M: Management, 6e (Bateman)

Chapter 1 Managing in a Global World

1) The best managers prioritize efficiency over effectiveness.

2) The four fundamental management principles include analyzing current situations,

determining objectives, choosing corporate, and business strategies, and determining the
resources needed to achieve the organization's goals.

3) Top-level managers are also called tactical managers because they must translate general
goals into specific objectives and activities.

4) A team leader's job is less challenging than frontline and other types of managers' jobs
because team leaders always have direct control over team members.

5) Lower-level managers who possess technical skills tend to earn less credibility from their
subordinates than comparable managers without technical know-how.

6) The five key elements that make the current business environment different from those of the
past include globalization, technological change, the importance of knowledge and ideas,
collaboration across organizational boundaries, and an increasingly diverse labor force.

7) Social capital is the goodwill stemming from your social relationships.

8) Management is the
A) method of executing, responding, and delivering results in a fast and timely manner.
B) process of working with people and resources to accomplish organizational goals.
C) technique of keeping costs low enough so the company can realize profits and price its
products at levels that are attractive to consumers.
D) introduction of new goods and services.
E) method of creating goodwill through social relationships.

9) Planning involves
A) analyzing current situations.
B) monitoring performance.
C) attracting people to the organization.
D) motivating employees.
E) implementing necessary changes.

10) ________ is specifying the goals to be achieved and deciding in advance the appropriate
actions needed to achieve those goals.
A) Staffing
B) Leading
C) Organizing
D) Planning
E) Controlling

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11) GlobalMart Inc. periodically reviews the goals of the company. During the process, the
managers of the company analyze their current strategies as compared to their competitors'
strategies, determine goals that they will pursue, and decide upon specific actions for each area
of the company to take in pursuit of these goals. With these actions, the managers are engaged in
the management function of
A) organizing.
B) planning.
C) goal coordination.
D) controlling.
E) leading.

12) Flatiron Inc. recently embarked on an effort to increase coordination and cooperation within
the company. During the process, the managers of the organization reviewed and specified job
responsibilities, grouped jobs into work units, and reallocated resources within the company. The
managers were exercising the management function of
A) planning.
B) organizing.
C) leading.
D) controlling.
E) budgeting.

13) ________ is assembling and coordinating the human, financial, physical, informational, and
other resources needed to achieve goals.
A) Controlling
B) Planning
C) Organizing
D) Leading
E) Quantifying

14) Building a dynamic organization is the goal of which function of management?

A) planning
B) organizing
C) leading
D) controlling
E) staffing

15) What will be the result when managers use new forms of organizing?
A) They will build organizations that are flexible and adaptive.
B) They will create an organization chart by identifying business functions.
C) They will specify the goals to be achieved and decide in advance the appropriate actions
needed to achieve those goals.
D) They will establish a top-down approach where top executives establish business plans and
tell others to implement them.
E) They will monitor performance and make necessary changes in a timely manner.

16) As one of the key management functions, leading focuses on a manager's efforts to
A) mobilize people to contribute their ideas.
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B) build organizations that are flexible and adaptive.
C) make sure goals are met.
D) identify opportunities for sustainable advantage.
E) build a dynamic organization.

17) ________ is a manager's ability to stimulate people to be high performers.

A) Planning
B) Organizing
C) Leading
D) Controlling
E) Monitoring

18) Neal manages a team of six professionals in a health care company. His subordinates have a
wide variety of experiences and skill sets. Effectively ________ his team, Neal regularly seeks to
inspire his subordinates to draw upon their various backgrounds in ways never needed or
dreamed of in the past.
A) planning
B) organizing
C) leading
D) controlling
E) innovating

19) When Alex, the marketing manager of FrontStreet Inc., realized that his plan to increase
sales levels was not producing the results he desired, he took quick action to make necessary
adjustments. According to this scenario, Alex was exercising the management function of
A) planning.
B) organizing.
C) leading.
D) controlling.
E) communicating.

20) ________ involves monitoring performance and making necessary changes.

