Chapter 01 The Exceptional Manager: What You Do, How You Do It Answer Key

True / False Questions

1. Virginia Rometty, CEO of IBM, believes that her success is due in part to her ability to take risks. True
2. Exceptional managers have a gift that cannot be taught. False

3. Management includes integrating the work of people through planning, organizing, leading, and controlling
the organization's resources. True

4. To be efficient in management means to use resources wisely and cost effectively. True

5. Efficiency and effectiveness are terms used interchangeably and equivalently in management. False
6. Automated telephone systems are typically both very effective and very efficient. False

7. An effective manager has a multiplier effect on the organization, meaning his or her influence is multiplied
beyond the results achievable by just one person. True

8. John Hammergren's compensation of $145 million in 2010 as CEO of health care technology firm
McKesson is typical for CEOs in North America today. False
9. Studying management is likely to help you once you are in a manager role, but is unlikely to be beneficial
before then. False

10. One of the payoffs of studying management is an improved understanding of how to deal with organizations
as a customer. True

11. One of the rewards of being a manager is that you can build a catalog of successful products or services.
True

12. If you enjoy mentoring and helping others to grow, management is a great job. True

13. Most people prefer to have a combination of a high level of skill and low level of challenge while at
work. False

14. Organizations can gain a competitive advantage by matching their competition in terms of quality,
responsiveness, and efficiency. False

15. The decline in revenue in the newspaper industry is due to a sharp drop in the number of people reading
American newspapers. False

16. When managing for competitive advantage, the first "law" of business is "take care of the shareholders."
False

17. Taking care of the customer applies equally well to nonprofit and for-profit businesses. True

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18. In business, innovation is defined as finding ways to deliver new or better goods or services. True

19. Whereas a generation ago organizations rewarded employees for their efficiency, today the emphasis is on
length of service. False

20. Despite continued immigration, the proportion of racial or ethnic groups in the United States is expected to
be stable well into the next century. False

22. The Internet is a global network of independently operating but interconnected computers, linking hundreds
of thousands of smaller networks around the world. True

23. The buying and selling of goods or services over computer networks is known as e-exchange. False

24. One reason e-business is so important is that the Internet dramatically lowers the cost of communication.
True

25. Text messages and documents transmitted over a computer network are called cyber-messages. False

26. Project management software allows managers to plan and schedule the people, costs, and resources to complete a
project on time. True

27. A problem typically associated with interconnected databases on the Internet is the potential to overwhelm
employees with too much information. True

28. One advantage of e-business is that organizations and teams are no longer as bound by time zones and
locations. True

29. Viral staffing is the term used to describe working from home or remote locations using a variety of
information technologies. False

30. Meetings that are conducted via telecommuting use video and audio links along with computers to let
people in different locations see, hear, and talk with one another. False

31. Collaborative computing involves using state-of-the-art computer software and hardware to help people
work better together. True
32. Integration management is the implementation of systems and practices to increase the sharing of knowledge
and information throughout an organization. False
33. In recent years, white-collar crime in the United States has become very rare. False

35. Unsustainable business practices have resulted from an often accepted but untrue notion that natural
resources are limitless. True
36. Having to attend too many meetings or feeling a lack of respect are typical reasons that some people don't
find being a manager fulfilling. True

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37. One's experience in management remains very insulated from the company's culture. False
38. The "management process" is sometimes called the "four management functions." True
40. Organizing is the arranging of tasks, people, and other resources to accomplish work. True
41. When Carla revises the waitstaff schedule at her restaurant to have more personnel available during the
newly busy breakfast rush, she is engaged in organizing. True
42. When Shannon reviews reports and determines that she has four underperforming salespeople with whom
she will need to talk, she is performing the controlling managerial function. True

43. When a manager is motivating others to work hard to achieve the organization's goals, she is engaged in the
management function of leading. True

45. According to Peter Drucker, "knowledge workers" have very little technical skill. False
46. The traditional organizational model is most often represented by a funnel shape. False
47. There are managers at three levels of an organization: top, middle, and first-line. True
48. First-line managers make long-term decisions about the overall direction of the organization and establish
the objectives, policies, and strategies for it. False

50. A first-line manager directs the daily tasks of nonmanagerial personnel. True

51. A vice president of production is a general manager. False

52. A general manager typically oversees several departments within an organization. True
53. The main purpose of a nonprofit organization is to offer services to some clients. True
54. According to Mintzberg's research, managers rely more on verbal than on written communication because
of the time it takes to accomplish the latter. True

55. Since the 1960s research conducted by Mintzberg, the typical general manager has reduced her work week
to the traditional 40 hours. False

