Business in Action 8th Edition Bovee Test Bank

Business in Action 8th Edition Bovee
Test Bank
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Business in Action, 8e (Bovee)
Chapter 7 Management Roles, Functions, and Skills
1) Managerial roles are grouped into three main categories: interpersonal, decisional, and
________.
A) directive
B) instructional
C) operational
D) informational
E) differential
Answer: D
Explanation: All the managerial roles that leaders must play can be grouped into three main
categories: interpersonal, informational, and decisional.
Difficulty: 1: Easy
AACSB: Application of knowledge
LO: 7.1: Explain the importance of management, and identify the three vital management roles.
2) Providing leadership to employees is an example of a(n) ________ role of management.

A) interpersonal
B) communicative
C) instructional
D) decisional
E) informational
Answer: A
Explanation: The interpersonal roles that a manager must play include the following: Providing
leadership to employees, building relationships, and acting as a liaison between groups and
individuals both inside and outside the company.
Difficulty: 2: Moderate
3) A top executive reads summaries of vital performance variables in the organization using the
executive dashboard. The executive is performing the ________ role in this case.
A) interpersonal
B) instructional
C) directional
D) decisional
E) informational
Answer: E
Explanation: An executive dashboard is a tool used to summarize information. The executive is
performing an informational role in this case.
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4) A(n) ________ is a tool that provides quick-read summaries of vital performance variables.
A) executive dashboard
B) business plan
C) benchmark
D) budget plan
E) managerial pyramid
Answer: A
Explanation: An executive dashboard is a tool that provides quick-read summaries of vital
performance variables.
5) Choosing a candidate from several job applicants is an example of the ________ role of
managers.
A) interpersonal
B) instructional
C) collaborative
D) decisional
E) informational
Answer: D
Explanation: Managers have many decisional roles. Such roles include choosing which of
several job candidates to hire or setting the prices of new products.
6) Which of the following refers to the interrelated tasks that lead an organization in pursuit of its
goals?
A) leadership
B) planning
C) mission
D) vision
E) management
Answer: E
Explanation: Management is the interrelated tasks of planning, organizing, leading, and
controlling in pursuit of organizational goals.
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7) What is one of the key roles of management?
A) Creating an environment where employees can excel in their work.
B) Overseeing the buying and selling of products or services.
C) Conducting the daily "hands-on" work of the organization.
D) Tracking and following up on the behaviors of employees.
E) Improving the standards of living for stakeholders of the organization.
Answer: A
Explanation: Although managers don't usually do the hands-on work in an organization, they
create the environment and provide the resources that give employees opportunities to excel in
their work.
Difficulty: 3: Challenging
AACSB: Analytical thinking
8) Providing leadership and building relationships is part of the ________ role of management.
A) effectiveness
B) interpersonal
C) economic
D) informational
E) decisional
Answer: B
Explanation: Management is largely a question of getting work accomplished through the efforts
of other people, so a manager must play a number of interpersonal roles, including providing
leadership to employees, building relationships, and acting as a liaison between groups and
individuals both inside and outside the company.
9) Which of the following is changing the nature of the informational role of management within
the organization?
A) dashboards
B) email
C) social media
D) increased global competition
E) organizational skills
Answer: C
Explanation: The increasing use of social media for both internal and external communication is
changing the nature of the manager's informational role in many companies. With social media, a
more conversational model is emerging, in which more people can participate and
communication is more immediate and less formal.
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10) Pushing the decision making function as far down the organizational pyramid allows
managers to work on ________.
A) technological improvements
B) social media responses
C) financial security
D) strategic plans
E) stakeholder concerns
Answer: D
Explanation: One of the most significant changes occurring in business management in recent
years is the effort to push decision making as far down the organizational pyramid as possible,
giving whichever employees face a particular situation the authority to make decisions about it.
This approach not only accelerates and improves work flow and customer service but also frees
up higher-level managers to work on more strategic matters.
11) Management is the process of planning, organizing, leading, and controlling to meet
organizational goals.
Answer: TRUE
Explanation: Management is the process of planning, organizing, leading, and controlling to
meet organizational goals. These tasks are interrelated.
Difficulty: 1: Easy
12) High-level managers rely heavily on subordinates to collect, analyze, and summarize
information.
Answer: TRUE
Explanation: High-level managers rely heavily on subordinates to collect, analyze, and
summarize information.
Difficulty: 1: Easy
13) The executive dashboard is a tool that provides quick-read summaries of vital performance
variables.
Answer: TRUE
Explanation: The executive dashboard, just like the dashboard in a car, provides quick-read
summaries of vital performance variables.
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14) Setting the prices of new products is a fairly routine decision that managers make.
Answer: TRUE
Explanation: Setting the prices of new products is a fairly routine decision that managers make.
15) Selecting an individual for employment from a pool of job applicants is an example of an
interpersonal role of management.
Answer: FALSE
Explanation: Managers make many decisions as part of their work. Choosing which of several
job candidates to hire is an example of a decisional role of managers.
16) Cite an example of a person who holds a managerial position and categorize the various
activities that he or she performs into informational roles, decisional roles, and interpersonal
roles.
Answer: Students may consider a manager who is familiar to them, such as the dean of their
school. Students may list the various tasks that he or she performs and categorize them into
different types of roles. Student answers will vary due to the nature of this question.
17) Explain the decisional roles of managers.