A) Budgeting
B) Planning
C) Organizing
D) Leading
E) Controlling

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21) Through careful monitoring of the financial budget of a firm, managers can detect potential
problems in reaching their financial goals and take actions to reverse the problem. This is an
example of the management function of
A) planning.
B) controlling.
C) leading.
D) organizing.
E) budgeting.

22) ________ are key management functions.

A) Planning, organizing, leading, and controlling
B) Marketing, finance, accounting, and production
C) Planning, operations, labor, and contracting
D) Hiring, training, appraising, and firing
E) Marketing, management, finance, and accounting

23) Sam is a middle-level manager who is known for his efficiency; however, he is not
necessarily effective. But, Rachel, another middle-level manager, is known for her effectiveness,
rather than her efficiency. Therefore, Rachel is more likely to
A) achieve goals with minimal waste.
B) make the best possible use of money.
C) achieve organizational goals.
D) make the best possible use of people.
E) have a clear focus on efficiency.

24) NewTrends, a fashion company, has plans to be the sales leader in women's fashion. To
achieve this goal the CEO has analyzed the current situation and determined objectives and
resources. What planning activities still need to be completed?
A) anticipate the future, decide on activities, and choose a business strategy
B) solicit funders, market the company, and choose a business strategy
C) market the company, decide on actions, and anticipate the future
D) evaluate the competitors, solicit funders, anticipate the future
E) decide on actions, market the company, and solicit funders

25) ________ is coordinating the human, financial, physical, informational, and other resources.
A) Assembling
B) Organizing
C) Planning
D) Grouping
E) Controlling

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26) Leading involves
A) creating an organization chart by identifying business functions.
B) establishing reporting relationships.
C) having a personnel department that administers plans, programs, and paperwork.
D) stimulating people to be high performers.
E) dealing directly with customers and clients.

27) Controlling helps

A) monitor performance and implement necessary changes.
B) create an organization chart by identifying business functions.
C) establish reporting relationships.
D) stimulate people to be high performers.
E) determine department goals.

28) To become an effective manager, one should choose ________ of the four management
functions and commit one hundred percent.
A) only one
B) at least two
C) between one and three
D) all
E) none

29) Which of the following is a result of controlling?

A) Managers assemble and coordinate the human, financial, physical, informational, and other
resources needed to achieve goals.
B) Managers analyze current situations, anticipate the future, determine objectives, and decide
on what types of activities in which the company will engage.
C) Managers make sure the organization's resources are being used as planned and that the
organization is meeting its goals for quality and safety.
D) Managers motivate workers to come to work and execute top management's plans by doing
their jobs.
E) Managers create an organization chart by identifying business functions and establishing
reporting relationships.

30) ________ managers are senior executives responsible for the overall management and
effectiveness of an organization.
A) Long-term
B) Middle
C) Strategic
D) Tactical
E) Short-run

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31) Maria, David, and Sylvia are concerned that their company will not survive the current
recession. As experienced ________ managers, they are working collaboratively to develop new
business strategies and work processes to effectively and efficiently support the company so that
it can survive the current economic downturn and thrive in the coming years. Their employees
are depending upon them to provide overall management of the company.
A) frontline
B) tactical
C) top-level
D) matrix
E) knowledge

32) The four levels of managers found in large organizations are

A) international, national, regional, and local.
B) marketing, accounting, human resource, and finance.
C) technical, functional, departmental, and organizational.
D) planning, coordinating, controlling, and executing.
E) top-level, middle-level, frontline, and team leader.

33) Top-level managers focus on

A) the long-term survival of an organization.
B) translating goals and objectives into specific activities.
C) managing frontline managers.
D) supervising nonmanagement employees.
E) initiating new daily activities.

34) ________ managers are typically concerned with the interaction between an organization and
its external environment.
A) Regional
B) Top-level
C) Middle-level
D) Frontline
E) Functional

35) Chief executive officer, president, chief operating officer, and vice president are all titles
typical of ________ management.
A) top-level
B) tactical level
C) operational level
D) functional level
E) regional level

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36) ________ managers are responsible for translating the general goals and plans developed for
an organization into more specific activities.
A) Operational
B) Functional
C) Activities
D) Strategic
E) Tactical

37) Middle-level managers are often referred to as ________ managers.

