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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. management
e. departmentalization
f. organization
g. delegation
h. matrix
i. span of management
j. controlling
k. decentralization
l. chain of command
m. SWOT analysis
n. contingency planning
o. nonprogrammed decision
p. autocratic leaders
q. human skills
r. mission statement
s. competitive differentiation
t. empowerment
1. _____ is the process of achieving organizational objectives through people and other resources.
2. _____ includes positions such as CEO and CFO; devotes most of their time developing long-range
plans.
3. A(n) _____ is a structured group of people working together to achieve common goals
4. _____, or project management, links employees from different parts of the organization to work
together on specific projects.
5. The ________ function evaluates an organization’s performance against its objectives.
6. A company that emphasizes _____ locates decision at lower levels.
7. A(n) _____ is an organized approach to assessing a company’s internal strengths and weaknesses and
its external opportunities and threats.
8. An organization’s system of principles, beliefs, and values is called _____.
9. A(n) _____ is a structured grouping of people working together to achieve common goals.
10. _____ is the process of dividing work activities into units within the organization.
11. The act of assigning activities to subordinates is called _____.
12. The number of subordinates a manager supervises is referred to as the _____.
13. _____ is the set of relationships that indicates who gives direction to whom and who reports to whom.
14. _____ allows a firm to resume operations quickly and smoothly after a crisis, while openly
communicating with the public.
15. People who make decisions on their own without consulting subordinates are _____.
16. Determining the unique combination of a company’s abilities and approaches is called _____.
17. A(n) _____ involves a complex and unique problem or opportunity with important consequences for
the organization.
18. A(n) _____ is a written explanation of an organization’s business intentions and aims.
19. __________ include the ability to communicate with, motivate, and lead employees to complete
assigned activities.
20. _______ is the business concept in which employees share authority, responsibility, and decision
making with their managers.
1. ANS: d DIF: MEDIUM LO: 7.1 What Is Management?

Pg. 184 AACSB: Analytic BT: K
2. ANS: b DIF: MEDIUM LO: 7.1 What is Management?
3. ANS: f DIF: MEDIUM LO: 7.8 Organizational Structures
4. ANS: h DIF: MEDIUM LO: 7.8 Organizational Structures
5. ANS: j DIF: MEDIUM LO: 7.2 Setting a Vision and Ethical Standards for the
Firm
6. ANS: k DIF: MEDIUM LO: 7.8 Organizational Structures
7. ANS: m DIF: MEDIUM LO: 7.4 The Strategic Planning Process
8. ANS: a DIF: MEDIUM LO: 7.7 Corporate Culture
9. ANS: c DIF: MEDIUM LO: 7.8 Organizational Structures
10. ANS: e DIF: MEDIUM LO: 7.8 Organizational Structures
11. ANS: g DIF: MEDIUM LO: 7.8 Organizational Structures
12. ANS: i DIF: MEDIUM LO: 7.8 Organizational Structures
13. ANS: l DIF: MEDIUM LO: 7.8 Organizational Structures
14. ANS: n DIF: MEDIUM LO: 7.3 Importance of Planning
15. ANS: p DIF: MEDIUM LO: 7.5 Managers as Leaders
16. ANS: s DIF: MEDIUM LO: 7.4 The Strategic Planning Process
17. ANS: o DIF: MEDIUM LO: 7.5 Managers as Decision Makers
18. ANS: r DIF: MEDIUM LO: 7.4 The Strategic Planning Process
19. ANS: q DIF: MEDIUM LO: 7.1 What Is Management?
20. ANS: t DIF: MEDIUM LO: 7.5 Managers as Leaders
ESSAY
21. 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 What Is Management?

22. Describe the three basic skills necessary for managerial success.
ANS:
The three basic skills are human skills, technical skills, and conceptual skills. Human skills are needed
at all levels of management and allow managers to work effectively with and through people. These
skills include leadership, motivation, and communication. Technical skills are most critical for
first-line supervisors because they interact with non-managerial employees who must operate and
explain machinery and computers. Conceptual skills are particularly important for top management
who must develop long-range plans for the future. It allows them to see the overall importance of each
function of the company.
DIF: HARD LO: 7.1 What Is Management?

Pg. 186 AACSB: Communication BT: K
23. Describe each of the management functions.
ANS:
The four management functions are planning, organizing, leading, and controlling. Planning is the
process of anticipating future events and conditions and determining courses of action for achieving
organizational objectives. Organizing is the process of blending human and material resources through
a formal structure of tasks and authority; arranging work, dividing tasks among employees, and
coordinating them to implementation of plans and accomplishment of objectives. Directing involves
guiding and motivating employees to accomplish organizational objectives. Controlling evaluates an
organization’s performance against its objectives.
DIF: MEDIUM LO: 7.1 What Is Management?
24. Explain the role of vision and ethical standards 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. Setting high ethical standards helps a firm survive and
be successful over the long term. Behaving ethically places an organization’s constituents—those to
whom it is responsible—at the top of its priorities. It also goes beyond avoiding wrongdoing to
encouraging, motivating, and inspiring employees.
DIF: MEDIUM LO: 7.2 Setting a Vision and Ethical Standards

Pg. 187 AACSB: Reflective Thinking BT: AP
25. 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: HARD LO: 7.3 Importance of Planning

26. Describe contingency planning and its two components.
ANS:
Contingency planning is preparing for unexpected events such as accidents, natural disasters, or
sudden, severe economic downturns. Contingency planning allows a firm to resume operations quickly
and smoothly after a crisis, while openly communicating with the public about the event. This
planning activity involves business continuation and public communication.
DIF: MEDIUM LO: 7.3 Importance of Planning

27. List in order the steps involved in the strategic planning process.
ANS:
The steps of strategic planning include the following: (1) define the company’s mission; (2) assess the
company’s competitive position; (3) set organizational objectives; (4) create strategies for competitive
differentiation; (5) implement the strategy into action; and, (6) evaluate results and refine the plan.
DIF: MEDIUM LO: 7.4 The Strategic Planning Process

28. 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: HARD LO: 7.4 The Strategic Planning Process

29. Describe competitive differentiation. Provide possible examples of competitive differentiation.
ANS:
Competitive differentiation is the unique combination of a company’s abilities and approaches that sets
it apart from the competition. Possible examples of competitive differentiation include product
innovation, technology, and employee motivation.
DIF: MEDIUM LO: 7.4 The Strategic Planning Process

30. Provide an example of a programmed decision and a nonprogrammed decision.
ANS:
Examples of programmed decisions include reordering office supplies, renewing a lease, and referring
to an established discount for bulk orders. Examples of nonprogrammed decisions include entering a
new market, deleting a product from the line, or developing a new product.
DIF: HARD LO: 7.5 Managers as Decision Makers
31. List the steps involved in the decision-making process.
ANS:
The decision-making process begins with recognizing a problem or opportunity, developing potential
courses of action to solve the problem, evaluating the alternatives, selecting and implementing one of
them, and assessing the outcome of the decision.
DIF: MEDIUM LO: 7.5 Managers as Decision Makers

32. Describe three personal qualities found in great leaders.
ANS:
While great leaders don’t share all of the same qualities, there are three common traits that many share.
These are empathy (the ability to imagine oneself in another’s position), self-awareness, and
objectivity in dealing with others. Other common traits found in great leaders include courage, the
ability to inspire others, passion, commitment, flexibility, innovation, and a willingness to experiment.
DIF: MEDIUM LO: 7.6 Managers as Leaders