Answer: Managers up and down the organizational ladder face an endless stream of decisions.
Many of these decisions are routine, such as choosing which of several job candidates to hire or
setting the prices of new products. Other decisions, however, might occur only once or twice in a
manager's career, such as responding to a product-tampering crisis or the threat of a hostile
takeover. Some decisions are made after extensive information gathering and analysis; other
decisions must be made on the spot, with little but judgment and intuition to guide the manager's
choice.
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18) Developing strategies, establishing goals and objectives for the organization, and translating
those strategies and goals into action plans is part of the ________ function of management.
A) leading
B) organizing
C) intermediating
D) motivating
E) planning
Answer: E
Explanation: Managers engage in planning when they develop strategies, establish goals and
objectives for the organization, and translate those strategies and goals into action plans.
LO: 7.2: Describe the planning function, and outline the strategic planning process.
19) ________ plans outline the firm's long-range (often two to five years) organizational goals
and set a course of action the firm will pursue to reach its goals.
A) Tactical
B) Operational
C) Strategic
D) Short-term
E) Contingency
Answer: C
Explanation: Strategic plans outline the firm's long-range (often two to five years)
organizational goals and set a course of action the firm will pursue to reach its goals. The
strategic planning process consists of six interrelated steps.
20) A(n) ________ is a brief declaration of what the organization aims to accomplish for
customers, investors, and other stakeholders.
A) operational plan
B) mission statement
C) SWOT statement
D) tactical plan
E) values statement
Answer: B
Explanation: A mission statement is a brief statement of why an organization exists. In other
words, it describes what the organization aims to accomplish for customers, investors, and other
stakeholders.
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21) A(n) ________ is a brief and inspirational expression of what a company aspires to be.
A) tactical plan
B) values statement
C) operational plan
D) vision statement
E) summary of objectives
Answer: D
Explanation: A vision statement is a brief and inspirational expression of what a company
aspires to be.
22) "Do what's right, respect others, care for customers, and perform with excellence." This is
likely to be an organization's ________ statement.
A) vision
B) operational
C) tactical
D) values
E) mission
Answer: D
Explanation: A values statement identifies the principles that guide the company's decisions and
behaviors and establish expectations for everyone in the organization. The given statement
describes a company's principles.
23) Which of the following is an example of a strength that companies possess?

A) prospective merger candidates
B) lack of regulations
C) respected brand
D) narrow customer base
E) increasing demand for products
Answer: C
Explanation: Strengths are positive internal factors that contribute to a company's success.
Having a respected brand is such a strength.
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24) A(n) ________ is a specific, short-range target or aim.
A) mission
B) tactic
C) strategy
D) objective
E) vision
Answer: D
Explanation: An objective is a specific, short-range target designed to help organizations reach
their goals.
25) In order to be effective, a business goal should be ________.

