I.

True/False
1) The four basic management functions are planning, organizing, influencing and
controlling.True
2) 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.True
3) Planning is concerned only with organizational success in the short term, while
organizing is concerned with the more distant future (long term) False
4) Influencing is the process of assigning the tasks developed under the planning
function to various individuals or groups within the organization.False
5) Organizing is also commonly referred to as motivating, leading, directing, or
actuating.False
6) According to the concept of corporate social responsibility, managers should
regard societal goals as more important than organizational goals. False
7) The Davis Model of Corporate Social Responsibility proposes businesses to
operate as two-way open systems, with open receipt of inputs from society and open
disclosure of operations to the public.True
8) Certain business institutions become involved in certain social problems that are
outside their normal areas of operation. This behavior is inconsistent with the Davis
Model of Corporate Social Responsibility. False
9) Consumer affairs and community volunteerism are considered areas of corporate
social responsibility.True
10) Empirical studies, conducted by various corporations in the United States, have
demonstrated a definitive relationship between corporate social responsibility and
profitability. False
11) Controlling is the management function through which managers compare
present performance to pre established performance standards.True 0
12) Organizational resources are of four basic types: planning, organizing, leading
and controlling. False
13) 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.False
14) Management jobs vary but management principles are universal. The basic
ingredients of successful management are applicable to all organizations.True
15) Technical skills involve the ability to apply specialized knowledge and expertise
to work-related techniques and procedures.True
16) Adherence to legislated social responsibilities is the minimum standard of social
responsibility performance that business managers must achieve. True
17) The primary function of the Equal Employment Opportunity Commission is to
ensure that employers holding federal contracts grant equal employment opportunity
to people regardless of their race or sex.False
18) The primary function of the Consumer Product Safety Commission is the
regulation of safety and health conditions in non government workplaces.False
19) The greater the degree of effectiveness and efficiency in pursuing its social
responsibilities, the more socially responsive the organization is said to be.True
20) Any individual or group that is directly or indirectly affected by an organization's
decisions is called a stakeholder.True
21) Human skills, unlike technical skills, involve the ability to see the organization as
a whole. False
22) As one moves from lower-level management to upper-level management,
conceptual skills become more important and technical skills less important.True
23) Providing recognition for achievements and contributions, developing skill and
confidence of organization members are change-related activities. False
24) In an organization, short-term planning, clarifying objectives of jobs in
organizations, and monitoring operations and performance are task-related
activities.True
25) To increase the probability of being successful, managers should have
competence in recognizing. This involves checking with people before making
decisions that affect them, encouraging participation in decision-making, and using
the ideas and suggestions of others.F
26) The social obligation approach considers business as having both societal and
economic goals as well as the obligation to anticipate potential social problems and
work actively toward preventing their occurrence.False
27) Organizations that take the social obligation approach usually achieve higher
levels of social responsiveness than organizations that take the social responsibility
approach.False
28) Controlling in the area of social responsibility does not entail assessments or
measurements. False
29) All companies should take social responsibility measurements in the quality-of-
life area and the economic function area.True
30) A social audit is conducted to measure the present social responsibility activities
of an organization.True
31) A career is a sequence of work-related positions occupied by a person over the
course of a lifetime.True
32) The exploration stage occurs at the beginning of a career and is characterized by
self-analysis and the exploration of different types of available jobs.True
33) Career plateauing is a period of declining performance and productivity.False
34) The second stage in career evolution is the establishment stage, during which
individuals about 25 to 45 years old start to become more productive, or higher
performers.True
35) An organization that wants to retain an employee may need to assist that
employee's spouse in his or her career development as well.True
36) Ethical managers strive for success within the confines of sound management
practices that are characterized by fairness and justice.True
37) A code of ethics is an informal statement that organizations release to help its
employees obtain a basic understanding of ethics.False
38) The utilitarian principle advocates the view that people should act in a way they
would expect others to act toward them.False
39) Kant's categorical imperative proposes to act in such a way that the action taken
under the circumstances could be a universal law, or rule, of behavior.True
40) A whistle-blower is an employee who performs quality reviews within an
organization and reports flaws in the processes.False

41) The process of determining how an organization can get where it wants to go and
what it will do to accomplish its objectives is ________.
C) planning

42) Which of the following is the fundamental purpose of planning?

B) helping the organization reach its objectives

43) ________ is the process of establishing orderly uses for resources within the
management system.
A) Organizing

44) ________ skill is the ability to establish orderly uses for resources within the
management system.
A) Organizing

45) ________ is the process of guiding the activities of organization members in

appropriate directions.
B) Influencing

46) Which of the following is the primary purpose of the influencing subsystem?
C) attainment of management objectives

47) Ensuring that an event occurs as it was planned to occur constitutes ________.
A) control

48) ________ is the systematic effort to compare performance to predetermined

standards in order to determine whether performance is in line with those standards, or
needs to be corrected.
C) Controlling

49) 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 _______.
B) influencing

50) Motivating employees to perform better so that they can achieve the
organization's goals is known as ________.
B) influencing

51) Lebron wants to file a complaint against EatFry, a fast-food restaurant, because he
was rejected in a job interview with the firm. Lebron believes that he was
discriminated against because of race. Which of the following federal agencies should
he approach?
E) Equal Employment Opportunity Commission

52) Social responsiveness can be defined as ________.

