Module 3 Study Set

Volkswagen's values statement is "responsibility and sustainability," yet VW used a software "cheat" to sell diesel cars that violate pollution standards. If the former CEO, Martin Winterkorn, had followed his values, he might have saved the company from...

huge fines and a damaged reputation

Boeing is rolling out a new marketing campaign. The new campaign will start in time for the airlines' annual planning process, in the second half of the year. Boeing's marketing plans are

short term

Boeing's engineering manager is developing a budget for the coming year. His team must produce lighter, more efficient designs for an aircraft engine. Most of his team members are experienced, but he must replace one junior engineer to help the team. His plans are...

short term

The advantage of ________ plan is that it can be very specific in how it addresses the needs of a particular situation.

single-use

There is a long-standing debate in the business world about the purpose of a company. Milton Friedman, a famous economist, argued that the only responsibility of company is to increase profits within the rules. But this leads to excesses like dumping pollutants that damage the community. One way to temper the profit goal is an explicit statement of...

corporate values

Companies need consistency in their HR practices to avoid charges of discrimination. Senior management usually approves broad guidelines for HR activities, like hiring and firing, performance appraisals, promotions, and discipline. These are...

policies

Many companies forbid smoking at work. This is an example of a...

regulation

People are not motivated when they do not have clear goals and do not know what is expected of them. ________ reduces uncertainty and indicates what everyone is expected to accomplish.

Planning

Resources are always scarce in organizations, and managers need to make sure the resources they have are used effectively. ________ helps managers determine where resources are most needed so they can be allocated where they will provide the most benefit.

Planning

What does "death by planning" mean?

Planning can decay or prevent action.

Which of the following is one of the drawbacks of planning?

Planning leads to complacency.

________ look at each budget as if it were brand new and require managers to justify each of the budgeted items. This process ensures that budgets are closely tied to the latest organizational goals.

Zero-based budgets

The Deepwater oil spill in the Gulf of Mexico in 2010 was made much worse because BP Oil did not have plans in place for surprises. Planning for unexpected events is called...

contingency planning

When people are involved in developing plans, they become more ________ .

committed to the plans

Dr. Kelly has experience and knows there is only one way to run her business—full steam ahead! Dr. Kelly will struggle with the planning cycle that recommends...

considering alternatives

Planning activities provide an opportunity for input from the departments and people affected. Some organizations establish planning committees that intentionally include people from ________ backgrounds to bring ________ perspectives into the planning process.

diverse, new

The planning cycle is represented with six steps in our text, but in practice, it has...

innumerable steps, with many "steps" repeated and reviewed as events unfold, just as a driver checks the map or her GPS frequently

Management by objectives is Peter Drucker's version of goal setting. His concept was to engage the employee's intrinsic motivation. A manager should discuss the corporate goals with his employees and then...

jointly agree on goals, so that the employee commits to the goals

A budget is both a projection and a control. A manager may need to go over budget to meet sales goals or spend less than budgeted. A manager should communicate any changes to his manager, but in some organizations, the best budget is the one that...

most closely projects actual expenses and revenue

The leadership of Exxon, an energy company, thinks the demand for oil, gas, and coal will continue to increase for the foreseeable future. Usually they try to examine fossil fuel trends that may occur for the next 20-30 years. Lately they've been examining various alternatives due to changes in consumer preferences and possible government legislation that may favor alternative fuels, so they are investing in small biofuels projects. This is called...

scenario planning

When it comes to negative public relations, it's pretty tough to top the sight of a United Airlines passenger being dragged, bloodied and screaming, from a flight. United Airlines management failed to plan for a situation where a passenger refused to get off the plane, and employees made an ad hoc decision to use force. Afterwards, United changed its policies so that employees could follow a better solution in the ________ plans.

standing

Johnson & Johnson manufactures medical devices, pharmaceuticals, and consumer health goods. Their code of ethics explicitly puts customers—doctors and patients—ahead of stockholders and profits. The code of ethics guides employees in their decisions to reflect the company's...

values

Google's motto is "Don't be evil." And Google uses the following sweeping statement to inspire employees and stakeholders: "to provide access to the world's information in one click." This is Google's...

vision