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Chapter 7—Management, Leadership, and the Internal Organization
MATCHING
Complete the following using the terms listed.

a. corporate culture
b. top management
c. line organization
d. strategic planning
e. departmentalization
f. line organization
g. delegation
h. matrix
i. span of management
j. controlling
k. decentralization
l. empowerment
m. SWOT analysis
n. contingency planning
o. competitive differentiation
p. autocratic leaders
q. human skills
r. mission statement
1. _____ allows a firm to resume operations quickly and smoothly after a crisis, while
openly communicating with the public.
ANS: n
DIF: medium
LO: 7.5
SECTION: Importance of Planning
PAGE: 105
AACSB: Analytic
BLOOM’S: Knowledge
2. The number of subordinates a manager supervises is referred to as the _____.
ANS: i
DIF: medium
LO: 7.4
SECTION: Managers as Decision Makers
PAGE: 104
AACSB: Analytic
3. __________ include the ability to communicate with, motivate, and lead employees
to complete assigned activities.
ANS: q
DIF: medium
LO: 7.1
SECTION: Define Management
PAGE:
AACSB: Analytic
4. Determining the unique combination of a company’s abilities and approaches is

called _____.
ANS: o
DIF: medium
LO: 7.6
SECTION: The Strategic Planning Process
PAGE: 106
AACSB: Analytic
5. A(n) _____ is an organized approach to assessing a company’s internal strengths and

weaknesses and its external opportunities and threats.
ANS: m
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
6. _____, or project management, links employees from different parts of the
organization to work together on specific projects.
ANS: h
DIF: medium
LO: 7.7
SECTION: Organizational Structures
PAGE: 108
AACSB: Analytic
7. _____ is the process of achieving organizational objectives through people and other
resources.
ANS: d
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
8. A(n) _____ is a written explanation of an organization’s business intentions and

aims.
ANS: r
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
9. A(n) _____ is a structured grouping of people working together to achieve common

goals.
ANS: c
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
10. A company that emphasizes _____ locates decision at lower levels.
ANS: k
DIF: medium
LO: 7.4
PAGE: 104
AACSB: Analytic
11. The __________ structure establishes a direct hierarchy of managers and workers.
ANS: f
DIF: medium
LO: 7.4
PAGE: 104
AACSB: Analytic
12. The ________ function evaluates an organization’s performance against its

objectives.
ANS: j
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
13. People who make decisions on their own without consulting subordinates are _____.
ANS: p
DIF: medium
LO: 7.2
SECTION: Managers as Leaders
PAGE: 102
AACSB: Analytic
14. _______ is the business concept in which employees share authority, responsibility,
and decision making with their managers.
ANS: l
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
15. _____ is the process of dividing work activities into units within the organization.
ANS: e
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
16. _____ includes positions such as CEO and CFO; devotes most of their time
developing long-range plans.
ANS: b
DIF: medium
LO: 7.1
SECTION: Define Management
PAGE:
AACSB: Analytic
17. An organization’s system of principles, beliefs, and values is called _____.
ANS: a
DIF: medium
LO: 7.3
SECTION: Leading by Setting a Vision for the Firm
PAGE: 103
AACSB: Analytic
18. The act of assigning activities to subordinates is called _____.
ANS: g
DIF: medium
LO: 7.4
PAGE: 104
AACSB: Analytic
ESSAY
19. Differentiate among the three levels of management and their corresponding
responsibilities.
ANS: The management pyramid is made up of three levels: top, middle, and supervisory
managers. Top managers make key decisions, such as the vision of the corporation
or whether or not to purchase a new company or products. Middle management
directs and implements these key decisions. Supervisors, or first-line managers, are
responsible for day-to-day decisions and for assigning non-managerial people their
work schedules and evaluating their performance.
DIF: hard
LO: 7.1
SECTION: What is Management?
PAGE: 100
AACSB: Analytic
BLOOM’S: Analysis
20. Identify the three basic skills necessary for managerial success and provide an
example for each.
ANS: The three basic skills are human skills, technical skills, and conceptual skills. An
important human skill for a manager to possess would be conducting a company
meeting in which the manager would speak to people both in person and through a
conference call system. An example of a technical skill is a factory manager’s ability
to effectively run each machine in his or her department in order to help employees.
An example of a conceptual skill is a manager’s ability to sit down and plan an
achievable goal for his or her company’s monthly sales.
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Communication
BLOOM’S: Comprehension
21. Describe leadership and power. From which sources do managers generate their
power?
ANS:Leadership involves the use of influence or power. This influence may come from
one or more sources. One source of power is the leader’s position in the company. A
national sales manager has the authority to direct the activities of the sales force.
Another source of power is a leader’s expertise and experience. A first-line
supervisor with expert machinist skills will most likely be respected by employees in
the machining department. Some leaders derive power from their personalities.
Employees may admire a leader because they recognize an exceptionally kind and
fair, humorous, energetic, or enthusiastic person. Admiration, inspiration, and
motivation are especially important during difficult economic times or when a leader
has to make tough decisions for the company.
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
22. Distinguish among autocratic, democratic, and free-rein leadership.
ANS:Autocratic leaders make decisions on their own without consulting employees. They
reach decisions, communicate them to subordinates, and expect prompt
implementation of instructions. Democratic leadership involves subordinates in the
decision-making process. Democratic leaders are willing to delegate assignments,
ask employees for suggestions, and encourage participation. Free-rein leaders
believe in minimal supervision, leaving most decisions to their subordinates. A
free-rein leader communicates with employees frequently, as the situation warrants.
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
BLOOM’S: Analysis
23. Provide examples of tools managers might use to reinforce corporate culture.
ANS:Managers use symbols, rituals, ceremonies, and stories to strengthen corporate

culture.
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
BLOOM’S: Application
24. Explain the role of vision in business success.
ANS:Vision is the ability to perceive the needs of the marketplace and develop methods
for satisfying those needs. Vision helps new businesses pinpoint the actions needed
to take advantage of opportunities. In an existing firm, a clear vision of company
purpose helps unify the actions of separated divisions, keeps customers satisfied, and
sustains growth.
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
25. Define centralization and decentralization. Provide an example.

ANS:How widely should managers disperse decision-making authority throughout an
organization? A company that emphasizes centralization retains decision making at
the top of the management hierarchy. A company that emphasizes decentralization
locates decision making at lower levels. A trend toward decentralization has pushed
decision making down to operating employees in many cases. Firms that have
decentralized believe that the change can improve their ability to serve customers.
For example, the front-desk clerk at a hotel is much better equipped to fulfill a
guest’s request for a crib or a wake-up call than the hotel’s general manager.
DIF: medium
LO: 7.4
PAGE: 104
AACSB: Analytic
26. Explain what is meant by span of management. Describe the trend in determining
span of management.
ANS: Span of management, also known as span of control, refers to the number of
subordinates a manager directly supervises. These subordinates are often referred to
as direct reports. In recent years, a growing trend has brought wider spans of control,
as companies have reduced their layers of management in order to flatten their
organizational structures. In this process, they increase the decision-making
responsibility they give employees.
DIF: medium
LO: 7.4
PAGE: 104
AACSB: Analytic
27. How does strategic planning differ from tactical planning? Give an example of each
type of planning.
ANS: Strategic planning is the most far-reaching level of planning. It is the process of
determining the primary objectives of the organization and then acting and allocating
resources to achieve those objectives. PepsiCo’s decision to sell its fast-food
restaurants and concentrate on soft drinks and snack foods was the result of a
strategic planning process. Tactical planning, by contrast, involves implementing the
activities specified by strategic plans. Tactical plans guide the current and near-term
activities required to implement overall strategies. An example of tactical planning is
PepsiCo’s efforts to build sales by using displays that place snack foods and drinks
side by side.
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
BLOOM’S: Analysis
28. Define operational planning. How is this different from strategic planning? Provide
an example.
ANS:Operational planning creates the detailed standards that guide implementation of