A) broadly defined
B) measurable
C) unlimited in duration
D) loosely defined
E) substantially high
Answer: B
Explanation: Business people should make their goals and objectives "SMART," as in specific,
measurable, attainable, relevant, and time limited.
26) The overall strategic plan of an organization might be supported by plans from functional
areas, such as research and development, manufacturing, and marketing. The plans from these
functional areas are called ________ plans.
A) appraisal
B) strategic
C) contingency
D) tactical
E) corporate
Answer: D
Explanation: The overall strategic plan of an organization might be supported at the next level
down by a research and development plan, a manufacturing plan, and a marketing plan,
describing how each functional area will help the company reach its strategic goals and
objectives. Such plans are called tactical plans.
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27) Before establishing long-term goals, a company should understand its ________ relative to
opportunities and threats.
A) long-term strategies
B) potential for profit
C) strategic plan
D) short-term strategies
E) strengths and weaknesses
Answer: E
Explanation: This analysis is commonly referred to as SWOT (pronounced "swat"), which
stands for strengths, weaknesses, opportunities, and threats.
28) What are positive internal factors that contribute to a company's success?
A) strengths
B) vision
C) opportunities
D) skills
E) unique traits
Answer: A
Explanation: Strengths are positive internal factors that contribute to a company's success,
which can be anything from a team of expert employees to financial resources to unique
technologies.
29) What is the term used to describe the possibility of generating new revenue through positive
situations?
A) strengths
B) abilities
C) opportunities
D) skills
E) unique traits
Answer: C
Explanation: Opportunities are positive situations that represent the possibility of generating
new revenue. Shrewd managers and entrepreneurs recognize opportunities before others do and
then promptly act on their ideas.
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30) Predicting when events will occur and their impact on the organization should be done
through ________.
A) goal setting
B) action plans
C) tactical plans
D) forecasting
E) objective setting
Answer: D
Explanation: Forecasting is crucial to every company's success because it influences the
decisions managers make regarding virtually every business activity, and misreading the future
can damage or even destroy a company.
31) Which of the following are based on intuitive judgments?

A) quantitative forecasts
B) executive dashboards
C) SWOT analysis
D) strategic planning
E) qualitative forecasts
Answer: E
Explanation: Managerial forecasts fall under two broad categories: quantitative forecasts, which
are typically based on historical data or tests and often involve complex statistical computations,
and qualitative forecasts, which are based more on intuitive judgments.
32) A mission statement is a statement of the operational goals of the organization.

Answer: FALSE
Explanation: A mission statement is a brief statement of why an organization exists. It describes
what the organization aims to accomplish for customers, investors, and other stakeholders.
33) A vision statement is a brief description of a company's present status in the market.
Answer: FALSE
Explanation: A vision statement is a brief and inspirational expression of what a company
aspires to be.
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34) A value statement does not establish expectations for an organization's employees.
Answer: FALSE
Explanation: A value statement establishes the expectations for an organization's employees.
35) Strengths and weaknesses are internal factors that contribute to a company's success or
failure.
Answer: TRUE
Explanation: Strengths are positive internal factors that contribute to a company's success.
Weaknesses are negative internal factors that inhibit the company's success.
36) An economic slowdown is viewed as a weakness in the SWOT analysis of a firm.

Answer: FALSE
Explanation: Weaknesses are negative internal factors that inhibit the company's success, such
as obsolete facilities, inadequate financial resources to fund growth, or lack of managerial depth
and talent. Economic slowdown is an external factor.
37) Qualitative managerial forecasts involve historical data and complex statistical computations.
Answer: FALSE
Explanation: Managerial forecasts fall under two broad categories: quantitative forecasts, which
are typically based on historical data or tests and often involve complex statistical computations,
and qualitative forecasts, which are based more on intuitive judgments.
38) A goal is a broad, long-term accomplishment that an organization wants to achieve.

Answer: TRUE
Explanation: A goal is a broad, long-range accomplishment that organizations want to attain and
an objective is a specific, short-range target designed to help them reach that goal.
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39) Compare and contrast mission statements, vision statements, and values statements.
Answer: A mission statement is a brief statement of why an organization exists. In other words,
what the organization aims to accomplish for customers, investors, and other stakeholders. A
vision statement is a brief and inspirational expression of what a company aspires to be. A values
statement is a brief articulation of the principles that guide a company's decisions and behaviors.
40) Compare and contrast an organization's strengths with opportunities.

Answer: Strengths are positive internal factors that contribute to a company's success, which can
be anything from a team of expert employees to financial resources to unique technologies.
Opportunities are positive situations that represent the possibility of generating new revenue.
Opportunities are not under an organization's control, whereas strengths can be controlled by the
organization. A respected brand name is a strength, whereas a booming economy is an
opportunity.
41) Compare and contrast quantitative forecasts with qualitative forecasts.

