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Rebecca is concerned about the number of customers complaining about the poor service provided by the department she manages for a hardware store. She is convinced that her employees can provide better service and cut complaints significantly. Rebecca has set a goal for her department to reduce customer complaints by 15% within six months. This goal is an example of the type of performance standard needed for effective controlling.

A) True
B) False

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Tactical planning deals with setting long-range goals, while strategic planning develops the specific strategies needed to achieve the organization's operational goals.

A) True
B) False

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Which of the following statements comparing today's workers with those from earlier eras is most accurate? Compared to earlier workers, today's employees are:


A) more loyal to the firm.
B) less educated and less self-directed.
C) more willing to leave the firm to seek better opportunities.
D) more likely to need direct guidance and direction from their managers.

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

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Monica was hired by the Misty Mount Corporation to take over as the new chief executive officer. Her initial impression is that the company is in disarray, primarily because the employees do not have a sense of purpose or a common set of values. Monica's observations suggest that she needs to provide a(n) for Misty Mount:


A) vision
B) contingency plan
C) objective function
D) corporate logo

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

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The autocratic style of leadership can be very effective in emergency situations.

A) True
B) False

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planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives.


A) Strategic
B) Contingency
C) Tactical
D) Alternative

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

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Operational planning looks at the organization as a whole, while strategic planning focuses on specific departmental actions.

A) True
B) False

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Due to the growth of the Internet, recruiting is less important today than in the past.

A) True
B) False

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Two years ago, Travis started his own restaurant supply company, serving the greater Chicago area. Until recently, he has never concerned himself with establishing a formal control system. Now, with a recession looming, he is experiencing cost conscious restaurant owners. He has decided that a formal control system is needed. The first step Travis should take is:


A) draw up a formal organization chart.
B) talk to his banker to set financial goals.
C) devise a set of clear performance standards.
D) design an accident report form so that he can keep accurate records of all accidents that occur.

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

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A comparison of leadership and management suggests that leadership is about creating a vision, while management is about carrying out that vision.

A) True
B) False

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The first step in the controlling process is to monitor and record the actual results.

A) True
B) False

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The last step in the rational decision-making model is to determine whether the decision was a good one and follow up.

A) True
B) False

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When setting standards used in controlling, it is better to simply state general goals such as "better quality" or "higher levels of consumer satisfaction" than it is to spend a lot of time and effort developing more specific standards.

A) True
B) False

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A(n) is a visual device which shows relationships among people and divides the organization's work.


A) organization chart
B) Venn diagram
C) corporate tree
D) Gantt chart

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

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Jack, a manager with Tiny Tots Toy Company, has just participated in a meeting that looked at future trends in the toy industry, and identified new challenges and opportunities for Tiny Tots. Jack's participation in this meeting was part of the organizing function of management.

A) True
B) False

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Managers in progressive organizations tend to emphasize teamwork and cooperation rather than discipline and giving orders.

A) True
B) False

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Research on leadership supports the idea that the best leadership style depends on several factors, including the people being led and the situation.

A) True
B) False

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A mission statement outlines the fundamental purposes of an organization.

A) True
B) False

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is a problem solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas.


A) Brainstorming
B) Game theory
C) CAD/CAM
D) PMI

E) C) and D)
F) None of the above

Correct Answer

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Which of the following persons is most likely to be involved in strategic planning?


A) Chief executive officer
B) Electrical shop supervisor
C) Budget analyst
D) Advertising manager

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

Correct Answer

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