Management Chuck Williams 7th Edition Test Bank

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Management Chuck Williams 7th Edition Test Bank

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Chapter 1: Management

TRUE/FALSE

1. While good management is basic to starting and growing a business, once some measure of success has been achieved, good management becomes less important.

ANS: F
Good management is basic to starting a business, growing a business, and maintaining a business once it has achieved some measure of success.

PTS: 1 DIF: Easy REF: 6 TOP: AACSB Analytic
KEY: Creation of Value

2. Managers are responsible for doing the basic work in the company.

ANS: F
The managers job is not to do the basic work in the company, but to help others do their work.

PTS: 1 DIF: Easy REF: 7 TOP: AACSB Reflective Thinking
KEY: Creation of Value

3. Companies that plan have larger profits and faster growth than companies that dont.

ANS: T PTS: 1 DIF: Easy REF: 9
TOP: AACSB Reflective Thinking KEY: Creation of Value

4. The classical functions of management are (1) making things happen, (2) meeting the competition, (3) organizing people, projects, and processes, and (4) leading.

ANS: F
The classical functions of management are planning, organizing, leading, and controlling.

PTS: 1 DIF: Moderate REF: 8 TOP: AACSB Reflective Thinking
KEY: Leadership Principles | HRM | Strategy | Creation of Value

5. According to What Really Works, Meta-Analysis, meta-analysis is a research tool that combines the results of a number of research studies.

ANS: T PTS: 1 DIF: Easy REF: 10-11
TOP: AACSB Reflective Thinking KEY: Creation of Value

6. According to the What Really Works box, meta-analysis is useful for management theorists and researchers, but it has little value for the practicing manager.

ANS: F
Meta-analysis is also useful for practicing managers, because it shows what works and the conditions under which management techniques may work better or worse in the real world.

PTS: 1 DIF: Moderate REF: 10-11 TOP: AACSB Reflective Thinking
KEY: Creation of Value

7. Top managers are responsible for creating a context for change in the organization.

ANS: T PTS: 1 DIF: Moderate REF: 13-14
TOP: AACSB Reflective Thinking KEY: Creation of Value

8. Top managers are the managers responsible for facilitating team activities toward goal accomplishment.

ANS: F
Top managers are executives responsible for the overall direction of the organization; team leaders are the managers responsible for facilitating team activities toward goal accomplishment.

PTS: 1 DIF: Moderate REF: 13-14 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: Group Dynamics

9. As the health-care team leader for Commerce Bank, Emmett Conlon is responsible for facilitating his teams performance and should not be involved with any employees outside of his team.

ANS: F
Team leaders are responsible not only for facilitating team performance, but also for acting as liaisons between their teams and other company teams.

PTS: 1 DIF: Moderate REF: 16-17 TOP: AACSB Analytic
KEY: Group Dynamics | Leadership Principles

10. Typical titles used for top managers are general manager, plant manager, regional manager, and divisional manager.

ANS: F
These are typical titles for middle managers, not top managers. See Exhibit 1.2.

PTS: 1 DIF: Moderate REF: 13-14 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: Creation of Value | HRM

11. First-line managers are responsible for setting objectives consistent with organizational goals and planning and implementing subunit strategies for achieving these objectives.

ANS: F
This is the responsibility of middle managers. See Exhibit 1.2.

PTS: 1 DIF: Moderate REF: 15 TOP: AACSB Reflective Thinking
KEY: Strategy

12. Bandai, the third-largest toy maker in the world, has embarked on a series of acquisitions in an effort to become the leading toy maker in the world. The decision to adopt this goal was most likely made by its top management.

ANS: T
See Exhibit 1.2.

PTS: 1 DIF: Easy REF: 13-14 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Leadership Principles | Strategy

13. Middle managers are typically responsible for coordinating and linking groups, departments, and divisions within a company.

ANS: T
See Exhibit 1.2.

PTS: 1 DIF: Difficult REF: 15 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: Strategy | Group Dynamics

14. First-line managers are the only managers who do not supervise other managers.

ANS: T
See Exhibit 1.2.

PTS: 1 DIF: Easy REF: 15-16 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: HRM

15. Middle managers engage in plans and actions that typically produce results within two weeks.

ANS: F
First-line managers engage in such plans and actions. Middle managers plan 6 to 18 months out.

PTS: 1 DIF: Moderate REF: 15 TOP: AACSB Reflective Thinking
KEY: Creation of Value | Operations Management

16. The Procter & Gamble manager who oversaw the manufacturing changes that were needed to make smaller, more environmentally safe cartons of Tide detergent had to be strong in both human and technical skills.

ANS: T PTS: 1 DIF: Moderate REF: 23 (Exhibit 1.4)
TOP: AACSB Analytic KEY: Leadership Principles | HRM

17. The job of team leader would NOT be considered a management position.

ANS: F
The job of team leader is indeed one of the four kinds of management jobs, which are top managers, middle managers, first-line managers, and team leaders.

PTS: 1 DIF: Easy REF: 16-17 TOP: AACSB Reflective Thinking
KEY: HRM

18. Team leaders direct the work of individuals within the team structure.

ANS: F
Instead of directing individuals work, team leaders facilitate team activities toward goal accomplishment.

PTS: 1 DIF: Moderate REF: 16-17 TOP: AACSB Reflective Thinking
KEY: Group Dynamics

19. Team leaders are responsible for managing both internal team relationships and external relationships with other teams, departments, and divisions in a company.

ANS: T PTS: 1 DIF: Moderate REF: 16-17
TOP: AACSB Reflective Thinking KEY: Group Dynamics

20. While interpersonal conflict management is a critical skill for first-line managers, it is not a very important skill for team leaders.

ANS: F
This is a critical skill for team leaders. Team leaders are responsible for internal team relations. Since the entire team suffers when a conflict arises between members, it is critical for team leaders to know how to help team members resolve conflicts.

PTS: 1 DIF: Easy REF: 16-17
TOP: AACSB Reflective Thinking | AACSB Communication KEY: Individual Dynamics

21. The three interpersonal subroles are monitor, disseminator, and spokesperson.

ANS: F
The three interpersonal subroles are figurehead, leader, and liaison. See Exhibit 1.3.

PTS: 1 DIF: Easy REF: 18-19 (Exhibit 1.3)
TOP: AACSB Reflective Thinking KEY: Creation of Value

22. Mintzberg concluded that managers fulfill three major roles while performing their jobs. These roles are categorized as interpersonal roles, organizational roles, and decisional roles.

ANS: F
Mintzbergs roles were interpersonal roles, informational roles, and decisional roles. See Exhibit 1.3

PTS: 1 DIF: Moderate REF: 18 (Exhibit 1.3)
TOP: AACSB Reflective Thinking KEY: Creation of Value

23. The decisional roles consist of four subroles. They are entrepreneur, disturbance handler, resource allocator, and spokesperson.

ANS: F
The four subroles are entrepreneur, disturbance handler, resource allocator, and negotiator. See Exhibit 1.3.

