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Test Bank for Modern Management, 15th Edition

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    1 Modern Management, 15e (Certo) Chapter 1 Introducing Modern Management: Concepts and Skills 1) ________ managers are those who lead manufacturing operations that produce the clothes we wear, the food we eat, and the automobiles we drive. A) Personnel B) Plant C) Sales D) Accounting E) Human Resources Answer: B Learning Obj: LO 1.1: An understanding of a manager's task Difficulty: Moderate Classification: Concept 2) Sara is a manager in a food processing company. Her primary function is to see that organizational goals are achieved. Which of the following must she discourage in order to promote this? A) Ben spends a lot of time on Facebook, but gets his work done on time. B) Ted organizes an interdepartmental soccer game every month. C) Ashley's consumer relations activities for the company sometimes delay her work. D) During lull periods at work, Sally works on her Master's thesis. E) Clare is the top performer in the department, but has no interest in the industry. Answer: C Learning Obj: LO 1.1: An understanding of a manager's task AACSB: Analytical Thinking Difficulty: Challenging Classification: Application 3) Management strives to encourage individual activity that will ________. A) promote the individual's growth B) always produce outstanding results C) utilize the maximum amount of resources D) lead to reaching organizational goals E) always generate the highest revenue Answer: D Learning Obj: LO 1.1: An understanding of a manager's task Difficulty: Moderate Classification: Concept

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    2 4) When devising goals for his team to achieve, which of the following points should Kevin consider most important? A) his career goals B) individual abilities C) internal politics D) organizational goals E) employee goals Answer: D Learning Obj: LO 1.1: An understanding of a manager's task AACSB: Analytical Thinking Difficulty: Moderate Classification: Application 5) Which of the following statements is true for the management function? A) It refers to the activities that make up the management process. B) It is a one-time function in an organization. C) It is a series of continuing and unrelated activities. D) It involves and concentrates on reaching individual goals. E) It does not consider the people aspect of organizations. Answer: A Learning Obj: LO 1.1: An understanding of a manager's task Difficulty: Challenging Classification: Concept 6) Jacob, an upper-level manager, recently saw a project fail because he did not establish objectives for all important organizational areas during the initial stages. Jacob made a mistake during the ________ stage of the management process. A) organizing B) influencing C) controlling D) monitoring E) planning Answer: E Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application

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    3 7) Which of the following is an error managers make during the planning stage of management? A) not establishing departments appropriately B) not emphasizing coordination of organization members C) not exploring enough viable alternatives for reaching objectives D) not monitoring progress in carrying out plans E) not taking the time to communicate properly with organization members Answer: C Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application 8) ________ involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed. A) Organizing B) Influencing C) Controlling D) Monitoring E) Planning Answer: E Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept 9) ________ includes determining tasks and groupings of work. It should not be rigid, but adaptable and flexible to meet challenges as circumstances change. A) Organizing B) Influencing C) Controlling D) Monitoring E) Planning Answer: A Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept

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    4 10) Neil is the plant manager at Serieux Manufacturing. He has just been given the production targets for the month and has determined the activities necessary to achieve these. He now has to decide who will perform the various activities best so that the output will be maximized, and he must assign the activities to those workers. Neil is performing the ________ function of management. A) organizing B) influencing C) controlling D) monitoring E) planning Answer: A Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Challenging Classification: Application 11) Which of the following is an error managers make during the organizing stage of management? A) not exploring enough viable alternatives for reaching objectives B) not establishing appropriate performance standards C) establishing improper communication networks D) not monitoring progress in carrying out plans E) establishing inappropriate spans of management Answer: E Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Challenging Classification: Application 12) Seth, a manager in a growing organization, believes that creating departments leads to the formation of barriers in an organization. Not establishing departments appropriately can be a huge management mistake in the ________. A) organizing process B) influencing process C) controlling process D) monitoring process E) planning process Answer: A Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application

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    5 13) Which of the following situations best demonstrates an error made during the organizing stage of management? A) LMN Tree has embarked on a new long-term project. Though the project is progressing, employees feel that there were many better ways to achieve the desired result. B) Vista International took on a project at short notice and wasn't able to go into details of the strategy. As a result, some departments have clear objectives, while others do not. C) The project team at Walton's is dissatisfied with the functioning of the department, but has no communication system through which they can convey their concerns to the management. D) Though DLB's projects are usually very similar, employees have no way of comparing performance as there are no set standards. E) Two teams at Crimson Blue had been working separately on a project for three weeks before they discovered that there was a lot of duplicated effort. Answer: E Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Challenging Classification: Application 14) ________ can be defined as guiding the activities of organization members in appropriate directions. A) Organizing B) Influencing C) Controlling D) Monitoring E) Planning Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept 15) Roland, a firm believer in management policies, always manages his team by the book. His team members agree that he is more of a manager than a leader. This indicates that Roland should work on ________ his team. A) organizing B) influencing C) controlling D) monitoring E) planning Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application

