Chapter 7

Which of the following is NOT necessary for a Management By Objective (MBO) program to be effective? a) Clear goals assigned to employees by management b) Involvement by top management and subordinates c) An implementation consistent with overall organizational goals d) Employees understanding why MBO was adopted e) A formal goal-setting process

a) Clear goals assigned to employees by management

Who has the formal authority and responsibility for an organization's management? a) Line managers b) Chief executive officer c) Board of directors d) Planning staff e) Executive committee members

a) Line managers

____ set tactical goals. a) Line managers b) Staff members c) Middle-level managers d) Stockholders e) Top-level managers

a) Line managers

____ involves balancing and reconciling possible conflicts among goals. a) Optimization b) Benefaction c) Maximization d) Assimilation e) Elimination

a) Optimization

Managers at Timber Industries have just written a plan that allocates a large part of the firm's cash and personnel resources to a new product line) They have done this because they feel they can get a real advantage over their competition and that the new facilities will have a synergistic effect when combined with current facilities. What kind of plan is this? a) Strategic b) Standing c) Contingency d) Tactical e) Operational

a) Strategic

____ plans are the organizational plans that are broadest in focus and have the longest time frame. a) Strategic b) Functional c) Contingency d) Tactical e) Operational

a) Strategic

Which of the following would be most likely to cause employees to ignore intermediate- and long-term planning? a) Strong emphasis on short-term goals such as quarterly profits b) Overemphasis on quantitative goals c) Extremely challenging goals d) Means-end inversion e) Overemphasis on qualitative goals

a) Strong emphasis on short-term goals such as quarterly profits

Which of the following organizations would face the most difficulty in developing long-range plans? a) Those with dynamic, complex environments b) Those with dynamic, simple environments c) Those with stable, complex environments d) Those with stable, simple environments e) None of these choices

a) Those with dynamic, complex environments

Goals are classified according to their ____ when the terms quality, productivity, and innovation are applied to them. a) area b) specificity c) time frame d) function e) level

a) area

The ____ is the single most important individual in any organization's planning process. a) chief executive officer b) chief legal counsel c) head of planning task force d) chief financial officer e) vice president of planning

a) chief executive officer

An organization's chief executive officer... a) is normally involved in all phases of the planning process. b) usually doesn't assume a direct role in the planning process. c) should not be involved in the planning process. d) tends to act as a consultant in the planning process. e) plays more of an advisory role in the planning process.

a) is normally involved in all phases of the planning process.

Starbucks store managers decide how to customize the snacks to the local market. They make the ____ plan. a) operational b) standing c) single-use d) contingency e) tactical

a) operational

A single-use plan that has a more narrow scope than a program is called a(n)... a) project. b) policy. c) standard operating procedure. d) rule. e) agenda.

a) project.

Chelsea Milling Company, maker of Jiffy mixes, has never spent one cent on advertising. This allows Chelsea to keep prices very low. This is an example of a(n) ____ plan. a) strategic b) standing c) contingency d) tactical e) operational

a) strategic

Middle managers are most closely associated with organizational plans at the ____ level. a) tactical b) strategic c) contingency d) operational e) functional

a) tactical

A(n) ____ for Mothers Against Drunk Driving could be "to develop an advertising campaign for the summer months that would reach teenagers." It would develop naturally out of a strategic goal "to reduce the number of deaths as the direct result of drunk driving by 10 percent next year." a) tactical goal b) mission statement c) operational goal d) operational plan e) vision

a) tactical goal

Black Entertainment Television's target audience is male 18 to 34 years old, because advertisers spend more money on younger consumers. High ratings with those viewers is a(n) ____. a) tactical goal b) mission statement c) operational goal d) operational plan e) strategic goal

a) tactical goal

Goals set for a new product launch are called... a) tactical. b) strategic. c) operational. d) functional. e) autonomous.

a) tactical.