Answer: Managerial forecasts fall under two broad categories: quantitative forecasts (typically
involving historical data or tests and complex statistical computations) and qualitative forecasts
(typically involving intuition and judgment). Neither method is foolproof, but both are valuable
tools and are often used together to help managers fill in the unknown variables that inevitably
crop up in the planning process.
42) ________ is the process of arranging resources to carry out an organization's plans. It is one
of the major functions of managers.
A) Planning
B) Directing
C) Organizing
D) Analyzing
E) Controlling
Answer: C
Explanation: Organizing is the process of arranging resources to carry out an organization's
plans. It is one of the major functions of managers.
LO: 7.3: Describe the organizing function, and differentiate among top, middle, and first-line
management.
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43) Which of the following functions is typically performed by top managers?
A) establishing the structure for the organization
B) supervising lower-level managers
C) translating strategic goals into actions
D) putting the systems and resources in place
E) translating strategic objectives into the actions
Answer: A
Explanation: Top managers in an organization establish the structure for the organization as a
whole, and they select the people who fill the upper-level positions.
management.
44) Which of the following is a typical role of middle managers in an organization?

A) defining the strategic orientation of the organization
B) supervising workers on an assembly line
C) supervising knowledge workers
D) making long-range plans for the organization
E) translating strategic goals and objective into actions
Answer: E
Explanation: Middle managers play the essential role of translating strategic goals and
objectives into the actions that allow the company to meet those targets. While they may not do
the actual day-to-day work, middle managers are the ones who put the systems and resources in
place so that front-line teams can work efficiently and with coordinated purpose.
management.
45) How do managers help employees work toward company goals?

A) By determining who has the authority to make decisions.
B) By allowing all employees to be responsible for their decisions.
C) By allowing employees to take risks within the organization.
D) By understanding what competitors are doing well.
E) By understanding where competitors fall short of their goals and plans.
Answer: A
Explanation: Managers also give people the ability to work toward company goals by
determining who will have the authority to make decisions, to perform or supervise activities,
and to distribute resources.
management.
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46) Who is at the top of the management pyramid?
A) stakeholders
B) customers
C) suppliers and vendors
D) executives
E) middle managers
Answer: D
Explanation: Top managers are the upper-level managers, who have the most power and who
take overall responsibility for an organization.
Difficulty: 1: Easy
management.
47) How do the roles of top managers differ from middle managers?
A) The amount of time allowed for decisions.
B) The magnitude of the decisions being made.
C) The ability to hire and fire employees.
D) Their representation of the company to stakeholders.
E) Their ability to translate strategic goals into action.
Answer: B
Explanation: Two significant ways in which top management differs from lower management
tiers are the long time frames with which executives must work and the magnitude of the
decisions they need to make.
management.
48) What is the most essential role of middle managers?

A) Overseeing the actual day-to-day work of lower level managers.
B) Identifying strategic goals for the organization.
C) Translating strategic goals into action.
D) Establishing structure for the overall organization.
E) Selecting people to fill upper level management positions.
Answer: C
Explanation: Middle managers play the essential role of translating strategic goals and
objectives into the actions that allow the company to meet those targets. Although they may not
do the actual day-to-day work, middle managers are the ones who put the systems and resources
in place so that front-line teams can work efficiently and with coordinated purpose.
management.
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49) Who oversees the work of nonmanagerial employees?
A) middle managers
B) executives
C) supervisors
D) fist-line managers
E) top managers
Answer: D
Explanation: First-line managers (or supervisory managers) oversee the work of nonmanagerial
employees, and they put into action the plans developed at higher levels.
Difficulty: 1: Easy
management.
50) Organizing is the process of arranging resources to carry out an organization's plans.
Answer: TRUE
Explanation: Organizing is the process of arranging resources to carry out an organization's
plans. It is a major function of managers.
management.
51) A management pyramid is used to exhibit managerial roles without defining a corporate
hierarchy.
Answer: FALSE
Explanation: A management pyramid defines a corporate hierarchy.
management.
52) Middle managers establish the structure for an organization as a whole.

Answer: FALSE
Explanation: Top managers establish the structure for the organization as a whole, and they
select the people who fill the upper-level positions.
management.
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53) First-line managers are those at the lowest level of the management hierarchy.
Answer: TRUE
Explanation: First-line managers are those at the lowest level of the management hierarchy.
They supervise the operating employees and implement the plans set at the higher management
levels.
management.
54) Briefly describe the organizing function of management.

