Ch01
Student: ___________________________________________________________________________
1. Organizations are collections of people who work together and coordinate their actions to achieve a wide
variety of goals, or desired future outcomes.
True False
2. The planning, organizing, leading, and controlling of human and other resources to achieve
organizational goals efficiently and effectively is known as management.
True False
3. Organizations are efficient when managers maximize the amount of input resources.
True False
4. The number of students competing for places in business courses is on a constant decline.
True False
5. Managers at all levels and in all departments are responsible for planning, organizing, leading, and
controlling.
True False
6. Identifying and selecting appropriate organizational goals and courses of action help managers perform
the planning task.
True False
7. Planning strategy is clear and easy, especially because planning is done under certainty when the result is
known.
True False
8. The outcome of organizing is the creation of a strategy.
True False
9. An organization's vision is a short, succinct, and inspiring statement of what the organization intends to
become and the goals it is seeking to achieve.
True False
10. The controlling task helps managers evaluate how well they themselves are performing the other three
tasks of management—planning, organizing, and leading—and take corrective action.
True False
11. The top-line managers form the base of the managerial hierarchy.
True False
12. The middle managers supervise the supervisors.
True False
13. In contrast to middle managers, top managers are responsible for the performance of specific
departments.
True False
14. The chief executive officer is a company's most senior and important manager, the one all other top
managers report to.
True False
15. Today, the term "chief operating officer" refers to the chief executive officer.
True False
,16. Conceptual skills include the general ability to understand, alter, lead, and control the behavior of other
individuals and groups.
True False
17. Human skills can be learned through education and training, as well as be developed through
experience.
True False
18. The array of technical skills managers need is independent of the position they hold in their
organizations.
True False
19. Departmental skills that create a core competency give an organization a competitive advantage.
True False
20. Restructuring involves contracting with another company, in a low-cost country abroad, to have it
perform a work activity the organization previously performed itself.
True False
21. Restructuring results in the loss of jobs.
True False
22. Outsourcing decreases efficiency because it increases operating costs.
True False
23. Companies use their reward systems to promote empowerment.
True False
24. When employees start using information technology (IT), they start losing their autonomy.
True False
25. A self-managed team refers to a group of employees who assume collective responsibility for organizing,
controlling, and supervising their own work activities.
True False
26. Not-for-profit sectors are not affected by global competition.
True False
27. The four building blocks of competitive advantage are superior efficiency, quality, innovation, and
responsiveness to customers.
True False
28. An organization's efficiency decreases when it reduces the quantity of resources it uses to produce goods
or services.
True False
29. Innovation is the process of creating new or improved goods and services that customers want.
True False
30. Typically innovation takes place in small groups or teams.
True False
31. Innovation takes place when management centralizes control of work activities and creates an
organizational culture that precludes risk taking.
True False
32. Turnaround management is the creation of a new vision for a struggling company based on a new
approach to planning and organizing to make better use of a company's resources and allow it to survive
and prosper.
True False
,33. Organizations appoint turnaround CEOs when the organizations become more efficient and effective.
True False
34. Pressure to increase performance may induce managers to behave unethically.
True False
35. Managers seldom find it difficult to manage the diversity in today's workforce.
True False
36. Which of the following is NOT true about management and organizational resources?
A. Organizations are collections of people who work together to achieve a wide variety of goals.
B. Managers are responsible for making the most of an organization's human resources to achieve its
goals.
C Management is the planning, organizing, leading, and controlling of human and other resources to
. achieve organizational goals efficiently and effectively.
D. An organization's resources include assets such as machinery, raw materials, and computers and
information technology.
E. Organizational performance increases in an indirect proportion to increases in efficiency and
effectiveness.
37. Which of the following is an appropriate definition of organizational performance?
A.It is the process of obtaining, analyzing, and recording information about the relative worth of an
employee to the organization.
B It is a measure of how efficiently and effectively managers use available resources to satisfy customers
. and achieve organizational goals.
C It is an approach to modeling organizations using one-on-one interactions between members of the
. organization as a proxy for all value-adding activities in the organization.
D It is a management framework that uses and integrates existing management methods and techniques to
. help teams deliver ever-improving services.
E. It is a measure of the interaction between the managerial culture, the workplace culture, and the
surrounding culture.
38. _____ is a measure of how productively resources are used to achieve a goal.
A. Validity
B. Generalizability
C. Efficiency
D. Effectiveness
E. Reliability
39. Which of the following is true of efficiency?
A. It is a measure of the appropriateness of the goals that managers have selected for the organization to
pursue.
B. Organizations are efficient when managers choose appropriate goals and then achieve them.
C. Lesser the efficiency, higher the organizational performance.
D. Organizations are efficient when managers minimize the amount of input resources.
E. Organizations are efficient when managers maximize the amount of time needed to produce a given
output of goods.
40. _____ is a measure of the appropriateness of the goals that managers have selected for the organization to
pursue and the degree to which the organization achieves those goals.
