Student name:__________

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Organizations are efficient when managers maximize the amount of input resources.
⊚ true
⊚ false

2) Managers at all levels and in all departments are responsible for planning, organizing,
leading, and controlling.
⊚ true
⊚ false

3) The outcome of organizing is the creation of a strategy.

⊚ true
⊚ false

4) An organization's vision is a short, succinct, and inspiring statement of what the organization
intends to become and the goals it is seeking to achieve.
⊚ true
⊚ false

5) Top managers are responsible for the performance of a specific department.

⊚ true
⊚ false

6) Today, the term "chief operating officer" refers to the chief executive officer.
⊚ true
⊚ false

7) Conceptual skills include the general ability to understand, alter, lead, and control the
behavior of other individuals and groups.
⊚ true
⊚ false

8) Arien is an exceptional manager in that she is able to create cohesive teams from a diverse
group of people. Arien demonstrates good human skills.
⊚ true
⊚ false
9) Individuals who believe that they are responsible for what happens to them and that their
own actions determine important outcomes are said to have an external locus of control.
⊚ true
⊚ false

10) A person who works for a company and works to create new or improved products for that
company is an example of an intrapreneur.
⊚ true
⊚ false

11) Robert and Liam possess the same kinds of technical skills; typically they would become
members of a specific department.
⊚ true
⊚ false

12) Innovation takes place when management centralizes control of work activities and creates
an organizational culture that eliminates risk taking.
⊚ true
⊚ false

13) Organizations appoint turnaround CEOs after the organizations become more efficient and
effective.
⊚ true
⊚ false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
14) An organization's resources include which of these assets?
A) competitors
B) loyal customers and employees
C) ethical codes
D) performance goals
15) Which definition of organizational performance is most accurate?
A) It is the process of obtaining, analyzing, and recording information about the relative
worth of a product in the current marketplace.
B) It is a measure of how efficiently and effectively managers use available resources to
satisfy customers and achieve organizational goals.
C) It is an approach to modeling organizations based on the value-adding activities of the
competing organizations.
D) It is a measure of the interaction among the employee culture, the managerial culture,
and the culture of competitors.

16) A measure of how productively resources are used to achieve a goal is known as
A) efficiency.
B) effectiveness.
C) authenticity.
D) legitimacy.

17) Roughly 90 percent of the turns made by UPS drivers are right turns. This saves them time
waiting for traffic and improves
A) efficiency.
B) effectiveness.
C) authenticity.
D) legitimacy.

18) What is the definition of managerial efficiency?

A) achieving goals regardless of resource use
B) increasing the time needed to produce a given output of goods
C) increasing production through greater resource investment
D) minimizing the amount of input resources needed

19) A measure of the appropriateness of the goals that managers have selected for the
organization to pursue and the degree to which the organization achieves those goals is
A) efficacy.
B) resourcefulness.
C) proficiency.
D) effectiveness.
20) Which statement about effectiveness is true?
A) Organizational performance increases in direct proportion to an increase in
effectiveness.
B) It is a measure of how productively resources are used to achieve a goal.
C) Organizations are effective when managers minimize the amount of input resources.
D) Effectiveness is related to performance but not efficiency.

21) A company’s upper management has communicated to its middle managers that they need to
focus more on effectiveness. This means that the organization
A) uses fewer workers while maintaining productivity.
B) takes less time than before to produce a given output.
C) sets appropriate goals and achieves them.
D) generates employment for a large number of people.

22) Low efficiency/high effectiveness situations arise when managers choose the
A) wrong goals to pursue and make poor use of resources to achieve these goals.
B) right goals to pursue but do a poor job of using resources to achieve these goals.
C) right goals to pursue and make good use of resources to achieve these goals.
D) wrong goals to pursue and make good use of resources to achieve these goals.

23) High efficiency/high effectiveness situations result in a

A) high-quality product that customers do not want.
B) high-quality product that few customers can afford.
C) product that customers want at a quality and price they can afford.
D) product of mediocre quality that customers will buy despite its high price.

24) Low efficiency/low effectiveness situations result in a

A) product that customers want but is too expensive to buy.
B) product customers want at a price they can afford.
C) low-quality product that customers do not want.
D) high-quality product that customers do not want.

25) Carson’s Toys produced beautifully made wooden trains that many customers wanted.
However, the product was so expensive that most potential customers could not afford it.
This scenario demonstrates
A) low efficiency and low effectiveness.
B) high efficiency and low effectiveness.
C) low efficiency and high effectiveness.
D) high efficiency and high effectiveness.
26) A jewelry company produces reliable, attractive watches that are reasonably priced. This
scenario demonstrates
A) low efficiency and low effectiveness.
B) high efficiency and low effectiveness.
C) low efficiency and high effectiveness.
D) high efficiency and high effectiveness.

27) Which characteristics describe organizational performance that results in a low-quality

product that customers do not want?
A) low efficiency and low effectiveness
B) high efficiency and low effectiveness
C) low efficiency and high effectiveness
D) high efficiency and high effectiveness

28) Which characteristics describe organizational performance that results in a high-quality

product that customers do not want?
A) low efficiency and low effectiveness
B) high efficiency and low effectiveness
C) low efficiency and high effectiveness
D) high efficiency and high effectiveness

29) A company has low efficiency and low effectiveness. Considering this, which statement
applies?
A) The company produces easy-to-use copy machines, thus increasing demand for them,
but uses cheap resources that often make them break down.
B) The company produces easy-to-use copy machines, thus increasing demand for them,
and uses quality resources that make them durable.
C) The company produces copy machines that are complicated to use, thus lowering
demand for them, and uses cheap resources that often make them break down.
D) The company produces copy machines that are complicated to use, thus lowering
demand for them, but uses quality resources that make them durable.

30) You own a company that produces jewelry with attractive, popular designs but uses resources
that make the product too expensive for most potential buyers. Which would you be most
likely to do to increase efficiency?
A) arrange a deal with the supplier to lower the cost of the resources
B) make sure the resources are used to make the designs even more popular
C) fire the jewelry designers and replace them with less artistic ones
D) make the jewelry less attractive, but still use the same high-quality resources
31) Albert is a middle manager at a large company. As such, he is MOST responsible for
A) planning and organizing resources other than human resources.
B) planning, organizing, and leading resources as well as controlling them.
C) planning and organizing resources but not leading and controlling them.
D) leading and controlling resources but not planning and organizing them.