Answer: Organizing is the process of arranging resources to carry out an organization's plans. It
is the second major function of managers. To organize effectively, managers must think through
all the activities that employees perform, as well as all the facilities and equipment employees
need in order to complete those activities.
management.
55) Compare and contrast the roles of top managers and middle managers.
Answer: Top managers establish the structure for the organization as a whole, and they select
the people who fill the upper-level positions. Top managers also make long-range plans,
establish major policies, and often represent the company to the media, the community, and other
stakeholders.
Middle managers have similar responsibilities but on a smaller scale, such as for an individual
division or facility. Managers at this level report upward to top executives, while first-line
managers' report to them. Middle managers play the essential role of translating strategic goals
and objectives into the actions that allow the company to meet those targets.
management.
56) Do you think middle managers are essential to organizations? Explain your answer.
Answer: The term middle management is sometimes used disparagingly, giving the impression
that middle managers are people who clog up the works without adding much value. Some
highly regarded opinion leaders have gone so far as to blame such managers for much that ails
the modern corporation. Many companies have also flattened their organizational structures by
removing one or more layers of middle management. However, middle managers play the
essential role of translating strategic goals and objectives into the actions that allow the company
to meet those targets. Students may agree or disagree with the idea of having middle managers.
Student answers will vary due to the nature of this question.
management.
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57) ________ is the process of influencing and motivating people to work willingly and
effectively toward common goals.
A) Organizing
B) Leading
C) Planning
D) Directing
E) Controlling
Answer: B
Explanation: Leading is the process of influencing and motivating people to work willingly and
effectively toward common goals. Managers with good leadership skills have greater success in
influencing the attitudes and actions of others and motivating employees to put forth their best
performance.
LO: 7.4: Describe the leading function, leadership style, and organizational culture.
58) ________ intelligence involves reasoning, problem solving, memorization, and other rational
skills.
A) Cognitive
B) Emotional
C) Social
D) Collaborative
E) Networking
Answer: A
Explanation: Cognitive intelligence involves reasoning, problem solving, memorization, and
other rational skills. Obviously, leaders need a sufficient degree of cognitive intelligence to
understand and process the information required for planning and decision making in the jobs.
59) A manager has the capability of reducing his disruptive impulses and moods. He also has the
ability to understand others' feelings. These capabilities are indicative of ________.
A) low cognitive intelligence
B) high degree of autocracy
C) low social intelligence
D) high emotional intelligence
E) high cognitive intelligence
Answer: D
Explanation: People with high emotional intelligence recognize their own emotional states and
the effect those emotions have on others. They are able to regulate their emotional responses in
order to control or reduce disruptive impulses and moods, and they have a high degree of
empathy (the ability to understand others' feelings).
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60) Socially adept managers will have a knack for ________.
A) solving problems quickly using their reasoning abilities
B) exhibiting rational skills to make high-quality decisions
C) controlling their own emotions and impulses
D) judging others based on a variety of objective parameters
E) finding and building common ground with people of all kinds
Answer: E
Explanation: Socially adept managers have a knack for finding and building common ground
with people of all kinds. Moreover, leaders, in a sense, infect their organizations with their own
emotions, positive or negative.
61) Under ________ leadership, subordinates have little or no freedom to make decisions,
deviate from plans, or provide contrary input.
A) democratic
B) autocratic
C) laissez-faire
D) transformational
E) participative
Answer: B
Explanation: Under autocratic leadership, a manager makes the decisions and issues directives
down the chain of command. Subordinates have little or no freedom to make decisions, deviate
from plans, or provide contrary input.
62) ________ leaders act as advisors and supporters and generally let subordinates chart and
adjust their own course toward meeting agreed-upon goals and objectives.
A) Participative
B) Consultative
C) Autocratic
D) Transactional
E) Laissez-faire
Answer: E
Explanation: Laissez-faire leaders act as advisors and supporters, offering input as needed.
However, they generally let subordinates chart and adjust their own course toward meeting
agreed-upon goals and objectives.
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63) The first step in managing organizational change is ________.
A) monitoring continued progress of the change effort
B) identifying the need for change
C) reinforcing the changed behavior
D) analyzing the forces acting against the change
E) choosing the technique to be used in instituting the change
Answer: B
Explanation: The first step in managing change is identifying everything that needs to be
changed.
64) What type of leadership skill is based on a person's unique attributes, such as expertise or
charisma?
A) position power
B) cognitive intelligence
C) personal power
D) emotional intelligence
E) empathy
Answer: C
Explanation: Both management and leadership involve the use of power, but management
involves position power (so called because it stems from the individual's position in the
organization), whereas leadership involves personal power (which stems from a person's own
unique attributes, such as expertise or charisma).
65) What type of intelligence includes empathy?

