REVIEW QUESTION

1) The four basic management functions are planning, organizing, influencing and controlling.
True or False

2) Planning involves choosing tasks that must be performed to attain organizational goals,
outlining how the tasks must be performed, and indicating when they should be performed.
True or False

3) Planning is concerned only with organizational success in the short term, while organizing is
concerned with the more distant future (long term).
True or False

4) Influencing is the process of assigning the tasks developed under the planning function to
various individuals or groups within the organization.
True or False

5) Organizing is also commonly referred to as motivating, leading, directing, or actuating.

True or False

6) According to the concept of corporate social responsibility, managers should regard societal
goals as more important than organizational goals.
True or False

7) The Davis Model of Corporate Social Responsibility proposes businesses to operate as two-way
open systems, with open receipt of inputs from society and open disclosure of operations to the
public.
True or False

8) Certain business institutions become involved in certain social problems that are outside their
normal areas of operation. This behavior is inconsistent with the Davis Model of Corporate Social
Responsibility.
True or False

9) Consumer affairs and community volunteerism are considered areas of corporate social
responsibility.
True or False

10) Empirical studies, conducted by various corporations in the United States, have demonstrated
a definitive relationship between corporate social responsibility and profitability.
True or False

11) Controlling is the management function through which managers compare present
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performance to preestablished performance standards.
True or False

12) Organizational resources are of four basic types: planning, organizing, leading and controlling.
True or False

13) Efficient means that a small proportion of total resources contributes to productivity during
the manufacturing process; inefficient means that a large proportion of resources contributes to
productivity.
True or False

14) Management jobs vary but management principles are universal. The basic ingredients of
successful management are applicable to all organizations.
True or False

15) Technical skills involve the ability to apply specialized knowledge and expertise to work-
related techniques and procedures.
True or False

16) Adherence to legislated social responsibilities is the minimum standard of social responsibility
performance that business managers must achieve.
True or False

17) The primary function of the Equal Employment Opportunity Commission is to ensure that
employers holding federal contracts grant equal employment opportunity to people regardless of
their race or sex.
True or False

18) The primary function of the Consumer Product Safety Commission is the regulation of safety
and health conditions in nongovernment workplaces.
True or False

19) The greater the degree of effectiveness and efficiency in pursuing its social responsibilities,
the more socially responsive the organization is said to be.
True or False

20) Any individual or group that is directly or indirectly affected by an organization's decisions is
called a stakeholder.
True or False

21) Human skills, unlike technical skills, involve the ability to see the organization as a whole.
True or False

22) As one moves from lower-level management to upper-level management, conceptual skills
become more important and technical skills less important.
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 True or False

23) Providing recognition for achievements and contributions, developing skill and confidence of
organization members are change-related activities.
True or False

24) In an organization, short-term planning, clarifying objectives of jobs in organizations, and

monitoring operations and performance are task-related activities.
True or False

25) To increase the probability of being successful, managers should have competence in
recognizing. This involves checking with people before making decisions that affect them,
encouraging participation in decision-making, and using the ideas and suggestions of others.
True or False

26) The social obligation approach considers business as having both societal and economic goals
as well as the obligation to anticipate potential social problems and work actively toward
preventing their occurrence.
True or False

27) Organizations that take the social obligation approach usually achieve higher levels of social
responsiveness than organizations that take the social responsibility approach.
True or False

28) Controlling in the area of social responsibility does not entail assessments or measurements.
True or False

29) All companies should take social responsibility measurements in the quality-of-life area and
the economic function area.
True or False

30) A social audit is conducted to measure the present social responsibility activities of an
organization.
True or False
31) A career is a sequence of work-related positions occupied by a person over the course of a
lifetime.
True or False

32) The exploration stage occurs at the beginning of a career and is characterized by self-analysis
and the exploration of different types of available jobs.
True or False

33) Career plateauing is a period of declining performance and productivity.