32) In what order do managers typically perform the managerial tasks?

A) organizing, planning, controlling, leading
B) organizing, leading, planning, controlling
C) planning, organizing, leading, controlling
D) planning, organizing, controlling, leading

33) Which manager has achieved the objectives of the essential managerial task of organizing?
A) Tim, who has chosen appropriate organizational goals
B) Veronica, who has set task and authority relationships that allow people to work
together
C) Elena, who has determined courses of action to achieve organizational goals
D) Yuuki, who has established systems to evaluate goal achievement

34) What must one do to perform the essential managerial task of controlling to achieve
organizational goals?
A) Articulate a clear organizational vision for the organization’s members to accomplish
by a specified deadline.
B) Organize people into departments according to the kinds of job-specific tasks they
perform.
C) Identify and select appropriate organizational goals and courses of action.
D) Establish accurate measuring and monitoring systems to evaluate how well goals
have been achieved.

35) Which tasks describe the essential managerial task of leading in achieving organizational
goals?
A) motivate, coordinate, and energize individuals and groups
B) evaluate how well the organization has achieved its goals and communicate to direct
reports
C) choose appropriate goals and courses of action
D) establish task and authority relationships to allow people to work together
36) The essential managerial task of planning involves
A) establishing task and authority relationships so that people work together.
B) motivating individuals and groups to work together.
C) choosing appropriate goals and courses of action.
D) evaluating how well the organization has achieved its goals.

37) Latosha decided that her company should expand its markets in South America and laid out a
seven-step procedure to accomplish this. Which task is Latosha performing?
A) planning
B) organizing
C) leading
D) controlling

38) How to allocate organizational resources to pursue the strategies to attain set goals is a
question addressed during the ________ management task.
A) regulating
B) planning
C) leading
D) controlling

39) Which of the four principal managerial tasks can help Racine understand their performance
in the other three tasks?
A) planning
B) organizing
C) controlling
D) leading

40) The formal system of task and reporting relationships that coordinates and motivates
organizational members so they work together to achieve organizational goals is called
organizational
A) structure.
B) performance.
C) goals.
D) resources.
41) Organizational structure is the formal system of
A) financial analysis and management.
B) task and reporting relationships.
C) vision creation and articulation.
D) goal selection and implementation.

42) Which term refers to a cluster of decisions concerning what organizational goals to pursue,
what actions to take, and how to use resources to achieve these goals?
A) strategy
B) assessment
C) collaboration
D) deputation

43) In order to ensure that it has a competitive advantage, Housing Developers decides to acquire
a smaller company in the same industry. The move is an example of a
A) vision.
B) business model.
C) strategy.
D) mission.

44) A manufacturing company has ten middle managers. They report to two vice presidents who
report to the CEO. What does this example show?
A) differentiation structure
B) organizational structure
C) organizational strategy
D) differentiation strategy

45) If a management team wants to devise an effective business strategy, which course of action
would it most likely take?
A) write an inspiring statement about the company's goals
B) assign a team leader to manage the process
C) decide how to achieve the company's goals
D) pass out a survey to determine how well the company has achieved its goals

46) Which company is involved in the task of controlling?

A) Avion Flights monitors its services for quality and efficiency.
B) MMS Ltd. puts on a motivational seminar for its employees.
C) Harve Peel, Incorporated, creates a new position that reports directly to the CEO.
D) Watermelon Farms makes the decision to increase its marketing ventures.
47) The strategy of delivering new, exciting, and unique products to the customers is a ________
task.
A) leading
B) planning
C) controlling
D) organizing

48) The process of structuring working relationships so that organizational members interact and
cooperate to achieve organizational goals is known as
A) planning.
B) leading.
C) controlling.
D) organizing.

49) A regional food service company has four middle managers, one for each state it services.
These managers supervise multiple customer-facing service providers. Which management
task is demonstrated?
A) organizing
B) leading
C) controlling
D) planning

50) A formal system of reporting relationships that coordinates and motivates organizational
members so that they work together to achieve organizational goals is called an
organizational
A) culture.
B) structure.
C) assimilation.
D) chart.

51) A short, succinct, and inspiring statement of what the organization intends to become is an
organization's
A) goal.
B) strategy.
C) vision.
D) mission.
52) At the annual company meeting, the CEO took the stage to communicate the company’s
vision and to motivate the employees to work toward the company’s goals and objectives.
Which management task was the CEO demonstrating?
A) planning
B) organizing
C) controlling
D) leading

53) Which of the managerial tasks involves managers using their power, personality, influence,
persuasion, and communication skills to coordinate people and groups so that their activities
and efforts are in harmony?
A) leading
B) planning
C) organizing
D) controlling

54) What is a key responsibility of a leader?

A) evaluating how well they themselves are performing in leading the organization
B) encouraging employees to perform at a high level to help the organization achieve its
goals
C) evaluating an organization's success in reaching its goals and taking corrective actions
D) deciding which goals to measure and then designing control systems for them

55) Javel has been given the task of evaluating how well his company, Soft Shoes, Incorporated,
has implemented its new marketing plan and how this implementation could be improved.
Which management task has Javel been assigned?
A) planning
B) organizing
C) leading
D) controlling

56) Which management task gives managers the ability to measure performance accurately and
regulate organizational efficiency and effectiveness?
A) controlling
B) planning
C) organizing
D) leading
57) Maura, a manager at Beef Shack, monitors the performance of workers in her department to
determine if the quality of their work is meeting the standards of the company. Maura is
engaging in which managerial task?
A) planning
B) organizing
C) leading
D) controlling

58) Selena, a CEO, reviews the past month's profit and loss statement to determine if the
company is on pace to meet the planned sales and profitability goals. Selena is engaged in
which managerial task?
A) planning
B) organizing
C) controlling
D) leading

59) Although Roger’s company has many skilled, bright employees, they seem to lack
enthusiasm for their work. What is the best strategy for Roger to solve this problem?
A) hire a pleasant manager who has achieved great results by restructuring companies
like Roger’s
B) hire a pleasant manager who is knowledgeable in the latest methods of monitoring
and evaluating companies like Roger’s
C) hire a charismatic manager who has excellent organizational skills and can efficiently
achieve goals
D) hire a charismatic manager who strongly believes in the company and knows how to
convey this belief to others

60) Which statement best describes first-line managers?