PTS: 1 DIF: Difficult REF: 20-22 (Exhibit 1.3)
TOP: AACSB Reflective Thinking KEY: Individual Dynamics | Leadership Principles

24. When the CEO of Whole Foods slashed his salary from $1 million to $1 to avoid the huge salary disparities that negatively influence employee morale in many corporations, he was using the management function of organizing.

ANS: F
In inspiring and motivating the employees, the CEO was using the management function of leading.

PTS: 1 DIF: Moderate REF: 18 TOP: AACSB Analytic
KEY: Leadership Principles | Motivation Concepts

25. In the entrepreneur role, managers adapt themselves, their subordinates, and their units to change.

ANS: T PTS: 1 DIF: Moderate REF: 20-21
TOP: AACSB Analytic
KEY: Creation of Value | Strategy | Environmental Influence

26. Companies look for a total of four sets of skills in individuals to identify potential managers. These desired skills are technical skills, human skills, conceptual skills, and motivation to manage.

ANS: T PTS: 1 DIF: Easy REF: 23-24 (Exhibit 1.4)
TOP: AACSB Reflective Thinking KEY: Individual Dynamics | Leadership Principles

27. Technical skill refers to the ability to see the organization as a whole, how the different parts affect each other, and how the company fits into or is affected by its environment.

ANS: F
Technical skill refers to the ability to apply the specialized procedures, techniques, and knowledge required to get the job done. The foregoing defines conceptual skill.

PTS: 1 DIF: Moderate REF: 23 TOP: AACSB Reflective Thinking
KEY: Environmental Influence | Individual Dynamics

28. For many managers, the knowledge, skills, and abilities that led to success early in their careers (i.e., prior to their promotion into the ranks of management) may not necessarily help them succeed as managers.

ANS: T PTS: 1 DIF: Difficult REF: 23
TOP: AACSB Reflective Thinking KEY: Individual Dynamics

29. Conceptual skills are most important for lower-level managers.

ANS: F
Technical skills are most important for lower-level managers.

PTS: 1 DIF: Easy REF: 23-24 TOP: AACSB Reflective Thinking
KEY: Individual Dynamics

30. Upper-level managers may actually spend more time dealing with people than lower-level managers.

ANS: T PTS: 1 DIF: Moderate REF: 23
TOP: AACSB Reflective Thinking | AACSB Communication KEY: Individual Dynamics

31. Only first-line managers need technical skills.

ANS: F
Technical skills are most important for team leaders and first-line managers, but they are also essential for other managerial jobs.

PTS: 1 DIF: Easy REF: 23 TOP: AACSB Analytic
KEY: Individual Dynamics | Leadership Principles

32. The motivation to manage tends to be higher among managers at higher levels in the organization than it is among managers at lower levels in the organization.

ANS: T PTS: 1 DIF: Difficult REF: 24
TOP: AACSB Reflective Thinking KEY: Motivation Concepts | Individual Dynamics

33. The number one mistake made by managers who were derailed from their fast track movement up the managerial ranks was that they didnt develop the necessary technical skills.

ANS: F
The number one mistake made by managers who were derailed from their fast track movement up the managerial ranks was that they were insensitive to others by virtue of their abrasive, intimidating, and bullying management style.

PTS: 1 DIF: Easy REF: 24-25
TOP: AACSB Analytic | AACSB Communication KEY: Individual Dynamics

34. After taking this course, you will have a very clear idea of what you will be expected to do as a manager.

ANS: F
Most of the new managers conclude that their initial expectations about managerial work were wrong.

PTS: 1 DIF: Easy REF: 26-27 TOP: AACSB Analytic
KEY: Leadership Principles

35. A management study discovered that companies that invest in their people will create long-term competitive advantages that are difficult for other companies to duplicate.

ANS: T PTS: 1 DIF: Moderate REF: 28-30
TOP: AACSB Reflective Thinking KEY: Strategy | Creation of Value | HRM

MULTIPLE CHOICE

1. __________ is defined as getting work done through others.
a. Management
b. Planning
c. Organizing
d. Strategizing
e. Controlling

ANS: A PTS: 1 DIF: Easy REF: 7
TOP: AACSB Reflective Thinking KEY: Leadership Principles

2. When Ruth was hired to be the second-in-command at Graham Mailing Services, she was told that her job was to deal with the employees to make sure they got the mailing done to the customers specifications. She was not instructed on how to run machines or in any other technical area because hers was a job in:
a. marketing
b. relationship control
c. management
d. customer service
e. strategizing

ANS: C
Management is getting work done through others.

PTS: 1 DIF: Difficult REF: 7 TOP: AACSB Analytic
KEY: Creation of Value

3. A manager striving to improve organizational __________ is accomplishing tasks that help fulfill organizational objectives.
a. efficiency
b. effectiveness
c. functionality
d. synergy
e. productivity

ANS: B PTS: 1 DIF: Moderate REF: 8
TOP: AACSB Analytic KEY: Creation of Value

4. In 2004, Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas, C2 and Pepsi Edge, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse since one of their key tenets is avoiding refined sugar in any amount. The new brands grabbed a combined market share of less than 1 percent. Given that the objective of both soft drink manufacturers was to increase their market share, the introductions were notably:
a. synergistic
b. empathetic
c. inefficient
d. autonomous
e. reciprocal

ANS: C
Efficiency is getting work done with a minimum of effort, expense, and waste.

PTS: 1 DIF: Moderate REF: 7 TOP: AACSB Analytic
KEY: Creation of Value | Operations Management

5. One of the reasons for the slow response to help the victims of Hurricane Katrina was an antiquated FEMA system that was bogged down in bureaucratic red tape. In other words, the failure of assistance to arrive in a timely fashion was due to a lack of:
a. apathy
b. efficiency
c. instrumentality
d. effectiveness
e. the absence of entropy

ANS: B
Efficiency means getting work done with a minimum of effort, expense, or waste.

PTS: 1 DIF: Moderate REF: 7 TOP: AACSB Analytic
KEY: Creation of Value | Operations Management

6. _____ is the accomplishment of tasks that help fulfill organizational objectives.
a. Benchmarking
b. Optimizing
c. Satisficing
d. Efficiency
e. Effectiveness

ANS: E PTS: 1 DIF: Easy REF: 8
TOP: AACSB Reflective Thinking KEY: Creation of Value

7. To achieve its goal of increased market share, Krispy Kreme launched a program in Palm Beach County, Florida, that awards grade-school students a free doughnut for every A on their report cards. Which management function was used to create this program?
a. controlling
b. leading
c. focusing
d. planning
e. organizing

ANS: D
Planning is determining the means to achieve an organizational goal.