True or False

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34) The second stage in career evolution is the establishment stage, during which individuals about
25 to 45 years old start to become more productive, or higher performers.
True or False

35) An organization that wants to retain an employee may need to assist that employee's spouse in
his or her career development as well.
True or False

36) Ethical managers strive for success within the confines of sound management practices that
are characterized by fairness and justice.
True or False

37) A code of ethics is an informal statement that organizations release to help its employees obtain
a basic understanding of ethics.
True or False

38) The utilitarian principle advocates the view that people should act in a way they would expect
others to act toward them.
True or False

39) Kant's categorical imperative proposes to act in such a way that the action taken under the
circumstances could be a universal law, or rule, of behavior.
True or False

40) A whistle-blower is an employee who performs quality reviews within an organization and
reports flaws in the processes.
True or False

41) The process of determining how an organization can get where it wants to go and what it will
do to accomplish its objectives is ________.
A) organizing
B) influencing
C) planning
D) controlling
E) analyzing

42) Which of the following is the fundamental purpose of planning?

A) eliminating risk
B) helping the organization reach its objectives
C) optimizing the use of resources
D) identifying organizational objectives
E) organizing work processes

43) ________ is the process of establishing orderly uses for resources within the management
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system.
A) Organizing
B) Communication
C) Planning
D) Controlling
E) Motivation

44) ________ skill is the ability to establish orderly uses for resources within the management
system.
A) Organizing
B) Communication
C) Planning
D) Controlling
E) Marketing

45) ________ is the process of guiding the activities of organization members in appropriate
directions.
A) Communicating
B) Influencing
C) Controlling
D) Planning
E) Organizing

46) Which of the following is the primary purpose of the influencing subsystem?
A) elimination of organizational grapevine
B) business process restructuring
C) attainment of management objectives
D) manipulation of critical information
E) elimination of organizational conflicts

47) Ensuring that an event occurs as it was planned to occur constitutes ________.
A) control
B) planning
C) influencing
D) organizing
E) designing

48) ________ is the systematic effort to compare performance to predetermined standards in order
to determine whether performance is in line with those standards, or needs to be corrected.
A) Planning
B) Organizing
C) Controlling
D) Designing
E) Motivation
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49) Becky's department has seen a number of layoffs in the last two months, and employee morale
is very low. This is affecting the work atmosphere and productivity is declining. In this situation,
the department manager's primary task will be _______.
A) organizing
B) influencing
C) controlling
D) monitoring
E) planning

50) Motivating employees to perform better so that they can achieve the organization's goals is
known as ________.
A) organizing
B) influencing
C) controlling
D) monitoring
E) planning

51) Lebron wants to file a complaint against EatFry, a fast-food restaurant, because he was rejected
in a job interview with the firm. Lebron believes that he was discriminated because of race. Which
of the following federal agencies should he approach?
A) Consumer Product Safety Commission
B) Mining Enforcement and Safety Administration
C) Occupational Safety and Health Administration
D) Environmental Protection Agency
E) Equal Employment Opportunity Commission

52) Social responsiveness can be defined as ________.

A) the speed with which an organization adapts to the changing societal culture
B) an organization's effectiveness in abiding by the laws of the society
C) the degree of effectiveness and efficiency with which an organization fulfills its stockholders'
needs while benefitting the stakeholders
D) the degree of effectiveness and efficiency an organization displays in pursuing its social
responsibilities
E) the degree of effectiveness with which an organization can predict the changes in a society,
such as the consumers changing preferences

53) The protective purpose of planning is to ________.

A) decrease paper work and red tape
B) increase the degree of organizational success
C) optimize the use of organizational resources
D) minimize risk by reducing the uncertainties surrounding business conditions
E) maximize the organization's ability to leverage environmental opportunities
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54) The affirmative purpose of planning is to ________.
A) increase the degree of organizational success
B) increase the level of workplace diversity
C) optimize the use organizational resources
D) refine work methods and reduce production costs
E) improve organizational compliance with industry standards

55) Fred is a Grade D manager in Lighthouse Infrastructure and manages a small team of eight
engineers. The company has 15 Grade D managers. He worked his way up from the lowest grade,
Grade E, where he was one of 52 line managers and hopes to be promoted to Grade C soon, which
would make him one of the six vice-presidents in the company. However, breaking into Grade B,
comprising three presidents, will be a challenge. Only the CEO and COO occupy Grade A. Which
of the following numbers represents Fred's span of control?
A) 15
B) 60
C) 52
D) 8
E) 11

56) Dorothy Woods, CEO of Arcadia Corp., is planning to widen the spans of management in the
organization in order to have a flatter organization. Which of the following, if true, would support
Dorothy's strategy?
A) Arcadia Corp. is a market leader in developing, manufacturing and selling customized
innovative, cutting edge communication technology to corporations.
B) Arcadia Corp. is engaged in manufacturing bottle caps for a leading cola brand.
C) Arcadia Corp. relies heavily on virtual teams spread across its offices in several countries.
D) Arcadia Corp. will save a significant amount of money on managers' salaries if it reduces the
number of managerial levels.
E) Arcadia Corp. has a reputation for pioneering innovative managerial practices in the industry.

