MGT Ch 5

A "program" is the same thing as a "project".

False

A mission statement helps an organization do strategic planning, but it is not necessary for effective operational planning.

False

A procedure outlines general responses to a designated problem or situation.

False

Harley Davidson is expert at producing and selling only motorcycles. They are known as "analyzers."

False

Identifying the facilities, equipment, and other resources, occurs at the definition stage of the project life cycle.

False

In an MBO program, it is sufficient to set goals and then let subordinates determine how to attain them.

False

Individuals who don't want the responsibility that comes with promotion may follow a transitory career path.

False

Objectives are structured so that they become more general as they "cascade" downward through the organization's hierarchy.

False

Planning helps managers to cope with events that can be predicted, but not when the future is uncertain.

False

Policies, procedures, and rules are examples of single-use plans.

False

Reactors have a "let others take the risks of innovating, and we'll imitate what works the best" attitude.

False

Strategic goals are set by and for middle managers; they focus on the actions needed to achieve operational goals.

False

Tactical goals focus on objectives for the organization as a whole.

False

Tactical planning is done by first-line managers and looks forward to the next 1-3 weeks.

False

The execution stage of the project life cycle occurs when the project is accepted by the client.

False

A mission statement expresses what the organization should become, where it wants to go strategically.

False (An organization's mission statement identifies the goods or services it provides and will provide. A vision statement expresses what the organization should become, where it wants to go strategically)

MBO was developed by Frederick Taylor as part of Scientific Management.

False (First suggested by Peter Drucker in 1954, MBO has spread largely because of the appeal of its emphasis on converting general objectives into specific ones for all members of an organization)

Goals are arranged in a value chain.

False (Goals are arranged in a hierarchy known as a means-end chain because in the chain of management the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends.)

A goal is a specific commitment to achieve a measurable result within a stated period of time.

True

A number of years ago, Rubbermaid had the goal of producing one new product a day. At that time, Rubbermaid would be described as a prospector.

True

A project team whose members are separated from the normal operation of an organization and asked to produce a new, innovative product is called a "skunkworks".

True

A rule is a standing plan that designates specific required action.

True

A vision is a long term goal describing what a company wants to become.

True

A vision statement expresses what the organization should become and where it wants to go strategically.

True

An action plan defines the course of action needed to achieve the stated goal.

True

As a manager, you can control the direction of planning by improving future plans.

True

Comparing results with the plan and taking corrective action are mechanisms associated with the planning/control cycle.

True

Cutting costs and keeping fares low is a key tactical goal for Southwest's middle managers.

True

Deadlines provide a mechanism for giving managers feedback.

True

Engineering is a kind of business problem that is portrayed in the adaptive cycle.

True

In order for MBO to be successful, it must be implemented throughout the entire organization.

True

One survey found that most organizations said that they had a clearly articulated strategic direction.

True

Planning and strategic management derive from an organization's mission and vision about itself.

True

Planning helps you check your progress.

True

Project management follows project planning and is used to maintain progress of the activities that comprise the project.

True

Spiral careers and linear careers are both upwardly mobile.

True

The accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends.

True

The career path that most resembles the traditional view of "climbing the stairs" up a corporate hierarchy is the "linear career."

True

The operating plan identifies clear targets such as revenues, cash flow, and market share.

True

There are five steps in the planning and strategic management process.

True

Which of the following is a stage of the project life cycle? a. definition b. elaboration c. deadlines d. selection e. controlling

a. definition

The second step in the planning and strategic management process is to formulate the strategic plans, then tactical and operations plans.

False

A company that believes in letting other organizations take the risks of product development and marketing and then imitate what seems to work best is called a(n) __________ a. reactor. b. prospector. c. analyzer. d. defender. e. executor.

c. analyzer.

When a student is identifying a topic for a research paper, she is in the __________ stage of a project. a. execution b. planning c. definition d. closing e. vision

c. definition

What is the time frame of a strategic plan? a. 15 - 25 years b. 5 - 15 years c. 1 - 5 years d. 6 - 24 months e. 1 - 52 weeks

c. 1 - 5 years

Which of the following would BEST describe MBO? a. It is a top-down system. b. It is a bottom-up system. c. Its purpose is to motivate employees. d. Its purpose is to control employees. e. It is used to benchmark against competitors.

c. Its purpose is to motivate employees.

Which of the following is a benefit of planning? a. Planning requires you to set aside the time to do it. b. You can make all decisions without consulting superiors. c. Planning helps you cope with uncertainty. d. Planning helps you compare your results to your competition. e. Planning helps the company remain spontaneous.

c. Planning helps you cope with uncertainty.

Anthony's main focus is to complete his project on time. This project is in the ____________ stage. a. closing b. planning c. execution d. definition e. MBO

c. execution

MBO was developed by Peter Drucker in the _______ a. 1990s. b. 1980s. c. 1970s. d. 1960s. e. 1950s.

e. 1950s.

The goal 'as many planes as possible should arrive on time' meets the criteria for a SMART goal.

