Chapter 01
Multiple Choice
1. Employment of medical and health services managers is expected to change by what percentage
between 2022 and 2032?
A) Plus 12.3%
B) Plus 50.5%
C) Minus 10.8%
D) Plus 28.4%
E) Minus 12.6%
Ans: D
Complexity: Easy
Ahead: Introduction
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Plus 28.4% from 2022 to 2032, faster than the average for all occupations
2. The internal domain of health care management includes which of the following?
A) Community demographics
B) Regulations
C) Budgeting
D) Managed care organizations/insurers
E) Competitors
Ans: C
Complexity: Easy
Ahead: The Need for Managers and Their Perspectives
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Table 1-2, Domains of Health Services Administration
3. As compared to senior managers, lower-level managers have:
A) more authority.
B) the same authority.
C) less authority.
D) authority that depends on experience.
E) authority that depends on education.
Ans: C
Complexity: Easy
Ahead: Management Positions: The Control in the Organizational Hierarchy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Management positions within health care organizations are not confined to the top level;
because of the size and complexity of many health care organizations, management positions are found
throughout the organization. Management positions exist at the lower, middle, and upper levels; the upper
level is referred to as senior management. The hierarchy of management means that authority, or power,
is delegated downward in the organization, and lower-level managers have less authority than higher-
level managers, whose scope of responsibility is much greater.
,4. An organization’s mission is defined as its:
A) goals.
B) desired future state.
C) values.
D) purpose.
E) ownership.
Ans: D
Complexity: Easy
Ahead: Role of the Manager in Establishing and Maintaining Organizational Culture
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Culture is shaped by the values, mission, and vision for the organization. Values are principles
the organization believes in and that shape the organization’s purpose, goals, and day-to-day behaviors.
Adopted values provide the foundation for the organization’s activities and include such principles as
respect, quality service, and innovation. The mission of the organization is its fundamental purpose, or
what the organization seeks to achieve. The vision of the organization specifies the desired future state
for the organization and reflects what the organization wants to be known and recognized for in the future.
Statements of values, mission, and vision result from the organizational strategic planning process. These
statements are communicated widely throughout the organization and to the community, and they shape
organizational strategic and operational actions.
5. Larger organizations are more likely to have all of the following, except:
A) vertical structure.
B) formal chain of command.
C) larger spans of control.
D) informal chain of command.
E) vertical structure and formal chain of command.
Ans: D
Complexity: Easy
Ahead: Management Positions: The Control in the Organizational Hierarchy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Larger organizations—such as large community hospitals, hospital systems, and academic
medical centers—will likely have deep vertical structures reflecting varying levels of administrative control
for the organization. This structure is necessary due to the large scope of services provided and the
corresponding vast array of administrative and support services that are needed to enable the delivery of
clinical services. Other characteristics associated with this functional structure include a strict chain of
command and line of reporting, which ensures communication, and assignment and evaluation of tasks
are carried out in a linear command and control environment. This structure offers key advantages, such
as specific divisions of labor and clear lines of reporting and accountability.
6. Succession planning is:
A) planning a career path within an organization.
B) a celebration of an organization’s success.
C) not important anymore.
D) an approach to replace managers who retire or move on.
E) None of these is correct.
Ans: D
Complexity: Easy
Ahead: Role of the Manager in Leadership Development and Succession Planning
Subject: Chapter 1
Title: An Overview of Health Care Management
,Feedback: Due to the competitive nature of health care organizations and the need for highly motivated
and skilled employees, managers are faced with the challenge of succession planning for their
organizations. Succession planning refers to the concept of taking actions to ensure staff can move up in
management roles within the organization to replace those managers who retire or move to other
opportunities in other organizations. Succession planning is hard, complex, and requires an “eyes-wide-
open” approach (Schlichting, 2020). To continue the emphasis on high performance within health care
organizations, CEOs and other senior managers are interested in finding and nurturing leadership talent
within their organizations who can assume the responsibility and carry forward the important work of
these organizations.
7. Which of the following is part of self-management?
A) Managing time and information
B) Being responsive
C) Keeping current
D) All of these are correct.
E) None of these is correct.
Ans: D
Complexity: Easy
Ahead: Focus of Management: Self, Unit/Team, and Organization
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Effective health care management involves exercising professional judgment and skills and
carrying out the aforementioned managerial functions at three levels: self, unit/team, and organization-
wide. First and foremost, individual managers must be able to effectively manage themselves. This
means managing time, information, space, and materials; being responsive and following through with
peers, supervisors, and clients; maintaining a positive attitude and high motivation; and keeping a current
understanding of management techniques and substantive issues of health care management. Drucker
(2005) suggests that managing yourself also involves knowing your strengths, how you perform, your
values, where you belong, and what you can contribute, as well as taking responsibility for your
relationships. Managing yourself also means developing and applying appropriate technical,
interpersonal, and conceptual skills and competencies and being comfortable with them, in order to be
able to effectively move to the next level—that of supervising others.
8. Health care management as a profession is characterized by all of the following, except:
A) education.
B) knowledge.
C) values.
D) skills.
E) roles.
