CHAPTER 1: ANSWERS TO REVIEW AND DISCUSSION QUESTIONS

1. How do managers differ from nonmanagerial employees?

The answer to this question used to be straightforward, but the line between managerial and
nonmanagerial employees has blurred as more employees take on task once reserved for managers. To
keep the answer from becoming too complicated, the best way to address this question is to focus on the
fact that a manager’s job is about helping others do their work.

2. Is your course instructor a manager? Discuss in terms of managerial functions, managerial roles, and
skills.

Course instructors (in contrast to individuals who hold positions such as department head) are not usually
classified as managers. In most situations, a course instructor does not fall within the definition of a
manager when utilizing managerial functions, mainly because students are clients rather than employees.
In some cases, an instructor has little input about course content or how it is to be taught. In these
instances, the instructor makes few managerial decisions.

In terms of managerial roles, course instructors may be involved in some ways in the interpersonal,
informational, and decisional roles. For example, a course instructor could be seen as a liaison
(interpersonal role), a monitor and disseminator (both informational roles), and a disturbance handler
and negotiator (both decisional roles).

Regarding managerial skills, course instructors certainly need technical skills—knowledge about the latest
research and conceptual developments in a particular discipline. They also need significant human skills
as they interact with their students. To a limited extent, the instructor utilizes conceptual skills as courses
are planned or as departmental curriculums are debated.

3. “The manager’s most basic responsibility is to focus people toward performance of work activities to
achieve desired outcomes.” What’s your interpretation of this statement? Do you agree with this
statement? Why or why not?

This statement means that a manager’s job or responsibility is to coordinate and/or focus subordinates’
energies toward performance outcomes that will result in the achievement of organizational goals. By
definition, management is coordinating and overseeing the work activities of others so that their activities
are completed efficiently and effectively. Therefore, most managers and management scholars would
agree with this statement. Coordinating others’ work activities is what distinguishes a manager’s job from
a nonmanagerial one.

4. Explain the universality of management concept. Does it still hold true in today’s world? Why or why
not?

Management principles are needed for the efficient and effective operation of organizations, regardless
of the level of the manager or the industry in which they operate. This is true for today’s organizations
now more than ever. The global environment of today ensures that organizations will face staunch
competition. Failure and weakness on the part of management ultimately lead to loss of market share
and organizational closure. Also, gone are the days when managers could ‘bluff’ their way through their
dealings with employees who have become more demanding and aware of their legal rights.
5. Is business management a profession? Why or why not? Do some external research in answering this
question.

According to the Occupational Outlook Handbook published by the Bureau of Labor Statistics,
management is a profession. In addition to the concept of an administrative manager, the Occupational
Outlook Handbook list a variety of specific types of management positions, such as management analysts,
management consultants, management development specialist (such as human resource managers).
According to the Bureau of Labor Statistics (BLS), administrative services managers held about 247,000
jobs in 2006 with 12% expected in the next ten years. The majority of jobs identified by the BLS, shows
that about 65 percent worked in service-providing industries, including Federal, State, and local
government; health care; finance and insurance; professional, scientific, and technical services;
administrative and support services; and educational services, public and private. The remaining
managers worked in wholesale and retail trade, in management of companies and enterprises, or in
manufacturing.

6. Is there one best “style” of management? Why or why not?

No, there’s probably not one single “best” style of management. Organizational situations vary and what
works best in one organization may not necessarily work best in another. Point out to students that they
will find a variety of managerial “styles” illustrated throughout the textbook in different boxes, examples,
and cases. Each individual tends to develop his or her own preferred “style” of managing.

7. Does the way that that contemporary organizations are structured appeal to you? Why or why not?

Exhibit 1-10 lists some of the important differences between the traditional organization and the
contemporary organization. These differences include flexible work arrangements, employee work teams,
open communication systems, and supplier alliances. Organizations are becoming more open, flexible,
and responsive to changes. Students should reflect on these new elements and defend their selections.

8. In today’s environment, which is more important to organizations—efficiency or effectiveness? Explain

your choice.

Both are integral to effective management. Management refers to the process of coordinating and
integrating work activities so that they’re completed efficiently and effectively with and through other
people. Efficiency is getting the most output from the least amount of inputs, the goal of which is to
minimize resource costs (see Exhibit 1-2). Effectiveness is completing activities so that organizational goals
are attained; often described as “doing the right things” (see Exhibit 1-2).

9. Researchers at Harvard Business School have found that the most important managerial behaviors
involve two fundamental things: enabling people to move forward in their work and treating them
decently as human beings. What do you think of these two managerial behaviors? What are the
implications for someone, like yourself, who is studying management?

Students vary in the degree to which they see businesses as entities that care and concern for their
employees. However, most managers realize that it is a manager’s jobs to develop an employee’s skill
level and to make sure that they are also developing as individuals. Both of these practices, in the end,
will increase an employee’s performance. Skills of job candidates have become important to employers
because of today’s demanding and rapidly changing workplace and employees need to be self-motivated
to constantly upgrade their skills and take on extra work outside of their own specific job area. In
addressing the implications of these behaviors with students, the discussion could include what happens
when organizations treat their employees well or poorly.

