Chp. 7 Management
t
22. Strategic goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole. a. True b. False
t
23. Management by objectives, single-use plans, and standing plans are all management planning approaches.
t
24. Goals are most effective when they are specific and measurable, challenging but realistic, and linked to rewards.
f
25. Goals must be set for every aspect of employee behavior or organizational performance to be effective.
f
33. Rules are broad in scope, whereas policies are narrow in scope.
t
38. If Renae, manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she would need to look at factors such as the cost of new equipment, the economy, and the company workers' compensation cases.
f
39. In a complex and competitive business world, traditional planning done by a select few is the only planning that works.
f
34. A policy defines a precise series of steps to attain certain goals.
f
47. A crisis prevention plan is a detailed written plan that specifies the steps to be taken, and by whom, if a crisis occurs.
c. tactical
57. Which of the following types of plans helps managers implement the overall strategic plan? a. Operational b. Contingency c. Tactical d. Crisis e. Corporate-level
d. top managers
60. __________ are typically responsible for establishing strategic goals and plans. a. Middle managers b. The board of directors c. Consultants d. Top managers e. Individual departments and employees
true
7. The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical level and the operational level. a. True b. False
c. strategic plans.
74. A long-term time frame is most closely associated with: a. operational plans. b. tactical plans. c. strategic plans. d. mission plans. e. tactical goals
d. planning
54. Which of the strategic management functions is considered the most fundamental? a. Organizing b. Analyzing c. Controlling d. Planning e. Leading
a. A goal; a plan
52. __________ specifies future ends, and __________ specifies today's means. a. A goal; a plan b. A plan; a goal c. Planning; organizing d. An idea; a behavior e. A mission; a vision
b. plan
53. A(n) __________ is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions. a. goal b. plan c. mission d. vision e. objective
false
8. Defining operational goals and plans occurs in the execution phase of the organizational planning process. a. True b. False
c. mission.
80. The organization's reason for existence is known as the organization's: a. value. b. vision. c. mission. d. goal. e. service.
b. source of motivation and commitment.
81. Roxanne is a manager at Geronimo Gaming. She recently attended a seminar on goal setting. She wishes to use goals to provide a sense of direction to her staff. She is using goals as a: a. way to legitimize her department. b. source of motivation and commitment. c. standard of performance. d. way to allow for creativity. e. way to impress others.
t
42. Prevention and preparation are the two stages of crisis management.
f
43. ABC Corporation should create a crisis management team that is not cross-functional, but does work together well under pressure
f
44. Since crises vary, a separate, carefully thought-out, and coordinated plan should be developed for each and every possible disaster that could occur.
f
45. Trend management involves looking at current trends and visualizing future possibilities.
f
46. In centralized planning, managers at all levels work with planning experts to develop their own goals and plans.
t
48. Stretch goals are typically so far beyond the current levels that people must be innovative to find ways to reach them.
f
49. Sales in relation to targets is an example of a balanced scorecard metric.
true
5. Planning cannot tame a turbulent environment. a. True b. False
f
50. The most successful firms are those that react to short-term changes in the environment rather than take a flexible approach to goals and resource allocation.
false
10. Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve for the organization to reach its overall goals. a. True b. False
b. to develop new goals for the next year based on the review of last year's performance.
100. Frostburg Fireplaces has used management by objectives (MBO) for the past year. Top managers just finished evaluating overall performance. The next step in the MBO process should be: a. to develop new action plans. b. to develop new goals for the next year based on the review of last year's performance. c. to begin a new MBO "cycle," using the same goals as last year. d. to wait several months to allow information to be digested. e. none of these.
true
11. Tactical plans are designed to help execute the major strategic plans and to accomplish a specific part of the company's strategy. a. True b. False
false
12. A broad definition of the organization's values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization from similar types, refers to a business plan. a. True b. False
true
13. Strategic goals pertain to the organization as a whole rather than to specific divisions or departments. a. True b. False
false
14. Tactical goals are specific, measurable results that are expected from departments, work groups, and individuals within the organization. a. True b. False
false
15. Normally, it is the top manager's job to make the broad strategic plan and identify specific tactical plans. a. True b. False
F
18. Providing innovative solutions to customer needs is a goal that would be placed in the internal business process category on a strategy map.
t
19. A strategy map is a visual representation of the key drivers of an organization's success and shows how specific goals and plans in each area are linked.