Ans: E
Complexity: Easy
Ahead: Introduction
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Health care management is the profession that provides leadership and direction to
organizations that deliver personal and consumer health services and to divisions, departments, units, or
services within those organizations; those organizations will include direct care settings, as well as
traditional and alternative non–direct care settings. Like other professions, health care management is
characterized by formal education and training, common values, specialized knowledge and skills,
professional development, credentialing, and continuing education. Health care management provides
significant rewards and personal satisfaction for those who want to make a difference in the lives of
others.
, 9. To ensure a positive patient experience, a manager should do which of the following?
A) Understand all interactions between a patient and the organization.
B) Understand and meet patient needs and expectations.
C) Create a comfortable physical environment for receiving care.
D) None of these is correct.
E) All of these are correct.
Ans: E
Complexity: Easy
Ahead: Role of the Manager in Ensuring a Positive Patient Experience
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: The patient experience is defined as “the sum of all interactions, shaped by an organization’s
culture, that influence patient perceptions across the continuum of care” (Beryl Institute, 2018, para.1). To
ensure a positive patient experience, managers first need to understand the organizational processes of
providing care and support services, and the interactions of the patient with the organization. Many
managers have chosen to establish patient journeys and graphically portray them as patient journey
maps that depict the steps in receiving care from the perspective of the patient and the patient’s family
(Trebble et al, 2010). Such maps portray all interactions and touchpoints between the patient and the
organization. Managers also need to understand the needs and expectations of patients. Patients want to
be informed, respected, supported, and treated in a courteous and friendly way with empathy and
compassion. On the technical care side, patients want appropriate and timely care, provided in the right
way and at the right time. To the degree that these needs and expectations are met, patients tend to view
their experience positively. Finally, managers need to focus on and improve the physical environment of
care, which promotes access, comfort, and convenience for patients (Birkelien, 2017).
10. Recent research in health care management focuses on:
A) organizational best practices and leader behaviors.
B) organizational failures.
C) mentoring.
D) succession planning.
E) None of these is correct.
Ans: A
Complexity: Easy
Ahead: Opportunities for Research on Health Care Management
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Two key focal areas are the subject of current research in health care management: best
practices of managers and leaders, and leader behaviors.
11. Which of the following is the process of identifying a desired future state for an organization and a
means to achieve it?
A) Patient journey maps
B) Employee engagement
C) Strategic planning
D) Talent management
E) None of these is correct.
Ans: C
Complexity: Easy
Ahead: Role of the Manager in Strategic Planning and Strategy Development
Multiple Choice
1. Employment of medical and health services managers is expected to change by what percentage
between 2022 and 2032?
A) Plus 12.3%
B) Plus 50.5%
C) Minus 10.8%
D) Plus 28.4%
E) Minus 12.6%
Ans: D
Complexity: Easy
Ahead: Introduction
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Plus 28.4% from 2022 to 2032, faster than the average for all occupations
2. The internal domain of health care management includes which of the following?
A) Community demographics
B) Regulations
C) Budgeting
D) Managed care organizations/insurers
E) Competitors
Ans: C
Complexity: Easy
Ahead: The Need for Managers and Their Perspectives
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Table 1-2, Domains of Health Services Administration
3. As compared to senior managers, lower-level managers have:
A) more authority.
B) the same authority.
C) less authority.
D) authority that depends on experience.
E) authority that depends on education.
Ans: C
Complexity: Easy
Ahead: Management Positions: The Control in the Organizational Hierarchy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Management positions within health care organizations are not confined to the top level;
because of the size and complexity of many health care organizations, management positions are found
throughout the organization. Management positions exist at the lower, middle, and upper levels; the upper
level is referred to as senior management. The hierarchy of management means that authority, or power,
is delegated downward in the organization, and lower-level managers have less authority than higher-
level managers, whose scope of responsibility is much greater.
,4. An organization’s mission is defined as its:
A) goals.
B) desired future state.
C) values.
D) purpose.
E) ownership.
Ans: D
Complexity: Easy
Ahead: Role of the Manager in Establishing and Maintaining Organizational Culture
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Culture is shaped by the values, mission, and vision for the organization. Values are principles
the organization believes in and that shape the organization’s purpose, goals, and day-to-day behaviors.
Adopted values provide the foundation for the organization’s activities and include such principles as
respect, quality service, and innovation. The mission of the organization is its fundamental purpose, or
what the organization seeks to achieve. The vision of the organization specifies the desired future state
for the organization and reflects what the organization wants to be known and recognized for in the future.
Statements of values, mission, and vision result from the organizational strategic planning process. These
statements are communicated widely throughout the organization and to the community, and they shape
organizational strategic and operational actions.
5. Larger organizations are more likely to have all of the following, except:
A) vertical structure.
B) formal chain of command.
C) larger spans of control.
D) informal chain of command.
E) vertical structure and formal chain of command.
