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Exam 7: Management and Leadership

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Question 1

Multiple Choice

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A chief operating officer (COO) would be classified as part of a firm's:

A) primary management.
B) middle management.
C) top management.
D) first-line management.

E) B) and C)
F) A) and D)

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Question 2

True/False

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Fatma wants to become a manager. However, she is shy and avoids conversation with strangers. She is very comfortable with computers and information technology and has great technical skills in these areas. Fatma's personal traits make her a good candidate for a top management position.

A) True
B) False

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Question 3

Multiple Choice

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Employees often work with managers to develop a(n) that outlines the fundamental purposes of their organization.

Carlos had been thinking of setting up a graphic design service business for quite some time. He knew that he wanted to work at home and he now had several leads for prospective customers. He also knew how much money he needed to make to cover his expenses. He had several ways to approach his new business including working by himself or taking on a partner. Both ways needed more thought to determine what each would involve. In terms of the rational decision-making model, Carlos is in which of the following steps?

Mini-Case Lauzy Fare left his position as senior vice president at Blue Skies Electronics a few weeks ago to become the new CEO of Idle Time Gaming. Before joining the new company, Lauzy spent time studying Idle Time's competitive position and talking to employees in all divisions and at all levels of the organization. Based on his findings, Lauzy believes that Idle Time has potential, but also faces some serious challenges if it expects to grow. Lauzy found that when confronted by him, most of Idle Time's professional employees seemed almost afraid to express their opinions. He learned that Otto Craddick, the previous CEO and founder of the company viewed himself as the boss, and, as such, micromanaged every aspect of the business. This discouraged employees from using their own initiatives and ideas to solve problems. For example, Otto required sales and service representatives to get his approval before they made any major commitments to customers. Otto's policy prevented the organization from responding quickly to customer requests, so sales were lost. Unlike his predecessor, Lauzy believes it is important for sales and service personnel to be able to deal with many types of customer requests without needing approval from top management. He is confident that giving employees the authority and flexibility to deal with customers, and providing them with the training and resources to help them do so, will improve morale within the company, create customer satisfaction, and grow revenues. Lauzy also wants to make workers throughout the organization feel more appreciated. He plans to continue meeting with them on a regular basis to seek their advice. He hopes his work colleagues will eventually respond to his leadership style. He has already encouraged middle managers to get employees more involved in decision-making, and has suggested some problem solving techniques the managers could try. Although he thought that changing the rigidity of the company culture would be his first challenge at the new firm, Lauzy quickly realized that there were no standards in place to measure the progress of changes in internal morale, customer satisfaction, and profitability. He has asked managers in those departments to spend more time setting performance standards and then monitoring actual performance. Lauzy is confident that in a relatively short period of time internal changes will lead to good company performance. As a member of top management, Lauzy performs a variety of important tasks. -Otto, the previous CEO at Idle Time Gaming relied on a(n) style of management.

is the term used to describe giving workers the education and tools they need to assume additional decision-making powers.

Chris was recently promoted to a position as a first-line manager. At this level of management, he will use human relations and conceptual skills as well as technical skills.

Describe three different leadership styles and give an example of a situation in which each style could be most used effectively.

An organizational chart shows who is accountable for the completion of specific work and who reports to whom.

Managers must earn the trust of their employees.

The first step in controlling consists of:

There is no single leadership style that works best in all situations.

Planning involves setting the organizational vision, goals and objectives.

Bryce has worked for Carolina Hotel for 10 years. Greg is a new employee at the hotel. Rachel, who oversees both of these employees, may find that she should use a different leadership styles with Greg than with Bryce.

At Holyfield Chemicals, department heads usually make decisions after meeting with employees and seeking their ideas and suggestions. Department heads at Holyfield Chemicals make extensive use of the style of leadership.

According to the "Spotlight on Small Business" box in Chapter 7, one of the keys to the success of the Blue Man Group has been:

Joseph, a department chair at a major university always gives department faculty members a chance to express their opinions and encourages them to participate in decision-making. Employees who work with Joseph are likely to have a high level of job satisfaction.

External customers are those individuals or units that receive services from other units within the same organization.

Management is the art of getting things done through organizational resources.

Managers focus on making efficient use of their organization's human resources, but leave decisions about the efficient use of other resources such as buildings, machinery, and supplies to engineers and accountants.