Chapter 1: Management
Total Questions: 146 (34 True/False; 95 Multiple Choice; 12 Short Answer; 5
Essay)
TRUE/FALSE
1. While good management is basic to starting and growing a business, once some measure of
success has been achieved, good management becomes less important.
ANS: F
Good management is basic to starting a business, growing a business, and maintaining a
business once it has achieved some measure of success.
PTS: 1 DIF: Easy REF: 4 TOP: AACSB Analytic
KEY: Creation of Value
2. Managers are responsible for doing the basic work in the company.
ANS: F
The manager's job is not to do the basic work in the company, but to help others do their
work.
PTS: 1 DIF: Easy REF: 4 TOP: AACSB Reflective
Thinking
KEY: Creation of Value
3. Companies that plan have larger profits and faster growth than companies that don’t.
ANS: T PTS: 1 DIF: Easy REF: 5
, TOP: AACSB Reflective Thinking KEY: Creation of Value
4. The classical functions of management are (1) making things happen, (2) meeting the
competition, (3) organizing people, projects, and processes, and (4) leading.
ANS: F
The classical functions of management are planning, organizing, leading, and controlling.
PTS: 1 DIF: Moderate REF: 5 TOP: AACSB Reflective
Thinking
KEY: Leadership Principles| HRM| Strategy| Creation of Value
5. According to What Really Works, Meta-Analysis, meta-analysis is a research tool that
combines the results of a number of research studies.
ANS: T PTS: 1 DIF: Easy REF: 7
TOP: AACSB Reflective Thinking KEY: Creation of Value
6. According to the What Really Works box, meta-analysis is useful for management theorists
and researchers, but it has little value for the practicing manager.
ANS: F
Meta-analysis is also useful for practicing managers, because it shows what works and the
conditions under which management techniques may work better or worse in the "real
world."
PTS: 1 DIF: Moderate REF: 7 TOP: AACSB Reflective
Thinking
KEY: Creation of Value
7. Top managers are responsible for creating a context for change in the organization.
, ANS: T PTS: 1 DIF: Moderate REF: 2
TOP: AACSB Reflective Thinking KEY: Creation of Value
8. Top managers are the managers responsible for facilitating team activities toward goal
accomplishment.
ANS: F
Top managers are executives responsible for the overall direction of the organization; team
leaders are the managers responsible for facilitating team activities toward goal
accomplishment.
PTS: 1 DIF: Moderate REF: 10-11 TOP: AACSB Reflective
Thinking
KEY: Group Dynamics
9. Typical titles used for top managers are general manager, plant manager, regional manager,
and divisional manager.
ANS: F
These are typical titles for middle managers, not top managers. See Exhibit 1.2.
PTS: 1 DIF: Moderate REF: 9 TOP: AACSB Reflective
Thinking
KEY: Creation of Value | HRM
10. First-line managers are responsible for setting objectives consistent with organizational
goals and planning and implementing subunit strategies for achieving these objectives.
ANS: F
This is the responsibility of middle managers. See Exhibit 1.2.
, PTS: 1 DIF: Moderate REF: 9 TOP: AACSB Reflective
Thinking
KEY: Strategy
11. Bandai, the third-largest toy maker in the world, has embarked on a series of acquisitions in
an effort to become the leading toy maker in the world. The decision to adopt this goal was
most likely made by its top management.
ANS: T
See Exhibit 1.2.
PTS: 1 DIF: Easy REF: 9 TOP: AACSB Analytic
KEY: Leadership Principles| Strategy
12. Middle managers are typically responsible for coordinating and linking groups,
departments, and divisions within a company.
ANS: T
See Exhibit 1.2.
PTS: 1 DIF: Difficult REF: 9 TOP: AACSB Reflective
Thinking
KEY: Strategy| Group Dynamics
13. First-line managers are the only managers who do not supervise other managers.
ANS: T
See Exhibit 1.2.