57) Trot is the CEO of a consulting firm. He plays a key role in guiding the activities of
organization members in appropriate directions. This role performed by Trot can be called
________.
A) communicating
B) influencing
C) collaborating
D) motivating
E) coaching

58) You are speaking to one of your professors. You tell the professor that you are satisfied with
the grades that you have received. In this communication situation you are a(n) ________.
A) encoder
B) message channel
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C) signal channel
D) decoder
E) receiver

59) As part of the controlling process, you have finished measuring the performance of your team.
What must you do next?
A) Take corrective action.
B) Compare measured performance to standards.
C) Establish a unit of measure to gauge performance.
D) Modify past plans.
E) Restructure control systems and subsystems.

60) Which of the following is the best example of raw data?

A) the return on investment on an advertising campaign
B) a projection of future product demand
C) the organizational budget for the next quarter
D) a forecast of market trends
E) the attendance register in a factory

61) The primary management function is ________.

A) organizing
B) influencing
C) controlling
D) planning
E) staffing

62) Alternatives to reach an organizational objective are based on assumptions which are called
________.
A) objectives
B) missions
C) goals
D) premises
E) priorities

63) According to Fayol's guidelines for organizing resources, you should avoid ________.
A) formulating precise decisions
B) using sanctions against faults and errors
C) instituting and effecting controls
D) regulations, redtape, and paperwork
E) defining duties

64) According to Fayol's guidelines for organizing resources, you should do all of the following,
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EXCEPT ________.
A) establish multiple guiding authorities
B) define duties
C) use sanctions against faults and errors
D) encourage initiative and responsibility
E) offer suitable rewards for services rendered

65) Which of the following is considered a primary managing activity?

A) building corporate culture
B) reducing conflicts
C) eliminating workplace stress
D) creating norms
E) maintaining work-life balance

66) Primary management activities such as communicating, leading, and motivating are considered
________.
A) influencing processes
B) organizational outputs
C) internal resources
D) external resources
E) organizational inputs
67) ________ and ________ have been called the "Siamese twins of management."
A) Setting standards; measuring performance
B) Managing; leading
C) Planning; controlling
D) Problems; symptoms
E) Organizing; controlling

68) Which of the following is the first step in the controlling process?
A) evaluating performance
B) taking corrective action
C) measuring performance
D) recognizing problems
E) recognizing symptoms

69) ________ is the management function through which managers compare present performance
to preestablished performance standards.
A) Organizing
B) Influencing
C) Controlling
D) Monitoring
E) Planning

70) Gathering information that measures recent performance within the organization is part of the
________ management function.
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A) motivating
B) controlling
C) influencing
D) organizing
E) planning

71) Managers who have successfully increased the value of the organization have fulfilled their
social obligation towards ________.
A) stockholders
B) consumers
C) government agencies
D) employees and unions
E) banks and other lenders

72) ________ is defined as the process of determining how the organization will achieve its
objectives, or get where it wants to go.
A) Influencing
B) Organizing
C) Planning
D) Controlling
E) Implementing

73) A disadvantage of planning is that it ________.

A) causes managers to focus on the future
B) reduces organizational flexibility once plans are set
C) requires organizational resources
D) can take up too much managerial time
E) involves planning for situations that may not occur

74) Which of the following is an advantage of planning?