A. Efficiency
B. Generalizability
C. Reliability
D. Utility
E. Effectiveness
, 41. Which of the following is true of effectiveness?
A. Organizational performance increases in direct proportion to increase in effectiveness.
B. Organizations are effective when managers minimize the time needed to produce a given output of
services.
C. It is a measure of how productively resources are used to achieve a goal.
D. Organizations are effective when managers minimize the amount of input resources.
E. Effectiveness is related to performance but not efficiency.
42. Which of the following is true of low efficiency/high effectiveness situations?
A. They arise when managers choose the wrong goals to pursue and make poor use of resources.
B. They arise when managers choose the right goals to pursue, but do a poor job of using resources to
achieve these goals.
C. They arise when managers choose the right goals to pursue and make good use of resources to achieve
these goals.
D. They result in the production of a low-quality product that customers do not want.
E. They result in the production of a high-quality product that customers do not want.
43. High efficiency/high effectiveness situations:
A. arise when managers choose the wrong goals to pursue and make poor use of resources.
B. result in the production of a low-quality product that customers do not want.
C. result in the production of a product that customers want at a quality and price that they can afford.
D. result in the production of a product that customers want, but that is too expensive for them to buy.
E. arise when managers choose inappropriate goals, but make good use of resources to pursue these goals.
44. Which of the following is true of low efficiency/low effectiveness situations?
A. They arise when managers choose the right goals to pursue, but do a poor job of using resources to
achieve these goals.
B. They result in the production of a product that customers want, but that is too expensive for them to
buy.
C. They result in the production of a product that customers want at a quality and price that they can
afford.
D. They arise when managers choose the wrong goals to pursue and make poor use of resources.
E. They arise when managers choose inappropriate goals, but make good use of resources to pursue these
goals.
45. The goals chosen by the management of Dino's Cafe seemed inappropriate for the store, but the
management did make good use of the various resources in pursuing these goals. Dino's Cafe is said to
have:
A. low efficiency and high effectiveness.
B. high efficiency and high effectiveness.
C. low efficiency and low effectiveness.
D. low conceptual skills and low human skills.
E. high efficiency and low effectiveness.
46. In what order do managers typically perform the managerial functions?
A. Organizing, planning, controlling, leading
B. Organizing, leading, planning, controlling
C. Planning, organizing, leading, controlling
D. Planning, organizing, controlling, leading
E. Leading, organizing, planning, controlling
47. To perform the _____ task, managers identify and select appropriate organizational goals and courses of
action.
A. planning
B. organizing
C. leading
D. controlling
E. commanding
Student: ___________________________________________________________________________
1. Organizations are collections of people who work together and coordinate their actions to achieve a wide
variety of goals, or desired future outcomes.
True False
2. The planning, organizing, leading, and controlling of human and other resources to achieve
organizational goals efficiently and effectively is known as management.
True False
3. Organizations are efficient when managers maximize the amount of input resources.
True False
4. The number of students competing for places in business courses is on a constant decline.
True False
5. Managers at all levels and in all departments are responsible for planning, organizing, leading, and
controlling.
True False
6. Identifying and selecting appropriate organizational goals and courses of action help managers perform
the planning task.
True False
7. Planning strategy is clear and easy, especially because planning is done under certainty when the result is
known.
True False
8. The outcome of organizing is the creation of a strategy.
True False
9. An organization's vision is a short, succinct, and inspiring statement of what the organization intends to
become and the goals it is seeking to achieve.
True False
10. The controlling task helps managers evaluate how well they themselves are performing the other three
tasks of management—planning, organizing, and leading—and take corrective action.
True False
11. The top-line managers form the base of the managerial hierarchy.
True False
12. The middle managers supervise the supervisors.
True False
13. In contrast to middle managers, top managers are responsible for the performance of specific
departments.
True False
14. The chief executive officer is a company's most senior and important manager, the one all other top
managers report to.
True False
15. Today, the term "chief operating officer" refers to the chief executive officer.
True False
,16. Conceptual skills include the general ability to understand, alter, lead, and control the behavior of other
individuals and groups.
True False
17. Human skills can be learned through education and training, as well as be developed through
experience.
True False
18. The array of technical skills managers need is independent of the position they hold in their
organizations.
True False
19. Departmental skills that create a core competency give an organization a competitive advantage.
True False
20. Restructuring involves contracting with another company, in a low-cost country abroad, to have it
perform a work activity the organization previously performed itself.
True False
21. Restructuring results in the loss of jobs.
True False
22. Outsourcing decreases efficiency because it increases operating costs.
True False
23. Companies use their reward systems to promote empowerment.
True False
24. When employees start using information technology (IT), they start losing their autonomy.
True False
25. A self-managed team refers to a group of employees who assume collective responsibility for organizing,
controlling, and supervising their own work activities.
True False
26. Not-for-profit sectors are not affected by global competition.
True False
27. The four building blocks of competitive advantage are superior efficiency, quality, innovation, and
responsiveness to customers.
True False
28. An organization's efficiency decreases when it reduces the quantity of resources it uses to produce goods
or services.