Vic Clark is a sales manager. Every December he requires his salespeople to set their sales goals for the following year, or they cannot attend the annual sales meeting in Jamaica) Clark's action reflects which barrier to goal setting and planning? a) Inappropriate goals b) Improper reward system c) Dynamic and complex environment d) Reluctance to establish goals e) Resistance to change

b) Improper reward system

Goals serve four very important purposes. Each purpose is related closely to one of the four functions of management. According to the text, which of the four functions of management is NOT specifically addressed by one of the purposes served by goals? a) Planning b) Organizing c) Leading d) Motivating e) Controlling

b) Organizing

ETS runs a math, science, and technology competition each year for high schoolers. ETS uses a ____ if plagiarism is suspected) It specifies ETS's general response to the situation. a) Project b) Policy c) standard operating procedure d) rule and regulations e) single-use plans

b) Policy

Which of the following directly follows from the organization's mission? a) Operational plans b) Strategic goals c) Tactical goals d) Tactical plans e) Functional plans

b) Strategic goals

Greg has just completed work on a plan to implement one of the major objectives of the company's strategy. The plan deals with specific time constraints and outlines specific human resource allocations for implementing the plan. What kind of plan is this? a) Strategic b) Tactical c) Long-range d) Contingency e) Integrated

b) Tactical

Many organizations develop a professional planning staff with overall responsibility for the planning process. Which of the following is NOT a reason for using a planning staff? a) The need to integrate and coordinate planning activities b) The need to reduce coalition formation in the organization c) The fact that managers often lack the required tools and skills to do a good job of planning d) The fact that managers tend to focus only on what is good for their part of the organization e) The need to reduce the workload of individual managers

b) The need to reduce coalition formation in the organization

ETS runs a math, science, and technology competition each year for high schoolers. ETS uses... a) a project. b) a standing plan. c) standard operating procedures. d) rules and regulations. e) an agenda)

b) a standing plan.

A contingency plan... a) is used in conjunction with the organization's originally developed plan. b) is developed after considering contingency events. c) can be used only at a strategic level. d) makes an organization less flexible) e) is unnecessary for organizations that face a dynamic environment.

b) is developed after considering contingency events.

In a manufacturing company, you will most likely find more... a) long-term than short-term operational goals. b) long-term than short-term strategic goals. c) short-term than long-term functional goals. d) long-term than short-term tactical goals. e) short-term than long-term strategic goals.

b) long-term than short-term strategic goals.

The ____ of the Helene Cody Foundation is to "to inspire youth to volunteer, to better their communities and themselves." a) tactical plan b) mission statement c) operational goal d) operational plan e) strategic goal

b) mission statement

Kraft Foods Inc. offered to buy Cadbury. This is an example of a(n) ____ plan. a) operational b) strategic c) tactical d) contingency e) standing

b) strategic

Kraft Foods Inc. set a(n) ____ goal to expand its presence in Europe. a) tactical b) strategic c) operational d) functional e) autonomous

b) strategic

Google founders Sergey Brin and Larry Page developed the search technology then discovered a profitable business model, selling advertising in the form of sponsored links and search-specific ads. The business model is Google's ____. a) tactical goal b) strategic plan c) operational goal d) operational plan e) strategic goal

b) strategic plan

Goals set for broad general issues are called... a) tactical. b) strategic. c) operational. d) functional. e) autonomous.

b) strategic.

The strategic goal set forth by Central Ice Machine Company was to be the leading seller of ice machine replacement parts in the United States. As part of its ____ plan, it set up distribution contracts with six manufacturers of refrigeration units. a) strategic b) tactical c) long-range d) contingency e) integrated

b) tactical

You have decided to go into business for yourself. On your loan application, you state that you intend to open a flower shop in the Village Center Mall. What does this statement on your loan application represent? a) A strategic goal b) An operational plan c) A mission statement d) A strategic plan e) A tactical plan

c) A mission statement

You just wrote a short-range plan in support of an intermediate plan. You based this plan on your best estimate of future environmental conditions. What kind of plan did you write? a) Contingency b) Standing c) Action d) Reaction e) Functional

c) Action

What is the essence of formal goal setting? a) A dynamic mission statement b) A stable internal environment c) Collaborative goal setting d) A tall organization structure e) A wide span of management

c) Collaborative goal setting

____ planning is the process by which managers identify alternative courses of action that the organization might follow if various conditions arise. a) Strategic b) Standard c) Contingency d) Integrative e) Goal optimization

c) Contingency

What is the proper managerial response when there are conflicts among goals in different parts of an organization? a) Minimization b) Maximization c) Optimization d) Purification e) Assimilation