PTS: 1 DIF: Easy REF: 9 TOP: AACSB Analytic
KEY: Operations Management

8. Nestl was unsuccessful in early attempts to sell its chocolate in India. It discovered its chocolate bars were not suitable for the Indian markets because the candy had to sit in direct sunlight without benefit of air conditioning and became messy. Nestl adopted an innovation strategy and developed Chocostick, a liquid chocolate, which is very popular. Nestl used which management function to solve its problem?
a. planning
b. meeting the competition
c. making things happen
d. organizing people, processes, and projects
e. leading

ANS: A PTS: 1 DIF: Easy REF: 9
TOP: AACSB Analytic KEY: Operations Management | Creation of Value

9. A manager engaged in the management function of __________ is determining organizational goals and the means for achieving them.
a. planning
b. organizing
c. leading
d. human resources management
e. controlling

ANS: A PTS: 1 DIF: Moderate REF: 9
TOP: AACSB Reflective Thinking KEY: Operations Management

10. Interstate Bakeries, the makers of Wonder bread, declared bankruptcy in 2003. The companys objectives in 2004 were to increase its revenues by at least 5 percent and reduce its net losses by at least 80 percent. Which management function was used to set these goals and will help the company meet these goals?
a. planning
b. organizing
c. controlling
d. motivating
e. leading

ANS: A
Planning is determining organizational objectives and a means for achieving them.

PTS: 1 DIF: Moderate REF: 9 TOP: AACSB Analytic
KEY: Strategy | Operations Management

11. The candy market in Asia has grown recently as more Asians emulate the American lifestyle, and Hershey has decided that to grow it must start selling to the Asian markets. This decision was part of which management function?
a. planning
b. organizing
c. leading
d. controlling
e. evaluating

ANS: A
Planning is determining organizational objectives and a means for achieving them.

PTS: 1 DIF: Easy REF: 9 TOP: AACSB Analytic
KEY: Strategy | Creation of Value

12. A business school administrator who is determining what classes will be offered in which rooms and who will teach each specific class is involved in which classical management function?
a. making things happen
b. organizing
c. controlling
d. motivating
e. leading

ANS: B PTS: 1 DIF: Easy REF: 9
TOP: AACSB Analytic KEY: Operations Management

13. The candy market in Asian has grown recently as more Asians emulate the American lifestyle, and Hershey has decided that to grow it must start selling to the Asian markets. Which management function will help determine who decides how Hershey will get its products into the small pop-and-mom retail outlets that are prevalent in China?
a. planning
b. organizing
c. leading
d. controlling
e. evaluating

ANS: B
Organizing is deciding where decisions will be made, who will do what jobs, and who will work for whom.

PTS: 1 DIF: Easy REF: 9 TOP: AACSB Analytic
KEY: Information Technologies | Operations Management

14. In November 2004, designer Karl Lagerfeld partnered with Swedish retailer Hennes & Mauritz to sell an affordable line of high-fashion clothing, which Lagerfeld will design exclusively for the retailer. Hennes & Mauritz will take responsibility for manufacturing and marketing the clothes. Which management function guided the alliance between the designer and the retailer?
a. controlling
b. leading
c. motivating
d. planning
e. organizing

ANS: E
Organizing is deciding where decisions will be made, who will do what jobs, and who will work for whom.

PTS: 1 DIF: Easy REF: 9 TOP: AACSB Analytic
KEY: Operations Management

15. According to the What Really Works box, a(n) __________ is a type of study that often shows the conditions under which management techniques may work better or worse in the real world.
a. social audit
b. meta-analysis
c. effectiveness analysis
d. SWOT analysis
e. risk assessment

ANS: B PTS: 1 DIF: Moderate REF: 10-11
TOP: AACSB Reflective Thinking KEY: Environmental Influence

16. According to the What Really Works box, meta-analysis is of value to and will benefit:
a. investors and financial institutions
b. any student of business
c. all stakeholders
d. management scholars and practicing managers
e. none of these

ANS: D PTS: 1 DIF: Difficult REF: 10-11
TOP: AACSB Reflective Thinking KEY: Environmental Influence

17. According to the What Really Works box, which of the following statements about meta-analysis is true?
a. Meta-analysis is a statistical technique applicable only in a single research study.
b. Meta-analysis is of value to all organizational stakeholders.
c. Statistics generated through meta-analysis cannot be converted to an understandable format.
d. Meta-analysis shows the conditions under which management techniques may work better or worse in the real world.
e. Meta-analysis only benefits inexperienced managers.

ANS: D PTS: 1 DIF: Difficult REF: 10-11
TOP: AACSB Reflective Thinking KEY: Environmental Influence

18. According to the What Really Works box, __________ suggest that a test of general mental ability will be a successful predictor of a job applicants on-the-job performance about 75 percent of the time.
a. meta-analyses
b. market audits
c. employee-fit tests
d. job analyses
e. social interaction audits

ANS: A PTS: 1 DIF: Difficult REF: 10-11
TOP: AACSB Reflective Thinking KEY: Individual Dynamics | HRM

19. A U.S. Marine drill instructor motivating new recruits to challenge themselves is engaged in which management function?
a. planning
b. organizing
c. controlling
d. motivating
e. leading

ANS: E PTS: 1 DIF: Easy REF: 11
TOP: AACSB Analytic KEY: Motivation Concepts | Leadership Principles

20. In 2004, the Massachusetts Institute of Technology (MIT) announced that it was going to overcome the digital divide by making a $100 laptop for the poor children of the world. By relying strongly on the _____ function of management, MIT has nearly achieved its goal.
a. planning
b. organizing
c. leading
d. controlling
e. evaluating

ANS: D
Controlling is monitoring progress toward goal achievement and then taking corrective action when the project goal appears to be unreachable.

PTS: 1 DIF: Easy REF: 11-12 TOP: AACSB Analytic
KEY: Leadership Principles | Operations Management

21. A manager engaged in the management function of __________ is monitoring progress toward goal achievement and taking corrective action when needed.
a. planning
b. organizing
c. leading
d. controlling
e. motivating

ANS: D PTS: 1 DIF: Easy REF: 11-12
TOP: AACSB Reflective Thinking KEY: Operations Management

22. Jane is in charge of her Rotary Clubs annual fund-raising auction. She will decide who will ask local businesses for prizes, who will determine the site, who will sell tickets to customers, and who will work the night of the auction. She is engaged in the management function of:
a. planning
b. controlling
c. leading
d. resource allocation
e. organizing

ANS: E
Organizing is deciding where decisions will be made, who will do what jobs, and who will work for whom.

PTS: 1 DIF: Moderate REF: 9 TOP: AACSB Analytic
KEY: Operations Management

23. Southern Living magazine was forced to pull its April 2004 issue off newsstands and mail warnings to 2.5 million subscribers after it became clear that a recipe for dinner rolls described as little pillows from heaven created a rather impressive firestorm. The management function of _____ was used when the warnings were mailed to subscribers.
a. planning
b. organizing
c. controlling
d. motivating
e. leading

ANS: C
Controlling is taking corrective action when necessary.

PTS: 1 DIF: Easy REF: 11-12 TOP: AACSB Analytic
KEY: Operations Management | Environmental Influence

24. In 2004, Hormel Foods had to recall 104,000 pounds of Stagg canned chililabeled hearty beef with a kick of green chiliesafter the kick turned out to come instead from the ground-up parts of a plastic handheld calculator. The recall was the application of which management function?
a. controlling
b. leading
c. motivating
d. planning
e. organizing

ANS: A
Controlling is the monitoring of progress toward the achievement of goals and then taking what corrective action is indicated by the monitoring.