Pg. 197 AACSB: Analytic BT: AP
33. 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: HARD LO: 7.5 Managers as Leaders

34. Provide examples of tools managers might use to reinforce corporate culture.
ANS:
Managers use symbols, rituals, ceremonies, and stories to strengthen corporate culture.
DIF: HARD LO: 7.7 Corporate Culture
35. List the major forms of departmentalization and explain how management decides which form or
forms to use.
ANS:
The five major forms of departmentalization are product, geography, customer, function, and process.
In determining which form to use, managers consider the type of product they produce, the size of
their company, their customer base, and the locations of their customers.
DIF: HARD LO: 7.8 Organizational Structures

36. 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: 7.8 Organizational Structures

37. 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: HARD LO: 7.8 Organizational Structures

MULTIPLE CHOICE
38. Management is the process of achieving ________ through people and other resources.
a. profits
b. status
c. organizational objectives
d. societal objectives
ANS: c DIF: EASY LO: 7.1 What Is Management?
39. 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 What Is Management?
40. Which level of management includes job titles such as general manager, division manager, or plant
manager?
a. staff management
b. top management
c. middle management
d. supervisory management
ANS: c DIF: MEDIUM LO: 7.1 What Is Management?
41. Jackie is a manager who spends most of her time in day-to-day decisions assigning non-managerial
employees to specific jobs. Jackie is considered a ________ manager.
a. staff
b. supervisory
c. mid-level
d. technical
42. 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
43. 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 What Is Management?
44. First-line managers interact continuously with members of the work team. Therefore, they must
possess effective ________ skills.
a. conceptual
b. technical
c. visionary
d. human
ANS: d DIF: MEDIUM LO: 7.1 What Is Management?
45. 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
Pg. 186 AACSB: Communication BT: K
46. When Carla instructs new employees on handling customer complaints, she motivates them to respond
with patience and a positive attitude. Carla has effective ________ skills.
a. conceptual
b. visionary
c. intuitive
d. human
ANS: d DIF: MEDIUM LO: 7.1What Is Management?
Pg. 186 AACSB: Communication BT: AP
47. Tate, president of Progressive Graphics, is highly respected for his ability to analyze and interpret
trends in the rapidly changing graphics industry. Tate has effective ________ skills.
a. human relations
b. technical
c. conceptual
d. supervisory
48. 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
49. Conceptual skills are ________.

a. not as important at the top management level
b. most important for supervisors
c. skills that allow a person to understand how all the pieces of an organization fit together to
accomplish its objectives
d. used to motivate, communicate, and lead other employees
ANS: c DIF: HARD LO: 7.1 What Is Management?
50. 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 What Is Management?
51. Damien is working on a project where he needs to anticipate future events and conditions, as well as
avoid costly mistakes. Damien is engaged in the ________ managerial function.
a. controlling
b. planning
c. organizing
d. directing
52. 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. planning
b. organizing
c. directing
d. controlling
53. Marcus is responsible for guiding and motivating 10 other employees to accomplish various
organizational objectives. Marcus handles the ________ managerial function.
a. planning
b. organizing
c. directing
d. controlling
54. 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. organizing
b. directing
c. controlling
d. planning
55. ________ is a perception of marketplace needs and the methods an organization can use to satisfy
them.
a. Vision
b. Strategic planning
c. Strategic management
d. The organizing function
ANS: a DIF: EASY LO: 7.2 Setting a Vision and Ethical Standards for the
Firm
56. 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: 7.2 Setting a Vision and Ethical Standards for the
Firm
57. A company’s perceptions regarding the marketplace needs and the ways a firm can satisfy them is
known as a(n) __________.
a. financial plan
b. vision
c. strategic plan
d. contingency plan
ANS: b DIF: MEDIUM LO: 7.2 Setting a Vision and Ethical Standards for the
Firm
58. 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: 7.2 Setting a Vision and Ethical Standards for the
Firm
59. Vision should be ________ and ________.

a. rigid; focused
b. rigid; broad
c. focused; flexible
d. flexible; broad
ANS: c DIF: HARD LO: 7.2 Setting a Vision and Ethical Standards for the
Firm
60. ________ planning guides the current and near-term activities required to implement overall strategies.
a. Tactical
b. Strategic
c. Contingency
d. Operational
ANS: a DIF: EASY LO: 7.3 Importance of Planning
61. 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: 7.3 Importance of Planning
62. 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. tactical
b. strategic
c. contingency
d. operational
ANS: b DIF: MEDIUM LO: 7.3 Importance of Planning
63. By implementing a needed flight schedule between Toronto and Chicago, Porter Airlines was using
________ planning to complete its goals.
a. contingency
b. strategic
c. operational
d. tactical
ANS: d DIF: MEDIUM LO: 7.3 Importance of Planning
64. Which of the following decisions was NOT directly the result of a company’s strategic planning?
a. AOL’s decision to merge with Time Warner
b. Pepsi’s decision to sell its fast-food restaurants and focus on soda and snack foods
c. The decision by Amazon.com to expand its product offerings beyond books and music
d. Jet Blue Airlines’ decision to add service to Oakland, California
65. 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: 7.3 Importance of Planning
66. When John sets deadlines for an upcoming project, he is using ________ planning.
a. operational
b. tactical
c. strategic
d. contingency
67. ________ planning involves implementing activities specified by strategic plans.

a. Financial
b. Operational
c. Contingency
d. Tactical
ANS: d DIF: EASY LO: 7.3 Importance of Planning
68. 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
69. Via Rail Canada 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
70. 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. contingency
c. strategic
d. operational
71. Top management usually spends the majority of time on ________ plans.
a. tactical
b. contingency
c. strategic
d. operational
ANS: c DIF: MEDIUM LO: 7.3 Importance of Planning
72. Tactical planning is primarily the responsibility of ________.

a. top managers
b. middle managers
c. supervisory managers
d. the CEO
73. 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: 7.4 The Strategic Planning Process
74. A written explanation of an organization’s business intentions and aims is called a(n) ________.
a. SWOT analysis
b. strategy for competitive differentiation
c. objective
d. mission statement
ANS: d DIF: EASY LO: 7.4 The Strategic Planning Process
75. 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. opportunity
b. weaknesses
c. strength
d. threat
ANS: c DIF: MEDIUM LO: 7.4 The Strategic Planning Process
76. 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
77. 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. contingency plan
c. matrix
d. SWOT analysis
ANS: d DIF: MEDIUM LO: 7.4 The Strategic Planning Process
78. 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: 7.4 The Strategic Planning Process
79. 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
80. Targets by which managers define the organization’s desired performance are called ________.
a. objectives
b. missions
c. opportunities
d. standards
81. A primary ________ of eBay is being the world’s largest online auction site.
a. mission statement
b. vision
c. competitive differentiation
d. objective
ANS: c DIF: MEDIUM LO: 7.4 The Strategic Planning Process
82. 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. implementation
c. decision making
d. vision
ANS: b DIF: MEDIUM LO: 7.4 The Strategic Planning Process
83. Which managers typically implement a strategy?