tactical plans. This activity involves choosing specific work targets and assigning
employees and teams to carry out plans. Unlike strategic planning, which focuses on
the organization as a whole, operational planning deals with developing and
implementing tactics in specific functional areas. Operational planning is important
at the supervisory management level. An example is setting weekly plans for a
department and establishing rules and procedures for employees.
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
BLOOM’S: Analysis
29. What is a mission statement? What are the qualities of an effective mission
statement? Provide an example.
ANS:The first step in strategic planning is to translate the firm’s vision into a mission
statement. A mission statement is a written explanation of an organization’s business
intentions and aims. It is an enduring statement of a firm’s purpose, possibly
highlighting the scope of operations, the market it seeks to serve, and the ways it will
attempt to set itself apart from competitors. A mission statement guides the actions
of employees, and publicizes the company’s reasons for existence. A good mission
statement states the firm’s purpose for being in business and its overall goal. The
most effective mission statements are memorable as well. An example is Starbucks’
mission statement: Starbucks: “To inspire and nurture the human spirit—one person,
one cup and one neighborhood at a time.”
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
30. Define SWOT analysis and explain its purpose in the strategic planning process.
ANS: SWOT is an acronym for strengths, weaknesses, opportunities, and threats. SWOT
analysis is one method of assessing a company’s competitive position. Strengths and
weaknesses can be examined in each area of the company including finance,
marketing, information technology, and human resources. Opportunities and threats
include market growth, regulatory changes, and increased competition. SWOT
analysis is useful in the strategic planning process because it forces management to
look at factors both inside and outside the organization. SWOT analysis examines
not only the current picture, but also necessary actions to prepare for likely future
developments.
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
31. Describe the final step in the strategic planning process. Provide an example.
ANS:The final step in the strategic planning process is to monitor and adapt plans when
the actual performance fails to meet goals. Monitoring involves securing feedback
about performance. Managers might compare actual sales against forecasts; compile
information from surveys; listen to complaints from the customer hot line; interview
employees who are involved; and review reports prepared by production, finance,
marketing, or other company units. If a retailer observes customers buying more
jeans when they are displayed near the front door, likely the display area will stay
near the door—and perhaps be enlarged. Ongoing use of such tools as SWOT
analysis and forecasting can help managers adapt their objectives and functional
plans as changes occur.
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
32. Compare the four types of organizational structures.
ANS: The line organization establishes a direct flow of authority, known as a chain of
command. This organization is effective only for the smallest businesses.
Conversely, a line-and-staff organization combines the direct flow of authority of a
line organization with supporting staff departments. The third organizational
structure is the committee organization, which places authority with a group of
individuals rather than a single manager. Finally, the matrix structure links
employees from different parts of the organization to work together on specific
projects.
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
BLOOM’S: Analysis
MULTIPLE CHOICE
33. As someone moves up the managerial hierarchy, which skills become relatively
more important?
a. technical skills
b. human skills
c. conceptual skills
d. supervisory skills
ANS: c
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
34. Which level of management includes job titles such as general manager, division
manager, or plant manager?
a. middle management
b. supervisory management
c. top management
d. staff management
ANS: a
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
35. Lupe’s job duties include such tasks as deciding whether or not to introduce a new
product or enter a new foreign market. Lupe is most likely a member of ________
management.
a. Middle
b. Top
c. supervisory
d. Line
ANS: b
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
36. Emily is a manager who spends most of her time in day-to-day decisions assigning
non-managerial employees to specific jobs. Emily is considered a ________
manager.
a. staff
b. technical
c. supervisory
d. mid-level
ANS: c
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
37. Human skills involve ________.
a. directing and controlling operations
b. understanding knowledge and tools of a specific discipline
c. leading and motivating workers
d. seeing the organization as a unified whole
ANS: c
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
38. Management is the process of achieving ________ through people and other
resources.
a. profits
b. societal objectives
c. status
d. organizational objectives
ANS: d
DIF: easy
LO: 7.1
PAGE: 100
AACSB: Analytic
39. Most top executives began their careers as which type of expert?
a. technical
b. financial
c. human relations
d. marketing
ANS: a
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
40. First-line managers interact continuously with members of the work team. Therefore,
they must possess effective ________ skills.
a. visionary
b. human
c. conceptual
d. technical
ANS: b
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
41. Which of the four functions of management creates a well-designed road map of the
actions needed to lead a company forward?
a. organizing
b. directing
c. controlling
d. planning
ANS: d
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
42. When Sara instructs new employees on handling customer complaints, she motivates
them to respond with patience and a positive attitude. Sara has effective ________
skills.
a. human
b. conceptual
c. intuitive
d. visionary
ANS: a
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Communication
43. Don, president of Pioneer Graphics, is highly respected for his ability to analyze and
interpret trends in the rapidly changing graphics industry. Don has effective
________ skills.
a. human relations
b. technical
c. conceptual
d. supervisory
ANS: c
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
44. Hasim is a bank manager who believes his bank should expand nationally for greater
profit and efficiency. Hasim is using his ________ skills.
a. supervisory
b. conceptual
c. human
d. technical
ANS: b
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
45. Rosetta classifies and divides work into manageable units by determining the
specific tasks necessary to introduce a new product. Rosetta is involved in the
________ managerial function.
a. organizing
b. controlling
c. directing
d. planning
ANS: a
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
46. Conceptual skills are ________.

a. not as important at the top management level
b. most important for supervisors
c. used to motivate, communicate, and lead other employees
d. skills that allow a person to understand how all the pieces of an organization fit
together to accomplish its objectives
ANS: d
DIF: easy
LO: 7.1
PAGE: 100
AACSB: Analytic
47. Ramon’s job is to establish performance standards, monitor actual performance, and
compare actual performance to the standards. Ramon is engaged in the ________
managerial function.
a. Directing
b. Controlling
c. Organizing
d. Planning
ANS: b
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
48. Kevin is working on a project where he needs to anticipate future events and
conditions, as well as avoid costly mistakes. Kevin is engaged in the ________
managerial function.
a. Controlling
b. Planning
c. Organizing
d. Directing
ANS: b
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
49. Manuel is responsible for guiding and motivating 10 other employees to accomplish
various organizational objectives. Manuel handles the ________ managerial
function.
a. Planning
b. Organizing
c. Directing
d. Controlling
ANS: c
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
50. Which leadership style would allow sales personnel to participate in setting sales
quotas?
a. free-rein
b. Judgmental
c. Democratic
d. Autocratic
ANS: c
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
51. Leadership is most often associated with the ability to ________.

a. inspire others toward high levels of achievement
b. arrange activities that have to be performed in a systematic way
c. determine the most effective course of action
d. communicate well with large groups of people
ANS: a
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
52. Autocratic leaders ________.

a. involve subordinates in making decisions
b. are open-minded leaders
c. believe in minimal supervision
d. make decisions on their own, often without consulting others
ANS: d
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
53. Autocratic leaders have all of the following characteristics EXCEPT ________.
a. concentration of power with the manager
b. two-way communication
c. decisions are made by the manager with little to no consultation from subordinates
d. employees are closely supervised
ANS: b
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
54. ________ is the ability of directing or inspiring others to perform activities designed
to achieve organizational objectives.
a. Controlling
b. Communicating
c. Organizing
d. Leadership
ANS: d
DIF: easy
LO: 7.2
PAGE: 102
AACSB: Analytic
55. Democratic leaders ________.

a. are always the most effective leaders
b. let people know only what they need to know to do their jobs
c. involve their subordinates in making decisions
d. leave all decisions to their subordinates
ANS: c
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
56. Maya, director of admissions at Glenview Hospital, frequently seeks input from
subordinates on issues relating to her department. Maya’s style of leadership would
be considered ________.
a. free-rein
b. Judgmental
c. Autocratic
d. Democratic
ANS: d
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
57. Leaders establish power from all of the following sources EXCEPT their ________.
a. position in the organization
b. expertise
c. leadership style
d. Personality
ANS: c
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
58. Marcus believes in empowering the employees in his department. Most likely,
Marcus is a(n) ________ leader.
a. task-oriented
b. independent
c. democratic
d. autocratic
ANS: c
DIF: easy
LO: 7.2
PAGE: 102
AACSB: Analytic
59. Harriet, the marketing manager of Video One, allows subordinates to make most of
the decisions for the department. Harriet’s leadership style can best be described as
________.
a. free-rein
b. Autocratic
c. Democratic
d. Persuasive
ANS: a
DIF: easy
LO: 7.2
PAGE: 102
AACSB: Analytic
60. Marriott has a policy of allowing employees at its hotels to immediately respond to
customer problems without having to obtain prior approvals from senior managers.
This policy is best described as ________.
a. free-rein leadership
b. employee responsibility
c. autocratic leadership
d. employee empowerment
ANS: d
DIF: easy
LO: 7.2
PAGE: 102
AACSB: Analytic
61. The best style of leadership is ________.

a. democratic
b. it depends on the situation
c. dependent on employee feedback
d. free-rein
ANS: b
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
62. An organization’s system of principles, beliefs, and values is called ________.

a. corporate culture
b. democratic leadership system
c. free-rein system
d. organizational structure
ANS: a
DIF: easy
LO: 7.3
PAGE: 103
AACSB: Analytic
63. Vision should be ________ and ________.

a. rigid; focused
b. rigid; broad
c. focused; flexible
d. flexible; broad
ANS: c
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
64. In an organization with a strong culture, ________.
a. the management is usually autocratic
b. everyone knows and supports the same objectives
c. the use of rituals is nonexistent
d. employees are encouraged to think and act independently
ANS: b
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
65. Which of the following statements is incorrect regarding corporate culture?

a. The leadership style of managers, the way it communicates, and the overall work
environment influence a firm’s culture.
b. Companies that grow quickly typically do not have time to create a culture.
c. A company with strong tradition should not alter its culture.
d. A culture is typically shaped by supervisors.
ANS: a
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
66. Generally, which type of manager establishes the company’s vision?