A) They are also known as supervisors.
B) They are at the middle of the managerial hierarchy.
C) They work mainly in the sales department of an organization.
D) They have cross-departmental responsibility.

61) What is true of middle managers?

A) They decide how the different departments should interact.
B) They are responsible for daily supervision of the nonmanagerial employees.
C) They develop skills and know-how so that the organization is efficient and effective.
D) They are responsible for the performance of all departments.
62) What is true of top managers?
A) They supervise nonmanagerial employees.
B) They help first-line managers better use resources.
C) They have cross-departmental responsibility.
D) They are responsible for a single department.

63) Who is most likely to be a part of the top management team?

A) supervisor
B) head nurse
C) chief executive officer
D) divisional manager

64) Being a part of top management at a large fast food chain, Alfonso is most likely to spend
most of his time
A) planning and organizing resources.
B) planning and controlling nonmanagerial employees.
C) organizing and leading first-line managers.
D) organizing resources and leading first-line managers.

65) Thomas and Chlorinda are middle managers. Considering this, which task would they most
likely do?
A) organize a training program that improves the skills of employees
B) make sure employees are filling out time cards correctly
C) arrange a deal with a foreign supplier of magnesium
D) study a report that analyzes how well departments are interacting

66) Helen was hired as a business consultant for a company that is floundering. Which action
would Helen most need to take in order to change the company's fortunes?
A) advise middle managers on better ways to use resources
B) monitor the effectiveness of nonmanagerial employees
C) convince the CEO to change course and adopt a new approach
D) listen to the complaints of first-line managers

67) If Edward works as a first-line manager for a film production company, what would they
most likely do?
A) work as a supporting actor in a film
B) organize the extras on a film set
C) make sure that overall film production is running smoothly
D) greenlight the production of a film
68) The ability to analyze and diagnose a situation and to distinguish between cause and effect
demonstrates a manager's ________ skills.
A) interpersonal
B) conceptual
C) technical
D) communication

69) When Boris started at his new company, he quickly became aware that his department was
making a lot of production errors, not because they were sloppy but because they hadn’t been
properly trained. Boris was using ______ skills to diagnose the situation.
A) interpersonal
B) conceptual
C) technical
D) communication

70) The general abilities to understand, alter, lead, and control the behavior of individuals and
groups are ________ skills.
A) analytic
B) cognitive
C) human
D) conceptual

71) Brad’s team is very effective, in part because Brad is skilled at getting people to work
together. Which type of managerial skill does Brad illustrate?
A) analytic
B) cognitive
C) human
D) conceptual

72) Rose has the skills needed to rewire the electrical systems of skyscrapers. Which type of
managerial skill does Rose illustrate?
A) technical
B) communication
C) interpersonal
D) conceptual
73) The specific set of departmental skills, knowledge, and experience that allows one
organization to outperform its rivals is known as the organization's
A) strategic plan.
B) marketing edge.
C) competitive analysis.
D) core competency.

74) Ming Yue is writing a newspaper article about the day-to-day running of a baseball team. For
this report, she interviews people who do a wide variety of jobs. Which job would Ming Yue
describe in her article as showing technical skill?
A) the manager studying analytics to determine the best lineup
B) the batting instructor giving tips to a struggling player
C) the veteran player giving an inspirational speech to the team
D) a player telling a joke to ease tension and improve comradery

75) Corrine does work that requires conceptual skills. Considering this, which job would she
most likely do?
A) write an inspirational speech for a senator
B) coach a governor on to how to perform in a debate
C) inspire a group to canvas for a political candidate
D) analyze demographics that show the biases of voters

76) Clarence is the head of the human resources department of a company. Which pair would he
most likely place in the same department?
A) Jane, who knows how to design marketing surveys, and Mark, who knows how to
repair manufacturing machines
B) Jane, who knows how to design marketing surveys, and José, who knows how to
administer marketing surveys
C) José, who knows how to administer marketing surveys, and Lorraine, who know how
to sell products
D) Lorraine, who knows how to sell products, and Mark, who knows how to repair
manufacturing machines
77) Casey is the CEO of a media company called Fast Forward, Incorporated She wants the
company to have a core competency that enables it to become an innovator in its field.
Considering this, which activity would Casey most likely authorize?
A) a negotiation strategy to obtain resources from foreign suppliers at a reduced cost
B) a training seminar focused on inspiring the sales staff and improving their approach to
customers
C) a plan to research the development of miniature video cameras that are affordable and
have top-end picture resolution
D) a manufacturing method that streamlines the production process, thereby increasing
output

78) Denzel is a corporate owner who wants to significantly improve the skills of his workforce in
many areas. Which activity would Denzel most likely endorse?
A) the hiring of highly educated managers
B) the creation of a department focusing on research
C) the funding of a college specifically for his employees
D) the production of cheap smartphones for students

79) Contracting with another company, usually in a low-cost country abroad, to have it perform a
work activity the organization previously performed itself is known as
A) integrating.
B) telecommuting.
C) outsourcing.
D) insourcing.

80) Which management technique involves giving employees more authority and responsibility
over how they perform their work activities?
A) innovation
B) total quality management
C) empowerment
D) outsourcing

81) A bank allows its tellers to not only handle deposits and disbursement, but also distribute
traveler's checks and sell certificates of deposit. This is an example of
A) innovation.
B) restructuring.
C) total quality management.
D) empowerment.
82) Tanya wants to facilitate the turnaround of her company, CTLighting, by using outsourcing.
Considering this, which action would she most likely support?
A) firing 10 percent of her workers in the marketing department
B) contracting with a company in India to have it do CTLighting’s marketing
C) combining CTLighting’s research and marketing departments
D) allowing CTLighting's research department to have more autonomy

83) Eric wants to give his company a competitive advantage by using empowerment.
Considering this, which action would Eric most likely support?
A) giving the research department more authority over its projects
B) combining the manufacturing and research departments and contracting a Mexican
company to do marketing
C) using a self-managed team for research and sponsoring inspirational seminars for all
of his employees
D) contracting a Romanian company to do customer service and eliminating the research
department

84) Organizations that operate and compete in more than one country are known as ________
organizations.
A) diversified
B) expanded
C) international
D) global

