Chapter 5

Question 1

Management

Answer 1

is a process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment

Question 2

Planning

Answer 2

is the process of determining the organization’s objectives and deciding how to accomplish them

Question 2

Management Functions

Answer 2

planning, organizing, leading, staffing, controlling

Question 3

Organizing

Answer 3

is the structuring of resources and activities to accomplish objectives in an efficient and effective manner

Question 4

Staffing

Answer 4

is hiring people to carry out the work of the organization

Question 5

Directing (leading)

Answer 5

is motivating and leading employees to achieve organizational objectives

Question 6

Controlling

Answer 6

is the process of evaluating and correcting activities to keep the organization on course

Question 7

Downsizing

Answer 7

the elimination of significant numbers of employees from an organization

Question 8

Controlling involves five activities

Answer 8

a. Measuring performance.
b. Comparing present performance with standards or objectives.
c. Identifying deviations from the standards.
d. Investigating the causes of deviations.
e. Taking corrective action when necessary.

Question 9

Organizational culture (corporate culture)

Answer 9

refers to an organization’s shared values, beliefs, traditions, philosophies, rules, and heroes. It exists in every organization regardless of size, type, product, or profit objective

Question 10

A firm’s culture may be expressed formally

Answer 10

through codes of ethics, memos, manuals, and ceremonies

Question 11

A firm’s culture may be expressed informally

Answer 11

through dress codes, work habits and extracurricular activities

Question 12

Structure

Answer 12

is the arrangement or relationship of positions within an organization

Question 13

Organizational charts

Answer 13

visual displays of structure, lines of authority (chain of command), staff relationships, etc

Question 14

Specialization

Answer 14

the division of labor into small, specialized tasks and the assignment of single tasks to employees

Question 15

Departmentalization

Answer 15

the grouping of jobs into working units that are usually called departments, units, groups, or divisions

Question 16

Functional departmentalization

Answer 16

involves grouping jobs according to business function such as production, marketing, and finance

Question 17

Product departmentalization

Answer 17

the grouping of jobs around the firm’s products

Question 18

Geographical departmentalization

Answer 18

the grouping of jobs by geographical location, such as state, region, country, or continent

Question 19

Customer departmentalization

Answer 19

the grouping of jobs around the needs of various customers