10. “Management is undoubtedly one of humankind’s most important inventions.” Do you agree with this
statement? Why or why not?

While most people do not see ‘management’ as an invention, it is safe to say that without the principles
of management and the guidance of managers in organizations, we as a society would not have reached
the level of development that we enjoy today. The goal of management centers on the art of getting
things done. Without organizations and their managers, it would be impossible to accomplish what has
been done in history so far. It is having always been up to managers to coordinate and oversee work
activities in the art of getting things done in the areas of agriculture, medicine, science, and
manufacturing.

CHAPTER – 8 Answers to Review and Discussion Questions

1. Explain what studies have shown about the relationship between planning and performance.

It should be noted that one cannot say that organizations that formally plan always outperform those that
don’t plan. However, studies have indicated that formal planning is often associated with positive
financial results. Generally, performance is also higher in those organizations where planning is present.
And, when higher performance is not the result of formal planning, often the reason is due to something
in the external environment. Finally, studies indicate that at least four years of formal planning are
necessary before performance is affected.

2. Discuss the contingency factors that affect planning.

The first contingency factor is a manager’s level in the organization. Typically, lower-level managers are
operational planners, while upper-level managers are strategic planners. Second, with environmental
uncertainty, plans should be specific, but flexible. And third, the length of future commitments can greatly
affect planning.

3. Describe how managers can effectively plan in today’s dynamic environment.

Environmental uncertainty is a constant. Therefore, managers should develop plans that are specific yet
remain flexible. If managers recognize that planning is an ongoing process, then when a dynamic
environment is encountered, managers can adapt readily. Another way to assist with planning is to craft
an organizational hierarchy that is relatively flat. Allowing lower level managers to set goals and develop
plans is an effective way to deal with a dynamic environment.

4. Will planning become more or less important to managers in the future? Why?

Planning will become more important to managers in the future because of the uncertainty in an
increasingly dynamic environment. Changes constantly occur in both the general and specific
environments of organizations, and many of these changes take place rapidly. Planning helps managers
cope with the uncertainty by forcing managers to look ahead, anticipate change, consider the impact of
the change, and develop appropriate responses.

5. If planning is so crucial, why do some managers choose not to do it? What would you tell these
managers?

Managers may choose not to devote time to planning because they do not know how to plan or feel that
they do not have the necessary time. Others may say that planning is a waste of time, that the future is
going to happen whether or not they plan. However, these reasons do not discount the importance of
planning. Every manager should engage in planning.

6. Explain how planning involves decisions today that will have an impact later.

As managers plan, they make decisions that influence how activities are organized, how employees are
managed, and what control mechanisms are implemented. As managers look to the future by planning,
the decisions they make as they plan will have an impact on their other managerial activities.

7. How might planning in a not-for-profit organization such as the American Cancer Society differ from
planning in a for-profit organization such as Coca-Cola?

he processes of planning is similar, but the content of the plans will differ. The types of objectives that are
established and the plans that are formulated will be influenced by the fact that a not-for-profit
organization does not have profit as its major objective. However, a not-for-profit organization must
devote efforts and resources to planning how to raise funds and to recruit volunteers to achieve its
mission.

8. What types of planning do you do in your personal life? Describe these plans in terms of being (a)
strategic or operational plans, (b) short- or long-term plans, and (c) specific or directional plans.

Students’ responses to this question will, of course, vary. Students may mention their planning to meet
educational and career goals. Encourage your students to think about their everyday lives and the types
of daily, weekly, monthly, and yearly planning they do.

9. The late Peter Drucker, an eminent management author, coined the SMART format for setting goals
back in 1954: S (specific), M (measurable), A (attainable), R (relevant), and T (time bound). Are these still
relevant today? Discuss.

Of all of the material presented in this chapter, most students will readily recall this acronym for goal
setting. These qualities from Drucker have remained basically unaltered and have been cited in numerous
texts and studies. As a part of student discussion, try to find other application for Drucker’s work in this
area beyond the management of employees. What about for school children? Volunteers working for a
community program?

10. Many companies have a goal of becoming more environmentally sustainable. One of the most
important steps they can take is controlling paper waste. Choose a company—any type, any size. Imagine
that you’ve been put in charge of creating a program to control paper waste for the company. Set goals
and develop plans. Prepare a report for your boss (that is, your professor), outlining these goals and plans.

It should also be stressed to students that plans must be accepted by top management and as well as
employees at lower levels if it is to be effectively implemented. Have students discuss the difficulty of
implementing a plan such as this across levels. How could students increase buy-in of the plan? How
would such a plan be ultimately evaluated to determine its success? Using criteria discussed in the
previous question, have students check that their goals match the SMART format.

