CH 6 Questions
Management by objectives (MBO) refers to:
a formal goal-setting process involving collaboration between managers and subordinates. -The extent to which goals are accomplished is a major factor in evaluating and rewarding subordinates' performance.
Which of the following is true of operational plans?
They are determined by tactical plans
Unlike a reaction plan, an action plan is:
a plan that operationalizes any other kind of plan in an organization.
_____ is essentially the first step in planning.
Understanding the environment - If managers do not understand this context, they will be unable to develop effective plans.
Decision making is the process of:
adopting one course of action as opposed to others.
A line manager at a brewery sets a target for the minimum number of beer cartons that have to be shipped out by the end of each day. This is an example of a(n) _____ goal.
operational -Operational goals are set by and for lower-level managers. Their concern is with shorter-term issues associated with the tactical goals.
A _____ is the most general form of a standing plan that specifies an organization's general response to a designated problem or situation.
policy
The manager of Follicle, a salon and spa, believes that the techniques they have followed for generations are superior to the latest techniques that are scientifically proven to be more effective. He fears that the use of new techniques may lead to failure and continues to use the existing techniques. In this scenario, which of the following barriers to goal setting and planning is most evident?
resistance to change -The reason for this reluctance may be lack of confidence or fear of failure
The _____ establishes the corporate mission and strategy.
board of directors
Horizontal consistency of goals means that:
goals should be consistent from one department to the next.
Which of the following is an area of focus for tactical plans?
people
An apparel manufacturer decides to open a new facility in a different city. Which of the following will it most likely employ?
program -A program is a single-use plan for a large set of activities. It might consist of identifying procedures for introducing a new product line, opening a new facility, or changing the organization's mission.
_____ are primary inputs for developing tactical goals.
strategic goals -tactical goals are the original strategic plans that help shape tactical plans
The board of directors of Senolandt, a company that manufactures toys for infants, decides to widen its customer base to include young adolescents as well. This is an example of a _____.
strategic plan -A strategic plan is a general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach strategic goals. These plans are set by the board of directors and top management, generally have an extended time horizon, and address questions of scope, resource deployment, competitive advantage, and synergy.
Tactical plans are an organized sequence of steps designed to execute _____.
strategic plans
In order to further an organization's goal of increasing sales by a large margin, the managers coordinate the acquisition of a number of retail outlets in smaller cities. These acquisitions represent the implementation of a(n) _____ plan.
tactical
Which of the following is true of strategic goals?
they focus on broad, general issues
The board of directors of Hither Here Thither, an international cosmetics brand, decides to expand its markets in South Africa in two years. Ronan, the regional manager of South Africa, decides to expand markets by increasing the advertisement budget by 20 percent. The goal set by Ronan is an example of a(n) _____ goal.
tactical - Tactical goals are set by and for middle managers. Their focus is on how to operationalize actions necessary to achieve the strategic goals.
The focus of _____ is on how to operationalize actions necessary to achieve the strategic goals.
tactical goals -they are set by and for middle managers
Wenton and Wenton, an apparel store, decides to focus on summer-friendly clothes. Syler, the manager of the store, plans to do so by introducing a new line of shirts that absorbs sweat quickly from the body. He allocates activities to each of the departments of the store and sets a time frame within which the activities should be completed. Syler's plan is an example of a _____.
tactical plan
Friendly Faces, a not-for-profit organization, sets a target to feed 100 children every day for one year. Rehaan, the local resources manager, is given the responsibility of achieving this goal. In keeping with the guidelines of tactical planning, Rehaan plans to first identify 100 children who could benefit from this project. Rehaan's plan is an example of a _____.
tactical plan -tactical plans are developed to implement specific parts of a strategic plan. a manager needs to recognize that tactical planning must address a number of tactical goals derived from a broader strategic goal
_____ is the catalyst that drives the planning process.
Decision making
Which of the following is a similarity between rules and regulations and standard operating procedures (SOPs)? .
Both are relatively narrow in scope. -and each can serve as a substitute for decision making. An SOP typically describes a sequence of activities, whereas rules and regulations focus on one activity.
_____ usually cover periods from one to five years and are especially important for middle and first-line managers.
Intermediate plans
Which of the following is a common pitfall of formal goal setting?
Poor implementation
_____ goals are goals set by and for an organization's top management.
Strategic goals -They focus on broad, general issues.
Which of the following is true of a standard operating procedure?
It outlines the steps to be followed in particular circumstances. -It typically describes a sequence of activities.
A program is:
a single-use plan for a large set of activities. -It might consist of identifying procedures for introducing a new product line, opening a new facility, or changing the organization's mission.
A fire broke out in a well-reputed hospital in a city. Despite the fire fighters arriving within ten minutes of the occurrence, over a hundred people were severely injured. This was due to insufficient equipment necessary to evacuate people during an emergency. This was clearly a case of the hospital management's faulty _____.
contingency planning -Contingency planning involves the determination of alternative courses of action to be taken if an intended plan of action is unexpectedly disrupted or rendered inappropriate.
Weather Watches, a watch manufacturing company, faces a lot of problems while planning and setting goals as its competitors' technology is constantly developing. It too has to upgrade the technology it uses to keep up with its competitors. Which of the following barriers to goal setting and planning does Weather Watches face?
dynamic and complex environment. -Rapid change, technological innovation, and intense competition can all increase the difficulty of an organization's accurately assessing future opportunities and threats.
Smiles and Rainbows, a not-for-profit organization, defines the reason for its existence as follows: "To provide effective vocational education for underprivileged children throughout the United States." This is an example of an organization's _____.
mission -The mission outlines the organization's purpose, premises, values, and directions
Grandpa's Special is a culinary arts training center. Due to its popularity, a large number of people want to join the center. Since Grandpa's Special will not be able to train a large number of people due to insufficient resources, it decides to grant admission only to ladies between the ages 18 and 25. This is an example of a _____.
policy -a policy is the most general form of standing plan that specified an organizations general response to a designated problem or situation
Which of the following is a function of a planning staff?
to go beyond pet projects and particular departments -A planning staff can reduce the workload of individual managers, help coordinate the planning activities of individual managers, bring to a particular problem many different tools and techniques, take a broader view than individual managers, and go beyond pet projects and particular departments.
The board of directors of a footwear company decides to introduce leather in all its products. Following the steps of collaborative goal setting and planning, which of the following should be the next step?
Managers should tell their subordinates what organizational and unit goals and plans top management has established.
Which of the following is a guideline for tactical plans?
They must specify resources and time frames. -tactical plan must specify precisely what activities will be undertaken to achieve that goal
Which of the following is a purpose served by goals?
They provide an effective mechanism for evaluation and control. -This means that performance can be assessed in the future in terms of how successfully today's goals are accomplished.
