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1-1
Contemporary Management Jones 8th
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Chapter 01
Managers and Managing
True / False Questions
1. Organizations are collections of people who work together and coordinate their actions to achieve
a wide variety of goals.
True False
2. Management is the planning, organizing, leading, and controlling of resources in order to achieve
organizational goals both effectively and efficiently.
True False
3. An organization’s resources include assets such as people and their skills, know-how, and
experience.
True False
4. Organizations are effective when managers minimize the amount of input resources.
True False
5. Organizational performance is a measure of how efficiently and effectively managers use available
resources to satisfy customers and achieve organizational goals.
True False
6. Efficiency is a measure of the appropriateness of the goals that managers have selected for the
organization to pursue and the degree to which the organization achieves those goals.
True False

1-2
7. At a recent staff meeting, Jim was praised by his CEO for always choosing the right goals to
pursue. The quality that Jim displays here is efficiency.
True False
8. Managers affect society directly with their decisions regarding the use of resources.
True False
9. Management teaches people not yet in positions of authority how to lead coworkers, solve
conflicts between them, achieve team goals, and thus increase performance.
True False
10. The essential tasks of management include planning, organizing, leading, and controlling.
True False
11. Leading is the process that mangers use to select the goals for the organization.
True False
12. As a part of planning, managers establish accurate measuring and monitoring systems to evaluate
how well the organization has achieved its goals.
True False
13. Strategies are a cluster of decisions concerning what organizational goals to pursue, what actions
to take, and how to use resources to achieve these goals.
True False
14. Planning strategies is a simple and straightforward process, since it is done under circumstances
when the result is known and assured.
True False
15. A low-cost strategy allows an organization to attract customers by selling goods of inferior quality
at a very low price.
True False
16. Categorizing people according to their salary into various departments of an organization is known
as organizing.
True False

1-3
17. During the planning process, managers lay out the lines of authority and responsibility between
different individuals and groups.
True False
18. Managers engaged in the controlling function of management energize their employees and
ensure they understand their role in achieving organizational goals.
True False
19. An outcome of the controlling function should be the ability to measure the organization's
performance accurately.
True False
20. First-line managers are responsible for the daily supervision of the nonmanagerial employees who
perform the specific activities necessary to produce goods and services.
True False
21. First-line managers typically supervise middle managers.
True False
22. Top managers are responsible for the performance of all departments.
True False
23. The importance of planning, organizing, leading, and controlling remains the same irrespective of
a manager’s position in the managerial hierarchy.
True False
24. The amount of time that managers spend planning and organizing resources decreases as they
ascend the hierarchy within the organization.
True False
25. The lower a manager's position is in the organization's hierarchy, the lesser time she spends in
leading and controlling the first-line managers of the organization.
True False
26. The ability to distinguish between the cause and the effect of a problem in an organization is an
important part of the technical skills of a manager.
True False

1-4
27. Top managers require the least conceptual skills because their primary responsibilities are
planning and organizing.
True False
28. Human skills are innate and cannot be learned.
True False
29. The job-specific skills required to perform a particular type of work or occupation at a high level
are called conceptual skills.
True False
30. The array of technical skills managers need depends on their position in their organizations.
True False
31. An organization's competitive advantage does not derive from departmental skills.
True False
32. Despite global competition and advances in information technology, the tasks and responsibilities
of managers have undergone little change in recent years.
True False
33. Restructuring cannot be accomplished by reducing levels in the hierarchy.
True False
34. First-line managers are unlikely to be affected by restructuring.
True False
35. Modern IT’s ability to improve efficiency has decreased the incidence of downsizing in recent
years.
True False
36. Restructuring boosts the morale of employees.
True False
37. Outsourcing hinders the development of new products.
True False

1-5
38. Empowering employees can lead to so many kinds of performance gains that organizations often
use their reward systems to promote empowerment.
True False
39. IT cannot be used to empower employees as it decreases the scope of their job responsibilities.
True False
40. Employees involved in total quality management (TQM) are responsible for finding new and better
ways to perform their jobs.
True False
Multiple Choice Questions
41. 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
42. _____ 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