c) Optimization

Which of the following is the BEST example of a standard operating procedure? a) The "Do Not Litter" sign in the city park b) The high school plan for dealing with a student with a learning disability c) The Dairy Queen restaurant's plan for how to make a banana split d) The way students are selected for college admission e) The plan to build an equestrian site for the 2004 Olympics

c) The Dairy Queen restaurant's plan for how to make a banana split

Which of the following is the BEST example of a single-use plan? a) The "No Smoking" sign on the restaurant door b) The sign requiring all workers to wash their hands after visiting the restroom c) The plan to build an equestrian site for the 2008 Olympics d) The day-care plan for dealing with a toddler who hits another e) The plan for how McDonald's should cook its french fries

c) The plan to build an equestrian site for the 2008 Olympics

A Day without Immigrants was organized in cities and companies throughout the United States. Tyson closed several meat processing plants for the day. Tyson created a(n) ____ plan to address the absence of workers. a) contingency b) standing c) action d) reaction e) functional

c) action

A year before the census, the federal government hired tens of thousands of temporary workers to prepare for the count. This is an example of a(n) ____ plan. a) contingency b) standing c) action d) reaction e) functional

c) action

One problem with qualitative goals is that they... a) reward inappropriate goal setting. b) are easily measured, so managers tend to overuse them as performance benchmarks. c) are difficult to measure and thus are not good indicators of success or failure. d) are usually inappropriate when viewed in the context of the organization's mission. e) usually involve unattainable performance standards.

c) are difficult to measure and thus are not good indicators of success or failure.

Inappropriate goals... a) focus almost entirely on qualitative factors. b) are not tied to the organization's reward system. c) are not consistent with the organization's mission. d) focus almost exclusively on qualitative factors. e) are not viewed as impossible for employees to achieve.

c) are not consistent with the organization's mission.

Which of the following types of plans is least subject to change because of the time frame involved? a) Strategic b) Functional c) contingency d) Tactical e) Operational

c) contingency

A(n) ____ for Mothers Against Drunk Driving could be to run an ad every week during American Idol. It would develop naturally out of a tactical goal "to develop an advertising campaign for the summer months that would reach teenagers." a) vision b) mission statement c) operational goal d) operational plan e) strategic goal

c) operational goal

Plants Alive rents and maintains plants for businesses and homeowners who love beautiful plants but do not have the time to care for them. The small business could set a(n) ____ to create a newspaper advertisement for a spring sale within the next four weeks. a) tactical goal b) mission statement c) operational goal d) operational plan e) strategic goal

c) operational goal

Goals set for short-term issues are called... a) tactical. b) strategic. c) operational. d) functional. e) autonomous.

c) operational.

The spread of H1N1 flu led colleges and universities to establish their own ____ for dealing with infected individuals. a) Project b) Policy c) standard operating procedure d) Rule e) Agenda

c) standard operating procedure

The two most common types of operational plans are... a) long-range and short-range. b) functional and hierarchical. c) standing and single-use. d) policies and programs. e) contingency and integrated.

c) standing and single-use.

According to the planning process described in the text, operational plans flow directly from... a) strategic goals. b) strategic plans. c) tactical plans. d) the organization's purpose. e) the organization culture.

c) tactical plans.

Tactical planning success depends on execution. Proper implementation requires all EXCEPT which of the following? a) The ability to evaluate each course in light of the goal it is intended to reach b) Vertical and horizontal communication c) The ability to monitor ongoing activities d) Clear-cut operational plans e) The appropriate information and resources in the hands of the decision makers

d) Clear-cut operational plans

Which of the following statements most correctly reflects the relationship between goal setting and planning? a) Goal setting enhances planning. b) Planning facilitates goal setting. c) The two processes are independent. d) Each process enhances the other. e) The two processes are the same thing.

d) Each process enhances the other.

The owners of the Pizza Place set a goal of expanding into five new markets over the next three years. What kind of goal is this? a) Level b) Short-range c) Area d) Intermediate-range e) Long-range

d) Intermediate-range

Who is responsible for identifying, analyzing, and recommending program alternatives; developing and submitting budgets; and finally putting plans into action? a) Top-level managers b) Middle-level managers c) The planning staff d) Line managers e) Marketing staff

d) Line managers

Which of the following statements BEST reflects the proper approach to goal setting? a) Top executives set goals for everyone in the organization. b) Goals should be set starting from the bottom of the organization. c) Individual goals should be set first and then organizational goals. d) Managers should set goals for their own level in the organization. e) Middle managers set goals for all managers lower than them.

d) Managers should set goals for their own level in the organization.

