Multiple Choice Questions

1. One way to think of management is ___.  

A.  efficiency in motion

B.  the science of helping people
C.  the science of accomplishing things
D.  the art of getting things done through people
E.  the science of synergy

Management, said one pioneer of management ideas, is "the art of getting things done through people."

2. Don works diligently to accomplish the company goals in an efficient and effective manner, utilizing his
employees through planning, organizing, leading, and controlling company resources. Don is ___. 

A.  developing synergy

B.  managing
C.  entrepreneuring
D.  delegating
E.  vision planning

Management is defined as (1) the pursuit of organizational goals efficiently and effectively by (2)
integrating the work of people through (3) planning, organizing, leading, and controlling the
organization's resources.

3. Tom, a restaurant general manager, carefully watches his costs by reusing some items that in the past
were immediately thrown away. Tom is an example of a(n) _____ manager. 
 

A.  effective
B.  diverse
C.  detail
D.  efficient
E.  macro

Efficiency is the means of attaining the organization's goals. To be efficient means to use resources such
as people, money, and raw materials wisely and cost-effectively.

 
4. Management is defined as the pursuit of organizational goals ____.  

A.  efficiently and effectively

B.  correctly and with synergy
C.  economically
D.  efficiently and in a detailed-oriented manner
E.  with passion and effectiveness

Management is defined as the pursuit of organizational goals efficiently and effectively.

5. The multiplier effect states that a manager's influence on the organization ___.  

A.  has implications far beyond the results that can be achieved by one person acting alone
B.  is felt repeatedly for many days
C.  can have great and continual cost implications
D.  also results in large consequences for employees' families
E.  can result in many types of company diversity

In being a manager you have a multiplier effect: your influence on the organization is multiplied far
beyond the results that can be achieved by just one person acting alone.

6. The rarest and most precious resource in business according to Fortune magazine is ___.  

A.  financial capital

B.  skilled and effective managers
C.  quality, low-cost equipment
D.  healthy workers
E.  workers and managers

Exceptional managers are in high demand. "The scarcest, most valuable resource in business is no
longer financial capital," says a Fortune article. "It's talent. If you doubt that, just watch how hard
companies are battling for the best people.... Talent of every type is in short supply, but the greatest
shortage of all is skilled, effective managers."

 
7. Those who study management will understand how to ___. 

A.  relate to their managers and deal with organizations from the outside
B.  better manage money
C.  relate to coworkers and deal with technology
D.  sell their product
E.  counsel workers on personal and family issues

A few of the payoffs of studying management as a discipline include understanding how to deal with
organizations from the outside, understanding how to relate to your supervisors and coworkers, and
understanding how to manage yourself in the workplace.

8. Becoming a manager offers ___. 

A.  few rewards due to the large amount of stress

B.  many rewards apart from money and status
C.  an individual to be exempt from some current laws
D.  an individual to not have to stretch his or her abilities
E.  little apart from money and status

In addition to money and status, there are many rewards to being a manager including experiencing a
sense of accomplishment, stretching your abilities and magnifying your range, and building a catalog of
successful products or services.

9. Samuel, a marketing manager, recently attended a management workshop where he learned of Mihaly
Csikzentmihalyi's view that the ideal state that many people seek is ___. 
 

A.  between a high and low pay rate

B.  a point of little working and more relaxing
C.  an emotional zone somewhere between boredom and anxiety
D.  where very little work is required
E.  a high-pressure career that makes an individual stronger

The ideal state that many people seek is an emotional zone somewhere between boredom and anxiety, in
the view of psychologist Mihaly Csikzentmihalyi. Boredom, he says, may arise because skills and
challenges are mismatched: you are exercising your high level of skill in a job with a low level of
challenge, such as licking envelopes. Anxiety arises when one has low levels of skill but a high level of
challenge, such as suddenly being called upon to give a rousing speech to strangers.
10. ABC Manufacturing employs some of the top professionals in its field, and because of their skills and
experience, ABC is highly efficient and outperforms its competitors. ABC Manufacturing has a ____
over its competition.  

A.  quality mark

B.  effectiveness advantage
C.  synergy
D.  leadership dimension
E.  competitive advantage

Competitive advantage is the ability of an organization to produce goods or services more effectively
than competitors do, thereby outperforming them.