False

In an MBO program, it does not matter if objectives are set jointly by a manager and her subordinate, or if the manager imposes them on the subordinate.

False (Joint manager/subordinate participation is important to the program. One result of joint participation, research shows, is that it compels people to set more difficult goals, which may have a positive effect on their performance.)

Operational planning is normally performed by middle management.

False (Strategic priorities and policies are passed down to middle managers, who must do tactical planning. Operational planning is done by first-line managers)

The planning/control cycle has three planning steps and three control steps.

False (The planning/control cycle has two planning steps and two control steps)

The purpose of MBO is to control subordinates.

False (The purpose is to motivate rather than control subordinates.)

Southwest's decision to fly just one type of airplane, Boeing 737s, was a tactical decision.

False (it was a strategic decision)

Southwest's decision to limit the turnaround time between flights to 20 minutes is an operational goal.

False (it was a tactical decision)

A project has less scope and complexity than a program.

True

MBO is a four-step process.

True

Project planning is the preparation of single-use plans, or projects.

True

First suggested by Peter Drucker in 1954, MBO has spread largely because of the appeal of its emphasis on converting general objectives into specific ones for all members of an organization.

True (First suggested by Peter Drucker in 1954, MBO has spread largely because of the appeal of its emphasis on converting general objectives into specific ones for all members of an organization.)

Muhammad is conducting training of the end-users of a new computer system that is being installed. This project is in the ____________ stage. a. closing b. planning c. execution d. definition e. MBO

a. closing

Planning is the __________ step in the management process, and involves setting goals and deciding how to achieve them. a. first b. second c. third d. fourth e. fifth

a. first

Which of the following is a step in the planning and strategic management process? a. formulate the grand strategy b. hire appropriate personnel c. formulate the operational plans followed by the tactical plans d. review the profit and loss statement e. review the results of the strategy

a. formulate the grand strategy

The _________ identifies the goods or services the organization provides and will provide, and the reasons for providing them. a. mission statement b. purpose c. vision d. strategy e. tactics

a. mission statement

Which of the following is in the correct order? a. mission statement & vision statement, strategic planning, tactical planning, operational planning b. vision statement, mission statement, strategic planning, operational planning, tactical planning c. control of strategy, mission statement, strategic planning, tactical planning, operational planning d. mission statement, vision statement, strategic planning, operational planning, tactical planning e. mission statement, vision statement, tactical planning, strategic planning, operational planning

a. mission statement & vision statement, strategic planning, tactical planning, operational planning

A __________ outlines the general responses to a designated problem or situation. a. policy b. rule c. procedure d. project e. program

a. policy

Project planning is most often followed by _______ a. project management. b. task management. c. project maintenance. d. activities management. e. project financing.

a. project management.

Bartolome is participating with other managers in a discussion about what his organization's goals should be for the next five years. He is participating in _________ a. strategic planning. b. operational planning. c. tactical planning. d. controlling. e. writing a mission statement.

a. strategic planning.

Which of the following is the best statement of a goal? a. I want to lose weight. b. I want to lose 20 pounds by June 1, 2010. c. I want to lose 40% of my body mass by next month. d. I want to look better. e. I want to start losing weight soon.

b. I want to lose 20 pounds by June 1, 2010.

MBO stands for _________ a. Management by Observation b. Management by Objectives c. Management by Objection d. Management by Obligation e. Management by Oblivion

b. Management by Objectives

The four stages of a project are, in order: a. definition, execution, planning, closing. b. definition, planning, execution, closing. c. planning, definition, execution, closing. d. planning, execution, definition, closing. e. execution, definition, planning, closing.

b. definition, planning, execution, closing.

Which level of management is more often engaged in operational planning? a. working-level employees b. first-line managers c. middle managers d. top managers e. consultants

b. first-line managers

The statement of an organization's purpose or reason for being is called its _________ a. vision statement. b. mission statement. c. strategic plan. d. operational plan. e. tactical plan.

b. mission statement.

Ivan is meeting with his subordinates to work out the numbers of positions for workers needed to handle production for the next 6 months. Ivan is involved in _______ a. strategic planning. b. operational planning. c. tactical planning. d. controlling. e. developing an MBO.

b. operational planning.

Barbara is identifying the facilities and equipment needed to make the "big picture" happen. This project is in the ___________ stage. a. closing b. planning c. execution d. definition e. vision

b. planning

Joyce is in the library checking to see how much material is available on a topic she has tentatively chosen for a research paper. Joyce is in the ___________ stage of her project. a. execution b. planning c. definition d. closing e. selection

b. planning

Juanita is identifying the facilities and equipment that will be needed in a project. This project is in the _________ stage. a. closing b. planning c. execution d. definition e. MBO

b. planning

The constant feedback loop designed to ensure plans stay headed in the right direction is called the ________ a. means-end chain. b. planning/control cycle. c. control/planning system. d. project management cycle. e. project planning loop.

b. planning/control cycle.

A single-use plan of less scope and complexity than a program is a ________ a. strategy. b. project. c. task. d. step. e. mission.

b. project.