a. middle managers
b. top managers
c. executive
d. senior
84. Decisions involving simple, common, frequently occurring problems for which solutions have already
been determined are ________ decisions.
a. creative
b. standard
c. programmed
d. strategic
ANS: c DIF: EASY LO: 7.5 Managers as Decision Makers
85. Morgan is the manager of a local Circuit City and has put up signs promoting the store’s weekly sale
products. Morgan’s assignment would be classified as a ________.
a. programmed decision
b. nonprogrammed decision
c. span of management
d. matrix
ANS: a DIF: MEDIUM LO: 7.5 Managers as Decision Makers
86. McDonald’s has decided to add a pork sandwich to its menu. This is an example of a ________.
a. contingency plan
b. line organization
c. nonprogrammed decision
d. programmed decision
ANS: c DIF: MEDIUM LO: 7.5 Managers as Decision Makers
87. ABC Corp. has established a discount schedule for large-volume clients. This ________ will allow
managers to devote more time to complex issues.
a. increased sales volume
b. nonprogrammed decision
c. increased profit margin
d. programmed decision
ANS: d DIF: MEDIUM LO: 7.5 Managers as Decision Makers
88. All of the following require nonprogrammed decisions EXCEPT ________.

a. complex problems
b. unique problems
c. recurring problems
d. situations that have not occurred before
89. Luis is CEO of a new company that makes hand-held computers. He is trying to decide between using
the Windows Mobile operating system and the Palm operating system. Luis is ________.
a. creating a vision
b. developing a mission statement
c. making a nonprogrammed decision
d. making a programmed decision
90. The first step in the decision-making process is:

a. Develop alternative courses of action.
b. Evaluate alternatives.
c. Recognize the problem or opportunity.
d. Select and implement chosen alternative.
91. Heather is faced with making a decision about where to locate a store. She has researched the
advantages and disadvantages of a downtown location, a mall location, and a suburban location in a
strip mall. What should Heather do now?
a. Follow up on the effectiveness of the decision.
b. Develop potential courses of action.
c. Delay making a decision.
d. Select and implement one of her choices.
ANS: d DIF: MEDIUM LO: 7.5 Managers as Decision Makers
92. The quality control team at a steel company recently implemented a strategy to reduce product defects.
What is its next step?
a. Assess the outcome of the decision.
b. Develop a potential course of action.
c. Recognize a problem or opportunity.
d. Evaluate the alternatives.
93. Once a manager has determined the problem or opportunity, the next step in the decision-making
process is to ________.
a. decide whether the manager is facing a programmed decision or a nonprogrammed
decision
b. identify the problem
c. develop alternatives
d. evaluate alternatives
94. ________ 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: 7.6 Managers as Leaders
95. Leadership is most often associated with the ability to ________.

a. communicate well with large groups of people
b. arrange activities that have to be performed in a systematic way
c. determine the most effective course of action
d. inspire others toward high levels of achievement
ANS: d DIF: MEDIUM LO: 7.6 Managers as Leaders
96. 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: 7.6 Managers as Leaders
97. Autocratic leaders ________.
a. make decisions on their own, often without consulting others
b. believe in minimal supervision
c. are open-minded leaders
d. involve subordinates in making decisions
ANS: a DIF: MEDIUM LO: 7.6 Managers as Leaders
98. 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: 7.6 Managers as Leaders
99. Democratic leaders ________.

a. involve their subordinates in making decisions
b. let people know only what they need to know to do their jobs
c. are always the most effective leaders
d. leave all decisions to their subordinates
ANS: a DIF: MEDIUM LO: 7.6 Managers as Leaders
100. Which leadership style would allow sales personnel to participate in setting sales quotas?
a. free-rein
b. judgmental
c. democratic
d. autocratic
101. 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. judgmental
b. democratic
c. autocratic
d. free-rein
ANS: b DIF: MEDIUM LO: 7.6 Managers as Leaders
102. 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: HARD LO: 7.6 Managers as Leaders
103. Marcus believes in empowering the employees in his department. Most likely, Marcus is a(n)
________ leader.
a. autocratic
b. independent
c. task-oriented
d. democratic
ANS: d DIF: HARD LO: 7.6 Managers as Leaders
104. 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: HARD LO: 7.6 Managers as Leaders
105. The best style of leadership is ________.

a. democratic
b. dependent on employee feedback
c. dependent on the leader’s base of power
d. free-rein
106. 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: 7.7 Corporate Culture
107. Corporate culture is reinforced by all of the following factors EXCEPT ________.
a. symbols
b. rituals
c. stories
d. finances
ANS: b DIF: MEDIUM LO: 7.7 Corporate Culture
108. 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: 7.7 Corporate Culture
109. Which of the following statements is incorrect regarding corporate culture?
a. A company with strong tradition should not alter its culture.

b. Companies that grow quickly typically do not have time to create a culture.
c. The leadership style of managers, the way it communicates, and the overall work
environment influence a firm’s culture.
d. A culture is typically shaped by supervisors.
ANS: c DIF: MEDIUM LO: 7.7 Corporate Culture
110. 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: 7.8 Organizational Structures
111. What is the first step in the organizing process?

a. Determine specific work activities necessary to implement plans and achieve objectives.
b. Assign activities to specific positions and people and allocate necessary resources.
c. Coordinate activities of different groups and individuals.
d. Group work activities into a logical pattern or structure.
ANS: a DIF: HARD LO: 7.8 Organizational Structures
112. 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: HARD LO: 7.8 Organizational Structures
113. A(n) __________ can help clarify the structure of a firm.

a. chain of command
c. contingency plan
d. mission statement
ANS: b DIF: HARD LO: 7.8 Organizational Structures
114. 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
115. Organization charts are the visual indication of a firm’s ________.

a. formal relationships with suppliers and customers
b. informal relationships within the organization
c. job positions and functions
d. management team for each department
ANS: c DIF: MEDIUM LO: 7.8 Organizational Structures
116. 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: 7.8 Organizational Structures
117. Organizational structures that are based on the goods and services a company offers are usually
departmentalized by ________.
a. process
b. product
c. geography
d. function
ANS: b DIF: MEDIUM LO: 7.8 Organizational Structures
118. 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
119. 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. customer
c. function
d. product
120. 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
121. Which type of departmentalization organizes work units according to business functions?
a. product
b. function
c. geography
d. process
122. Canadian 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: 7.8 Organizational Structures
123. A company that is based on a direct flow of authority from the top executive to subordinates is known
as a ________ organization.
a. functional
b. line
c. matrix
d. line-and-staff
124. First-line managers have a _____ span of control than top-level managers.
a. more narrow
b. wider
c. depends on the organization
d. cannot determine with this information
125. A company that retains decision making at the top is known as:
a. independent
b. autocratic
c. centralized
d. programmed
126. 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
c. organization chart
d. chain of command
127. 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: 7.8Organizational Structures
128. 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. line
c. decentralized
d. matrix
ANS: b DIF: HARD LO: 7.8 Organizational Structures
129. 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: 7.8 Organizational Structures
130. 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. functional
b. matrix
c. committee
d. line-and-staff
ANS: c DIF: EASY LO: 7.8 Organizational Structures
131. The matrix organization is also frequently referred to as ________.

a. line management
b. chain of command
c. project management
d. team organization
132. 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
TRUE/FALSE
133. The principles of management apply to both Wal-Mart and United Way.
ANS: T DIF: MEDIUM LO: 7.1 What Is Management?

134. Supervisors are near the top of the management pyramid.
ANS: F DIF: EASY LO: 7.1 What Is Management?

135. First-line managers need to be directly involved in the day-to-day details of their firms.
ANS: T DIF: EASY LO: 7.1 What Is Management?

136. Middle managers develop detailed plans and procedures to implement the firm’s strategic plans.
ANS: T DIF: MEDIUM LO: 7.1 What Is Management?

