chapter 6 test

Research suggests that individual and organizational performance increase _______ when an evaluation system based on specific goals and objectives is implemented.

16%

Eisenhardt suggests that organizations should have ___________ key goals or rules which guide how the firm operates, identify which opportunities to pursue, set priorities, manage timing of actions, and even inform business exit decisions.

2-7

Metric guru Graham Brown suggests that managers should not try to follow any more than _______ measures of performance, in terms of performance on objectives.

20

Goals and objectives serve to accomplish all of the following EXCEPT:

Align goals with objectives

___________ is a framework designed to translate an organization's mission and vision statements and overall business strategy into specific, quantifiable goals, and objectives.

Balanced Scorecard

Objectives typically include which of the following

Be clear, concise, and understandable

Goals are outcome statements that define what an organization is trying to accomplish:

Both programmatically and organizationally

A Balanced Scorecard relies on which of the following processes to bind short-term activities to long-term activities?

Communicating and linking

______________ is when a problem arises either in the way that success is being measured or in the nature of the objectives, and is identified in advance of any review.

Continual assessment

CSR stands for ___________________.

Corporate Social Responsibility

_____ reporting measures an organization's economic, social, and environmental performance and impacts.

Corporate Social Responsibility (CSR)

____________ is about how companies manage their business processes to produce an overall positive impact on society.

Corporate Social Responsibility (CSR)

Consumers attracted to LOHAS have been collectively referred to as __________________ and represent a sizable group in the U.S.

Cultural creatives

The following is NOT considered a best practice when managing performance evaluations:

Determine how best to use the Balanced Scorecard

An agreed-upon set of goals and objectives as part of a formal discussion with each staff member to review individual activities to date is sometimes called a(n) ________________.

Employee performance plan

The Dow Jones Sustainability index looks at competence in which of the following areas?

Financial

All of the following statements regarding performance evaluations are true EXCEPT

Giving performance issues ultimately decreases morale

In a Balanced Scorecard, the internal area looks at production and _______________ measuring performance in terms of maximizing profit from current products and following indicators for future productivity.

Innovation

KPMG's 2008 Report on U.S. Firm CSR practices found the top drivers for CSR include which of the following?

Innovation and learning

_____ describes a $226.8 billion marketplace for goods and services focused on health, the environment, social justice, personal development, and sustainable living.

LOHAS

The most common performance appraisal error is ____________, and managers often realize they are committing it.

Leniency

The Balanced Scorecard is aimed to make key improvements on a simple ________ system, particularly by more clearly tying goals and objectives to vision, mission, and strategy, and branching out beyond purely financial goals and objectives.

Management by Objectives (MBO)

_______ is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources.

Management by Objectives (MBO)

By relying on _________________, the scorecard forces managers to come to agreement on the metrics they will use to translate their lofty visions into realities.

Measurement

Goals and objectives provide the foundation for ________________.

Measurement

_____ is a fundamental requirement and an integral part of strategic planning, and of principles of management more generally.

Measurement

The actual metrics used to gauge performance on objectives is called _________

Measures

Characteristics of the approach to setting and managing goals and objectives include which of the following?

Measures should be based around the needs of customers, shareholders and other key stakeholders

Among the top motivators driving corporations to engage in CSR include all of the following reasons EXCEPT

Meeting or exceeding budget

____________ are very precise, time-based, measurable actions that support the completion of a goal.

Objectives

At the beginning of the year, the manager and employee discuss the employee's goals or objectives for the year and this will form the basis for ongoing discussion recorded in a document called the ____________

Performance Plan

A _________________ is a constructive process to acknowledge the performance of an employee

Performance evaluation

Both MBO and the Balanced Scorecard fit in the larger collection of tools called ____

Performance management systems

Individual employees understand how their own productivity supports the overall strategy using ______________.

Personal scorecards

MBO was first outlined by the management guru ________________.