85) The ability of one organization to outperform other organizations because it produces desired
goods or services more efficiently and effectively than its competitors is known as its
________ advantage.
A) competitive
B) controlling
C) global
D) total

86) Rose Up is a florist that specializes in roses. It imports varieties from all over the world and
has many varieties not found elsewhere, delivering them quickly and always fresh. Rose Up
demonstrates a ________ advantage over other florists who sell roses.
A) competitive
B) controlling
C) distributive
D) competency
87) The creation of a new vision for a struggling company based on a new approach to planning
and organizing to make better use of a company's resources and allow it to survive and
prosper is ________ management.
A) performance
B) total quality
C) turnaround
D) impression

88) Neveen owns a company that produces organic chips called Corny Chips, Incorporated She
wants to create a competitive advantage for Corny Chips in terms of quality. With this goal
in mind, what would she most likely support?
A) the establishment of well-trained customer service department
B) the use of the first organic, biodegradable packaging for chips
C) the implementation of a production process that speeds up output and lowers cost
D) the production of tasty baked chips that use pure olive oil and are reasonably priced

89) Maritime Electronics wants to gain a competitive advantage through innovation. Which
activity would it most likely attempt?
A) installing better computers to assist navigational designers
B) using fewer resources to produce navigational equipment
C) offering repairs of navigational equipment at a discounted rate
D) creating a navigation device never used before

90) Julie’s primary competitor has come out with a product line of espresso machines that make
espresso faster without a drop in quality. Based on what you know about maintaining
competitiveness with flexibility, what should Julie do?
A) outsource the production of heating elements, thereby lowering costs, but slowing the
production process
B) focus on research for a year and eventually produce a new espresso machine better
than her competitor's
C) adapt her production process to create espresso machines similar to her competitor's
without delaying production
D) keep the production process the same and assume that loyal customers will continue
to purchase her brand
91) If a CEO expects his managers to significantly increase production with a minimal or no
increase in cost, which outcome is most likely?
A) Managers will use inspirational methods to motivate employees.
B) Managers will establish a higher standard of safety.
C) Production quality will decline.
D) Managers will produce products of higher quality.

92) An individual who notices opportunities and decides how to mobilize resources required to
start a new business venture is a(n)
A) decision maker.
B) entrepreneur.
C) advocate.
D) steward.

93) When entrepreneurs believe that they are responsible for what happens to them and that their
own actions determine important outcomes such as the success or failure of a new business,
they have
A) an external locus of control.
B) less openness to experience.
C) moderate need for achievement.
D) an internal locus of control.

94) An entrepreneur is likely to have

A) a reluctance to try new experiences.
B) high self-esteem.
C) high need for affiliation.
D) an external locus of control.

95) Members of which group may be considered intrapreneurs?

A) employees of an organization who notice opportunities to develop new products
B) employees of an organization who have worked across various industries
C) managers who are responsible for two or more departments within a company
D) managers who ensure interdepartmental transfer of skills

96) What is a common reason that entrepreneurs often find managing difficult?
A) They are too far from their companies to see the need for change.
B) They are unwilling to share their vision with others.
C) They have trouble delegating authority because of the risk involved.
D) They are not good at communicating their ideas with others.
97) Jonah is the founder of Soda Springs, a manufacturer of novelty bottled sodas that use
organic ingredients. After a couple of years of successfully marketing its products to local
businesses, the company attracted new investors and clients and expanded into several of the
surrounding states. As part of this expansion, it hired a manager, Antonio, to be responsible
for the day-to-day business of the company. However, Jonah questions all of Antonio’s
decisions, wanting to remain involved in every aspect of the business. This has resulted in
Jonah being overextended and stressed most of the time. Karyl, Soda Spring’s biggest
investor and one of Jonah’s mentors, knows that Jonah’s creative, big-picture thinking is one
of his most valuable traits. What should Karyl suggest she do?
A) become a co-manager with Antonio, so that he feels his authority is still respected
B) focus on building the kind of friendly organizational culture he envisions for the
company
C) take on an advisory role and focus on pursing new opportunities for Soda Springs
D) take management classes at the local university to develop his communication skills

ESSAY. Write your answer in the space provided or on a separate sheet of paper.
98) Compare and contrast entrepreneurs and intrapreneurs, and discuss the relationship between
them.

99) Discuss the challenges sometimes encountered by founding entrepreneurs and the skills
needed to address these challenges.

100) What is organizational performance, and what is its relationship with efficiency and
effectiveness?
101) Define efficiency. When is an organization said to be efficient? Give two examples.

102) Explain effectiveness. When is an organization said to be effective? Give two examples.

103) Define planning. What are the three steps in the planning process?

104) What does the managerial task of organizing involve? What is its desired outcome?

105) Discuss the managerial task of leading. What is its desired outcome?

106) What does the managerial task of controlling involve?

107) Identify the three levels of management, explain the basic responsibilities of each, and
give an example for each.

108) Identify and briefly define the three major types of managerial skills. Give an example
for each.

109) Define competitive advantage. What are its four building blocks?

110) Discuss the concept of turnaround management.

111) Name one way that the pressure to increase an organization’s performance may result in
unethical behavior. What is likely to be the result of this behavior?
Answer Key
Test name: chapter 1

1) FALSE

2) TRUE

3) FALSE

4) TRUE

5) FALSE

6) FALSE

7) FALSE

8) TRUE

9) FALSE

10) TRUE

11) TRUE

12) FALSE

13) FALSE

14) B
An organization's resources include assets such as people and their skills, know-how, and
experience; machinery; raw materials; computers and information technology; and patents,
financial capital, and loyal customers and employees.

15) B
Organizational performance is a measure of how efficiently and effectively managers use
available resources to satisfy customers and achieve organizational goals. Organizational
performance increases in direct proportion to increases in efficiency and effectiveness.

16) A
Efficiency is a measure of how productively resources are used to achieve a goal. Organizations
are efficient when managers minimize the amount of input resources or the amount of time
needed to produce a given output of goods or services.

17) A
Efficiency is a measure of how productively resources are used to achieve a goal. Organizations
are efficient when managers minimize the amount of input resources or the amount of time
needed to produce a given output of goods or services.

18) D
Efficiency is a measure of how productively resources are used to achieve a goal. Organizations
are efficient when managers minimize the amount of input resources or the amount of time
needed to produce a given output of goods or services.