PTS: 1 DIF: Easy REF: 11-12 TOP: AACSB Analytic
KEY: Operations Management

25. As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Radeback had to find inexpensive ways to reward employees and bolster morale during a sales-flattening economic downturn. Radeback had to engage in which management function?
a. planning
b. organizing
c. leading
d. controlling
e. evaluating

ANS: C
A manager engaged in the management function of leading is inspiring and motivating workers to continue to work hard to achieve organizational goals.

PTS: 1 DIF: Easy REF: 11 TOP: AACSB Analytic
KEY: Motivation Concepts | Leadership Principles

26. Robert Rothschild Farm boosted the morale and showed its gratitude to its 75 employees at its retail store, cafe, and production facility by hosting its first employee appreciation week. It used the management function of _____ to boost morale.
a. leading
b. commanding
c. organizing
d. controlling
e. resource allocation

ANS: A
Leading involves inspiring employees to work harder to achieve organizational goals.

PTS: 1 DIF: Moderate REF: 11 TOP: AACSB Analytic
KEY: Leadership Principles | Motivation Concepts

27. Eastman Kodak owns a company that manufactures dental radiation equipment. The company, which is run as an independent unit, has experienced excessive financial losses the last three years. The __________ for the company would be expected to develop the long-term plans needed to make the company profitable.
a. supervising manager
b. top manager
c. first-line manager
d. middle manager
e. department manager

ANS: B PTS: 1 DIF: Easy REF: 13-14
TOP: AACSB Analytic KEY: Leadership Principles | HRM

28. In 2004, Coca-Cola and PepsiCo spent a total of $75 million to launch mid-calorie sodas, C2 and Pepsi Edge, banking on the low-carb trend. Carb-conscious consumers rejected the drinks en masse since one of their key tenets is avoiding refined sugar in any amount. The new brands grabbed a combined market share of less than 1 percent. Cokes and PepsiCos __________ would be responsible for determining that the product should be deleted from each of their product lines.
a. middle management
b. first-line management
c. team leaders
d. product supervisors
e. top management

ANS: E PTS: 1 DIF: Easy REF: 13-14 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Creation of Value | Leadership Principles

29. Which of the following typically is NOT performed by top managers?
a. setting objectives consistent with organizational goals or planning and implementing subunit strategies for achieving these objectives
b. developing in employees the attitudes of commitment to and ownership in the companys performance
c. creating a positive organizational culture through language and action
d. monitoring the business environment
e. creating a context for change

ANS: A
See Exhibit 1.2.

PTS: 1 DIF: Moderate REF: 13-14 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Strategy

30. After declaring bankruptcy in 2003, Interstate Bakeries, the makers of Twinkies, Ho Hos, and Ding Dong snack cakes, decided to modernize its products look by redesigning its packaging. __________ would be responsible for implementing this package change.
a. middle management
b. First-line management
c. Team leaders
d. Product supervisors
e. Top management

ANS: A
Middle managers implement the strategies needed to achieve top managements goals. See Exhibit 1.2.

PTS: 1 DIF: Easy REF: 15 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Leadership Principles

31. A middle manager for a manufacturer of environmentally friendly packaging would:
a. monitor how consumers feel about environmental waste
b. schedule vacation time for employees
c. determine how the company was going to implement a plan calling for a 10 percent decrease in costs
d. be responsible for maintaining a positive organizational culture
e. do all of these

ANS: C
See Exhibit 1.2.

PTS: 1 DIF: Easy REF: 15 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Creation of Value | Strategy

32. A top manager for a management consulting firm would:
a. establish a positive organizational culture that encourages employees to be passionate about their clients
b. make sure employees are attired according to the company dress code
c. evaluate the performance of individual consultants
d. monitor expense statements turned in by consultants
e. coordinate activities within and between consultants working in the field and support staff in the office

ANS: A
See Exhibit 1.2.

PTS: 1 DIF: Moderate REF: 13-14 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Leadership Principles | Group Dynamics

33. The chairs of the accounting, marketing, and communications departments at a typical university are assuming the roles of __________ because they supervise nonmanagerial employees.
a. supervising managers
b. top managers
c. first-line managers
d. middle managers
e. department managers

ANS: C
See Exhibit 1.2.

PTS: 1 DIF: Moderate REF: 15-16 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Leadership Principles | HRM

34. As a result of the 2005 blackout in Los Angeles, __________ in the police department had to determine which police officers were going to work overtime.
a. top managers
b. middle managers
c. administrative managers
d. first-line managers
e. team leaders

ANS: B
Middle managers are responsible for planning and implementing subunit strategies for achieving the objectives of top managers. See Exhibit 1.2.

PTS: 1 DIF: Moderate REF: 15 (Exhibit 1.2)
TOP: AACSB Analytic KEY: HRM

35. __________ are responsible for creating a positive organizational culture through language and action.
a. Top managers
b. Middle managers
c. Team leaders
d. Supervisors
e. Group facilitators

ANS: A PTS: 1 DIF: Moderate REF: 13-14
TOP: AACSB Reflective Thinking KEY: Leadership Principles

36. Robert Rothschild Farm boosted the morale and showed its gratitude to its 75 employees at its retail store, cafe, and production facility by hosting its first employee appreciation week. It was a good mix of fun and learning, said Robin Coffey, marketing manager. Coffey is an example of a:
a. supervising manager
b. top manager
c. first-line manager
d. middle manager
e. department manager

ANS: D
The marketing department is a division. A division manager is a middle manager.

PTS: 1 DIF: Difficult REF: 15 TOP: AACSB Analytic
KEY: Leadership Principles | HRM

37. _____ were most likely responsible for Hersheys decision to sell its products in the Asian markets.
a. General managers
b. Middle managers
c. First-line managers
d. Team leaders
e. Top managers

ANS: E
Top managers are responsible for creating change and long-term strategies.

PTS: 1 DIF: Easy REF: 13-14 TOP: AACSB Analytic
KEY: Leadership Principles

38. As the human resources manager for Spring Engineering and Manufacturing Corp. in Canton, Michigan, Kim Radeback had to find inexpensive ways to reward employees and bolster morale during a sales-flattening economic downturn. Radeback is an example of a:
a. supervising manager
b. top manager
c. first-line manager
d. middle manager
e. department manager

ANS: D
The human resources department is a division. A divisional manager is a middle manager. See Exhibit 1.2.