A) activities
B) tactical
C) functional
D) operational
E) strategic

38) As a manager at VTI Corp., Jules spends much of his time coaching young managers and
making sure that any required information reaches all the branches for them to be successful.
Jules would best be described as a(n)
A) frontline manager.
B) tactical manager.
C) operational manager.
D) top-level manager.
E) institutional controller.

39) ________ managers are lower-level managers who supervise the operational activities of an
organization.
A) Frontline
B) General
C) Team
D) Tactical
E) Strategic

40) Managers responsible for supervising the operations of an organization are referred to as
________ managers.
A) strategic
B) functional
C) supervisory
D) operational
E) tactical

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41) Operational managers play a crucial role in an organization because they
A) provide the link between management and nonmanagement personnel.
B) are responsible for translating the general goals developed by strategic managers into more
specific objectives and activities.
C) are responsible for facilitating successful team performance.
D) give feedback on the performance of the top management.
E) contribute direction and strategy to the organization.

42) One of Isaiah's primary activities in his career as a supervisor at Williams Bird Food Inc. is
working with his middle manager, Joseph, to introduce new growth opportunities in the business
(such as expanding into exotic bird foods) and help the people who actually manufacture the
food. Isaiah is most likely a(n)
A) frontline manager.
B) tactical manager.
C) strategic manager.
D) top-level manager.
E) administrative controller.

43) Titles such as foreperson, sales manager, shift manager, or supervisor typically belong to
________ managers.
A) strategic
B) middle-level
C) top-level
D) operational
E) tactical

44) In smaller entrepreneurial firms and even in more adaptive larger firms, managers
A) are no longer utilized.
B) rely more heavily on technical skills.
C) focus primarily on hierarchy.
D) have strategic, tactical, and operational responsibilities.
E) focus on internal operations only.

45) Being a(n) ________ is one of the roles of a manager that involves searching for new
business opportunities and initiating new projects to create change.
A) leader
B) figurehead
C) entrepreneur
D) resource allocator
E) monitor

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46) In a major announcement at an annual medical conference, Dr. Benjamin Johnson, Research
Director of Acme Pharmaceuticals, informs the medical community of a breakthrough in the
treatment of diabetes. As ________ for his organization, he answers questions posed to him by
his medical research colleagues and members of the press.
A) disseminator
B) spokesperson
C) liaison
D) figurehead
E) disturbance handler

47) Alan is the lead attorney representing StoneWork, Inc. and he is in back-and-forth
discussions with parties, inside as well as outside the firm, to finalize a contract with J. R. Jones
Realty. Alan knows that, in his role as ________, he is making important business decisions for
StoneWork.
A) spokesperson
B) liaison
C) leader
D) negotiator
E) monitor

48) Jim's role as ________ entails his creating a presentation to give to his management team
that will communicate the company's new business objectives, and more importantly, how Jim
has interpreted them to apply to his business unit.
A) negotiator
B) figurehead
C) disseminator
D) resource allocator
E) monitor

49) The president of NuBuild Corp., acting as the corporation's ________, attended the
inauguration of a customer's new office complex.
A) leader
B) liaison
C) figurehead
D) spokesperson
E) resource allocator

50) When a customer service manager works to defuse a situation with an irate customer, he or
she is assuming a ________ role.
A) liaison
B) disturbance handler
C) negotiator
D) resource allocator
E) leader

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51) Forrest, a project manager, determines the number of employees to be assigned for a certain
project. The managerial role being implemented by Forrest is
A) liaison.
B) disturbance handler.
C) negotiator.
D) resource allocator.
E) leader.

52) Maintaining a network of outside contacts and alliances that provide information and favors
represents a ________ managerial role.
A) spokesperson
B) liaison
C) leader
D) negotiator
E) monitor

53) Frontline managers often have titles such as

A) supervisor or sales manager.
B) senior executive.
C) team leader.
D) tactical manager.
E) strategic manager.

54) The need for interpersonal and communication skills

A) fades as a manager moves from the lower levels of an organization into the upper
management arena.
B) fades as a manager moves from the upper management arena to the lower levels of an
organization.
C) is important at every level of management.
D) fades at the bottom.
E) is important at the bottom only.

