mob chapter 8

Which of the following is one of the elements of a management by objectives (MBO) program? A) absence of a time frame B) participative decision-making C) directional goals D) absence of control measures

B

Which of the following is one of the elements of a management by objectives (MBO) program? A) directional nature of goals B) performance feedback C) indefinite time periods D) a top-down decision making approach

B

Which of the following factors has contributed to the decline in the number of years used to define short-term and long-term plans? A) environmental uncertainty B) profit-orientation of businesses C) flattened organizational structures D) stagnant business conditions

A

A ________ is a broad statement of an organization's purpose that provides an overall guide to what organizational members think is important. A) mission B) proposal C) project D) preamble

A

A manager's analysis of the external environment can be improved by ________, which involves screening information to detect emerging trends. A) environmental scanning B) environmental activism C) critical path analysis D) value screening

A

A standing plan is ________. A) an ongoing plan that provides guidance for activities performed repeatedly B) a plan that stands in place of a preferred plan in case of the failure of the latter C) a one-time plan specifically designed to meet the needs of a unique situation D) a flexible plan that sets out general guidelines for company strategy

A

An organization's ________ goals are official statements of what an organization says, and what it wants its stakeholders to believe, its goals are. A) stated B) seal C) suthentic D) implicit

A

Most company's goals can be classified as either ________ or ________. A) strategic; financial B) operational; tactical C) social; economic D) strategic; operational

A

Plans that encompass only the production or the sales goals of a company are termed ________ plans. A) operational B) strategic C) informal D) financial

A

The commitment concept says that plans should ________. A) extend far enough to meet those commitments made when the plans were developed B) be done for as long a time period as possible C) be done for as short a time period as possible D) not commit to specifically meeting the goals made when the plans were developed

A

The statement that all stores should be well maintained both inside and out is an example of a ________. A) directional plan B) specific plan C) financial goal D) social goal

A

When uncertainty is high, plans should be ________ and ________. A) specific; flexible B) directional; standing C) short-term; directional D) general; informal

A

________ plans apply to the entire organization and establish the organization's overall goals. A) Departmental B) Strategic C) Operational D) Specific

B

Considering the characteristics of well-written goals, which of the following would be a well-written goal for the above scenario? A) To minimize costs, maximize profits, and maximize return on investment. B) To accelerate our growth to the maximum possible level over the next three years. C) To achieve a 25 percent growth in revenue, which is defined as the number of items sold multiplied by their price.

D

Which aspect of planning refers to documents that outline how results are to be achieved? A) goals B) plans C) objectives D) performance

b

________ involves defining the organization's goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities. A) Execution B) Logistics C) Planning D) Operations

c

Short-term plans are those covering ________ or less. A) three years B) one year C) six months D) five years

B

What plans are preferable when uncertainty is high in the business environment? A) standing plans B) directional plans C) specific plans D) informal plans

B

Which of the following is one of the reasons why managers should plan? A) When work activities are coordinated around plans, inefficiencies become obvious. B) Uncertainty can be eliminated and the organization can be insulated from change with planning. C) Planning eliminates the need to set goals. D) Planning eliminates the need to measure work effort.

A

Which of the following is the best indicator of an organization's real goals? A) organizational members' actions B) mission statement C) annual reports D) stock valuation

A

Which of the following is the first step in MBO? A) The organization's overall objectives and strategies are formulated. B) Unit managers collaboratively set specific objectives for their units with their managers. C) Action plans are specified and agreed upon by managers and employees. D) Major objectives are allocated among divisional and departmental units

A

Which of the following is the last step in MBO? A) Progress toward objectives is periodically reviewed, and feedback is provided. B) The organization's overall objectives and strategies are formulated. C) Successful achievement of objectives is reinforced by performance-based rewards. D) Action plans are implemented.

A

Which of the following is true of the impact of formal planning on organizational performance? A) Formal planning is associated with positive financial results. B) Organizations that formally plan invariably outperform those that don't plan. C) The amount of planning done is more important to high performance than the quality of planning and implementation. D) Companies can start seeing the impact of formal planning on performance after about a year of starting the planning process

A

________ is a process of setting mutually-agreed upon goals and using those goals to evaluate employee performance. A) Management by objectives B) Traditional goal setting C) Management by observation D) Management by exception

A

) Which of the following statements, if true, would weaken the argument for the use of the traditional goal setting approach? A) A study of the performance reports of the last 3 years reveals that a reasonable percentage of the workforce has received good performance ratings. B) Employees feel that top management is out of touch with the ground realities of the business because their goals are unattainable. C) The company's recent attempts to diversify into new areas have been moderately successful. D) Competitors have been using the management by objectives approach to set goals

