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Test Bank for Fundamentals Of Management, 11rth Edition

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    1 Fundamentals of Management, 11e (Robbins) Chapter 1 Managers and Management in Today's Workplace 1) Which one of the following is a common myth about the study of management? A) Management is just common sense. B) Managers need to be well disciplined in all of the business areas. C) Managers are found in all types of organizations, large and small. D) Many of today's managers are minorities. Answer: A Explanation: Students might be surprised to know that the acad emic study of management is filled with insights, based on extensive research, which often run counter to what seems to be common sense. That's why we decided to tackle head - on this common - sense perception by opening each chapter with a particular "managem ent myth" and then "debunking" this myth by explaining how it is just a common - sense myth. Diff: 2 AACSB: Analytical thinking LO: 1.1: Tell who managers are and where they work. Question Category: Analytical 2) An organization is ________. A) the physi cal location where people work B) any co llection of people who perform similar tasks C) a deliberate arrangement of people to accomplish some specific purpose D) a group of individuals focused on profit - making for their shareholders Answer: C Explanation: By definition, an organization is a de liberate arrangement of people brought together to accomplish some specific purpose or goal. Diff: 2 AACSB: Reflective thinking LO: 1.1: Tell who managers are and where they work. Question Category: Concept

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    2 3) A ll organizations have ________ that def ine(s) the organization's purpose and reason for existing. A) limits B) rules C) structure D) goals Answer: D Explanation: An organization's goals define its purpose and reason for existing. For example, Mark Zuckerberg, CEO of Facebook, facing increased public scrutiny over things his company was doing and not doing in relation to protecting its community of users and the glo bal community at large, stated that his company's goal was to fix those important issues and to get back to its original purpose – pr oviding meaningful interactions between family and friends. Rules can help an organization achieve its goals, but rules do no t explicitly define those goals. Organizational structure defines and limits how people within an organization interact, but struct ure on its own is not something that serves to define an organization's purpose. Diff: 2 AACSB: Reflective thinking LO: 1.1 : Tell who managers are and where they work. Question Category: Concept 4) One of the common characteristics of all organizations is ________ define(s) and limits the behavior of its members. A) a set of written bylaws B) an explicit goal C) a structure D) a stated purpose Answer: C Explanation: An organization is structured in some way that defines and limits the behavior of its members. Within that structure, rules, regulations, and policies might guide what people can or cannot do; some members will supervise other members; work teams might be formed or disbanded; or job descriptions might be created or changed so organizationa l members know what they're supposed to do. Diff: 2 AACSB: Reflective thinking LO: 1.1: Tell who managers are and where the y work. Question Category: Concept

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    3 5) A college Spanish club is an example of an organization because it is comprised of people who ________. A) share the same values, traditions, and customs B) share the same goals and values C) share goals and function within a common structure D) function under the same set of rules and regulations Answer: C Explanation: Members of an organiza tion must not only share the same goals, they must all work within a common structure to attain those goals. To grasp this dis tinction, compare two baseball players on different teams: both may share the same goal of winning the World Series, but they belo ng to different organizations. Similarly, simply sharing values or rules is not sufficient to identify or differentiate an org anization. To make up an organization, people need to belong to a shared structure or institution and have common goals. Diff: 2 A ACSB: Analytical thinking LO: 1.1: Tell who managers are and where they work. Question Category: Application 6) Which one of the following is a key difference between managerial and nonmanagerial employees? A) Managerial employees receive higher pay co mpensation. B) Nonmanagerial employees have less formal education. C) Nonmanagerial employees do not oversee the wor k of others. D) Managerial employees work longer hours. Answer: C Explanation: The distinction between managerial and nonmanagerial employ ees resides solely in overseeing work. Managers have the responsibility of supervising and directing work of others. Nonmanagerial employees do not have this responsibility. Managers may or may not receive better compensation, have more education, or work longer hours than nonmanagers — so none of these criteria can serve to distinguish between the two. Diff: 1 AACSB: Re flective thinking LO: 1.1: Tell who managers are and where they work. Question Category: Analytical