55) A(n) ________ skill is the ability to perform a specialized task that involves a certain method
or process.
A) conceptual
B) professional
C) interpersonal
D) communication
E) technical

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56) ________ represent skills that are crucial to managers.
A) Selling and public relations, conceptual and decision, and professional
B) Technical, interpersonal and communication, and conceptual and decision
C) Professional, technical, and selling and public relations
D) Conceptual and decision, professional, and technical
E) Professional, technical, and conceptual and decision

57) Using a particular software program at an expert level, compilation of an accounting

statement, and writing advertising copy are all examples of ________ skills.
A) technical
B) public relations
C) communicative
D) interpersonal
E) quantitative

58) Managers will utilize ________ skills with increasing frequency as they rise within an
organization.
A) conceptual and decision
B) informational
C) technical
D) professional
E) negotiation

59) The senior managers at Rightwell Studios Inc. recognized a lack of employee enthusiasm
about the new website. There was a fair amount of infighting and accusations of who was
responsible for the layout, given that the firm is considered to be highly competent in design and
production. Millie, a manager, got the team together and engaged them in a lively discussion to
determine how to change the website so that it reflected more of Rightwell's unique design
ability. As the meeting wound down, each team member volunteered to take on a part of the
project to fix the site. The ability to identify this problem and resolve it is an effective use of
________ skills.
A) conceptual and decision
B) informational
C) technical
D) professional
E) negotiation

60) Listening to employee suggestions, gaining support for organizational objectives, and
fostering an atmosphere of teamwork are all considered ________ skills.
A) technical
B) interpersonal and communication
C) diagnostic
D) professional
E) conceptual

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61) Which of the following statements exemplifies the importance of managerial skills?
A) Obtaining high performance from people in the organization is easy because of the authority
managers will continue to have over knowledge workers.
B) Technical skills are most important after becoming a top-level manager.
C) The importance of the various types of managerial skills is consistent across all managerial
levels.
D) Conceptual and decision skills become less important than technical skills as a manager rises
higher in the company.
E) Interpersonal skills are important throughout a manager's career, at every level of
management.

62) ________ is the set of skills composed of understanding oneself, managing oneself, and
dealing effectively with others.
A) Self-reliance
B) Social capital
C) Emotional intelligence
D) Career management
E) Social management

63) Jacob has built up a wide network of contacts, clients, and local business neighbors since
moving to Central City five years ago. Throughout his home-based marketing career, he has
regularly and frequently networked with these business associates online, by phone, and in
person. As he considers leaving his marketing career to become an owner/manager of a local
business, he will rely upon the ________ that he has developed with these individuals to ensure a
successful transition to a new career.
A) knowledge management
B) competitive advantages
C) social capital
D) emotional intelligence
E) figurehead skills

64) An individual ________ is a component of emotional intelligence.

A) making good decisions
B) dealing with power plays made by others
C) understanding the shortcomings of those people he or she works with
D) advising others how to stay happy at work
E) helping others understand that he or she is correct

65) ________ is among the necessary skills of emotional intelligence.

A) Encouraging coercion among employees
B) Showing empathy
C) Advising others how to stay happy at work
D) Maintaining the status quo
E) Avoiding constructive criticism

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66) Which of the following scenarios does NOT demonstrate an emotional intelligence skill?
A) Brian knows that he has exceptional skills with numbers, but could use improvement in his
communication skills.
B) Donella had a difficult time getting to work this morning, and when presented with a
frustrating situation with her assistant, took a deep breath and separated her difficult morning
from the situation at hand.
C) Bill's sales manager Gus has not been performing at his usual best. Bill arranges a private
meeting with Gus to ask Gus how he is doing and to find out if anything is wrong in Gus's
personal life.
D) Ahmed is focused on the sales manager's attitude at work and spends his evenings thinking
about how he can change the manager's outlook.
E) Kyoshi had a terrible drive in to work. There was construction on the road and the lanes were
reduced. This made him late for a very important meeting. After parking, he listened to one more
song on the radio and refocused.