A) cognitive
B) autocratic
C) democratic
D) emotional
E) social
Answer: D
Explanation: People with high emotional intelligence recognize their own emotional states and
the effect those emotions have on others, they are able to regulate their emotional responses in
order to control or reduce disruptive impulses and moods, and they have a high degree of
empathy (the ability to understand others' feelings).
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66) What type of leader uses his or her position to control the decision-making process in the
organization?
A) democratic
B) empathetic
C) emotional
D) cognitive
E) autocratic
Answer: E
Explanation: Autocratic leaders control the decision-making process in their organizations, often
restricting the decision-making freedom of subordinates.
67) What type of leaders work to foster participative management within the organization?
A) collaborative
B) laissez-faire
C) employee empowerment
D) autocratic
E) coaches
Answer: A
Explanation: Also known as collaborative leaders, democratic managers invite and seek out
input from anyone in the organization who can add insight to the decision-making process.
68) Which of the following gives employees the authority to make decisions that apply to their
specific areas of work?
A) coaching
B) employee empowerment
C) collaboration
D) mentoring
E) culture
Answer: B
Explanation: After the overall strategic direction and priorities are in place, laissez-faire leaders
emphasize employee empowerment-giving employees the power to make decisions that apply to
their specific aspects of work.
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69) Which leadership role is developed based on long-term relationships between senior and
junior members of an organization?
A) coaching
B) collaboration
C) mentoring
D) participative
E) empowering
Answer: C
Explanation: Mentors have a deep knowledge of the business and can explain office politics,
serve as role models for appropriate business behavior, and provide valuable advice about how to
succeed within the organization.
70) Leading is the process of influencing and motivating people to work willingly and effectively
toward common goals.
Answer: TRUE
Explanation: Leading is the process of influencing and motivating people to work willingly and
effectively toward common goals.
71) Cognitive intelligence is a measure of a person's awareness of and ability to manage his or
her own emotions.
Answer: FALSE
Explanation: Emotional intelligence is a measure of a person's awareness of and ability to
manage his or her own emotions. People with high emotional intelligence recognize their own
emotional states and the effect those emotions have on others.
72) Socially adept managers have a knack for finding and building common ground with people
of all kinds.
Answer: TRUE
Explanation: Social intelligence involves looking outward to understand the dynamics of social
situations and the emotions of other people, in addition to your own. Socially adept managers
have a knack for finding and building common ground with people of all kinds.
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73) Mentoring is the process of establishing a short-term relationship between a senior member
and a junior member.
Answer: FALSE
Explanation: Mentoring is similar to coaching but is based on long-term relationships between
senior and junior members of an organization.
74) Compare and contrast cognitive intelligence and social intelligence.

Answer: Cognitive intelligence involves reasoning, problem solving, memorization, and other
rational skills. Obviously, leaders need a sufficient degree of cognitive intelligence to understand
and process the information required for planning and decision making in the jobs. Social
intelligence involves looking outward to understand the dynamics of social situations and the
emotions of other people, in addition to your own. Socially adept managers have a knack for
finding and building common ground with people of all kinds.
75) Explain how democratic leaders function.

Answer: Democratic leaders delegate authority and involve employees in decision making. Also
known as collaborative leaders, these managers invite and seek out input from anyone in the
organization who can add insight to the decision-making process. This style is often called
participative management.
76) Compare and contrast cognitive intelligence and social intelligence.

Answer: Cognitive intelligence involves reasoning, problem solving, memorization, and other
rational skills. Obviously, leaders need a sufficient degree of cognitive intelligence to understand
and process the information required for planning and decision making in the jobs. Social
intelligence involves looking outward to understand the dynamics of social situations and the
emotions of other people, in addition to your own. Socially adept managers have a knack for
finding and building common ground with people of all kinds.
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77) ________ is the management function of keeping a company's activities on track toward
previously established goals.
A) Organizing
B) Leading
C) Planning
D) Motivating
E) Controlling
Answer: E
Explanation: Controlling is the management function of keeping a company's activities on track
toward previously established goals. The nature of control varies widely, from directly
intervening in a process to modifying policies or systems in a way that enables employees to
reach their objectives.
LO: 7.5: Describe the controlling function, and explain the four steps in the control cycle.
78) Directly intervening in organizational processes to improve performance is an example of the