B

A ________ is an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level. A) reverse pyramid B) means-ends chain C) bottom-up ladder D) process sequence

B

Operational plans are usually ________. A) short term, directional, and standing B) short term, specific, and standing C) long term, directional, and single use D) long term, specific, and standing

B

Organizational plans can be classified on the basis of all of the following characteristics, except on the basis of their ________. A) breadth B) attainability C) specificity D) frequency of use

B

The effect of planning on managers is that it forces them to ________. A) grow resistant to change B) anticipate and respond to change C) eliminate uncertainty D) work at cross purposes

B

Which of the following is an example of a single-use plan? A) affirmative action hiring policies of a company B) a plan developed to implement new environmental regulations C) the procedure to be followed for firing low-performing employees D) a plan developed to ensure worker safety at the company's facilities

B

Which of the following is one of the problems associated with traditional goal setting? A) Top level managers tend to define the organization's goals in very narrow terms. B) Transition of strategic goals into departmental, team, and individual goals is difficult. C) It can result in the formation of a means-ends chain. D) Goals set are invariably easily accomplished.

B

Which of the following is true of the traditional approach to planning? A) Plans are developed by organizational members at the various levels. B) This approach makes managerial planning thorough, systematic, and coordinated. C) Plans created through this method are seldom written down. D) Formal planning departments are rarely used in this approach.

B

________ plans apply to the entire organization and establish the organization's overall goals. A) Departmental B) Strategic C) Operational D) Specific B

B

________ refers to gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them. A) Due diligence B) Competitor intelligence C) Data aggregation D) Value analysis

B

A problem associated with traditional goal setting is that ________. A) the narrowly defined goals inhibit a manager's ability to interpret them B) the high degree of reliance on employees for developing goals is not suited to many situations C) clarity is lost as the goals make their way down from the top of the organization to lower levels D) it promotes the growth of a flatter organizational structure and threatens organizational

C

An organization is in the process of goal setting. It has finished reviewing the organization's mission. What should it do next? A) Determine the goals individually or with input from others. B) Write down the goals and communicate them to all who need to know. C) Evaluate available resources. D) Review results and whether goals are being met.

C

An organization's mission states that it "is committed to reducing its environmental footprint"; but its facilities do not comply with statutory environmental regulations. This is an instance of how ________. A) strategic goals help shape financial goals B) long-term goals differ from short-term goals C) an organizations stated goals need not be its real goals D) a company's real goals are derived from its mission statement

C

How can managers effectively plan when the external environment is continually changing? A) They should discontinue formal planning. B) They should set general, but rigid plans. C) They should be ready to change directions if environmental conditions warrant. D) They should continue to follow the set organizational plans as persistence will eventually pay

C

In ________, goals set by top managers flow down through the organization and become subgoals for each organizational area. A) management by objectives B) management by observation C) traditional goal setting D) management by exception

C

Mr. Tyler Nall is president and CEO of a retail chain that is about to begin operations in numerous major cities across the United States. The stores will sell home furnishings that are considered moderately priced for the average-income buyer. During the last few months he has been working to lay out directions for the managers of the stores. Mr. Nall and his vice presidents have decided that each store should have sales equal to or greater than $100 per square foot per day. To attract an adequate number of customers, the store should be well maintained both inside and out. 79) The statement that each store should have sales equal to or greater than $100 per square foot per day is an example of ________. A) a strategic plan B) a directional plan C) a financial goal D) a strategic goal

C

Strategic plans are usually ________. A) short term, directional, and standing B) short term, specific, and standing C) long term, directional, and single use D) long term, specific, and standing

C

The ________ Act makes it a crime in the United States to engage in stealth of a trade secret. A) Sarbanes-Oxley B) Patriot C) Economic Espionage D) Glass-Steagall

C

Top executives are mainly involved in ________ planning. A) functional B) operational C) strategic D) departmental

C

Which of the following is an assumption associated with traditional goal setting? A) Employees will be more motivated to try to attain goals that they helped set. B) Organizational goals must not be communicated to lower level employees. C) Top managers know what is best because they see the "big picture." D) Organizational goals must not be broken down into individual goals.