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    4 7) The primary job of a manager is t o ________. A) make decisions that help an organization grow B) tackle tasks that are too difficult for nonmanagerial employees C) coordinate between organization leaders and ordinary employees D) direct and oversee the work of others Answer: D Explanatio n: Though managers may make important decisions, tackle difficult tasks, or coordinate between leaders and lower - lev el employees, a manager's primary job is to supervise the work of others. The supervisory role is what distinguishes managers from nonmanag ers. Diff: 1 AACSB: Reflective thinking LO: 1.1: Tell who managers are and where they work. Question Category: Con cept 8) The work of a manager ________. A) is strictly limited to overseeing and monitoring the work of others B) may involve performing t asks that are not related to overseeing others C) involves only high - level tasks that require a sophisticated skill set D) does not involve interaction with nonmanagerial employees Answer: B Explanation: The primary job of a manager is to oversee work of others. However, this does not preclude a manager from performing ta sks on his or her own that do not involve supervision of others. For example, an insurance claims supervisor might process claims in addition to coordinating the work activities of other claims employees. Tasks performed by managers are not necessarily hig h level and may involve interaction with nonmanagerial workers, so neither of these choices is correct. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Co ncept 9) Supervisor is another name for which one of the following? A) team leader B) middle manager C) first - line manager D) top manager Answer: C Explanation: An organization's management hierarchy typically follows this progression: first - line manage r, middle manager or team leader, and top manager. This sequence usua lly reflects the degree to which managers are involved in planning and making higher - order decisions. The lowest position in the sequence, the first - line manager, is generally more involv ed in supervising others than making higher - order decisions, so this individual is often termed a supervisor . Managers higher in the chain of command do less supervising than first - line managers so they are less likely to be called a supervisor . Diff: 1 LO : 1.1: Tell who managers are and where they work. Question Category: Concept

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    5 10) Which one of the following types of managers is responsible for making organization - wide decisions and establishing the plans and goals that affect the entire organization? A) team leader B) top manager C) department head D) project leader A nswer: B Explanation: In a typical management hierarchy, the individuals responsible for making higher - order decisions that involve planning, goals, policy, and philosophy are the top m anagers. Team leaders are generally first - line managers at the bottom of the hierarchy who are least involved with higher - order goals. Department heads and project leaders are titles for middle managers who are more involved with the implementation rather than the making of goals and policy. Diff: 1 LO: 1.1: Tell who managers are and where they work. Question Category: Concept 11) Which one of the following is an important job responsibility for a middle manager? A) defining the organization's long - term goals B) translating goals defined by top managers int o action C) helping top managers define goals D) performing tasks that are not related to long - term goals Answer: B Explanation: In an organization, top management typically defines long - term goals, t hen enlists middle managers to find ways to achieve th ose goals. Thus, middle managers are not involved in identifying long - term goals in any way. The job of a middle manager is very involved with long - term goals, it just doesn't involve defining those goa ls. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Concept 12) Which one of the following identifies a manager who does NOT typically supervise other managers? A) unit chief B) shift manager C) vice president D) division manager Answer: B Explanation: All but first - line ma nagers are responsible at least in part for overseeing the work of other managers. The shift manager is the only first - line manager in this group. A unit chief and division manager are both titles for m iddle managers who oversee other managers. A vice pres ident is a top management position that is usually heavily involved with the management of other managers. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Concept