11. Gregson Production is keenly aware of the need to daily strive to produce goods and services more
effectively than its competitors. Therefore, to achieve this standard, Gregson's management strives to
____. 

A.  maintain a diverse workforce

B.  be responsive to employees
C.  stay involved with the community
D.  maintain quality and efficiency
E.  increase its global presence

Competitive advantage is the ability of an organization to produce goods or services more effectively
than competitors do, thereby outperforming them. This means an organization must stay ahead in four
areas: (1) being responsive to customers, (2) innovation, (3) quality, and (4) efficiency.

22. As organizations strive to obtain a competitive advantage, taking care of the customer is the ____.  

A.  Golden Marketing Rule

B.  first law of business
C.  Employee Rule
D.  Profit-Generating Code
E.  synergy focus

The first law of business is: take care of the customer. Without customers, whatever they're called,
sooner or later there will be no organization. This is known as responsiveness to customers, an important
component of competitive advantage.

 
13. Even for nonprofits, sooner or later there will be no organization without ____. 

A.  ethical standards

B.  good laws
C.  the Employee Rule
D.  customers
E.  synergy focus

Without customers—buyers, clients, consumers, shoppers, users, patrons, guests, investors, or whatever
they're called—sooner or later there will be no organization.

44. The owners of a local restaurant routinely try to develop new menu items and seek better ways of
helping their customers; this is an example of ___. 

A.  synergy
B.  the production objective
C.  MBO
D.  efficiency
E.  innovation

Finding ways to deliver new or better goods or services is called innovation. No organization, for-profit
or nonprofit, can allow itself to become complacent, especially when rivals are coming up with creative
ideas. "Innovate or die" is an important adage for any manager.

15. Because Ace Development Services is the only company that supplies a critical product for clients,
customers of Ace are likely to ____. 

A.  put up with poor-quality products

B.  stop producing products needing the Ace part
C.  l be more profitable
D.  increase company synergy
E.  pay lower prices for the Ace parts

If your organization is the only one of its kind, customers may put up with products or services that are
less than stellar but only because they have no choice. But if another organization comes along and
offers a better-quality product, you may find your company falling behind.

 
16. With production today, companies emphasize _____. 
A.  efficiency
B.  increased synergy
C.  diversity
D.  training
E.  employee happiness

A generation ago, organizations rewarded employees for their length of service. Today, however, the
emphasis is on efficiency: Companies strive to produce goods or services as quickly as possible using as
few employees (and raw materials) as possible.

17. Today nearly one in six American workers is _____. 

A.  born in the United States
B.  born in Canada
C.  under the age of 18
D.  over the age of 65
E.  foreign-born

Today nearly one in six American workers is foreign-born, the highest proportion since the 1920s. By
midcentury, the mix of American racial or ethnic groups will change considerably, with the United
States becoming half (54%) racial or ethnic minority. Non-Hispanic whites are projected to decrease
from 63% of the population in 2011 to 47% in 2050. African Americans will increase from 12% to 13%,
Asians and Pacific Islanders from 5% to 9%, and Hispanics from 17% to 29%.

18. New York Times columnist Thomas Friedman noted that globalization has leveled the competitive
playing fields between industrial and emerging-market countries. This phenomenon proposes that ____. 
A.  the world is one
B.  globalism is decreasing
C.  the world is flat
D.  world economies are too narrow
E.  one world government is the answer

American firms have been going out into the world in a major way, even as the world has been coming
to us. This has led to what New York Times columnist Thomas Friedman has called, in his book The
World Is Flat, a phenomenon in which globalization has leveled (made "flat") the competitive playing
fields between industrial and emerging-market countries.

  
19. The discipline concerned with creating computer systems that simulate human reasoning and sensation
is known as ___. 
A.  human simulation
B.  simulation production
C.  IT simulation
D.  artificial intelligence
E.  cognitive cloning

Artificial intelligence (AI) is the discipline concerned with creating computer systems that simulate
human reasoning and sensation, as represented by robots, natural language processing, pattern
recognition, and similar technologies.