19) D
Effectiveness is a measure of the appropriateness of the goals that an organization is pursuing
and the degree to which the organization achieves those goals. Organizations are effective when
managers choose appropriate goals and then achieve them.

20) A
Effectiveness is a measure of the appropriateness of the goals that managers have selected for the
organization to pursue and the degree to which the organization achieves those goals.
Organizations are effective when managers choose appropriate goals and then achieve them.

21) C
Effectiveness is a measure of the appropriateness of the goals that managers have selected for
the organization to pursue and the degree to which the organization achieves those goals.
Organizations are effective when managers choose appropriate goals and then achieve them.

22) B
Low efficiency/high effectiveness situations arise when managers choose the right goals to
pursue, but do a poor job of using resources to achieve these goals. These situations result in the
production of a product that customers want, but that is too expensive for them to buy. See
Figure 1.1.

23) C
High efficiency/high effectiveness situations arise when managers choose the right goals to
pursue and make good use of resources to achieve these goals. It results in the production of a
product that customers want at a quality and price that they can afford. See Figure 1.1.

24) C
Low efficiency/low effectiveness situations arise when managers choose the wrong goals to
pursue and make poor use of resources. It results in the production of a low-quality product that
customers do not want. See Figure 1.1.

25) C
In a low efficiency and high effectiveness situation, the manager chooses the right goals to
pursue, but does a poor job of using resources to achieve these goals. As a result, you get a
product that customers want, but that is too expensive for them to buy. See Figure 1.1.

26) D
In a high efficiency and high effectiveness situation, the manager chooses the right goals to
pursue and makes good use of resources to achieve these goals. It results in a product that
customers want at a quality and price that they can afford. See Figure 1.1.

27) A
In a low efficiency and low effectiveness situation, the manager chooses the wrong goals to
pursue and makes poor use of resources. It results in a low-quality product that customers do not
want. See Figure 1.1.

28) B
In a low efficiency and low effectiveness situation, the manager chooses the wrong goals to
pursue and makes poor use of resources. It results in a low-quality product that customers do not
want. See Figure 1.1.

29) C
By producing copy machines that are complicated to use, the company has low effectiveness
because its production goal is inappropriate for the marketplace. Also, by using cheap resources
the company has low efficiency because it is not using resources well. See Figure 1.1.

30) A
By arranging a deal with the supplier that lowers the cost of the resources, you will also be
lowering the cost of the jewelry. As a result, you will be making better use of resources, thus
increasing efficiency. Refer to Figure 1.1.

31) B
Organizational performance is a measure of how efficiently and effectively managers use
available resources to satisfy customers and achieve organizational goals. Organizational
performance increases in direct proportion to increases in efficiency and effectiveness.

32) C
Typically, the order in which managers perform the managerial tasks is: (1) planning, (2)
organizing, (3) leading, and (4) controlling.

33) B
The essential managerial task of organizing involves establishing task and authority relationships
that allow people to work together to achieve organizational goals.

34) D
The essential managerial task of controlling involves establishing accurate measuring and
monitoring systems to evaluate how well the organization has achieved its goals. See Figure 1.2.

35) A
The essential managerial task of leading involves motivating, coordinating, and energizing
individuals and groups to work together to achieve organizational goals.

36) C
The essential managerial task of planning involves choosing appropriate organizational goals and
courses of action to best achieve those goals. See Figure 1.2.

37) A
To perform the planning task, managers identify and select appropriate organizational goals and
courses of action; they develop strategies for how to achieve high performance. The three steps
involved in planning are (1) deciding which goals the organization will pursue, (2) deciding what
strategies to adopt to attain those goals, and (3) deciding how to allocate organizational resources
to pursue the strategies that attain those goals.

38) B
To perform the planning task, managers identify and select appropriate organizational goals and
courses of action; they develop strategies for how to achieve high performance. The three steps
involved in planning are (1) deciding which goals the organization will pursue, (2) deciding what
strategies to adopt to attain those goals, and (3) deciding how to allocate organizational resources
to pursue the strategies that attain those goals.

39) C
The controlling task helps managers evaluate how well they themselves are performing the other
three tasks of management—planning, organizing, and leading—and take corrective action.

40) A
Organizational structure is the formal system of task and reporting relationships that coordinates
and motivates organizational members so they work together to achieve organizational goals.
41) B
Organizational structure is the formal system of task and reporting relationships that coordinates
and motivates organizational members so they work together to achieve organizational goals.

42) A
"Strategy" refers to a cluster of decisions concerning what organizational goals to pursue, what
actions to take, and how to use resources to achieve these goals.

43) C
“Strategy” refers to a cluster of decisions concerning what organizational goals to pursue, what
actions to take, and how to use resources to achieve these goals.

44) B
Organizational structure is a formal system of task and reporting relationships that coordinates
and motivates members so they work together to achieve organizational goals.

45) C
An effective business strategy is a cluster of decisions concerning what organizational goals to
pursue, what actions to take, and how to use resources to achieve that goal.

46) A
In controlling, the task of managers is to evaluate how well an organization has achieved its
goals and to take any corrective actions needed to maintain or improve performance. For
example, managers monitor the performance of individuals, departments, and the organization as
a whole to see whether they are meeting desired performance standards.

47) B
The strategy of delivering new, exciting, and unique products to the customers is planning task.
To perform the planning task, managers identify and select appropriate organizational goals and
courses of action; they develop strategies for how to achieve high performance.

48) D
Organizing is structuring working relationships so organizational members interact and
cooperate to achieve organizational goals. Organizing people into departments according to the
kinds of job-specific tasks they perform lays out the lines of authority and responsibility among
different individuals and groups.

49) A
Organizing is structuring working relationships so organizational members interact and
cooperate to achieve organizational goals. Organizing people into departments according to the
kinds of job-specific tasks they perform lays out the lines of authority and responsibility among
different individuals and groups.

50) B
Organizing involves structuring working relationships so organizational members interact and
cooperate to achieve organizational goals. Organizing people into departments according to the
kinds of job-specific tasks they perform lays out the lines of authority and responsibility among
different individuals and groups.

51) C
An organization's vision is a short, succinct, and inspiring statement of what the organization
intends to become and the goals it is seeking to achieve—its desired future state. In leading,
managers articulate a clear organizational vision for the organization's members to accomplish,
and they energize and enable employees so everyone understands the part he or she plays in
achieving organizational goals.