1-6
43. 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.
44. 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
45. 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
46. Oceania Unlimited Inc. is a tourism agency that offers special holiday packages in the Pacific
region. Every year, as an incentive, the most efficient and effective manager in the network gets
an all-expenses-paid trip to one of Oceania’s islands. Which of the following managers is most
likely to meet these requirements?
A. Nico, who chooses the right goals to pursue, and spends more than he needs on resources
B. Karen, who chooses the right goals to pursue, and makes clever use of resources to achieve
them
C. Douglas, who chooses the right goals to pursue and displays an overly rigid approach to
planning
D. Barrie, who chooses unrealistic goals, and tries hard to succeed
E. Leo, who chooses appropriate goals, but is slow in decision making

1-7
47. Jack Sprouts Inc. is a company based in Riverdale that markets canned vegetables. In recent
years, Jack Sprouts’ business has declined considerably owing to a weak focus on quality.
Holding the managers responsible for the declining sales figures, the CEO of Jack Sprouts
decided to lay off those who lacked effectiveness and were inefficient. Who among the following is
most likely to be laid off by Jack Sprouts’ CEO?
A. Elise, who is ambitious and favors directional planning
B. Kerry, who spends lavishly on resources and is averse to taking responsibilities
C. Juan, who chooses appropriate goals to pursue but does not always succeed due to resource
constraints
D. Margo, who sets high targets for himself and his team, and makes best use of available
resources to meet them
E. Andy, who plans carefully and only chooses realistic goals to pursue
48. 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.
49. 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.
50. 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.

1-8
51. 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.
52. A company with a low level of efficiency and high level of effectiveness is most likely to produce:
53. A company with a low level of efficiency and low level of effectiveness is most likely to produce:
54. Robert is the product manager at Digital Digs, LLC, a company that manufactures computer
accessories. He is known for his effectiveness and efficiency, qualities that are highly regarded in
the company where he works. Which of the following can be fittingly inferred with regard to Digital
Digs?
A. Its products meet consumer needs, but are too expensive for them to buy.
B. Its products meet consumer needs at a price they can afford.
C. Its products are usually non-durable.
D. Its products have limited utility.
E. Its products are mostly complex in design.

1-9
55. The Art Hub makes and sells paintings, sculptures, and small craft items. Its products meet
consumer needs, but are often too expensive to buy. Which of the following is most likely to be
true with regard to the company?
A. It has a high level of efficiency and low level of effectiveness.
B. It has a high level of effectiveness and low level of efficiency.
C. Its product manager chooses the wrong goals to pursue and uses the resources inadequately.
D. Its product manager chooses the right goals to pursue and uses the resources wisely.
E. Its product manager chooses inappropriate goals to pursue, but uses the resources wisely.
56. Toy Town makes and sells jigsaw puzzles and strategy board games. Its products are of excellent
quality, but fail to meet consumer needs. Which of the following is most likely to be true with
regard to Toy Town?
A. It has a high level of efficiency and low level of effectiveness.
B. It has a high level of effectiveness and low level of efficiency.
C. Its product manager chooses the wrong goals to pursue and uses the resources inadequately.
D. Its product manager chooses the right goals to pursue and uses the resources wisely.
E. Its product manager responds quickly to change.
57. 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
58. 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

1-10
59. 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
60. Marietta is the product manager at Fireflies Ltd., a company that designs and manufactures
clothes and fashion accessories. Noticing the rising popularity of rhinestone jewelry and the fact
that only a handful of stores actually stocked it, she decided to take advantage of the latent
demand in the market. Marietta knew that she was taking a risk by committing organizational
resources to pursuing this idea, but was confident about the merit of her decision. In deciding the
allocation of resources for attaining her goals, which managerial task can Marietta be said to be
performing?
A. Leading
B. Organizing
C. Planning
D. Restructuring
E. Controlling
61. 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

1-11
62. Melissa, the HR manager of a publishing house, has been asked to increase the level of efficiency
at the workplace. She decides to restructure work relationships within the company and categorize
people into departments according to the kinds of job-specific tasks they perform. Which of the
following managerial tasks is Melissa performing?
A. Planning
B. Leading
C. Organizing
D. Controlling
E. Consolidating
63. _____ 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
64. 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
65. 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

1-12
66. _____ 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
67. In _____, managers evaluate how well the organization is accomplishing its goals.
A. leading
B. planning
C. organizing
D. disseminating
E. controlling
68. 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.
69. 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.