true
2. A desired future circumstance or condition that the organization attempts to realize is a goal. a. True b. False
t
20. An organization's mission describes its reason for existence.
t
21. Building good relationships with suppliers and partners would be considered an internal business process goal.
t
26. In order for goals to be effective, they should be challenging but realistic.
f
27. Step 1 in management by objectives is to review progress.
t
28. An action plan defines the course of action needed to achieve the stated goals.
t
29. Most managers believe that they are better oriented toward goal achievement when management by objectives is
false
3. Goals specify today's means; plans specify future ends. a. True b. False
f
30. In step 1 of management by objectives, overall performance is appraised.
t
31. A key benefit of management by objectives is that it aligns individual and departmental goals with company goals.
f
32. Standing plans define company responses to specific situations such as emergencies, setbacks, or unexpected conditions.
t
35. Three approaches that help managers deal with a turbulent environment are contingency planning, scenario building, and crisis planning.
f
36. One of the biggest benefits of planning is that, in a turbulent environment, plans create greater organizational flexibility.
t
37. Goals and plans provide a standard of assessment.
true
4. Planning is the act of determining the organization's goals and defining the means for achieving them. a. True b. False
f
40. Crisis plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions.
t
41. Scenario building is an extension of contingency planning.
C. goal
51. A(n) __________ refers to a desired future circumstance or condition that the organization attempts to realize. a. plan b. vision statement c. goal d. mission statement e. idea
true
16. Operational planning specifies plans for department managers, supervisors, and individual employees. a. True b. False
d. Operational goals are able to displace strategic goals.
102. Which of the following is not one of the benefits of management by objectives? a. Performance can be improved at all company levels. b. Employees are motivated. c. Manage and employee efforts are focused on activities that will lead to goal attainment. d. Operational goals are able to displace strategic goals. e. Individual and department goals are aligned with company goals.
true
17. Goals are stated in quantitative terms. a. True b. False
false
6. Operational plans and goals are the responsibility of middle managers. a. True b. False
c. Reviewing progress
98. High Fence Corporation is currently implementing a management by objectives (MBO) program. Managers and employees jointly set goals and develop action plans, and goal achievement is evaluated on an annual basis. High Fence is missing which major activity that must occur in order for MBO to be successful? a. Developing a mission statement b. Developing tactical goals c. Reviewing progress d. Reviewing operational plans e. None of these
c. the supervisor and employee jointly.
99. In using management by objectives, goals should be set by: a. the supervisor. b. the employee. c. the supervisor and employee jointly. d. the accounting department. e. top managers.
73. The official goals of the organization are best represented by: a. strategic goals. b. tactical goals. c. operational goals. d. competitive goals. e. none of these.
a. strategic goals.
a. Appraise overall performance
101. __________ is the final step in the management by objectives process. a. Appraise overall performance b. Develop action plans c. Review progress d. Set goals e. Conduct periodic checkups
a. Single-use plans are developed to achieve a set of goals that are not likely to be repeated in the future.
103. Which of the following statements about single-use plans is true? a. Single-use plans are developed to achieve a set of goals that are not likely to be repeated in the future. b. Single-use plans are used to provide guidance for tasks or situations that occur repeatedly within the organization. c. Single-use plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. d. Single-use plans are more important than standing plans in organizations. e. The primary single-use plans are organizational policies, rules, and procedures.
b. Standing plans are ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization.
104. Which of the following statements about standing plans is true? a. Standing plans are developed to achieve a set of goals that are not likely to be repeated in the future. b. Standing plans are ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization. c. Standing plans define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. d. Standing plans are more important than single-use plans in organizations. e. Standing plans typically include both programs and projects
d. single-use plan.
105. A project is an example of a: a. policy. b. standing plan. c. procedure. d. single-use plan. e. rule
b. standing plan.
106. Cheyenne Creamery requires that all absent employees bring a note from their doctor when returning to work. This is an example of a: a. single-plan use. b. standing plan. c. program. d. procedure. e. project.
b. Policies
107. __________ define boundaries within which to make decisions. a. Programs b. Policies c. Rules d. Procedures e. Projects
c. policy
108. An example of a __________ is a statement supporting the organization's efforts in the area of sexual harassment. a. procedure b. rule c. policy d. single-use plan e. program
b. rule.
109. "No food and/or drinks in the classroom" is an example of a: a. procedure. b. rule. c. policy. d. single-use plan. e. project.
e. Goals and plans can create a false sense of security.
