Principle of Management Test Bank PDF

Management, 14e, Global Edition (Robbins/Coulter) Chapter 1 Managers and You in the Workplace 1) Time should be considered a(n) ________ resource. A) abundant B) diminishing C) limited D) renewable Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj: LO 1.1: Tell who managers are and where th...

Management, 14e, Global Edition (Robbins/Coulter) Chapter 1 Managers and You in the Workplace 1) Time should be considered a(n) ________ resource. A) abundant B) diminishing C) limited D) renewable Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 2) One method to become more efficient in managing your time is to ________. A) classify each activity or task as A, B, or C B) schedule more in one day than you can reasonably expect to finish C) enlist the aid of a management coach to keep you on task D) shorten deadlines so you will be pressed to complete tasks early Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 3) Technology makes it easier to stay connected but ________. A) there is always the risk of security breaches and the theft of information necessary for good time management practices B) it raises expectations on the part of those to whom we are connected C) technology fails, batteries lose power, and their effectiveness wanes D) it also presents constant distractions, making it difficult to stay on task Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Critical thinking 1 Copyright © 2018 Pearson Education, Ltd. 4) In today's workplace, ________. A) women are more likely than men to be promoted into management B) many employees perform work that in the past was considered managerial activities C) women tend to be more effective supervisors than men D) most organizations have eliminated the title of manager Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 5) Because this is her first job, Melanie was unclear about what managers actually do. Fortunately her training materials explained that a manager's job focuses on ________. A) performing clerical duties B) personal achievement C) helping others accomplish their work goals D) supervising groups rather than individual employees Answer: C Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 6) An individual who works with and through other people by coordinating their work activities in order to accomplish organizational goals is ________. A) an assembly line worker B) a laborer C) a manager D) a salesperson Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 2 Copyright © 2018 Pearson Education, Ltd. 7) As part of the orientation for her internship, Rebecca was informed that ________ are the people who direct the activities of others in an organization. A) directors B) managers C) subordinates D) line workers Answer: B Diff: 1 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 8) The organizational chart shows titles such as front-line manager, plant manager, and vice president of operations. It is very likely this organization has a ________. A) traditional committee structure B) traditional pyramid structure C) modern matrix structure D) flexible structure Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 9) First-line managers are typically those who ________. A) perform the same work as the people they manage but earn more money B) are typically involved with producing the organization's products or providing its service C) are at the top of the organizational chart D) are the first persons new hires meet Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Analytical 3 Copyright © 2018 Pearson Education, Ltd. 10) Supervisor is another name for ________. A) team leader B) middle manager C) first-line manager D) top manager Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 11) A ________ is an example of a first-line manager. A) division manager B) store manager C) regional manager D) shift manager Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 12) Kelly, a production supervisor, is responsible for ten employees who assemble components into a finished product. Kelly is a ________. A) top manager B) nonmanagerial employee C) middle manager D) first-line manager Answer: D Diff: 1 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 4 Copyright © 2018 Pearson Education, Ltd. 13) Managers with titles such as regional manager, project leader, or division manager are ________. A) first-line managers B) top managers C) production managers D) middle managers Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 14) Ben, a production plant manager, reports to Dan, a regional manager. Ben and Dan are ________. A) top managers B) middle managers C) supervisors D) first-line managers Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 15) ________ are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. A) Middle managers B) Top managers C) Production managers D) Research managers Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 5 Copyright © 2018 Pearson Education, Ltd. 16) Tom is responsible for project managers who supervise others who perform manual work. He reports to a vice president on another continent. Tom is a ________. A) first line manager B) middle manager C) top manager D) nonmanager Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 17) ________ have titles such as executive vice president, chief operating officer, and chief executive officer. A) Supervisors B) Middle managers C) First-line managers D) Top managers Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 18) Kenneth is a vice president of operations. His position would be regarded as a ________. A) top manager B) supervisor C) middle manager D) first-line manager Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 6 Copyright © 2018 Pearson Education, Ltd. 19) Blue Fin and ChrisCraft, two boat manufacturers, have merged. Top managers now must decide how the work will be divided and who will do what work. Such an arrangement makes up a(n) ________. A) strategic partnership B) coalition C) organization D) affinity group Answer: C Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 20) Andrew is reviewing next week's orders, scheduling orders to machines, and assigning employees to run those machines. Andrew is engaged in ________. A) planning B) organizing C) leading D) controlling Answer: A Diff: 2 AACSB: Application of knowledge; Analytical thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Application 21) Today's managers are just as likely to be women as they are men. Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 22) A manager must coordinate and oversee the work of other people so that organizational goals can be accomplished. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 7 Copyright © 2018 Pearson Education, Ltd. 23) A manager's job is all about personal achievement. Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 24) In traditionally structured organizations, managers can be classified as first-line managers, middle managers, or top managers. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 25) Middle managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 26) One of the most difficult aspects of the increasing use of technology in the workplace has been to make employees comfortable around robots. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Critical thinking 8 Copyright © 2018 Pearson Education, Ltd. 27) Explain briefly how the definition of a manager has changed over time. Answer: Managers used to be defined as the organizational members who told others what to do and how to do it. In the past, it was easy to differentiate managers from nonmanagerial employees. Nonmanagers were organizational members who worked directly on a job or task and had no one reporting to them. Managers were those who supervised other employees. Today, the changing nature of organizations and work has blurred the distinction between managers and nonmanagerial employees. Many traditional nonmanagerial jobs now include managerial activities. Most employees are multi-skilled and are being cross trained. Within a single shift, an employee can be a team leader, equipment operator, maintenance technician, quality inspector, or improvement planner. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 28) Describe and provide examples of first-line, middle, and top managers. Answer: a. First-line managers are the lowest level of management and manage the work of nonmanagerial individuals who are directly involved with the production or creation of the organization's products or servicing its customers. First-line managers are often called supervisors or even shift managers, district managers, department managers, or office managers. b. Middle managers are found between the lowest and top levels of the organization. These managers manage the work of first-line managers and may have titles such as department head, project leader, store manager, or division manager. c. Top managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, or chief executive officer. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.1: Tell who managers are and where they work; Know how to manage your time Classification: Concept 29) A great manager can inspire employees professionally and personally. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.2: Explain why managers are important to an organization Classification: Concept 9 Copyright © 2018 Pearson Education, Ltd. 30) Managers play an important role in dealing with various challenges being faced by organizations today. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.2: Explain why managers are important to an organization Classification: Concept 31) Identify and discuss three reasons managers are still important even in the changing organizational structures in use today. Answer: a. The first reason why managers are important is because organizations need their managerial skills and abilities more than ever in uncertain, complex, and chaotic times. As organizations deal with today's challenges–changing workforce dynamics, the worldwide economic climate, changing technology, ever-increasing globalization, and so forth–managers play an important role in identifying critical issues and crafting responses. b. Another reason why managers are important to organizations is because they're critical to getting things done. They create and coordinate the workplace environment and work systems so that others can perform those tasks. Or, if work isn't getting done or isn't getting done as it should be, they're the ones who find out why and get things back on track. And these managers are key players in leading the company into the future. c. Finally, managers do matter to organizations. The single most important variable in employee productivity and loyalty isn't pay or benefits or workplace environment–it's the quality of the relationship between employees and their direct supervisors. The way a company manages and engages its people can significantly affect its financial performance. Leadership is the single largest influence on employee engagement. Managerial ability is important in creating organizational value. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.2: Explain why managers are important to an organization Classification: Concept 32) Donald's ability to complete activities efficiently and effectively with and through other people is known as ________. A) management B) leadership C) entrepreneurship D) delegation Answer: A Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 10 Copyright © 2018 Pearson Education, Ltd. 33) ________ involves ensuring that work activities are completed efficiently and effectively by the people responsible for doing them. A) Leading B) Managing C) Planning D) Organizing Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 34) Which one of the following is an example of an efficient manufacturing technique? A) reducing the amount of scrap created in the process of making a product B) increasing the amount of time to manufacture products C) increasing product reject rates D) meeting customers' rigorous demand Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 35) Wasting resources is considered to be an example of ________. A) inefficacy B) ineffableness C) inefficiency D) ineffectiveness Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 36) An automobile manufacturer increased the total number of cars produced while keeping the production costs the same. The manufacturer ________. A) increased its equity B) increased its efficiency C) increased its effectiveness D) increased its effort Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 11 Copyright © 2018 Pearson Education, Ltd. 37) Ellen's ability to produce the same amount of product with fewer personnel is a reflection of her ________. A) effectiveness B) organizing skills C) leadership D) efficiency Answer: D Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 38) Effectiveness is associated with ________. A) reducing inventory B) decreasing production time C) doing the right things D) doing things right Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 39) Whereas ________ is concerned with the means of getting things done, ________ is concerned with the ends, or attainment of organizational goals. A) effectiveness; efficiency B) efficiency; effectiveness C) effort; efficiency D) efficiency; experience Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 40) The fact that Eileen achieves her departmental goals is an indication of her ________ as a manager. A) leadership B) effectiveness C) efficiency D) attention to detail Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 12 Copyright © 2018 Pearson Education, Ltd. 41) If your team quickly painted the wall but discovered afterward it was the wrong wall, your team would be ________. A) efficient but ineffective B) efficient and effective C) effective but inefficient D) neither effective nor efficient Answer: A Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 42) If Fiona accomplishes her projects with high-quality results, but takes more time than other managers in the process, as a manager she is ________. A) efficient, but ineffective B) a leader, but not a top manager C) project oriented, but not effective D) effective, but inefficient Answer: D Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 43) More than a hundred years ago, Henri Fayol proposed that managers performed five functions. They were ________. A) planning, organizing, directing, evaluating, and controlling B) organizing, directing, coordinating, evaluating, and controlling C) planning, organizing, directing, coordinating, and controlling D) planning, organizing, commanding, coordinating, and controlling Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 44) Today, the basic management functions include ________. A) planning, organizing, commanding, and coordinating B) planning, organizing, coordinating, and controlling C) planning, organizing, directing, and controlling D) planning, organizing, leading, and controlling Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 13 Copyright © 2018 Pearson Education, Ltd. 45) Establishing strategies for achieving organizational goals is a part of the ________ function. A) leading B) coordinating C) planning D) organizing Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 46) When Gavin decides how many units of output his employees should produce, he is performing which of the following management functions? A) controlling B) leading C) planning D) organizing Answer: C Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 47) Organizing includes ________. A) setting organizational goals B) hiring organizational members C) motivating organizational members D) determining who does what tasks Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 48) The human resources manager is meeting with the production manager to write job descriptions and to decide how to group jobs for a new production line. These two are engaged in ________. A) planning B) organizing C) leading D) controlling Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 14 Copyright © 2018 Pearson Education, Ltd. 49) Two of Brent's subordinates have not been getting along, a situation that has now interfered with their productivity. When Brent meets with them to resolve the conflict, he is engaged in ________. A) planning B) organizing C) leading D) controlling Answer: C Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 50) Motivating subordinates is primarily associated with the management function of ________. A) planning B) organizing C) leading D) directing Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 51) The ________ roles involve collecting, receiving, and disseminating information, according to Mintzberg's managerial roles. A) interpersonal B) informational C) technical D) decisional Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 52) When Fred tells the employees that he is sure they can fulfill the schedule because they are good and skilled employees, he is performing which of the following management functions? A) controlling B) leading C) negotiating D) delegating Answer: B Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 15 Copyright © 2018 Pearson Education, Ltd. 53) When Brandi is sharing with her team members the information she received at this morning's production meeting, she is performing the Mintzberg role of ________. A) liaison B) monitor C) entrepreneur D) disseminator Answer: D Diff: 3 AACSB: Application of knowledge; Analytical thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 54) The process of monitoring, comparing, and correcting is called ________. A) controlling B) planning C) leading D) evaluating Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 55) When Joe checks the amount of output that the employees have completed and the number of units that have been rejected, he is performing which of the following management functions? A) controlling B) leading C) evaluating D) monitoring Answer: A Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 56) ________ developed a categorization scheme for defining what managers do, consisting of ten different but highly interrelated roles. A) Henri Fayol B) Abraham Maslow C) Henry Mintzberg D) Peter Drucker Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 16 Copyright © 2018 Pearson Education, Ltd. 57) According to Mintzberg's managerial roles, the ________ roles