Chapter 1 Managers and Management
1) Part of what defines an organization is its purpose.
Answer: TRUE
Explanation: The goals or purpose of an organization define the organization's reason
for existing. Without a common purpose, a group of individuals does not qualify as
an organization.
Diff: 2
Objective: 1.1
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
2) All organizations have a structure that in some ways serves to define and limit
the behavior of members of the organization.
Answer: TRUE
Explanation: The structure of an organization, whether formal or informal, defines
how organization members interact. For example, a school's informal guidelines
might determine how teachers fraternize. A school's formal guidelines might set up
rules for interaction between students and teachers.
Diff: 2
Objective: 1.1
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
3) In order to be considered a manager, an individual must direct or oversee the
work of others.
Answer: TRUE
Explanation: Directing and overseeing work distinguishes managers from
nonmanagerial employees. Managers direct and oversee work of others.
Nonmanagerial employees have no supervisory responsibilities.
Diff: 2
Objective: 1.1
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
4) A manager does not work directly on tasks for the organization.
Answer: FALSE
Explanation: Managers may work on tasks in addition to their supervisory duties. For
example, a manager of a shop that designs clothing may also create designs on his or
her own.
Diff: 2
Objective: 1.1
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
,5) Supervisors and team leaders may both be considered first-line managers.
Answer: TRUE
Explanation: First-line managers are managers who oversee workers directly and are
involved in day-to-day operations. For example, a team manager in an auto assembly
plant might oversee and help solve everyday problems that arise on the assembly line.
Higher-level managers typically would not spend time helping to solve assembly line
problems directly.
Diff: 1
Objective: 1.1
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
6) Effectiveness refers to the relationship between inputs and outputs.
Answer: FALSE
Explanation: Efficiency is concerned with maximizing the output-to-input ratio.
Effectiveness, on the other hand, refers not to how well resources are used but to
which resources to use, and whether or not those resources help the organization
attain its goals.
Diff: 2
Objective: 1.2
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
7) A goal of efficiency is to minimize output costs while maximizing input costs.
Answer: FALSE
Explanation: The goal of efficiency is the opposite—to maximize outputs while
minimizing inputs. An efficient operation uses the fewest resources to generate the
greatest amount of product.
Diff: 2
Objective: 1.2
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
8) Effectiveness refers to the attainment of the organization's
goals. Answer: TRUE
Explanation: Effectiveness is concerned with "doing the right things"—choosing the
tasks that will help the organization achieve its goals. Efficiency, on the other hand,
refers to "doing things right," that is, once tasks are chosen they are done with a
minimum of waste.
Diff: 2
Objective: 1.2
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
,9) Managers who are effective at meeting organizational goals always act
efficiently. Answer: FALSE
Explanation: A manager may be effective but not efficient. For example, a manager
may excel at achieving goals but waste a lot of money, energy, and resources in
achieving them.
Diff: 3
Objective: 1.2
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
10) The four contemporary management processes are planning, organizing, leading,
and commanding.
Answer: FALSE
Explanation: Leading is a term that replaced commanding and coordinating. So
commanding is considered to be part of leading and not distinct from it.
Diff: 1
Objective: 1.2
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
31) Which of the following is the most accurate statement regarding managers in
today's world?
A) There is a greater need for customer focus than ever before.
B) Managers are found almost exclusively in large corporations that have more than
500 employees.
C) Managers are found almost exclusively in for-profit organizations.
D) More than half of today's managers are women.
Answer: A
Explanation: A) Organizations need customers. Without them, most organizations
would cease to exist. Yet, focusing on the customer has long been thought to be the
responsibility of marketing people. "Let the marketers worry about the customers" is
how many managers felt. We're discovering, however, that employee attitudes and
behaviors play a big role in customer satisfaction.
Diff: 2
AACSB: Multicultural and diversity understanding
Objective: 1.1
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
, 32) An organization is .
A) the physical location where people work
B) any collection of people who perform similar tasks
C) a deliberate arrangement of people to accomplish some specific purpose
D) a group of individuals focused on profit-making for their shareholders
Answer: C
Explanation: C) By definition, an organization is a deliberate arrangement of people
who have a common purpose or goal. An organization may or may not exist in a
discrete physical location. For example, many of today's political advocacy
organizations exist largely as online entities without a primary physical location.
Though some people in an organization may perform similar tasks, many do not. For
example, doctors and administrators may both work for the same hospital
organization but perform very different tasks. Finally, focus on profit does not
determine an organization. Many organizations, such as a bird-watching club, do not
include profit as a goal.
Diff: 2
Objective: 1.1
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization
33) All organizations have that define(s) the organization's purpose and
reason for existing.
A) limits
B) rules
C) structure
D) goals
Answer: D
Explanation: D) An organization's goals define its purpose and reason for existing.
For example, the goals of a bank might be to make money, while the goals of a
church choir might to be to create beautiful music. Rules can help an organization
achieve its goals, but rules do not explicitly define those goals. Organizational
structure defines and limits how people within an organization interact, but structure
on its own is not something that serves to define an organization's purpose.
Diff: 2
Objective: 1.1
Learning Outcome: Describe the roles of managers and the skills they need to
succeed within an organization