52) D
In leading, managers articulate a clear organizational vision for the organization's members to
accomplish, and they energize and enable employees so that everyone understands the part he or
she plays in achieving organizational goals.

53) A
Leadership involves managers using their power, personality, influence, persuasion, and
communication skills to coordinate people and groups so their activities and efforts are in
harmony. It revolves around encouraging all employees to perform at a high level to help the
organization achieve its vision and goals.

54) B
Leadership revolves around encouraging all employees to perform at a high level to help the
organization achieve its vision and goals. Another outcome of leadership is a highly motivated
and committed workforce.

55) D
In controlling, the task of managers is to evaluate how well an organization has achieved its
goals and to take any corrective actions needed to maintain or improve performance. The
outcome of the control process is the ability to measure performance accurately and regulate
organizational efficiency and effectiveness.

56) A
In controlling, the task of managers is to evaluate how well an organization has achieved its
goals and to take any corrective actions needed to maintain or improve performance. The
outcome of the control process is the ability to measure performance accurately and regulate
organizational efficiency and effectiveness.

57) D
In controlling, the task of managers is to evaluate how well an organization has achieved its
goals and to take any corrective actions needed to maintain or improve performance. The
outcome of the control process is the ability to measure performance accurately and regulate
organizational efficiency and effectiveness.

58) C
In controlling, the task of managers is to evaluate how well an organization has achieved its
goals and to take any corrective actions needed to maintain or improve performance. The
outcome of the control process is the ability to measure performance accurately and regulate
organizational efficiency and effectiveness.

59) D
Roger’s company faces a problem with leading. Some leaders can inspire employees, thereby
increasing their enthusiasm for their work. As a result, Roger should hire a charismatic manager
who strongly believes in the company and knows how to convey this belief to others.

60) A
At the base of the managerial hierarchy are first-line managers, often called supervisors. They
are responsible for daily supervision of the nonmanagerial employees who perform the specific
activities necessary to produce goods and services.

61) C
To increase effectiveness, middle managers evaluate whether the organization's goals are
appropriate and suggest to top managers how goals should be changed. A major part of the
middle manager's job is developing and fine-tuning skills and know-how, such as manufacturing
or marketing expertise, that allow the organization to be efficient and effective.

62) C
In contrast to middle managers, top managers are responsible for the performance of all
departments. They have cross-departmental responsibility. Top managers establish
organizational goals, such as which goods and services the company should produce; they decide
how the different departments should interact; and they monitor how well middle managers in
each department use resources to achieve goals.

63) C
The chief executive officer (CEO) is a company's most senior and important manager, the one all
other top managers report to. A central concern of the CEO is the creation of a smoothly
functioning top management team, a group composed of the CEO, the chief operating officer
(COO), and the vice presidents most responsible for achieving organizational goals.

64) A
The amount of time managers spend planning and organizing resources to maintain and improve
organizational performance increases as they ascend the hierarchy. Top managers devote most of
their time to planning and organizing, the tasks so crucial to determining an organization's long-
term performance. The lower that managers' positions are in the hierarchy, the more time the
managers spend leading and controlling first-line managers or nonmanagerial employees.

65) A
To increase efficiency, middle managers find ways to make better use of resources and to
improve customer service.

66) C
For the company to improve its fortunes, Helen must convince the CEO to change course and
adopt a new approach. The CEO is responsible for the success and failure of a company and
needs to support any possible changes to make them effective. The other actions might be
effective, but are not necessary to turn around a company.

67) B
If Edward were a first-line manager, he would organize the extras on a film set. First-line
managers are responsible for the daily supervision of nonmanagerial employees.

68) B
Conceptual skills are demonstrated in the general ability to analyze and diagnose a situation and
to distinguish between cause and effect. Top managers require the best conceptual skills because
their primary responsibilities are planning and organizing.

69) B
Conceptual skills are demonstrated in the general ability to analyze and diagnose a situation and
to distinguish between cause and effect. Top managers require the best conceptual skills because
their primary responsibilities are planning and organizing.

70) C
Human skills include the general ability to understand, alter, lead, and control the behavior of
other individuals and groups. The ability to communicate, to coordinate, and to motivate people
and to mold individuals into a cohesive team distinguishes effective from ineffective managers.
71) C
Human skills include the general ability to understand, alter, lead, and control the behavior of
other individuals and groups. The ability to communicate, to coordinate, and to motivate people
and to mold individuals into a cohesive team distinguishes effective from ineffective managers.

72) A
Technical skills are the job-specific skills required to perform a particular type of work or
occupation at a high level. Examples include a manager's specific manufacturing, accounting,
marketing, and increasingly, IT skills.

73) D
The term "core competency" is often used to refer to the specific set of departmental skills,
knowledge, and experience that allows one organization to outperform its competitors. In other
words, departmental skills that create a core competency give an organization a competitive
advantage.

74) B
The batting instructor giving tips to a struggling player is using his technical skill to improve the
player's swing. Technical skills are the job-specific skills required to perform a particular type of
work or occupation at a high level.

75) D
By analyzing demographics that show the biases of voters, Corrine uses conceptual skills.
Conceptual skills are demonstrated in the general ability to analyze and diagnose a situation and
to distinguish between cause and effect.

76) B
Managers and employees who possess the same kinds of technical skills typically become
members of a specific department. Jane and José both have skills dealing with marketing and
thus would probably be placed in the marketing department.

77) C
Core competency refers to the specific set of departmental skills, knowledge, and experience that
allows one organization to outperform its competitors. If Casey wants her company to be an
innovator, she would most likely work to establish a core competency in research.

78) C
Many companies attempt to improve the skills of their employees by supporting various training
programs, including management programs and colleges for employees.

79) C
Outsourcing involves contracting with another company, often in a low-cost country abroad. It
increases efficiency because it lowers operating costs, freeing up money and resources that can
then be used in more effective ways.

80) C
Many organizations are empowering their customer service employees and giving them the
authority to take the lead in providing high-quality customer service.

81) D
Many organizations are empowering their customer service employees and giving them the
authority to take the lead in providing high-quality customer service.

82) B
Outsourcing involves contracting with another company, usually in a low-cost country abroad, to
have it perform a work activity the organization previously performed itself, such as
manufacturing, marketing, or customer service. Considering this, Tanya would most likely have
a company in India do CTLighting’s marketing.