PTS: 1 DIF: Difficult REF: 15 (Exhibit 1.2)
TOP: AACSB Analytic KEY: HRM | Motivation Concepts

39. Typical responsibilities for __________ include setting objectives consistent with organizational goals and then planning and implementing the subunit strategies for achieving these goals.
a. top managers
b. shift supervisors
c. first-line managers
d. team leaders
e. middle managers

ANS: E PTS: 1 DIF: Easy REF: 15 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: Leadership Principles | Strategy

40. Middle managers typically:
a. plan and allocate resources
b. coordinate and link groups and departments
c. implement changes and strategies generated by top managers
d. monitor the activities of first-line managers who report to them
e. do all of these

ANS: E PTS: 1 DIF: Easy REF: 15 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: Leadership Principles

41. Typical responsibilities for __________ include coordinating and linking groups, departments, and divisions within a company.
a. top managers
b. middle managers
c. vice presidents
d. team leaders
e. first-line managers

ANS: B PTS: 1 DIF: Moderate REF: 15 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: Leadership Principles

42. It is the responsibility of __________ to develop intermediate plans, designed to produce results within six to eighteen months.
a. top managers
b. middle managers
c. first-line managers
d. group facilitators
e. team leaders

ANS: B PTS: 1 DIF: Moderate REF: 15
TOP: AACSB Reflective Thinking KEY: Leadership Principles

43. First-line managers will most likely have to:
a. monitor the performance of corporate investments
b. encourage, monitor, and reward the performances of their employees
c. determine how to deal with long-term environmental changes
d. periodically monitor the companys organizational culture
e. do none of these

ANS: B PTS: 1 DIF: Easy REF: 15-16
TOP: AACSB Analytic KEY: Motivation Concepts

44. Managers who train and supervise the performance of nonmanagerial employees, and who are directly responsible for producing the companys products or services, are categorized as:
a. general managers
b. middle managers
c. first-line managers
d. team leaders
e. top managers

ANS: C PTS: 1 DIF: Easy REF: 15-16 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: Leadership Principles

45. During the week of August 9 in 2004, Robert Rothschild Farm boosted the morale and showed its gratitude to its 75 employees at its retail store, cafe, and production facility by hosting its first employee appreciation week. A _____ manager more than likely planned the employee picnic, selected and ordered the awards, and encouraged workers to attend.
a. marketing
b. team
c. first-line
d. top
e. middle

ANS: C
One of the duties of the first-line manager is to reward the performance of others.

PTS: 1 DIF: Easy REF: 15-16 TOP: AACSB Analytic
KEY: HRM | Motivation Concepts | Creation of Value

46. Walker supervises operations on the chassis assembly line for a large vehicle manufacturer. Most of his time is spent in quality control maintenance, scheduling workers, and training new employees. Walker would be categorized as a:
a. first-line manager
b. middle manager
c. top manager
d. team leader
e. group facilitator

ANS: A PTS: 1 DIF: Easy REF: 15-16
TOP: AACSB Analytic KEY: Operations Management

47. A first-line manager for a large electric generator manufacturer would:
a. monitor how its customers feel about electric-powered engines
b. determine if the company needed to increase its production by adding another shift
c. monitor and manage the performance of the companys international subsidiaries
d. manage the performance of employees who actually build the generators
e. do all of these

ANS: D PTS: 1 DIF: Moderate REF: 15-16
TOP: AACSB Analytic KEY: HRM

48. A __________ for a McDonalds fast-food restaurant would be responsible for placing orders for food and paper supplies and for setting up weekly work schedules.
a. corporate vice president
b. middle manager
c. first-line manager
d. division supervisor
e. top manager

ANS: C PTS: 1 DIF: Moderate REF: 15-16
TOP: AACSB Analytic KEY: HRM

49. Middle managers will most likely have to:
a. facilitate a bottom-up planning approach to supervising
b. manage the performance of entry-level employees
c. implement the changes generated by top managers
d. develop employees commitment to and ownership of the companys performance
e. monitor long-term environmental trends

ANS: C PTS: 1 DIF: Difficult REF: 15 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: HRM | Creation of Value

50. The CEO of Camper brand shoes expects its designers to operate like a team when they create new shoe designs. Most of its designers do not have a background in fashion so it is important that they share their expertise. Each team has a leader who is responsible for:
a. developing organizational codes of ethics
b. managing external and internal team relationships
c. developing growth strategies
d. coordinating the performances of all teams
e. doing all of these

ANS: B PTS: 1 DIF: Moderate REF: 16-17 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Leadership Principles | Group Dynamics

51. Team leaders typically:
a. conduct quality control audits
b. manage external and internal relationships
c. act as department liaisons
d. oversee strategy implementation
e. do all of these

ANS: B PTS: 1 DIF: Difficult REF: 16-17 (Exhibit 1.2)
TOP: AACSB Reflective Thinking KEY: Group Dynamics

52. According to Mintzberg, which of the following lists the three major roles managers fulfill while performing their jobs?
a. interpersonal roles, informational roles, and decisional roles
b. informational roles, ethical roles, and action roles
c. corporate roles, coordination roles, and informational roles
d. decisional roles, informational roles, and organizational roles
e. interpersonal roles, intrapersonal roles, and departmental roles

ANS: A
See Exhibit 1.3.

PTS: 1 DIF: Moderate REF: 18 (Exhibit 1.3)
TOP: AACSB Reflective Thinking KEY: Leadership Principles

53. Which of the following is an example of an interpersonal role?
a. figurehead
b. monitor
c. disseminator
d. resource allocator
e. spokesperson

ANS: A
The other interpersonal roles are leader and liaison. See Exhibit 1.3.

PTS: 1 DIF: Difficult REF: 18 (Exhibit 1.3)
TOP: AACSB Reflective Thinking | AACSB Communication KEY: Leadership Principles

54. According to Mintzberg, managers engaged in __________ roles are talking to people inside and outside the organization.
a. decisional
b. conceptual
c. interpersonal
d. informational
e. motivational

ANS: C
See Exhibit 1.3.

PTS: 1 DIF: Moderate REF: 18-19 (Exhibit 1.3)
TOP: AACSB Reflective Thinking | AACSB Communication KEY: Leadership Principles

55. The marketing manager of Interstate Bakeries was asked to meet with the organizations research and development department to explain why the company needed to change its 25-year-old package design for Twinkies. The marketing manager took on an interpersonal role as:
a. liaison
b. disseminator
c. disturbance handler
d. figurehead
e. resource allocator

ANS: A
In a liaison role, managers deal with people outside their units.

PTS: 1 DIF: Easy REF: 18 (Exhibit 1.3)
TOP: AACSB Analytic | AACSB Communication KEY: Leadership Principles

56. Millard Fuller, who founded the world-renowned Christian housing ministry Habitat for Humanity International with his wife, ended his service as president in 2005. In 2004 Fuller had been forced into assuming a figurehead role since the hiring of a new managing director. What did Fuller do?
a. He distributed critical information to employees.
b. He monitored the environment.
c. He helped the organization adapt to incremental changes.
d. He negotiated salaries, raises, and promotions.
e. He performed ceremonial duties like greeting company visitors.

ANS: E
The figurehead role is an interpersonal role in which the manager in that role represents the company in various ways to the external environment.