a. supervisory managers
b. staff managers
c. middle managers
d. top management
ANS: d
DIF: easy
LO: 7.3
PAGE: 103
AACSB: Analytic
67. ________ is a founder's perception of what the organization wants to be or how it
wants the world to be.
a. Vision
b. Strategic planning
c. Strategic management
d. The organizing function
ANS: a
DIF: easy
LO: 7.3
PAGE: 103
AACSB: Analytic
68. Kiki strongly believes that college students need credit counseling, so she begins a
not-for-profit organization devoted to this need. Kiki is exhibiting ________.
a. strategic planning
b. the organizing function of management
c. Vision
d. strategic management
ANS: c
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
69. Corporate culture is reinforced by all of the following factors EXCEPT ________.
a. symbols
b. finances
c. rituals
d. stories
ANS: b
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
70. A company’s perceptions regarding the marketplace needs and the ways a firm can
satisfy them is known as a __________.
a. vision
b. strategic plan
c. financial plan
d. contingency plan
ANS: a
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
71. The managerial process of assigning work to employees is called

a. parceling
b. decision making
c. delegation
d. centralization
ANS: c
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
72. Tiffany is a first-line manager at an electronics retailer. The number of employees

that Tiffany supervises is known as:
a. subordinate count
b. Underlings
c. workforce
d. span of management
ANS: d
DIF: medium
LO: 7.4
PAGE: 104
AACSB: Analytic
73. Calico Inc. retains decision making at the top of the management hierarchy. Calico
Inc. emphasizes:
a. Decentralization
b. centralization
c. decision making
d. Procedures
ANS: b
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
74. Planning helps businesses:

a. avoid costly mistakes
b. seize opportunities
c. focus its mission
d. all of the above
ANS: d
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
75. Planning should be ________ and ________ to changes in the business environment.
a. flexible; responsive
b. flexible; unresponsive
c. rigid; responsive
d. creative; responsive
ANS: a
DIF: medium
LO: 7.4
PAGE: 104
AACSB: Analytic
76. The online shoe retailer Zappos empowers workers through the process of:
a. decision making
b. delegation
c. raises
d. team meetings
ANS: b
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
77. Employees thrive when they are given:

a. high-paying salaries
b. few responsibilities
c. paid time off
d. authority to make decisions
ANS: d
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
78. ________ planning guides the current and near-term activities required to implement
overall strategies.
a. contingency
b. tactical
c. strategic
d. operational
ANS: b
DIF: easy
LO: 7.5
PAGE: 105
AACSB: Analytic
79. When Tina reviews applications for a new position in finance, she is using ________
planning.
a. operational
b. contingency
c. tactical
d. strategic
ANS: a
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
80. A petroleum refinery stockpiles crude oil so that it can easily switch between
producing home heating oil and gasoline, depending on relative demand. This is an
example of ________ planning.
a. contingency
b. tactical
c. strategic
d. operational
ANS: c
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
81. By implementing a needed flight schedule between St. Louis and Chicago,
Southwest Airlines was using ________ planning to complete its goals.
a. contingency
b. strategic
c. operational
d. tactical
ANS: d
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
82. Which of the following decisions was NOT directly the result of a company’s
strategic planning?
a. Pepsi’s decision to sell its fast-food restaurants and focus on soda and snack foods
b. AOL’s decision to merge with Time Warner
c. Jet Blue Airlines’ decision to add service to Oakland, California
d. The decision by Amazon.com to expand its product offerings beyond books and
music
ANS: c
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
83. When John sets deadlines for an upcoming project, he is using ________ planning.
a. operational
b. tactical
c. strategic
d. contingency
ANS: a
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
84. Which type of planning determines the primary objectives of an organization, and
then acts and allocates resources to achieve those objectives?
a. tactical planning
b. strategic planning
c. contingency planning
d. operational planning
ANS: b
DIF: easy
LO: 7.5
PAGE: 105
AACSB: Analytic
85. ________ planning involves implementing activities specified by strategic plans.

a. Financial
b. Tactical
c. Operational
d. Contingency
ANS: b
DIF: easy
LO: 7.5
PAGE: 105
AACSB: Analytic
86. Nearly a week before Hurricane Katrina reached New Orleans, Home Depot began
moving trucks and supplies into position, as specified in the company’s ________
plan.
a. tactical
b. strategic
c. operational
d. contingency
ANS: d
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
87. A home furnishing store issued a recall notice about a vase that easily cracks. Before
the notice was publicly issued, the company had assembled a crisis management
team to enact a(n) ________ plan.
a. tactical
b. operational
c. contingency
d. strategic
ANS: c
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
88. Top management usually spends the majority of time on ________ plans.
a. tactical
b. contingency
c. strategic
d. operational
ANS: c
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
89. Minnesota & Iowa Railway has plans in place to reroute trains in the event that
floods or other natural disasters close some of the railroad’s tracks. This is an
example of ________ planning.
a. contingency
b. tactical
c. strategic
d. operational
ANS: a
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
90. Tactical planning is primarily the responsibility of ________.

a. middle managers
b. supervisory managers
c. top managers
d. the CEO
ANS: a
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
91. What is the first step in the strategic planning process?

a. Create a mission statement.
b. Monitor and adapt plans.
c. Assess competitive position.
d. Develop strategies for reaching objectives.
ANS: a
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
92. Mario is part of a strategic planning team. He has identified that his company is the
low-cost producer in its industry. This should be listed on a SWOT analysis as a(n)
________.
a. threats
b. weaknesses
c. opportunity
d. strength
ANS: d
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
93. Julian owns a bread company and is creating a SWOT analysis to see where he can
make improvements and increase sales. All of the following are threats to the
success of his company EXCEPT ________.
a. economies of scale
b. downturn in the economy
c. regulatory changes
d. enhanced competition
ANS: a
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
94. By using a(n) ________, Starbucks addressed the threat of fluctuating consumer
trends by offering a variety of beverages and merchandise beyond coffee.
a. mission statement
b. Matrix
c. SWOT analysis
d. contingency plan
ANS: c
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
95. A written explanation of an organization’s business intentions and aims is called a(n)
________.
a. objective
b. mission statement
c. SWOT analysis
d. strategy for competitive differentiation
ANS: b
DIF: easy
LO: 7.6
PAGE: 106
AACSB: Analytic
96. Which managers typically implement a strategy?

a. middle managers
b. top managers
c. executive
d. senior
ANS: a
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
97. Which of the following is made up primarily of external factors?

a. strengths
b. threats
c. mission statement
d. weaknesses
ANS: b
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
98. Guideposts by which managers define the organization’s desired performance are
called ________.
a. mission
b. standards
c. opportunities
d. objectives
ANS: d
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
99. A primary ________ of eBay is being the world’s largest online auction site.
b. vision
c. competitive differentiation
d. objective
ANS: c
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
100. When Capital One Financial utilized its extensive database to customize its credit
card operation, the company was in the ________ phase of planning.
a. monitoring
b. vision
c. implementation
d. decision making
ANS: c
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
101. Serguis is a member of his firm’s strategic planning team. He has identified several
untapped markets that exist in other countries. His observation should be listed as
a(n) ________.
a. opportunity
b. weakness
c. strength
d. threat
ANS: a
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
102. A(n) ________ is a structured grouping of people working together to achieve

common goals.
a. system
b. span of management
c. chain of command
d. organization
ANS: d
DIF: easy
LO: 7.7
PAGE: 108
AACSB: Analytic
103. Chau-Lee is the owner-manager of a 24-hour convenience store. When he first

opened the business, he employed only four people, and it was easy to manage the
store through informal means. The store experienced rapid growth and is now a
six-unit chain. Chau-Lee is now trying to manage 30 employees and coordinate
operations in the same manner as when he first opened the business. He is frustrated
and feels that his business is “out of control.” What Chau-Lee needs is ________.
a. fewer stores
b. more employees
c. a formal organization structure
d. an updated inventory system
ANS: c
DIF: easy
LO: 7.7
PAGE: 108
AACSB: Analytic
104. A(n) __________ can help clarify the structure of a firm.

b. chain of command
c. contingency plan
d. organization chart
ANS: d
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
105. What is the first step in the organizing process?
a. Coordinate activities of different groups and individuals.
b. Assign activities to specific positions and people and allocate necessary resources.
c. Determine specific work activities necessary to implement plans and achieve
objectives.
d. Group work activities into a logical pattern or structure.
ANS: c
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
106. As a company grows, what happens to its organizational structure?

a. it becomes more complex
b. it uses a product departmentalization
c. it becomes easier to understand
d. it uses a functional departmentalization
ANS: a
DIF: easy
LO: 7.7
PAGE: 108
AACSB: Analytic
107. Organization charts are the visual indication of a firm’s ________.

a. management team for each department
b. job positions and functions
c. informal relationships within the organization
d. formal relationships with suppliers and customers
ANS: b
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
108. Organizational structuresthat are based on the goods and services a company offers
are usually departmentalized by ________.
a. product
b. geography
c. function
d. process
ANS: a
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
109. Guadalupe’s firm is divided into work units representing human resources,
marketing, production, and finance. This is known as ________ departmentalization.
a. product
b. geographic
c. functional
d. process
ANS: c
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
110. Hewlett Packard (HP)is subdivided by its different lines (such as laptops, desktops,
mobile devices, printers, and servers). HP is departmentalized by ________.
a. process
b. function
c. product
d. customer
ANS: c
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
111. Leticia is reorganizing the sales force for her wholesale office-supply business. She
has decided to divide the sales force into three groups: one specializing in
educational sales, a second on government offices, and a third focusing on business
customers. Which form of departmentalization is Leticia using?
a. geographic
b. customer
c. process
d. function
ANS: b
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
112. The process of dividing work activities into units is known as ________.
a. organizational management
b. programming structure
c. streamline management
d. departmentalization
ANS: d
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
113. Which type of departmentalization organizes work units according to business
functions?
a. process
b. geography
c. product
d. function
ANS: d
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
114. American River Furniture Manufacturing’s departments include cutting, staining,

varnishing, drilling, shaping, and assembling. These departments are based on
________.
a. process
b. product
c. function
d. customer
ANS: a
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
115. Compared to top-level managers, first-line managers have what span of control?
a. more narrow
b. wider
c. depends on the organization
d. cannot determine with this information
ANS: b
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
116. A company that retains decision making at the top is known as:
a. centralized
b. programmed
c. independent
d. autocratic
ANS: a
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
117. The set of relationships that indicates who gives directions to whom and who reports
to whom is known as the ________.
a. hierarchy of organizational objectives
b. span of management
c. organization chart
d. chain of command
ANS: d
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
118. Which of the following forms of organization is commonly used in medium- and
large-sized firms?
a. committee organization
b. line organization
c. line-and-staff organization
d. matrix organization
ANS: c
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
119. A company that is based on a direct flow of authority from the top executive to
subordinates is known as a ________ organization.
a. matrix
b. functional
c. line
d. line-and-staff
ANS: c
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
120. Malita’s company has evolved from a line structure to a line-and-staff structure. The
production department would be classified as ________.
a. staff
b. matrix
c. decentralized
d. line
ANS: d
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
121. Which of the following job titles is an example of a staff position?