C

Which of the following is an example of a standing plan? A) a retail chain's plan to counter the entry of a new competitor B) a plan developed to address a sudden, unanticipated surge in demand C) a fire escape policy establishing practices to be followed in an emergency D) a plan to cope with radical changes in the political environment

C

Which of the following is true of competitor intelligence as a means of environmental scanning? A) The Economic Espionage Act makes it a crime in the United States to engage in competitor intelligence. B) It is unethical to use competitor intelligence to make strategic business decisions. C) Competitor intelligence is ethical if competitor-related information is collected from sources accessible and available to the public. D) Buying competitors' products and asking their own employees to evaluate them to learn about new technical innovations is an example of the unethical practices followed in competitor intelligence

C

Which of the following reflects the way goals are set in an MBO program? A) Goals are not used to measure and control employee performance. B) Goals tend to be broad and directional to encourage interpretation by individual managers. C) Apart from being used to ensure that employees are doing what they are supposed to be doing, goals are used as a motivating tool for employees. D) Goals are set by top level managers and lower level employees implement them based upon their interpretation of these goals.

C

Which of the following statements is true regarding an organization's goals? A) All organizations share the single goal of making profits. B) A single goal is more efficient than multiple goals for defining an organization's success. C) Using a single goal such as profit may result in unethical behaviors by employees. D) Long-term success is ensured if managers emphasize only one goal for an organization.

C

________ planning dominates managers' planning efforts at lower levels of the organization. A) Strategic B) Organization-wide C) Operational D) Directional

C

Imagine that you are the owner of a small company that sells corporate gifts through an online store. You employ about 20 people. However, business has slowed down in recent months and you realize that the organization must move in a different direction if it is to survive. You have reset some of the company's overall goals and want to develop a plan to achieve those goals. You are anticipating the business environment to be volatile for the next few years. 81) Considering the above information, it can be determined that your plan must be ________, ________, and ________. A) operational; directional; rigid B) informal; unwritten; flexible C) strategic; general; rigid D) strategic; specific; flexible

D

Long-term plans are defined as those with a time frame beyond ________. A) seven years B) one year C) five years D) three years

D

Nike, Inc. is a sportswear and equipment manufacturer that serves a multitude of sports disciplines. Which of the following statements from Nike would be the best example of a strategic goal? A) a ten percent increase in average annual sales B) a seven percent increase in average annual income C) achieving a return on investment of 17 percent D) accelerating growth through focused execution

D

Robert Downs is in the process of setting up a small community newspaper in his home town of Corning, New York. As a first step, he sets the following goal for his company: "To be a champion for free speech and for the development of the community." This goal is to appear clearly on top of every page of the newspaper. 83) The above goal constitutes the ________ goal of the company. A) informal B) operational C) financial D) strategic

D

Well-written goals are ________. A) written in terms of actions rather than outcomes B) just of reach C) easily achieved D) clear as to a time frame

D

When formal planning fails to lead to higher performance, which of the following is most likely to be the reason for the failure? A) A participative style of planning was used. B) Managers were allowed too much autonomy. C) The company emphasized the control function over other functions. D) Constraints of the external environment.

D

When is the traditional top-down approach to planning most likely to be effective? A) when lower level employees develop plans B) when the plans focus on developing a large number of plans and carefully documenting them C) when the management avoids the use of a formal planning department D) when plans are developed that can actually be used by organizational members

D

Which is the first step managers should follow in goal setting? A) evaluating available resources B) determining goals individually or with input from others C) writing down goals and communicating them to all who need to know D) reviewing the organization's mission

D

Which of the following is the last step in goal setting? A) Review the organization's mission or purpose. B) Determine the goals individually or with input from others. C) Write down the goals and communicate them to all who need to know. D) Review results and whether goals are being met.

D

Which of the following statements is true of planning in dynamic environments? A) Organizations should follow a pyramidal structure when operating in uncertain environments. B) Organizations must discontinue formal planning in such a scenario. C) To be useful in a dynamic environment, plans need to be specific and unchanging. D) Flatter organizational hierarchies are necessary for planning in uncertain environments.

D

Which of the following statements is true of traditional goal setting? A) Traditional goal setting assumes that employees know best and employs a bottom-up approach of setting organizational goals. B) Evaluation of performance is carried out concurrently with the flow of goals through the organization. C) Goals defined narrowly by top managers need to be made more directional as they flow down through the organization. D) Managers at each level define goals and apply their own interpretations and biases as they make them more specific

D

________ plans are plans that are clearly defined and leave no room for interpretation. A) Directional B) Stated C) Long-term D) Specific

D

Which of the following is an assumption associated with traditional goal setting? A) Employees will be more motivated to try to attain goals that they helped set. B) Organizational goals must not be communicated to lower level employees. C) Top managers know what is best because they see the "big picture." D) Organizational goals must not be broken down into individual goals

c