CHAPTER 9 - Answers to Review and Discussion Questions

1. Explain why strategic management is important.

Strategic management is important for three reasons. First, it makes a difference in how well organizations
perform. Second, it’s important for helping managers cope with continually changing situations. Finally,
strategic management helps coordinate and focus employee efforts on what’s important.

2. Describe the six steps in the strategic management process.

The six steps in the strategic management process encompass strategy planning, implementation, and
evaluation. These steps include the following: (1) identify the current mission, goals, and strategies; (2)
do an external analysis; (3) do an internal analysis (steps 2 and 3 collectively are known as SWOT analysis);
(4) formulate strategies; (5) implement strategies; and (6) evaluate strategies. Strengths are any activities
the organization does well or unique resources that it has. Weaknesses are activities the organization
doesn’t do well or resources it needs but doesn’t have. Opportunities are positive trends in the external
environment. Threats are negative trends.

3. How could the Internet be helpful to managers as they follow the steps in the strategic management
process?

The Internet provides voluminous information conveniently and quickly about competitors,
environmental factors, and customers. This information improves the manager’s ability to make sound
strategic management decisions as he or she faces continuously changing environmental conditions.

4. How might the process of strategy formulation, implementation, and evaluation differ for (a) large
businesses, (b) small businesses, (c) not-for-profit organizations, and (d) global businesses?

All companies, large or small, profit or not-for-profit, domestic or global benefit from the process of
strategy formulation. The major difference that exists between the different types of companies and the
process they go through centers around the development of their mission and goals. For example, the
owners of a small business might not want to pursue the goal of growth and instead focus on stability.
For not-for-profit organizations, the goal is not about making money for owners or stockholders but about
how to find a way to effectively and efficiently maximize their resources to benefit others. In a global
organization, while the SWOT would be more involved due to the number of potential elements involved,
it remains the same except the goals extend beyond serving one country or market.

5. Should ethical considerations be included in analyses of an organization’s internal and external

environments? Why or why not?

Ethical considerations should permeate every activity of an organization. As a firm’s strategy is the basis
for their plans, when ethics are not considered then the organization is likely to ignore potential ethical
problems.
6. Describe the three major types of corporate strategies and how the BCG matrix is used to manage those
corporate strategies.

A growth strategy is when an organization expands the number of markets served or products offered,
either through current or new businesses. The types of growth strategies include concentration, vertical
integration (backward and forward), horizontal integration, and diversification (related and unrelated). A
stability strategy is when an organization makes no significant changes in what it’s doing. Both renewal
strategies—

retrenchment and turnaround—address organizational weaknesses that are leading to performance

declines. The BCG matrix is a way to analyze a company’s portfolio of businesses by looking at a business’s
market share and its industry’s anticipated growth rate. The four categories of the BCG matrix are cash
cows, stars, question marks, and dogs.

7. Describe the role of competitive advantage and how Porter’s competitive strategies help an
organization develop competitive advantage.

An organization’s competitive advantage is what sets it apart, its distinctive edge. A company’s
competitive advantage becomes the basis for choosing an appropriate competitive strategy. Porter’s five
forces model assesses the five competitive forces that dictate the rules of competition in an industry:
threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers,
and current rivalry. Porter’s three competitive strategies are as follows: cost leadership (competing on the
basis of having the lowest costs in the industry), differentiation (competing on the basis of having unique
products that are widely valued by customers), and focus (competing in a narrow segment with either a
cost advantage or a differentiation advantage)

8. “The concept of competitive advantage is as important for not-for-profit organizations as it is for profit
organizations.” Do you agree or disagree with this statement? Explain, using examples to make your case.

Not-for-profit and for-profit companies compete for customers. In the case of not-for-profit companies,
those customers are donors and like any market are limited in size. To be effective non-for-profit
companies need something that will attract donors like for-profit companies attract customers. For
example, United Way has an established network of businesses that regularly donate money as part of
their yearly pledge drives. Another example is Mary Komen’s, known for their work with breast cancer
awareness, that has established a series of runs and walks across the United States and has even had
success in publicizing their cause with the NFL.

9. Explain why strategic leadership and strategic flexibility are important.

Strategic leadership is the ability to anticipate, envision, maintain flexibility, think strategically, and work
with others in the organization to initiate changes that will create a viable and valuable future for the
organization and includes eight key dimensions. Strategic flexibility—that is, the ability to recognize major
external environmental changes, to quickly commit resources, and to recognize when a strategic decision
isn’t working— is important because managers often face highly uncertain environments
10. Describe e-business, customer service, and innovation strategies.

Using the Internet, companies have created knowledge bases that employees can tap into anytime,
anywhere. E-business as a strategy can be used to develop a sustainable competitive advantage; it can
also be used to establish a basis for differentiation or focus. Customer service strategies give customers
what they want, communicate effectively with them, and provide employees with customer service
training. Innovation strategies focus on breakthrough products and can include the application of existing
technology to new uses. An organization that is first to bring a product innovation to the market or to use
a new process innovation is called a first mover.