Chapter 8

Question 1

What are the four primary functions of management?

Answer 1

1. Planning: includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
2. Organizing: includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization’s goals and objectives.
3. Leading: involves creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives.
4. Controlling: involves establishing clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not.

Question 2

What are the four types of planning, and how are they related to the organization’s goals and objectives?

Answer 2

1. Strategic planning is broad, long-range planning that outlines the goals of the organization.
2. Tactical planning is specific, short-term planning that lists organizational objectives.
3. Operational planning is part of tactical planning and involves setting specific timetables and standards.
4. Contingency planning involves developing an alternative set of plans in case the first set does not work out.

Question 3

What are the steps involved in decision making?

Answer 3

Decision making is choosing among two or more alternatives and it is the heart of all management functions. The six D’s of decision making are (1) define the situation, (2) describe and collect needed information, (3) develop alternatives, (4) decide which alternative is best, (5) do what is indicated (begin implementation), and (6) determine whether the decision was a good one and follow up.

Question 4

What is the organizing function of management?

Answer 4

Organizing means allocating resources (such as funds for various departments), assigning tasks, and establishing procedures for accomplishing the organizational objectives.

Question 5

What are the three levels of management in the corporate hierarchy?

Answer 5

The three levels of management are (1) top management (highest level consisting of the president and other key company executives who develop strategic plans); (2) middle management (general managers, division managers, and plant managers who are responsible for tactical planning and controlling); and (3) supervisory management (first-line managers/supervisors who evaluate workers’ daily performance).

Question 6

What kind of skills do managers need?

Answer 6

Managers must have three categories of skills: (1) technical skills (ability to perform specific tasks such as selling products or developing software), (2) human relations skills (ability to communicate and motivate), and (3) conceptual skills (ability to see organizations as a whole and how all the parts fit together). Managers at different levels need different skills.

Question 7

What is the difference between a manager and a leader?

Answer 7

A manager plans, organizes, and controls functions within an organization. A leader has vision and inspires others to grasp that vision, establishes corporate values, emphasizes corporate ethics, and does not fear change.

Question 8

Which leadership style is most effective?

Answer 8

There are different leadership styles ranging from boss-centered to subordinate-centered leadership. The most effective leadership style depends on the people being led and the situation.

Question 9

What are the five steps of the control function?

Answer 9

Controlling incorporates (1) setting clear standards, (2) monitoring and recording performance, (3) comparing performance with plans and standards, (4) communicating results and deviations to employees, and (5) providing positive feedback for a job well done and taking corrective action if necessary.

Question 10

What are the five steps of the control function?

Answer 10

Controlling incorporates (1) setting clear standards, (2) monitoring and recording performance, (3) comparing performance with plans and standards, (4) communicating results and deviations to employees, and (5) providing positive feedback for a job well done and taking corrective action if necessary.

Question 11

What qualities must standards possess to be used to measure performance results?

Answer 11

Standards must be specific, attainable, and measurable.