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    6 16) Becky's department has seen a number of layoffs in the last two months, and employee morale is very low. This is affecting the work atmosphere and productivity is declining. In this situation, the department manager's primary task will be to ________. A) organize B) influence C) control D) monitor E) plan Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application 17) Motivating employees to perform better so that they can achieve the organization's goals is known as ________. A) organizing B) influencing C) controlling D) monitoring E) planning Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept 18) ________ is the management function through which managers compare present performance to pre-established performance standards. A) Organizing B) Influencing C) Controlling D) Monitoring E) Planning Answer: C Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept

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    7 19) Gathering information that measures recent performance within the organization is part of the ________ management function. A) motivating B) controlling C) influencing D) organizing E) planning Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Concept 20) Gayle has not established appropriate performance standards for her team. This is a fault in the ________ function of management. A) organizing B) influencing C) controlling D) monitoring E) planning Answer: C Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Application 21) Which of the following is an error managers frequently make during the controlling function of management? A) not establishing departments appropriately B) not taking the time to communicate properly with organization members C) establishing improper communication networks D) not monitoring progress in carrying out plans E) not exploring enough viable alternatives for reaching objectives Answer: D Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application

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    8 22) George is identifying what tasks need to be completed and how many tasks each employee can effectively complete each day. George's activities are a part of the ________ function. A) planning B) organizing C) influencing D) evaluating E) controlling Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Concept 23) Which managerial function is primarily focused on motivating, leading, directing, or actuating activities? A) planning B) organizing C) influencing D) evaluating E) controlling Answer: C Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Concept 24) Influencing as a managerial function is also commonly referred to as Motivating, Leading, Directing, or ________. A) Driving B) Controlling C) Actuating D) Monitoring E) Designing Answer: C Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Challenging Classification: Concept 25) The four basic management functions are planning, organizing, influencing, and controlling. Answer: TRUE Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept

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    9 26) Planning involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed. Answer: TRUE Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept 27) Planning is concerned with setting objectives for organizational success, while controlling is concerned with monitoring the actual performance of the organization's success. Answer: TRUE Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Challenging Classification: Concept 28) Define management and explain how the four functions of management are related. Answer: Management is the process of reaching organizational goals by working with and through people and other organizational resources. Planning, organizing, influencing, and controlling, the four functions of management, are integrally related and therefore cannot be separated in practice. Managers use these activities solely for reaching organizational goals. Organizing is based on well-thought-out plans developed during the planning process, and influencing systems must be tailored to reflect both these plans and the organizational design used to implement them. The fourth function, controlling, involves possible modifications to existing plans, organizational structure, or the motivation system used to develop a more successful effort. Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Concept 29) Discuss common mistakes managers may make when carrying out the various management functions. Answer: In the planning function, managers may make their plans too risky and not explore alternatives for reaching objectives. In the organizing process, managers may work to structure their organizations without reflecting on the firm's overall plans and strategy. Additionally, in organizing a manager may not emphasize coordination of the firm's resources. In the leading function, managers may not take the time to communicate the firm's overall plans and goals with employees throughout the levels of the organization. Additionally, managers may not understand the value of their leading and instead just be focused on managing. In the controlling function, managers sometimes do not clearly see the connection between the planning and controlling functions and therefore may not be monitoring the firm's progress in carrying out the organization's goals or establish appropriate performance standards towards attainment of those goals. Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Challenging Classification: Application

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    10 30) ________ refers to all the organizational assets available for activation during the production process. A) Supplies B) Plans C) Technologies D) Strategies E) Resources Answer: E Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept 31) ________ resources are those ingredients that are used directly in the manufacturing of products. A) Hardware B) Capital C) Technology D) Raw material E) Monetary Answer: D Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept 32) ________ resources refer to the machines used during the manufacturing process. A) Hardware B) Capital C) Technology D) Raw material E) Monetary Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Concept 33) Capital resources can be a major factor in ________. A) the net profits the organization generates at the end of the financial year B) the ingredients used directly in the manufacturing of products C) maintaining desired production levels D) all the financial assets that the organization possesses E) the amounts of money that managers use to purchase goods and services for the organization Answer: C Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Challenging Classification: Concept