Ans: D
Complexity: Easy
Ahead: Management Positions: The Control in the Organizational Hierarchy
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Larger organizations—such as large community hospitals, hospital systems, and academic
medical centers—will likely have deep vertical structures reflecting varying levels of administrative control
for the organization. This structure is necessary due to the large scope of services provided and the
corresponding vast array of administrative and support services that are needed to enable the delivery of
clinical services. Other characteristics associated with this functional structure include a strict chain of
command and line of reporting, which ensures communication, and assignment and evaluation of tasks
are carried out in a linear command and control environment. This structure offers key advantages, such
as specific divisions of labor and clear lines of reporting and accountability.
6. Succession planning is:
A) planning a career path within an organization.
B) a celebration of an organization’s success.
C) not important anymore.
D) an approach to replace managers who retire or move on.
E) None of these is correct.
Ans: D
Complexity: Easy
Ahead: Role of the Manager in Leadership Development and Succession Planning
Subject: Chapter 1
Title: An Overview of Health Care Management
,Feedback: Due to the competitive nature of health care organizations and the need for highly motivated
and skilled employees, managers are faced with the challenge of succession planning for their
organizations. Succession planning refers to the concept of taking actions to ensure staff can move up in
management roles within the organization to replace those managers who retire or move to other
opportunities in other organizations. Succession planning is hard, complex, and requires an “eyes-wide-
open” approach (Schlichting, 2020). To continue the emphasis on high performance within health care
organizations, CEOs and other senior managers are interested in finding and nurturing leadership talent
within their organizations who can assume the responsibility and carry forward the important work of
these organizations.
7. Which of the following is part of self-management?
A) Managing time and information
B) Being responsive
C) Keeping current
D) All of these are correct.
E) None of these is correct.
Ans: D
Complexity: Easy
Ahead: Focus of Management: Self, Unit/Team, and Organization
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Effective health care management involves exercising professional judgment and skills and
carrying out the aforementioned managerial functions at three levels: self, unit/team, and organization-
wide. First and foremost, individual managers must be able to effectively manage themselves. This
means managing time, information, space, and materials; being responsive and following through with
peers, supervisors, and clients; maintaining a positive attitude and high motivation; and keeping a current
understanding of management techniques and substantive issues of health care management. Drucker
(2005) suggests that managing yourself also involves knowing your strengths, how you perform, your
values, where you belong, and what you can contribute, as well as taking responsibility for your
relationships. Managing yourself also means developing and applying appropriate technical,
interpersonal, and conceptual skills and competencies and being comfortable with them, in order to be
able to effectively move to the next level—that of supervising others.
8. Health care management as a profession is characterized by all of the following, except:
A) education.
B) knowledge.
C) values.
D) skills.
E) roles.
Ans: E
Complexity: Easy
Ahead: Introduction
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Health care management is the profession that provides leadership and direction to
organizations that deliver personal and consumer health services and to divisions, departments, units, or
services within those organizations; those organizations will include direct care settings, as well as
traditional and alternative non–direct care settings. Like other professions, health care management is
characterized by formal education and training, common values, specialized knowledge and skills,
professional development, credentialing, and continuing education. Health care management provides
significant rewards and personal satisfaction for those who want to make a difference in the lives of
others.
, 9. To ensure a positive patient experience, a manager should do which of the following?
A) Understand all interactions between a patient and the organization.
B) Understand and meet patient needs and expectations.
C) Create a comfortable physical environment for receiving care.
D) None of these is correct.
E) All of these are correct.
Ans: E
Complexity: Easy
Ahead: Role of the Manager in Ensuring a Positive Patient Experience
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: The patient experience is defined as “the sum of all interactions, shaped by an organization’s
culture, that influence patient perceptions across the continuum of care” (Beryl Institute, 2018, para.1). To
ensure a positive patient experience, managers first need to understand the organizational processes of
providing care and support services, and the interactions of the patient with the organization. Many
managers have chosen to establish patient journeys and graphically portray them as patient journey
maps that depict the steps in receiving care from the perspective of the patient and the patient’s family
(Trebble et al, 2010). Such maps portray all interactions and touchpoints between the patient and the
organization. Managers also need to understand the needs and expectations of patients. Patients want to
be informed, respected, supported, and treated in a courteous and friendly way with empathy and
compassion. On the technical care side, patients want appropriate and timely care, provided in the right
way and at the right time. To the degree that these needs and expectations are met, patients tend to view
their experience positively. Finally, managers need to focus on and improve the physical environment of
care, which promotes access, comfort, and convenience for patients (Birkelien, 2017).
10. Recent research in health care management focuses on:
A) organizational best practices and leader behaviors.
B) organizational failures.
C) mentoring.
D) succession planning.
E) None of these is correct.
Ans: A
Complexity: Easy
Ahead: Opportunities for Research on Health Care Management
Subject: Chapter 1
Title: An Overview of Health Care Management
Feedback: Two key focal areas are the subject of current research in health care management: best
practices of managers and leaders, and leader behaviors.
11. Which of the following is the process of identifying a desired future state for an organization and a
means to achieve it?
A) Patient journey maps
B) Employee engagement
C) Strategic planning
D) Talent management
E) None of these is correct.
Ans: C
Complexity: Easy
Ahead: Role of the Manager in Strategic Planning and Strategy Development
