Principles of Management Final Study

One way to make discussions about salary and benefits less uncomfortable is to

Discuss compensation often and in advance. Managers can eliminate some of the discomfort of discussing compensation by making it a frequent topic of conversation. This helps employees to know what to expect and to feel comfortable checking in regularly to discuss their compensation. Talking to the entire staff at once would likely be more uncomfortable than talking to employees individually. Employees should be given the chance to respond so they are comfortable with the conversation. Finally, compensation should be discussed face-to-face if possible to encourage an open dialogue. SOURCE: HR:390

Which of the following is the first step in developing a work breakdown structure (WBS) for a project:

Divide the workload into independent work packages. A work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. The related activities in each component make up the work package. Work packages help the project manager effectively schedule, assign, and monitor project activities. After dividing the entire workload into independent work packages, the project manager can determine timeframes, monitor the work, and evaluate the quality of the work after the activities have been performed. SOURCE: PJ:006

Which of the following should be included in a job profile:

Experience needed to do the job. A job profile is a description of a particular role. It should include any experience needed to do the job. A job profile should not necessarily specify the hardest parts of the job. Descriptions of coworkers should not be included in a job profile. Finally, the company's mission statement is not necessary for a job profile. SOURCE: HR:518

As a result of conducting a competitive analysis, businesses are often able to determine

In which markets to compete. Not all businesses have the resources or capabilities to compete in all markets. Therefore, businesses should analyze the competitive environment to determine the markets that offer the most potential. Depending on the results of a competitive analysis, a business might decide to focus on a specific target market or to develop a unique product that will appeal to a niche market. The intent is to find the most appropriate markets that will give the business the opportunity to grow and be profitable. A business does not conduct a competitive analysis to determine the number of employees to hire. The government encourages competition rather than attempting to control it. A business conducts an economic analysis to determine the overall health of the economy. SOURCE: MP:012

A SWOT analysis revealed that the Sampson Corporation's extensive training program has led to a low employee turnover rate for the company. This is an example of a(n)

Internal strength. A SWOT analysis is a marketing tool that investigates a business's strengths, weaknesses, threats, and opportunities. An extensive training program is a strength for the Sampson Corporation because recruiting and training new employees is time consuming and expensive. A good training program is an internal activity that sets the tone for employees' success in their jobs. When employees have adequate training, they tend to feel confident about doing their jobs and are less likely to seek new employment. Threats are circumstances that may hinder the business's success (e.g., competitors' activities). A weakness is any limitation or shortcoming that keeps the business from achieving its objectives. An opportunity is a favorable circumstance that presents itself as a way to meet an objective. SOURCE: SM:010

Which of the following is the difference between a job description and a job profile:

A job description has more detail than a job profile. A job description and a job profile both have information and details about a particular position. However, a job description is more detailed, whereas a job profile is more succinct. A job profile is better suited for a job posting because it is more general and concise. Job profiles and job descriptions can both be used internally and externally. Finally, job profiles and job descriptions should be neutral and fact-based rather than positive or negative. SOURCE: HR:518

At Company ABC, managers believe that an onsite gym, monthly office parties, and break rooms that include darts and foosball tables are essential to worker productivity. The managers are using the __________ theory.

Behavioral management. According to the behavioral management theory, if employees are happy, they will perform well and support the business. The management science theory uses math, statistics, and other quantitative techniques to make decisions (e.g., TQM). The administrative management theory focuses on development of an organizational structure that is both highly efficient and effective, including clear lines of authority, set rules and procedures, etc. The scientific management theory focuses on the efficiency of tasks (e.g., time and motion studies). SOURCE: SM:030

Which of the following is an activity performed during the planning phase of a project:

Budget development. During the planning phase of a project, the project manager develops the budget, prepares the work breakdown structure, and allocates resources. During the execution phase, the work activities are implemented in accordance to the project schedule. The project-definition phase involves identifying the project concept and conducting a feasibility analysis. SOURCE: OP:158

A business that offers the best service in the industry usually has a

Competitive advantage. Competitive advantage is the edge achieved by businesses that offer something better than their competitors. If a business offers the best service in the industry, it has an advantage over competitors that do not provide the same level of service. Businesses identify their competitive advantage in order to use it as a way to attract customers. A business that offers the best service in the industry does not necessarily have a diverse culture, a social environment, or a trade perception. SOURCE: PM:246

What is the management activity that involves comparing what was planned with what actually happened?