A) eliminates all risks
B) enhances decision coordination
C) emphasizes immediate goals
D) suboptimizes the use of resources
E) promotes individual performance

75) According to the contingency viewpoint to designing span of management, which of the
following situations would warrant a relatively wide span of control?
A) Supervising a team of scientists engaged in complex research work.
B) Supervising a team of factory workers sewing buttons onto shirts.
C) Managing a virtual team of engineers spread across several countries.
D) Managing a highly interdependent production team.
E) Managing and coordinating the activities of a marketing team.
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76) Andrew is a mid-level manager with three organizational levels above him and two below him.
He has four analysts reporting directly to him. Using Graicunas's formula, calculate the total
number of possible relationships between Andrew and his subordinates.
A) 4
B) 16
C) 44
D) 56
E) 64

77) Which of the following is the most complete and accurate description of communication
barriers?
A) factors that decrease the probability that communication will be successful
B) aspects that allow unwanted entities to participate in the communication process
C) external stimuli that interfere with transmission of messages from the sender to the receiver
D) innate factors in the receiver that influence the interpretation of a message
E) attributes that lead to environmental noise and organizational stress

78) Which of the following is an example of a macrobarrier when a manager communicates with
his or her subordinates?
A) The manager considers the subordinates to be irresponsible and unprofessional.
B) The subordinates have a strong negative attitude toward the manager.
C) The subordinates constitute a diverse population and speak different languages.
D) The manager uses words that have multiple meanings.
E) The manager is a specialist in information technology and tends to use technical jargon.

79) The CEO of Pegasus Inc. wants to know the ROI on a recent promotional drive to develop the
marketing strategy for next year. The Marketing Manager sends him a detailed report on the all
the personnel in his department and the salaries and bonuses paid to them over the past year. This
information is likely to be useless to the Operations manager because it is not ________.
A) appropriate
B) timely
C) voluminous
D) real
E) expensive

80) Information ________ is the extent to which the receipt of information allows decisions to be
made and action to be taken so the organization can gain some benefit from possessing the
information.
A) appropriateness
B) quality
C) timeliness
D) quantity
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E) scope

81) ________ is the key to a successful planning process.

A) Classification
B) Repetition
C) Implementation
D) Evaluation
E) Standardization

82) A system created as part of the overall management system is a(n) ________.
A) offshoot
B) microsystem
C) spinoff
D) subsystem
E) outgrowth

83) According to Fayol's guidelines for organizing resources, you should ________.
A) establish multiple guiding authorities
B) make extensive use of regulations and paperwork
C) not use sanctions against faults and errors
D) recognize the unity of command
E) not link rewards to performance

84) Which of the following is the first step in the organizing process?
A) establish major tasks
B) reflect on plans and objectives
C) allocate resources and directives for subtasks
D) evaluate results of organizing strategy
E) divide major tasks into subtasks

85) Which of the following is considered a fundamental managerial skill?

A) technical skills
B) communication abilities
C) charismatic leadership
D) ability to maintain status quo
E) ability to regulate procedures

86) The capacity of people to recognize their own feelings and the feelings of others, to motivate
themselves, and to manage their own feelings as well as the emotions in relationships with others,
is called ________.
A) emotional intelligence
B) business intelligence
C) social emotional learning
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D) affective science
E) competitive intelligence

87) The level of activity established to serve as a model for evaluating organizational performance
is a(n) ________.
A) symptom
B) problem
C) standard
D) correction
E) incentive

88) Which of the following is the last step in the controlling process?
A) comparing measured performance to standards
B) taking corrective action
C) measuring performance
D) establishing standards
E) establishing units of measuring performance

89) Jacob, an upper-level manager, recently saw a project fail because he did not establish
objectives for all important organizational areas during the initial stages. Jacob made a mistake
during the ________ stage of the management process.
A) organizing
B) influencing
C) controlling
D) monitoring
E) planning

90) Seth, a manager in a growing organization, believes that creating departments leads to the
formation of barriers in an organization. Not establishing departments appropriately while
________ can be a huge management mistake.
A) organizing
B) influencing
C) controlling
D) monitoring
E) planning

91) ________ is defined as the management process of guiding the activities of organization
members to help attain organizational objectives.
A) Implementing
B) Organizing
C) Controlling
D) Planning
E) Influencing

92) In which of the following stages of performing social responsibility activities does a manager
lead, communicate, motivate, and work with groups to attain the organization's social
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responsibility objectives?
A) influencing
B) controlling
C) implementing
D) planning
E) organizing

93) Planning is advantageous to an organization, particularly in the creation of new ventures.