110. Which of the following is a commonly-cited limitation of planning? a. Goals and plans limit employee motivation and commitment. b. Goals and plans make resource allocation more difficult. c. Goals and plans make it more difficult to measure standards of performance. d. Goals and plans boost intuition and creativity. e. Goals and plans can create a false sense of security.
b. Goals and plans may cause rigidity in a turbulent environment.
111. Which of the following is a major limitation of goals and plans? a. Goals and plans guide resource allocation. b. Goals and plans may cause rigidity in a turbulent environment. c. Goals and plans decrease employee motivation. d. Goals and plans decrease employee commitment. e. None of these
c. contingency planning.
112. Scenario building is an extension of: a. management by objectives. b. crisis planning. c. contingency planning. d. operational planning. e. flexible goal setting
c. contingency planning
113. During __________, managers identify important factors in the environment and then forecast a range of alternative responses to the most likely high-impact contingencies, focusing on the worst case. a. crisis planning b. scenario building c. contingency planning d. strategy mapping e. management by means
a. Scenario building
114. __________ involves looking at trends and discontinuities and imagining possible alternative future to build a framework within which unexpected future events can be managed. a. Scenario building b. Crisis planning c. Contingency planning d. Trend management e. Caution planning
a. contingency planning.
115. Jerrica, a finance manager at LRV Industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of planning is known as: a. contingency planning. b. financial planning. c. crisis planning. d. consumer protection. e. environmental planning.
d. crisis
116. Many firms engage in __________ planning to prepare the organization, its managers, and its employees to cope with sudden catastrophic events that could destroy the firm if a crisis-response plan were not in place. a. incident b. contingency c. strategic d. crisis e. emergency
c. prevention; preparation
117. The two stages of crisis planning include __________ and __________. a. prevention; control b. planning; leading c. prevention; preparation d. preparation; control e. leading; organizing
e. detailed, written
118. The crisis management plan should be a __________ plan that specifies the steps to be taken, and by whom, if a crisis occurs. a. vague, verbal b. detailed, verbal c. long, difficult-to-read d. vague, written e. detailed, written
c. Investigating all stakeholders
119. Which of the following is not involved in the stages of crisis planning? a. Setting up an effective communication system b. Creating a detailed crisis management plan c. Investigating all stakeholders d. Designating a crisis management team and spokesperson e. Detecting signals from the environment
b. planning experts work directly with line managers and frontline employees to develop dynamic plans that meet fast-changing needs.
120. A benefit to decentralized planning is that: a. planning is done by top managers who have expertise in the strategic vision of the company. b. planning experts work directly with line managers and frontline employees to develop dynamic plans that meet fast-changing needs. c. planning is completed by planning experts who can develop robust plans that address sensitive company issues. d. top managers develop creative solutions that are implemented at all levels of the organization. e. it relies on the expertise of department managers who communicate their solutions upward to top management.
b. Building relationships
121. Which of the following activities is part of the crisis prevention stage of crisis planning? a. Setting up an effective communications system b. Building relationships c. Designating a crisis management team and spokesperson d. Creating a detailed crisis management plan e. All of these
d. Designate a crisis management team in the event of an environmental disaster
122. Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis? a. Build relationships with neighboring businesses b. Detect signals from the natural environment c. Poll employees on the likelihood of an environmental disaster d. Designate a crisis management team in the event of an environmental disaster e. Dismantle the company's ties to the external media
b. Decentralized planning
123. Alabama Airlines has three planning experts who help division managers develop their own division goals and plans. Serving as consultants to the divisions, the planning experts give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function? a. Centralized planning b. Decentralized planning c. Planning task force d. Performance dashboards e. None of these
b. Stretch
124. __________ goals are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. a. Operational b. Stretch c. Strategic d. Tactical e. Bottom-up
c. performance dashboards.
125. Sam is in charge of strategy control at Lanser's, a large clothing retailer. He regularly tracks sales in relation to targets, number of products on back order, and percentage of customer service calls resolved within specified time periods. These metrics are known as: a. financial indicators. b. tactical goals. c. performance dashboards. d. balanced scoreboards. e. operational standards.
e. take a flexible approach to planning and goal setting.