83) A
Giving a research department more authority is an empowering tactic.

84) D
Global organizations are organizations that operate and compete in more than one country. The
rise of such organizations has pressured many organizations to identify better ways to use their
resources and improve their performance.

85) A
Competitive advantage is the ability of one organization to outperform other organizations
because it produces desired goods or services more efficiently and effectively than its
competitors. The four building blocks of competitive advantage are superior efficiency, quality,
innovation, and responsiveness to customers.

86) A
Competitive advantage is the ability of one organization to outperform other organizations
because it produces desired goods or services more efficiently and effectively than its
competitors. The four building blocks of competitive advantage are superior efficiency, quality,
innovation, and responsiveness to customers.

87) C
Turnaround management is the creation of a new vision for a struggling company using a new
approach to planning and organizing to make better use of a company's resources and allow it to
survive and eventually prosper. It involves developing radical new strategies, such as how to
reduce the number of products sold or change how they are made and distributed, or closing
corporate and manufacturing operations to reduce costs.

88) D
The production of delicious baked chips that use pure olive oil and sell for a reasonable price
focuses on the quality of the product. By creating the great baked chips, Neveen could gain
competitive advantage.

89) D
Creating a new navigation device is an example of an innovation that could help the company
gain competitive advantage.

90) C
Today companies can win or lose the competitive race depending on their speed—how fast they
can bring new products to market—or their flexibility—how easily they can change or alter the
way they perform their activities to respond to actions of their competitors. Companies that have
speed and flexibility are agile competitors.

91) C
Too much pressure or unreasonable pressure to perform can be harmful to a company. It may
induce managers to behave unethically, and even illegally, when dealing with people and groups
inside and outside the organization, such as by using sweatshops.

92) B
Entrepreneurs are individuals who notice opportunities and decide how to mobilize the resources
necessary to produce new and improved goods and services. Entrepreneurs make all of the
planning, organizing, leading, and controlling decisions necessary to start new business ventures.

93) D
Entrepreneurs are likely to have a high level of self-esteem and feel competent and capable of
handling most situations, including the stress and uncertainty surrounding a plunge into a risky
new venture. Entrepreneurs are likely to have an internal locus of control, believing that they are
responsible for what happens to them and that their own actions determine important outcomes
such as the success or failure of a new business.

94) B
Entrepreneurs are likely to have a high level of self-esteem and feel competent and capable of
handling most situations, including the stress and uncertainty surrounding a plunge into a risky
new venture. Entrepreneurs are also likely to have an internal locus of control, believing that
they are responsible for what happens to them and that their own actions determine important
outcomes such as the success or failure of a new business.

95) A
Intrapreneurs are employees of existing organizations who notice opportunities to develop new
or improved products and better ways to make them.

96) C
Very often, it turns out that the entrepreneur who initially founded the business does not have the
management skills to successfully control and change the business over time. Entrepreneurs may,
for example, lack an understanding of how to create the control structure necessary to manage a
successful long-term strategy. Entrepreneurs also may not recognize the need to change their
companies because they are so close to them; in other words, they "cannot see the forest for the
trees." Frequently a founding entrepreneur lacks the skills, patience, or experience to engage in
the difficult and challenging work of management. Some entrepreneurs find it difficult to
delegate authority because they are afraid to risk letting others manage their company.

97) C
Frequently, a founding entrepreneur lacks the skills, patience, or experience to engage in the
difficult and challenging work of management. Some entrepreneurs find it difficult to delegate
authority because they are afraid to risk letting others manage their company. As a result,
founding entrepreneurs can become overloaded, and the quality of their decision making
declines. Other entrepreneurs lack the detailed knowledge necessary to establish state-of-the-art
control systems or to create the organizational culture that is vital to increase organizational
effectiveness. Very often, venture capitalists, the people who provide the capital to fund a new
venture, lend entrepreneurs the money only if they agree from the outset to let a professional
manager become the CEO of the new company. The entrepreneur then holds a senior planning
and advisory role in the company, often chairing its board of directors.

98) Essay
Entrepreneurs are the people who notice opportunities and take responsibility for mobilizing the
resources necessary to produce new and improved goods and services. Essentially, entrepreneurs
bring about change to companies and industries because they see new and improved ways to use
resources to create products customers will want to buy. Many people throughout an
organization take responsibility for developing innovative goods and services. For example,
managers, scientists, or researchers employed by existing companies engage in entrepreneurial
activity when they develop new or improved products. Employees of existing organizations who
notice opportunities for product or service improvements and are responsible for managing the
development process are known as intrapreneurs. An interesting relationship exists between
entrepreneurs and intrapreneurs. Very often intrapreneurs decide to leave their employers and
start their own organizations to take advantage of their new product ideas. In other words,
intrapreneurs become entrepreneurs and found companies that may compete with the companies
they left.

99) Essay

Frequently, a founding entrepreneur lacks the skills, patience, or experience to engage in the
difficult and challenging work of management. Some entrepreneurs find it difficult to delegate
authority because they are afraid to risk letting others manage their company. As a result,
founding entrepreneurs can become overloaded, and the quality of their decision making
declines. Other entrepreneurs lack the detailed knowledge necessary to establish state-of-the-art
control systems or to create the organizational culture that is vital to increase organizational
effectiveness. In summary, it is necessary to do more than create a new product to succeed. An
entrepreneur must hire managers who can create an operating and control system that allows a
new venture to survive and prosper. Very often, venture capitalists, the people who provide the
capital to fund a new venture, lend entrepreneurs the money only if they agree from the outset to
let a professional manager become the CEO of the new company. The entrepreneur then holds a
senior planning and advisory role in the company, often chairing its board of directors.

100) Essay
Organizational performance is a measure of how efficiently and effectively managers use
available resources to satisfy customers and achieve organizational goals. Organizational
performance increases in direct proportion to increases in efficiency and effectiveness.

101) Essay
Efficiency is a measure of how productively resources are used to achieve a goal. Organizations
are efficient when managers minimize the amount of input resources (such as labor, raw
materials, and component parts) or the amount of time needed to produce a given output of
goods or services. Student examples will vary. Possible examples are: if a company reduced the
number of parts needed to make food processors, then it would be considered efficient. Also, if a
company reduced the amount of time to produce 100 automobiles by 20 hours, then it would also
be considered efficient.