67) Emotional intelligence involves the skills of all of the following EXCEPT
A) understanding oneself.
B) managing oneself.
C) working effectively with others.
D) knowing others' strengths and limitations.
E) making good decisions.

68) Which of the following examples illustrates a manager with emotional intelligence?
A) Maya can maintain the status quo.
B) Ella can identify her team members' strengths and weaknesses.
C) Susan can exercise self-control.
D) Veronica has the ability to manage her followers' reactions.
E) Prudence has the ability to ignore constructive criticism.

69) ________ is one of the key elements that makes the current business landscape different
from those of the past.
A) Centralization
B) Technological change
C) Quality
D) Cost competitiveness
E) Speed

70) Which of the following statements is true of globalization?

A) It fails to involve smaller firms.
B) It encourages the maintenance of the status quo.
C) It does not create threats to anybody.
D) It does not allow employees to provide services although most economies have become very
efficient at producing physical goods.
E) It occurs through cross-border partnerships.

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71) Which of the following statements about the Internet is true?
A) The Internet always makes things easier.
B) The Internet is a virtual marketplace and speeds up globalization.
C) The Internet's impact is felt only at the level of businesses as a whole and not by individual
employees.
D) The Internet does not create threats as competitors capitalize on new developments.
E) The Internet compels people to respond to e-mail messages immediately.

72) ________ is the goodwill stemming from social relationships.

A) Social empathy
B) Social capital
C) Emotional intelligence
D) Emotional capital
E) Empathetic goodwill

73) ________ is the set of practices aimed at discovering and harnessing an organization's
intellectual resources, fully utilizing the intellects of the organization's people.
A) Knowledge management
B) Collaboration
C) Innovation
D) Service management
E) Communication management

74) Which of the following statements about collaboration is true?

A) Collaboration occurs only within the boundaries of an organization.
B) It is unrealistic to think that a company can collaborate with its customers.
C) Disclosing one's plans by collaborating with the potential investors of a firm is not a good
idea.
D) Collaboration supports knowledge management and vice versa.
E) Collaborating with people outside an organization is impossible because of the risk of
disclosing trade secrets.

75) Technology both complicates things and creates new opportunities. The challenges come
from
A) the rapid rate at which communication changes.
B) the lack of transportation.
C) inaccurate information.
D) unchanging technologies.
E) the limit on new opportunities.

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76) As stated in the text, all of the following statements are effects of the rise of the Internet,
EXCEPT
A) Managers are now mobile and able to be connected 24 hours a day, 7 days a week.
B) The Internet fulfills many business functions.
C) The rate of globalization has sped up, allowing managers to see what competitors are doing
worldwide.
D) It eases the tensions in the work-life area because it allows managers to work from home, or
even on vacation.
E) The Internet spurs the innovation of new products, such as smartphones and online banking
services.

77) Knowledge management is a set of practices aimed at

A) discovering the competition's intellectual resources.
B) harnessing the competition's intellectual resources.
C) harnessing an organization's intellectual resources.
D) utilizing the intellects of the other organization's people.
E) implementing organizational changes.

78) As the success of modern business so often depends on the knowledge used for innovation
and the delivery of services, organizations need to manage that
A) knowledge.
B) success.
C) resource.
D) innovation.
E) communication.

79) Collaboration can occur

A) between two organizations, but not internally.
B) within but not outside the organization.
C) outside the organization only.
D) with customers.
E) among managers only.

80) Creating outstanding products and services can start with involving ________ in company
decisions.
A) customers
B) executives
C) managers
D) employees
E) owners

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81) ________ is the introduction of new goods and services.
A) Collaboration
B) Standardization
C) Innovation
D) Adaptation
E) Saturation

82) ________ is the excellence of your product.

A) Innovation
B) Quality
C) Quantity
D) Centralization
E) Customization

83) Service refers to the

A) speed and dependability with which an organization delivers what customers want.
B) technique of keeping costs low to achieve profits and to be able to offer prices that are
attractive to consumers.
C) practice aimed at discovering and harnessing an organization's intellectual resources.
D) technique of establishing goodwill through social relationships.
E) skill of understanding oneself, managing oneself, and dealing effectively with others.