137. Team leaders and section chiefs are typically part of middle management.
ANS: F DIF: MEDIUM LO: 7.1 What Is Management?

138. A baseball manager would be classified as middle management.

139. Top managers devote most of their time to developing long-range plans for their organizations.

Pg.185 AACSB: Analytic BT: K
140. Conceptual skills are especially important for supervisors since they develop long-range plans for the
future direction of their organizations.

141. Organizing lays the groundwork for all management functions.

142. The basic purpose of directing is to evaluate the success of the planning function.

143. The directing function is a vital responsibility of top management.

144. One purpose of a company’s vision is to differentiate itself from its competitors.
ANS: T DIF: MEDIUM LO: 7.2 Setting a Vision and Ethical Standards for the
Firm
145. Setting a high ethical standard helps motivate employees to reach their goals.
ANS: T DIF: MEDIUM LO: 7.2 Setting a Vision and Ethical Standards for the
Firm
146. A company’s vision should be focused and rigid so the company is not in danger of straying from its
path to success.
ANS: F DIF: MEDIUM LO: 7.2Setting a Vision and Ethical Standards for the
Firm
Pg. 187 AACSB: Ethics BT: AP
147. In practice, ethical decisions are clear-cut and easy to make.
ANS: F DIF: MEDIUM LO: 7.2 Setting a Vision and Ethical Standards for the
Firm
Pg. 189 AACSB: Ethics BT: K
148. Sometimes taking an ethical stand can cost a company lost revenues.
ANS: T DIF: EASY LO: 7.2 Setting a Vision and Ethical Standards for the
Firm
Pg. 189 AACSB: Ethics BT: K
149. An auto parts store establishes a policy requiring that customer service representatives respond to
website e-mails within three business days. This policy is a result of the company’s operational
planning.
ANS: T DIF: MEDIUM LO: 7.3 Importance of Planning

150. The decision of Dell to market computers “built to order” was part of its strategic planning.

151. Tactical planning involves current and near-term activities required to implement companywide
strategies.

152. Contingency planning involves the actual training of workers to respond in emergency situations.

153. Managers engage in planning on a situational basis. It’s not an everyday activity.
ANS: F DIF: MEDIUM LO: 7.3 Importance of Planning

154. Tactical planning is the primary responsibility of middle managers and supervisors.
ANS: T DIF: EASY LO: 7.3 Importance of Planning

155. CEOs spend most of their time on operational planning.
ANS: F DIF: EASY LO: 7.3 Importance of Planning

156. The planning process is the responsibility of managers, not general employees.
ANS: F DIF: EASY LO: 7.3 Importance of Planning

157. A mission statement publicizes a company’s reason for existence.
ANS: T DIF: MEDIUM LO: 7.4 The Strategic Planning Process

158. Mission statements are generally no longer than one or two sentences.

159. SWOT is an acronym for strategies, weaknesses, opportunities, and teamwork.

ANS: F DIF: MEDIUM LO: 7.4 The Strategic Planning Process
160. A SWOT analysis enables a firm to develop the best strategies for gaining a competitive advantage.

161. “Lack of financial stability” would be identified in a company’s SWOT analysis as a threat.

162. Mission statements are guideposts by which managers define the organization’s desired performance.

163. Product innovation is an example of competitive differentiation.

164. Renewing a lease is an example of a programmed decision.
ANS: T DIF: MEDIUM LO: 7.5 Managers as Decision Makers

165. Programmed decisions eliminate the time-consuming process of evaluating alternatives.

166. When the manager of a local auto repair shop decided to expand into a neighboring town, she was
making a nonprogrammed decision.

167. For nonprogrammed decisions, organizations develop rules, policies, and procedures.
ANS: F DIF: MEDIUM LO: 7.5 Managers as Decision Makers

168. Deleting a product from the line is an example of a nonprogrammed decision.

169. The first step in the decision-making process is recognition of a problem or opportunity.
ANS: T DIF: EASY LO: 7.5 Managers as Decision Makers

170. A formal decision-making process is not practical for most not-for-profit organizations.
ANS: F DIF: MEDIUM LO: 7.5 Managers as Decision Makers

171. Great leaders do not share the same qualities.
ANS: T DIF: EASY LO: 7.6 Managers as Leaders

172. A willingness to experiment is usually too risky for effective leadership.
ANS: F DIF: MEDIUM LO: 7.6 Managers as Leaders

173. Leadership involves the use of power.
ANS: T DIF: MEDIUM LO: 7.6 Managers as Leaders

174. Autocratic is a leadership style that adjusts in accordance with the situation.

175. Empowerment is an important part of democratic leadership.

176. Danielle runs a restaurant and gives her employees the authority to make on-the-spot decisions to
improve customer satisfaction. Danielle is empowering her employees.

177. Managers at Google encourage employees to make most of their own decisions. This is an example of
free-rein leadership.

Pg.199 AACSB: Reflective Thinking BT: AP
178. Democratic leaders give their subordinates the authority to make all decisions.

179. Free-rein leaders believe that employees and managers should make decisions together.

180. Free-rein leaders believe in minimal communication since employees are empowered to make all
decisions.

181. Jorge believes that close supervision of employees stifles creativity, so he allows his employees to
make most of their own decisions. Jorge is an example of a free-rein leader.

182. Managers may switch from one style of leadership to another depending on the situation.

183. Experts agree that the democratic leadership style is the best style to use.

184. The corporate culture of an organization is influenced by the leadership styles of its managers.

185. In a company with a strong corporate culture, everyone knows and supports the same principles,
beliefs, and values.
ANS: T DIF: EASY LO: 7.7 Corporate Culture

186. Managers use symbols, rituals, and ceremonies to reinforce corporate culture.

187. Corporate culture is typically shaped by those who founded and developed the company and those who
succeed them.

188. Other than improving employee morale, corporate culture has little impact on a company’s success.
ANS: F DIF: EASY LO: 7.7 Corporate Culture

189. Corporate culture often changes to meet new demands in the business environment.
ANS: T DIF: MEDIUM LO: 7.7 Corporate Culture

190. The first step in the organizing process is to group work activities in a logical pattern or structure.
ANS: F DIF: EASY LO: 7.8 Organizational Structures

191. As a firm grows, its organizational structure becomes more simplified.
ANS: F DIF: MEDIUM LO: 7.8 Organizational Structures

192. Departmentalization is the process of dividing work activities into units within the organization.
ANS: T DIF: EASY LO: 7.8 Organizational Structures

193. In deciding on a form of departmentalization, managers take into account the type of product they
produce, the size of their company, their customer base, and the location of their customers.
ANS: T DIF: MEDIUM LO: 7.8 Organizational Structures

194. Work organized by the different types of goods and services is called product departmentalization.

195. Firms organized around business functions such as finance, marketing, and production have process
departmentalization.

196. A single company may implement several different organizational schemes.

197. In an organization, authority and responsibility tend to move downward, while accountability moves
upward.
ANS: T DIF: HARD LO: 7.8 Organizational Structures

198. A trend toward decentralization has pushed decision making down to operating employees.

199. In a line organization, the staff manager has direct control over functions like production and
marketing.

200. In a committee organization, the ultimate responsibility is still held by one individual.

201. In a line-and-staff organization, staff managers have the authority to give orders to line departments.

202. One disadvantage of a matrix organization is that employees may be confused and frustrated in
reporting to two bosses.