a. Director of Engineering
b. Chief Executive Officer
c. Production Vice-President
d. Director of Marketing
ANS: a
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
122. The matrix organization is also frequently referred to as ________.

a. line management
b. chain of command
c. project management
d. team organization
ANS: c
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
123. Ian wonders what type of organizational structure is best suited for his company, a
medium-sized manufacturing firm servicing the electronics industry. In addition to
its normal product lines, the company occasionally produces special products that
require the cooperation of a variety of personnel from many departments. What form
of organizational structure is best suited for this operation?
a. matrix organization
b. informal organization
c. functional organization
d. line organization
ANS: a
DIF: easy
LO: 7.7
PAGE: 108
AACSB: Analytic
124. A local bookstore uses an organizational structure in which authority and
responsibility are jointly held by the entire group rather than by a single manager.
This company is using a ________ organizational structure.
a. line-and-staff
b. committee
c. matrix
d. functional
ANS: b
DIF: easy
LO: 7.7
PAGE: 108
AACSB: Analytic
TRUE/FALSE
125. Conceptual skills are especially important for supervisors since they develop
long-range plans for the future direction of their organizations.
ANS: F
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
126. The principles of management apply to both Wal-Mart and United Way.
ANS: T
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
127. First-line managers belong to the second-tier, or middle management.
ANS: F
DIF: easy
LO: 7.1
PAGE: 100
AACSB: Analytic
128. A team leader at a department in a retail chain store would be classified as

supervisory management.
ANS: T
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
129. Middle managers develop detailed plans and procedures to implement the firm’s
strategic plans.
ANS: T
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
130. Team leaders and section chiefs are typically part of middle management.
ANS: F
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
131. Top managers devote most of their time to developing long-range plans for their
organizations.
ANS: T
DIF: medium
LO: 7.1
PAGE: 100
AACSB: Analytic
132. Supervisors are near the top of the management pyramid.
ANS: F
DIF: easy
LO: 7.1
PAGE: 100
AACSB: Analytic
133. Autocratic leadership includes subordinates in the decision-making process.
ANS: F
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
134. Great leaders do not share the same qualities.

ANS: T
DIF: easy
LO: 7.2
PAGE: 102
AACSB: Analytic
135. A willingness to experiment is usually too risky for effective leadership.
ANS: F
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
136. Studies indicate that free-rein leadership is the most effective.
ANS: F
DIF: easy
LO: 7.2
PAGE: 102
AACSB: Analytic
137. Autocratic is a leadership style that adjusts in accordance with the situation.
ANS: F
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
138. Empowerment is an important part of democratic leadership.
ANS: T
DIF: easy
LO: 7.2
PAGE: 102
AACSB: Analytic
139. Democratic leaders give their subordinates the authority to make all decisions.
ANS: F
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
140. Free-rein leaders believe in minimal communication since employees are

empowered to make all decisions.
ANS: F
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
141. A company’s vision should include flexibility.
ANS: T
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Ethics
BLOOM’S: Application
142. Jordan believes that close supervision of employees stifles creativity, so he allows
his employees to make most of their own decisions. Jordan is an example of a
free-rein leader.
ANS: T
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
143. Managers generally continue to exhibit one leadership style throughout the duration
of their employment.
ANS: F
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
144. Free-rein leaders allow subordinates to make most of the decisions and communicate
with employees when situations arise.
ANS: T
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
145. Experts agree that the democratic leadership style is the best style to use.
ANS: F
DIF: medium
LO: 7.2
PAGE: 102
AACSB: Analytic
146. In a company with a strong corporate culture, everyone knows and supports the same
principles, beliefs, and values.
ANS: T
DIF: easy
LO: 7.3
PAGE: 103
AACSB: Analytic
147. Corporate cultures remain constant throughout the course of a company’s existence.
ANS: F
DIF: easy
LO: 7.3
PAGE: 103
AACSB: Analytic
148. The corporate culture of an organization is generally shaped by employees rather

than managers.
ANS: F
DIF: easy
LO: 7.3
PAGE: 103
AACSB: Analytic
149. Corporate culture is typically shaped by those who founded and developed the
company and those who succeed them.
ANS: T
DIF: easy
LO: 7.3
PAGE: 103
AACSB: Analytic
150. New Target employees learn during training that they are referred to as team
members rather than workers, and that customers are called guests. This is an
example of preserving corporate culture.
ANS: T
DIF: easy
LO: 7.3
PAGE: 103
AACSB: Analytic
151. Corporate culture often changes to meet new demands in the business environment.
ANS: T
DIF: medium
LO: 7.3
PAGE: 103
AACSB: Analytic
152. A trend toward decentralization has pushed decision making down to operating
employees.
ANS: T
DIF: medium
LO: 7.4
PAGE: 104
AACSB: Analytic
153. Decision making involves assessing the results of a solution.
ANS: T
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
154. The process of recognizing a problem or opportunity is called delegation.
ANS: F
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
155. Delegation leads to unhappier employees.
ANS: F
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
156. Span of management is the number of employees a manager supervises.

ANS: T
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
157. First-line managers have a narrow span of management.
ANS: F
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
158. Effective planning can help a business avoid costly mistakes.
ANS: T
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
159. Planning involves anticipating future events and conditions.
ANS: T
DIF: easy
LO: 7.4
PAGE: 104
AACSB: Analytic
160. An auto parts store establishes a policy requiring that customer service
representatives respond to Web site e-mails within three business days. This policy
is a result of the company’s operationalplanning.
ANS: T
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
161. Tactical planning is the primary responsibility of middle managers and supervisors.
ANS: T
DIF: easy
LO: 7.5
PAGE: 105
AACSB: Analytic
162. Tactical planning involves current and near-term activities required to implement
companywide strategies.
ANS: T
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
163. The planning process is the responsibility of managers, not general employees.
ANS: F
DIF: easy
LO: 7.5
PAGE: 105
AACSB: Analytic
164. Contingency planning generally falls under the responsibility of middle

management.
ANS: F
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
165. Managers engage in planning on a situational basis. It’s not an everyday activity.
ANS: F
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
166. Strategic planning entails developing and implementing tactics in specific functional
areas.
ANS: F
DIF: medium
LO: 7.5
PAGE: 105
AACSB: Analytic
167. CEOs spend most of their time on strategic planning.
ANS: T
DIF: easy
LO: 7.5
PAGE: 105
AACSB: Analytic
168. Before developing a mission statement, a company must determine their current or
potential position in the marketplace.
ANS: F
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
169. Product innovation is an example of competitive differentiation.
ANS: T
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
170. SWOT is an acronym for strategies, weaknesses, opportunities, and teamwork.
ANS: F
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
171. “Lack of financial stability” would be identified in a company’s SWOT analysis as a
weakness.
ANS: T
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
172. Mission statements are generally no longer than one or two sentences.
ANS: T
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
173. A SWOT analysis is set in stone and serves as a constant reminder of a company’s
strengths and continuing threats.
ANS: F
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
174. Mission statements are guideposts by which managers define the organization’s
desired performance.
ANS: F
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
175. One purpose of a company’s vision is to differentiate itself from its competitors.
ANS: T
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
176. Managers at Google encourage employees to make most of their own decisions. This
is an example of free-rein leadership.
ANS: T
DIF: medium
LO: 7.6
PAGE: 106
AACSB: Analytic
177. The first step in the organizing process is to group work activities in a logical pattern
or structure.
ANS: F
DIF: easy
LO: 7.7
PAGE: 108
AACSB: Analytic
178. As a firm grows, its organizational structure will often become more complex.
ANS: T
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
179. The basic purpose of directing is to evaluate the success of the planning function.
ANS: F
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
180. Departmentalization is the process of dividing work activities into units within the
organization.
ANS: T
DIF: easy
LO: 7.7
PAGE: 108
AACSB: Analytic
181. Not-for-profit organizations generally avoid organizing through formal structures.
ANS: F
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
182. The directing function might include training and retraining employees, establishing
work schedules, and monitoring progress.
ANS: T
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
183. Work organized by the different types of goods and services is called product
departmentalization.
ANS: T
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
184. One disadvantage of a matrix organization is that employees may be confused and
frustrated in reporting to two bosses.
ANS: T
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
185. Firms organized around business functions such as finance, marketing, and
production have process departmentalization.
ANS: F
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
186. Organizing involves the process of logically classifying tasks that will be assigned to
employees.
ANS: T
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
187. A single company will follow only one organizational scheme.
ANS: F
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
188. In a line organization, the staff manager has direct control over functions like
production and marketing.
ANS: F
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
189. In an organization, authority and responsibility tend to move downward, while

accountability moves upward.
ANS: T
DIF: easy
LO: 7.7
PAGE: 108
AACSB: Analytic
190. In a committee organization, the ultimate responsibility is still held by one

individual.
ANS: F
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
191. In a line-and-staff organization, line departments participate directly in

