CH 6 Questions

Which of the following is a similarity between rules and regulations and standard operating procedures (SOPs)? a. Both are relatively narrow in scope. b. Both focus on a large set of activities. c. Both specify responses to nonrecurring situations. d. Both are single-use plans.

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.

_____ is the catalyst that drives the planning process. a. Goal setting b. Decision making c. Process planning d. Policy making

Decision making

_____ usually cover periods from one to five years and are especially important for middle and first-line managers. a. Contingency plans b. Short-range plans c. Long-range plans d. Intermediate plans

Intermediate plans

Which of the following is true of a standard operating procedure? a. It outlines the steps to be followed in particular circumstances. b. It is a single-use plan for a large set of activities. c. It specifies an organization's general response to a designated problem. d. It is developed to carry out a course of action that is not likely to be repeated.

It outlines the steps to be followed in particular circumstances. -It typically describes a sequence of activities.

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? a. Managers should meet with their subordinates on a one-to-one basis to arrive at a set of goals and plans for each subordinate. b. The goals should be refined to be as verifiable as possible and a time frame should be specified for their accomplishment. c. Managers should tell their subordinates what organizational and unit goals and plans top management has established. d. The plans developed to achieve the goals need to be as clearly stated as possible and directly related to each goal.

Managers should tell their subordinates what organizational and unit goals and plans top management has established.

Which of the following is a common pitfall of formal goal setting? a. Employee demotivation b. Decreased communication c. Decreased control d. Poor implementation

Poor implementation

_____ goals are goals set by and for an organization's top management. a. Strategic b. Operational c. Short-range d. Tactical

Strategic goals -They focus on broad, general issues.

Which of the following is a guideline for tactical plans? a. They must be based on operational goals. b. They must specify resources and time frames. c. They must be independent of the strategic plan. d. They must be independent of the long-term goal.

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? a. They allow other aspects of planning to progress independently. b. They provide an effective mechanism for evaluation and control. c. They help everyone work toward different objectives. d. They discourage hierarchical segregation in organizations.

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.

_____ is essentially the first step in planning. a. Understanding the environment b. Developing marketing strategies c. Distributing authority among jobs d. Evaluating employee satisfaction

Understanding the environment - If managers do not understand this context, they will be unable to develop effective plans.

Management by objectives (MBO) refers to: a. a process of management that focuses on optimization. b. a formal process by which the success of a plan is evaluated. c. a process of management involved in overcoming crisis situations. d. a formal goal-setting process involving collaboration between managers and subordinates.

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.

Unlike a reaction plan, an action plan is: a. is a plan developed to answer an unforeseen circumstance. b. a long-range plan which has a time frame of five years or more. c. a plan that operationalizes any other kind of plan in an organization. d. is a general plan outlining decisions of resource allocation.

a plan that operationalizes any other kind of plan in an organization.

A program is: a. a single-use plan of minimal scope and complexity. b. a standing plan outlining steps to be followed in particular circumstances. c. a single-use plan for a large set of activities. d. a standing plan developed for activities that recur regularly.

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.

Decision making is the process of: a. monitoring day-to-day activities and progress of an organization. b. reviewing the finances of an organization. c. adopting one course of action as opposed to others. d. carrying out multiple courses of action as opposed to one.

adopting one course of action as opposed to others.

The _____ establishes the corporate mission and strategy. a. planning task force b. executive committee c. board of directors d. line management

board of directors

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 _____. a. contingency planning b. strategic planning c. tactical planning d. operational planning

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? a. An improper reward system b. Resistance to change c. A dynamic and complex environment d. Reluctance to establish goals

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.

Horizontal consistency of goals means that: a. goals should have a definite timeline. b. goals should be agreed upon by all levels of management. c. strategic, tactical, and operational goals must agree with one another. d. goals should be consistent from one department to the next

goals should be consistent from one department to the next.

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 _____. a. operational goal b. mission c. short-term goal d. vision

mission -The mission outlines the organization's purpose, premises, values, and directions

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. a. synergistic b. strategic c. operational d. contingency

operational -Operational goals are set by and for lower-level managers. Their concern is with shorter-term issues associated with the tactical goals.

Which of the following is an area of focus for tactical plans? a. Environment b. Resources c. People d. Mission

people

A _____ is the most general form of a standing plan that specifies an organization's general response to a designated problem or situation. a. policy b. rule c. regulation d. procedure

policy

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 _____. a. project b. program c. policy d. rule

policy -a policy is the most general form of standing plan that specified an organizations general response to a designated problem or situation

An apparel manufacturer decides to open a new facility in a different city. Which of the following will it most likely employ? a. Procedure b. Policy c. Program d. Project

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.

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? a. Resistance to change b. Inappropriate goal setting c. Improper reward system d. Reluctance to establish goals

resistance to change -The reason for this reluctance may be lack of confidence or fear of failure

_____ are primary inputs for developing tactical goals. a. Tactical plans b. Operational plans c. Strategic goals d. Operational 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 _____. a. reaction plan b. single-use plan c. strategic plan d. operational plan

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 _____. a. operational plans b. strategic plans c. contingency plans d. short-term plans

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. a. operational b. tactical c. contingency d. single-use

tactical

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. a. contingency b. operational c. tactical d. long-term

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. a. operational goals b. long-term goals c. short-term goals d. tactical 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 _____. a. long-range plan b. contingency plan c. single-use plan d. tactical plan

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 _____. a. single-use plan b. long-range plan c. contingency plan d. tactical plan

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

Which of the following is true of strategic goals? a. They are set by and for middle managers. b. They are concerned with short-term issues. c. They are set by lower-level managers. d. They focus on broad, general issues.

they focus on broad, general issues

Which of the following is a function of a planning staff? a. To take a narrower view than individual managers b. To go beyond pet projects and particular departments c. To increase the workload of individual managers d. To select a competent chief executive officer

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.