are ones that involve people and other duties that are ceremonial and symbolic in nature. A) informational B) interpersonal C) technical D) decisional Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 58) When the mayor officiates at the ribbon-cutting ceremony for the new bridge, he is performing one of Mintzberg's ________ roles. A) interpersonal B) informational C) decisional D) organizing Answer: A Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 59) The ________ role (as Mintzberg defined it) is more important for lower-level managers than it is for either middle- or top-level managers. A) leader B) figurehead C) negotiator D) disseminator Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 17 Copyright © 2018 Pearson Education, Ltd. 60) Mark is vice president of finance. At his level of management, he is more likely to use the role of ________ than ________. A) leader; disseminator B) spokesperson; negotiator C) figurehead; liaison D) disseminator; leader Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Critical thinking 61) Connie has an idea for a new product she would like to produce and market. Mintzberg would consider the activities necessary to form and launch her company to be part of the ________ role. A) planning B) resource allocator C) negotiator D) entrepreneur Answer: D Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 62) Technical skills include ________. A) experience gained by experiments that are used in performing managerial tasks B) job specific knowledge needed to proficiently perform work tasks C) the ability to work well with individuals and groups D) skills managers use to think and to conceptualize about abstract and complex situations Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 63) One of Calvin's employees is having problems with a production machine so Calvin helps him troubleshoot the problem. Calvin is using his ________ skills. A) negotiator B) technical C) interpersonal D) conceptual Answer: B Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 18 Copyright © 2018 Pearson Education, Ltd. 64) ________ skills tend to be more important for first-line managers since they manage employees who produce the organization's product or service the organization's customers. A) Human B) Technical C) Conceptual D) Empirical Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 65) When Paul manages the employees who produce the product, he is utilizing his ________. A) conceptual skills B) disseminator skills C) technical skills D) interpersonal skills Answer: C Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 66) Understanding machine operating instructions would be considered a(n) ________ skill for a production manager. A) interpersonal B) technical C) conceptual D) empirical Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 67) ________ skills involve the ability to work well with other people, both individually and in a group. A) Technical B) Assessment C) Planning D) Interpersonal Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 19 Copyright © 2018 Pearson Education, Ltd. 68) When Michael meets with the human resources manager to discuss a complaint filed by one of the employees in the production department, he requires which of the following managerial skills? A) conceptual skills B) interpersonal skills C) negotiator skills D) disturbance handler skills Answer: B Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 69) When Sam Walton visited his Walmart stores, he would often lead the employees in cheers and give inspiring speeches. Sam knew the importance of ________ skills. A) decisional B) technical C) interpersonal D) conceptual Answer: C Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 70) Ralph's search for new technologies that can be used in the production processes of his plant is an example of which type of management skill? A) conceptual B) communication C) effectiveness D) monitor Answer: A Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 20 Copyright © 2018 Pearson Education, Ltd. 71) Which one of the following is true concerning the three managerial skills? A) Technical skills tend to be most important for middle-level managers. B) Conceptual skills are most important for lower-level managers. C) Interpersonal skills remain equally important to all levels of management. D) Technical skills increase and conceptual skills decrease in importance as a manager climbs the organizational chart. Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 72) Because Sterling is a shift manager, ________. A) his technical skills are of the utmost priority B) his conceptual skills are of the utmost priority C) his interpersonal skills are not important D) he need not have any empirical skills Answer: A Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 73) Terry has recently been promoted from shift manager to department manager. As a result, ________. A) his empirical skills are going to be most important B) the importance of his technical skills is reduced C) his conceptual skills are going to take the priority D) the importance of his interpersonal skills is reduced Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 74) The CEO of MindWerks must understand the industry in which his business competes, the future of that industry, and the competition. This requires strong ________ skills. A) technical B) interpersonal C) conceptual D) controlling Answer: C Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 21 Copyright © 2018 Pearson Education, Ltd. 75) Ethan is the president of his organization. Therefore, ________. A) he should be very sound in his technical skills B) he can manage with limited financial skills C) conceptual skills are the most important skills that Ethan requires D) his interpersonal skills are not important Answer: C Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Application 76) Managers with good ________ skills know how to communicate, motivate and lead to get the best out of their people. A) interpersonal B) conceptual C) technical D) empirical Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 77) Conceptual skills involve ________. A) managing employees who use tools to produce the organization's products B) communicating with customers C) thinking about abstract and complex situations D) inspiring enthusiasm and trust among employees Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 78) Effectiveness refers to getting the most output from the least amount of input. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 79) Efficiency is described as "doing things right." Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 22 Copyright © 2018 Pearson Education, Ltd. 80) Determining who reports to whom is part of the planning function of management. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 81) Directing and motivating are part of the organizing function of management. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 82) The four contemporary functions of management are planning, organizing, commanding, and controlling. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 83) As part of Dave's controlling function of management, he must monitor and evaluate performance. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 84) Conceptual skills are less important to top managers. Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 85) According to Mintzberg, the leader role is more important for higher-level managers because they have responsibility for more of the organization. Answer: FALSE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 23 Copyright © 2018 Pearson Education, Ltd. 86) Figurehead, leader, and liaison are all informational managerial roles according to Mintzberg. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 87) Disturbance handler is one of Mintzberg's interpersonal roles. Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 88) According to Robert L. Katz, managers need to have technical, interpersonal, and conceptual skills. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 89) Technical skills become less important as a manager moves into higher levels of management. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 24 Copyright © 2018 Pearson Education, Ltd. 90) Briefly discuss the difference between efficiency and effectiveness. Answer: a. Efficiency refers to getting the most output from the least amount of inputs. Because managers deal with scarce inputs-including resources such as people, money, and equipment-they are concerned with the efficient use of resources. It's often referred to as "doing things right"-that is, not wasting resources. For instance, efficient manufacturing techniques can be implemented by doing things such as cutting inventory levels, decreasing the amount of time to manufacture products, and lowering product reject rates. b. Effectiveness is often described as "doing the right things"-that is, doing those work activities that will help the organization reach its goals. For instance, goals can include meeting customers' rigorous demands, executing world-class manufacturing strategies, and making employee jobs easier and safer. Through various work initiatives these goals can be pursued and achieved. Whereas efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 91) List and explain the four basic functions of management. Answer: The four basic functions of management are: (a) Planning, (b) Organizing, (c) Leading, and (d) Controlling. a. When managers engage in planning, they set goals, establish strategies for achieving those goals, and develop plans to integrate and coordinate activities. b. When managers organize, they determine what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. c. When managers engage in leading, they motivate subordinates, help resolve work group conflicts, influence individuals or teams as they work, select the most effective communication channel, or deal in any way with employee behavior issues. d. When managers control, they ensure that goals are being met and that work is being done as it should be. They monitor and evaluate performance. They compare actual performance with the set goals. If those goals aren't being achieved, it's the manager's job to get work back on track. This process of monitoring, comparing, and correcting is the controlling function. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 25 Copyright © 2018 Pearson Education, Ltd. 92) List the ten managerial roles developed by Mintzberg. Answer: Mintzberg described ten managerial roles grouped around interpersonal relationships, the transfer of information, and decision making. A. The interpersonal roles are ones that involve people (subordinates and persons outside the organization) and other duties that are ceremonial and symbolic in nature. The three interpersonal roles include: a. figurehead b. leader c. liaison B. The informational roles involve collecting, receiving, and disseminating information. The three informational roles include: a. monitor b. disseminator c. spokesperson C. Finally, the decisional roles entail making decisions or choices. The four decisional roles include: a. entrepreneur b. disturbance handler c. resource allocator d. negotiator Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 26 Copyright © 2018 Pearson Education, Ltd. 93) Describe the three main types of managerial skills identified by Robert Katz. Which skills are most important to each level of management, and why? Answer: Robert L. Katz proposed that managers need three critical skills in managing: technical, interpersonal, and conceptual. a. Technical skills are the job specific knowledge and techniques needed to proficiently perform work tasks. These skills tend to be more important for first-line managers because they typically manage employees who use tools and techniques to produce the organization's products or service the organization's customers. Often, employees with excellent technical skills get promoted to first-line manager. b. Human skills involve the ability to work well with other people, both individually and in a group. Because all managers deal with people, these skills are equally important to all levels of management. Managers with good interpersonal skills get the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust. c. Conceptual skills are the skills managers use to think and to conceptualize about abstract and complex situations. Using these skills, managers see the organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment. These skills are most important to top managers. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.3: Describe the functions, roles, and skills of managers Classification: Concept 94) ________ resulted in the shifting of organizational boundaries. A) Digitization has B) Increased emphasis on organizational ethics has C) Increased competitiveness has D) Changing security threats have Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 95) Increased accountability of employees is typically caused by ________. A) increased digitization B) increased emphasis on organizational ethics C) security threats to the organization D) discrimination concerns Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 27 Copyright © 2018 Pearson Education, Ltd. 96) What is the connection between managers and customers? A) Today, managers are expected to interact regularly with customers. B) Managers in service industries are expected to deliver customer service. but managers in manufacturing are not. C) Managers must create a customer-responsive organization in order to survive successfully in today's environment. D) There is no connection between managers and customers. Answer: C Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Application 97) Social media is a communications tool which should be ________. A) used to publish one-way messages from managers to employees B) banned from the workplace C) limited only to top managers D) used to foster cooperation and collaboration Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 98) From a business perspective, a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies is known as ________. A) accountability B) universality C) equitability D) sustainability Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 28 Copyright © 2018 Pearson Education, Ltd. 99) Because of the emphasis her company has placed on sustainability, Darlene, a first-line manager, must now consider ________. A) her company's stock trading price B) the impact of her department's waste on the environment C) how to retain employees even during an expanding economy D) her employees' non-work obligations when scheduling workers Answer: B Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Application 100) Innovation is confined to high-tech and other technologically sophisticated organizations. Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 101) Firms that compete in non-technology markets, such as retailers, need not concern themselves with innovation. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 102) In order for organizations to survive successfully, managers must create a customer- responsive organization. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 103) Because of the advances in social media and the extensive use of technology in business communications, social skills have diminished in importance in the workplace. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Critical thinking 29 Copyright © 2018 Pearson Education, Ltd. 104) Managers must understand and manage both the power and the peril of social media. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 105) Briefly describe the importance of innovation and sustainability to the manager's job. Answer: Innovation means doing things differently, exploring new territory, and taking risks. It is not just for high-tech or other technologically sophisticated organizations. Innovative efforts can be found in all types of organizations. If a firm does not innovate, it undertakes great risks. Innovation is critical to today's organizations. The concept of managing in a sustainable way, has had the effect of widening corporate responsibility not only to managing in an efficient and effective way, but also to responding strategically to a wide range of environmental and societal challenges. From a business perspective, sustainability is defined as a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies. Sustainability issues are now moving up the agenda of business leaders and the boards of thousands of companies. Running an organization in a more sustainable way means that managers have to make informed business decisions based on thorough communication with various stakeholders, understanding their requirements, and starting to factor economic, environmental, and social aspects into how they pursue their business goals. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 106) In a short essay, describe the importance of customers to the manager's job. Answer: Organizations need customers. Without them, most organizations would cease to exist. Yet, focusing on the customer has long been thought to be the responsibility of marketing types. However, employee attitudes and behaviors play a big role in customer satisfaction. Managers are recognizing that delivering consistent high-quality customer service is essential for survival and success in today's competitive environment and that employees are an important part of that equation. Managers must create a customer-responsive organization where employees are friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what's necessary to please the customer. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Concept 30 Copyright © 2018 Pearson Education, Ltd. 107) Select three of the focuses of today's managers and discuss its importance to the success of business. Answer: Students' answers will vary. a. Customer: By listening to customers, businesses can discover new opportunities for products and services. They may also discover why some customers remain loyal to the company and why others leave. b. Technology: Although technology cannot completely replace human interaction and judgment, it can automate routine and hazardous tasks, thereby freeing humans for more complex tasks. Technology can make humans more productive, reducing costs and increasing profitability. c. Social Media: More and more businesses are turning to social media as a way to connect to customers. Employees can use social media to support and promote their employer and to cooperate and collaborate with each other. d. Innovation: Innovation is critical at all levels in the organization. Customers demand new, better, more robust products and services. Innovation can provide the competitive advantage necessary for continued success. e. Sustainability: What's emerging in the twenty-first century is the concept of managing in a sustainable way, which has had the effect of widening corporate responsibility not only to managing in an efficient and effective way, but also to responding strategically to a wide range of environmental and societal challenges. Customers expect businesses to manage themselves in such a way as to provide quality products and services with the smallest footprint possible, preserving resources for future generations. f. Employee: Progressive companies recognize the importance of treating employees well not only because it's simply the right thing to do, but also because it is good business. Well-treated employees are more likely to go the extra mile when performing their jobs. Employees who are treated well will treat customers well, contributing to business success and profitability. Diff: 3 AACSB: Reflective thinking; Application of knowledge; Written and oral communication Learning Obj: LO 1.4: Describe the factors that are reshaping and redefining the manager's job Classification: Synthesis 108) Management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they are located. This principle is known as the ________. A) impartiality of management B) neutrality of management C) universality of management D) reality of management Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 31 Copyright © 2018 Pearson Education, Ltd. 109) Which one of the following represents one of the challenges of management? A) creating an environment in which organizational members can do their best work B) helping others find meaning and fulfillment in their work C) influencing organizational outcomes D) having to deal with a variety of personalities Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 110) Which one of the following types of managerial positions is most likely to involve clerical duties? A) supervisor B) regional manager C) project leader D) president Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 111) Which one of the following represents one reward of being a manager? A) operating with limited resources B) receiving recognition in the organization C) motivating workers in chaotic situations D) performing duties that are more clerical than managerial Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 112) The universality of management means that ________. A) all managers in all organizations perform the four management functions B) all managers in all organizations perform the same quantity of managerial functions C) all managers in all organizations perform managerial functions in similar ways D) any manager can work in any organization and perform any management function Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 32 Copyright © 2018 Pearson Education, Ltd. 113) Management is universally needed in all organizations. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 114) Research shows that the quality of management has little impact on the success of the business. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 115) A portion of a manager's job, especially at lower organizational levels, may entail duties that are often more clerical than managerial. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 116) List at least five rewards and five challenges of being a manager. Answer: Rewards of Being a Manager: a. Managers create a work environment in which organizational members can work to the best of their ability. b. Managers have opportunities to think creatively and use their imagination. c. Managers help others find meaning and fulfillment in work. d. Managers get to support, coach, and nurture others. e. Managers get to work with a variety of people. f. Managers receive recognition and status in organization and community. g. Managers play a role in influencing organizational outcomes. h. Managers receive appropriate compensation in the form of salaries, bonuses, and stock options. Challenges of Being a Manager: a. Managers have to do hard work. b. Managers have to deal with a variety of personalities. c. Managers often have to make do with limited resources. d. Managers have to motivate workers in chaotic and uncertain situations. e. Managers should be able to successfully blend knowledge, skills, ambitions, and experiences of a diverse work group. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 33 Copyright © 2018 Pearson Education, Ltd. 117) What is universality of management? Why is it important? Answer: Management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they're located. This is known as the universality of management. In all organizations, managers must plan, organize, lead, and control. Management is universally needed in all organizations. So it is necessary to find ways to improve the way organizations are managed. Organizations that are well managed develop a loyal customer base, grow, and prosper, even during challenging times. Those that are poorly managed find themselves losing customers and revenues. By studying management and its universality, an individual will be able to recognize poor management and work to get it corrected. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 1.5: Explain the value of studying management Classification: Concept 34 Copyright © 2018 Pearson Education, Ltd. Management, 14e, Global Edition (Robbins/Coulter) Chapter 2 Decision Making 1) A problem can best be described as ________. A) a change from the past B) something bad that has happened C) a difference between current conditions and some desired state D) a loss of something of value Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 2) Which of the following statements is true concerning problem identification? A) Problems are generally obvious. B) A symptom and a problem are one and the same. C) Generally, what is a problem for one manager is a problem for all other managers. D) Effectively identifying problems is not easy. Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 3) Sales of the high-end units have declined. The owners want Arnold, the CEO, to increase revenues to previous levels. His first action should be ________. A) to identify previous sales levels B) to determine why sales are off C) to compare costs for three new models under development D) to immediately begin production on the lowest cost model Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 1 Copyright © 2018 Pearson Education, Ltd. 4) Ridership on the city's public transportation buses has fallen for three weeks in a row. This is ________. A) a problem B) a symptom C) neither a problem nor a symptom D) a condition, but we need more information to determine whether it is a problem or a symptom. Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 5) After identifying a problem, the next step in the decision-making process is ________. A) identifying decision criteria B) allocating weights to decision criteria C) analyzing alternatives D) developing alternatives Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 6) To determine the ________, a manager must determine what is relevant or important to resolving a problem. A) bounded rationality of a decision B) escalation of commitment C) cost of implementation D) decision criteria Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 2 Copyright © 2018 Pearson Education, Ltd. 7) Belinda wants to introduce a new model to the product line. Three models are being developed. Belinda can choose only one. She has decided to focus on target market size, production costs, and net profits. These are Belinda's ________. A) alternatives B) criterion weights C) decision criteria D) problems Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 8) Amanda, a single parent, is looking for a new job. Considering that she has two school-aged children, she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting. In terms of the decision- making process, these represent Amanda's ________. A) decision criteria B) problems C) alternatives D) heuristics Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 9) Max is planning to go away to college next year and is currently trying to figure out to which colleges he should apply. He would like to major in English Literature at an accredited liberal arts college, but is also looking for a university that offers financial aid. In terms of the decision- making process, these represent Max's ________. A) problems B) alternatives C) decision criteria D) heuristics Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 3 Copyright © 2018 Pearson Education, Ltd. 10) After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________. A) allocating weights to the criteria B) analyzing the alternatives to solving the problem C) reducing the number of criteria through the process