56. Most managers require lengthy, uninterrupted periods during the regular workday to accomplish their work
and make themselves unavailable to subordinates to create them.
FALSE

57. Time and task management are major challenges for every manager. True
58. According to Mintzberg, the three broad types of managerial roles include interpersonal, analytical, and
critical. False

59. Good executive functioning includes heavy multitasking and answering every e-mail nearly instantly. False

60. The monitor function is an example of the informational roles often played by managers. True
61. In interpersonal managerial roles, a manager acts as entrepreneur, disturbance handler, or negotiator. False

62. Entrepreneurship means taking risks to try to create a new enterprise. True

63. Two types of entrepreneurship include the extrapreneur and the intrapreneur. True

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64. Successful entrepreneurial companies have been called "gazelles" because of a characteristic they possess,
namely an acute sensitivity to danger in the environment. False
65. Entrepreneurs typically have a much higher need for achievement and a stronger belief in personal control
of destiny than do typical managers. False
66. Opportunity entrepreneurs are those who start their own business out of a burning desire rather than because
they lost a job. True

67. Researcher Robert Katz determined that through education and experience managers acquire technical,
conceptual, and human skills. True

68. Having required technical skills is most important among top managers at the highest leadership levels.
False
69. Human skills become less critical as one's career progresses, and are least important for top managers. False

Multiple Choice Questions

70. One way to think of ______ is "the art of getting things done through people."
A. supervision
B. motivation
C. Management
D. leadership
E. strategy

71. The pursuit of organizational goals efficiently and effectively by integrating the work of people through
planning, organizing, leading, and controlling the organization's resources is called
A. employment.
B. career planning.
C. competitive advantage.
D. management.
E. strategic planning.

72. A group of people who work together to achieve some specific purpose is/are called
A. managers.
B. a collaboration.
C. a team.
D. an organization.
E. a community.

73. Tracy, a manager at a busy warehouse, was slow to hire new employees, preferring instead to encourage
improvements from his current staff. He carefully watched his other costs too, performing equipment
maintenance on a regular basis to improve its lifespan. Tracy would best be described as a(n) _____
manager.
A. efficient
B. ethical
C. innovative
D. effective
E. micro

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74. To be ______ as a manager means to make the right decisions and successfully carry them out to achieve
goals.
A. productive
B. ethical
C. efficient
D. effective
E. innovative

75. The _________ effect states that a manager's influence on the organization has implications far beyond the
results that can be achieved by one person acting alone.
A. proliferation
B. multiplier
C. managerial
D. halo
E. additive

76. According to a Fortune article, the scarcest, most valuable resource in business is not financial capital but
A. renewable resources.
B. government support.
C. highly innovative technology.
D. a young workforce.
E. skilled, effective managers.

77. Which of the following is the most likely payoff of studying management as a discipline?
A. You will understand how to brand your organization.
B. You will understand how to relate to and interact with your supervisors and co-workers.
C. You will understand how to manage your family and close friends more effectively.
D. You will understand how to deal with the media in a crisis.
E. You will understand how to advance your career without guilt.

78. Which of the following is not a reward for practicing management?

A. You can build a catalog of successful products or services.
B. You and your employees can experience a sense of accomplishment.
C. You can stretch your abilities and magnify your range.
D. You can be rewarded with money and status for your efforts.
E. You can become exempt from many of society's ethical standards.

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79. Which of the following is one of the seven primary challenges facing managers today?
A. Maintaining good records of what worked in the past.
B. Dealing with a stubbornly static and immobile environment.
C. Staying ahead of competitors through corporate espionage.
D. Managing to achieve one's own happiness and life goals.
E. Collaborating with competitors.

81. The ability of an organization to outperform others by producing goods or services more effectively than its
competitors is called its
A. competitive advantage.
B. quality.
C. efficiency.
D. innovation.
E. effectiveness.

82. Which of the following is not an area in which an organization must stay ahead of its competitors to achieve
competitive advantage?
A. Environmental action
B. Being responsive to customers
C. Innovation
D. Quality
E. Efficiency

84. In seeking competitive advantage, the first law of business is to

A. take care of your shareholders.
B. take care of your stakeholders.
C. take care of the customer.
D. take care of the environment.
E. take care of your employees.

85. Finding ways to deliver new or better goods or services is called

A. advancement.
B. streamlining.
C. innovation.
D. efficiency.
E. quality control.
86. Customers are likely to put up with poor-quality products only if your organization is
A. underperforming in innovation.
B. using computerized customer service.
C. the only one of its kind.
D. in a very competitive industry.
E. lacking strong environmental policies.