PTS: 1 DIF: Moderate REF: 18 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Leadership Principles

57. What interpersonal role, as defined by Mintzberg, was the CEO of Whole Foods assuming when he slashed his salary from $1 million to $1 to avoid the huge salary disparities that negatively influence employee morale in many corporations?
a. figurehead
b. monitor
c. leader
d. negotiator
e. spokesperson

ANS: C
In the leader role, managers motivate and encourage workers to accomplish organizational goals.

PTS: 1 DIF: Moderate REF: 18 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Leadership Principles

58. At the death of her husband, Miriam McAllister became the CEO of a company that is the worlds leading manufacturer of kidney dialysis machines. It was believed when she took the position that she would only perform ceremonial duties and would not want to be actively involved in the running of the company. In other words, it was assumed she would be a:
a. resource allocator
b. monitor
c. disseminator
d. spokesperson
e. figurehead

ANS: E
It was assumed that McAllister would perform ceremonial duties.

PTS: 1 DIF: Moderate REF: 18 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Leadership Principles

59. Lorenzo Fluza is the owner and CEO of the company that makes Camper shoes. Mintzberg would describe Lorenzo Fluza as taking a leader role within the organization. This means he spends much of his time:
a. negotiating
b. responding to instrumental change
c. performing ceremonial duties
d. motivating and encouraging its employees to meet their organizational objectives
e. ignoring interpersonal roles

ANS: D PTS: 1 DIF: Difficult REF: 18 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Leadership Principles

60. As described by Mintzberg, a marketing manager who was hired by a manufacturer of plumbing fixtures to operate information booths at more than twenty different international trade shows annually would have the informational role of:
a. entrepreneur
b. resource allocator
c. figurehead
d. communicator
e. spokesperson

ANS: E
In the spokesperson role, managers share information with people outside the firm.

PTS: 1 DIF: Difficult REF: 20 (Exhibit 1.3)
TOP: AACSB Analytic | AACSB Communication KEY: Leadership Principles

61. According to a speech to a forum for retail leaders made by Dr. Hans-Joachim Koerber, Sustained growth is essential. Sustaining growth is a challenge for virtually every company. Koerber is the CEO of Metro Group, Germanys largest retailer, which has more than 2,400 stores in 30 countries. What informational role did Koerber assume?
a. liaison
b. resource allocator
c. figurehead
d. negotiator
e. spokesperson

ANS: E
In the spokesperson role, managers share information with people outside their company.

PTS: 1 DIF: Easy REF: 20 (Exhibit 1.3)
TOP: AACSB Analytic | AACSB Communication KEY: Leadership Principles

62. During a meeting of the Ambulatory Care Nursing Association (ACNA) board of directors, a commitment was made to ask members for their feedback about their experiences with and perceptions of ACNA. The head of the organization said, The essence of being a leader is to make sure the organization knows itself. Then she volunteered to conduct the environmental scanning and share what she learned with the others. What informational roles is she assuming?
a. liaison and spokesperson
b. resource allocator and liaison
c. monitor and disseminator
d. negotiator and monitor
e. spokesperson and liaison

ANS: C
In the monitor role, she conducts environmental scanning. In the disseminator role, she shares what she has learned.

PTS: 1 DIF: Easy REF: 19-20 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Leadership Principles | Environmental Influence

63. At the death of her husband, Miriam McAllister became the CEO of a company that is the worlds leading manufacturer of kidney dialysis machines. Even though she was not expected to, she quickly asked company employees to develop ideas for new products that would lead to organizational growth in a changing environment. The decisional role she took on was that of a(n):
a. leader
b. disseminator
c. resource allocator
d. spokesperson
e. entrepreneur

ANS: E
In the entrepreneur role, managers adapt themselves, their subordinates, and their units to change.

PTS: 1 DIF: Easy REF: 20-21 (Exhibit 1.3)
TOP: AACSB Analytic | AACSB Communication KEY: Leadership Principles

64. Jurgen Strube was the CEO of BASF for ten years. In 2007, he was replaced by Jurgen Hambrecht. Strubes style of management was described as restrained formality. Hambrecht, on the other hand, is known to have an easy affability. What decisional role will the companys middle managers need to assume in order to adapt themselves to the new CEOs different personality?
a. leader
b. disseminator
c. resource allocator
d. spokesperson
e. entrepreneur

ANS: E
In the entrepreneur role, managers adapt themselves, their subordinates, and their units to change.

PTS: 1 DIF: Moderate REF: 20-21 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Leadership Principles

65. Jimmy Wales is the CEO of Wikipedia, a user-generated encyclopedia 42 times the size of Encyclopedia Britannica. At the inception of the online project, Wales had to assume the decisional role of _____ as he dealt with critics of the project who contended that allowing anyone to enter data into the encyclopedia would lead to inconsistencies and misinformation.
a. resource allocator
b. entrepreneur
c. disturbance handler
d. liaison
e. disseminator

ANS: C
The disturbance handler role is played when managers must respond to severe problems demanding immediate attention.

PTS: 1 DIF: Moderate REF: 21 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Leadership Principles

66. In the __________ role, managers adapt themselves, their subordinates, and their units to change.
a. resource allocator
b. entrepreneur
c. disturbance handler
d. liaison
e. disseminator

ANS: B PTS: 1 DIF: Moderate REF: 20-21 (Exhibit 1.3)
TOP: AACSB Reflective Thinking KEY: Leadership Principles

67. In March 2005, Spiegel announced to the media that it was nearing the completion of its corporate restructuring and was one step closer to emerging from Chapter 11 status after filing its proposed joint plan of reorganization. According to Mintzberg, which managerial role would have been adopted in order to make this announcement to the media?
a. environmental
b. controller
c. spokesperson
d. entrepreneur
e. interpersonal

ANS: C
The spokesperson shares information with people outside the company.

PTS: 1 DIF: Moderate REF: 20 (Exhibit 1.3)
TOP: AACSB Analytic | AACSB Communication KEY: Leadership Principles

68. Connie ODay is a middle manager for the publishers of Free Spirit magazine, a publication targeted to women who are not worried about finding a husband or maintaining a house and garden. She spends much of her day conducting interviews with groups of women to determine what they consider most important in their lives. She also keeps an eye on the sales and content of other womens magazines. Which informational role does ODay perform?
a. entrepreneur
b. monitor
c. resource allocator
d. spokesperson
e. liaison

ANS: B
In the monitor role, managers scan their environments for information, actively contact others for information, and because of their personal contacts, receive a great deal of unsolicited information.

PTS: 1 DIF: Moderate REF: 19 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Leadership Principles | Environmental Influence

69. The informational role managers play when they share information they have collected with their subordinates and others in the company is called the __________ role.
a. monitor
b. figurehead
c. resource allocator
d. entrepreneur
e. disseminator

ANS: E PTS: 1 DIF: Moderate REF: 20 (Exhibit 1.3)
TOP: AACSB Reflective Thinking | AACSB Communication KEY: Leadership Principles

70. The sales manager is in charge of monitoring the expense accounts of her sales force. In this decisional role, she acts as a(n):
a. resource allocator
b. entrepreneur
c. disturbance handler
d. monitor
e. disseminator

ANS: A
A resource allocator decides who gets what resources.

