals. What competency is the manager demonstrating? a. communication b. planning and administration c. teamwork d. strategic action ANSWER: C, Knowledge, Moderate, p. 21 74. Which of the following is false concerning the teamwork competency? a. There should be a distinction between the team members and the team leader. b. Designing a team is the first step for any team project. c. Managers need to pay attention to team dynamics. d. Teams that perform well have leaders who act as a coach, counselor, and mentor to other team members. ANSWER: A, Knowledge, Difficult, pp. 18–21 19
  20. 20. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 75. The Whole Foods Market developed its employees’ teamwork competency by organizing its stores into self-managed teams. All of the following are positively effected by an emphasis on teamwork except: a. accountability. b. labor union relations. c. "no secrets" management philosophy. d. all of the above ANSWER: B, Knowledge, Difficult, p. 20 76. The culture at Whole Foods Market is based on __________. a. knowledge workers b. communication competency c. decentralized teamwork d. time management ANSWER: C, Knowledge, Easy, p. 20 77. A manager quickly recognizes when changes in the industry create significant threats and opportunities. What competency is the manager demonstrating? a. strategic action b. planning and administration c. teamwork d. communication ANSWER: A, Application, Moderate, p. 22 78. Pierre Rousseau recognizes the management challenges of alternative strategies and addresses them. What dimension of strategic action competency describes Rousseau? a. understanding the organization b. taking strategic action c. understanding the industry d. prioritizing skill ANSWER: B, Application, Difficult, p. 22 79. Global awareness requires that you have an open attitude and sensitivity to cultures different from yours. Which of the following is true concerning this competency? 79. a. A country’s culture seldom affects behavior. b. Very few American companies have global markets for their services and products. c. You must recognize that culture makes a difference in how people think and act. d. Your own culture rarely determines your basic values. ANSWER: C, Knowledge, Moderate, p. 23 20
  21. 21. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 80. A manager understands the nature of national, ethnic, and cultural differences represented on the task force she organized. What managerial competency is the manager demonstrating? a. communication b. global awareness c. self-management d. planning and administration ANSWER: B, Application, Moderate, pp. 22–24 81. Carrying out an organization’s managerial work by drawing on the human, financial, and material resources from multiple countries and serving markets that span multiple countries requires what managerial competency? a. strategic action competency b. self-management competency c. global awareness competency d. communication competency ANSWER: C, Knowledge, Easy, p. 22 82. Dustin Ross travels abroad several times a year and is aware of cultural cues and is able to adapt quickly in novel situations. He oftentimes has to adjust his own behavior when interacting with people from various national, ethnic, and cultural backgrounds. What dimension of the global awareness competency is Dusty practicing? a. cultural knowledge b. cultural openness and sensitivity c. global management d. cultural understanding ANSWER: B, Application, Moderate, p. 23 83. Understanding the organization's overall mission and ensuring that employees' actions are in alignment defines the __________ competency. a. communication b. teamwork c. strategic action d. self-management ANSWER: C, Knowledge, Easy, p. 20 84. Strategic action competency includes all of the following except: a. understanding the organization. b. balancing work and life issues. c. anticipation of competitive trends. d. understanding the industry. ANSWER: B, Knowledge, Moderate, pp. 20–21 21
  22. 22. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 85. Top managers like John Mackey of Whole Foods or Allen Questrom of J.C. Penney's must perceive changes in the organizational environment and apply which management competency? a. global awareness b. communication c. strategic action d. all of the above ANSWER: D, Application, Moderate, p. 21 86. Recognizing new talent, establishing specialized markets, and acquiring competitors are interrelated strategic management actions of Susan Kennedy, president of __________. a. Penguin Putnam, Inc. b. Fawcett Books c. Hallmark d. John Deere ANSWER: A, Knowledge, Difficult, p. 21 87. Global awareness competency requires __________. a. a reasonable amount of travel b. classes or instruction c. cultural openness d. all of the above ANSWER: C, Knowledge, Easy, p. 22 88. Howard Schultz, CEO of Starbucks, was concerned about cultural acceptance of the company in France due to which aspect of his product? a. resistance to American products b. styrofoam cups c. lack of a food menu d. insensitive marketing approach ANSWER: B, Knowledge, Moderate, p. 22 89. Which of the following is essential in order to work with people from other backgrounds? a. appropriate language b. negotiation skills c. social etiquette d. openness and sensitivity ANSWER: D, Knowledge, Difficult, p. 23 22
  23. 23. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 90. A serious global awareness mistake made by __________ was to change the name of their product in Germany to the more common global name. Local customers no longer recognized a product that had previously been familiar, resulting in lost sales volume. a. Proctor & Gamble b. Philip Morris c. Mitsubishi d. Nestlé ANSWER: A, Knowledge, Moderate, p. 23 91. Billy Durant has been assigned to a potentially large volume seasonal rental customer who brings a crew from Mexico every year. The reason previous salesmen have failed to get the order is most likely related to __________. a. integrity and ethical conduct b. understanding the industry c. lack of strategic planning d. cultural knowledge & understanding ANSWER: D, Application, Difficult, p. 22 92. For Proctor & Gamble, Tide is considered all of the following except: a. a store brand. b. a global brand. c. a core brand. d. a billion-dollar product. ANSWER: A, Knowledge, Easy, p. 23 93. Which of the following activities did the CEO of Proctor & Gamble find to be a big waste of time for the improvement of their market share in Europe? a. managers spending a lot of time with store personnel b. chatting with retail customers c. designing the next billion-dollar product d. looking for labeling problems on products ANSWER: C, Knowledge, Moderate, p. 23 94. Self-management competency includes all of the following except: a. integrity and ethical conduct. b. personal drive and resilience. c. balancing work and life demands. d. Self-management competency includes all of the above. ANSWER: D, Knowledge, Easy, p. 24 23