Control. Control is the management function that involves comparing what was planned with the actual results. Organize is the management function that determines what work needs to be done and who is to do each job. Plan is the management function that includes gathering information, making decisions, and setting goals. Direct is the management function responsible for seeing that workers perform their tasks correctly and on time. SOURCE: SM:004

Which of the following is a benefit of project planning:

Coordinating all of the parts of the project. Benefits of project planning include coordination of all of the parts of the project, direction for making decisions and for keeping yourself on track, a standard for completion, clarification of misunderstandings, and motivation. Asking yourself important questions and setting an appropriate time frame are things you might do while you're planning, but they are not benefits. Monitoring the project is part of project management, not project planning. SOURCE: OP:001

Agile Consulting Co. gives its employees two paid days every quarter to volunteer in the community. This is an example of

Corporate social responsibility. Corporate social responsibility is a company's attempt to contribute positively to social and environmental wellbeing and change. It occurs when companies give parts of their profits or efforts toward positive causes. An example of corporate social responsibility is encouraging employees to volunteer in the community. This policy is not necessarily an example of innovation, ethical workplace behavior, or transparency. SOURCE: SM:082

In which way can a start-up business benefit from writing a business plan?

Define managers' roles. A business plan can help a start-up company whose managers do not have clearly identified roles to establish who is expected to do what. When business owners want to sell an existing business, they write a business plan to help them set a value. An existing business can use a business plan to prepare for an expansion, such as an additional product line, office building, or group of employees. Writing a business plan forces an existing company to analyze the effectiveness of a new product or promotion. SOURCE: SM:007

Businesses often segment their target markets into which of the following three primary areas:

Demographic, psychographic, geographic. These are the three main ways to segment a target market. Demographic segmentation is the division of a market on the basis of its physical and social characteristics. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Geographic segmentation is the division of a market on the basis of where consumers are located. Productive, rational, sociological, promotional, economic, and technological are not ways of segmenting target markets. SOURCE: MP:005

What management function involves motivating and encouraging an employee?

Directing. Directing is the management function of providing guidance to workers and work projects. Directing activities include motivating, leading, and disciplining workers. When a manager encourages an employee to do something, the manager is performing a directing activity. Organizing is the management function of setting up the way the business's work will be done. Recruiting is a staffing activity. Staffing is the management function of finding workers for the business. SOURCE: SM:066

If a firm discovers a competitor's weakness when it is conducting a competitive analysis, the firm has often uncovered a(n)

Marketplace opportunity. A competitive analysis is the process of comparing a firm's performance (e.g., profits) with that of its competitors to see how it is doing by industry standards. Uncovering a competitor's weakness can provide a firm with an opportunity to increase its market share. For example, if an analysis indicates that a competitor does not have the resources to effectively reach a market segment, the firm has uncovered a potential opportunity to expand into another market. An internal threat is a weakness within the company, such as outdated equipment. Ethics are the basic principles that govern a person's behavior. Product liability is a producer's responsibility for any injury that the business's products may cause. SOURCE: MP:012

What directing activity involves rewarding employees with positive feedback and monetary incentives?

Motivating. Directing is the management function of providing guidance to workers and work projects. A directing activity is motivating employees, which is prompting them to continue a certain behavior or to take a certain action. When a manager provides employees with positive verbal feedback for their performance or offers monetary incentives for them to achieve certain goals, the manager is motivating employees. Supervising involves monitoring the work effort. Coordinating involves linking activities to achieve a desired outcome. Producing involves combining inputs to create outputs—making goods or services. SOURCE: SM:066

A water-filtering company made some changes to its processes that resulted in better tasting water. This is an example of

Quality improvement. Quality improvement involves using a systematic approach to increase the levels of excellence in relation to a process, good, or service. Taking action to create better-tasting water is improving the quality of the end product—water. Quality control is ensuring the degree of excellence of a good or service. After making the improvements, the company will need to ensure that its products meet the new standards of excellence by implementing different quality-control activities. Opportunity cost is the benefit that is lost when you decide to use scarce resources for one purpose rather than another. Market development is the activities that a business implements to increase its target market. SOURCE: QM:001

To control various business activities in an effective manner, managers must first