D) the degree of effectiveness and efficiency an organization displays in pursuing
its social responsibilities

53) The protective purpose of planning is to ________.

D) minimize risk by reducing the uncertainties surrounding business conditions

54) The affirmative purpose of planning is to ________.

A) increase the degree of organizational success

55) Fred is a Grade D manager in Lighthouse Infrastructure and manages a small team
of eight engineers. The company has 15 Grade D managers. He worked his way up
from the lowest grade, Grade E, where he was one of 52 line managers and hopes to
be promoted to Grade C soon, which would make him one of the six vice-presidents
in the company. However, breaking into Grade B, comprising three presidents, will be
a challenge. Only the CEO and COO occupy Grade A. Which of the following
numbers represents Fred's span of control?
D) 8

56) Dorothy Woods, CEO of Arcadia Corp., is planning to widen the spans of
management in the organization in order to have a flatter organization. Which of the
following, if true, would support Dorothy's strategy?
A) Arcadia Corp. is a market leader in developing, manufacturing and selling
customized innovative, cutting edge communication technology to corporations.

57) Trot is the CEO of a consulting firm. He plays a key role in guiding the activities
of organization members in appropriate directions. This role performed by Trot can be
called ________.
B) influencing
58) You are speaking to one of your professors. You tell the professor that you are
satisfied with the grades that you have received. In this communication situation you
are a(n) ________.
A) encoder

59) As part of the controlling process, you have finished measuring the performance
of your team. What must you do next?
B) Compare measured performance to standards.

60) Which of the following is the best example of raw data?

B) a projection of future product demand

61) The primary management function is ________.

D) planning

62) Alternatives to reach an organizational objective are based on assumptions

which are called ________.
D) premises

63) According to Fayol's guidelines for organizing resources, you should avoid
________.
D) regulations, redtape, and paperwork

64) According to Fayol's guidelines for organizing resources, you should do all of the
following, EXCEPT ________.
A) establish multiple guiding authorities

65) Which of the following is considered a primary managing activity?

A) building corporate culture

66) Primary management activities such as communicating, leading, and motivating

are considered ________.
A) influencing processes

67) ________ and ________ have been called the "Siamese twins of management."
C) Planning; controlling

68) Which of the following is the first step in the controlling process?
C) measuring performance

69) ________ is the management function through which managers compare present
performance to preestablished performance standards.
C) Controlling
70) Gathering information that measures recent performance within the organization
is part of the ________ management function.
B) controlling

71) Managers who have successfully increased the value of the organization have
fulfilled their social obligation towards ________.
A) stockholders

72) ________ is defined as the process of determining how the organization will
achieve its objectives, or get where it wants to go.
C) Planning

73) A disadvantage of planning is that it ________.

D) can take up too much managerial time

74) Which of the following is an advantage of planning?

B) enhances decision coordination

75) According to the contingency viewpoint to designing span of management, which

of the following situations would warrant a relatively wide span of control?
C) Managing a virtual team of engineers spread across several countries.

76) Andrew is a mid-level manager with three organizational levels above him and
two below him. He has four analysts reporting directly to him. Using Graicunas's
formula, calculate the total number of possible relationships between Andrew and his
subordinates.
C) 44

77) Which of the following is the most complete and accurate description of
communication barriers?
C) external stimuli that interfere with transmission of messages from the sender
to the receiver

78) Which of the following is an example of a macrobarrier when a manager

communicates with his or her subordinates?
B) The subordinates have a strong negative attitude toward the manager.

79) The CEO of Pegasus Inc. wants to know the ROI on a recent promotional drive to
develop the marketing strategy for next year. The Marketing Manager sends him a
detailed report on the all the personnel in his department and the salaries and bonuses
paid to them over the past year. This information is likely to be useless to the
Operations manager because it is not ________.
A) appropriate
80) Information ________ is the extent to which the receipt of information allows
decisions to be made and action to be taken so the organization can gain some benefit
from possessing the information.
C) timeliness

81) ________ is the key to a successful planning process.

C) Implementation

82) A system created as part of the overall management system is a(n) ________.
D) subsystem

83) According to Fayol's guidelines for organizing resources, you should ________.
D) recognize the unity of command

84) Which of the following is the first step in the organizing process?
B) reflect on plans and objectives

85) Which of the following is considered a fundamental managerial skill?