According to an often-cited survey, as many as 65 percent of all newly started businesses are not
around to celebrate a fifth anniversary. This high failure rate seems primarily a consequence of
inadequate planning. Successful businesses have an established plan, a formal statement that
outlines the objectives the organization is attempting to achieve. Planning does not eliminate risk,
of course, but it does help managers identify and deal with organizational problems before they
cause havoc in a business. Which of the following best expresses the main point of this paragraph?
A) Adequate planning eliminates business risk.
B) All ventures have a 65 percent chance of failure.
C) Existing businesses do not derive as much value from planning compared to new ventures.
D) Effective planning helps managers identify and plan for all organizational problems.
E) Companies that plan well appear to have a better chance at success.

94) The first step in the planning process is to ________.

A) list alternative ways of reaching objectives
B) state organizational objectives
C) develop the premises upon which each alternative is based
D) develop plans to pursue the chosen alternative
E) put plans into action

95) Which of the following is true about the height of an organization chart?
A) An organization's structure should be built from bottom to top to ensure that appropriate spans
of management are achieved at all levels.
B) Span of management usually has no influence on the height of an organization chart.
C) Increasing spans of management to eliminate certain management positions and thereby
reducing salary expenses will help the organization achieve long-tern success.
D) Normally, the greater the height of the organization chart, the smaller the span of management.
E) Overall, managers seem to be using taller organizational structures now than in the past.

96) The organization structure at Kinetic Machines is horizontally divided into Marketing,
Finance, Production, and R&D departments. Identify the departmentalization mode being used
here.
A) product
B) geographic
C) functional
D) customer
E) matrix

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97) To minimize the negative effects of the perceptual differences of receivers on interpersonal
communication, managers should ________.
A) use verbal communication instead of visual communication
B) communicate only when they have the total attention of the destination
C) try to send messages with precise meanings
D) preferably communicate using casual terms and references
E) use low involvement channels for communication

98) What is the major purpose of feedback in the communication process?

A) It is used by the source to ensure successful communication.
B) It can be used to boost the legitimate power of managers.
C) It provides formal documentation of the communication process.
D) It helps the source avoid questions from the destination.
E) It fosters lateral communication in the organization.

99) Immediately after Randor Leather awarded a long-term contract for supply of raw materials,
its Operations Manager gets information from a vendor about a much cheaper source of raw
material. This information is likely to be of little use to the business because it is not ________.
A) appropriate
B) of good quality
C) timely
D) in sufficient quantity
E) wide in scope

100) As part of a process of job redesigning, the HR manager of Mars LLC conducted an informal
survey of employees to assess their job satisfaction levels. However, fearing negative action, few
employees gave clear, unambiguous responses to the HR manager's questions. This survey is likely
to be of little use to the HR manager because it is ________.
A) not relevant
B) too costly
C) not timely
D) not in sufficient quantity
E) too wide in scope

101) The targets toward which an open management system is directed are ________.
A) organizational purposes
B) operational plans
C) organizational objectives
D) business processes
E) objective indicators

102) A firm's ________ refer(s) to what it exists to do, given a particular group of customers and

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customer needs.
A) operational plan
B) unique selling proposition
C) organizational purpose
D) long-term goal
E) vision statement

103) The second and third steps of the organizing process focus on the ________.
A) results of the organizing strategy
B) organizational plans
C) organizational goals and objectives
D) tasks to be performed within the management system
E) allocation of resources and directives

104) Which of the following is the last step in the organizing process?
A) Allocate resources and directives for subtasks.
B) Evaluate results of organizing strategy.
C) Establish major tasks.
D) Reflect on plans and objectives.
E) Divide major tasks into subtasks.

105) An individual's emotional intelligence is characterized by self-awareness, self-motivation,

self-regulation, empathy for others, and ________.
A) systems thinking
B) formal communication abilities
C) openness to experience
D) adeptness in building relationships
E) superior intellectual capabilities

106) Which of the following terms best represents the capacity of people to recognize their own
feelings and the feelings of others, to motivate themselves, and to manage their own feelings as
well as the feelings in relationships with others?
A) consideration
B) interpersonal skills
C) compassion
D) emotional intelligence
E) assertiveness

107) ________ is managerial activity aimed at bringing organizational performance up to the level
of performance standards.
A) Laddering
B) Corrective action
C) Reprogramming
D) Market correction
E) Contrarian investing

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108) Factors within an organization that are barriers to organizational goal attainment are called
________.
A) problems
B) propositions
C) symptoms
D) standards
E) yardsticks

