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Chapter 1—Innovative
Management for a Changing World


1. The nature of management is to control and
dictate others in an organization.

2. In today’s turbulent and hypercompetitive
global environment, managers must help their companies innovate more than ever.

3.The late famed management
theorist Peter Drucker is often credited with creating the modern study of

4.Managers get things done
by coordinating and motivating other people.

5. The attainment of organizational goals
through planning, organizing, leading and controlling reflects the essence of
the management process.

6. Where the organization wants to be in the
future and how to get there defines controlling.

7. Organizing means defining goals for future
organizational performance and deciding on the tasks and resources needed to
attain them.

8. Leading is the use of influence to motivate
employees to achieve organizational goals.

9. The use of influence to motivate employees to
achieve organizational goals defines organizing.

10. How an organization goes about accomplishing a plan is a key part
of the management function of controlling.

11. Using influence to motivate employees describes the management
function of leading.

12. The use of influence to motivate employees to achieve the
organization’s goals refers to controlling.

13. Organizing means creating a shared culture and values.

14. Controlling involves monitoring employee’s activities and taking
corrective action as necessary.

15. An organization is a social entity that is goal directed and
deliberately structured.

16. In the definition of an organization, deliberately structured
means being made up of two or more people and designed to achieve some

17. Efficiency refers to the degree to which the organization achieves
a stated objective.

18. Efficiency can be calculated as the amount of resources used to
produce a product or service.

19. To perform effectively, all managers must possess conceptual,
human, and technical skills, though the degree of each skill necessary at
different levels of an organization may vary.

20. All managers have to pay attention to costs and according to
research, the best way to improve organizational effectiveness is by severe
cost cutting.

21. Only the top managers in organizations need conceptual skills
since it involves planning.

22. Technical skills are most important at lower organizational levels
while human skills become more important as managers move up the organizational

23. One of the biggest mistakes during turbulent times is managers’
failure to comprehend and adapt to the rapid pace of change in the world around


24. Managers use conceptual, human, and technical skills to perform
the four management functions of planning, organizing, leading, and controlling
in all organizations.

25. According to research, managers most enjoy activities such as
leading others, networking, and leading innovation.

26. Managers least enjoy activities such as controlling subordinates
and managing time pressures.

27. The individual performer is a generalist and coordinates a broad
range of activities.

28. The manager is a specialist and a “doer.”

29. Becoming a successful manager means thinking in terms of building
teams and networks, becoming a motivator and organizer within a highly
interdependent system of people and work.

30. Spotlight on Skills box in Chapter 1 asks you to consider issues
such as the increased workload and the challenge of supervising former peers to
help you decide if you really want to become a manager.

31. Managerial activity is often characterized by routine, continuity,
and lengthy time-frame.

32. A manager forwards information to other organization members in
the disseminator role.

33. In the spokesperson role, a manager forwards information to other
organization members.

34. The interpersonal roles performed by managers include figurehead,
leader, and liaison.

35. The informational roles that managers perform include monitor,
disseminator, and spokesperson.

36. The monitor role involves the initiation of change.

37. In the figurehead role, the manager performs ceremonial and
symbolic duties.

38. The disturbance handler role involves the initiation of change,
thinking about the future and how to get there.

39. Fortunately for managers, the disseminator and spokesperson roles
are identical.

40. Managers in small businesses tend to emphasize roles different
from those of managers in large corporations.

41. Not-for-profit organizations, such as The Red Cross and the Girl
Scouts, represent a major application of management talent.

42. We might expect managers in nonprofit organizations to place more
emphasis on the roles of spokesperson, leader, and resource allocator.

43. Managers in not-for-profit organizations, according to research,
should place less emphasis on the roles of spokesperson, leader, and resource

44. One of the most striking changes affecting organizations and
management is technology.

45. In the new workplace, the valued worker is one who learns quickly,
shares knowledge, and is comfortable with risk, change, and ambiguity.

46. The primary characteristic of the new workplace is that it is
centered on loyal and homogeneous employees.

47. The new workplace is organized around networks rather than rigid
hierarchies, and work is often virtual.

48. Organizations are increasingly shifting significant chunks of what
were once considered core functions to outsiders via outsourcing, joint
ventures, and other complex alliances.