  24. 24. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 95. Beverly Stevens is willing to make mistakes and accepts responsibility for her own actions. What dimension of the self-management competency is Stevens exhibiting by her behavior? a. integrity and ethical conduct b. personal drive and resilience c. balancing work d. balancing life issues ANSWER: A, Application, Difficult, p. 26 96. A manager is willing to continually unlearn and relearn as changed situations call for new skills and perspectives. What managerial competency is the manager demonstrating? a. communication b. teamwork c. self-management d. strategic action ANSWER: C, Knowledge, Moderate, pp. 24–25 97. __________ competency involves personal integrity, resilience, and development. a. Teamwork b. Self-management c. Planning and administration d. Leadership ANSWER: B, Knowledge, Easy, p. 24 98. Current polling data indicates that the qualities employers are the least concerned with in hiring young employees are: a. technical skills. b. self-management. c. integrity. d. personality. ANSWER: A, Knowledge, Moderate, pp. 24–25 99. Jeff Bezos founded Amazon.com with a loan from his parents. Banks and venture capital firms would not loan to an internet startup company. Bezos is an example of the __________ required to face setbacks and risk failure in a new business. a. integrity and interest in the job b. balance of work and life demands c. strategic action d. personal drive and resilience ANSWER: D, Knowledge, Moderate, p. 25 24
  25. 25. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT 100 Survey results indicate that MBA students place the highest emphasis on balancing . work and life issues in the area of: a. information overload b. building a family c. diet and exercise d. All of the above have substantial impact. ANSWER: B, Knowledge, Easy, p. 25 101 Employees who fail to take advantage of development and training opportunities offered . by the organization are considered derailed. The most common reasons for derailment are all of the following except: a. problems with interpersonal relationships b. inability to lead a team c. inability to learn, develop, and adapt d. having too broad of a functional perspective ANSWER: D, Knowledge, Moderate, p. 25 102 In a competitive and highly dynamic work environment, the most difficult management . challenge is predicted to be __________. a. task related learning b. teamwork competency c. balancing work and life issues d. maintaining integrity and ethics ANSWER: C, Knowledge, Difficult, p. 25 Essay Questions Learning Objective 1 1. Define managers and management. Managers establish organizational goals and then direct the work of subordinates, on whom they depend to achieve those goals. Managers acquire and allocate the human and material resources without which organizations couldn’t exist. Effective management is essential to the success of an organization. A manager is a person who plans, organizes, directs, and controls the allocation of human, material, financial, and information resources in pursuit of the organization’s goals. The many different types of managers include department managers, product managers, account managers, plant managers, division managers, district managers, and task force managers. What they all have in common is responsibility for the efforts of a group of people who share a goal and access to resources that the group can use in pursuing its goal. Managers establish organizational goals and then direct the work of subordinates, whom they depend on to achieve those goals. Managers acquire and allocate the human and material resources without which organizations couldn’t exist. Managers are evaluated on how well the people they direct do their jobs. Management refers to the tasks or activities involved in managing an organization: 25
  26. 26. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT planning, organizing, leading, and controlling. Effective management is essential to the success of an organization. Moderate, pp. 7–8 Learning Objective 2 2. Who is Cliff Hudson? Describe how he uses the general managerial functions in his planning and administration competency as CEO of Sonic. Cliff Hudson has instituted sweeping changes in the 2,400 restaurant chain, bringing them back to healthy profitability and impressive growth. When he arrived in 1995 the company had been mismanaged. Both the physical and financial condition were in serious disarray. Hudson exhibited the leading function in the decisions to close more than 300 locations. He has also made important changes in the contracts and business relationships with franchisees who actually own and operate the drive-in locations. The control function is focal in decisions that reduce operating expenses. Centralized purchasing and concessions from food suppliers were combined with standardization of menus throughout the chain in order to create consistency of quality, low costs, and enhanced profit margins. Methods to increase the speed of processing orders and serving customers are constantly being pursued. Control is also involved in the deployment of point-of-sale terminals that can track trends and opportunities, such as the popularity of sundaes in specific markets. The organizing function is involved in marketing and advertising work that resulted in the creation of national advertising campaigns and dropping Frankie Avalon as a spokesman due to loss of recognizability to younger generations. Examples of the planning function are the analysis of marketing data to discover customer tastes, and goals to increase the volume of breakfast item sales. The decision to keep the company's signature carhops is also an aspect of the planning function. Difficult, p. 11 3. What functions do managers usually perform today? What sets managers apart? a. Managers are individuals that allocate human and material resources and direct the operations of a department or an entire organization. b. Managers achieve an organization's or department's goals for the most part by arranging for others to do things, not by performing all the tasks themselves. c. Managers are involved in planning, organizing, leading, and controlling the people working in an organization to achieve the organization's goals. d. Goals give direction to the tasks and activities undertaken. e. Managers are set apart on how well others do their jobs. Moderate, pp. 8–10 4. How might you differentiate between the three levels of management? Give an example of each. 26