PTS: 1 DIF: Easy REF: 9 TOP: AACSB Reflective
Total Questions: 146 (34 True/False; 95 Multiple Choice; 12 Short Answer; 5
Essay)
TRUE/FALSE
1. While good management is basic to starting and growing a business, once some measure of
success has been achieved, good management becomes less important.
ANS: F
Good management is basic to starting a business, growing a business, and maintaining a
business once it has achieved some measure of success.
PTS: 1 DIF: Easy REF: 4 TOP: AACSB Analytic
KEY: Creation of Value
2. Managers are responsible for doing the basic work in the company.
ANS: F
The manager's job is not to do the basic work in the company, but to help others do their
work.
PTS: 1 DIF: Easy REF: 4 TOP: AACSB Reflective
Thinking
KEY: Creation of Value
3. Companies that plan have larger profits and faster growth than companies that don’t.
ANS: T PTS: 1 DIF: Easy REF: 5
, TOP: AACSB Reflective Thinking KEY: Creation of Value
4. The classical functions of management are (1) making things happen, (2) meeting the
competition, (3) organizing people, projects, and processes, and (4) leading.
ANS: F
The classical functions of management are planning, organizing, leading, and controlling.
PTS: 1 DIF: Moderate REF: 5 TOP: AACSB Reflective
Thinking
KEY: Leadership Principles| HRM| Strategy| Creation of Value
5. According to What Really Works, Meta-Analysis, meta-analysis is a research tool that
combines the results of a number of research studies.
ANS: T PTS: 1 DIF: Easy REF: 7
TOP: AACSB Reflective Thinking KEY: Creation of Value
6. According to the What Really Works box, meta-analysis is useful for management theorists
and researchers, but it has little value for the practicing manager.
ANS: F
Meta-analysis is also useful for practicing managers, because it shows what works and the
conditions under which management techniques may work better or worse in the "real
world."
PTS: 1 DIF: Moderate REF: 7 TOP: AACSB Reflective
Thinking
KEY: Creation of Value
7. Top managers are responsible for creating a context for change in the organization.
, ANS: T PTS: 1 DIF: Moderate REF: 2
TOP: AACSB Reflective Thinking KEY: Creation of Value
8. Top managers are the managers responsible for facilitating team activities toward goal
accomplishment.
ANS: F
Top managers are executives responsible for the overall direction of the organization; team
leaders are the managers responsible for facilitating team activities toward goal
accomplishment.
PTS: 1 DIF: Moderate REF: 10-11 TOP: AACSB Reflective
Thinking
KEY: Group Dynamics
9. Typical titles used for top managers are general manager, plant manager, regional manager,
and divisional manager.
ANS: F
These are typical titles for middle managers, not top managers. See Exhibit 1.2.
PTS: 1 DIF: Moderate REF: 9 TOP: AACSB Reflective
Thinking
KEY: Creation of Value | HRM
10. First-line managers are responsible for setting objectives consistent with organizational
goals and planning and implementing subunit strategies for achieving these objectives.
ANS: F
This is the responsibility of middle managers. See Exhibit 1.2.
, PTS: 1 DIF: Moderate REF: 9 TOP: AACSB Reflective
Thinking
KEY: Strategy
11. Bandai, the third-largest toy maker in the world, has embarked on a series of acquisitions in
an effort to become the leading toy maker in the world. The decision to adopt this goal was
most likely made by its top management.
ANS: T
See Exhibit 1.2.
PTS: 1 DIF: Easy REF: 9 TOP: AACSB Analytic
KEY: Leadership Principles| Strategy
12. Middle managers are typically responsible for coordinating and linking groups,
departments, and divisions within a company.
ANS: T
See Exhibit 1.2.
PTS: 1 DIF: Difficult REF: 9 TOP: AACSB Reflective
Thinking
KEY: Strategy| Group Dynamics
13. First-line managers are the only managers who do not supervise other managers.
ANS: T
See Exhibit 1.2.
PTS: 1 DIF: Easy REF: 9 TOP: AACSB Reflective