________ function of management.
A) communicating
B) controlling
C) planning
D) organizing
E) decision-making
Answer: B
toward previously established goals. The nature of control varies from directly intervening in a
process to modifying policies or systems in a way that enables employees to reach their
objectives.
79) The criteria against which performance is measured are referred to as ________.
A) standards
B) tools
C) controls
D) goals
E) frameworks
Answer: A
Explanation: Standards refer to the criteria against which performance is measured. Managers
set standards in the first step of the control cycle.
23
80) Benchmarking refers to ________.
A) comparing performance results between work groups in the organization
B) determining departmental standards of performance
C) establishing a timeline to determine efficiency
D) balancing process and performance data within the company
E) comparing process and performance data from other companies
Answer: E
Explanation: A common approach to setting standards is benchmarking. It involves collecting
and comparing process and performance data from other companies.
81) ________ is a measure of how closely a product conforms to predetermined standards and
customer expectations.
A) Productivity
B) Yield
C) Quality
D) Efficiency
E) Structure
Answer: C
Explanation: Quality is a measure of how closely a product conforms to predetermined
standards and customer expectations. It is one of the most important performance variables that
fall under managerial control.
82) Balanced scorecard is a method of ________.

A) creating schedules for non-routine organizational tasks
B) monitoring a company's performance from multiple perspectives
C) evaluating the external threats of an organization
D) documenting the strategic goals of an organization
E) monitoring the external opportunities of an organization
Answer: B
Explanation: Balanced scorecard is a method of monitoring the performance from four
perspectives: finances, operations, customer relationships, and the growth and development of
employees and intellectual property.
24
83) Controlling is the process of motivating employees to be committed toward the
organization's values.
Answer: FALSE
toward previously established goals.
84) Standards refer to the criteria against which performance is measured.

Answer: TRUE
Explanation: Standards refer to the criteria against which performance is measured. Setting
standards is the first step of the control cycle.
85) Quality is a measure of how productive an organization's employees are.

Answer: FALSE
Explanation: Quality is a measure of how closely a product conforms to predetermined
standards and customer expectations.
86) Explain a balanced scorecard.

Answer: Balanced scorecard is a method of monitoring the performance from four perspectives:
finances, operations, customer relationships, and the growth and development of employees and
intellectual property. It is used by managers in the second step of the control cycle.
87) ________ skills are required to understand others and to interact effectively with them.
A) Technical
B) Decisional
C) Conceptual
D) Administrative
E) Interpersonal
Answer: E
Explanation: Interpersonal skills are required to understand other people and to interact
effectively with them.
LO: 7.6: Identify and explain four important types of managerial skills.
25
88) ________ is the most important and pervasive interpersonal skill that managers use.
A) Communication
B) Evaluation
C) Analytics
D) Negotiation
E) Computer literacy
Answer: A
Explanation: Communication is the most important and pervasive interpersonal skill that
managers use. Effective communication not only increases a manager's and an organization's
productivity but also shapes the impression made on colleagues.
89) Which of the following skills refer to the ability and knowledge to perform the mechanics of
a particular job?
A) cognitive skills
B) technical skills
C) conceptual skills
D) decisional skills
E) organizational skills
Answer: B
Explanation: Technical skills refer to the ability and knowledge to perform the mechanics of a
particular job.
90) Which of the following is the best example of a technical skill that managers must possess?
A) capability of making accurate decisions on issues
B) ability to get along well with the subordinates
C) ability to prepare a formal profit and loss statement
D) ability to collaborate well with workers
E) capability to understand the relationship between parts and whole
Answer: C
Explanation: A person who knows how to operate a machine, prepare a financial statement, or
use a web content management system has technical skills. Technical skills refer to the ability
and knowledge to perform the mechanics of a particular job.
26
91) ________ skills refer to technical skills in information gathering, data analysis, planning,
organizing, and other aspects of managerial work.
A) Collaborative
B) Decisional
C) Conceptual
D) Administrative
E) Interpersonal
Answer: D
Explanation: Administrative skills are technical skills in information gathering, data analysis,
planning, organizing, and other aspects of managerial work.
92) Which of the following is an example of an administrative skill that managers possess?
A) ability to make correct hiring decisions
B) being skillful in information gathering
C) being skillful in operating machines
D) ability to understand others' feeling
E) fostering empathy among employees
Answer: B
Explanation: Administrative skills refer to the technical skills in information gathering, data
analysis, planning, organizing, and other aspects of managerial work.
93) ________ skills refer to the ability to understand the relationship of parts to the whole.
A) Interpersonal
B) Conceptual
C) Technical
D) Administrative
E) Decision-making
Answer: B
Explanation: Conceptual skills refer to the ability to understand the relationship of parts to the
whole. Managers need conceptual skills to visualize organizations, systems, markets, and
solutions, both as complete entities on their own and as interrelated pieces of a whole.
27
94) Systems thinking ability refers to the ability to understand the relationship between
components and the larger output. Systems thinking ability is an example of a(n) ________ skill.
A) interpersonal
B) conceptual
C) technical
D) administrative
E) decision-making
Answer: B
Explanation: Conceptual skills refer to the ability to understand the relationship of parts to the
whole. Systems thinking ability, as described in the question, is a conceptual skill.
95) Managers need conceptual skills to ________.