84) Choose the correct statement regarding quality.

A) Quality can be measured in terms of product performance, customer service, and reliability.
B) Quality cannot be improved continuously.
C) Quality refers to keeping costs low enough so the company can realize profits and price its
products at levels that are attractive to consumers.
D) Quality refers to goodwill stemming from one's social relationships.
E) Quality is described as rapid execution, response, and delivery of results.

85) Cost competitiveness means that one

A) sacrifices quality to keep costs low.
B) carefully monitors costs mainly during the setting up of business.
C) prices his or her products or services at a level attractive to consumers.
D) manages his or her costs by maintaining the status quo.
E) offers a high-quality product at a higher price.

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86) Tommy, engineering manager at APC Systems, Inc., is struggling to maintain a competitive
advantage in APC's marketplace. He wants to hire and retain the best staff that he can, but the
best staff command high salaries. Tommy knows that high staff salaries can erode his company's
profitability. But passing along these higher costs to his clients means they will start doing less
business with higher-priced APC and more business with Tommy's lower-priced competitors.
Tommy is struggling to
A) collaborate.
B) be technologically innovative.
C) provide quality service.
D) be cost competitive.
E) achieve zero defects.

87) Which of the following statements about the sources of competitive advantage is true?
A) The best managers and companies deliver all five competitive advantages.
B) Managing the sources of competitive advantage is a zero-sum game where one source
improves at the expense of the other.
C) It is possible to compete without cutting costs and offering attractive prices.
D) Outsourcing certain functions is likely to decrease innovation.
E) The faster the product is provided the more innovation suffers.

88) Amazon is not necessarily known for its development of new products. However, Amazon
has transformed the way that products are purchased and delivered. Thus, Amazon has
leapfrogged its competition through its
A) quality.
B) innovation.
C) social capital.
D) dissemination.
E) collaboration.

89) Innovation is a strategic goal in organizations because it

A) does not come from people.
B) comes from people.
C) does not give a competitive advantage.
D) cannot be managed properly.
E) exists in a vacuum.

90) Because products ________, a firm must adapt to new competitors and to consumer
demands.
A) will sell forever
B) do not sell forever
C) that are made well last forever
D) with name brands are the only ones to sell forever
E) that are tried and true are the best sellers

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91) Quality is the excellence of one's product, and this includes all of the following EXCEPT
A) lack of defects in the goods of a company.
B) reliability of the services.
C) short-term dependability of the company.
D) attractiveness of a product.
E) zero-defects standards.

92) Total quality includes all of the following EXCEPT

A) preventing defects before they occur.
B) achieving zero defects in manufacturing.
C) designing products for quality.
D) solving defect issues after they occur.
E) living a philosophy of continuous improvement.

93) When shopping for goods and services, customers weigh their options and purchase based on
the
A) cheapest cost.
B) availability of the item.
C) physical goods and the quality of services.
D) desire to have the goods or services.
E) rating on Angie's list or Yelp.

94) Sonya manages a specialized environmental consulting practice, GreenSolutions, within a

large multinational corporation. Client feedback obtained in the past 12 months indicates that
GreenSolutions' business is on the decline. Sonya decides to implement various changes within
her practice to improve GreenSolutions' service quality. One of the key elements of these
changes will be to refocus her staff on
A) making it easy and enjoyable for clients to experience a service.
B) occasionally meeting the needs of clients.
C) establishing short-term relationships.
D) giving clients what they want when GreenSolutions wants.
E) measuring product performance.

95) ________ often separates the winners from the losers in business.
A) Service
B) Quality
C) Speed
D) Technology
E) People

96) Cost competitiveness means pricing a firm's products

A) lower than all competitors' products.
B) higher than all competitors' products.
C) equal to all competitors' products.
D) low enough to profit.
E) high enough to make the investors happy.

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97) Leading involves
A) mobilizing people to engage fully in their work.
B) inspiring people to contribute their ideas.
C) both mobilizing and inspiring people to engage fully in their work and contributing their
ideas.
D) motivating workers to come to work and execute top management's plans.
E) analyzing day-to-day situations and involving workers in all decisions.

