Tutorial Chapter 1

Part A :Multiple Choice Questions

1. A(n) _____ is a collection of people who work together and coordinate their actions to achieve a
wide variety of goals.

A. control group

B. talent pool

C. organization

D. focus group

E. quality circle

2. _____ is a measure of how efficiently and effectively managers use available resources to satisfy

customers and achieve organizational goals.

A. Organizational input

B. Diversification

C. Organizational performance

D. Product development

E. Differentiation

3. Which of the following is true of organizational performance?

A. It increases with an increase in efficiency and effectiveness.

B. It increases with a decrease in efficiency and effectiveness.

C. It remains unchanged with a decrease in efficiency and effectiveness.

D. It decreases with an increase in efficiency and effectiveness.

E. It remains unchanged with an increase in efficiency and effectiveness.

4. The measure of how productively an organization uses its resources to achieve a goal is known as
_____.

A. effectiveness

B. product differentiation

C. efficiency

D. empowerment

E. product development

5. The measure of the appropriateness of the goals selected by management for the organization
and the degree to which the organization accomplishes these goals is known as _____.

A. efficiency

B. task management

C. effectiveness

D. diversification

E. differentiation

6.. Emma is a highly efficient manager. This implies that she:

A. minimizes the amount of input resources without compromising quality.

B. is slow to respond to change and perceives organizational change as harmful.

C. does not favor flexibility in planning

D. spends lavishly on resources.

E. works for longer hours than do most of her colleagues.

7. Craig is a highly effective manager. This implies that he:

A. is likely to spend lavishly on resources.

B. is highly compliant.

C. disfavors employee empowerment.

D. chooses appropriate goals and then achieves them.

E. is overly ambitious.

8. A company with a high level of efficiency and effectiveness is most likely to produce:

A. a product that customers want, but that is too expensive for them to buy.

B. a product that customers want at a quality and price they can afford.

C. a product that is inexpensive and non-durable.

D. a high-quality product that has limited utility for customers.

E. a product that requires customers to invest in expensive service packages.

9. A company with a high level of efficiency and low level of effectiveness is most likely to produce:

A. a high-quality product that does not address the relevant market segment.

B. a high-quality product that customers can afford.

C. a low-quality product that customers do not want.

D. a high-quality product that customers do not want.

E. a high-quality product that the company makes a profit on.

10. A company with a low level of efficiency and high level of effectiveness is most likely to produce:

A. a product that customers want, but that is too expensive for them to buy.

B. a product that customers want at a quality and price they can afford.

C. a low-quality product that customers do not want.

D. a high-quality product that customers do not want.

E. a high-quality product that the company makes a profit on.

11. A company with a low level of efficiency and low level of effectiveness is most likely to produce:

A. a product that customers want, but that is too expensive for them to buy.

B. a product that customers want at a quality and price they can afford.

C. a low-quality product that customers do not want.

D. a high-quality product that customers do not want.

E. a high-quality product that the company makes a profit on.

12 In which of the following managerial tasks do managers select appropriate goals for the
organization?

A. Organizing

B. Leading

C. Planning

D. Controlling

E. Restructuring
13. Which of the following does planning involve in an organization?

A. Establishing task relationships that allow people to work together

B. Developing strategies for how to achieve high performance

C. Motivating individuals to achieve organizational goals

D. Establishing accurate measuring and monitoring systems

E. Measuring how well the organization has achieved its goals

14. Which of the following is an element of planning?

A. Encouraging all employees to perform at a high level to help the organization achieve its vision

and goals

B. Using power, personality, and communication skills to coordinate the activities of people and

groups

C. Establishing alliances between different organizations to share resources and produce new

goods and services

D. Deciding which goals the organization will pursue and what strategies will achieve those goals

E. Organizing people into departments according to the kinds of job-specific tasks they perform

15. In which of the following managerial tasks are work relationships restructured to facilitate the

interaction and cooperative efforts of organizational members, all of whom strive to achieve

organizational goals?

A. Planning

B. Leading

C. Reviewing

D. Controlling

E. Organizing
16. _____ involves encouraging all employees to perform at a high level to help the organization
achieve its vision and goals.

A. Planning

B. Leading

C. Reviewing

D. Controlling

E. Organizing

17. Which of the following managerial tasks does a manager perform when he/she articulates a clear
organizational vision for the organization’s members to accomplish?

A. Organizing

B. Leading

C. Staffing

D. Controlling

E. Planning

18. Which of the following tasks does a manager perform when he/she energizes employees and

enables them to understand the part he/she plays in achieving organizational goals?

A. Planning

B. Leading

C. Controlling

D. Monitoring

E. Strategizing
19. _____ is the managerial task that involves managers using their power, personality, influence,
persuasion, and communication skills to coordinate people and groups so their activities and
efforts are in harmony.

A. Leading

B. Planning

C. Strategizing

D. Reviewing

E. Controlling

20. In _____, managers evaluate how well the organization is accomplishing its goals.

A. leading

B. planning

C. organizing

D. disseminating

E. controlling

21. Controlling is the managerial task that involves:

A. deciding what organizational goals to pursue.

B. obtaining customers by producing goods and services more cheaply than any competitor.

C. taking any corrective actions needed to maintain or improve performance.

D. using personality to establish equilibrium in the workplace.

E. motivating people to perform at a high level.

22. The outcome of the control process is:

A. the ability to measure performance accurately and regulate organizational efficiency and
effectiveness.

B. the ability to formulate effective business strategies and plan the allocation of resources.

C. the ability to attract customers by producing goods and services more cheaply than any

competitor.