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    6 13) Of the following, which one is the lowest level of mana gement? A) a nonmanagerial employee B) an individual involved in defining the organization's philosophy C) a vice president D) a middle manager Answer: D Explanation: The middle manager represents th e lowest managerial position among the choices given here, but it is not the lowest position in the managerial hierarchy. Individuals who rank above a middle manager include a vice president and an individual who defines org anizational philosophy, both of whom would qualify as top managers. Finally, a nonmanagerial employee is lowest in the hierarchy among these choices, but this individual is not a part of management. Diff: 2 LO: 1.1: Tell who managers are and where they wo rk. Question Category: Concept 14) All levels of management between the supervisory level and the top level of the organization are termed ________. A) middle managers B) first - line managers C) supervisors D) team leaders Answer: A Explanation: Middle management is defined as those i ndividuals who are between top management and the team leaders, supervisors, and other first - line managers who make up the supervisory level of management. Any manager who is (1) not a part of top management and (2) not prim arily a supervisor of nonmanager ial employees is classified as a middle manager. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Concept 15) Which one of the following levels of management is associated with positions such as executive vice president, ch ief operating officer, chief executive officer, and chairperson of the board? A) team leaders B) middle managers C) first - line managers D) top managers Answer: D Explanation: All of the titles listed above — executive vice p resident, chief operating office r, chief executive officer, and chairperson of the board — are executive positions that are typically part of an organization's top management. Team leaders are types of first - line managers and are not part of top management. Any positions that include execu tive as part of the title would eliminate middle managers as a choice. Diff: 1 LO: 1.1: Tell who managers are and where they work. Question Category: Application

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    7 16) The "father" of scientific management was ________. A) Henri Fayol B) Robert L. Katz C) Henry Mintzberg D) Frederick Winslow Taylor Answer: D Explanation: Fayol worked about the same time period as Taylor and was also fairly "scientific" in his approach. However, Taylor was the person who stressed being "scientific" and coined the term sci entific management in his 1911 book. Mintzberg and Katz also contributed to ideas about scientific management, but both of these thinkers came later. Diff: 2 LO: 1.1: T ell who managers are and where they work. Question Category: Concept 17) Taylor began to develop his theory of ________ after a result of viewing workers in steel companies. A) the functions of management B) ethics - based management C) management skills D ) scientific management Answer: D Explanation: Taylor's scientific management theory posited that efficiency in organizations could be improved by studying organizations objectively and systematically. The functions of management were developed by Fayol. Management skills were identified by Katz. Ethics - based management is not a known theo ry of management. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Concept 18) A major contribution that Taylor made to the study of man agement was ________. A) to measure efficiency on a 4 - star scale B) to identify the one best way to get a job done C) to identify the three best ways to get a job done D) to measure inefficiency on a 4 - star scale Answer: B Explanation: Taylor measured efficiency and inefficiency, but he did not rank them on a star scale. What Taylor did do was collect data to identify the "one best way" to do a job; that is, the most efficient and effective way to complete a task. Taylor focused on only a single best way. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Conce pt

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    8 19) Which one of the following did Taylor NOT find appalling in his study of workers in steel companies? A) Workers "took it easy" on the job. B) W orkers employed different techniques for the same job. C) Workers would only attempt to perform a job if they were shown to have aptitude for it. D) Worker output was only about one - third of what was possible. Answer: C Explanation: Taylor indeed discove red that workers did not work hard on the job, did not have standardized methods and techniques for comp leting a task, and only accomplished a fraction of their theoretical work potential. All of the above dismayed Taylor greatly, convincing him that the s ituation could be greatly improved with the application of standardized work rules and task methodology. The one thing in the list that Taylor did not discover was workers who refused to work at jobs they did not have aptitude for. In fact, he found that t he reverse situation existed — workers performed jobs that they had no aptitude for — this constituted yet a nother practice that was appalling to Taylor. Diff: 3 LO: 1.1: Tell who managers are and where they work. Question Category: Concept 20) Part of what defines an organization is its purpose. Answer: TRUE Explanation: The goals or purpose of an organiza tion define the organization's reason for existing. Without a common purpose, a group of individuals does not qualify as an organization. Diff: 2 LO: 1 .1: Tell who managers are and where they work. Question Category: Concept 21) All organizations have a structure that in some ways serves to define and limit the behavior of members of the organization. Answer: TRUE Explanation: The structure of an org anization, whether formal or informal, defines how organization members interact. For example, a school' s informal guidelines might determine how teachers fraternize. A school's formal guidelines might set up rules for interaction between students and teac hers. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Concept 22) In o rder to be considered a manager, an individual must direct or oversee the work of others. Answer: TRUE Explanation: Directing and overseeing work distinguishes managers from nonmanagerial employees. Managers direct and oversee work of others. Nonmana geri al employees have no supervisory responsibilities. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Concept