109) Roland, a firm believer in management policies, always manages his team by the book. His
team members agree that he is more of a manager than a leader. This indicates that Roland should
work on ________ his team.
A) organizing
B) influencing
C) controlling
D) monitoring
E) planning

110) Gayle has not established appropriate performance standards for her team. This is a fault in
the ________ function of management.
A) organizing
B) influencing
C) controlling
D) monitoring
E) planning

111) The social responsibility measurement in the ________ area includes performing tasks like
producing goods and services that people need, paying fair wages, and ensuring worker safety.
A) problem-recognition
B) quality-of-life
C) social investment
D) economic function
E) problem-solving

112) The social responsibility measurement in the ________ area includes tasks like making an
effort to preserve the natural environment.
A) problem-solving
B) economic function
C) social investment
D) problem-recognition
E) quality-of-life

113) What is the underlying assumption in the first alternative?

A) Customers associate high prices with high quality and vice versa.
B) Customers are more quality conscious than price sensitive.
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C) Low-cost raw materials will not affect the overall quality of the final product.
D) The company's relationship with its current suppliers is strong.

114) What is the underlying assumption in the second alternative?

A) Competitors are also likely to adopt high-end technology.
B) Consumers' purchase decisions are directly influenced by the manufacturing process.
C) The availability of better technology translates into higher worker productivity.
D) The costs associated with upgrading will outweigh the benefits.
E) Alternate suppliers can provide raw materials at a lower cost.

115) The organization structure at Sinclair Funds, a financial services company, is divided
horizontally into Insurance, Mutual Funds, and Wealth Management departments. Identify the
departmentalization mode being used here.
A) matrix
B) customer
C) product or service
D) geographic
E) functional

116) Gizmo Sales, a company that sells office supplies to companies in Atlanta, GA, has organized
the business horizontally into departments named North Atlanta, South Atlanta, and Downtown
Atlanta. This indicates that Gizmo has departmentalized on the basis of ________.
A) products
B) projects
C) customers
D) territories
E) functions

117) You are the manager of a legal consulting firm. Which of the following is an example of
microbarrier of communication that you are likely to come across?
A) The firm has several international clients who speak different languages and have different
cultures.
B) The legal data that your firm processes on a daily basis is increasingly becoming more complex.
C) The firm must keep abreast of the frequent changes that are made to laws and regulations in
order to remain competitive.
D) The firm is forced to maintain a highly efficient information system to be able to access timely
and accurate information
E) The firm's clients incorrectly perceive the information that is provided to them.

118) Which of the following should the source do to gather nonverbal feedback?
A) observe the destination's gestures and facial expressions
B) ask the destination questions about the message
C) repeat the message and ask for specific feedback
D) ask the destination about how the message was perceived
E) use tests and procedures that suit the situation

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119) "Paralysis by analysis" is generally caused by ________.
A) information overload
B) insufficient information
C) lack of timely information
D) inappropriate information
E) data contamination

120) Which of the following is the first step in evaluating organizational information?
A) pinpointing the data to be analyzed
B) evaluating the cost of data
C) comparing value of information with its cost
D) acquiring information
E) increasing value or decrease cost of information

-----------------------------------
1) What is planning? What are the advantages and potential disadvantages of planning?

2) Discuss the five main steps in the organizing process.

3) What is emotional intelligence? Why is it important in organizations?

4) Outline the steps involved in the controlling process.

5) Describe the steps in the planning process.

6) Describe what is meant by the term "division of labor." Also explain the advantages and
disadvantages associated with division of labor.

7) Explain how interpersonal communication works.

8) Explain the importance of power to the control process. Describe the difference between
positional power and personal power.
9) What is the difference between an organizational objective and a statement of organizational
purpose?

10) Define the concepts of vertical dimensioning, scalar relationships, and unity of command and
explain how they are related.

11) Explain the difference between communication macrobarriers and communication

microbarriers. Give an example of each.

12) Explain the ways an individual can be successful in increasing his or her personal power.
13) Describe the eight key areas in which Drucker advised managers to set management system
objectives.

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14) Explain the concept of span of management, and discuss the factors that influence the
appropriateness of the size of an individual's span of management.

15) Describe formal communication and explain the three basic types of formal communication.

16) Identify the methods by which managers can make controlling a successful activity.

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