  27. 27. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT a. First-line managers are directly responsible for the production of goods or services. They may be called sales managers, section chiefs, or production supervisors, depending on the organization. Employees who report to them do the organization's basic production work. This level of management is the link between the production or operations of each department and the rest of the organization. b. Middle managers focus on coordinating employee activities, determining which products or services to provide, and deciding how to market these products or services to customers. Middle managers receive specific goals and plans for first-line managers to implement. Middle managers typically have titles such as department head, plant manager, and director of finance. c. Top managers are responsible for the overall direction and operations of an organization. Typical titles of top managers are chief executive officer, president, chairman, division president, and executive vice president. Top managers set goals that are handed down through the hierarchy, eventually reaching each worker. Difficult, pp. 12–14 5. Describe three of the managerial functions and an example of each. a. Planning involves defining organizational goals and proposing ways to reach them. Managers plan for three reasons: (1) to establish an overall direction for the organization's future, such as increased profit, expanded market share, and social responsibility; (2) to identify and commit the organization's resources to achieving its goals; and (3) to decide which activities are necessary to do so. b. Organizing is the process of creating a structure of relationships that will enable employees to carry out management's plans and meet its goals. By organizing effectively, managers can better coordinate human and material resources. An organization's success depends largely on management's ability to utilize those resources efficiently and effectively. c. Leading involves communicating with and motivating others to perform the tasks necessary to achieve the organization's goals. This process is called directing or influencing. d. Controlling is the process by which a person, group, or organization consciously monitors performance and takes corrective action. In the control process, managers set standards of performance, measure current performance against those standards, take action to correct any deviations, and adjust the standards if necessary. Difficult, pp. 8–10 Learning Objective 3 6. What are some of the ways that the Container Store applies the communication competency to getting the best out of its employees? The Container Store starts with 235 hours of formalized training for new hires. Individual store managers continue this training culture with an open communication environment that features new product sales and display training, a teamwork focus, and incentives specifically tied to goal achievement. "Super sales trainers" are top performers who serve the stores, selected from employees who have shown strong leadership and communication skills. 27
  28. 28. CHAPTER 1: MANAGING IN A DYNAMIC ENVIRONMENT A "do unto others" philosophy is part of the firm's commitment to open communication throughout the organization. Management is sensitive to the needs of a large percentage of its workforce that are minorities and women. These demographics are reflected in the customer clientele which is substantially female. All employees are encouraged to treat customers like they would treat visitors in their homes. Workers are included in regular discussions of company goals, individual store sales performance, and plans for expansion. Moderate, p. 17 7. Describe four of the six managerial competencies. a. Communication Competency includes informal communication, formal communication, and negotiation. b. Planning and Administration Competency includes information gathering, analysis, and problem solving, as well as planning and organizing projects. Time management and budgeting and financial management are also included. c. Teamwork Competency includes designing teams, creating a supporting environment, and managing team dynamics. d. Strategic Action Competency includes understanding the industry and the organization and taking strategic actions. e. Global Awareness Competency includes cultural knowledge and understanding and cultural openness and sensitivity. f. Self-Management Competency includes integrity and ethical conduct, personal drive and resilience, balancing work and life issues, and self awareness and development. Difficult, pp. 15–25 8. Many college instructors assign team projects because employers indicate the desire to hire graduates who know how to work in teams to perform their jobs. What are some of the teamwork competencies that are being developed when working as student teams? a. The ability to take the lead and work as a team leader when needed, as well as the willingness to support a team leader when others have taken the lead. b. Self-direction of teams involves the formulation of goals, defining of tasks to be accomplished, and assigning those tasks to group members according to their interests and abilities. c. Learning how to create a supportive environment, as well as dealing with conflicts, disappointments, and frustration. d. Learning how to get the best out of team members, balancing the contributions of the more forceful members with those who are more reserved. Moderate, pp. 18–20 28

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