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    9 23) A manager does not work directly on tasks for the organization. Answer: FALSE Explanation: Managers may w ork on tasks in addition to their supervisory duties. For example, a manager of a shop that designs clothing may also create designs on his or her own. Diff: 2 LO: 1.1: Tell who managers are and where they work. Question Category: Concept 24) Supervisor s an d team leaders may both be considered first - line managers. Answer: TRUE Explanation: First - line managers are managers who oversee workers directly and are involved in day - to - day operations. For example, a team manager in an auto assembly plant might over see and help solve everyday problems that arise on the assembly line. Higher - level managers typically would not spend time helping to solve assembly line problems directly. Diff: 1 LO: 1.1: Tell who managers are and where they work. Question Category: Co ncept 25) In a short essay, compare the tasks, priorities, and responsibilities of first - line, middle, and top managers. Answer: First - line managers are the lowest level of management and manage the work of nonmanagerial individuals who are directly invo lved with the production or creation of the organization's products. First - line managers are often called supervisors but may also be called line managers, office managers, or even foremen. First - line managers spend more time leading than other manager s an d less time planning. Middle managers include all levels of management between the first - line level and the top level of the organization. These managers manage the work of first - line managers and may have titles such as department head, project leade r, p lant manager, or division manager. Middle managers spend considerably less time leading than first - line managers and considerably more time organizing. Top managers are responsible for making organization - wide decisions and establishing the plans and goal s that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, chief executive officer, or chairman of the board. Top managers spend more time plan ning and organizing than other managers and less time leading. Diff: 2 AACSB: Analytical thinking LO: 1.1: Tell who managers are and where they work. Question Category: Concept

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    10 The Perfect Manager (Scenario) Brenda Kraft has proven herself to be an able manager. Her section has a high project completion rate with the highest - quality product and the lowest defects in her division. In addition, she accomplishes this with fewer full - time people than other manager s. Coworkers say that the secret of her succes s is in her ability to determine what needs to be done and by whom, and her understanding of the basic "management processes." 26) Brenda's high project completion rate indicates that she is ________. A) an ef ficient manager B) an effective manager C) a g ood spokesperson D) a good resource allocator Answer: B Explanation: Completing a high number of projects is accomplishing a goal. Goal - accomplishment is a measure of the effectiveness of a manager. "An effic ient manager" is incorrect because completing projects says nothing about how efficient Brenda is. In a similar way, "a good spokesperson" and "a good resource allocator" are not correct as there is no indication in the paragraph of Brenda's skill as an in formation provider (spokesperson) or decision - maker (resource allocator). Diff: 2 AACSB: Application of knowledge LO: 1.2: Define management. Question Category: Application 27) If Brenda accomplished her projects with high - quality results, but she took more time than other managers in the process, you could say that as a manager she was ________. A) efficient, but not effective B) a leader, but not a top manager C) project oriented, but not effective D) effective, but not efficient Answer: D Explanatio n: Accomplishing goals makes Brenda effective . Taking too much time makes Brenda inefficient. These two qualities — high quality results coupled with longer than normal delivery times — say nothing about Brenda's ability to be a leader. Diff: 2 AACSB: Applic ation of knowledge LO: 1.2: Define management . Question Category: Application