decision-making while staff departments provide technical support.
ANS: T
DIF: medium
LO: 7.7
PAGE: 108
AACSB: Analytic
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or by assuming the right of being the exclusive purchaser, at his own
price, to sell again at an exorbitant price when he had become the
sole possessor. They say also that, forestalling everything, their czar
made himself the sole merchant trading from European Russia to
China and Siberia, as well as the sole mint-master, the sole trader in
tobacco, soap, talc, pitch, and tar; that having also declared himself
the only public-house keeper in an empire where drunkenness held
sovereign sway, this monopoly annually brought back into his coffers
all the pay that had been disbursed from them.
When, in 1716, he wished to defray the expenses of his second
journey to Holland, and at the same time avoid being a loser by the
rate of exchange, what was the plan which he adopted? He laid
hands on all the leather intended for exportation, which he paid for at
a maximum fixed by himself, and then exported it on his own
account, the proceeds being made payable in Holland, where it was
purchased by foreigners.
It is thus that many of his contemporaries explain the riches of a
prince who was the principal manufacturer and merchant of a great
empire—the creator, the superintendent of its arts. In his eyes, his
subjects were nothing more than workmen, whose labours he
prompted, estimated, and rewarded according to his own pleasure;
he reserved to himself the sale of the produce of their industry, and
the immense profits which he thus gained he employed in doubling
that produce.
What a singular founder of commerce in his empire was a
monarch who drew it all within his own sphere and absorbed it in
himself! We may, however, be allowed to believe that he sometimes
became a merchant and manufacturer, as he became a soldier and
a sailor, for the sake of example, and that the obstinate repugnance
of his ignorant subjects to many branches of industry and commerce
long compelled him to retain the monopoly of them, whether he
would or not. It is curious to remark how his despotism recoiled upon
himself when he interfered with matters so impatient of arbitrary
power as trade and credit. Soloviev is an example of this. Assisted
by the privileges which Peter had granted to him, that merchant
succeeded in establishing at Amsterdam the first commercial
Russian factory that had ever been worthy of notice; but in 1717,
when the czar visited Holland for the second time, his greedy
courtiers irritated him against their fellow countryman. Soloviev had
not chosen to ransom himself from the envy which his riches
inspired. They therefore slandered him to their sovereign; he was
arrested and sent back to Russia; his correspondents lost their
advances; confidence was ruined, and the autocrat, by confiscating
this source of riches, destroyed his work with his own hand. Yet he
had a glimpse of something like free-trade principles. He would
never impose any higher penalty on smuggling than confiscation.
“Commerce,” he said, “is like a timid maiden, who is scared by rough
usage, and must be won by gentle means. Smuggle who will, and
welcome. The merchant who exposes himself to the chance of
having his goods confiscated runs a greater risk than my treasury. If
he cheats me nine times and I catch him the tenth, I shall be no loser
by the game.”
The Church and the Aristocracy
Peter had never been at any pains to conceal his indifference or

contempt for the national church; but it was not until that culminating
point in his history at which we are now arrived that he ventured to
accomplish his design of abolishing the office of patriarch. He had
left it unfilled for one-and-twenty years, and he formally suppressed it
after the conclusion of the Peace of Nystad; when heaven had
declared in his favour, as it seemed to the multitude, who always
believe the Deity to be on the strongest side. In the following year,
however, the synod, in spite of Theophanes, its president, whom we
may consider as his minister for religious affairs, dared to desire that
a patriarch might be appointed. But bursting into a sudden passion
Peter started up, struck his breast violently with his hand and the
table with his cutlass, and exclaimed, “Here, here is your patriarch!”
He then hastily quitted the room, casting, as he departed, a stern
look upon the panic-struck prelates.
Of the two conquests which Peter consummated about the same
time—that over Sweden and that by which he annihilated the
independence of the Russian clergy—it is hard to say which was the
more gratifying to his pride. Someone having communicated to him
the substance of a paper in the English Spectator, in which a
comparison was made between himself and Louis XIV, entirely to his
own advantage, he disclaimed the superiority accorded to him by the
essayist, save in one particular: “Louis XIV,” said he, “was greater
than I, except that I have been able to reduce my clergy to
obedience, while he allowed his clergy to rule him.”
Soon after the abolition of the patriarchate, Peter celebrated the
marriage of Buturlin, the second kniaz papa of his creation, with the
widow of Sotov, his predecessor in that mock dignity. The
bridegroom was in his eighty-fifth year, and the bride nearly of the
same age. The messengers who invited the wedding guests were
four stutterers; some decrepit old men attended the bride; the
running footmen were four of the most corpulent fellows that could
be found; the orchestra was placed on a sledge drawn by bears,
which being goaded with iron spikes made with their horrid roarings
an accompaniment suitable to the tunes played on the sledge. The
nuptial benediction was given in the cathedral by a blind and deaf
priest with spectacles on. The procession, the marriage, the wedding
feast, the undressing of the bride and bridegroom, the ceremony of
putting them to bed were all in the same style of repulsive
buffoonery. Among the coarse-minded courtiers this passed for an
ingenious derision of the clergy.
The nobles were another order in the state whose resistance,
though more passive than that of the clergy, was equally insufferable
to the czar. His hand had always been heavy against that stiff-
necked race. He had no mercy upon their indolence and superstition,
no toleration for their pride of birth or wealth. As landed proprietors
he regarded them merely as the possessors of fiefs, who held them
by the tenure of being serviceable to the state. Such was the spirit of
the law of 1715 relative to inheritances, which till then had been
equally divided; but from that date the real estate was to descend to
one of the males, the choice of whom was left to the father, while
only the personal property was to pass to the other children. In this
respect the law was favourable to paternal authority and aristocracy;
but its real purpose was rendered obvious by other clauses. It
decreed that the inheritors of personal property should not be
permitted to convert it into real estate until after seven years of
military service, ten years of civil service, or fifteen years’ profession
of some kind of art or of commerce. Nay, more, if we may rely on the
authority of Perry, every heir of property to the amount of five
hundred roubles, who had not learned the rudiments of his native
language or of some ancient or foreign language, was to forfeit his
inheritance.
The great nobles had ere this been shorn of their train of boyar
followers, or noble domestics, by whom they were perpetually
attended, and these were transformed into soldiers, disciplined in the
European manner. At the same time several thousand cavalry were
formed out of the sons of the priests, who were free men, but not
less ignorant and superstitious than their fathers. Against the
inertness of the nobles, too, Peter made war even in the sanctuary of
their families. Every one of them between the ages of ten and thirty,
who evaded an enlistment which was termed voluntary, was to have
his property confiscated to the use of the person by whom he was
denounced. The sons of the nobles were arbitrarily wrested from
them; some were placed in military schools; others were sent to
unlearn their barbarian manners and acquire new habits and
knowledge among polished nations; many of them were obliged to
keep up a correspondence with the czar on the subject of what they
were learning; on their return, he himself questioned them, and if
they were found not to have benefited by their travels, disgrace and
ridicule were their punishment. Given up to the czar’s buffoon, they
became the laughing-stocks of the court, and were compelled to
perform the most degrading offices in the palace. These were the
tyrannical punishments of a reformer who managed that he might
succeed in doing violence to nature by beginning education at an
age when it ought to be completed, and by subjecting grown-up men
to chastisements which would scarcely be bearable for children.
It is with reason that Mannstein reproaches Peter with having
expected to transform, by travels in polished countries, men who
were already confirmed in their habits, and who were steeped to the
core in ignorance, sloth, and barbarism. “The greatest part of them,”
he says, “acquired nothing but vices.” This it was which drew upon
Peter a lesson from his sage; for such was the appellation which he
gave to Dolgoruki. That senator having pertinaciously, and without
assigning any reason, maintained that the travels of the Russian
youth would be useless, made no other reply to an impatient and
passionate contradiction from the despot than to fold the ukase in
silence, run his nail forcibly along it, and then desire the autocrat to
try whether, with all his power, he could ever obliterate the crease
that was made in the paper.
At last, by his ukase of January 24th, 1722,
[1722 a.d.] Peter annihilated the privileges of the old
Russian aristocracy, and under the specious
pretext of making merit the only source of social distinction, he
created a new order of nobility, divided into eight military and as
many civil grades, all immediately and absolutely dependent on the
czar. The only favour allowed to the old landed aristocracy was that
they were not deprived of the right of appearing at court; but none of
them could obtain the rank and appointments of an officer, nor, in
any company, the respect and distinctions exclusively belonging to
that rank, until they had risen to it by actual service. Such was the
fundamental principle of that notorious system called the tchin;[44]
and plausible as it may appear upon a superficial view, it has been
fruitful of nothing but hideous tyranny, corruption, chicanery, and
malversation. The modern nobility of Russia is in fact but a vile
bureaucracy. The only thing truly commendable in the ukase of 1722
is that it degrades to the level of the rabble every nobleman
convicted of crime and sentenced to a punishment that ought to
entail infamy. Previously, as the reader has already seen, a
nobleman might appear unabashed in public, and claim all the
privileges of his birth, with his back still smarting from the
executioner’s lash.
Commerce with the East