True False
29. Innovation is the process of creating new or improved goods and services that customers want.
True False
30. Typically innovation takes place in small groups or teams.
True False
31. Innovation takes place when management centralizes control of work activities and creates an
organizational culture that precludes risk taking.
True False
32. Turnaround management is the creation of a new vision for a struggling company based on a new
approach to planning and organizing to make better use of a company's resources and allow it to survive
and prosper.
True False
,33. Organizations appoint turnaround CEOs when the organizations become more efficient and effective.
True False
34. Pressure to increase performance may induce managers to behave unethically.
True False
35. Managers seldom find it difficult to manage the diversity in today's workforce.
True False
36. Which of the following is NOT true about management and organizational resources?
A. Organizations are collections of people who work together to achieve a wide variety of goals.
B. Managers are responsible for making the most of an organization's human resources to achieve its
goals.
C Management is the planning, organizing, leading, and controlling of human and other resources to
. achieve organizational goals efficiently and effectively.
D. An organization's resources include assets such as machinery, raw materials, and computers and
information technology.
E. Organizational performance increases in an indirect proportion to increases in efficiency and
effectiveness.
37. Which of the following is an appropriate definition of organizational performance?
A.It is the process of obtaining, analyzing, and recording information about the relative worth of an
employee to the organization.
B It is a measure of how efficiently and effectively managers use available resources to satisfy customers
. and achieve organizational goals.
C It is an approach to modeling organizations using one-on-one interactions between members of the
. organization as a proxy for all value-adding activities in the organization.
D It is a management framework that uses and integrates existing management methods and techniques to
. help teams deliver ever-improving services.
E. It is a measure of the interaction between the managerial culture, the workplace culture, and the
surrounding culture.
38. _____ is a measure of how productively resources are used to achieve a goal.
A. Validity
B. Generalizability
C. Efficiency
D. Effectiveness
E. Reliability
39. Which of the following is true of efficiency?
A. It is a measure of the appropriateness of the goals that managers have selected for the organization to
pursue.
B. Organizations are efficient when managers choose appropriate goals and then achieve them.
C. Lesser the efficiency, higher the organizational performance.
D. Organizations are efficient when managers minimize the amount of input resources.
E. Organizations are efficient when managers maximize the amount of time needed to produce a given
output of goods.
40. _____ is a measure of the appropriateness of the goals that managers have selected for the organization to
pursue and the degree to which the organization achieves those goals.
A. Efficiency
B. Generalizability
C. Reliability
D. Utility
E. Effectiveness
, 41. Which of the following is true of effectiveness?
A. Organizational performance increases in direct proportion to increase in effectiveness.
B. Organizations are effective when managers minimize the time needed to produce a given output of
services.
C. It is a measure of how productively resources are used to achieve a goal.
D. Organizations are effective when managers minimize the amount of input resources.
E. Effectiveness is related to performance but not efficiency.
42. Which of the following is true of low efficiency/high effectiveness situations?
A. They arise when managers choose the wrong goals to pursue and make poor use of resources.
B. They arise when managers choose the right goals to pursue, but do a poor job of using resources to
achieve these goals.
C. They arise when managers choose the right goals to pursue and make good use of resources to achieve
these goals.
D. They result in the production of a low-quality product that customers do not want.
E. They result in the production of a high-quality product that customers do not want.
43. High efficiency/high effectiveness situations:
A. arise when managers choose the wrong goals to pursue and make poor use of resources.
B. result in the production of a low-quality product that customers do not want.
C. result in the production of a product that customers want at a quality and price that they can afford.
D. result in the production of a product that customers want, but that is too expensive for them to buy.
E. arise when managers choose inappropriate goals, but make good use of resources to pursue these goals.
44. Which of the following is true of low efficiency/low effectiveness situations?
A. They arise when managers choose the right goals to pursue, but do a poor job of using resources to
achieve these goals.
B. They result in the production of a product that customers want, but that is too expensive for them to
buy.
C. They result in the production of a product that customers want at a quality and price that they can
afford.
D. They arise when managers choose the wrong goals to pursue and make poor use of resources.
E. They arise when managers choose inappropriate goals, but make good use of resources to pursue these
goals.
45. The goals chosen by the management of Dino's Cafe seemed inappropriate for the store, but the
management did make good use of the various resources in pursuing these goals. Dino's Cafe is said to
have:
A. low efficiency and high effectiveness.
B. high efficiency and high effectiveness.
C. low efficiency and low effectiveness.
D. low conceptual skills and low human skills.
E. high efficiency and low effectiveness.
46. In what order do managers typically perform the managerial functions?
A. Organizing, planning, controlling, leading
B. Organizing, leading, planning, controlling
C. Planning, organizing, leading, controlling
D. Planning, organizing, controlling, leading
E. Leading, organizing, planning, controlling
47. To perform the _____ task, managers identify and select appropriate organizational goals and courses of
action.
A. planning
B. organizing
C. leading
D. controlling
E. commanding