20. Using state-of-the-art computer software and hardware to help people work better together is known as
____. 
A.  a strategy database
B.  collaborative computing
C.  a knowledge base
D.  a wisdom system
E.  knowledge management

Using state-of-the-art computer software and hardware to help people work better together is known as
collaborative computing. Goal setting and feedback will be conducted via Web-based software programs
such as eWorkbench, which enables managers to create and track employee goals.

21. A national sales organization has implemented a set of training courses on its intranet, with a link that
allows employees to find and share answers to questions that arise with customers. This system that
allows the sharing of knowledge and information throughout an organization is known as ___. 
A.  a strategy database
B.  knowledge implementation
C.  a knowledge base
D.  a wisdom system
E.  knowledge management

Knowledge management is the implementing of systems and practices to increase the sharing of
knowledge and information throughout an organization.

 
22. Shoshanna, the regional manager of a global sales organization, gives freedom to the sales
representatives on the amount spent on gifts for prospective Asian and European customers. Shoshanna
is managing for ____. 
A.  dilemma resolution
B.  global standards
C.  international politics
D.  ethical standards
E.  global diversity

With the pressure to meet sales, production, and other targets, managers can find themselves confronting
ethical dilemmas.

23. When building a new residential development or mall, a national real estate organization typically does
not remove many trees, basing its decision on the belief that natural resources are limited and the
company must not compromise the ability of future generations to meet its own needs. This philosophy
is known as ___. 
A.  sustainability
B.  environmental stimulation
C.  natural ethics
D.  enviroethics
E.  green values

Sustainability is defined as economic development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.

24. Being a manager can be one of the greatest avenues to a meaningful life, particularly if the manager
____. 
A.  is working in a diverse culture
B.  has a supportive family
C.  is working within a supportive or interesting organizational culture
D.  likes his or her job
E.  works in an organization with a strong training program

Being a manager can be one of the greatest avenues to a meaningful life, particularly if you are working
within a supportive or interesting organizational culture.

25. The principal functions of management are ___. 

A.  executing, planning, organizing, leading
B.  scheduling, organizing, leading, staffing, monitoring
C.  staffing, planning, motivating, delegating
D.  planning, organizing, leading, controlling
E.  staffing, planning, leading, delegating

Managers perform what is known as the management process, also called the four management
functions: planning, organizing, leading, and controlling.

 
26. When the manager of a local restaurant sets goals and then develops a plan on how to achieve them, she
is ____. 
A.  planning
B.  monitoring
C.  delegating
D.  organizing
E.  staffing

Planning is defined as setting goals and deciding how to achieve them.

27. In February, when Paula, the manager of a landscaping company, is looking at the upcoming need for
more workers to handle the increased customers in spring and summer, she is involved with ____. 
A.  planning
B.  organizing
C.  managing
D.  leading
E.  controlling

Organizing is defined as arranging tasks, people, and other resources to accomplish the work.
Organizing includes determining the tasks to be done, by whom, and what the reporting hierarchy is to
be.

28. At times, customers have an unexpected need and require certain departments, such as production, to
change their schedule to meet the demands of the sales department. When Susan, the vice president of
marketing, is involved in resolving this conflict, this is an essential part of which management function? 
A.  delegating
B.  implementing
C.  leading
D.  monitoring
E.  staffing

Leading is defined as motivating, directing, and otherwise influencing people to work hard to achieve
the organization's goals. The various groups involved often have different needs and wants, so an
essential part of leadership is resolving conflicts.

29 The general manager of a furniture store recently gave a motivational PowerPoint presentation to his
employees on the value of being courteous to each customer. This is an example of ____. 
A.  leading
B.  delegating
C.  upkeep
D.  situational control
E.  planning

Leading is defined as motivating, directing, and otherwise influencing people to work hard to achieve
the organization's goals.

 
30. The district manager of a national fast-food restaurant watches the sales reports for each restaurant daily
to compare actual sales with projected sales goals, and then takes corrective action if needed. This
function is ____. 
A.  goal setting
B.  controlling
C.  organizing
D.  situational planning
E.  motivating

Controlling is defined as monitoring performance, comparing it with goals, and taking corrective action
as needed.

31. The vice president of marketing, while meeting with the district sales managers, mentioned that
management theorist Peter Drucker compared ____. 