of elimination D) implementing the alternative Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 11) Bryan must select a new supplier for lighting fixtures for his company's mobile homes. He has decided quality is more important than price but price is more important than lead times. Bryan will use these priorities to ________. A) analyze alternatives B) set his decision criteria C) allocate weights to the criteria D) develop alternatives Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 12) Creativity is most essential in which of the following steps of the decision-making process? A) analyzing alternatives B) allocating weights to the decision criteria C) developing alternatives D) identifying decision criteria Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 13) Carla is searching the Internet for sources of Himalayan salt to make bath salts. Carla is at the ________ step in the decision making process. A) identify-the-problem B) identify-decision-criteria C) allocate-weights D) develop-alternatives Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 4 Copyright © 2018 Pearson Education, Ltd. 14) When the overhead cranes crashed into each other for the third time, Joe formed a team to look into ways to avoid future crashes. After a brainstorming session, the team settled on three ideas, any of which might work. The team has completed which step in the decision-making process? A) develop alternatives B) analyze alternatives C) select an alternative D) implement an alternative Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 15) Carla has identified several possible sources for Himalayan salt to make her bath salts. Now she is comparing their prices, quality, and delivery times. At what step is she in the decision- making process? A) develop alternatives B) analyze alternatives C) select an alternative D) implement the alternative Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 16) Carla discovered that the supplier with the highest quality also had the longest lead time. The supplier with the best lead time had the highest price. To help Carla make her decision, she should ________. A) order a small quantity from each supplier for comparison B) rely on customer reviews to guide her decision C) multiply her ratings for each criteria by the weight for the criteria then sum the scores D) check with the Better Business Bureau for customer complaints Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 5 Copyright © 2018 Pearson Education, Ltd. 17) After Abby listened to the weather report this morning before work, she drove her car and carried an umbrella instead of riding her motorcycle. Whether she realizes it or not, Abby ________. A) analyzed criteria B) implemented a decision C) assigned weights to criteria D) evaluated a decision Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 18) In the decision-making process, while ________, the decision maker puts the decision into action by conveying it to those affected by it and getting their commitment to it. A) selecting an alternative B) evaluating a decision's effectiveness C) implementing an alternative D) analyzing alternatives Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 19) Which of the following is important in effectively implementing the chosen alternative in the decision-making process? A) evaluating each alternative by using the established criteria B) being creative while implementing the alternatives C) allowing those impacted by the outcome to participate in the process D) ignoring criticism concerning your chosen alternative Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 6 Copyright © 2018 Pearson Education, Ltd. 20) Before actually putting the decision into action, the decision-maker may find it prudent to ________. A) develop the method of evaluating whether the decision is a good one B) notify upper management that change is coming so they won't be blindsided C) alert external stakeholders that the problem has been solved D) check to make sure the conditions that existed at the time of the decision still exist, and make sure the decision is still the best one Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 21) The final step in the decision-making process is to ________. A) determine the criteria for the next decision B) analyze the process of allocating weights to the decision criteria C) evaluate the outcome of the decision D) implement the chosen alternative Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 22) Joe's team implemented one of the ideas to avoid crane crashes. It is important for the team to evaluate the results because ________. A) the team was not sure their idea would work B) the team wants to impress the plant manager C) results may vary from expectations D) another crane crash could cost the team their jobs Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Application 23) The decision-making process begins by identifying decision criteria. Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 7 Copyright © 2018 Pearson Education, Ltd. 24) A decision criterion defines what is important or relevant to resolving a problem. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 25) In the decision-making process, after allocating weights to the decision criteria, the decision maker lists viable alternatives that could resolve the problem. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 26) Once the alternatives to solving a problem have been identified, the next step in the decision- making process is selecting one of these alternatives. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 27) Implementing an alternative refers to the process of choosing the best alternative. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 8 Copyright © 2018 Pearson Education, Ltd. 28) List and discuss the eight steps in the decision-making process. Answer: 1. Identify a problem - The decision-making process begins with the existence of a problem or a discrepancy between an existing and a desired state of affairs. However, a discrepancy without pressure to take action becomes a problem that can be postponed. 2. Identify decision criteria - Once the manager has identified a problem that needs attention, the decision criteria important to resolving the problem must be identified. That is, managers must determine what is relevant in making a decision. 3. Allocate weights to the criteria - The decision maker must weigh the items in order to give them the correct priority in the decision. A simple approach to doing this is to give the most important criterion a weight of 10 and then assign weights to the rest against that standard. 4. Develop alternatives - The fourth step requires the decision maker to list the viable alternatives that could resolve the problem. No attempt is made in this step to evaluate the alternatives, only to list them. 5. Analyze alternatives - Once the alternatives have been identified, the decision maker must critically analyze each one. From this comparison, the strengths and weaknesses of each alternative become evident. 6. Select an alternative - The sixth step involves choosing the best alternative from among those considered. 7. Implement the alternative - Implementation involves conveying the decision to those affected by it and getting their commitment to it. If the people who must carry out a decision participate in the process, they are more likely to enthusiastically support the outcome than if they are just told what to do. 8. Evaluate decision effectiveness - The last step in the decision-making process involves appraising the outcome of the decision to see if the problem has been resolved. If the desired result has not been achieved, the manager may consider returning to a previous step or may even consider starting the whole decision process over. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 2.1: Describe the eight steps in the decision-making process Classification: Concept 29) Managers are assumed to use ________ if they make logical and consistent choices to maximize value. A) rational decision making B) intuitive decision making C) bounded rationality D) evidence-based management Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 9 Copyright © 2018 Pearson Education, Ltd. 30) Dylan must choose among four candidates to fill his open accounting clerk position. If Dylan uses rational decision making, he will ________. A) disregard the fact the one of the candidates is the owner's nephew B) rely on his initial impressions of the candidates to make this decision C) base his decision on his extensive experience and accumulated judgment D) involve others in the interviewing process Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 31) It is assumed that a rational decision maker ________. A) faces unclear and ambiguous problems B) is unlimited by his or her ability to process information C) is unaware of all the possible alternatives and consequences D) is fully objective and logical Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 32) When managers make decisions that are rational but limited by their ability to process the information, they are following the concept of ________. A) cognitive decision making