126. The more effective companies in a fast-shifting environment are those in which managers: a. take a top-down approach to planning and goal setting. b. use centralized planning. c. implement static plans. d. react to short-term changes in the environment. e. take a flexible approach to planning and goal setting.
a. Schedules
127. Which of the following is an important component of operational planning? a. Schedules b. Appraisals c. Creativity d. Benchmarks e. Policies
c. developing action plans.
128. In the MBO process, after the first step of setting goals is accomplished, the next step that Katelynn should expect is: a. reviewing progress toward company goals. b. appraising overall performance. c. developing action plans. d. defining the mission. e. none of these.
c. Appraising overall performance
129. What can Katelynn expect to be doing during the final step of the MBO process? a. Setting goals b. Reviewing progress c. Appraising overall performance d. Defining the mission e. Developing action plans
e. all of these.
130. Katelynn can anticipate enjoying the advantages of MBO, which include: a. focused manager and employee efforts on activities that will lead to goal attainment. b. improved performance at all company levels. c. improved employee motivation. d. alignment of individual and departmental goals with company goals. e. all of these.
true
1. Good managers understand that plans should grow and change to meet shifting conditions. a. True b. False
a. a formal mission that defines the basic purpose of the organization.
55. The planning process starts with: a. a formal mission that defines the basic purpose of the organization. b. tactical planning. c. strategic planning. d. operational planning. e. controlling performance
c. Planning
56. __________ is the act of determining the organization's goals and defining the means for achieving them. a. Brainstorming b. Organizing c. Planning d. Developing a mission e. Controlling
b. prevents managers from thinking merely in terms of day-to-day activities.
58. The overall planning process: a. begins with the development of operational goals. b. prevents managers from thinking merely in terms of day-to-day activities. c. begins with defining tactical plans and objectives. d. is the responsibility of top managers only. e. none of these.
d. mission; tactical level; operational level
59. A(n) __________ is the basis for the strategic level of goals and plans, which in turn shapes the __________ and the __________. a. goal; mission; tactical level b. objective; operational level; mission c. operational goal; mission; tactical level d. mission; tactical level; operational level e. tactical plan; operational level; mission
e. supervisors
61. __________ are primarily responsible for operational goals and plans. a. Middle managers b. The board of directors c. Consultants d. Top managers e. Supervisors
a. Fred, who is a division manager
62. Which of the following employees of Good Times Corporation would be primarily concerned with developing tactical goals and plans? a. Fred, who is a division manager b. Jeannie, who is on the board of directors c. James, who is a consultant d. Brad, who is the CEO e. Tony, who is a frontline manager
e. Plan marketing tactics
63. Which of the following is not a step in the organizational planning process? a. Monitor and learn b. Plan operations c. Translate the plan d. Develop the plan e. Plan marketing tactics
a. Operational goals
64. Sherry is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of goals? a. Operational goals b. Tactical plans c. Strategic goals d. Mission statement e. None of these
b. Operations map
65. Which of the following is not a performance management tool for executing a plan? a. Management by objectives b. Operations map c. Performance dashboards d. Single-use plans e. Decentralized responsibility
d. mission
66. A statement of purpose that distinguishes the organization from others of a similar type is known as a(n) __________ statement. a. goals b. values c. income d. mission e. competitive-edge
d. All of these
67. Which of the following are described by mission statements? a. Corporate values b. Product quality c. Location of facilities d. All of these e. None of these
a. mission statement.
68. "We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's: a. mission statement. b. strategic goals. c. tactical goals. d. strategic plans. e. tactical plans.
c. mission statement.
69. "We seek to become the premier business school in the West" is an example of a statement you are most likely to find in the organization's: a. tactical goals. b. operational goals. c. mission statement. d. tactical plans. e. operational plans.
a. Coalition management
70. __________ involve(s) building an alliance of people who support a manager's goals and can influence other people to accept and work toward them. a. Coalition management b. Management by means c. Management by objectives d. Goal setting e. Operational planning
d. the mission.
71. At the top of the goal hierarchy is: a. strategic goals. b. tactical goals. c. operational goals. d. the mission. e. employee goals.
c. Strategic goals
72. __________ are broad statements describing where the organization wants to be in the future. a. Operational plans b. Tactical goals c. Strategic goals d. Operational goals e. Tactical plans
e. Strategic plans
75. __________ define the action steps by which the company intends to attain strategic goals. a. Tactical goals b. Operational goals c. Tactical plans d. Operational plans e. Strategic plans
d. is a major undertaking that may take several years to complete.