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A NORSE GALLEY.
III.
ROMANS AND CARTHAGINIANS.
arthage, the Phenician colony in Africa, which

became so famous and powerful, was very near
the site of the modern city of Tunis. It has been a
point of interest for twenty centuries. Long after the
Phenician sway had passed away, and the Arab
and Saracen had become lords of the soil, Louis
XI, of France, in the Crusade of 1270, took
possession of the site of the ancient city, only to
give up his last breath there, and add another to
the many legends of the spot. The Spaniards
afterwards conquered Tunis and held it for a time;
and, in our own day, the French have again repossessed themselves
of the country, and may retain it long after the events of our time
have passed into history.
As soon as Rome rose to assured power, and began her course of
conquest, trouble with the powerful State of Carthage ensued. Their
clashing interests soon involved them in war, and Sicily and the
Sicilian waters, being necessary to both, soon became their battle
ground.
The Carthaginians had obtained a footing in Sicily, by assisting
Roman renegades and freebooters of all nations who had taken
refuge there. The Romans therefore passed a decree directing the
Consul, Appius Claudius, to cross over to Messina and expel the
Carthaginians who, from that strong point, controlled the passage of
the great thoroughfare, the strait of the same name. Thus
commenced the first Punic war. The Romans were almost uniformly
successful upon land, but the Carthaginians, deriving nautical skill
from their Phenician ancestors, overawed, with their fleet, the whole
coast of Sicily, and even made frequent and destructive descents
upon the Italian shores themselves.
ROMAN GALLEY AND CARTHAGINIAN GALLEY. SMALLER ROMAN GALLEY.
DRAW-BRIDGE.
CAPTURE OF THE CARTHAGINIAN FLEET BY THE ROMANS.
The Romans at this time had no ships of war; but they began the
construction of a fleet, to cope with their enemy, then the undisputed
mistress of the seas.
Just at this time a Carthaginian ship of large size was stranded
upon the Italian shores, and served as a model for the Romans,
who, with characteristic energy, in a short time put afloat a hundred
quinqueremes and twenty triremes. No particular description of these
vessels is necessary, as they were the same in general plan as
those already spoken of as in use among the Egyptians, Phenicians,
and Greeks, for centuries. Able seamen were obtained from
neighboring tributary maritime States, and bodies of landsmen were
put in training, being exercised at the oar on shore; learning to begin
and cease rowing at the signal. For this purpose platforms were
erected, and benches placed, as in a galley.
It will here be necessary to give a short account of the Roman
naval system, which was now rapidly becoming developed and
established. As has been said, they had paid no attention, before
this period, to naval affairs; and were only stirred up to do so by the
necessity of meeting the Carthaginians upon their own element.
It is true that some authorities say that the first Roman ships of
war were built upon the model of those of Antium, after the capture
of that city, A. U. C. 417; but the Romans certainly made no figure at
sea until the time of the first Punic war.
The Roman ships of war were much longer than their merchant
vessels, and were principally driven by oars, while the merchant
ships relied almost entirely upon sails.
It is a more difficult problem than one would at first sight suppose,
to explain exactly how the oars were arranged in the quadriremes
and quinqueremes of which we read. The Roman ships were
substantial and heavy, and consequently slow in evolutions, however
formidable in line. Augustus, at a much later period, was indebted to
a number of fast, light vessels from the Dalmatian coast, for his
victory over Antony’s heavy ships.
The ship of the commander of a Roman fleet was distinguished by
a red flag, and also carried a light at night. These ships of war had
prows armed with a sharp beak, of brass, usually divided into three
teeth, or points. They also carried towers of timber, which were
erected before an engagement, and whence missiles were
discharged. They employed both freemen and slaves as rowers and
sailors. The citizens and the allies of the State were obliged to
furnish a certain quota of these; and sometimes to provide them with
pay and provisions; but the wages of the men were usually provided
by the State.
The regular soldiers of the Legions at first fought at sea as well as
on land; but when Rome came to maintain a permanent fleet, there
was a separate class of soldiers raised for the sea service, like the
marines of modern navies. But this service was considered less
honorable than that of the Legions, and was often performed by
manumitted slaves. The rowers, a still lower class, were occasionally
armed and aided in attack and defence, when boarding; but this was
not usual.
Before a Roman fleet went to sea it was formally reviewed, like the
land army. Prayers were offered to the gods, and victims sacrificed.
The auspices were consulted, and if any unlucky omen occurred
(such as a person sneezing on the left of the Augur, or swallows
alighting on the ships), the voyage was suspended.
Fleets about to engage were arranged in a manner similar to
armies on land, with centre, right and left wings, and reserve.
Sometimes they were arranged in the form of a wedge, or forceps,
but most frequently in a half moon. The admiral sailed round the
fleet, in a light galley, and exhorted the men, while invocations and
sacrifices were again offered. They almost always fought in calm or
mild weather, and with furled sails. The red flag was the signal to
engage, which they did with trumpets sounding and the crews
shouting. The combatants endeavored to disable the enemy by
striking off the banks of oars on one side, or by striking the opposing
hulls with the beak. They also employed fire-ships, and threw pots of
combustibles on board the enemy. Many of Antony’s ships were
destroyed by this means. When they returned from a successful
engagement the prows of the victors were decorated with laurel
wreaths; and it was their custom to tow the captured vessels stern
foremost, to signify their utter confusion and helplessness. The
admiral was honored with a triumph, after a signal victory, like a
General or Consul who had won a decisive land battle; and columns
were erected in their honor, which were called Rostral, from being
decorated with the beaks of ships.
And now, to return to the imposing fleet which the Romans had
equipped against the Carthaginians:—
When all was ready the Romans put to sea; at first clinging to their
own shores, and practicing in fleet tactics. They found their vessels
dull and unwieldy, and therefore resolved to board the enemy at the
first opportunity, and avoid as much as possible all manœuvring.
They therefore carried plenty of grappling-irons, and had stages, or
gangways, ingeniously arranged upon hinges, which fell on board of
the enemy, and afforded secure bridges for boarding. By this means
many victories were secured over a people who were much better
seamen.
After various partial engagements with the Carthaginian fleet,
productive of no definite results, Duilius assumed command of the
Roman fleet, and steered for Mylœ, where the Carthaginians, under
Hannibal, were lying at anchor.
The latter expected an easy victory, despising the pretensions of
the Romans to seamanship, and they accordingly left their
anchorage in a straggling way, not even thinking it worth while to
form line of battle to engage landsmen.
Their one hundred and thirty quinqueremes approached in
detachments, according to their speed, and Hannibal, with about
thirty of the fastest, came in contact with the Roman line, while the
rest of his fleet was far astern. Attacked on all sides, he soon began
to repent of his rashness, and turned to fly—but the “corvi” fell, and
the Roman soldiers, advancing over the gangways, put their
enemies to the sword. The whole of the Carthaginian van division fell
into the Roman hands, without a single ship being lost on the part of
the latter. Hannibal had fortunately made his escape in time, in a
small boat, and at once proceeded to form the rest of his fleet to
resist the Roman shock. He then passed from vessel to vessel,
exhorting his men to stand firm; but the novel mode of attack, and its
great success, had demoralized the Carthaginians, and they fled
before the Roman advance; fifty more of Hannibal’s fleet being
captured.
So ended the first great naval engagement between Rome and
Carthage; bringing to the former joy and hope of future successes,
and to the latter grief and despondency.
Duilius, the Consul, had a rostral column of marble erected in his
honor, in the Roman forum, with his statue upon the top.
Hannibal was soon afterward crucified by his own seamen, in their
rage and mortification at their shameful defeat.
Slight skirmishes and collisions continued to occur, and both

