Table of Contents

Review Questions for Ch01 2

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1 Review Questions for Chapter 1 2
Self Assessment fo Chapter 1 6
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 1
Chapter 1: Management

Review Questions for Chapter 1

1. Explain the difference between efficiency and effectiveness.

Efficiency is getting work done with a minimum of effort, expense, or waste. By itself, efficiency is
not enough to ensure success. Managers must also strive for effectiveness, which is accomplishing
tasks that help fulfill organizational objectives, such as customer service and satisfaction.

2. What are the four management functions?

Henri Fayol’s classic management functions are known today as planning, organizing, leading, and
controlling. Planning involves determining organizational goals and a means for achieving them.
Organizing is deciding where decisions will be made, who will do what jobs and tasks, and who will
work for whom. Leading is inspiring and motivating workers to work hard to achieve organizational
goals. Controlling is monitoring progress toward goal achievement and taking corrective action
when needed. Studies show that people performing the management functions well are more
successful, gaining promotions for themselves and profits for their companies.

3. What are the main differences in the responsibilities of top managers and middle managers?

Top managers are responsible for the overall direction of the organization. They are responsible for
the overall direction of the company. This includes creating a context for change, employee buy-in, a
positive organizational culture, and monitoring their business environments. Examples of top
managers are the chief executive officer (CEO), the chief operating officer (COO), and the chief
information officer (CIO).

Middle managers are responsible for setting objectives consistent with top management’s goals and
for planning and implementing subunit strategies for achieving those objectives. They lead divisions
and departments in the achievement of these goals. Examples of middle managers include plant
managers, divisional managers, and regional managers.

4. What distinguishes a first-line manager from a team leader?

First-line managers train and supervise the performance of nonmanagerial employees who are
directly responsible for producing the company’s products or services. These managers manage the
work of entry-level workers. They must constantly motivate and manage the activities of many
different people. Examples of first-line managers are office managers, shift supervisors, and
department managers.

Team leaders are a relatively new type of management. Team leaders facilitate team activities
toward accomplishing a goal. They schedule the team’s work, help solve problems, and represent the
team’s efforts to other management. An example would be the leader of a new product development
team that includes employees from different departments such as marketing, research and
development, and production.
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Chapter 1: Management

5. Describe the three principal managerial roles identified by Henry Mintzberg and give examples of
each.

Managers play interpersonal roles, informational roles, and decisional roles.

Interpersonal roles: Managers must be able to communicate with people across the organization.
They must be:
• Figureheads who perform ceremonial duties;
• Leaders who motivate and encourage workers to accomplish organizational objectives; and
• Liaisons who deal with people outside their units.

Informational roles: Managers spend considerable time obtaining and sharing information with the
people they manage. They must be:
• Monitors who scan their environment for information, actively contact others for information,
and receive a great deal of unsolicited information;
• Disseminators who share the information they have collected with their subordinates and
others in the company; and
• Spokespeople who share information with people outside their departments and companies.

Decisional roles: Managers must be able to make good decisions in a variety of areas. They must be:
• Entrepreneurs who adapt themselves, their subordinates, and their units to change;
• Disturbance handlers who respond to problems so severe that they demand immediate
attention and action;
• Resource allocators who decide who will get what resources and in what amounts; and
• Negotiators who negotiate schedules, projects, goals, outcomes, resources, and employee
raises.

6. How do companies determine that employees would be good managers?

Companies look for individuals who have technical skills, human skills, conceptual skills, and the
motivation to manage.
• Technical skills are the specialized procedures, techniques, and knowledge required to get the
job done. For example, a nurse supervisor must be able to insert an IV or operate a crash cart if
a patient goes into cardiac arrest.
• Human skills includes the ability to work well with others. For example, a manager must
understand what motivates each of his or her subordinates to encourage them to do their best.
• Conceptual skills are the ability to see the organization as a whole, to understand how the
different parts of the company affect each other, and to recognize how the company fits into or
is affected by elements its external environment, such as the local community, social and
economic forces, customers, and competition. For example, a manager must understand how a
government regulation will impact the business in the future or how the company will grow in
the long-run.
• Motivation to manage is an assessment of how motivated employees are to interact with
superiors, participate in competitive situations, behave assertively toward others, tell others
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Chapter 1: Management

what to do, reward good behavior and punish poor behavior, perform actions that are highly
visible to others, and handle and organize administrative tasks.

7. How important is competence in the core managerial skills for the different types of managers?

Technical skills are most important for team leaders and first-line managers because they supervise
the workers who produce products or serve customers. Team leaders and first-line managers need
technical knowledge and skills to train new employees and help employees solve problems. An
example would be an engineering manager who manages a department of engineers who design cars.

Human skills are equally important to all management levels. However, upper-level managers may
actually spend more time dealing with people. On average, first-line managers spend 57 percent of
their time with people, middle managers spend 63 percent of their time with people, and top
managers spend 78 percent of their time with people. An example is a vice president who must
negotiate with other vice presidents on scarce resources.

Conceptual skills are especially important at the upper levels of management. These leaders must be
able to create a vision of the company’s future, a task that requires great intelligence and conceptual
ability. However, a lower-level manager with great conceptual skills may be viewed as having
potential to rise in the organization. An example is a CEO who must chart the long-term course of
the company.