98) A ________ serves as the spokesperson and champion for a work group dealing with
external stakeholders.
A) tactical manager
B) team leader
C) top-level manager
D) resource allocator
E) senior executive

99) Carl's department has been introducing new goods and services on a rapid-fire basis over the
past two years. However, business is down, largely because customer feedback on the
usefulness, reliability, and durability of the new goods and services is negative. Carl's division
manager, Vince, reviews the situation and concludes that the innovation of Carl's department is
good; however, ________ is poor.
A) responsiveness
B) quality
C) marketing
D) speed
E) cost competitiveness

100) The CEO said, "Every six months or so, my senior management team and I meet to discuss
the goals that will be achieved over the next year, three years, and beyond. We then make sure
we are clear on who will take responsibility to see that appropriate actions are undertaken to
achieve our goals within the time frame we set." The CEO is describing the management
function of
A) planning.
B) organizing.
C) leading.
D) controlling.
E) decision making.

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101) "Recently, I spent a great deal of time looking at how to define jobs to most efficiently
utilize the employees in those jobs," said Bill Plymouth, CEO of Baker Manufacturing. "And
now I need managers to be responsible for the various job groupings." The CEO is describing the
management function of
A) planning.
B) organizing.
C) leading.
D) controlling.
E) decision making.

102) "As CEO, I maintain a big-picture view of how we are performing as a company,
determining what changes we need to make if we begin deviating from our plans, and ensuring
we meet our goals for quality and safety." The CEO is describing the management function of
A) planning.
B) organizing.
C) leading.
D) controlling.
E) decision making.

103) "As CEO, I must mobilize, inspire, and stimulate my management team, as well as the
entire staff, to continually perform at high levels. I seek to empower my staff through
communication and motivation." The CEO is describing the management function of
A) planning.
B) organizing.
C) leading.
D) controlling.
E) decision making.

104) "I'm sorry to tell you that four employees from our division were laid off today," said Bob
Knowles, division manager, to his assembled staff. "And a total of 25 employees were laid off
corporatewide. No further staff reductions are planned, and we expect the corporation's financial
performance to remain on plan." When the manager notifies his employees of these
developments and plans, he is performing in the role of
A) leader.
B) liaison.
C) disseminator.
D) spokesperson.
E) disturbance handler.

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105) "Quick, Mr. Simmons, Teresa is in the lobby, shouting at a customer!" said Lonnie.
Rushing to intervene, Ralph Simmons demanded that Teresa return to her office immediately.
"Mr. Crenshaw, I'm very sorry. Please, allow me to escort you to our executive suite, and I will
straighten this out." When the manager deals with an angry employee and an insulted customer,
he is performing in the role of
A) monitor.
B) negotiator.
C) disturbance handler.
D) resource allocator.
E) liaison.

106) "I must attend the fundraiser," said Phyllis Blasingame, Senior Vice President of Marketing.
"One of our key clients is sponsoring the event for a worthy cause, and our firm should be
represented by a senior member of our management team." When the manager performs
symbolic duties on behalf of her organization, she is performing in the role of
A) liaison.
B) figurehead.
C) monitor.
D) entrepreneur.
E) resource allocator.

107) Labyrinth Inc. is a new, very successful, brand of organic clothing recently introduced
globally. The company is unique in that it has collaborated with its suppliers and potential
customers to bring the clothing to market. Labyrinth's founders have always focused on being
efficient managers. What is the best advice you should give them, given the quick success they
have had with Labyrinth?
A) Efficiency is the only key to their continued success.
B) Now it is time for them to consider only effectiveness because they clearly have efficiency
under control and this is not likely to change in the future.
C) To continue their success, they should maintain a clear focus on both effectiveness and
efficiency, especially while their company is experiencing such a high growth in sales.
D) They should maintain the status quo without implementing any changes to continue making
quick sales.
E) As top-level managers, the best action plan for them is to begin to minimize collaboration
with customers and suppliers because they have proven themselves.