nations became convinced that ultimate success could only be
obtained by the one which should obtain complete mastery of the
Mediterranean Sea. Both, therefore, made every effort; and the
dock-yards were kept busily at work, while provisions, arms, and
naval stores were accumulated upon a large scale.
The Romans fitted out three hundred and thirty, the Carthaginians
three hundred and fifty quinqueremes; and in the spring of the year
260 b. c., the rivals took the sea, to fight out their quarrel to the bitter
end.
The Roman Consuls Manlius and Regulus had their fleet
splendidly equipped, and marshaled in divisions, with the first and
second Legions on board. Following was a rear division, with more
soldiers, which served as a reserve, and as a guard to the rear of the
right and left flanks.
Hamilcar, the admiral of the opposing fleet, saw that the Roman
rear was hampered by the transports which they were towing, and
resolved to try to separate the leading divisions from them; hoping to
capture the transports, and then the other divisions in detail; with this
intention he formed in four divisions. Three were in line, at right
angles to the course the Romans were steering, and the fourth in the
order called “forceps.”
The last division was a little in the rear and well to the left of the
main body.
Having made his dispositions, Hamilcar passed down the fleet in
his barge, and reminded his countrymen of their ancestral renown at
sea, and assured them that their former defeat was due, not to the
nautical ability of the Romans, but to the rash valor of the
Carthaginians against a warlike people not ever to be despised.
“Avoid the prows of the Roman galleys,” he continued, “and strike
them amidships, or on the quarter. Sink them, or disable their oars,
and endeavor to render their military machines, on which they
greatly rely, wholly inoperative.” Loud and continuous acclamations
proclaimed the good disposition of his men, and Hamilcar forthwith
ordered the advance to be sounded, signaling the vessels of the first
division—which would be the first to engage—to retreat in apparent
disorder when they came down close to the enemy. The
Carthaginians obeyed his order to the letter, and, as if terrified by the
Roman array, turned in well simulated flight, and were instantly
pursued by both columns, which, as Hamilcar had foreseen, drew
rapidly away from the rest of the fleet. When they were so far
separated as to preclude the possibility of support, the
Carthaginians, at a given signal, put about, and attacked with great
ardor and resolution, making a desperate effort to force together the
two sides of the “forceps” in which the Romans were formed. But
these facing outward, and always presenting their prows to the
Carthaginians, remained immovable and unbroken. If the
Carthaginians succeeded in ramming one, those on each side of the
attacked vessel came to her assistance, and thus outnumbered, the
Carthaginians did not dare to board.
While the battle was thus progressing in the centre—without
decided results—Hanno, who commanded the Carthaginian right
wing, instead of engaging the left Roman column in flank, stretched
far out to sea, and bore down upon the Roman reserve, which
carried the soldiers of the Triarii. The Carthaginian reserve, instead
of attacking the Roman right column, as they evidently should have
done, also bore down upon the Roman reserve. Thus three distinct
and separate engagements were going on at once—all fought most
valiantly. Just as the Roman reserve was overpowered, and about to
yield, they saw that the Carthaginian centre was in full retreat,
chased by the Roman van, while the Roman second division was
hastening to the assistance of their sorely pressed reserve. This
sight inspired the latter with new courage, and, although they had
had many vessels sunk, and a few captured, they continued the fight
until the arrival of their friends caused their assailant, Hanno, to hoist
the signal for retreat. The Roman third division, embarrassed by its
convoy, had been driven back until quite close to the land, and while
sharp-pointed, surf-beaten rocks appeared under their sterns, it was
attacked on both sides and in front, by the nimble Carthaginians.
Vessel by vessel it was falling into the enemy’s hands, when
Manlius, seeing its critical condition, relinquished his own pursuit,
and hastened to its relief. His presence converted defeat into victory,
and insured the complete triumph of the Roman arms; so that, while
the Carthaginians scattered in flight, the Romans, towing their prizes
stern foremost, as was their custom in victory, entered the harbor of
Heraclea.
In this sanguinary and decisive battle thirty of the Carthaginian and
twenty-four of the Roman quinqueremes were sent to the bottom,
with all on board. Not a single Roman vessel was carried off by the
enemy; while the Romans captured sixty-four ships and their crews.
Commodore Parker, of the U. S. Navy, in commenting upon this
important naval action, says, “Had Hanno and the commander of the
Carthaginian reserve done their duty faithfully and intelligently upon
this occasion, the Roman van and centre must have been doubled
up and defeated, almost instantly; after which it would have been an
easy matter to get possession of the others, with the transports.
Thus the Carthaginians would have gained a decisive victory, the
effect of which would have been, perhaps, to deter the Romans from
again making their appearance in force upon the sea; and then, with
such leaders as Hamilcar, Hasdrubal and Hannibal to shape her
policy and conduct her armaments, Carthage, instead of Rome,
might have been the mistress of the world. Such are the great issues
sometimes impending over contending armies and fleets.”
As soon as the Consuls had repaired damages they set sail from
Heraclea for Africa, where they disembarked an army under
Regulus; and most of the naval force, with the prisoners, then
returned home. Regulus, however, soon suffered a defeat, and the
Roman fleet had to be despatched to Africa again, in hot haste, to
take off the scant remnant of his army. Before taking on board the
defeated Legions the fleet had another great naval battle; and
captured a Carthaginian fleet of one hundred and fourteen vessels.
With the soldiers on board, and their prizes in tow, Marcus Emilius
and Servius Fulvius, the Consuls then in command, determined to
return to Rome by the south shore of Sicily. This was against the
earnest remonstrances of the pilots, or sailing masters, “who wisely
argued that, at the dangerous season when, the constellation of
Orion being not quite past, and the Dog Star just ready to appear, it
were far safer to go North about.”
The Consuls, who had no idea of being advised by mere sailors,
were unfortunately not to be shaken in their determination; and so,
when Sicily was sighted, a course was shaped from Lylybeum to the
promontory of Pachymus. The fleet had accomplished about two-
thirds of this distance, and was just opposite a coast where there
were no ports, and where the shore was high and rocky, when, with
the going down of the sun, the north wind, which had been blowing
steadily for several days, suddenly died away, and as the Romans
were engaged in furling their flapping sails they observed that they
were heavy and wet with the falling dew, the sure precursor of the
terrible “Scirocco.” Then the pilots urged the Consuls to pull directly
to the southward, that they might have sea room sufficient to prevent
them from being driven on shore when the storm should burst upon
them. But this, with the dread of the sea natural to men
unaccustomed to contend with it, they refused to do; not
comprehending that, although their quinqueremes were illy adapted
to buffet the waves, anything was better than a lee shore, with no
harbor of refuge.
The north wind sprang up again after a little, cheering the hearts of
the inexperienced, blew in fitful gusts for an hour or more, then died
nearly away, again sprang up, and finally faded out as before. The
seamen knew what this portended. “Next came a flash of lightning in
the southern sky; then a line of foam upon the southern sea; the
roaring of Heaven’s artillery in the air above, and of the breakers on
the beach below—and the tempest was upon them!” From this time
all order was lost, and the counsels and admonitions of the pilots
unheeded. The Roman fleet was completely at the mercy of the
hurricane, and the veterans who had borne themselves bravely in
many a hard fought battle with their fellow man, now, completely
demoralized in the presence of this new danger, behaved more like
maniacs than reasonable beings. Some advised one thing, some
another; but nothing sensible was done—and when the gale broke,
out of four hundred and sixty-four quinqueremes (an immense fleet)
three hundred and eighty had been dashed upon the rocks and lost.
The whole coast was covered with fragments of wreck and dead
bodies; and that which Rome had been so many years in acquiring,
at the cost of so much blood, labor, and treasure, she lost in a few
hours, through the want of experienced seamen in command.
During the succeeding Punic wars Rome and Carthage had many
another well contested naval engagement.
Adherbal captured ninety-four Roman vessels off Drepanum, but
the dogged courage of the Roman was usually successful.
We have few details of these engagements. What the Romans
gained in battle was often lost by them in shipwreck; so that, at the
end of the first Punic war, which lasted twenty-four years, they had
lost seven hundred quinqueremes, and the vanquished
Carthaginians only five hundred.
At the time spoken of, when the Romans were fighting the
Carthaginians, the former were a free, virtuous and patriotic people.
No reverses cast them down; no loss of life discouraged them.
After a lapse of two hundred years, Marcus Brutus and Cassius
being dead, and public virtue scoffed at and fast expiring, an
arbitrary government was in process of erection upon the ruins of the
Republic.
The triumvirate had been dissolved, and Octavius and Antony, at
the head of vast armies and fleets, were preparing, on opposite
sides of the Gulf of Ambracia, to submit their old quarrel to the
arbitrament of the sword. In this emergency Antony’s old officers and
soldiers, whom he had so often led to victory, naturally hoped that,
assuming the offensive, he would draw out his legions, and, by his
ability and superior strategy, force his adversary from the field. But,
bewitched by a woman, the greatest captain of the age—now that
Cæsar and Pompey were gone—had consented to abandon a
faithful and devoted army, and to rely solely upon his fleet; which,
equal to that of Octavius in numbers, was far inferior in discipline and
drill, and in experience of actual combat.
ROMAN GALLEY.
IV.
ACTIUM. B. C. 31.
Scene VII. Near Actium. Antony’s Camp.