B) bounded rationality C) escalation of commitment D) intuitive decision making Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 33) Evelyn's Internet search for information about "vendor for machine screws" yielded more than 100,000 items. Evelyn did not have time or resources to pursue each of these so she limited her search to only vendors in her state. By doing this, Evelyn used ________. A) perfect rationality B) bounded rationality C) satisficing D) intuition Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Application 10 Copyright © 2018 Pearson Education, Ltd. 34) Managers cannot possibly analyze all information on all alternatives; they tend to ________, rather than ________. A) maximize; satisfice B) neutralize; satisfice C) satisfice; neutralize D) satisfice; maximize Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 35) ________ results in a solution that is considered "good enough." A) Escalating B) Linear thinking C) Intuition D) Satisficing Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 36) Gilda has an idea that would streamline operations, reduce costs, and increase profits. Her idea requires the cooperation of several departments, some of which have demonstrated a resistance to change. By considering the context in which the changes must happen and the people in her organization, Gilda is using ________. A) evidence-based management B) bounded rationality C) intuition D) positive employee relations Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Application 11 Copyright © 2018 Pearson Education, Ltd. 37) Abigail is shopping for a new copier for her company. She has set her price range between $5,000 and $6,000. The copier must handle a minimum of 10,000 copies per month and have a useful life expectancy of five years. If Abigail selects the first copier she finds that meets these criteria, we would say she is ________. A) using perfect rationality B) using bounded rationality C) using intuition D) satisficing Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Application 38) Julie is keen on joining Columbia University to pursue a master's degree in economics. However, after three months of applying and waiting for an acceptance letter, she finally decides to attend NYU, which was one of her backup colleges. This is an example of ________. A) maximizing B) neutralizing C) minimizing D) satisficing Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Application 39) Edgar hired a graduate from his alma mater, thinking he would be a successful first line supervisor. Unfortunately the new hire hasn't worked out as well as hoped. Edgar decided to invest time and money in training for the new hire but saw little improvement. Next he assigned a successful supervisor to mentor the young employee. The problems persisted. Edgar is displaying ________. A) bounded rationality B) irrational behavior C) poor judgment D) escalation of commitment Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Application 12 Copyright © 2018 Pearson Education, Ltd. 40) Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really ________. A) using his intuition B) using bounded rationality C) using perfect rationality D) satisficing Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Application 41) Which of the following is an aspect of intuition? A) experience-based decisions B) quality-initiated decisions C) science-based decisions D) programmed decisions Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 42) Intuitive decision making ________. A) is the systematic use of the best available evidence to improve decision making practice B) generally results in poor decisions and hence managers should learn to ignore their gut feelings C) is the process of making decisions based on experience, feelings, and accumulated judgment D) complements rational decision making but not bounded rational decision making Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 43) Farrah has called together her management team to review information about customer satisfaction gathered by an external research company. Farrah is engaging in ________. A) perfect rationality B) bounded rationality C) evidence-based management D) relationship management Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Application 13 Copyright © 2018 Pearson Education, Ltd. 44) Managers use decision-making in every function, from planning to controlling. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 45) It is important that decision-makers ignore emotions when making business decisions so their decisions will be perceived as rational. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 46) One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 47) According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 48) The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 49) Intuitive decision making complements rational decision making but not bounded rational decision making. Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 14 Copyright © 2018 Pearson Education, Ltd. 50) Briefly, discuss the assumptions of rationality and the validity of those assumptions. Answer: A decision maker who is perfectly rational is fully objective and logical. The problem faced is clear and unambiguous. The decision maker has a clear and specific goal. He is aware of all possible alternatives and consequences. Making decisions consistently leads to selecting the alternative that maximizes the likelihood of achieving that goal. These assumptions apply to any decision-personal or managerial. For managerial decision making, an additional assumption is that decisions are made in the best interests of the organization. However, most of these assumptions of rationality are not very realistic. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 51) What is meant by bounded rationality and satisficing? Answer: Despite the unrealistic assumptions of perfect rationality, managers are expected to be rational when making decisions. It is understood that "good" decision makers are supposed to do certain things and exhibit good decision-making behaviors as they identify problems, consider alternatives, gather information, and act decisively but prudently. When they do so, they show others that they are competent and that their decisions are the result of intelligent deliberation. However, a more realistic approach to describing how managers make decisions is the concept of "bounded rationality." According to this concept, managers make decisions rationally, but are limited by their ability to process information. Because they cannot possibly analyze all information on all alternatives, managers "satisfice," rather than maximize. That is, they accept solutions that are "good enough." Thus, they become rational within the limits of their ability to process information. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 52) Give an example of the use of bounded rationality. The example can be fictitious as long as it includes all the elements of bounded rationality. Answer: Students answers will vary, but must include an expectation of rationality, a limited ability to process information, an inability to know all possible alternatives, and a probable lack of maximization of the results of the decision Diff: 3 AACSB: Application of knowledge; Written and oral communication Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Synthesis 15 Copyright © 2018 Pearson Education, Ltd. 53) What is intuitive decision making? How does intuition affect the process of making a decision? Answer: Intuitive decision making is the process of making decisions on the basis of experience, feelings, and accumulated judgment. Intuitive decision making can complement both rational and bounded rational decision making. A manager who has had experience with a similar type of problem or situation often acts quickly with limited information because of that past experience. Managers who experienced intense feelings and emotions when making decisions actually achieved higher decision-making performance, especially when they understood their feelings as they were making decisions. Diff: 3 AACSB: Reflective thinking; Written and oral communication Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Concept 54) Give an example of evidence-based management. Remember to include all of the essential elements. Answer: Students answers will vary but must include 1) the decision-maker's expertise and judgment; 2) external evidence that has been evaluated by the decision maker; 3) opinions, preferences, and values of those who have a stake in the decision; and 4) relevant organizational (internal) factors such as context, circumstances, and organizational members. Diff: 3 AACSB: Application of knowledge; Written and oral communication Learning Obj: LO 2.2: Explain the four ways managers make decisions Classification: Synthesis 55) ________ are straightforward, familiar, and easily defined. A) Programmed problems B) Structured problems C) Non-structured problems D) Nonprogrammed problems Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 16 Copyright © 2018 Pearson Education, Ltd. 56) Garrett looked at the list of orders for the coming week and made out the