49. In the new workplace, managers should focus on developing
teamwork, collaboration, and learning.

50. Success in the new workplace depends on the strength and quality
of independent employees.

51. Organizations are learning to value stability and efficiency over
change and speed because of changes in technology, globalization, and

52. Companies can survive over the long run without innovation as long
as they are successful imitators.

53. Despite the need for companies to control costs in today’s
economy, innovation has become the new imperative.

54. Recognizing the value of employees involves the organizing role of

55. Resources such as efficiency and effectiveness are used by
managers to attain organizational goals.

56. Allocating resources across the organization is part of the
organizing management function.

57. An important phase within the controlling function of management
is making corrections when necessary.

58. By calculating the amount of resources used to produce a single
automobile at a manufacturing plant, managers are determining organizational

59. The ultimate responsibility of managers is to achieve high
performance by balancing efficiency and effectiveness.

60. The majority of business failures are the result of poor human


61. Most top executives routinely work at least 12 hours a day and
spend 50 percent or more of their time traveling.

62. Customer relationship management systems collect and manage large
amounts of data about customers and make them available to employees.


63. The sequence of suppliers and purchasers, covering all stages of
processing from obtaining raw materials to distributing finished goods to
consumers is referred to as CRM.

64. Outsourcing refers to contracting out selected functions or
activities to other organizations that can do the work more cost-efficiently.

65. A process whereby companies find out how others do something
better than they do and then try to imitate or improve on it refers to

66. Kaizen refers to an innovation mindset, used widely by Indian
companies, that strives to meet customers’ immediate needs quickly and


67. The changing attitudes, ideas, and values of Generation Y
employees is an example of a social force.

68. Scientific management evolved with the use of precise procedures
in place of tradition and rules of thumb.

69. A criticism of human relations management is that it ignores the
social context and workers’ needs.

70. The Hawthorne studies resulted in the movement towards scientific

71. The human relations movement is also referred to as the dairy farm
view of management, meaning that contented cows give more milk, and satisfied
workers will give more work.


72. The acceptance theory of authority states that people have free
will and can choose whether to follow management orders.

73. An assumption of Theory Y is that the average human being has an
inherent dislike of work and will avoid it if possible.

74. The management science approach uses qualitative data in
management decision making.

75. Contingency thinking is the ability to see both the distinct
elements of a system or situation and the complex and changing interaction among
those elements.

76. Discerning circles of causality is an important element of systems

77. Although developed by a Japanese business manager, the quality
movement is strongly associated with American companies.

Scenario – Barry Miller
The promotion to first line manager took place just six weeks ago
for Barry Miller. He was well qualified for the promotion, but the new job
still required a lot of training. One of the challenges has been to coordinate
the production of his team with the needs of the sales department and with the
availability of raw materials from his suppliers. Setting priorities and
developing schedules to accomplish the work is a part of Barry’s job that he
has really enjoyed. The challenges to maintain high rapport and to build a
strong team with his employees have already brought him a lot of satisfaction.
In reflecting about the last six weeks, Barry concludes that he is very happy
about his new job.
1. In his job, Barry needs to










all of these.

2. The managerial skill that is least important
at Barry’s middle-level management position is








all of these skills are vital.


none of these skills are important.

3. By maintaining information links, Barry Miller
was exhibiting the interpersonal role of











4. With setting priorities and setting
schedules, Barry was participating in the decisional role of




disturbance handler.




resource allocator.