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87. By mid-century, the percentage of Hispanics (of any race) in the U.S. population is expected to ______, and
the percentage of non-Hispanic whites is expected to ______.
A. stay the same; increase
B. double; decrease
C. decrease; increase
D. double; increase slightly
E. stay the same; decrease

88. The concept of a "flat" world means

A. employees are learning to suppress negative emotion in the workplace.
B. corporations are developing a preference for a new, flatter organizational structure.
C. a recession now slows the economies of most nations simultaneously.
D. globalization has leveled the playing field for emerging economies.
E. businesspeople are now more conservative in their approach to investment.

89. Though many advantages have been linked to e-business, studies show that employees are less productive
when dealing with excessive ______ volume.
A. videoconferencing
B. meeting
C. e-mail
D. telecommuting
E. collaborative computing

91. As a sales manager, you would have to decide how much leeway to give your subordinates in giving gifts to
prospective clients in foreign countries. This is an example of the challenge of managing for
A. your own happiness.
B. globalization.
C. ethical standards.
D. sustainability.
E. diversity.

92. Economic development that meets the needs of the present without compromising the ability of future
generations to meet their own needs is known as
A. environmentalism.
B. globalization.
C. ethics.
D. the bottom line.
E. sustainability.

93. The company's culture most directly affects

A. the number of competitors a firm has.
B. the number of products a company makes.
C. the amount charged for the firm's products or services.
D. the manager's happiness.
E. the education of the workforce.

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94. Which of the following is one of the four principal functions of management, also known as the
management process?
A. Organizing
B. Scheduling
C. Motivating
D. Executing
E. Monitoring

95. Setting goals and deciding how to achieve them is called

A. controlling.
B. managing.
C. planning.
D. organizing.
E. leading.

96. When a manager at a software company is determining whether to hire more full-time programmers or
possibly more temporary ones, he is engaged in
A. planning.
B. organizing.
C. managing.
D. leading.
E. controlling.

97. Because the various groups that help a manager reach company goals often have different needs and wants,
resolving conflicts is an essential part of which management function?
A. Planning
B. Clarifying
C. Organizing
D. Controlling
E. Leading

98. A general manager at a department store is giving an important presentation to several departments to
engage the whole staff in a new customer retention effort beginning this month. This is an example of
A. planning.
B. organizing.
C. leading.
D. controlling.
E. marketing.

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99. Monitoring performance and taking corrective action as needed is called
A. improvising.
B. planning.
C. organizing.
D. improving.
E. controlling.

103. In the traditional management pyramid, managers are classified into ______ levels.
A. two
B. three
C. four
D. five
E. six

104. A senior vice president is an example of what level of manager?

A. first-line
B. top
C. leadership
D. middle
E. merit

108. Managers who make short-term operating decisions and direct the daily tasks of the nonmanagerial
employees are called

A. first-line managers.
B. middle managers.
C. general managers.
D. functional managers.
E. initial managers.

110. A ______ manager is responsible for just one organizational activity.

A. specialist
B. first-line
C. singular
D. functional
E. top-level

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116. According to Mintzberg's work, which of the following is one of the three broad types of roles that
managers play?
A. Analytical
B. Professional
C. Interdependent
D. Disciplinary
E. Interpersonal

117. Which of the following is an example of a decisional role that managers play?
A. Figurehead
B. Spokesperson
C. Resource allocator
D. Liaison
E. Monitor

118. In a ______ role, you should be constantly alert for useful information, whether gathered from newspaper
stories about the competition or discovered in conversations with subordinates.
A. figurehead
B. negotiator
C. spokesperson
D. monitor
E. disseminator

128. _________ means taking risks to try to create a new enterprise.

A. Entrepreneurship
B. Incorporation
C. Franchising
D. Joint venturing
E. Acquisition
131. The belief that you control your own destiny is called
A. internal locus of control.
B. entrepreneurship.
C. intrapreneurship.
D. power centering.
E. manifest destiny.

135. According to researcher Robert Katz, which of the following is one of three principal skills acquired by
experienced managers?
A. Intuitive
B. Evaluative
C. Human
D. Comprehensive
E. Coordination

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136. ______ skills consist of the job-specific knowledge needed to perform well in a specialized field.

A. Technical
B. Action
C. Conceptual
D. Physical
E. Human

138. The ability to think analytically is associated with ______ skills.

A. comprehension
B. conceptual
C. human
D. abstract
E. intuitive

141. ______ skills consist of the ability to work well in cooperation with other people to get things done.
A. Support
B. Conceptual
C. Personal
D. Intuitive
E. Human

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