A.  the present economy to that of the Great Depression

B.  present politicians to past leaders
C.  apples and oranges
D.  marketing concepts of this century with the past
E.  the workplace of the future to a symphony orchestra

The workplace of the future may resemble a symphony orchestra, famed management theorist Peter
Drucker said. Employees, especially so-called knowledge workers, can be compared to concert
musicians. Their managers can be seen as conductors. The conductor's role is not to play each
instrument but to lead them all through the most effective performance of a particular work.

32. Elizabeth is a chef and the kitchen manager in an upscale restaurant. She is very knowledgeable in both
the culinary and restaurant management fields. Because of these skills, Elizabeth can be considered a(n)
____ worker. 
 

A.  cognitive
B.  focused
C.  top-rated
D.  MBO
E.  knowledge

A knowledge worker is one who has a great deal of technical skill.

 
33. Managers are classified into the four levels of ____. 
 

A.  upper, regional, middle, lower

B.  upper, middle, floating, lower
C.  top, middle, first-line managers, team leaders
D.  top, middle, first-line, advisors
E.  upper, board of directors, middle, lower

Managers may be classified into four levels: top, middle, first-line, and team leaders.

34. Mark, vice president of human resources at Executive Corporation, is a(n) ____ level manager. 
 

A.  team leader

B.  first-line
C.  board
D.  middle
E.  upper

An organization's top managers tend to have titles such as "chief executive officer (CEO)," "chief
operating officer (COO)," "president," and "senior vice president."

35. Felix pays a lot of attention to the environment outside his company, staying alert for long-run
opportunities and problems and devising strategies for dealing with them. Felix is a(n) ____ level
manager. 
 

A.  team leader

B.  first-line
C.  board
D.  monitoring
E.  upper

Top managers make long-term decisions about the overall direction of the organization. They need to
pay a lot of attention to the environment outside the organization, being alert for long-run opportunities
and problems and devising strategies for dealing with them. Thus, executives at this level must be future
oriented, dealing with uncertain, highly competitive conditions.

 
36. Paula, a plant manager, received an e-mail from the CEO stating that the company will now be focusing
on customer service. The e-mail also stated that all plant managers need to implement this policy and
coordinate the activities related to this strategy for their lowest-level managers. Paula is a(n) ____ level
manager. 
 

A.  team leader

B.  first-line
C.  board
D.  middle
E.  upper

Middle managers implement the policies and plans of the top managers above them and supervise and
coordinate the activities of the first-line managers below them.

37. Donna manages the service desk and makes routine decisions related to customer refunds and
merchandise returns. Donna also oversees the daily tasks of the cashiers and front desk employees.
Donna is a(n) ____ manager. 
 

A.  team leader

B.  first-line
C.  board
D.  middle
E.  upper

Following the plans of middle and top managers, first-line managers make short-term operating
decisions, directing the daily tasks of nonmanagerial personnel who are all those people who work
directly at their jobs but don't oversee the work of others.

 
38. Betty reports to the front desk manager. Betty is responsible for directing the team activities of four
cashiers who are responsible for developing a plan to improve customer service. Betty does not have
authority over other team members, but she provides guidance, instruction, and direction to them. Betty
is a(n) ____. 
 

A.  lower-level manager

B.  team leader
C.  advisory manager
D.  director of the board
E.  top-level manager

Members of a team generally report to a first-line manager, who has the authority to hire and fire,
controls resources, and is responsible for the team's performance. But one of the members of the team
may be charged with being the team leader, a manager who is responsible for facilitating team activities
toward achieving key results. Team leaders may not have authority over other team members, but they
are expected to provide guidance, instruction, and direction to the others; to coordinate team efforts; and
to resolve conflicts.

39. Donna, vice president of finance, and Bob, vice president of human resources, are ____ managers. 
 

A.  lower-level
B.  team
C.  advisory
D.  board
E.  functional

A functional manager is responsible for just one organizational activity.

40. Tutors for Students (TFI) is an organization with the purpose of offering tutoring to older students and
not making a profit. TFI is an example of a ____ organization. 
 

A.  nonprofit
B.  mutual-benefit
C.  commonweal
D.  servant
E.  for-profit

Nonprofit organizations' purpose is to offer services to some clients, not to make a profit. Examples of
such organizations are hospitals, colleges, and social-welfare agencies (e.g., the Salvation Army, the
Red Cross).