108) Janet mused to herself, "It has taken over 30 years, but I've finally been named CEO of a
major firm. Now, I can concentrate on what I really want to do as a(n) ________ manager, to
focus on the survival, growth, and overall effectiveness of our firm."
A) tactical
B) strategic
C) middle
D) external
E) internal

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109) "A new boss from outside the industry won't be able to train us to perform specialized tasks
involving our particular methods and processes, or to evaluate how well we were performing
these tasks. Would she have the necessary ________?" asked Biff. But, in fact, Jenna already
knew or quickly learned these and proved herself credible.
A) conceptual and decision skills
B) selling skills
C) language fluency
D) technical skills
E) negotiating skills

110) Randall Petrie, Vice President of Production, said, "Stu, my employees have been
manufacturing the same products for two years without a new product being introduced.
Products don't sell forever, especially since globalization and technological advances have
accelerated the pace of change. I'm concerned that, without ________, we will wither and die as
an organization."
A) planning
B) innovation
C) quality
D) re-organizing
E) cost competitiveness

111) Dave is surprised one day to learn that the parts that he has ordered from a small local
supplier are delayed. He immediately calls his supplier, and the supplier admits that his shop is
overbooked with orders, not only from Dave's business but also from new customers in China.
As Dave realizes that his small U.S.-based business is competing for shop space with companies
in China, he faces the management challenge involved with
A) globalization.
B) technological change.
C) the importance of knowledge and ideas.
D) collaboration across organizational boundaries.
E) an increasingly diverse labor force.

112) DefenseSolutions is updating its automated contracting/ordering system. Kent Truvale,

CEO of Defense Supply Corporation, told his chief information officer, "Travis, you must lead
an effort to re-engineer our computer infrastructure to remain compatible with that of
DefenseSolutions. This will be a complex effort but, if we can get this done before our
competitors can, we will pick up a lot of new business worldwide. That's the nature of ________
—it complicates things and creates opportunities."
A) planning
B) technological change
C) emotional intelligence
D) social capital
E) controlling

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written consent of McGraw-Hill Education.
113) The unique ideas and products that WindStorm Group has patented provide a significant
advantage to its business because none of its competitors are able to offer them. Because
WindStorm's CEO recognizes the ________, he has authorized development of practices to
discover and harness his organization's intellectual resources.
A) impact of globalization
B) value of social capital
C) importance of knowledge management
D) importance of collaborating across organizational boundaries
E) value of an increasingly diverse labor force

114) During an intense six-month contract negotiation, Colton developed a strong working
relationship with his client, Art, an outside vendor. Because of their professional bonding, Colton
and Art were able to openly explore and constructively hammer out agreements on very tough
contract issues. The resulting contract was far superior to what either Colton or Art might have
hoped for six months earlier and was a good example of
A) globalization.
B) technological change.
C) the importance of knowledge and ideas.
D) collaboration across organizational boundaries.
E) an increasingly diverse labor force.

115) Raj Reddy, Vice President of Human Resources for Grandy Supply Corporation, is finding
that competition for human talent is becoming fiercer. He has implemented creative solutions to
leverage diversity of the labor force to the benefit of his organization. For example, Raj has
found that ________ allows him to supplement his available staff, particularly during times of
work overload.
A) turning down new work orders
B) hiring illegal immigrants
C) slowing down production
D) hiring older workers on a part-time basis
E) decreasing time off for lunch and other breaks

116) Briefly describe each of the four key management functions.

117) Differentiate between the various management levels in an organization.

118) At which level of management will one find conceptual and decision skills most utilized?
Why?

119) What does a global marketplace mean to an enterprise, in terms of marketing, distribution,
and staffing?

120) List and explain each of the five sources of competitive advantage.

121) Explain why customers demand increasingly high-quality goods and services.

122) Explain how one gains customer loyalty.

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123) Describe what the work of quality gurus like W. Edwards Deming and J. M. Juran
convinced other managers to do.

124) Explain, using two examples, how continuing enhancements in technology can result in
delivery of products and services both faster and better.

125) Why is it important to manage one's costs?

126) List and explain the different advantages of competition.

127) Explain how managers are efficient and effective.

128) List and explain the components of leading.

129) How do managers use controlling?

130) Explain what is meant by "Trade-offs may occur among the five sources of competitive
advantage, but this does not need to be a zero-sum game."

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