production schedule. He has done this so many times he could do it in his sleep. This situation represents a(n) ________. A) structured problem B) unstructured problem C) linear problem D) programmed problem Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 57) Structured problems align well with which type of decisions? A) programmed B) analogous C) organic D) nonlinear Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 58) A(n) ________ decision is a repetitive decision that can be handled by a routine approach. A) nonprogrammed B) structured C) unstructured D) programmed Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 59) Harriet's machine has stopped working again. She consulted the operator's manual troubleshooting guide to find a solution. Harriet used a ________. A) programmed decision B) non-programmed decision C) structured decision D) non-structured decision Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 17 Copyright © 2018 Pearson Education, Ltd. 60) When making a decision for a routine situation, which step in the decision making process can be skipped? A) identify the problem B) evaluate decision effectiveness C) develop alternatives D) implement the alternative Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 61) A procedure is ________. A) an explicit statement that tells a manager what can or cannot be done B) a series of sequential steps a manager uses to respond to a structured problem C) used mainly for unstructured, rather than structured, problems D) subject to the interpretation of the decision maker Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 62) One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department issued a set of instructions Henry must follow to initiate the search for candidates. In other words, there is a ________ Henry must follow. A) policy B) practice C) procedure D) program Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 63) A(n) ________ is an explicit statement that tells a manager what can or cannot be done. A) agenda B) objective C) rule D) solution Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 18 Copyright © 2018 Pearson Education, Ltd. 64) "All employees must be at their work stations and ready to work by the time the buzzer sounds." This is an example of ________. A) a policy B) a procedure C) a practice D) a rule Answer: D Diff: 1 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 65) "Smoking and the consumption of alcohol are strictly prohibited inside the work Premises." This is most likely an example of a(n) ________. A) rule B) objective C) procedure D) policy Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 66) A policy ________. A) typically serves as a guideline for decision making by setting general parameters B) specifically states what should or should not be done C) is a series of sequential steps a manager uses to respond to a structured problem D) is used when dealing with unstructured problems and non-programmed decisions Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 67) "We expect to maintain the highest standards of quality in our workmanship." This is an example of ________. A) a procedure B) a rule C) a policy D) a practice Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 19 Copyright © 2018 Pearson Education, Ltd. 68) A(n) ________ typically contains an ambiguous term that leaves interpretation up to the decision maker. A) rule B) procedure C) edict D) policy Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 69) Unstructured problems ________. A) refer to the usual problems faced by organizations B) are generally solved using procedures, rules, and policies C) are accompanied by ambiguous or incomplete information D) do not require the decision maker to go through an involved decision process Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 70) After nearly 30 years of growth, sales at Ida's company have begun to decline. None of the managers have been able to determine the cause. Some say the entire economy is in recession; others blame a change in suppliers; still others say the work ethic among employees just isn't what it used to be. This is an example of ________. A) a structured problem B) an unstructured problem C) a programmed problem D) a non-programmed problem Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 71) Nonprogrammed decisions ________. A) involve standardized solutions B) are usually made by lower-level managers C) are associated with clear and specific goals D) are unique and nonrecurring Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 20 Copyright © 2018 Pearson Education, Ltd. 72) When problems are ________, managers must rely on ________ in order to develop unique solutions. A) structured; nonprogrammed decision making B) structured; pure intuition C) unstructured; nonprogrammed decision making D) unstructured; programmed decision making Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 73) What is the psychological orientation of a decision maker who makes a "maximin" choice? A) optimist B) realist C) pessimist D) idealist Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 74) Lower-level managers typically confront ________. A) unstructured problems B) new and unusual problems C) programmed decisions D) nonprogrammed decisions Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 75) Ian is a plant manager in a multi-site corporation. He frequently deals with situations involving new customers and new products. These are often ________. A) non-linear problems and risky decisions B) structured problems and programmed decisions C) uncertain problems and linear decisions D) unstructured problems and nonprogrammed decisions Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 21 Copyright © 2018 Pearson Education, Ltd. 76) First-line managers tend to deal with problems that are ________ while upper-level managers handle the ________ problems. A) unstructured; structured B) routine and repetitive; unusual and difficult C) interpersonal; customer D) machine-related; interpersonal Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 77) ________ is a situation in which a manager has the ability to make accurate decisions because the outcome of every alternative is known. A) Certainty B) Risk C) Bureaucracy D) Contingency Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 78) It is time for Jane to order laminated plywood again. She typically orders from one of three vendors. She knows the price, delivery time, and quality of each vendor. In this situation, Jane has ________. A) certainty B) uncertainty C) risk D) structure Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 22 Copyright © 2018 Pearson Education, Ltd. 79) The manager of an apparel store estimates how much to order for the current spring season based on last spring's sales figures. The store manager is operating under which of the following decision-making conditions? A) uncertainty B) risk C) structure D) certainty Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 80) ________ is a situation in which a decision maker cannot make reasonable probability estimates. A) Necessity B) Risk C) Uncertainty D) Certainty Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 81) In the late 1970s, Apple launched the Apple computer for individual use. It was a radical concept; there was no precedent for this type of product. Under these circumstances, Apple faced a situation of ________. A) certainty B) uncertainty C) risk D) necessity Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 23 Copyright © 2018 Pearson Education, Ltd. 82) Which of the following best describes the psychological orientation of an individual making a "maximax" choice? A) optimist B) cynic C) pessimist D) defeatist Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 83) James has calculated the possible profits from three different scenarios for the expansion of his restaurant, each for a different amount of advertising and promotion. He has chosen to implement the scenario that offers the greatest profit. James has decided to ________. A) maximax B) maximin C) minimax D) minimin Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 84) Depending on the weather and the amount of advertising, Kyle has developed six scenarios for his summer profits from his lawn care business. His business has failed to reach his expectations in the past, so he fears the worst. Kyle will likely choose the option that ________. A) maximizes the maximum possible payoff B) maximizes the minimum possible payoff C) minimizes the maximum regret D) minimizes the minimum losses Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Application 85) A programmed decision is a repetitive decision that can be handled by a routine approach. Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 24 Copyright © 2018 Pearson Education, Ltd. 86) Rules and procedures are the same. Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 87) A policy is an explicit statement that tells a manager what can or cannot be done. Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj: LO 2.3: Classify decisions and decision-making conditions Classification: Concept 88) Nonprogrammed decision making relies on procedures, rules, and po