102) Essay

Effectiveness is a measure of the appropriateness of the goals that managers have selected for the
organization to pursue and the degree to which the organization achieves those goals.
Organizations are effective when managers choose appropriate goals and then achieve them.
Student examples will vary. The following are possible examples: If the managers of an
organization decided to fill popular demand by producing inexpensive HD televisions and then
achieved this goal, this organization would be effective. Likewise, a company that decided to
increase production by giving its employees more autonomy and then achieved this goal would
also be considered effective.

103) Essay

Planning is the process of identifying and selecting appropriate goals. The three steps involved in
planning are: deciding which goals the organization will pursue, deciding what strategies to
adopt to attain those goals, and deciding how to allocate organizational resources to pursue the
strategies that attain those goals.

104) Essay

Organizing involves structuring working relationships so that organizational members interact

and cooperate to achieve organizational goals. Organizing people into departments according to
the kinds of job-specific tasks they perform lays out the lines of authority and responsibility
among different individuals and groups. The outcome of organizing is the creation of an
organizational structure, a formal system of task and reporting relationships that coordinates and
motivates members so they work together to achieve organizational goals. Organizational
structure determines how an organization's resources can be best used to create goods and
services.

105) Essay
In leading, managers articulate a clear organizational vision for the organization's members to
accomplish, and they energize and enable employees so everyone understands the part he or she
plays in achieving organizational goals. Leadership involves managers using their power,
personality, influence, persuasion, and communication skills to coordinate people and groups so
that their activities and efforts are in harmony. Leadership revolves around encouraging all
employees to perform at a high level to help the organization achieve its vision and goals.
Another outcome of leadership is a highly motivated and committed workforce.

106) Essay

In controlling, the task of managers is to evaluate how well an organization has achieved its
goals and to take any corrective actions needed to maintain or improve performance. The
outcome of the control process is the ability to measure performance accurately and regulate
organizational efficiency and effectiveness. To exercise control, managers must decide which
goals to measure and then they must design control systems that will provide the information
necessary to assess performance. The controlling task also helps managers evaluate how well
they themselves are performing the other three tasks of management—planning,
organizing, and leading—and take corrective action.

107) Essay
The three levels are first-line managers, middle managers, and top managers.
 At the base of the managerial hierarchy are first-line managers, often called supervisors.
They are responsible for the daily supervision of the nonmanagerial employees who
perform the specific activities necessary to produce goods and services. For example, the
leader of a scientific research team directly supervises the scientists on the team.
 Supervising the first-line managers are middle managers, responsible for finding the best
way to organize human and other resources to achieve organizational goals. To increase
efficiency, middle managers find ways to help first-line managers and nonmanagerial
employees better use resources to reduce manufacturing costs or improve customer
service. To increase effectiveness, middle managers evaluate whether the organization's
goals are appropriate and suggest to top managers how goals should be changed. Often
the suggestions that middle managers make to top managers can dramatically increase
organizational performance. A major part of the middle manager's job is developing and
fine-tuning skills and know-how, such as manufacturing or marketing expertise, that
allow the organization to be efficient and effective. For example, the head of employee
training at a company is responsible for improving the skills of all the employees.
 Top managers are responsible for the performance of all departments. They have cross-
departmental responsibility. They establish organizational goals, deciding how the
different departments should interact, and monitor how well middle managers in each
department use resources to achieve goals. Top managers are ultimately responsible for
the success or failure of an organization. For example, the president of a university has
cross-departmental responsibility, monitors how department heads are doing, and
ultimately is responsible for the success or failure of the institution.

108) Essay
The three types of managerial skills are conceptual, human, and technical.
 Conceptual skills are demonstrated in the general ability to analyze and diagnose a
situation and to distinguish between cause and effect. Top managers require the best
conceptual skills because their primary responsibilities are planning and organizing. For
example, a manager that analyzes data that shows the strengths and weaknesses of an
organization is using conceptual skills.
 Human skills include the general ability to understand, alter, lead, and control the
behavior of other individuals and groups. The ability to communicate, to coordinate, and
to motivate people and to mold individuals into a cohesive team distinguishes effective
from ineffective managers. For example, a manager uses human skills when he or she
unifies a group into an efficient team, in which all the member have a positive attitude,
contribute to achieve their goals, and are willing to take risks in sharing ideas.
 Technical skills are the job-specific skills required to perform a particular type of work or
occupation at a high level. Managers need a range of technical skills to be effective. The
array of technical skills managers need depends on their position in their organizations.
For example, a manager who can troubleshoot computer problems is using his or her
technical skills.

109) Essay

Competitive advantage is the ability of one organization to outperform other organizations

because it produces desired goods or services more efficiently and effectively than its
competitors. The four building blocks of competitive advantage are superior efficiency, quality,
innovation, and responsiveness to customers. Organizations increase their efficiency when they
reduce the quantity of resources (such as people and raw materials) they use to produce goods or
services. Companies have introduced quality-enhancing techniques known as total quality
management for improving quality. Innovation is the process of creating new or improved goods
and services that customers want or developing better ways to produce or provide goods and
services. Organizations compete for customers with their products and services, so training
employees to be responsive to customers' needs is vital for all organizations, but particularly for
service organizations.

110) Essay
Turnaround management is the creation of a new vision for a struggling company using a new
approach to planning and organizing to make better use of a company's resources and allow it to
survive and eventually prosper. It involves developing radical new strategies, such as reducing
the number of products sold or changing how they are made and distributed, or closing corporate
and manufacturing operations to reduce costs. Organizations that appoint turnaround CEOs are
generally experiencing a crisis because they have become inefficient or ineffective; sometimes
this is because of ineffective management over a continuing period, and sometimes it occurs
because a competitor introduces a new product or technology that makes their own products
unattractive to customers.

111) Essay
Pressure to increase performance can be healthy for an organization because it leads managers to
question how the organization is working, and it encourages them to find new and better ways to
plan, organize, lead, and control. However, too much pressure to perform can be harmful. It may
induce managers to behave unethically, and even illegally, when dealing with people and groups
inside and outside the organization.
The temptation to gain from practices such as these can get companies into legal trouble.
Harmful and illegal actions also can hurt a company’s reputation with its suppliers and
customers, as well as with the communities in which it operates. Furthermore, people of good
character do not want to manage or work for such organizations.
Examples will vary.