MANAGEMENT- CONCEPTS, THEORY,
AND PRACTICE FINAL EXAM REVIEW
QUESTIONS & ACCURATE CORRECT
ANSWERS
What is Management? -three parts (ch1) - CORRECT ANSWER 1.The pursuit of
organizational goals efficiently and effectively by
2.Integrating the work of people through
3.Planning, organizing, leading, and controlling the organization's resources
What does it mean to be an "effective" manager? (ch1) - CORRECT ANSWER To be
effective means to achieve results, to make the right decisions and to successfully carry
them out so that they achieve the organization's goals
What does it mean to be an "efficient" manager? (ch1) - CORRECT ANSWER To be
efficient means to use resources-people, money, raw materials, like-wisely and cost-
effectively
What is the multiplier effect? (ch1) - CORRECT ANSWER When you receive results far
beyond what you could accomplish as a regualar employee, as a manager
What are the benefits of studying management if you don't want to become one? -four
parts (ch1) - CORRECT ANSWER 1. You will understand how to deal with
organizations from the outside
2. You will understand how to relate to your supervisors
3. You will understand how to interact with co-workers
4. You will understand how to manage yourself in the workplace
What is competitive advantage?
How do you manage for it?- four parts (ch1) - CORRECT ANSWER -The ability of an
organization to produce goods or services more effectively than competitors do, thereby
outperforming them
-Be responsive to customers, innovation, quality, efficiency
Why might customers tolerate poor customer service from your company? (ch1) -
CORRECT ANSWER Quality
What does it mean to say that the "world is flat"? (ch1) - CORRECT ANSWER
Globalization has leveled the competitive playing fields between industrial and emerging
market countries
,What are the four principle functions managers do? -explain each (ch1) - CORRECT
ANSWER 1. Planning-you set goals and decide how to achieve them
2. Organizing-you arrange tasks, people, and other resources to accomplish the work
3. Leading-you motivate, direct, and otherwise influence people to work hard to achieve
the organization's goals
4. Controlling-you monitor performance, compare it with goals, and take corrective
action as needed
What is sustainability? (ch1) - CORRECT ANSWER Economic development that meets
the needs of the present without compromising the ability of future generations to meet
their own needs
What is the definition of planning? -two parts (ch5) - CORRECT ANSWER 1. Coping
with uncertainty by formulating future courses of action to achieved specified results
2. Setting goals and deciding how to achieve them
What are the three benefits of planning? (ch5) - CORRECT ANSWER 1. Provide
direction and momentum
2. Encourage new ideas
3. Develop a sustainable competitive advantage.
What are the four basic strategy types companies can adopt to respond to uncertainty in
their environment? (ch5) - CORRECT ANSWER 1. Defenders- are experts at
producing and selling narrowly defined products or services. "lets stick with what we do
best, avoid other involvements"
2. Prospectors-focus on developing new products or services and in seeking out new
markets, rather that waiting for things to happen. "Lets create our own opportunities, not
wait for them to happen"
3. Analyzers- let other organizations take the risk of product development and marketing
and then imitate (or perhaps slightly improve on) what seem to work best.
4. Reactors- are organizations in which top managers frequently perceive change and
uncertainty occurring in their organizational environments
but are unable to respond effectively.
Because this type of organization lacks a consistent strategy-structure relationship, it
seldom makes adjustments of any sort until forced to do so by environmental pressures
What is the correct order of planning steps such as the mission statement or vision
statement? (ch5) - CORRECT ANSWER 1. Establish the mission and vision
2. Assess the current reality
3. Formulate the grand strategy and strategic, tactical, and operational plans
4. Implement the strategy
5. Maintain strategic control
, What is strategic, tactical, and operational planning? -Three parts (ch5) - CORRECT
ANSWER -Top managers determine what the organization's long-term goals should be
for the next 1-5 years with the resources they expect to have available
-Middle managers determine what contributions their departments or similar work units
can make during the next 6-24 months
-First-line managers determine how to accomplish specific tasks with available
resources within the next 1-52 weeks
What are the time frames for different types of planning? -strategic, tactical, operational
(ch5) - CORRECT ANSWER -Strategic is for the next 1-5 years
-Tactical is for the next 6-24 months
-Operational is for the next 1-52 weeks
What does SMART mean? (ch5) - CORRECT ANSWER -Specific
-Measurable
-Attainable
-Result Oriented
-Target dates
What is the planning/control cycle for goals and objectives? (ch5) - CORRECT
ANSWER 1. Make the plan
2. Carry out the plan
3. Control the direction by comparing results with the plan
4. Control the direction by taking corrective action in two ways
a. Correcting deviations in the plan being carried out
b. Improving future plans
What is the adaptive cycle? (ch5) - CORRECT ANSWER Portrays business as
continuously cycling through decisions about three kinds of business problems
1. Entrepreneurial (selecting and making adjustments of products and markets)
2. Engineering (producing and delivering the products) 3. Administrative (establishing
roles, relationships, and organizational processes)
What is the definition of strategy? (ch6) - CORRECT ANSWER A method or plan
chosen to bring about a desired future, such as achievement of a goal or solution to a
problem
What levels of management are involved in strategy management? (ch6) - CORRECT
ANSWER -The top level management is responsible for defining strategies to achieve
goals
-The middle level management is responsible for receiving overall strategies from top
management and translating them into specific objectives and programs for first line
management
What are the steps in the strategic management process? -five parts (ch6) - CORRECT
ANSWER 1. Establish the mission and vision
AND PRACTICE FINAL EXAM REVIEW
QUESTIONS & ACCURATE CORRECT
ANSWERS
What is Management? -three parts (ch1) - CORRECT ANSWER 1.The pursuit of
organizational goals efficiently and effectively by
2.Integrating the work of people through
3.Planning, organizing, leading, and controlling the organization's resources
What does it mean to be an "effective" manager? (ch1) - CORRECT ANSWER To be
effective means to achieve results, to make the right decisions and to successfully carry
them out so that they achieve the organization's goals
What does it mean to be an "efficient" manager? (ch1) - CORRECT ANSWER To be
efficient means to use resources-people, money, raw materials, like-wisely and cost-
effectively
What is the multiplier effect? (ch1) - CORRECT ANSWER When you receive results far
beyond what you could accomplish as a regualar employee, as a manager
What are the benefits of studying management if you don't want to become one? -four
parts (ch1) - CORRECT ANSWER 1. You will understand how to deal with
organizations from the outside
2. You will understand how to relate to your supervisors
3. You will understand how to interact with co-workers
4. You will understand how to manage yourself in the workplace
What is competitive advantage?