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    11 34) Ben is a manager at Transit Logistics, a logistics company involved in transportation and storage. He is in charge of monitoring the schedules of the truck drivers who transport the goods. In this scenario, the capital resource(s) of the organization is/are the ________. A) work-schedule B) transported goods C) manager D) drivers E) trucks Answer: E Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application 35) Green Energy Inc. (GEI) is involved in obtaining energy from natural resources. As a manager at this organization, Jim must use his resources and strive to be both effective and efficient. To be an effective manager, Jim must ________. A) focus on GEI's monetary resources more than its human resources B) expand GEI's capital and help the organization's growth, even if that is not their goal C) update knowledge by organizing training for all managers D) use GEI's resources to attain the organization's goals E) maximize the use of GEI's human and capital resources Answer: D Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application 36) When referring to efficiency during the manufacturing process, being efficient means that ________. A) a small proportion of total resources contributes to productivity B) a small proportion of total skilled employees contributes to productivity C) an equal proportion of skilled and unskilled employees contributes to productivity D) a large proportion of resources contributes to productivity E) a small proportion of total human and capital resources contributes to productivity Answer: D Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Concept

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    12 37) The more resources unused during the production process, the more ________ the manager. A) inefficient B) efficient C) ineffective D) effective E) efficient and ineffective Answer: A Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Concept 38) As a manager in a manufacturing plant, Rex is not utilizing all his resources during the production process, but due to the high demand for the plant's products, he can get an extremely high price per unit sold and thus absorb inefficiency costs. In this scenario, as a manager Rex is ________. A) efficient without being effective B) effective without being efficient C) effective and efficient D) neither effective nor efficient E) highly efficient but not effective Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application 39) Managerial efficiency is the proportion of total organizational resources that contribute to productivity during the manufacturing process. The ________ this proportion, the more ________ the manager. A) lower; effective B) higher; efficient C) lower; efficient D) higher; ineffective E) higher; inefficient Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept

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    13 40) Which of the following situations demonstrates effectiveness but not efficiency? A) Workers at MNS worked overtime for two weeks, but were unable to achieve their target production. B) Managers at MNS aimed to complete a particular project by August, but only completed it in September. C) The manager told Stella to do a report, even though Ray was better qualified for the task. However, Stella managed it successfully. D) Following a number of layoffs, Gianna's team was very demotivated and hence the performance of the department suffered. E) MNS aimed to complete construction of the new plant in two weeks, but a workers' strike delayed construction. Answer: C Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Challenging Classification: Application 41) A manager is considered efficient and effective if the manager ________. A) does not reach goals and does not waste resources B) reaches goals and does not waste resources C) does not reach goals and wastes resources D) reaches goals and wastes resources E) wastes resources on unattainable goals Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Easy Classification: Concept 42) If a manager reaches goals but wastes resources doing so, the manager is considered to be ________. A) efficient and effective B) neither effective nor ineffective C) ineffective and efficient D) effective and inefficient E) inefficient and ineffective Answer: D Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept

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    14 43) Management principles are considered to be universal because ________. A) production processes and strategies remain the same across organizations B) employees in all organizations have the same skill sets C) all organizations have the same organizational hierarchy D) organizational goals and methods do not change from organization to organization E) the principles of planning, organizing, influencing, and controlling are the same across organizations Answer: E Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Easy Classification: Concept 44) Roger is assessing the amount of time and costs involved in completing today's production. Roger is assessing his unit's ________. A) effectiveness B) efficiency C) performance D) lost revenue E) allocations Answer: B Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Concept 45) When the principles of management apply to all types of organizations and organizational levels, the principles are said to be ________. A) practical B) worthwhile C) usable D) universal E) important Answer: D Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Concept 46) Efficient means that a small proportion of total resources contributes to productivity during the manufacturing process; inefficient means that a large proportion of resources contributes to productivity. Answer: FALSE Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Concept

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    15 47) Management jobs vary but management principles are universal. They apply to all types of organization and organizational levels. Answer: TRUE Learning Obj: LO 1.2: Knowledge about the management process and organizational resources Difficulty: Moderate Classification: Concept 48) List the basic types of organizational resources. Give an example for each organizational resource in any one organization of your choice. Answer: Management must always be aware of the status and use of organizational resources. These resources, composed of all assets available for activation during the production process, are of four basic types: 1. Human 2. Monetary 3. Raw materials 4. Capital As an example, in a shoe-making organization the human resources are the employees, monetary resources are the amounts of money that managers use to purchase goods and services for that organization, raw materials are the leather, sole, glue, rivets, etc. that are required for manufacturing and packing shoes, and the capital is the machinery used for manufacturing shoes. Learning Obj: LO 1.2: Knowledge about the management process and organizational resources AACSB: Analytical Thinking Difficulty: Moderate Classification: Application 49) Which of the following best describes the concept of management skill? A) the specialized knowledge employees require to complete their tasks B) the ability to carry out the process of reaching organizational goals by working with and through people and other organizational resources C) the method by which managers plan for unforeseen projects D) the efficiency and effectiveness with which managers interact with the environment outside the company E) a product of the culture of a certain country that is limited to managers of that culture Answer: B Learning Obj: LO 1.3: An understanding of management skill as the key to management success Difficulty: Moderate Classification: Concept

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