A) perform such tasks as operating a machine and preparing a financial statement
B) gather information relating various managerial and non-managerial issues
C) accurately perform the mechanics of a particular job
D) understand other people and to interact effectively with them
E) visualize elements both as complete entities on their own and as interrelated pieces of a whole
Answer: E
Explanation: Managers need conceptual skills to visualize organizations, systems, markets, and
solutions–both as complete entities on their own and as interrelated pieces of a whole.
96) Conceptual skills refer to the ability and knowledge to perform the mechanics of a particular
job.
Answer: FALSE
Explanation: Technical skills refer to the ability and knowledge to perform the mechanics of a
particular job. In contrast, conceptual skills refer to the ability to understand the relationship of
parts to the whole.
97) Identifying and developing options requires strong conceptual skills by managers.
Answer: TRUE
Explanation: Identifying and developing options requires solid conceptual skills. Managers may
need to break old thinking habits and throw away long-held assumptions in order to find
promising solutions to tough problems.
28
98) Briefly explain the four basic categories of management skills.
Answer: The four types of skills are explained below.
(1) Interpersonal skills: These are skills required to understand other people and to interact
effectively with them.
(2) Technical skills: They refer to the ability and knowledge to perform the mechanics of a
particular job.
(3) Conceptual skills: They refer to the ability to understand the relationship of parts to the
whole.
(4) Decision-making skills: They refer to the ability to identify a decision situation, analyze the
problem, weigh the alternatives, choose an alternative, implement it, and evaluate the results.
99) Compare and contrast technical skills and conceptual skills.

Answer: Technical skills refer to the ability and knowledge to perform the mechanics of a
particular job. A person who knows how to operate a machine, prepare a financial statement, or
use a web content management system has technical skills. Conceptual skills refer to the ability
to understand the relationship of parts to the whole. Managers need conceptual skills to visualize
organizations, systems, markets, and solutions–both as complete entities on their own and as
interrelated pieces of a whole.
100) Think of a situation where you have used decision-making skills to solve a problem.
Analyze the situation based on the decision-making steps discussed in the text.
Answer: The steps described in the text are the following:
(1) Recognize and define the situation
(2) Identify options
(3) Analyze options
(4) Select the best option
(5) Implement the decision
(6) Monitor and evaluate the results
Students should relate the decision that they have made to these steps.
29

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2) Providing leadership to employees is an example of a(n) ________ role of management.

17) Explain the decisional roles of managers.

23) Which of the following is an example of a strength that companies possess?

25) In order to be effective, a business goal should be ________.

31) Which of the following are based on intuitive judgments?

32) A mission statement is a statement of the operational goals of the organization.

36) An economic slowdown is viewed as a weakness in the SWOT analysis of a firm.

38) A goal is a broad, long-term accomplishment that an organization wants to achieve.

40) Compare and contrast an organization's strengths with opportunities.

41) Compare and contrast quantitative forecasts with qualitative forecasts.

44) Which of the following is a typical role of middle managers in an organization?

45) How do managers help employees work toward company goals?

48) What is the most essential role of middle managers?

52) Middle managers establish the structure for an organization as a whole.

54) Briefly describe the organizing function of management.

65) What type of intelligence includes empathy?

74) Compare and contrast cognitive intelligence and social intelligence.

75) Explain how democratic leaders function.

76) Compare and contrast cognitive intelligence and social intelligence.

78) Directly intervening in organizational processes to improve performance is an example of the

82) Balanced scorecard is a method of ________.

84) Standards refer to the criteria against which performance is measured.

85) Quality is a measure of how productive an organization's employees are.

86) Explain a balanced scorecard.

95) Managers need conceptual skills to ________.

99) Compare and contrast technical skills and conceptual skills.

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