How do you manage for it?- four parts (ch1) - CORRECT ANSWER -The ability of an
organization to produce goods or services more effectively than competitors do, thereby
outperforming them
-Be responsive to customers, innovation, quality, efficiency
Why might customers tolerate poor customer service from your company? (ch1) -
CORRECT ANSWER Quality
What does it mean to say that the "world is flat"? (ch1) - CORRECT ANSWER
Globalization has leveled the competitive playing fields between industrial and emerging
market countries
,What are the four principle functions managers do? -explain each (ch1) - CORRECT
ANSWER 1. Planning-you set goals and decide how to achieve them
2. Organizing-you arrange tasks, people, and other resources to accomplish the work
3. Leading-you motivate, direct, and otherwise influence people to work hard to achieve
the organization's goals
4. Controlling-you monitor performance, compare it with goals, and take corrective
action as needed
What is sustainability? (ch1) - CORRECT ANSWER Economic development that meets
the needs of the present without compromising the ability of future generations to meet
their own needs
What is the definition of planning? -two parts (ch5) - CORRECT ANSWER 1. Coping
with uncertainty by formulating future courses of action to achieved specified results
2. Setting goals and deciding how to achieve them
What are the three benefits of planning? (ch5) - CORRECT ANSWER 1. Provide
direction and momentum
2. Encourage new ideas
3. Develop a sustainable competitive advantage.
What are the four basic strategy types companies can adopt to respond to uncertainty in
their environment? (ch5) - CORRECT ANSWER 1. Defenders- are experts at
producing and selling narrowly defined products or services. "lets stick with what we do
best, avoid other involvements"
2. Prospectors-focus on developing new products or services and in seeking out new
markets, rather that waiting for things to happen. "Lets create our own opportunities, not
wait for them to happen"
3. Analyzers- let other organizations take the risk of product development and marketing
and then imitate (or perhaps slightly improve on) what seem to work best.
4. Reactors- are organizations in which top managers frequently perceive change and
uncertainty occurring in their organizational environments
but are unable to respond effectively.
Because this type of organization lacks a consistent strategy-structure relationship, it
seldom makes adjustments of any sort until forced to do so by environmental pressures
What is the correct order of planning steps such as the mission statement or vision
statement? (ch5) - CORRECT ANSWER 1. Establish the mission and vision
2. Assess the current reality
3. Formulate the grand strategy and strategic, tactical, and operational plans
4. Implement the strategy
5. Maintain strategic control
, What is strategic, tactical, and operational planning? -Three parts (ch5) - CORRECT
ANSWER -Top managers determine what the organization's long-term goals should be
for the next 1-5 years with the resources they expect to have available
-Middle managers determine what contributions their departments or similar work units
can make during the next 6-24 months
-First-line managers determine how to accomplish specific tasks with available
resources within the next 1-52 weeks
What are the time frames for different types of planning? -strategic, tactical, operational
(ch5) - CORRECT ANSWER -Strategic is for the next 1-5 years
-Tactical is for the next 6-24 months
-Operational is for the next 1-52 weeks
What does SMART mean? (ch5) - CORRECT ANSWER -Specific
-Measurable
-Attainable
-Result Oriented
-Target dates
What is the planning/control cycle for goals and objectives? (ch5) - CORRECT
ANSWER 1. Make the plan
2. Carry out the plan
3. Control the direction by comparing results with the plan
4. Control the direction by taking corrective action in two ways
a. Correcting deviations in the plan being carried out
b. Improving future plans
What is the adaptive cycle? (ch5) - CORRECT ANSWER Portrays business as
continuously cycling through decisions about three kinds of business problems
1. Entrepreneurial (selecting and making adjustments of products and markets)
2. Engineering (producing and delivering the products) 3. Administrative (establishing
roles, relationships, and organizational processes)
What is the definition of strategy? (ch6) - CORRECT ANSWER A method or plan
chosen to bring about a desired future, such as achievement of a goal or solution to a
problem
What levels of management are involved in strategy management? (ch6) - CORRECT
ANSWER -The top level management is responsible for defining strategies to achieve
goals
-The middle level management is responsible for receiving overall strategies from top
management and translating them into specific objectives and programs for first line
management
What are the steps in the strategic management process? -five parts (ch6) - CORRECT
ANSWER 1. Establish the mission and vision