PTS: 1 DIF: Easy REF: 21 (Exhibit 1.3)
TOP: AACSB Analytic KEY: Creation of Value

71. In Great Britain, Nestl introduced a candy bar called Yorkie with the slogan Its not for girls! The resulting furor over this sexist campaign required its British managers to spend a great deal of time in the role of:
a. resource allocators
b. entrepreneurs
c. disturbance handlers
d. liaisons
e. disseminators

ANS: C
The disturbance handler role is played when managers must respond to severe problems that demand immediate attention.

PTS: 1 DIF: Easy REF: 21 (Exhibit 1.3)
TOP: AACSB Analytic | AACSB Communication
KEY: Operations Management | Environmental Influence

72. According to Mintzberg, which role would a manager assume if she were trying to convince union members to accept a 25-cent-per-hour reduction in pay in order to keep the manufacturing plant open?
a. resource allocator
b. entrepreneur
c. disturbance handler
d. liaison
e. negotiator

ANS: E
In the negotiator role, managers negotiate schedules, projects, goals, resources, and employee raises.

PTS: 1 DIF: Easy REF: 21-22 (Exhibit 1.3)
TOP: AACSB Analytic | AACSB Communication KEY: HRM

73. An accountant with __________ skill has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses.
a. technical
b. human
c. conceptual
d. motivational
e. interpersonal

ANS: A
Technical skills are the ability to apply the specialized procedures, techniques, and knowledge required to get the job done.

PTS: 1 DIF: Easy REF: 23 TOP: AACSB Analytic
KEY: Individual Dynamics

74. Which type of skills tends to be most important to the success of lower-level managers?
a. decisional skills
b. human skills
c. conceptual skills
d. motivation to manage
e. technical skills

ANS: E PTS: 1 DIF: Moderate REF: 23 (Exhibit 1.4)
TOP: AACSB Reflective Thinking KEY: Individual Dynamics

75. In 2004, Nextel put up a billboard in Cleveland advertising its wireless data service with a mannequin of a laptop user perched on top. The billboard caused fender-benders as drivers gawked, concerned that a distraught soul had climbed up and was ready to jump. A Nextel marketing manager would use __________ skills to determine that the mannequin is creating bad publicity for Nextel.
a. informational
b. conceptual
c. technical
d. interpersonal
e. decisional

ANS: B
Conceptual skills are the ability to see the organization as a whole and understand how its different parts impact each other and its environment.

PTS: 1 DIF: Easy REF: 23-24 TOP: AACSB Analytic
KEY: Individual Dynamics

76. What type of skills tends to be equally important at all levels of management?
a. technical skills
b. human skills
c. decisional skills
d. motivation to manage
e. conceptual skills

ANS: B PTS: 1 DIF: Moderate REF: 23 (Exhibit 1.4)
TOP: AACSB Reflective Thinking KEY: Individual Dynamics

77. Creating a competitive advantage through people relies heavily on the use of which skill to reward people for providing exceptional customer service?
a. motivation to manage
b. conceptual
c. technical
d. interpersonal
e. decisional

ANS: A PTS: 1 DIF: Easy REF: 24
TOP: AACSB Reflective Thinking KEY: Creation of Value | Strategy

78. The ability to perform __________ increases in its importance to success as managers rise through the managerial ranks.
a. interpersonal skills
b. human skills
c. conceptual skills
d. informational skills
e. technical skills

ANS: C PTS: 1 DIF: Difficult REF: 23
TOP: AACSB Reflective Thinking KEY: Individual Dynamics

79. Which skills increase in their importance to success as managers rise through the managerial ranks?
a. human skills and decisional skills
b. informational skills and the motivation to manage
c. conceptual skills and the motivation to manage
d. conceptual skills, technical skills, and human skills
e. human skills and informational skills

ANS: C PTS: 1 DIF: Difficult REF: 23-24 (Exhibit 1.4)
TOP: AACSB Reflective Thinking KEY: Individual Dynamics | Leadership Principles

80. In 2007, Rupert Murdoch, the owner of a global newspaper empire, met with his top executives to determine survival strategies for newspapers in the face of increasing audience migration to online sources of news. Which skills will be most important in developing this strategy?
a. interpersonal skills
b. human skills
c. conceptual skills
d. informational skills
e. technical skills

ANS: C
Conceptual skills are the ability to see the organization as a whole and understand how its different parts affect each other and its environment.

PTS: 1 DIF: Easy REF: 23 TOP: AACSB Analytic
KEY: Leadership Principles

81. Managers need different skills to perform their various roles successfully. A middle manager who assumed a negotiator role when dealing with employees would rely most heavily on his or her __________ skills.
a. decisional
b. human
c. conceptual
d. technical
e. informational

ANS: B PTS: 1 DIF: Easy REF: 23
TOP: AACSB Reflective Thinking | AACSB Communication
KEY: Individual Dynamics | Leadership Principles

82. There have been several studies of managers who fail (derailers) and managers who succeed in climbing the organizational hierarchy (arrivers). At the death of her husband, Miriam McAllister became the CEO of a company that is the worlds leading manufacturer of kidney dialysis machines and encouraged its expansion into other hospital services. McAllister has almost doubled her companys revenues since she took control. As an arriver, McAllister would be:
a. unable to adapt her style of management to what was needed by her subordinates
b. sensitive to others
c. cold, aloof, and arrogant
d. overly ambitious
e. abrasive and intimidating

ANS: B
The number one mistake made by derailers is their insensitivity to others.

PTS: 1 DIF: Easy REF: 24 (Exhibit 1.5)
TOP: AACSB Analytic KEY: Individual Dynamics | Leadership Principles

83. Stan Dali was the most successful salesperson his realty company had ever hired. He quickly was promoted to sales manager, but was never able to reach any higher levels of management because of the way he bullied his employees. Dali is an example of a:
a. derailer
b. staller
c. failure
d. non-arriver
e. laggard

ANS: A
A derailer is a manager who was successful at the beginning, but gets knocked off the fast track.

PTS: 1 DIF: Easy REF: 24 TOP: AACSB Analytic
KEY: Individual Dynamics | Leadership Principles

84. There have been several studies of managers who fail (derailers) and managers who succeed in climbing the organizational hierarchy (arrivers). Which of the following statements describes one of the facts learned from these studies?
a. Arrivers differ significantly from derailers.
b. Arrivers have no weaknesses.
c. Arrivers and derailers both possess two or more fatal flaws regarding how they manage people.
d. The number one mistake of derailers was that they were unable to think strategically.
e. Arrivers are sensitive to the feelings of others.

ANS: E
Both arrivers and derailers are talented. Arrivers have weaknesses just like derailers. Arrivers typically have no more than one fatal flaw. The number one mistake of derailers is that they are insensitive to the needs of others.

