TRUE/FALSE
1. 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 REF: 8-9
2. Companies look for a total of four sets of skills in individuals to identify potential managers.
These desired skills are technical skills, human skills, conceptual skills, and motivation to
manage.
ANS: T PTS: 1 REF: 23–24
3. First-line managers are the only managers who do not supervise other managers.
ANS: T PTS: 1 REF: 15-16
4. Human relations management focused on managers’ roles and authority.
ANS: F
Human relations management focused on the psychological and social aspects of work.
PTS: 1 REF: 58
,5. According to the principles of scientific management, work and the responsibility for the work
should be divided equally between workers and management.
ANS: T PTS: 1 REF: 47-49
6. Frank and Lillian Gilbreth studied the psychology of groups.
ANS: F
The Gilbreths are noted for their time and motion studies.
PTS: 1 REF: 50-51
7. Technological management involves managing the daily production of goods and services.
ANS: F
Operations management involves managing the daily production of goods and services.
PTS: 1 REF: 66-68
8. The two kinds of external organizational environments are the general environment that affects
all organizations and the specific environment that is unique to each company.
ANS: T PTS: 1 REF: 87
9. According to its rate of environmental change, an organization's environment can be either stable
or dynamic, but not both.
ANS: F
According to punctuated equilibrium theory, companies often experience both stable and dynamic
external environments.
, PTS: 1 REF: 83
10. Ethics is the set of moral principles or values that defines right and wrong for a person or group.
ANS: T PTS: 1 REF: 122
11. Under the U.S. Sentencing Commission Guidelines, companies can be prosecuted and punished
for the illegal or unethical actions of employees, even if management didn't know about the
unethical behavior.
ANS: T PTS: 1 REF: 127
12. The stakeholder model holds that the only social responsibility that businesses have is to
maximize profits.
ANS: F
This is the definition of the shareholder model. The stakeholder model holds that management's
most important responsibility is long-term survival (not just maximizing profits), which is
achieved by satisfying the interests of multiple corporate stakeholders (not just shareholders).
PTS: 1 REF: 145
13. The categories of social responsibility for a company are economic, legal, ethical, and
discretionary
ANS: T PTS: 1 REF: 147-149
14. S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely.
ANS: F
S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely.
, PTS: 1 REF: 172
15. Strategic plans specify how a company will use resources, budgets, and people to accomplish
specific goals within its strategic objective.
ANS: F
Tactical plans specify how a company will use resources, budgets, and people to accomplish
specific goals within its strategic objective.
PTS: 1 REF: 178
16. The process of decision making emphasizes the use of systematic procedures to arrive at optimal
solutions.
ANS: F
The process of decision making does not do this; what is described is rational decision making.
PTS: 1 REF: 183
17. Both absolute comparisons and relative comparisons are methods for identifying decision criteria.
ANS: F
These are methods for weighting the criteria, not identifying them.
PTS: 1 REF: 185-186
18. Because it is a time-consuming, labor-intensive, and expensive process, the Delphi technique is
best reserved for important long-term issues and problems.
ANS: T PTS: 1 REF: 193-194