Introduction to Business – Chapter 6 Test Bank | Entrepreneurship & Starting a Small Business Questions and Answers

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Chapter 6 MANAGEMENT AND LEADERSHIP IN TODAY’S ORGANIZATIONS


TRUE-FALSE QUESTIONS

Title: ANSWER: T REFERENCE: The Role of Management LEARNING OUTCOME: 1
1. Management is the process of guiding the development, maintenance, and allocation of objectives.
a. True
b. False

Title: ANSWER: T REFERENCE: The Role of Management LEARNING OUTCOME: 1
2. One of the basic functions of management is controlling.
a. True
b. False

Title: ANSWER: T REFERENCE: Planning LEARNING OUTCOME: 2
3. Planning is the process of deciding what needs to be done to achieve organizational objectives;
identifying when and how it will be done, and determining by whom it should be done.
a. True
b. False

Title: ANSWER: F REFERENCE: Planning LEARNING OUTCOME: 2 RATIONALE: Strategic planning must
always consider the organization's external and internal environment.
4. Strategic planning is long-range, formulated by top management, and made as if the company operated
in a vacuum
a. True
b. False

Title: ANSWER: F REFERENCE: Planning LEARNING OUTCOME: 2
RATIONALE: The lowest level of management uses operational planning
5. The lowest level of management is engaged in strategic planning process.
a. True
b. False

Title: ANSWER: F REFERENCE: Planning LEARNING OUTCOME: 2 RATIONALE: The short-range, detailed
planning that focuses on current operations is called operational planning.
6. The short-range, detailed planning that focuses on current operations is called functional planning.
a. True
b. False

Title: ANSWER: F REFERENCE: Organizing LEARNING OUTCOME: 2 RATIONALE: Even with contingency
plans, a manager cannot foresee all possible problems 7. A good manager is never faced with unforeseen
problems.
a. True
b. False
.

Title: ANSWER: T REFERENCE: Organizing LEARNING OUTCOME: 3
8. Arranging a firm's human and material resources to carry out plans is called organizing.

,a. True
b. False

Title: ANSWER: T REFERENCE: Organizing LEARNING OUTCOME: 3
9. Dividing up the tasks (division of labor) is an important part of organizing.
a. True
b. False

Title: ANSWER: T REFERENCE: Leading, Guiding, and Motivating Others LEARNING OUTCOME: 4
10. Leadership is the process of guiding and motivating others toward the achievement of organizational
goals.
a. True
b. False

Title: ANSWER: T REFERENCE: Leading, Guiding, and Motivating Others LEARNING OUTCOME: 4
11. A manager who makes one-directional decisions and seeks no input from her subordinates can be
described as having an autocratic leadership style.
a. True
b. False

Title: ANSWER: F REFERENCE: Leading, Guiding, and Motivating Others LEARNING OUTCOME: 4
RATIONALE: The three participative leadership styles are democratic, consensual, and consultative.
12. The three participative leadership styles are consultative, democratic, and socialistic.
a. True
b. False

Title: ANSWER: T REFERENCE: Controlling LEARNING OUTCOME: 5
13. Control is the mechanism for making sure the other three managerial functions--planning, organizing,
and leadership--are operating smoothly.
a. True
b. False

Title: ANSWER: F REFERENCE: Controlling LEARNING OUTCOME: 5 RATIONALE: The first step in the control
process is to set performance standards and goals.
14. The first step in setting up a control process is to measure performances.
a. True
b. False

Title: ANSWER: F REFERENCE: Controlling LEARNING OUTCOME: 5 RATIONALE: They are part of the
controlling function.
15. Performance standards and feedback are essential goals of the organizing function of management.
a. True
b. False

Title: ANSWER: T REFERENCE: Managerial Roles LEARNING OUTCOME: 6
16. A warehouse manager who is placing a reorder for maintenance supplies for delivery vehicles would be
making a programmed decision.
a. True
b. False

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, Title: ANSWER: T REFERENCE: Managerial Roles LEARNING OUTCOME: 6
17. Managers must act in interpersonal, informational, and decisional roles.
a. True
b. False

Title: ANSWER: F REFERENCE: Managerial Roles LEARNING OUTCOME: 6 RATIONALE: These would be
examples of acting in the interpersonal role.
18. A manager who is acting as a leader, figurehead, or a liaison is acting in the informational role.
a. True
b. False

Title: ANSWER: T REFERENCE: Managerial Skills LEARNING OUTCOME: 7
19. Technical skills are usually utilized at the lower levels of the organization.
a. True
b. False

Title: ANSWER: T REFERENCE: Managerial Skills LEARNING OUTCOME: 7
20. The ability to work with people and be sensitive to worker's needs are examples of human relations
skills.
a. True
b. False

Title: ANSWER: F REFERENCE: Managerial Skills LEARNING OUTCOME: 7 RATIONALE: Supervisory managers
need human relations skills.
21. Supervisory managers are the ones that primarily need to have strong conceptual skills.
a. True
b. False

Title: ANSWER: F REFERENCE: Managerial Skills LEARNING OUTCOME: 7 RATIONALE: This would be an
example of technical skills.
22. The ability to repair hospital diagnostic machines is an example of a conceptual skill.
a. True
b. False

Title: ANSWER: F REFERENCE: Trends in Management and Leadership EARNING OUTCOME: 8 RATIONALE: It
depends on his or her global management skills.
23. A manager’s ability to operate in diverse cultural environments depends primarily on his or her human
relations skills.
a. True
b. False

Title: ANSWER: F REFERENCE: Trends in Management and Leadership LEARNING OUTCOME: 8 RATIONALE:
Crisis can hit even the best-managed organizations.
24. Crisis, both internal and external, do not affect well-managed organizations.
a. True
b. False

Title: ANSWER: F REFERENCE: Trends in Management and Leadership LEARNING OUTCOME: 8
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