Peter had always encountered great difficulty in attracting to St.
Petersburg the commerce of central Russia, which the merchants
obstinately persisted in throwing away upon Archangel. Yet at St.
Petersburg they enjoyed several privileges, and a milder climate
allowed of two freights a year, while at Archangel the ice would admit
of only one. To this must be added the advantage of a calmer sea, a
better port, lower duties, a much shorter distance, and a much larger
concourse of purchasers; but no persuasion could make the
Russians abandon the old routine, until at last Peter treated them
like ignorant and stubborn children, to whom he would do good in
spite of themselves. In 1722 he expressly prohibited the carrying of
any goods to Archangel but such as belonged to the district of that
government. This ordinance at first raised a great outcry among the
traders, both native and foreign, and caused several bankruptcies;
but the merchants, accustoming themselves by degrees to come to
St. Petersburg, at last found themselves gainers by the change.
The trade with the Mongols and Chinese had been jeopardised by
the extortions of Prince Gagarin, the governor of Siberia, and by acts
of violence committed by the Russians in Peking and in the capital of
Contaish, the prince pontiff of a sect of dissenters from Lamaism. To
check the growth of this evil, Peter sent Ismailov, a captain in the
guards, to Peking, with presents to the emperor, among which were
several pieces of turnery, the work of his own hands. The negotiation
was successful; but the Russians soon lost the fruits of it by fresh
acts of indiscretion, and were expelled from China by order of Kam-
hi. The Russian court alone retained the right of sending a caravan
every three years to Peking; but that right again was subsequently
lost in consequence of new quarrels. The court finally renounced its
exclusive privilege, and granted the subjects leave to trade freely on
the Kiakhta.
WAR WITH PERSIA (1722-1724 A.D.)
Peter’s attention had long been directed to the Caspian Sea with a
view to making it more extensively subservient to the trade of Russia
with Persia and central Asia, which as yet had been carried on at
Astrakhan alone, through the medium of Armenian factors. Soon
after the Peace of Nystad had left the czar free to carry his arms
towards the East, a pretext and an opportunity were afforded him for
making conquests on the Caspian shores. The Persian Empire was
falling to pieces under the hand of the enervated and imbecile
Husain Shah. The Lesghiians, one of the tributary nations that had
rebelled against him, made an inroad into the province of Shirvan,
sacked the city of Shemakha, put the inhabitants to the sword,
including three hundred Russian traders, and plundered Russian
property to the amount of 4,000,000 roubles. Peter demanded
satisfaction; the shah was willing to grant it, but pleaded his helpless
condition, and entreated the czar to aid him in subduing his
rebellious subjects.
This invitation was promptly accepted. Peter set out for Persia on
the 15th of May, 1722, his consort also accompanying him on this
remote expedition. He fell down the Volga as far as the city of
Astrakhan, and occupied himself in examining the works for the
canals that were to join the Caspian, Baltic, and White seas, whilst
he awaited the arrival of his forces and material of war. His army
consisted of twenty-two thousand foot, nine thousand dragoons, and
fifteen thousand Cossacks, besides three thousand sailors on board
the several vessels, who, in making a descent, could do the duty of
soldiers. The cavalry marched by land through deserts, which are
frequently without water; and beyond those deserts, they were to
pass the mountains of Caucasus, where three hundred men might
keep a whole army at bay; but Persia was in such anarchy that
anything might be attempted.
The czar sailed above a hundred leagues southward from
Astrakhan, as far as the small fortified town of Andreeva, which was
easily taken. Thence the Russian army advanced by land into the
province of Daghestan; and manifestoes in the Persian and Russian
language were everywhere dispersed. It was necessary to avoid
giving any offence to the Ottoman Porte, which besides its subjects,
the Circassians and Georgians, bordering on this country, had in
these parts some considerable vassals, who had lately put
themselves under its protection. Among them, one of the principal
was Mahmud D’Utmich, who styled himself sultan, and had the
presumption to attack the troops of the emperor of Russia. He was
totally defeated, and the public account says “his country was made
a bonfire.”
In the middle of September, Peter reached Derbent, by the
Persians and Turks called Demir-kapu, i.e. Iron Gate, because it had
formerly such a gate towards the south; it is a long narrow town,
backed against a steep spur of the Caucasus; and its walls, at the
other end, are washed by the sea, which, in stormy weather, is often
known to break over them. These walls may be justly accounted one
of the wonders of antiquity; they were forty feet high and six broad;
flanked with square towers at intervals of fifty feet. The whole work
seemed one single piece, being built of a kind of brown free-stone,
and a mortar of pounded shells, the whole forming a mass harder
than marble itself; it was accessible by sea, but, on the land side,
seemed impregnable. Near it were the ruins of an old wall, like that
of China, unquestionably built in times of the earliest antiquity; it was
carried from the Caspian to the Black Sea, and probably was a
rampart thrown up by the ancient kings of Persia against the
numerous barbarian hordes dwelling between those two seas. There
were formerly three or four other Caspian gates at different
passages, and all apparently built for the same end; the nations
west, east, and north of this sea having ever been formidable
barbarians; and from these parts principally issued those swarms of
conquerors which subdued Asia and Europe.
On the approach of the Russian army, the governor of Derbent,
instead of standing a siege, laid the keys of the city at the emperor’s
feet—whether it was that he thought the place not tenable against
such a force, or that he preferred the protection of the emperor Peter
to that of the Afghan rebel Mahmud. Thus the army quietly took
possession of Derbent, and encamped along the sea-shore. The
usurper Mahmud, who had already made himself master of a great
part of Persia, had neglected nothing to be beforehand with the czar
and hinder him from getting into Derbent; he raised the neighbouring
Tatars, and hastened thither himself; but Derbent was already in the
czar’s hands.
Peter was unable to extend his conquests
[1723 a.d.] further, for the vessels with provisions, stores,
horses, and recruits had been wrecked near
Astrakhan; and as the unfavourable season had now set in he
returned to Moscow and entered it in triumph (January 5th, 1723),
though he had no great reason to boast of the success of his ill-
planned expedition.
Persia was still divided between Husain and the usurper Mahmud;
the former sought the support of the emperor of Russia; the latter
feared him as an avenger who would wrest from him all the fruits of
his rebellion. Mahmud used every endeavour to stir up the Ottoman
Porte against Peter. With this view, he sent an embassy to
Constantinople; and the Daghestan princes, under the sultan’s
protection, having been dispossessed of their dominions by the arms
of Russia, solicited revenge. The Divan were also under
apprehensions for Georgia, which the Turks considered part of their
dominions. The sultan was on the point of declaring war, when the
courts of Vienna and Paris diverted him from that measure. The
emperor of Germany made a declaration that if the Turks attacked
Russia he should be obliged to join in its defence; and the marquis
de Bonac, ambassador from France at Constantinople, seconded
the German menaces; he convinced the Porte that their own interest
required them not to suffer the usurper of Persia to set an example
of dethroning sovereigns, and that the Russian Empire had done no
more than the sultan should have done.
During these critical negotiations, the rebel Mahmud had
advanced to the gates of Derbent, and laid waste all the
neighbouring countries, in order to distress the Russians. That part
of ancient Hyrcania, now known by the name of Ghilan, was not
spared, which so irritated the people that they voluntarily put
themselves under the protection of the Russians. Herein they
followed the example of the shah himself, who had sent to implore
the assistance of Peter the Great; but the ambassador was scarcely
on the road ere the rebel Mahmud seized on Ispahan, and the
person of his sovereign. Thamaseb, son of the captive shah,
escaped, and getting together some troops fought a battle with the
usurper. He was not less eager than his father in urging Peter the
Great to protect him, and sent to the ambassador a renewal of the
instructions which the shah Husain had given.
Though this Persian ambassador, named Ismail Beg, was not yet
arrived, his negotiation had succeeded. On his landing at Astrakhan,
he heard that General Matufkin was on his march with fresh troops
to reinforce the Daghestan army. The town of Baku, from which the
Persians called the Caspian Sea, the sea of Baku, was not yet
taken. He gave the Russian general a letter to the inhabitants,
exhorting them, in his master’s name, to submit to the emperor of
Russia; the ambassador continued his journey to St. Petersburg, and
General Matufkin went and sat down before the city of Baku. The
Persian ambassador reached the czar’s court at the same time as
the news of the surrender of that city (August, 1723).
Baku is situated near Shemakha, where the Russian factors were
massacred; and although in wealth and number of people inferior to
it, is very famous for its naphtha, with which it supplies all Persia.
Never was treaty sooner concluded than that of Ismail Beg. The
emperor Peter, desirous of revenging the death of his subjects,
engaged to march an army into Persia, in order to assist Thamaseb
against the usurper; and the new shah ceded to him, besides the
cities of Baku and Derbent, the provinces of Ghilan, Mazandaran,
and Astarabath.
Ghilan, as we have already noticed, is the southern Hyrcania;
Mazandaran, which is contiguous to it, is the country of the Mardi;
Astarabath borders on Mazandaran; and these were the three
principal provinces of the ancient kings of the Medes. Thus Peter by
his arms and treaties came to be master of Cyrus’ first monarchy;
but this proved to be but a barren conquest, and the empress Anna
was glad to surrender it thirteen years afterwards in exchange for
some commercial advantages.
So calamitous was the state of Persia that the unhappy sophy
Thamaseb wandering about his kingdom, pursued by the rebel
Mahmud, the murderer of his father and brothers, was reduced to
supplicate both Russia and Turkey at the same time, that they would
take one part of his dominions to preserve the other for him. At last it
was agreed between the emperor Peter, the sultan Achmet III, and
the sophy Thamaseb, that Russia should hold the three provinces
above mentioned, and that the Porte should have Kasbin, Tauris,
and Erivan, besides what it should take from the usurper.
LAST YEARS AND DEATH OF PETER
Peter, at his return from his Persian

