(Test Bank) Fundamentals Of Management Canadian Edition

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Fundamentals of Management, 9e (Robbins) Chapter 1 Managers and Management 1) Part of what defines an organization is its purpose. Answer: TRUE Explanation: The goals or purpose of an organization define the organization's reason for existing. Without a common purpose, a group of individuals does not qualify as an organization. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 2) All organizations have a structure that in some ways serves to define and limit the behavior of members of the organization. Answer: TRUE Explanation: The structure of an organization, whether formal or informal, defines how organization members interact. For example, a school's informal guidelines might determine how teachers fraternize. A school's formal guidelines might set up rules for interaction between students and teachers. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 3) In order to be considered a manager, an individual must direct or oversee the work of others. Answer: TRUE Explanation: Directing and overseeing work distinguishes managers from nonmanagerial employees. Managers direct and oversee work of others. Nonmanagerial employees have no supervisory responsibilities. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 4) A manager does not work directly on tasks for the organization. Answer: FALSE Explanation: Managers may work on tasks in addition to their supervisory duties. For example, a manager of a shop that designs clothing may also create designs on his or her own. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization5) Supervisors and team leaders may both be considered first-line managers. Answer: TRUE Explanation: First-line managers are managers who oversee workers directly and are involved in day-to-day operations. For example, a team manager in an auto assembly plant might oversee and help solve everyday problems that arise on the assembly line. Higher-level managers typically would not spend time helping to solve assembly line problems directly. Diff: 1 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 6) Effectiveness refers to the relationship between inputs and outputs. Answer: FALSE Explanation: Efficiency is concerned with maximizing the output-to-input ratio. Effectiveness, on the other hand, refers not to how well resources are used but to which resources to use, and whether or not those resources help the organization attain its goals. Diff: 2 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 7) A goal of efficiency is to minimize output costs while maximizing input costs. Answer: FALSE Explanation: The goal of efficiency is the opposite—to maximize outputs while minimizing inputs. An efficient operation uses the fewest resources to generate the greatest amount of product. Diff: 2 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 8) Effectiveness refers to the attainment of the organization's goals. Answer: TRUE Explanation: Effectiveness is concerned with "doing the right things"—choosing the tasks that will help the organization achieve its goals. Efficiency, on the other hand, refers to "doing things right," that is, once tasks are chosen they are done with a minimum of waste. Diff: 2 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization9) Managers who are effective at meeting organizational goals always act efficiently. Answer: FALSE Explanation: A manager may be effective but not efficient. For example, a manager may excel at achieving goals but waste a lot of money, energy, and resources in achieving them. Diff: 3 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 10) The four contemporary management processes are planning, organizing, leading, and commanding. Answer: FALSE Explanation: Leading is a term that replaced commanding and coordinating. So commanding is considered to be part of leading and not distinct from it. Diff: 1 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 31) Which of the following is the most accurate statement regarding managers in today's world? A) There is a greater need for customer focus than ever before. B) Managers are found almost exclusively in large corporations that have more than 500 employees. C) Managers are found almost exclusively in for-profit organizations. D) More than half of today's managers are women. Answer: A Explanation: A) Organizations need customers. Without them, most organizations would cease to exist. Yet, focusing on the customer has long been thought to be the responsibility of marketing people. "Let the marketers worry about the customers" is how many managers felt. We're discovering, however, that employee attitudes and behaviors play a big role in customer satisfaction. Diff: 2 AACSB: Multicultural and diversity understanding Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization32) An organization is ________. A) the physical location where people work B) any collection of people who perform similar tasks C) a deliberate arrangement of people to accomplish some specific purpose D) a group of individuals focused on profit-making for their shareholders Answer: C Explanation: C) By definition, an organization is a deliberate arrangement of people who have a common purpose or goal. An organization may or may not exist in a discrete physical location. For example, many of today's political advocacy organizations exist largely as online entities without a primary physical location. Though some people in an organization may perform similar tasks, many do not. For example, doctors and administrators may both work for the same hospital organization but perform very different tasks. Finally, focus on profit does not determine an organization. Many organizations, such as a bird-watching club, do not include profit as a goal. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 33) All organizations have ________ that define(s) the organization's purpose and reason for existing. A) limits B) rules C) structure D) goals Answer: D Explanation: D) An organization's goals define its purpose and reason for existing. For example, the goals of a bank might be to make money, while the goals of a church choir might to be to create beautiful music. Rules can help an organization achieve its goals, but rules do not explicitly define those goals. Organizational structure defines and limits how people within an organization interact, but structure on its own is not something that serves to define an organization's purpose. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization34) One of the common characteristics of all organizations is ________ that define(s) rules, regulations, and values of the organization. A) a set of written bylaws B) an explicit goal C) a systematic structure D) a stated purpose Answer: C Explanation: C) An organization's structure identifies organizational values that include behavioral standards, customs, ethical mores, and conventions that delineate relationships between organization members. The structure of an organization need not be formally written as bylaws. The goals and purpose of an organization can influence its values, but neither of these items can be said to define an organization's values. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 35) A fraternity is an example of an organization because it is comprised of people who ________. A) share the same values, traditions, and customs B) share the same goals and values C) share goals and function within a common structure D) function under the same set of rules and regulations Answer: C Explanation: C) Members of an organization must not only share the same goals, they must all work within a common structure to attain those goals. To grasp this distinction, compare two baseball players on different teams: both may share the same goal of winning the World Series, but they belong to different organizations. Similarly, simply sharing values or rules is not sufficient to identify or differentiate an organization. To make up an organization, people need to belong to a shared structure or institution and have common goals. Diff: 2 AACSB: Analytic thinking Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization36) Which of the following is a key difference between managerial and nonmanagerial employees? A) Managerial employees receive higher pay compensation. B) Nonmanagerial employees have less formal education. C) Nonmanagerial employees do not oversee the work of others. D) Managerial employees work longer hours. Answer: C Explanation: C) The distinction between managerial and nonmanagerial employees resides solely in overseeing work. Managers have the responsibility of supervising and directing work of others. Nonmanagerial employees do not have this responsibility. Managers may or may not receive better compensation, have more education, or work longer hours than nonmanagers—so none of these criteria can serve to distinguish between the two. Diff: 1 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 37) The primary job of a manager is to ________. A) make decisions that help an organization grow B) tackle tasks that are too difficult for nonmanagerial employees C) coordinate between organization leaders and ordinary employees D) direct and oversee the work of others Answer: D Explanation: D) Though managers may make important decisions, tackle difficult tasks, or coordinate between leaders and lower-level employees, a manager's primary job is to supervise the work of others. The supervisory role is what distinguishes managers from nonmanagers. Diff: 1 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 38) The work of a manager ________. A) is strictly limited to overseeing and monitoring the work of others B) may involve performing tasks that are not related to overseeing others C) involves only high-level tasks that require a sophisticated skill set D) does not involve interaction with nonmanagerial employees Answer: B Explanation: B) The primary job of a manager is to oversee work of others. However, this does not preclude a manager from performing tasks on his or her own that do not involve supervision of others. An example of a manager not being limited to supervising would be an art director at a book company who supervises work of others but also creates artworks on her own. Tasks performed by managers are not necessarily high level and may involve interaction with nonmanagerial workers, so neither of these choices is correct. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization39) Supervisor is another name for which of the following? A) team leader B) middle manager C) first-line manager D) top manager Answer: C Explanation: C) An organization's management hierarchy typically follows this progression: first-line manager, middle manager or team leader, and top manager. This sequence usually reflects the degree to which managers are involved in planning and making higher-order decisions. The lowest position in the sequence, the first-line manager, is generally more involved in supervising others than making higher-order decisions, so this individual is often termed a supervisor. Managers higher in the chain of command do less supervising than first-line managers so they are less likely to be called a supervisor. Diff: 1 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 40) Which of the following types of managers is responsible for making organization- wide decisions and establishing the plans and goals that affect the entire organization? A) team leader B) top manager C) department head D) project leader Answer: B Explanation: B) In a typical management hierarchy, the individuals responsible for making higher-order decisions that involve planning, goals, policy, and philosophy are the top managers. Team leaders are generally first-line managers at the bottom of the hierarchy who are least involved with higher-order goals. Department heads and project leaders are titles for middle managers who are more involved with the implementation rather than the making of goals and policy. Diff: 1 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization41) Which is an important job responsibility for a middle manager? A) defining the organization's long-term goals B) translating goals defined by top managers into action C) helping top managers define goals D) performing tasks that are not related to long-term goals Answer: B Explanation: B) In an organization, top management typically defines long-term goals, then enlists middle managers to find ways to achieve those goals. Thus, middle managers are not involved in identifying long-term goals in any way. The job of a middle manager is very involved with long-term goals, it just doesn't involve defining those goals. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 42) Which of the following identifies a manager who does NOT typically supervise other managers? A) unit chief B) shift manager C) vice president D) division manager Answer: B Explanation: B) All but first-line managers are responsible at least in part for overseeing the work of other managers. The shift manager is the only first-line manager in this group. A unit chief and division manager are both titles for middle managers who oversee other managers. A vice president is a top management position that is usually heavily involved with the management of other managers. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization43) Of the following, which is the lowest level of management? A) a nonmanagerial employee B) an individual involved in defining the organization's philosophy C) a vice president D) a middle manager Answer: D Explanation: D) The middle manager represents the lowest managerial position among the choices given here, but it is not the lowest position in the managerial hierarchy. Individuals who rank above a middle manager include a vice president and an individual who defines organizational philosophy, both of whom would qualify as top managers. Finally, a nonmanagerial employee is lowest in the hierarchy among these choices, but this individual is not a part of management. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 44) All levels of management between the supervisory level and the top level of the organization are termed ________. A) middle managers B) first-line managers C) supervisors D) team leaders Answer: A Explanation: A) Middle management is defined as those individuals who are between top management and the team leaders, supervisors, and other first-line managers who make up the supervisory level of management. Any manager who is (1) not a part of top management and (2) not primarily a supervisor of nonmanagerial employees is classified as a middle manager. Diff: 2 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization45) Which of the following levels of management is associated with positions such as executive vice president, chief operating officer, chief executive officer, and chairperson of the board? A) team leaders B) middle managers C) first-line managers D) top managers Answer: D Explanation: D) All of the titles listed above—executive vice president, chief operating officer, chief executive officer, and chairperson of the board—are executive positions that are typically part of an organization's top management. Team leaders are types of first-line managers and are not part of top management. Any positions that include executive as part of the title would eliminate middle managers as a choice. Diff: 1 Objective: 1.1 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 46) Another term for efficiency is ________. A) doing the right things B) doing things right C) making sure things get done D) doing things at the right time Answer: B Explanation: B) Efficiency is often termed doing things right because the phrase denotes the manner in which tasks are carried out. The "right" way or efficient way correlates with a minimum of wasted time, money, energy, and resources. "Doing the right things," on the other hand, refers to effectiveness, not efficiency. Making sure that things get done and doing things at the right time are both often part of an efficient undertaking, but neither effort could be said to define efficiency. Diff: 2 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization47) Which of the following might be an example of increased efficiency in manufacturing? A) cutting the amount of labor required to make the product B) cutting the price of the product C) increasing sales of the product D) increasing advertising for the product Answer: A Explanation: A) Efficiency must involve reducing the input-to-output ratio in some way. Cutting the amount of labor reduces the amount of input and so marks an increase in efficiency. Cutting the price does not affect the amount of resources and labor that go into the product, nor does it improve the product itself, so it is not an efficiency measure. Increasing sales and advertising similarly do not change the input- output ratio so they do not increase efficiency. Diff: 3 AACSB: Analytic thinking Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 48) Another term for effectiveness is ________. A) doing the right things B) doing things right C) doing things intelligently D) doing things when necessary Answer: A Explanation: A) Effectiveness is said to be "doing the right things" because effectiveness is concerned with obtaining results and reaching goals. Doing things "in the right way" results in efficiency rather than effectiveness. Note that an enterprise can be effective—i.e., it can attain goals—without being efficient in such areas as keeping costs and resources down. Doing things intelligently is clearly part of an effective effort without being critical to it. The same can be said of doing things when necessary—it is not a critical part of an effective effort. Diff: 2 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization49) Effectiveness is synonymous with ________. A) cost minimization B) smart management C) goal attainment D) efficiency Answer: C Explanation: C) Effectiveness is concerned with ends as opposed to means. Being effective means "getting the job done" (attaining goals), while being efficient is concerned with "how the job got done" and such things as cost minimization. While effective operations usually feature smart management, the two are not necessarily synonymous. Diff: 2 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 50) Efficiency refers to ________. A) the relationship between inputs and outputs B) the additive relationship between inputs and outputs C) the inverse relationship between inputs and outputs D) decreasing inputs only Answer: A Explanation: A) Mathematically, efficiency is measured as a ratio of inputs to outputs. For example, in physics the ratio of input energy to output energy defines a machine's efficiency. The same principles apply to management. Efficiency is measured as the ratio of input energy, or other resources such as costs or labor, to the amount of product or output created. The input-output ratio is neither additive nor inverse but rather directly proportional in some way. Finally, though decreasing inputs can increase efficiency, it is not the only way to increase efficiency. Diff: 2 