Which of the following is NOT a necessary task while engaged in contingency planning? a) Consider contingency events while planning b) Formally identify contingency events c) Specify indicators for the contingency events d) Monitor the competition e) Develop contingency plans for all contingency events

d) Monitor the competition

You just received news that a new product you put on supermarket shelves six week ago is a miserable failure because your competitor came out with a better product that is more convenient to use) You did not foresee this turn of events, and now you must develop a plan to take care of the situation. What kind of plan are you about to develop? a) Contingency b) Standing c) Action d) Reaction e) Functional

d) Reaction

Dorothy Thompson heads the research and development laboratory at a small chemical company. Because she is not a chemist, she feels uneasy setting goals for the research chemists, so she asks them to set their own goals. Thompson's area suffers from which of the following barriers to goal setting and planning? a) Inappropriate goals b) Improper reward system c) Dynamic and complex environment d) Reluctance to establish goals e) Reluctance to change

d) Reluctance to establish goals

While Tupperware wanted to increase its sales, its consultants were reluctant to support any change that could reduce their commissions. This is an example of which of the following barriers to goal setting and planning? a) Overemphasis on quantitative goals b) Rewarding people for counterproductive goals c) Overemphasis on qualitative goals d) Resistance to change e) Reluctance to establish goals

d) Resistance to change

The mission statement should include all EXCEPT which of the following? a) Directions b) Premises c) Values d) Tactics e) Purpose

d) Tactics

Which of the following circumstances would most likely result in the use of a planning task force to help develop plans? a) It is desired that line managers be excluded from the planning process. b) The situation involves normal planning activities. c) The organization uses a centralized decision-making process. d) There is a special circumstance to be addressed. e) Management has decided to give the professional planning staff more authority.

d) There is a special circumstance to be addressed.

The most likely reason for the failure of formal goal setting is... a) a too-wide span of management. b) a dynamic external environment. c) an ineffective reward system. d) a lack of top management support. e) resource shortages.

d) a lack of top management support.

When a new diversity initiative was implemented by the human resources department, many managers were confused about the goals, so they continued with the original system. This is an example of... a) inappropriate goals. b) the use of an improper reward system. c) a dynamic and complex environment. d) a reluctance to establish goals. e) constraints.

d) a reluctance to establish goals.

The responsibility for establishing corporate mission and strategy lies with the... a) planning task force. b) executive committee. c) chief executive officer. d) board of directors. e) stockholders.

d) board of directors.

Managers may have to make a(n) ____ plan in anticipation of changes in technology, the economy, the competition, and the labor market. a) strategic b) tactical c) long-range d) contingency e) integrated

d) contingency

Rhode Island's governor told 81% of the state employees to stay home for twelve days without pay in order to save the state millions of dollars. Unemployment in the state had risen to 12.7%, which caused a budget deficit. This is an example of a(n) ____ plan. a) strategic b) tactical c) long-range d) contingency e) integrated

d) contingency

The ____ of Applebee's is to "weekly repeat guests through providing surprisingly friendly hospitality, superior quality food, and world class service and value." a) operational goal b) tactical plan c) strategic plan d) mission statement e) operational plan

d) mission statement

The ____ of West Point is "to educate, train, and inspire the Corps of Cadets so that each graduate is a commissioned leader of character committed to the values of Duty, Honor, Country and prepared for a career of professional excellence and service to the Nation as an officer in the United States Army." a) operational goal b) tactical plan c) strategic plan d) mission statement e) strategic goal

d) mission statement

A New York Times journalist was taken hostage by the Taliban. Special Forces created a(n) ____ plan and rescued the journalist. a) organizational b) standing c) action d) reaction e) functional

d) reaction

Engelhard has just learned of a hostile takeover attempt from BASF. Engelhard needs to develop a(n) ____ plan to thwart this attempted acquisition. a) contingency b) standing c) action d) reaction e) functional

d) reaction

Plans that have an intermediate time horizon and are concerned with getting things done are called ____ plans. a) strategic b) standing c) contingency d) tactical e) operational

d) tactical

Goals are set by... a) department, level, and time. b) distance, area, and group. c) time, region, and level. d) time frame, area, and level. e) department, team, and group.

d) time frame, area, and level.