 
41. The city fire department offers its services to any individual within its city limits, so even Paul, who is
driving through the city on vacation, received assistance with a car fire. The fire department is an
example of a ___ organization. 
 

A.  servant
B.  commonweal
C.  for-profit
D.  volunteer
E.  mutual benefit

One particular type of nonprofit organization is called the commonweal organization. Unlike nonprofit
service organizations, which offer services to some clients, commonweal organizations offer services to
all clients within their jurisdictions. Examples are the military services, the U.S. Postal Service, and your
local fire and police departments.

42. Josh, a college student, has become very interested in helping his community, so he is interested
volunteering in a neighborhood improvement organization. This type of organization is an example of
a(n) ______ organization. 
 

A.  mutual-benefit
B.  for-profit
C.  nonprofit
D.  advancement
E.  green

Mutual-benefit organizations are voluntary collections of members such as political parties, farm
cooperatives, labor unions, trade associations, and clubs whose purpose is to advance members'
interests.

43. The police chief is meeting with some citizens in his community, where he will discuss the police
department's positive service delivery. The success of his organization is measured by _____. 
 

A.  its increased involvement in the community

B.  how much money he saved last year
C.  its image in the public's eyes
D.  its profitability
E.  its effectiveness, such as decreased crime

In a nonprofit organization, although income and expenditures are very important concerns, the measure
of success is usually the effectiveness of the services delivered.

 
44. Management scholar Henry Mintzberg found that in their workday, managers ____. 
 

A.  tend to work long hours and rely less on verbal than on written communication
B.  have work that is characterized by brevity and routine
C.  have work that is characterized by fragmentation, brevity, and variety
D.  tend to work long hours at a slow pace
E.  tend to work shorter hours and rely more on written than on verbal communication

Managers tend to work long hours at an intense pace; their work is characterized by fragmentation,
brevity, and variety; and they rely more on verbal than on written communication. Only about a tenth of
the managerial activities observed by Mintzberg took more than an hour; about half were completed in
under 9 minutes. Phone calls averaged 6 minutes, informal meetings 10 minutes, and desk-work sessions
15 minutes.

45. According to management scholar Henry Mintzberg, managers play three roles: 
 

A.  interpersonal, analytical, professional

B.  professional, leader, informational
C.  interdependent, monitor, analytical
D.  interpersonal, informational, decisional
E.  interpersonal, analytical, monitor

From his observations and other research, Mintzberg concluded that managers play three broad types of
roles or "organized sets of behavior": interpersonal, informational, and decisional.

46. As a store manager, Liandra has to play the role of negotiator, such as purchasing products at a fair price
for her company. As she handles this responsibility, Liandra is playing the ____ role. 
 

A.  disseminator
B.  decisional
C.  leadership
D.  bargainer
E.  interpersonal

In their decisional roles, managers use information to make decisions to solve problems or take
advantage of opportunities. The four decision-making roles are entrepreneur, disturbance handler,
resource allocator, and negotiator.

 
47. Greg, the marketing manager, is constantly seeking information about his competition while looking
online or speaking to people; this is an example of the ___ role. 
 

A.  liaison
B.  decisional
C.  resource allocator
D.  disseminator
E.  monitor

As a monitor, you should be constantly alert for useful information, whether gathered from newspaper
stories about the competition or gathered from snippets of conversation with subordinates you meet in
the hallway.

48. Raylene, the CEO of a Fortune 500 company, met with business leaders from the local community.
Afterwards, she spent time informally answering their questions about the company as part of which
managerial role? 
 

A.  consumerism resource allocator

B.  leadership figurehead
C.  monitor
D.  entrepreneur

In your figurehead role, you may show visitors around your company. In general, you perform symbolic
tasks that represent your organization.

49. To maintain a competitive advantage, the top management of a national furniture store made the
decision to increase employee training, add rewards that motivate employees, and look at improving
procedures related to disciplining workers. These decisions are part of the ______ role. 
 

A.  figurehead
B.  leadership
C.  liaison
D.  spokesperson
E.  negotiator

In a role of leader, you are responsible for the actions of your subordinates, since their successes and
failures reflect on you. Your leadership is expressed in your decisions about training, motivating, and
disciplining people.