Enter Antony and Canidius.
Ant. Is it not strange, Canidius,

That from Tarentum and Brundusium
He could so quickly cut the Ionian Sea,
And taken in Toryne? you have heard on’t, sweet?
Cleo. Celerity is never more admired
Than by the negligent.
Ant. A good rebuke,
Which might have well becomed the best of men,
To taunt at slackness. Canidius, we
Will fight with him by sea.
Cleo. By sea! What else?
Canid. Why will my lord do so?
Ant. For that he dares us to ’t.
Enob. So hath my lord dared him to single fight.
Canid. Ay, and to wage this battle at Pharsalia,
Where Cæsar fought with Pompey: but these offers
Which serve not for his vantage he shakes off;
And so should you.
Enob. Your ships are not well mann’d;
Your mariners are muleteers, reapers, people
Ingrossed by swift impress; in Cæsar’s fleet
Are those that often have ’gainst Pompey fought;
Their ships are yare; yours, heavy; no disgrace
Shall fall you for refusing him at sea,
Being prepared for land.
Ant. By sea, by sea.
Enob. Most worthy sir, you therein throw away
The absolute soldiership you have by land;
Distract your army, which doth most consist
Of war-mark’d footmen; leave unexecuted
Your own renowned knowledge; quite forego
The way which promises assurance; and
Give up yourself merely to chance and hazard,
From firm security.
Ant. I’ll fight at sea.
Cleo. I have sixty sails, Cæsar none better.
Ant. Our overplus of shipping will we burn;
And, with the rest full mann’d, from the head of Actium,
Beat the approaching Cæsar. But if we fail,
We then can do ’t at land.
Shakespeare—Antony and Cleopatra.
hilippi, the decisive battle between Octavius and

Brutus and Cassius, took place B. C. 42. Octavius,
who afterward assumed the name of Augustus, is
very differently described by historians. It is said
that he did not fight at Philippi; and he is called a
coward by some writers, who declare that he was
always sick on critical days. Be that as it may, it
seems certain that Antony fought that battle,
although Octavius got the credit of success with
the Roman public, which soon endowed him with
every quality which goes to make the title of
“August,” which title he was the first to bear; being
the favorite of the citizens, much more by reason of
his ancestry, and by the judicious bestowal of offices and of money,
than by feats of arms.
After their victory at Philippi, Antony and Octavius divided the
empire of the world between them. But the two were devoured by an
equal ambition; and, although a common danger had for a time lulled
their mutual suspicion and dislike, and forced them to act in unison,
harmony between them could not long continue. Neither of them
wished to share empire, and each was determined that the other,
sooner or later, should be forced to renounce power, if not life itself.
The repudiation of Octavia the sister of Octavius, by Antony, added
increased fuel to the fires of hatred, and we learn from contemporary
writers that clear-sighted persons not only foresaw that a death
struggle between the two great leaders was only a question of time,
but they predicted the result, as Antony, in the midst of feasts and
other dissipation, was fast losing that activity of mind and body which
had brought him his successes, and had, in former days, gained him
the esteem and confidence of Cæsar.
While Antony was placing his laurels and his renown under the
feet of an Egyptian queen, the cool and astute Octavius, never losing
sight of the end he had in view, turned to his own aggrandizement
and elevation, in the estimation of the Roman people, Antony’s
disgraceful conduct.
The future Augustus, with the full consent of the Senate, raised
fresh legions in Italy, equipped a fleet, and made every preparation
for an enterprise upon which was to depend the control of the whole
civilized world.
As if Antony had taken pains to furnish his already too powerful
rival with the pretexts which should serve as a mask to his ambitious
views, the former caused general disgust and indignation at Rome
by dismembering the Empire—so to speak—in the interests of
Cleopatra, whom he proclaimed Queen of Cyprus, Cilicia,
Cœlesyria, Arabia and Judea; while he gave to the two sons whom
he had had by her the title of “King of Kings.” This insane defiance of
the susceptibility and pride of the Republic was one of the principal
causes of Antony’s destruction. People ceased to fear him when
they learned that he had become habitually intemperate; and they no
longer saw in him a redoubtable and successful Roman general, but
an Eastern Satrap, plunged in pleasure and debauchery.
Octavius, affecting rather contempt than anger at Antony’s
proceedings, declared war against Cleopatra only, and seemed to
regard Antony as already deprived of the power and majesty which
he had sullied in committing them to the hands of the Egyptian
queen.
Octavius could only raise on the Italian peninsula, then exhausted
by civil war, 80,000 legionaries, with 12,000 cavalry, and two
hundred and fifty ships—a small force to oppose to the five hundred
ships and 120,000 men of Antony, without counting the allied troops
which his rival was able to bring against him. But, more active and
daring than Antony, he had, with astonishing celerity, collected his
forces, and crossed the Ionian Sea, while Antony was lingering in
Samos, and indulging in all sorts of debasing pleasures, with little
thought devoted to preparation for the inevitable and momentous
struggle.
At last the imminence of the danger awoke him to the realities
surrounding him, and he brought forward his powerful fleet,
anchoring it near the promontory of Actium, in Epirus, ready to
oppose the advance of Octavius.
His ships were double in number those of the Romans, well armed
and equipped, but heavy, and badly manned, so that their
manœuvres did not compare in celerity with those of the western
fleet.
Although Octavius had fewer ships and fewer men, those which he
had were Romans; and he was fighting, ostensibly, to vindicate the
wounded pride and honor of his country, which had been trampled
under foot by Antony and a stranger queen.
The generals of Antony united in imploring him not to confide his
destiny to the uncertainty of winds and waves, but to give battle on
shore, where, they answered for it, victory would perch upon their
banners. But Antony remained deaf to their supplications, and
Cleopatra, who had joined him with seventy Egyptian ships, also
preferred to fight a naval battle; it is said, in order that, if her lover
was vanquished, she herself could more easily escape.
Boldly searching for Antony, the Roman fleet came in contact with
his, near the promontory of Actium.
On opposite shores of the bay partly formed by that promontory
lay the two armies, spectators of a conflict which was to decide their
fate, but in which they were not to join.
The wind and weather were both favorable, but the two fleets
remained for a long time opposite to each other, as if hesitating to
begin the struggle, the issue of which was fraught with such
momentous consequences.
Antony had confided the command of his left wing to Cœlius; the
centre to Marcus Octavius and Marcus Inteius; while he himself, with
Valerius Publicola, assumed command of the right wing.
The fleet of Octavius was commanded by Agrippa, to whom all the
glory of the victory is due. Octavius and his admiral at first regarded
with surprise and uneasiness the immobility of the enemy, who were
ensconced in the arm of the sea, which sheet of water contained
many shoals and reefs, and therefore, if the enemy remained there,
deprived Octavius of the advantage to be derived from the rapidity of
manœuvre of his vessels.
BATTLE OF ACTIUM.
But Antony’s officers, eager to show their prowess, proceeded to