PTS: 1 DIF: Moderate REF: 24-25 TOP: AACSB Analytic
KEY: Individual Dynamics | Leadership Principles

85. Inchow Environments, Inc. was once a successful manufacturer of fishing lures. It hired a new CEO who was a derailer. As a derailer, the new CEO:
a. refused to listen to the advice given him by the previous CEO
b. was too flexible
c. preferred to take the role of figurehead
d. could not think strategically
e. is accurately described by all of these

ANS: D
One of many fatal flaws that derailers have is the inability to think strategically.

PTS: 1 DIF: Moderate REF: 25 (Exhibit 1.5)
TOP: AACSB Analytic KEY: Individual Dynamics | Leadership Principles

86. There have been several studies of managers who fail (derailers) and managers who succeed in climbing the organizational hierarchy (arrivers). Which of the following statements describes one of the facts learned from these studies?
a. Derailers are insensitive.
b. Arrivers fail to inform others when things will not be done on time.
c. Arrivers fail to admit mistakes.
d. Arrivers fail to take responsibility for mistakes.
e. There are several significant differences between arrivers and derailers.

ANS: A
The alternatives beginning Arrivers describe derailers, not arrivers. Arrivers have only one fatal flaw, and derailers have at least two fatal flaws.

PTS: 1 DIF: Difficult REF: 24 TOP: AACSB Reflective Thinking
KEY: Individual Dynamics | Leadership Principles

87. As the shift supervisor at a car wash, Jakob is bossy, arrogant, and insensitive to the needs of his subordinates. He is unable to delegate any tasks to the other employees. He will more than likely never be a middle or top manager because he:
a. is a management laggard
b. is a derailer
c. does not understand the importance of synergy
d. is not a hands-on doer
e. is a non-arriver

ANS: B
The number one mistake made by derailers is their insensitivity to others.

PTS: 1 DIF: Difficult REF: 24 (Exhibit 1.5)
TOP: AACSB Analytic KEY: Individual Dynamics | Leadership Principles

88. After six months as a manager, new managers typically believe their job is:
a. to provide negative reinforcement
b. to exercise formal authority
c. to maintain control and avoid delegation
d. people development
e. to solve problems for subordinates

ANS: E
See Exhibit 1.6.

PTS: 1 DIF: Difficult REF: 27 (Exhibit 1.6)
TOP: AACSB Reflective Thinking KEY: Individual Dynamics | Leadership Principles

89. After their first year of managerial experience, managers tend to:
a. exercise more formal authority
b. do less listening and more telling
c. view themselves as the boss
d. use more positive reinforcement
e. do all of these

ANS: D
See Exhibit 1.6.

PTS: 1 DIF: Easy REF: 27-28 (Exhibit 1.6)
TOP: AACSB Reflective Thinking KEY: Individual Dynamics | Leadership Principles

90. After a year as a manager, new managers typically realize their job is:
a. to be a troubleshooter
b. to manage tasks
c. just as they expected
d. people development
e. to be a problem-solver

ANS: D
See Exhibit 1.6.

PTS: 1 DIF: Difficult REF: 27-28 (Exhibit 1.6)
TOP: AACSB Reflective Thinking KEY: Individual Dynamics | Leadership Principles

91. Which of the following management practices can be used by an organization that wants to create a competitive advantage through its employees?
a. self-managed teams
b. employment security
c. high wages contingent on organizational performance
d. sharing information
e. doing all of these

ANS: E
See Exhibit 1.7 for other examples of management practices used to create a competitive advantage through people.

PTS: 1 DIF: Moderate REF: 28-30 (Exhibit 1.7)
TOP: AACSB Reflective Thinking KEY: Creation of Value

92. Leon Dodd is a member of a self-managed team at Standard Aero Alliance, Inc. (SAAI). His teams top priorities are understanding customer requirements and expectations. It would appear that SAAI is:
a. using employee benchmarking
b. allowing its employees to assume various decisional roles
c. letting its teams handle all planning functions
d. using its employees to create a competitive advantage
e. relying more on conceptual skills than human skills

ANS: D
The use of self-managed teams is one management practice suggested as a way to create a competitive advantage through employees. See Exhibit 1.7.

PTS: 1 DIF: Moderate REF: 28 (Exhibit 1.7)
TOP: AACSB Analytic KEY: Creation of Value

Krispy Kreme
Krispy Kreme is a relatively small doughnut seller. It has only 292 stores while Dunkin Donuts has 3,600 outlets in the United States. In spite of its size, Krispy Kreme has been described by many as the hottest brand in America. The companys success in an environment that is not conducive to food operations succeeding is due to a mix of shrewdness, original thinking, and entrepreneurship. The company originated in Winston-Salem, North Carolina, where it still operates a plant that fills a 50-pound bag with doughnut mix every seven seconds. It recently opened a new plant in Effingham, Illinois, that fills a bag every three seconds. This second plant allows the company to reduce costs while increasing its output. The company began in the mid-1930s when Vernon Rudolph bought a secret recipe for yeast doughnuts from a French pastry cook. Rudolph ran the company until his death in 1973 when he died without naming a successor. His death caused the company problems for the next decade.

93. Refer to Krispy Kreme. The building of the Effingham plant increased the __________ of the Krispy Kreme operation.
a. effectiveness
b. synergy
c. advocacy
d. efficiency
e. empathy

ANS: D PTS: 1 DIF: Moderate REF: 7
TOP: AACSB Analytic KEY: Creation of Value

94. Refer to Krispy Kreme. Which management function had Rudolph not performed at the time of his death?
a. planning
b. marketing
c. controlling
d. leading
e. organizing

ANS: A PTS: 1 DIF: Moderate REF: 9
TOP: AACSB Analytic KEY: Strategy

95. Refer to Krispy Kreme. As the CEO of Krispy Kreme, Rudolph would have been responsible for:
a. developing employees commitment to the company
b. creating a positive organizational culture
c. monitoring the businesss environment
d. creating a context for change
e. doing all of these things

ANS: E PTS: 1 DIF: Moderate REF: 13-14 (Exhibit 1.2)
TOP: AACSB Analytic KEY: Leadership Principles

96. Refer to Krispy Kreme. As the entrepreneur who founded the company, Rudolph had a(n) ______ role.
a. managerial
b. informational
c. decisional
d. interpersonal
e. organizational

ANS: C PTS: 1 DIF: Moderate REF: 20-21
TOP: AACSB Analytic KEY: Individual Dynamics | Leadership Principles

97. Refer to Krispy Kreme. To be successful, managers need four skills. The fact that Rudolph was a skilled baker when he purchased the secret doughnut recipe indicates he had __________ skills.
a. technical
b. interpersonal
c. conceptual
d. human
e. motivational

ANS: A PTS: 1 DIF: Moderate REF: 23
TOP: AACSB Analytic KEY: Individual Dynamics | Leadership Principles

Volkswagen
In August 2005, Bernd Pischetsrieder, chief executive of Volkswagen, announced further restructuring plans for the company. VW is Europes largest carmaker and needs to make itself profitable once again. To do so, VW will cut thousands of jobs in the coming years through natural attrition, early retirement, and buying workers out of their contracts. The carmaker is also considering whether its component

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