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    11 28) Another term for efficiency is ________. A) doing the right things B) doing things right C) making sure things get done D) doing things at the right time Answer: B Explanation: Efficiency is often termed doing thin gs right because the phrase denotes the manner in which tasks are carried out. The "right" way or efficient way correlates with a minimum of wasted time, money, en ergy, and resources. "Doing the right things," on the other hand, refers to effectiveness, no t efficiency. Making sure that things get done and doing things at the right time are both often part of an efficient undertaking, but neither effort could be said to define efficiency. Diff: 2 LO: 1.2: Define management. Question Category: Concept 29) Which one of the following might be an example of increased efficiency in manufacturing? A) cutting the amount of labor required to make the product B) cutting the price of the product C) increasing sales of the product D) increasing advertising for the pr oduct Answer: A Explanation: Efficiency must involve reducing the input - to - output ratio in some way. Cutting the amount of labor reduces the amount of input and so marks an increase in efficiency. Cutting the price does not affect the amount of resources and labor that go into the product, nor does it improve the product itself, so it is not an efficiency measure. Increasing sales and advertising similarly do not change the input - output ratio so they do not increase efficiency. Diff: 3 AACSB: Analytical thinking LO: 1.2: Define management. Question Category: Application 30) Another term for effectiveness is ________. A) doing the right things B) doing things ri ght C) doing things intelligently D) doing things when necessary Answer: A Explanation: Eff ectiveness is said to be "doing the right thin gs" because effectiveness is concerned with obtaining results and reaching goals. Doing things "in the right way" results in efficiency rather than effectiveness. Note that an enterprise can be effective — i.e., it can attain goals — without being efficient in such areas as keeping costs and resources down. Doing things intelligently is clearly part of an effective effort without being critical to it. The same can be said of doing things when necessary — it is not a c ritical part of an effective effort. Diff: 2 L O: 1.2: Define management. Question Category: Concept

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    12 31) Effectiveness is synonymous with ________. A) cost minimization B) smart management C) goal attainment D) efficiency Answer: C Explanation: Effectiv eness is concerned with ends as opposed to me ans. Being effective means "getting the job done" (attaining goals), while being efficient is concerned with "how the job got done" and such things as cost minimization. While effective operations usually featur e smart management, the two are not necessari ly synonymous. Diff: 2 LO: 1.2: Define management. Question Category: Concept 32) Efficiency refers to ________. A) the relationship between inputs and outputs B) the additive relationship between inputs and outputs C) the inverse relationship between i nputs and outputs D) decreasing inputs only Answer: A Explanation: Mathematically, efficiency is measured as a ratio of inputs to outputs. For example, in physics the ratio of input energy to output energy def ines a machine's efficiency. The same princip les apply to management. Efficiency is measured as the ratio of input energy, or other resources such as costs or labor, to the amount of product or output created. The input - output ratio is neither additive nor inverse but rather directly proportional in some way. Finally, though decreasing inputs can increase efficiency, it is not the only way to increase efficiency. Diff: 2 LO: 1.2: Define management. Question Category: Concept 33) Good management strives f or ________. A) low efficiency and high effectiveness B) high efficiency and low effectiveness C) high efficiency and high effectiveness D) moderate efficiency and moderate effectiveness Answer: C Explanation: High efficiency and high effectiveness are b oth things that managers seek to obtain. High efficiency is associated with minimal waste and a maximum of production. High effectiveness is associated with success in achieving goals. Low or moderate measures of efficiency or effe ctiveness are clearly inf erior to a high amount of each quality. Diff: 2 LO: 1.2: Define management. Question Category: Concept

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    13 34) A candy manufacturer would increase both efficiency and effectiveness by making ________. A) better candy at the same cos t B) better candy at a l ower cost C) the same candy at a lower cost D) the same candy at the same cost Answer: B Explanation: Increasing efficiency involves making the product at lower cost. Increasing effectiveness means making a better product. So incr easing efficiency and ef fectiveness would entail making a better product at a lower cost. Any other combination of the two variables — not improving the cost or the quality of the candy — would not be an improvement in both efficiency and effectiveness. Diff: 3 AACSB: Analytical thi nking LO: 1.2: Define management. Question Category: Application 35) A candy manufacturer that made candy at a lower cost without improving the quality of the candy could be said to ________. A) increase effectiveness without inc reasing efficiency B) in crease efficiency without increasing effectiveness C) increase both effectiveness and efficiency D) decrease both effectiveness and efficiency Answer: B Explanation: Lowering cost is a measure of increased efficiency. Making better candy is a measure of increased effectiveness. So lowering cost for unimproved candy shows an increase in efficiency but not effectiveness. Diff: 3 AACSB: Analytical thinking LO: 1.2: Defi ne management. Question Category: Application 36) Effectiveness refers to the relation ship between inputs and outputs. Answer: FALSE Explanation: Efficiency is concerned with maximizing the output - to - input ratio. Effectiveness, on the other hand, refer s not to how well resources are used but to which resources to use, and whether or not t hose resources help the organization attain its goals. Diff: 2 LO: 1.2: Define management. Question Category: Concept