[1723-1724 a.d.] expedition, was more than ever the arbiter of
the north. He openly took into his protection the
family of Charles XII, after having been eighteen years his declared
enemy. He invited to his court the duke of Holstein, that monarch’s
nephew, to whom he betrothed his eldest daughter, and from that
time prepared to assert his rights on the duchy of Schleswig-
Holstein, and even bound himself to it in a treaty which he concluded
with Sweden (February, 1724). He also obtained from that power the
title of royal highness for his son-in-law, which was a recognition of
his right to the throne, should King Frederick die without issue.
Meanwhile he held Copenhagen in awe of his fleet, and ruled there
through fear, as he did in Stockholm and Warsaw.
The state of Peter’s health now warned him that his end was near;
yet still he delayed to exercise the right of naming a successor,
which he had arrogated to himself in 1722. The only step he took
which might be interpreted as an indication of his wishes in that
respect was the act of publicly crowning his consort Catherine. The
ceremony was performed at Moscow (May 18th, 1724) in the
presence of the czar’s niece, Anna, duchess of Courland, and of the
duke of Holstein, his intended son-in-law. The manifesto published
by Peter on this occasion deserves notice; after stating that it was
customary with Christian monarchs to crown their consorts, and
instancing among the orthodox Greek emperors Basilides, Justinian,
Heraclius, and Leo the Philosopher, he goes on to say:
“It is also known how far we have exposed our own person, and
faced the greatest dangers in our country’s cause, during the whole
course of the last war, twenty-one years successively, and which, by
God’s assistance, we have terminated with such honour and
advantage, that Russia never saw a like peace, nor gained that glory
which has accrued to it by this war. The empress Catherine, our
dearly beloved consort, was of great help to us in all these dangers,
not only in the said war but likewise in other expeditions, in which,
notwithstanding the natural weakness of her sex, she voluntarily
accompanied us, and greatly assisted us with her advice, particularly
at the battle of the river Pruth against the Turks, where our army was
reduced to 22,000 men, and that of the Turks consisted of 270,000.
It was in this desperate exigency that she especially signalised a
zeal and fortitude above her sex; and to this all the army and the
whole empire can bear witness. For these causes, and in virtue of
the power which God hath given us, we have resolved, in
acknowledgment of all her fatigues and good offices, to honour our
consort with the imperial crown, which, by God’s permission, shall be
accomplished this winter at Moscow; and of this resolution we
hereby give notice to all our faithful subjects, our imperial affection
towards whom is unalterable.”
In this manifesto nothing was said of the empress’ succeeding to
the throne; but the nation were in some degree prepared for that
event by the ceremony itself, which was not customary in Russia,
and which was performed with sumptuous splendour. A
circumstance which might further cause Catherine to be looked upon
as the presumptive successor was that the czar himself, on the
coronation day, walked before her on foot, as first knight of the order
of St. Catherine, which he had instituted in 1714 in honour of his
consort. In the cathedral he placed the crown on her head with his
own hand. Catherine would then have fallen on her knees, but he
raised her up, and when she came out of the cathedral the globe and
sceptre were carried before her.
It was not long before Peter was with difficulty restrained from
sending to the block the head on which he had but lately placed the
crown. We have already mentioned that the enmity of his first wife is
said to have sprung from her jealousy of Anne de Moens, who was
for awhile the czar’s mistress, and whom, as Villebois tells us, he
had serious thoughts of raising to the throne. But she submitted to
his passion only through fear, and Peter, disgusted with her coldness
towards him, left her to follow her inclinations in marrying a less
illustrious lover. Five-and-twenty years afterwards Eudoxia was
avenged through the brother of her rival. Anne de Moens, then the
widow of General Balk, was about the person of Catherine, and the
handsome and graceful young Moens de la Croix was her
chamberlain. A closer intimacy soon arose between them, and so
unguarded were they that Villebois, who saw them together only in
public during a very crowded reception at court, says that their
conduct was such as left no doubt on his mind that the empress was
guilty. The czar’s suspicions were roused, and he set spies upon
Catherine.
The court was then at Peterhof; Prince Repnin, president of the
war department, slept not far from the czar; it was two o’clock in the
morning; all at once the marshal’s door was violently thrown open,
and he was startled by abrupt and hasty footsteps: he looked round
in astonishment; it was Peter the Great; the monarch was standing
by the bedside; his eyes sparkled with rage, and all his features were
distorted with convulsive fury. Repnin tells us that at the sight of that
terrible aspect he was appalled, gave himself up for lost, and
remained motionless; but his master, with a broken and panting
voice, exclaimed to him, “Get up! speak to me! there’s no need to
dress yourself”; and the trembling marshal obeyed.
He then learned that, but the instant before, guided by too faithful
a report, the czar had suddenly entered Catherine’s apartment; that
the crime was revealed, the ingratitude proved; that at daybreak the
empress should lose her head—that the emperor was resolved!
The marshal, gradually recovering his voice, agreed that such a
monstrous act of treachery was horrible; but he reminded his master
of the fact that the crime was as yet known to no one, and of the
impolicy of making it public; then, growing bolder, he dared to call to
recollection the massacre of the strelitz, and that every subsequent
year had been ensanguined by executions; that, in fine, after the
imprisonment of his sister, the condemning of his son to death, and
the scourging and imprisonment of his first wife, if he should likewise
cut off the head of his second, Europe would no longer look upon
him in any other light than that of a ferocious prince, who thirsted for
the blood of his subjects and even of those who were a part of
himself. Besides, he added, the czar might have satisfaction by
giving up Moens to the sword of the law upon other charges; and as
to the empress, he could find means to rid himself of her without any
prejudice to his glory.
While Repnin was thus advising, the czar, who stood motionless
before him, gazed upon him intently and wildly, and kept a gloomy
silence. But in a short time, as was the case when he was labouring
under strong emotions, his head was twisted to the left side, and his
swollen features became convulsively contracted—signs of the
terrible struggle by which he was tortured. And yet the excessive
working of his mind held his body in a state of frightful immovability.
At length, he rushed precipitately out of the chamber into the
adjoining room. For two whole hours he hastily paced it; then
suddenly entering again like a man who had made up his mind, he
said to Repnin, “Moens shall die immediately! I will watch the
empress so closely that her first slip shall cost her life!”
Moens and his sister were at once arrested. They were both
confined in the winter palace, in an apartment to which none had
admission except the emperor himself, who carried them their food.
At the same time a report was spread that the brother and the sister
had been bribed by the enemies of the country, in hopes of bringing
the empress to act upon the mind of the czar prejudicially to the
interests of Russia. Moens was interrogated by the monarch in
presence of General Uschakov; and after having confessed
whatever they pleased, he lost his head on the block (November
27th). At the same time his sister, who was an accomplice in the
crime and a favourite of Catherine, received the knout, and was
banished to Siberia; her property was confiscated; her two sons
were degraded and were sent to a great distance, on the Persian
frontier, as private soldiers.
Moens walked to meet his fate with manly firmness. He always
wore a diamond bracelet, to which was a miniature of Catherine; but,
as it was not perceived at the time of his being seized, he found
means to conceal it under his garter; and when he was on the
scaffold he confided this secret to the Lutheran pastor who
accompanied him, and under cover of his cloak slipped the bracelet
into his hand to restore it to the empress.
The czar was a spectator of the punishment of Moens from one of
the windows of the senate. The execution being over, he got upon
the scaffold, took the head of Moens by the hair, and expressed with
brutal energy how delighted he was with the vengeance he had
taken. The same day Peter had the cruelty to conduct Catherine in
an open carriage round the stake on which was fixed the head of her
unfortunate lover. He watched her countenance attentively, but
fortunately she had self-command enough not to betray her grief.
Repnin adds that, from that dreadful night till his death, Peter never
more spoke to the empress except in public, and that, in his dwelling,
he always remained separate from her.e
Peter the Great only lived to his fifty-third
[1725 a.d.] year. In spite of frequent attacks of illness and of
his calling himself an old man, the emperor
might have hoped to live yet a long while and to be able to dispose
of his great inheritance in accordance with the interests of the state.
But his days were already numbered. When Peter came to St.
Petersburg in March, 1723, on his return from Persia, he appeared in
much better health than before the campaign; in the summer of 1724
he became very weak, but in the second half of September he grew
visibly better, walked at times in his gardens, and sailed on the Neva.
On the 22nd of September he had a very severe attack; it is said that
he fell into such a state of irritation that he struck the doctors and
called them asses; afterwards he again became better, and on the
29th of September he was present at the launching of a frigate,
although he told the Dutch minister Wild that he still felt rather weak.
In spite of this he set off in the beginning of October to inspect the
Ladoga canal, against the advice of his doctor Blumentrost; then he
went to the Olonetz iron works and hammered out with his own
hands a bar of iron of the weight of three pouds;[45] from there he
went to Starya Rusa to inspect the salt works, and in the beginning
of November he went by water to St. Petersburg. But there, at a
place called Lakta, he saw that a boat coming from Kronstadt with
soldiers had run aground; he allowed no one to restrain him, but
went himself to their assistance and helped to float the boat and
save the people, standing up to his waist in the water. The attacks
were speedily renewed; Peter arrived at St. Petersburg ill and could
not regain his health; the affair of Mons also aggravated his
condition. He occupied himself but little with affairs, although he
showed himself as usual in public. On the 17th of January, 1725, the
malady increased; Peter ordered that a movable church should be
constructed near his sleeping room and on the 22nd he made his
confession and received the sacrament; his strength began to leave
him, he no longer cried out as before from the violence of the pain
but only groaned. On the 27th all criminals were pardoned who had
been condemned to death or to the galleys according to the articles
of war, excepting those guilty of the first two offences against the law
—murder and repeated robbery; the noblemen who had not
appeared at the military reviews at the appointed time were also
pardoned. On that day, at the expiration of the second hour, Peter
asked for paper and tried to write, but the pen fell out of his hand; of
that which he had written only the words “give up everything” could
be deciphered; he then ordered his daughter Anna Petrovna to be
called so that she might write under his dictation, but he could not
pronounce the words. The following day, the 28th of January, at the
beginning of the sixth hour after midnight, Peter the Great was no
more. Catherine was almost unceasingly with him, and it was she
who closed his eyes.
In terrible physical sufferings, in full recognition of the weakness of
humanity, asking for the comfort afforded by religion, died the
greatest of historical workers. We have already spoken in the proper
place of how the work of Peter was prepared by all preceding
history; how it necessarily proceeded from the same; how it was
required by the people, who by means of a tremendous revolution in
their existence and customs, by means of an extraordinary effort of
strength, had to be brought forth from their hopeless condition into a
new way, a new life. But this in nowise diminishes the greatness of
the man who in the accomplishment of so difficult an exploit lent his
mighty hand to a great nation, and by the extraordinary power of his
will strained all her forces and gave direction to the movement.
SOLOVIEV’S ESTIMATE OF PETER’S WORK
Revolutionary epochs constitute a critical time for the life of