76. A program: a. is smaller in scope and complexity than a project. b. defines a precise series of steps to attain certain goals. c. defines boundaries within which to make decisions. d. is a major undertaking that may take several years to complete. e. is often one part of a larger project.
d. operational plans.
77. Sarah is a middle manager at Style Sneakers Corporation. She is most likely responsible for the achievement of: a. operational goals. b. tactical goals. c. strategic goals. d. operational plans. e. none of these.
d. operational plans.
78. The outcomes that major divisions and departments must achieve for the organization to reach its overall goals are called: a. strategic goals. b. tactical goals. c. operational goals. d. operational plans. e. strategic plans.
e. Monitoring and learning
79. Silver Star Automobiles holds monthly planning and operational reviews to ensure that it is on track for meeting organizational goals. This involves which of the following stages of the organizational planning process? a. Developing the plan b. Translating the plan c. Plan operations d. Performance management e. Monitoring and learning
a. Operational goals
82. Which of the following refer to specific, measurable results expected from departments, work groups, and individuals? a. Operational goals b. Tactical goals c. Strategic goals d. Operational plans e. Mission statements
c. Operational plans
83. Which of the following are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans? a. Tactical goals b. Strategic plans c. Operational plans d. Strategic goals e. Organizational plans
d. operational plan
84. The __________ is the department manager's tool for daily and weekly operations. a. conventional goal b. strategic goal c. strategic plan d. operational plan e. tactical plan
c. Strategy map
85. Which of the following is a visual representation of the key drivers of an organization's success, showing the causeand-effect relationships among goals and plans? a. Operational plan b. Gantt chart c. Strategy map d. SWOT analysis e. Strategic plan
b. operational
86. Managers use __________ goals to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively. a. strategic b. operational c. learning and growth d. financial performance e. internal business process
e. External business process
87. Which of the following is not a type of goal that a manager would identify on a strategy map? a. Financial performance b. Customer service c. Internal business process d. Learning and growth e. External business process
b. Learning and growth
88. In developing a strategy map for her interior design business, Carla has decided to promote employee development by providing online training tools. This involves goals in which strategy map category? a. Financial performance b. Learning and growth c. Internal business process d. Customer service e. Supply chain
b. is challenging but not realistic.
89. Kate is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the current quarter. She is unhappy because she knows that the most any salesperson has sold in one quarter in the past is $150,000. Kate's goal: a. is not specific and measurable. b. is challenging but not realistic. c. is irrelevant. d. lacks a defined time period. e. does not cover key result areas.
false
9. Tactical goals and plans are the responsibility of frontline managers and supervisors. a. True b. False
d. Cover key result areas
90. You are violating which of the following characteristics of effective goals when you attempt to create goals for every aspect of employee behavior? a. Specific and measurable b. Linked to rewards c. Defined time period d. Cover key result areas e. Challenging but realistic
c. Cover key result areas
91. Darren set goals for each of his employees. Each employee ended up with at least 25 goals. This process violates which of the following criteria for effective goals? a. Specific and measurable b. Challenging but realistic c. Cover key result areas d. Defined time period e. Linked to rewards
a. Specific and measurable
92. George's manager has given him the following goal: "Profits should be increased in the coming year in order for employees to receive a monetary bonus." Which characteristic of effective goals is missing? a. Specific and measurable b. Challenging but realistic c. Cover key result areas d. Defined time period e. Linked to rewards
b. Goals should be set for every aspect of employee behavior.
93. Which of the following is not a characteristic of effective goals? a. Goals should be challenging but not unreasonably difficult. b. Goals should be set for every aspect of employee behavior. c. Goals should be specific and measurable. d. Goals should be designed so that they can be translated into measurement of key results areas. e. Goals should be linked to rewards.
d. all of these
94. The ultimate impact of goals depends on the extent to which __________ is/are based on goal achievement. a. rewards b. salary increases c. promotions d. all of these e. none of these
d. Management by objectives
95. Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of what management method? a. Tactical planning b. Contingency planning c. Single-use planning d. Management by objectives e. Management by walking around
a. Setting goals
96. __________ is the first step in the management by objectives process. a. Setting goals b. Developing action plans c. Appraising overall performance d. Reviewing progress e. None of these
b. Management by objectives
97. Which of the following is a system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance? a. Organizational planning b. Management by objectives c. Goal setting d. Performance dashboards e. Scenario building