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    14 37) A goal of efficiency is to minimize output costs while maximizing input costs. Answer: FALSE Explanation: The goal of efficiency is the opposite — to maximize outputs while minimizing inputs. An efficient operation uses the fewest resources to generate the greatest amount of product. Diff: 2 LO: 1 .2: Define management. Question Category: Concept 38) Effectiveness refers to the att ainment of the organization's goals. Answer: TRUE Explanation: Effectiveness is concerned with "doing the right things" — choosing the tasks that will help the organizat ion achieve its goals. Efficiency, on the other hand, refers to "doing things right," t hat is, once tasks are chosen they are done with a minimum of waste. Diff: 2 LO: 1.2: Define management. Question Category: Concept 39) Managers who are effective at meeting organizational goals always act efficiently. Answer: FALSE Explanation: A man ager may be effective but not efficient. For example, a manager may excel at achieving goals but waste a lot of money, energy, and resources in achieving them. Diff: 3 LO: 1.2: Define management. Question Category: Concept 40) In a short essay, dis cuss the difference between efficiency and effectiveness. Answer: Efficiency refers to getting the most output from the least amount of input. Efficiency is often referred to as "doing things right" — that is, performing a task with a minimum of wasted time , ene rgy, labor, and resources and a maximum of the product being created. A mathematical measure of efficiency is given by the ratio of input to output. The smaller the input - to - output ratio, the greater the efficiency of the process. Effectiveness is of ten d escribed as "doing the right things" — that is, those work activities that will help the organization reach its goals. Where efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organi zatio nal goals. Diff: 2 AACSB: Analytical thinking LO: 1.2: Define management. Question Category: Concept

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    15 41) In a short essay, explain through examples how a process can be (a) efficient but not effective and (b) effective but not efficient. Answer: (a) Efficient but not effective: A craftsman building a wooden table may be highly efficient in the way he uses his time, energy, and wood in producing his product. However, despite this efficiency, the craftsman may still end up with a rickety table, ther eby not fulfilling his goal of building a strong, sturdy table and failing to be effective. (b) Effective but not efficient: A craftsman may be inefficient and waste a great deal of time, energy, and wood in building a table. However, the table itself can turn out to be strong, sturdy, and beautiful, thereby fulfilling the goal of the process and qualifying the craftsman as effective. Diff: 2 AACSB: Analytical thinking LO: 1.2: Define management. Question Category: Application The Perfect Manager (Scena rio) Brenda Kraft has proven herself to be an able manager. Her section has a high project completion rate with the highest - quality product and the lowest defects in her division. In addition, she accomplishes this with fewer full - time people than other m anag ers. Coworkers say that the secret of her success is in her ability to determine what needs to be done and by whom, and her understanding of the basic "management processes." 42) Brenda's ability to determine what needs to be done and by whom is evide nce that she excels at which management function? A) planning B) controlling C) leading D) organizing Answer: D Explanation: Good organizers excel at determining the right job for the right person. Planning may include a minor element of delegating, as a pla nner must map out future tasks. Leading includes an element of directing, which also involves delegating. However, neither planning nor leading is as directly involved in delegating as organizing is. Finally, controlling, largely a monitoring activity, has little to do with delegating. Diff: 2 AACSB: Application of knowledge LO: 1.3: Describe what managers do. Question Categ ory: Application

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