nations, and such was the epoch of the reformation of Peter.
Complaints of the great burdens were to be heard from all sides—
and not without cause. The Russian knew no rest from recruiting:
recruiting for painful, ceaseless military service in the infantry, and
for the newly created naval service; recruiting of workmen for new
and difficult labour in distant and unattractive places; recruiting of
scholars for the schools, and of young men to be sent to study
abroad. For the army and for the fleet, for the great works and
undertakings, for the schools and the hospitals, for the maintenance
of diplomats and diplomatic bribery, money was necessary. But there
was no money in the impoverished state, and heavy taxes in money
and in kind had to be levied upon all; in necessary cases they were
deducted from the salaries; well-to-do people were ruined by the
construction of houses in St. Petersburg; everything that could be
taken was taken, or farmed out; the poor people had one object of
luxury—oak coffins; but these were confiscated by the fiscus and
sold at a high price; raskolniki (dissenters) had to pay double taxes;
the bearded had to pay for the privilege of wearing their beards.
Orders upon orders were issued; men were to seek for ores and
minerals, and for dye-stuffs; they were to tend their sheep not as
they had previously done, to dress the skins differently, to build boats
in a new way, to dare weave no narrow pieces of cloth, to take their
goods to the west instead of to the north.[46] New government
centres were created, new courts established, the people did not
know where to turn, the members of these new institutions and
courts did not know how to go about their novel duties, and official
papers were sent from one place to another.
The standing army pressed heavily on the unarmed population.
People tried to escape from the hard service and hide themselves,
but all were not successful, and cruel punishments threatened the
disobedient. Illiterate nobles were forbidden to marry. Meanwhile
beneath the new French frocks and wigs there was the old
coarseness of manners; the same want of respect for human dignity
in oneself and in others; the
same hideous drunkenness and
noisy brawling with which every
festivity was terminated. Woman
was brought into the society of
men, but she was not
surrounded with the respect due
to her sex and obligations;
pregnant women were made to
drink to excess. The members of
the highest institutions
quarrelled and abused each
other in the coarsest manner;
bribery was as bad as before;
the weak were subjected to
every violence from the strong,
and, as formerly, the noble was
permitted to oppress the moujik
(peasant), the well-born the
base-born.
But this is only one side: there
is another. The people were
A Bashkirian Woman
passing through a hard school—
the stern teacher was not
sparing in punishments for the
idle and those who violated the regulations; but the matter was not
limited to threats and punishments alone. The people were really
learning, learning not only figures and geometry, not only in Russian
and foreign schools; the people were learning the duties of citizens,
the work of citizens. At the emission of every important regulation, at
the inauguration of every great reform, the lawgiver explains why he
acts thus, why the new is better than the old. The Russians then
received such instruction for the first time; what now seems to us so
simple and within the reach of all was first learned by these people
from the edicts and manifestoes of Peter the Great.
For the first time the mind of the Russian
was awakened, his attention directed to the
great questions of political and social
organisation; whether he turned
sympathisingly or unsympathisingly to the
words and deeds of the czar was a matter
of indifference—he was obliged to think
over these words and deeds, and they were
continually there to arouse him. That which
might have ruined a decrepit society, a
people incapable of development—the
shocks of the epoch of reforms, the utter
restlessness—developed the forces of a
vigorous young nation which had been long
asleep and required a violent shock to
awaken it. And there was much to be
learned. Above was the governing senate,
the synod; everywhere was collegiate
organisation, the advantages of which were
set forth in the church statutes. Everywhere A Peasant of Little
Russia
the principle of election was introduced. The
trade guilds were withdrawn from the
jurisdiction of the local governors and given
their own independent administration. Peter’s whole system of
government was directed against the chief evils from which ancient
Russia had suffered: the immaturity of forces, the want of a public
spirit, the lack of independence of action, the absence of initiative
capacity. The former council of the czar (douma) had suffered from
all the deficiencies enumerated. Peter established the senate, to
which fidelity had to be sworn and the ukases of which had to be
obeyed as the ukases of the czar himself. Peter was not jealous of
the power created by him: he did not limit it; but on the contrary he
continually and without ceremony required that it should profit by its
importance, that it should really be a governing body. Peter’s
reproaches and rebukes to the senate were directed against its
slowness, its languor, its want of management, and its inability to
carry its decrees into immediate effect. The Russian of former times
who had received a commission from the government went about in
leading strings. He was not trusted, his smallest movement was
feared, he was swathed like a child in long detailed instructions, and
upon every fresh occasion that presented itself and was not defined
in the instructions, the grown up child required teaching. This habit of
asking for orders greatly angered Peter: “Act according to your own
consideration, how can I tell you from such a distance!” he wrote to
those who asked him for instructions. He employed the collegiate
system—whether he had met with it in the west or whether it had
been advised by Leibnitz is a matter of indifference; he employed it
everywhere as the most powerful method of training the Russian
people to unrestrained public activity. Instead of separate individuals,
institutions came to the front, and over all rose the state, the real
significance of which the people of Russia now learned for the first
time when they had to take the oath.
Having set forth the importance of the state, and demanding that
heavy sacrifices should be made, to this new divinity, himself giving
the example, he nevertheless took measures that the individual
should not be crushed, but should receive the requisite, balancing
development. The first place must here naturally be given to the
civilisation introduced by Peter, to the acquaintance with other
nations in advance of Russia. We know that before the time of Peter
the bond of the family was powerfully maintained in Russia; its
prolonged existence is easily explained by the condition of society,
which was unable to safeguard its members, and who were therefore
obliged to seek security in private associations, chief among which
was the natural blood relationship between members of the same
family or clan. The elder protected the younger, and had power over
them because they had to answer to the government for them. It was
thus in every sphere of society; the independent Russian never
presented himself alone, but always accompanied by his brothers
and nephews; to be without clan and family was equivalent to being
in the utmost poverty. It is easy to understand that the clan
association hindered the development of personality; the state could
not give to personal merit power over clan rights; jealous to the last
degree of any insult to the honour of his clan, the ancient Russian
was indifferent to his own personal honour. But by the end of the

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Complete the following using the terms listed.

2. The number of subordinates a manager supervises is referred to as the _____.

4. Determining the unique combination of a company’s abilities and approaches is

5. A(n) _____ is an organized approach to assessing a company’s internal strengths and

8. A(n) _____ is a written explanation of an organization’s business intentions and

9. A(n) _____ is a structured grouping of people working together to achieve common

10. A company that emphasizes _____ locates decision at lower levels.

12. The ________ function evaluates an organization’s performance against its

18. The act of assigning activities to subordinates is called _____.

22. Distinguish among autocratic, democratic, and free-rein leadership.

ANS:Managers use symbols, rituals, ceremonies, and stories to strengthen corporate

24. Explain the role of vision in business success.

25. Define centralization and decentralization. Provide an example.

ANS:Operational planning creates the detailed standards that guide implementation of

46. Conceptual skills are ________.

51. Leadership is most often associated with the ability to ________.

52. Autocratic leaders ________.

55. Democratic leaders ________.

61. The best style of leadership is ________.

62. An organization’s system of principles, beliefs, and values is called ________.

63. Vision should be ________ and ________.

65. Which of the following statements is incorrect regarding corporate culture?

66. Generally, which type of manager establishes the company’s vision?

71. The managerial process of assigning work to employees is called

72. Tiffany is a first-line manager at an electronics retailer. The number of employees

74. Planning helps businesses:

77. Employees thrive when they are given:

85. ________ planning involves implementing activities specified by strategic plans.

90. Tactical planning is primarily the responsibility of ________.

91. What is the first step in the strategic planning process?

96. Which managers typically implement a strategy?

97. Which of the following is made up primarily of external factors?

102. A(n) ________ is a structured grouping of people working together to achieve

103. Chau-Lee is the owner-manager of a 24-hour convenience store. When he first

104. A(n) __________ can help clarify the structure of a firm.

106. As a company grows, what happens to its organizational structure?

107. Organization charts are the visual indication of a firm’s ________.

114. American River Furniture Manufacturing’s departments include cutting, staining,

121. Which of the following job titles is an example of a staff position?

122. The matrix organization is also frequently referred to as ________.

127. First-line managers belong to the second-tier, or middle management.

128. A team leader at a department in a retail chain store would be classified as

132. Supervisors are near the top of the management pyramid.

133. Autocratic leadership includes subordinates in the decision-making process.

134. Great leaders do not share the same qualities.

135. A willingness to experiment is usually too risky for effective leadership.

136. Studies indicate that free-rein leadership is the most effective.

140. Free-rein leaders believe in minimal communication since employees are

141. A company’s vision should include flexibility.

148. The corporate culture of an organization is generally shaped by employees rather

153. Decision making involves assessing the results of a solution.

154. The process of recognizing a problem or opportunity is called delegation.

155. Delegation leads to unhappier employees.

63. Vision should be and .