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 51) Good management strives for ________. A) low efficiency and high effectiveness B) high efficiency and low effectiveness C) high efficiency and high effectiveness D) moderate efficiency and moderate effectiveness Answer: C Explanation: C) High efficiency and high effectiveness are both things that managers seek to obtain. High efficiency is associated with minimal waste and a maximum of production. High effectiveness is associated with success in achieving goals. Low or moderate measures of efficiency or effectiveness are clearly inferior to a high amount of each quality. Diff: 2 Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization52) A candy manufacturer would increase both efficiency and effectiveness by making ________. A) better candy at the same cost B) better candy at a lower cost C) the same candy at a lower cost D) the same candy at the same cost Answer: B Explanation: B) Increasing efficiency involves making the product at lower cost. Increasing effectiveness means making a better product. So increasing efficiency and effectiveness would entail making a better product at a lower cost. Any other combination of the two variables—not improving the cost or the quality of the candy —would not be an improvement in both efficiency and effectiveness. Diff: 3 AACSB: Analytic thinking Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 53) A candy manufacturer that made candy at a lower cost without improving the quality of the candy could be said to ________. A) increase effectiveness without increasing efficiency B) increase efficiency without increasing effectiveness C) increase both effectiveness and efficiency D) decrease both effectiveness and efficiency Answer: B Explanation: B) Lowering cost is a measure of increased efficiency. Making better candy is a measure of increased effectiveness. So lowering cost for unimproved candy shows an increase in efficiency but not effectiveness. Diff: 3 AACSB: Analytic thinking Objective: 1.2 Learning Outcome: Describe the roles of managers and the skills they need to succeed within an organization 54) The "father" of scientific management was ________. A) Henri Fayol B) Robert L. Katz C) Henry Mintzberg D) Frederick Winslow Taylor Answer: D Explanation: D) Fayol worked about the same time period as Taylor and was also fairly "scientific" in his approach. However, Taylor was the person who stressed being "scientific" and coined the term scientific management in his 1911 book. Mintzberg and Katz also contributed to ideas about scientific management, but both of these thinkers came later. Diff: 2 Objective: 1.2 Learning Outcome: Summarize the major historical and current approaches to management55) Taylor began to develop his theory of ________ after a result of viewing workers in steel companies. A) the functions of management B) ethics-based management C) management skills D) scientific management Answer: D Explanation: D) Taylor's scientific management theory posited that efficiency in organizations could be improved by studying organizations objectively and systematically. The functions of management were developed by Fayol. Management skills were identified by Katz. Ethics-based management is not a known theory of management. Diff: 2 AACSB: Use of information technology Objective: 1.2 Learning Outcome: Summarize the major historical and current approaches to management 56) A major contribution that Taylor made to the study of management was ________. A) to measure efficiency on a 4-star scale B) to identify the one best way to get a job done C) to identify the three best ways to get a job done D) to measure inefficiency on a 4-star scale Answer: B Explanation: B) Taylor measured efficiency and inefficiency, but he did not rank them on a star scale. What Taylor did do was collect data to identify the "one best way" to do a job; that is, the most efficient and effective way to complete a task. Taylor focused on only a single best way. Diff: 2 AACSB: Use of information technology Objective: 1.2 Learning Outcome: Summarize the major historical and current approaches to management57) Which of the following did Taylor NOT find "appalling" in his study of workers in steel companies? A) Workers "took it easy" on the job. B) Workers employed different techniques for the same job. C) Workers would only attempt to perform a job if they were shown to have aptitude for it. D) Worker output was only about one-third of what was possible. Answer: C Explanation: C) Taylor indeed discovered that workers did not work hard on the job, did not have standardized methods and techniques for completing a task, and only accomplished a fraction of their theoretical work potential. All of the above dismayed Taylor greatly, convincing him that the situation could be greatly improved with the application of standardized work rules and task methodology. The one thing in the list that Taylor did not discover was workers who refused to work at jobs they did not have aptitude for. In fact, he found that the reverse situation existed—workers performed jobs that they had no aptitude for—this constituted yet another practice that was appalling to Taylor. Diff: 3 AACSB: Use of information technology Objective: 1.2 Learning Outcome: Summarize the major historical and current approaches to management Fundamentals of Management, 9e (Robbins) Chapter 2 The Management Environment 1) A common myth is that organizations can be too big to fail. Answer: TRUE Explanation: Many people believe that large companies that dominate their industries don't require outstanding management. They are, in fact, often described as "too big to fail." Diff: 1 Objective: 2.1 Learning Outcome: Describe the components of the management environment 2) Organizational consistency is one of the foundations of long-term success. Answer: FALSE Explanation: The one constant that all organizations face, regardless of their size, is the need to change and adapt to today's business environment. Diff: 2 Objective: 2.1 Learning Outcome: Describe the components of the management environment 3) Organizational traditions should not be followed if they don't fit with the current demands of customers and shareholders. Answer: TRUE Explanation: Organizations that are too bound by tradition and don't (or refuse to) change are less and less likely to survive the turbulence in today's world. Diff: 2 Objective: 2.1