B) communication abilities

86) The capacity of people to recognize their own feelings and the feelings of others,
to motivate themselves, and to manage their own feelings as well as the emotions in
relationships with others, is called ________.
A) emotional intelligence

87) The level of activity established to serve as a model for evaluating organizational
performance is a(n) ________.
C) standard

88) Which of the following is the last step in the controlling process?
C) measuring performance

89) 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.
E) planning

90) Seth, a manager in a growing organization, believes that creating departments

leads to the formation of barriers in an organization. Not establishing departments
appropriately while ________ can be a huge management mistake.
A) organizing

91) ________ is defined as the management process of guiding the activities of

organization members to help attain organizational objectives.
E) Influencing
92) In which of the following stages of performing social responsibility activities
does a manager lead, communicate, motivate, and work with groups to attain the
organization's social responsibility objectives?
A) influencing

93) Planning is advantageous to an organization, particularly in the creation of new

ventures. According to an often-cited survey, as many as 65 percent of all newly
started businesses are not around to celebrate a fifth anniversary. This high failure rate
seems primarily a consequence of inadequate planning. Successful businesses have an
established plan, a formal statement that outlines the objectives the organization is
attempting to achieve. Planning does not eliminate risk, of course, but it does help
managers identify and deal with organizational problems before they cause havoc in a
business. Which of the following best expresses the main point of this paragraph?
D) Effective planning helps managers identify and plan for all organizational
problems.

94) The first step in the planning process is to ________.

B) state organizational objectives

95) Which of the following is true about the height of an organization chart?
D) Normally, the greater the height of the organization chart, the smaller the
span of management.

96) The organization structure at Kinetic Machines is horizontally divided into

Marketing, Finance, Production, and R&D departments. Identify the
departmentalization mode being used here.
C) functional

97) To minimize the negative effects of the perceptual differences of receivers on

interpersonal communication, managers should ________.
C) try to send messages with precise meanings

98) What is the major purpose of feedback in the communication process?

A) It is used by the source to ensure successful communication.

99) Immediately after Randor Leather awarded a long-term contract for supply of raw
materials, its Operations Manager gets information from a vendor about a much
cheaper source of raw material. This information is likely to be of little use to the
business because it is not ________.
B) of good quality

100) As part of a process of job redesigning, the HR manager of Mars LLC conducted
an informal survey of employees to assess their job satisfaction levels. However,
fearing negative action, few employees gave clear, unambiguous responses to the HR
manager's questions. This survey is likely to be of little use to the HR manager
because it is ________.
D) not in sufficient quantity

101) The targets toward which an open management system is directed are
________.
C) organizational objectives

103) The second and third steps of the organizing process focus on the ________.
D) tasks to be performed within the management system

104) Which of the following is the last step in the organizing process?
B) Evaluate results of organizing strategy.

105) An individual's emotional intelligence is characterized by self-awareness, self-

motivation, self-regulation, empathy for others, and ________.
D) adeptness in building relationships

106) Which of the following terms best represents the capacity of people to recognize
their own feelings and the feelings of others, to motivate themselves, and to manage
their own feelings as well as the feelings in relationships with others?
D) emotional intelligence

107) ________ is managerial activity aimed at bringing organizational performance

up to the level of performance standards.
B) Corrective action

108) Factors within an organization that are barriers to organizational goal attainment
are called ________.
A) problems

109) 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.
B) influencing

110) Gayle has not established appropriate performance standards for her team. This
is a fault in the ________ function of management.
C) controlling

111) The social responsibility measurement in the ________ area includes

performing tasks like producing goods and services that people need, paying fair
wages, and ensuring worker safety.
D) economic function

112) The social responsibility measurement in the ________ area includes tasks like
making an effort to preserve the natural environment.
E) quality-of-life
113) What is the underlying assumption in the first alternative?
A) Customers associate high prices with high quality and vice versa.
B) Customers are more quality conscious than price sensitive.
C) Low-cost raw materials will not affect the overall quality of the final product.
D) The company's relationship with its current suppliers is strong.

114) What is the underlying assumption in the second alternative?

A) Competitors are also likely to adopt high-end technology.
B) Consumers' purchase decisions are directly influenced by the manufacturing
process.
C) The availability of better technology translates into higher worker productivity.
D) The costs associated with upgrading will outweigh the benefits.
E) Alternate suppliers can provide raw materials at a lower cost.

115) The organization structure at Sinclair Funds, a financial services company, is

divided horizontally into Insurance, Mutual Funds, and Wealth Management
departments. Identify the departmentalization mode being used here.
C) product or service

116) Gizmo Sales, a company that sells office supplies to companies in Atlanta, GA,
has organized the business horizontally into departments named North Atlanta, South
Atlanta, and Downtown Atlanta. This indicates that Gizmo has departmentalized on
the basis of ________.
D) territories

117) You are the manager of a legal consulting firm. Which of the following is an
example of microbarrier of communication that you are likely to come across?
A) The firm has several international clients who speak different languages and
have different cultures.

118) Which of the following should the source do to gather nonverbal feedback?
A) observe the destination's gestures and facial expressions

119) "Paralysis by analysis" is generally caused by ________.

A) information overload

120) Which of the following is the first step in evaluating organizational

information?
A) pinpointing the data to be analyzed