Chapter 6 - Section 3

In businesses, _____ include the president and other top executives, such as the chief executive officer, chief financial officer, and chief operations officer, who have overall responsibility for an organization.

• first-line managers
• B)      top managers
• C)      trade creditors
• D)      external auditors
• E)      middle managers

  In an organization, decisions regarding adding new products, acquiring companies, and moving into foreign markets would most typically be made by

• A)      the first-line management.
• B)      a sales manager.
• C)      the middle management.
• D)      a production manager.
• E)      the top management.

Kevin is a top-level manager at an advertising firm. He has many years of varied experience and he spends most of his time making strategic decisions about how to use the company's resources. On which management function does he spend most of his time?

• benchmarking
• B)      controlling
• C)      organizing
• D)      staffing
• E)      planning

 Dawn manages a small coffee house. In fact, this business is so small that Dawn is the only manager. What level manager is Dawn?

• A)      Dawn is a first-line manager because small companies have no need for the other management levels.
• B)      Dawn assumes the responsibilities of all three levels.
• C)      As the only manager, Dawn is a top manager, delegating the functions of the other levels to her employees.
• D)      Dawn is a middle manager, which is the most common level of management in small businesses.
• E)      Dawn prefers to be called a supervisor because she wants her employees to have more authority and not be overwhelmed by her management status.

      Which of the following is true of top management compensation?

• A)      Stockholders and key stakeholders support paying CEOs higher salaries because they recognize the importance of capable leadership.
• B)      If a company performs poorly, the CEO is given higher pay to motivate him or her to work harder to improve performance.
• C)      Stakeholders give top management perks and special treatment for doing a good job.
• D)      Compensation committees are working with boards of directors and CEOs to detach salary from performance because it isn't fair to hold top managers solely responsible for the company's performance.
• E)      Many firms are trying to align CEO compensation with performance.

  Claudia is a manager at a large technology company. Since her company wants to serve consumers from fast-growing demographic groups such as Hispanics, African Americans, and Asian Americans, she wants to hire employees from those groups to help make decisions regarding issues related to consumer diversity. All of the following are rules she should follow in diversity recruiting EXCEPT

• A)      limit hiring to individuals from the chosen demographic groups.
• B)      show prospective employees that the company is diversity-friendly.
• C)      educate all employees on the tangible benefits of diversity recruiting to garner their support.
• D)      spend some money getting the message out to the right places.
• E)      support community-based diversity organizations.

    _____ are responsible for tactical and operational planning that will implement the general guidelines established by top management.

• A)      Chief executive officers
• B)      Middle managers
• C)      Top-level managers
• D)      Trade creditors
• E)      External auditors

The specific operations of an organization, plant, division, or department would most typically involve the _____ of the company.

• A)      top management
• B)      middle management
• C)      executive officers
• D)      board of directors
• E)      stockholders

Which of the following has been a recent trend with regard to the different levels of management within an organization?

• declined within organizations.
• B)      The top management of most organizations spends most of its time directing and controlling workers' daily performance on the job.
• C)      Effective managers at enlightened corporations have found that diversity is detrimental for workers and for the bottom line.
• D)      The ranks of middle managers have been shrinking as more and more companies downsize to be more productive.
• E)      Most stakeholders support the perks and special treatment the top management of an organization gets.

Stella manages the computer department at Mega Tech, Inc. She helps the organization implement its general guidelines by managing the specific operations related to her department. Stella is a

• A)      first-line manager.
• B)      middle manager.
• C)      top manager.
• D)      supervisor.
• E)      chief executive officer.