Peter Drucker

In a Balanced Scorecard, the customer area looks at customer satisfaction and ________

Retention

_______________ is the net profit divided by total sales

Return on Sales (ROS)

Characteristics of appropriate goals and objectives include which of the following?

Simplify

Examples of measures used in objectives include which of the following?

Stock price

Balanced Scorecard is a sophisticated instrument panel for coordinating and fine tuning a company's operations and businesses so that all activities are aligned with its ________________.

Strategy

Characteristics of MBO includes which of the following?

Systematic and organized approach

One MBO criticism is

That it seemed disconnected from a firm's strategy

Experts from GreenBiz.com say the Balanced Scorecard opportunities are used in CSR because of all of the following EXCEPT

The Balanced Scorecard is a focused set of key financial indicators.

The performance plan will include a section that identifies all of the following EXCEPT:

The reward or promotion objectives

Goals and objectives are difficult to set because

They are set by managers without the approval of employees

The measurement of CSR's dimensions is commonly called _____________.

Triple bottom line

Which of the following is NOT one of the areas you should think about when having your own performance reviewed:

Who should conduct the review

According to Drucker, effective MBO managers focus on the activity, not the result.

false

Goals and objectives are a not a basis for reward systems.

false

Goals are typically not set for the organization but for the stakeholders outside the organization.

false

Historic financial goals and objectives, even though financial outcomes are wide ranging in scope, are also purely historic

false

It is not only the top managers who set goals and objectives for the entire organization.

false

Success and progress in achieving goals and objectives will be indicated by how well the vision and mission are achieved.

false

TBL indicators can be an effective format for the Balanced Scorecard.

false

The GRI guidelines are intended to complement GAAP by providing the basis for credibility and precision in financial reporting.

false

The main challenge with fact-based objectives is that many firms find future opportunities in markets where there is an existing set of customers.

false

The performance plan is more complex than the Balanced Scorecard.

false

The role of goals and objectives are achieved only in the planning stage.

false

Throughout the year, the supervisor must give performance evaluations to all employees to see if they meet their individual goals and objectives.

false

When a scorecard is disseminated, strategy becomes a tool specifically for top management

false

According to Drucker, one thing an MBO system should provide is ____

focus

__________ are outcome statements that define what an organization is trying to accomplish.

goals

Goals and objectives are a basis for _______________ systems, and can align interests and accountability within and across business units.

reward

Assessing performance through financial returns only provides information about how well the organization did prior to the assessment.

true

Financial outcomes are often short-term in nature, so they omit other key factors that might be very important to the longer-term viability of the organization.

true

Functional areas, like accounting and marketing, will need to have goals and objectives that help show how those functions are contributing to the organization's goals and objectives.

true

Goals and objectives provide a form of control since they create a feedback opportunity regarding how well or how poorly the organization is executing its strategy.

true

In MBO systems, goals and objectives are written down for each level of the organization.

true

KPMG's 2008 International Survey of Corporate Responsibility Reporting reflects the growing importance of corporate responsibility as a key indicator of non-financial performance.

true

Kaplan and Norton's Balanced Scorecard, Accenture's Performance Prism, and Skandia's Intellectual Capital Navigator are examples of boilerplate versions of financial measurement.

true

Most organizations conduct employee evaluations at least once a year.

true

One of the key litmus tests for the setting of goals, objectives, and measures is whether or not they are linked in some way to the key factors driving an organization's success or competitive advantage.

true

One of the organizational challenges with CSR is that it requires firms to measure and report on aspects of their operations that were unmonitored or don't clearly map into the firm's strategy.

true

The Global Reporting Initiative is the internationally accepted standard for TBL reporting.

true

The manager should be directed and controlled by the objectives of performance rather than by his/her boss.

true

The way that the firm is organized can affect goals and objectives in a number of ways.

true

While goals may sometimes be general, the objectives and the metrics that gauge them should be specific.

true