Question 1

Tactical planning involves making decisions about which customers to serve, what products or services to sell, and the geographic areas in which the firm will compete.

Accepted Answer

The fundamental nature of the topics described in this question would be considered in the strategic planning process.

Question 2

The recent recession eliminated many middle managers giving the remaining managers more employees to supervise.

Accepted Answer

The statement is true. During the recession, many companies downsized and eliminated middle management positions, resulting in fewer managers supervising a larger number of employees.

Question 3

Middle managers usually are responsible for tactical planning and controlling.

Accepted Answer

Middle managers typically focus on implementing the strategies determined by top managers and translating them into specific actions and plans. They are responsible for tactical planning and controlling, which involves monitoring and managing day-to-day operations to ensure that organizational objectives are met.

Question 4

Problem solving is more formal than using the rational decision-making model.

Accepted Answer

The rational decision-making model is a formal process that involves identifying and evaluating alternatives based on objective criteria. Problem-solving can take many different forms, including informal approaches such as trial-and-error, brainstorming, or intuition.

Question 5

After management has created a plan of action, the focus turns to the controlling function to recheck and often redo the plan.

Accepted Answer

The controlling function is not primarily about rechecking and redoing the plan; it is about monitoring performance to ensure that the goals of the plan are being met and taking corrective action if necessary. Planning and controlling are distinct functions, although they are closely related.

Question 6

Branch and plant managers and division heads are classified as first-line managers.

Accepted Answer

Branch and plant managers and division heads are typically classified as middle managers, as they oversee the work of first-line managers and report to top management.

Question 7

A mission statement should provide a detailed explanation of how a company will achieve its objectives.

Accepted Answer

A mission statement is an outline of the organization's fundamental purposes, not a detailed explanation of what is to be done and who is to do it.

Question 8

A CEO is often the president of the firm and is responsible for developing the strategic plans.

Accepted Answer

A CEO (Chief Executive Officer) is typically the highest-ranking officer or executive in a company or organization and is responsible for setting strategies and goals for the company. Therefore, the statement is true.

Question 9

PMI is a problem-solving technique that involves listing pluses, minuses, and implications.

Accepted Answer

PMI stands for Plus-Minus-Implications, which is a problem-solving technique that involves listing the positive aspects, negative aspects, and the potential implications or consequences of a decision or action.

Question 10

Sierra is a manager at a nationwide retail chain. Each morning she determines the order in which store projects are performed; she sets work schedules for employees and standards that must be met. These activities suggest that Sierra is involved in operational planning.

Accepted Answer

Operational planning is the process of setting work standards and schedules that are necessary to carry out tactical plans.

Question 11

Top managers at Today's Finds department store found their employees do not really share a common sense of purpose nor do they have a common set of values. This suggests that top management has not provided a clear vision for the firm.

Accepted Answer

A vision is a broad statement of why an organization exists and what it seeks to accomplish. It is intended to give the organization a sense of purpose and provide workers with a set of values and a sense of direction.

Question 12

The CIO, COO, and CFO are classified as top management positions.

Accepted Answer

The CIO (Chief Information Officer), COO (Chief Operating Officer), and CFO (Chief Financial Officer) are all executive positions and part of the top management team in most organizations.

Question 13

In order to ensure effective implementation, managers should make only one set of plans and carefully follow them to ensure that the organization's objectives are achieved.

Accepted Answer

Economic and competitive conditions change so rapidly that it is wise to have alternative plans available in the event the primary plan does not achieve its objectives. This is the idea behind contingency planning.

Question 14

The visual illustration of the relationships among the people within an organization that shows who is accountable for the work and who reports to whom is called a Gantt Chart.

Accepted Answer

The visual illustration of the relationships among the people within an organization that shows who is accountable for the work and who reports to whom is actually called an organizational chart. A Gantt Chart is a tool used for project management to show the schedule and progress of tasks.

Question 15

Contingency planning is most important in markets where conditions are relatively stable and market growth is predictable.

Accepted Answer

Contingency planning is the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives. The need to implement contingency plans is more likely to arise in markets where there is a great deal of rapid change and uncertainty.

Question 16

Supervisory managers are those who directly oversee the activities of workers and evaluate their daily performance.

Accepted Answer

Supervisory managers are responsible for monitoring and evaluating the performance of workers under their supervision on a daily basis.

Question 17

Susan is part of the top management team at Nimbus Rain Gear, a company that produces umbrellas, raincoats, hats, and all-weather shoes. As a member of top management, Susan is more likely to be involved in strategic planning than in tactical planning.

Accepted Answer

Top management normally carries out strategic planning, while lower-level managers are usually responsible for tactical planning.

Question 18

Organizing involves allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives.

Accepted Answer

Organizing is one of the key functions of management and involves the allocation of resources, assignment of tasks, and establishment of procedures to achieve the goals and objectives of the organization.

Question 19

The SWOT analysis focuses only on the internal activities of the firm, while a PERT analysis is used to review the external environment in which the firm operates.

Accepted Answer

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. While the strengths and weaknesses part of SWOT analysis focuses on internal aspects of the organization, the opportunities and threats part of SWOT looks at the external environment in which the organization operates.

Question 20

Margot needed to solve a problem fast! She called together her department team and asked them to list as many possible solutions as they could come up with in a short period of time. During the process she encouraged responses and avoided censoring what her workers said. Margot is utilizing a problem-solving technique known as brainstorming.

Accepted Answer

Brainstorming is a problem-solving technique that encourages a group of people to come up with as many suggestions for solving the problem as possible in a short period of time, and with no censoring of ideas.

Quiz 7: Management and Leadership