Chapter 7

1. As someone moves up the managerial hierarchy, which skills become relatively more important?

• A) technical skills
• B) human skills
• C) conceptual skills
• D) supervisory skills

2. Conceptual skills are ________.

• A) not as important at the top management level
• B) most important for supervisors
• C) skills that allow a person to understand how all the pieces of an organization fit together to accomplish its objectives
• D) used to motivate, communicate, and lead other employees

3. Which of the four functions of management creates a well-designed road map of the actions needed to lead a company forward?

• A) organizing
• B) directing
• C) controlling
• D) planning

4. Ramon’s job is to establish performance standards, monitor actual performance, and compare actual performance to the standards. Ramon is engaged in the ________ managerial function.

• A) organizing
• B) directing
• C) controlling
• D) planning

5. Which type of planning determines the primary objectives of an organization, and then acts and allocates resources to achieve those objectives?

• A) tactical planning
• B) strategic planning
• C) contingency planning
• D) operational planning

6. Minnesota & Iowa Railway has plans in place to reroute trains in the event that floods or other natural disasters close some of the railroad’s tracks. This is an example of ________ planning.

• A) contingency
• B) tactical
• C) strategic
• D) operational

7. Top management usually spends the majority of time on ________ plans.

• A) tactical
• B) contingency
• C) strategic
• D) operational

8. Tactical planning is primarily the responsibility of ________.

• A) top managers
• B) middle managers
• C) supervisory managers
• D) the CEO

9. A written explanation of an organization’s business intentions and aims is called a(n) ________.

• A) SWOT analysis
• B) strategy for competitive differentiation
• C) objective
• D) mission statement

10. Guideposts by which managers define the organization’s desired performance are called ________.

• A) objectives
• B) missions
• C) opportunities
• D) standards