ANS: d
1. The nature of management is to cope with
____________________ and far-reaching challenges.
2. ____________________ is the attainment of
organizational goals in an effective and efficient manner through planning,
organizing, leading, and controlling organizational resources.
3. ____________________ is concerned with
defining goals for future organizational performance.
4. ____________________ involves assigning
tasks, grouping tasks into departments, delegating authority, and allocating
resources across the organization.
5. The management function that involves the use
of influence to motivate employees to achieve the organization’s goals is
referred to as ____________________.
6. ____________________ is the management
function concerned with monitoring employees’ activities, keeping the
organization on track toward its goals, and making corrections as needed.
7. A social entity that is goal directed and
deliberately structured is called a(n) ____________________.
8. The degree to which the organization achieves
a stated goal is called ____________________.
9. Organizational ____________________ refers to
the amount of resources used to achieve an organizational goal.
10. Conceptual skills are especially important for
____________________ managers.
11. ____________________ skills refers to the manager’s ability to
work with and through other people and to work effectively as a group member.
12. The individual performer is a(n) ____________________; whereas,
the manager has to be a(n) ____________________.
13. In the ____________________ role, managers seek and receive
information, scan periodicals and reports, and maintain personal contacts.
14. In the ____________________ role, managers initiate improvement
projects, identify new ideas, and delegate idea responsibility to others.
15. A(n) ____________________ would be responsible for performing
ceremonial and symbolic duties such as greeting visitors and signing legal
16. The ____________________ role involves deciding who gets what
17. If a manager finds several new competitors on the horizon, he or
she may need to spend more time in the ____________________ role.
18. One of the roles that a small business owner may emphasize over
their counterpart in a large organization is that of a ____________________.
19. A(n) ____________________ perspective provides a broader way of
thinking, a way of searching for patterns and determining whether they recur
across time periods.
20. ____________________ refer to the aspects of a culture that guide
and influence relationships among people.
21. ____________________ refer to the influence of political and legal
institutions on people and organizations.
22. ____________________ pertain to the availability, production, and
distribution of resources in a society.
23. A management perspective that emerged during the nineteenth and
early twentieth centuries that emphasized a rational, scientific approach to
the study of management and sought to make organizations efficient operating
machines is called ____________________.

24. ____________________ is considered the “father of scientific
25. Weber’s vision of organizations that would be managed on an
impersonal, rational basis is called a(n) ____________________.
26. A subfield of the classical management perspective that focused on
the total organization rather than the individual worker, delineating the
management functions of planning, organizing, commanding, coordinating, and
controlling is called ____________________.
27According to
Fayol, similar activities in an organization should be grouped together under
one manager. This administrative principle
is known as ____________________.
28. A management perspective that emerged around the late nineteenth
century that emphasized understanding human behavior, needs, and attitudes in
the workplace is referred to as a(n) ____________________.
29. A management perspective that suggests jobs should be designed to
meet higher-level needs by allowing workers to use their full potential is
called a(n) ____________________.
30. Organizational development is one specific set of management
techniques based in the ____________________ approach.
31. A management perspective that emerged after World War II, and
applied mathematics, statistics, and other quantitative techniques to
managerial problems is referred to as a(n) ____________________.
32. The concept that the whole is greater than the sum of its parts is
known as ____________________.
33. The ____________________ view of management is an integration of
the case and universalist viewpoints.
34. The process by which companies find out how others do something
better than they do and then try to copy and/or improve it is known as
35. ____________________ collect and manage large amounts of data
about customers and make them available to employees, enabling better decision
making and superior customer service.
36. ____________________ refers to contracting out selected functions or
activities to other organizations that can do the work more cost-efficiently.
1. List five of Mintzberg’s ten managerial
2. Identify the four functions of management.
3. List the three management skills necessary to
perform effectively in organizations.
4. List three of the basic ideas of scientific
5. List the three assumptions associated with
McGregor’s Theory X.
1. Define management and describe two important
ideas expressed in the definition.
2. Describe the four management functions.
3. Describe the skills necessary for performing
a manager’s job.
4. Briefly discuss the relationship between
management skills and management level.
5. Describe the three categories of managerial
roles and explain how do they differ.

6. How do small business managers emphasize
different management roles in comparison to larger business managers?
7. Identify and explain the change that has
affected organizations and management the most.
8. The writings of Fayol, Taylor, and Weber
provide the foundation for modern management. Identify the school of thought
associated with each writer and compare the focus that each writer takes in
relation to the organization.
9. Discuss the advantages and disadvantages of
Taylor’s Scientific Management.
10. Briefly describe what happened in the Hawthorne Studies and
explain the results and conclusions of these studies.
11. Describe the assumptions behind McGregor’s Theory X and Theory Y.
How do the theories relate to the classical perspective on management and early
human relations ideas?

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