8. List the mistakes that managers commonly make. What distinguishes an arriver from a derailer?

The top ten mistakes managers make are:

• Insensitive to others: abrasive, intimidating, bullying style
• Cold, aloof, arrogant
• Betrayal of trust
• Overly ambitious: thinking of next job, playing politics
• Specific performance problems with the business
• Overmanaging: unable to delegate or build a team
• Unable to staff effectively
• Unable to think strategically
• Unable to adapt to boss with different style
• Overdependent on advocate or mentor

Researchers found that there were only a few differences between arrivers and derailers. For the most
part, both groups were talented and both groups had weaknesses. But what distinguished derailers
from arrivers was that derailers possessed two or more fatal flaws with respect to the way that they
managed people. Although arrivers were by no means perfect, they usually had no more than one
fatal flaw or had found ways to minimize the effects of their flaws on the people with whom they
worked.

9. Describe how managers typically change in their first year on the job.
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Chapter 1: Management

At first, most new managers believed that their job was to exercise formal authority and to manage
tasks—basically being the boss and seeing their jobs as managing tasks instead of people. After 6
months, most of them conclude that their initial expectations about management were wrong and
discover the fast pace and heavy workload involved. Also, they see their role as problem solver and
troubleshooter for their subordinates. After a year on the job, once they have become more seasoned,
they see the importance of communication, listening, positive reinforcement, and begin delegating.
They also see their jobs as developing people, not managing tasks.

As with any change, new managers must grow into their jobs. The best way to become a good
manager is to start managing.

10. How does the way a company is managed affect its competitive advantage?

An organization’s most important resource is its people, and how this resource is utilized will
determine the success or failure of the organization. By understanding and using good management
practices, organizations can create significant competitive advantages in their own industries. Some
of these practices include employment security, selective hiring, self-managed teams and
decentralization, high pay contingent on company performance, extensive training, reduced status
distinctions (between managers and employees), and extensive sharing of financial information.
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Self-Assessment
Chapter 1
Management

Is Management for You?

As you learned in Section 7 of this chapter, many managers begin their careers in
management with specific ideas about what it means to be the boss. Although you may
want to be a manager because of excitement, status, power, or rewards, knowing how to
manage is not automatic; it requires specific skills and competencies, as well as a desire
to manage. This assessment is meant to establish your baseline ability in the skills
covered in the chapter. It will not tell you whether you should or should not be a
manager, or whether you have “what it takes” to be a manager. It will, however,
give you feedback on general skills that influence your overall managerial style.
Be candid as you complete the assessment by circling the appropriate responses.
ML = Most like me
SL = Somewhat like me
NS = Not sure
SU = Somewhat unlike me
MU = Most unlike me

1. I can get others to do what I want them to do.

ML SL NS SU MU

2. I frequently evaluate my job performance.

ML SL NS SU MU

3. I prefer not to get involved in office politics.

ML SL NS SU MU

4. I like the freedom that open-ended goals provide me.

ML SL NS SU MU

5. I work best when things are orderly and calm.

ML SL NS SU MU

6. I enjoy making oral presentations to groups of people.

ML SL NS SU MU

7. I am confident in my abilities to accomplish difficult tasks.

ML SL NS SU MU

8. I do not like to write.

ML SL NS SU MU
9. I like solving difficult puzzles.
ML SL NS SU MU

10. I am an organized person.

ML SL NS SU MU

11. I have difficulty telling others they made a mistake.

ML SL NS SU MU

12. I like to work set hours each day.

ML SL NS SU MU

13. I view paperwork as a trivial task.

ML SL NS SU MU

14. I like to help others learn new things.

ML SL NS SU MU

15. I prefer to work alone.

ML SL NS SU MU

16. I believe it is who you know, not what you know, that counts.
ML SL NS SU MU

17. I enjoy doing several things at once.

ML SL NS SU MU

18. I am good at managing money.

ML SL NS SU MU

19. I would rather back down from an argument than let it get out of hand.
ML SL NS SU MU

20. I am computer literate.

ML SL NS SU MU

Scoring
Start by reversing your scores for items 5, 8, 11, 15, and 16. For example, if you used
ML, change it to MU, and vice versa; if you used SL, change it to SU, and vice versa.
Now assign each answer a point value.

Number of ML answers ____ times 5 points each = ____

Number of SL answers ____ times 4 points each = ____
Number of NS answers ____ times 3 points each = ____
Number of SU answers ____ times 2 points each = ____
 Number of MU answers ____ times 1 point each = ____
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TOTAL = ____

From P. Hunsaker, Management; A Skills Approach 2nd ed., p 24–25. Copyright ©

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2005. Used by permission Pearson Education, Inc., Upper Saddle River, NJ.

Interpreting the Score

Here is what your score means.
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Scores range from 20 to 100. Higher scores indicate a better match between your current
behaviors and tendencies and those needed for a career in management. If your score is
low, it does not necessarily mean that you will have an unsuccessful management career.
Examine your results more closely. Which items did you mark as most unlike you? Now
think about how those items relate to the management functions and roles in the chapter.
In order to be effective in areas you considered unlike yourself, you will most likely need
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to develop compensatory skills or behaviors to overcome those deficiencies. For
example, one of the functions of management is organizing, so if you marked “I am an
organized person” as “most unlike me,” you will definitely need to begin developing your
organizational skills.
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