Which of the following is one of the organizational responses to uncertainty identified by Miles and Snow? a. investigator b. prospector c. planner d. developer e. realtor

b. prospector

A __________ designates specific required action. a. policy b. rule c. procedure d. project e. program

b. rule

Planning is defined as a. coping with uncertainty by analyzing past actions. b. setting goals and deciding how to achieve them. c. correcting problems that have occurred. d. the same process as MBO. e. strategic management.

b. setting goals and deciding how to achieve them.

A project team whose members are separated from the normal operation of an organization and asked to produce a new, innovative product is called a ______ a. program. b. skunkworks. c. SMART team. d. MBO. e. one-minute team.

b. skunkworks.

A "SMART" goal is one that is ________ a. specific, maintainable, attainable, realistic, and time-bound. b. specific, measurable, attainable, results-oriented, and has targeted dates. c. specific, maintainable, achievement-oriented, real-time, and targeted. d. specific, measurable, affordable, realistic, and targeted. e. specific, maintainable, aligned with other goals, realistic, and time-bound.

b. specific, measurable, attainable, results-oriented, and has targeted dates.

After setting goals, managers should next __________ a. ignore the subordinate. b. supervise the subordinate closely c. prepare an action plan for accomplishing the goals. d. ignore the performance of the team, focusing only on the worker. e. revise the goals whether they need it or not.

c. prepare an action plan for accomplishing the goals.

A __________ outlines the responses to particular problems or circumstances. a. policy b. rule c. procedure d. project e. program

c. procedure

In practicing MBO, a manager should _________ a. decide on goals for employees and inform them of these goals clearly. b. let employees set their own goals. c. set objectives jointly with employees. d. make sure goals are stated generally so they can cover all situations that might arise. e. set goals that are just out of the subordinate's reach.

c. set objectives jointly with employees.

Harley Davidson Motorcycles states that it will improve its profit margin by 15% by ensuring continued high sales of its products for the next three years. This is a statement of Harley Davidson's _________ a. operational goal b. tactical goal c. strategic goal d. management objective e. environmental impact

c. strategic goal

Imelda is meeting with other managers to discuss how the departments within her division can work together in the next twenty-four months to support the organization's goals. She is participating in _________ a. strategic planning. b. operational planning. c. tactical planning. d. controlling. e. writing a mission statement.

c. tactical planning.

Roger Enrico of PepsiCo, had a clear sense of the future and the actions needed to get there. This is an example of a(n) _________ a. mission. b. purpose. c. vision. d. performance. e. action plan.

c. vision.

A "vision statement" is a statement of _________ a. the organization's purpose. b. what the organization sees in its environment. c. what the organization wants to become. d. the organization's reason for being. e. the organization's ethics.

c. what the organization wants to become.

Improving future plans is part of which step in the planning/control cycle? a. making the plan b. carrying out the plan c. benchmarking against competitors d. controlling the direction e. updating the plan

d. controlling the direction

XYZ Company scans its environment regularly. However, it does not tend to seek opportunities outside its present markets. This company would most likely be a(n) __________ a. reactor. b. prospector. c. analyzer. d. defender. e. executor.

d. defender.

Which of the following would be associated with operational planning? a. decisions about the overall direction of the organization b. managers who pay attention to the environment outside of the organization c. implementation of policies and plans of top management d. directing daily tasks of nonmanagerial personnel e. making decisions without clearly defined procedures

d. directing daily tasks of nonmanagerial personnel

The space shuttle Discovery is an example of a _______ a. policy b. rule c. procedure d. project e. program

d. project

A company that focuses on developing new products or services and in seeking out new markets, rather than waiting for things to happen, is known as a __________ a. defender. b. analyzer. c. adaptor. d. prospector. e. reactor.

d. prospector.

Which of the following statements about the adaptive cycle is true? a. Miles and Snow introduced this idea. b. The adaptive cycle means that businesses are continuously cycling through decisions about three kinds of business problems. c. Selecting and making adjustments of products and markets is one of the business problems that is part of the adaptive cycle. d. Establishing roles, relationships, and organizational processes are part of the adaptive cycle. e. All of the above statements are true of the adaptive cycle.

e. All of the above statements are true of the adaptive cycle

In MBO, the structure of the objectives—organizational, divisional, departmental, and individual—is called the ________ of objectives. a. improvement b. personal development c. maintenance d. strategy e. cascading

e. cascading

The first step in the MBO process is ________ a. develop action plan. b. give performance appraisal. c. periodically review performance. d. management establishes employee goals. e. jointly set objectives.

e. jointly set objectives.

MBO works by "cascading" objectives; that is, they become more __________ at lower levels of the organization. a. general b. challenging c. time-bound d. attainable e. specific

e. specific

When an organization plans effectively, it plans in three phases. Starting with the one that should come first, what is the correct order of these phases? a. operational, tactical, strategic b. operational, strategic, tactical c. tactical, operational, strategic d. tactical, strategic, operational e. strategic, tactical, operational

e. strategic, tactical, operational