Principles of Management - Chapter 5

You can become more proactive by focusing on problems rather than solutions. True or False

False Explanation You can be more proactive by following four key recommendations, including focusing on solutions rather than problems.

Mitski supervises the returns desk in a department store. Mitski has set a goal for the rest of the year of finishing her daily office work quicker so she can assist at the returns desk earlier in the morning. She knows this will improve customer service and also help decrease theft which will assist the company in achieving its goal of decreasing costs. Finishing her office work quicker represents a(n) ________ for Mitski. strategic plan means-end chain operational goal tactical plan

operational goal Explanation Operational goals generally span 12 months and are connected to strategic goals in a hierarchy known as a means-end chain.

________ refer(s) to the arrangement that ensures strategic goals align downward with more specific short-term goals. Operational planning Objective efficacy Tactical goals Cascading goals

Cascading goals Explanation Cascading goals is the process of ensuring that the strategic goals set at the top level align, or "cascade," downward with more specific short-term goals at lower levels within an organization, including employees' objectives and activities.

The manager of a retail pharmacy stated that "the pharmacy will increase its profit margins." This is an example of a SMART goal. True or False

False Explanation A SMART goal is one that is specific, measurable, attainable, results-oriented, and has target dates.

A business plan is a tool used by the federal government to determine how to strengthen the business sector through macroeconomics and microeconomics. True or False

False Explanation A business plan is a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success.

________ designates how work units are going to optimize resources and make contributions over the next two years. Strategic planning Operational planning Tactical planning Management by objectives

Tactical planning Explanation Tactical planning is done by middle managers to determine what contributions their departments or similar work units can make with their given resources during the next 6 to 24 months.

All 78 locations of Moviely Cinemas has a poster in the lobby that reads, "We want to become the epicenter for family entertainment that highlights creative talents and inspires the next generation of film legends." This is the vision statement for Moviely. True or False

True Explanation A vision statement expresses what the organization should become and where it wants to go strategically.

In order to motivate employees, performance that meets objectives should be rewarded. True or False

True Explanation Because the purpose of MBO is to motivate employees, performance that meets the objectives should be rewarded—with compliments, raises, bonuses, promotions, or other suitable benefits.

Once her team's goals were set, Alyssa asked each team member to come up with a(n) ________ to reach the goals. means-end chain business plan operating plan action plan

action plan Explanation An action plan defines the course of action needed to achieve a stated goal.

Strategic planning is critical, but without ________ it will be worthless. stewardship implementation positioning benchmarking

implementation Explanation Unless plans are effectively executed, they won't be worth more than the paper they are written on. "Strategy equals execution. All the great ideas and visions in the world are worthless if they can't be implemented rapidly and efficiently," said Colin Powell, former U.S. Secretary of State and Chairman of the Joint Chiefs of Staff.

The key reasons that an organization should adopt planning and strategic management are to - develop a competitive advantage, decrease costs, and increase synergy. - provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage. - develop MBO, encourage new ideas, and increase profits. - provide direction and momentum, increase organizational diversity, and decrease costs.

provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage. Explanation An organization should adopt planning and strategic management for three reasons: They can (1) provide direction and momentum, (2) encourage new ideas, and above all (3) develop a sustainable competitive advantage.

The planning/control cycle is an order planning system in which employees work with customers to plan orders and discuss delivery times. True or False

False Explanation In the planning/control cycle, managers benefit from a continuous feedback loop that ensures plans are headed in the right direction (see Figure 5.5).

Fine Cuts has been manufacturing excellent cutlery for over 50 years. Management wants to hang a banner in the production facility with their mission statement. Which of the following statements would be on that banner? "Over the next 10 years, we will be the top seller of cutlery worldwide and be known for our customer service." "We hope to be the best, by being the best." "We want to be the number one knife seller that all customers turn to when they think of buying a knife." "We will always provide the highest-quality cutlery at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders."

"We will always provide the highest-quality cutlery at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders." Explanation A mission statement expresses the purpose of the organization. The mission statement identifies the goods or services the organization provides and will provide. Sometimes it also gives the reasons for providing them.

In advance of opening his new gym, Ethan is writing an explanation of the reason for his business. Ethan is writing his mission statement. True or False

True Explanation An organization's reason for being is expressed in a mission statement.

A ________ expresses what the organization should become and where it wants to go strategically. vision statement values statement strategic plan mission statement

vision statement Explanation A vision statement expresses what the organization should become, where it wants to go strategically.