get their left wing under way, and moved to the attack of Octavius’
right. The latter, taking advantage of this false move, made a
retrograde movement, and endeavored to draw out the whole
opposing force from their commanding position unto the high sea,
where the Romans would have room to manœuvre, and thereby
successfully assail Antony’s heavier vessels.
At this moment the scene was grand. The flashing of arms, and
glinting of the sun upon polished casques, the streaming flags, and
thousands of oars simultaneously put in motion, gave life and
animation; while the blare of the brazen trumpets and the shouts of
the myriads of combatants were echoed from the shores by the
cheers and cries of two large armies, each encouraging its own fleet,
and inciting them to the greater exertion.
Cleopatra’s large and magnificent galley hovered in the rear of the
fleet, with the purple sails furled, and the poop occupied by herself
and her ladies, surrounded by all the splendor of the Egyptian court.
Thinking, as we have said, that Octavius’ fleet fled before them,
Antony and his commanders abandoned their advantageous
position, and followed Agrippa out to sea.
Once there, the Roman fleet quickly put about, in good order, and
a terrible battle at once began—Roman disputing with Roman the
empire of the world.
At last an able movement of Agrippa caused Antony’s centre to
give way; but despite the disorder which resulted, the action was
steadily maintained, the losses on each side being about equal, and
victory undecided.
The force of Agrippa made up by celerity of movement for the
greater number of Antony’s fleet, and the battle was at its height,
when, suddenly, Cleopatra, panic-stricken by the noise and dreadful
carnage, gave a signal for retreat, hoisted her purple sails, and, with
the whole Egyptian contingent, retreated rapidly, leaving a great gap
in the line of battle. Some were sunk by the beaks of their pursuers,
but the majority made their escape, and were soon far from the
scene.
This shameful action should have opened Antony’s eyes, and
have stimulated him—being even yet superior in numbers—to repair
by renewed exertions the defection of the beautiful queen. But his
movements seemed to be controlled by her’s, and, forgetting his own
honor, his former glory, his empire, and his duty as commander, as a
soldier and as a man, he abandoned the brave seamen and soldiers
who were fighting for him, and took a fast, light vessel, and followed
the woman who had been his ruin, and at whose shrine he was
about to offer as a sacrifice the dishonor of Cæsar’s greatest
lieutenant.
It is said that for some time he sat upon the deck, his head bowed
between his hands, and wrapped in his own thoughts. But he only
regained sufficient command of himself to resolve to protect the
cause of his ruin. He therefore continued his flight to the promontory
of Tenaros; and then soon after learned of the entire defeat of his
fleet.
Even after being thus shamefully abandoned by their commander,
his troops and sailors had for a long time; maintained the combat;
but bad weather coming on they at last surrendered, after a loss of
five thousand killed, and having three hundred ships captured, with
their crews.
For a long time the land forces of Antony could not believe in his
defection, and looked for him to reappear, and, at their head, redeem
the fortunes of the sea fight. Indeed, for many days after the victory
they declined the overtures of Octavius. But at last, despairing of
Antony’s return, their general, with his principal officers and the
troops, passed under the banners of Octavius. This event left him
the undisputed master of the world.
Upon his return to Rome he was decreed a three days’ triumph,
and he now assumed in public the imperial powers which he had
long virtually possessed.
The shocking death of both Antony and Cleopatra, by suicide,
hardly belongs to the account of Actium, although the direct
consequence of the overwhelming defeat there sustained.
THE PTOLEMY PHILOPATER—405 B. C.

(Constructed by Ptolemy Philopater, of Egypt, after a Greek Model.)

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Complete the following using the terms listed.

1. ANS: d DIF: MEDIUM LO: 7.1 What Is Management?

DIF: HARD LO: 7.1 What Is Management?

DIF: HARD LO: 7.1 What Is Management?

23. Describe each of the management functions.

DIF: MEDIUM LO: 7.2 Setting a Vision and Ethical Standards

DIF: HARD LO: 7.3 Importance of Planning

26. Describe contingency planning and its two components.

DIF: MEDIUM LO: 7.3 Importance of Planning

DIF: MEDIUM LO: 7.4 The Strategic Planning Process

DIF: HARD LO: 7.4 The Strategic Planning Process

29. Describe competitive differentiation. Provide possible examples of competitive differentiation.

DIF: MEDIUM LO: 7.4 The Strategic Planning Process

30. Provide an example of a programmed decision and a nonprogrammed decision.

31. List the steps involved in the decision-making process.

DIF: MEDIUM LO: 7.5 Managers as Decision Makers

32. Describe three personal qualities found in great leaders.

DIF: MEDIUM LO: 7.6 Managers as Leaders

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

DIF: HARD LO: 7.5 Managers as Leaders

DIF: HARD LO: 7.8 Organizational Structures

DIF: MEDIUM LO: 7.8 Organizational Structures

37. Compare the four types of organizational structures.

DIF: HARD LO: 7.8 Organizational Structures

45. Human skills involve ________.

49. Conceptual skills are ________.

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

59. Vision should be ________ and ________.

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

72. Tactical planning is primarily the responsibility of ________.

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

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

83. Which managers typically implement a strategy?

88. All of the following require nonprogrammed decisions EXCEPT ________.

90. The first step in the decision-making process is:

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

99. Democratic leaders ________.

105. The best style of leadership is ________.

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

108. In an organization with a strong culture, ________.

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

a. A company with strong tradition should not alter its culture.

111. What is the first step in the organizing process?

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

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

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

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

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

ANS: T DIF: MEDIUM LO: 7.1 What Is Management?

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

ANS: F DIF: EASY LO: 7.1 What Is Management?

ANS: T DIF: EASY LO: 7.1 What Is Management?

ANS: T DIF: MEDIUM LO: 7.1 What Is Management?

59. Vision should be and .