D. the ability to motivate employees to perform at a high level.

E. the ability to decide what organizational goals to pursue.

23. Daniel, a manager at Joe’s Fish Shack, monitors the performance of workers in his department to
check if the quality of their work is meeting the performance standards of the company. In doing
so, which managerial task is Daniel performing?

A. Planning

B. Staffing

C. Organizing

D. Structuring

E. Controlling

24. Supervisors are also referred to as _____.

A. first-line managers

B. middle managers

C. top managers

D. interim managers

E. executive managers
25. Which of the following is a characteristic of first-line managers?

A. They are responsible for finding the best way to organize human resources and other
organizational assets.

B. They evaluate whether the organization’s goals are appropriate.

C. They are responsible for daily supervision of the nonmanagerial employees.

D. They instruct top managers on the suitability of organizational goals.

E. They develop and fine-tune the skills and know how of middle managers.

26. Which of the following is true of first-line managers?

A. They are responsible for finding the best way to organize human and other resources to achieve
organizational goals.

B. They work in all departments or functions of an organization.

C. They make specific decisions about the production of goods and services.

D. They evaluate whether the organization’s goals are appropriate.

E. They instruct top managers on the suitability of organizational goals.

27. Middle managers are responsible for:

A. the daily supervision of the nonmanagerial employees.

B. fine-tuning and developing the skills of top managers.

C. the establishment of the organization’s goals and visions.

D. finding the best way to use resources to achieve organizational goals.

E. the creation of the top-management team.

28. Which of the following is a true of middle managers?

A. They are often called supervisors.

B. They are responsible for daily supervision of the nonmanagerial employees.

C. They make specific decisions about the production of goods and services.

D. They are responsible for the performance of all departments.

E. They establish long-term organizational goals.

29. Which of the following is true of top managers?

A. They are often called supervisors.

B. They are responsible for daily supervision of the nonmanagerial employees.

C. They spend more time leading and controlling than planning and organizing.

D. They do not establish organizational goals.

E. They have cross-departmental responsibility.

30. Which of the following is a primary concern of top managers?

A. Supervising nonmanagerial employees

B. Training, motivating, and rewarding salespeople

C. Developing and fine-tuning employee skills

D. Supervising first-line managers

E. Deciding which goods a company should produce

31. The ability to analyze and diagnose a situation and to distinguish between cause and effect is a:

A. human skill.

B. negotiation skill.

C. technical skill.

D. conceptual skill.

E. structural skill.

32. The general ability to understand, alter, lead, and control the behavior of other workers is a _____

skill.

A. conceptual

B. human

C. technical

D. structural

E. diagnostic

33. Core competency is:

A. the specific set of departmental skills, knowledge, and experience that allows one organization

to outperform another.

B. the planning, organizing, leading, and controlling of human and other resources to achieve
organizational goals efficiently and effectively.

C. a measure of how efficiently and effectively a manager uses resources to satisfy customers and

achieve organizational goals.

D. a measure of the appropriateness of the goals an organization is pursuing and the degree to

which the organization achieves those goals.

E. the ability to analyze and diagnose a situation and to distinguish between cause and effect.
34. Owing to financial problems in the organization, the top management of an investment bank
decided to reduce the number of middle managers by 10 percent. This is an example of _____.

A. insourcing

B. restructuring

C. task assessment

D. empowerment

E. delegation

35. Due to declining global sales, Makeown Ventures Inc. announced that it would lay off 12 percent of
its existing workforce over the next few months. This is an example of:

A. task assessment.

B. insourcing.

C. restructuring.

D. outsourcing.

E. empowerment.

36. Which of the following is a consequence of restructuring?

A. Increase in the size of departments

B. Increase in employee attrition

C. Increase in hierarchical levels

D. Increase in customer satisfaction

E. Improvement in morale of employees

37. _____ involves contracting with another company, usually in a low-cost country abroad, to have it
perform a work activity the organization previously performed itself, such as manufacturing,
marketing, or customer service.

A. Empowering

B. Outsourcing

C. Stratifying

D. Controlling

E. Innovating

38. _____ is a management technique that involves giving employees more authority and responsibility
over how they perform their work activities.

A. Restructuring

B. Outsourcing

C. Empowerment

D. Departmentalization

E. Insourcing

39. A group of employees who assume collective responsibility for organizing, controlling, and

supervising their own work activities is known as a:

A. primary group.

B. self-managed team.

C. focus group.

D. restructured team.

E. functional team.
40. _____ is defined as the ability of one organization to outperform other organizations because it
produces desired goods or services more efficiently and effectively than its competitors.

A. Empowerment

B. Competitive advantage

C. Diversification

D. Stratification

E. Innovation

41. The four building blocks of _____ are superior efficiency; quality; speed, flexibility, and innovation;
and responsiveness to customers.

A. empowerment

B. competitive advantage

C. diversification

D. stratification

E. managerial control

Part B

. 1. Distinguish between efficiency and effectiveness and explain how they impact the
performance of an organization.
2. Briefly discuss the four principal managerial tasks.

3. What are the three steps in the planning process?