Goals can... a) provide guidance and direction. b) improve planning. c) motivate employees. d) provide measure and control. e) All of these choices

e) All of these choices

Which of the following is a technique for overcoming barriers to goal setting and planning? a) An understanding of the purpose of goals and planning b) Communication and participation c) Goal and plan consistency, revision, and updating d) An effective reward system e) All of these choices

e) All of these choices

Which of the following is an example of a standing plan? a) The "Do Not Litter" sign in the city park b) The middle school plan for dealing with a student with a learning disability c) The Dairy Queen restaurant's plan for how to make a banana split d) The way students are selected for college admission e) All of these choices

e) All of these choices

European wine producers from regions such as Chablis, Chianti, and Bordeaux set a goal of increasing sales. They ran into ____. Their wine name was already registered in some countries. a) overemphasis on quantitative goals b) rewarding people for counterproductive goals c) overemphasis on qualitative goals d) resistance to change e) Constraints

e) Constraints

In what order should the following be developed? a) Mission, operational, strategic, and tactical b) Strategic, tactical, mission, and operational c) Mission, tactical, strategic, and operational d) Tactical, strategic, mission, and operational e) Mission, strategic, tactical, and operational

e) Mission, strategic, tactical, and operational

A ____ was developed when Chicago made a bid for the 2016 Summer Olympics. a) Project b) Policy c) standard operating procedure d) Rule e) Program

e) Program

Which of the following is an example of an intermediate-range plan? a) Develop an alcohol-powered small engine in the next ten years b) FDA claims that nutrition labels on juice bottle are misleading c) Conduct a Fourth of July sale d) Sponsor a community wellness day next month e) Reduce employee absenteeism by 20 percent within the next two years

e) Reduce employee absenteeism by 20 percent within the next two years

____ plans are the broad plans developed by top managers and the board of directors to guide the general direction of the organization. a) Tactical b) Contingency c) Operational d) Single-use e) Strategic

e) Strategic

Tactical plans... a) require a planning staff for development. b) are used to react to unforeseen circumstances. c) are normally developed by the board of directors. d) cover many years. e) are an organized sequence of steps designed to execute strategic plans.

e) are an organized sequence of steps designed to execute strategic plans.

When we identify strategic, tactical, and operational goals, we are classifying them by... a) area. b) specificity. c) time frame. d) purpose. e) level.

e) level.

When Starbucks expands internationally it considers market size, local standard of living, business environment, income level and U.S. sentiment. This is considered in the ____ plan. a) short-term strategic b) intermediate-term strategic c) long-term tactical d) intermediate-term tactical e) long-term strategic

e) long-term strategic

Comcast launched TV One (a station geared to African Americans who are 24 to 54 years old). It does not offer much hip hop. The program selection is part of Comcast's ____ plan. a) strategic b) standing c) contingency d) tactical e) operational

e) operational

Google has an algorithm that auctions advertising to the highest bidder. The algorithm is part of the ____ plan for collecting ad revenue. a) strategic b) standing c) contingency d) tactical e) operational

e) operational

The tactical plan was to increase sales of King bread mixes through the use of sales promotions. The ____ plan done by a marketing manager low in the management hierarchy included the development of a 50-cents-off coupon to go on the outside of each bread mix box. a) strategic b) standing c) contingency d) single-use e) operational

e) operational

An objective is a(n) ____. a) tactical plan b) strategic goal c) operational plan d) strategic plan e) operational goal

e) operational goal

A single-use plan for a large set of activities is called a... a) project. b) policy. c) standard operating procedure. d) rule. e) program.

e) program.

A(n) ____ for Quaker Oats Company could be to improve returns for its shareholders by 2 percent annually. a) tactical plan b) mission statement c) operational goal d) operational plan e) strategic goal

e) strategic goal

Starbucks middle managers responsible for joint venture agreements with bookstores, hotels and airports, work from a(n) ____ plan. a) operational b) standing c) single-use d) contingency e) tactical

e) tactical