1-13
70. 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
71. Abby, the CEO of Little Angel Photography, reviews the performance of her company over the last
quarter to determine whether they are meeting the planned sales and profitability goals. In this
instance, which managerial task is she performing?
A. Planning
B. Organizing
C. Delegating
D. Controlling
E. Structuring
72. According to Mintzberg’s typology, a manager who commits organizational resources to develop
innovative goods and services is a(n) _____.
A. entrepreneur
B. negotiator
C. figurehead
D. liaison
E. disseminator
73. According to Mintzberg’s typology, a manager who establishes agreements with other
organizations about pooling company resources while working on joint projects is a(n) _____.
A. figurehead
B. entrepreneur
C. monitor
D. negotiator
E. disseminator

1-14
74. According to Mintzberg’s typology, a manager who evaluates the performance of other managers
in different tasks and takes corrective action to improve their performance is a _____.
A. disseminator
B. figurehead
C. monitor
D. spokesperson
E. negotiator
75. James, the manager of Andy’s Candy, a popular confectioner in Illinois, is in charge of outlining
future organizational goals to employees at company meetings and emphasizing the ethical
guidelines which employees are expected to follow at work. According to Mintzberg, he is
performing the role of a _____.
A. figurehead
B. negotiator
C. monitor
D. liaison
E. resource allocator
76. Following an oil spill in the Gulf of Mexico, the CEO of an American petroleum company took the
responsibility for correcting the environmental damages caused by his company. According to
Mintzberg’s typology, in doing so, he is performing the role of a _____.
A. liaison
B. disturbance handler
C. monitor
D. disseminator
E. figurehead
77. When a manager informs employees about changes taking place in the external and internal
environments that will affect them and the organization she plays the role of a(n) _____ according
to Mintzberg.
A. entrepreneur
B. disseminator
C. disturbance handler
D. monitor
E. liaison

1-15
78. In an interview with a television channel, the Public Relations manager of KP Oil explained what
his company intended to do to tackle the threat to marine life caused by an oil spill in the Pacific
Ocean. The oil spill was caused by a tanker ship accident carrying crude oil for the company.
According to Mintzberg, the PR manager of KP Oil is playing the role of a _____.
A. liaison
B. figurehead
C. leader
D. disseminator
E. spokesperson
79. SkyGen, an airlines company, appointed an engineer to be the link between the company's R&D
department and the government contractor who is sponsoring the designing and prototyping of a
new fighter airplane. According to Mintzberg, the engineer appointed by SkyGen to be the link
between the company's R&D department and the government contractor is playing the role of a
_____.
A. monitor
B. leader
C. figurehead
D. resource allocator
E. liaison
80. Supervisors are also referred to as _____.
A. first-line managers
B. middle managers
C. top managers
D. interim managers
E. executive managers
81. 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.

1-16
82. 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.
83. 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.
84. 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.
85. 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.
86. 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

1-17
87. 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.
88. 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
89. Bob was recently promoted to the position of manager of the engineering division in his company
because of his knowledge and his ability to perform all the functions required in his field. In this
instance, Bob was promoted because of his _____ skill.
A. conceptual
B. planning
C. human
D. technical
E. leading
90. 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.

1-18
91. 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
92. 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.
93. 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
94. _____ 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

1-19
95. _____ 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
96. 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.
97. _____ 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
98. 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

1-20
99. _____ is the creation of a new vision for a struggling company using a new approach to planning
and organizing to make better use of a company’s resources and allow it to survive and eventually
prosper.
A. Total quality management
B. Task management
C. Talent management
D. Turnaround management
E. Workforce management
100.The process of creating new products that customers want is called:
A. market segmentation.
B. total quality management.
C. cost control.
D. innovation.
E. restructuring.
Essay Questions
101.Distinguish between efficiency and effectiveness and explain how they impact the performance of
an organization.

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