Set appropriate standards. To control business activities effectively, managers must set appropriate standards to be able to measure the productivity of a specific activity. Although controlling business activities might require managers to identify communication channels, request employee feedback, and initiate corrective action, standards must be in place to understand the type of control that is needed. SOURCE: SM:004

Which of the following is a disadvantage of a narrow span of management:

Slower communication process. A narrow span of management is one that has many managers with a small number of direct reports. One disadvantage of this model is that it can be more difficult to communicate through several levels of management, making the decision-making process slower. However, in a narrow span of management, there is more focus on individual employees. Narrow spans of management are more expensive rather than cost efficient. Finally, narrow spans of management offer more opportunity for career advancement. SOURCE: SM:100

Which of the following is the most likely reason that a business might choose to engage in corporate social responsibility:

To improve its image. Corporate social responsibility helps businesses improve their image by showing that they care about the community and are making a positive impact. It is especially useful if a business has received some bad publicity. Corporate social responsibility does not necessarily help a business to cut expenses, improve customer service, or grow its workforce. SOURCE: SM:082

Why is it important to think ahead about how you will monitor your project?

To make sure the project's quality doesn't suffer. It's important to think ahead about how you will monitor your project so that you will know how you will keep the quality level, the schedule, and the budget intact. You will not be practicing any monitoring during the planning stage. Monitoring occurs during project management. Picking the right helpers is beneficial, but it is not why you need to think ahead about monitoring your project. Thinking ahead about how you will monitor your project does not guarantee the availability of needed resources. SOURCE: OP:001

Isabelle is developing a document that divides a long-term project into meaningful subprojects and tasks, which she will use to guide the workflow. Isabelle is developing the

Work breakdown structure. A work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. Dividing the project into small work packages helps the project manager effectively schedule, assign, and monitor project activities. Isabelle is not developing a project status report, data interchange program, or a technical operating system. SOURCE: PJ:006

Establishing clearly formulated, overall organizational objectives provides a business with

Direction for the business's activities. Setting overall company objectives provides direction and guidance for management based on the mission of the organization. Strategies are the plans of action for attaining company goals. Tactics are the specific actions that will be used to carry out strategies. Potential risks may be identified when objectives are formulated, but that is not the purpose of setting objectives. SOURCE: SM:008

The objectives that managers develop for a business to attain are also intended to serve as operating

Guidelines. A business's objectives are designed to serve as guidelines for daily operating activities. Once an objective is developed, the business can design jobs and activities that will make it possible to attain the objective. Objectives are goals to be attained rather than strict standards or requirements to be met, or regulations to follow. SOURCE: SM:008

Which of the following is a question that should be answered when developing the "lessons learned" document:

How can we improve? During the closing phase of the project, the project team develops the "lessons-learned" document, which summarizes the project's successes and failures. The document also includes suggestions for improvement for similar projects in the future, such as process changes or additional staff support. To include the suggestions for improvement, the project team needs to answer the question, "How can we improve?" Questions regarding needed equipment, stakeholders, and risks are addressed during the initiation phase of the project. PJ:008

What is the demand for our products in this region? This is a question that a business wants to answer when it

Conducts a market analysis. A market analysis is a systematic study of the market. It is important for a business to know how many members of the market want or need the business's product before it spends the money to market the product in that area. If there is little or no demand for the product in a specific geographical area or region, then it is not practical to spend money to offer and promote the product. A business does not use a market analysis to evaluate the business's technology needs or to develop financial standards. The purpose of an orientation program is to introduce new employees to their coworkers and orient them to their new work environment. SOURCE: MP:009

Which of the following is an activity performed during the close-out phase of a project:

Documenting results. An important part of closing a project is documenting the project's results. This involves advising the stakeholders of the project's outcomes, which is often provided in a formal report. Setting goals, selecting resources, and assigning tasks in a logical sequence are activities that take place when initiating a project. PJ:008

Which of the following is an internal factor that impacts management:

The company culture. Management is affected by many factors, both inside the organization and outside of it. An internal factor that affects management is the company culture. The values, vision, and environment of a company have a huge role in shaping the management style. Managers should be in line with the company culture. Customer satisfaction, changes in interest rates, and supplier relations are all external factors that impact management. SOURCE: SM:100

The new business owner set a goal of selling $50,000 of goods in the first six months. This is anexample of a(n) __________ objective.

Measurable. An objective must include a way that it can be measured and evaluated in order for it to be useful. Setting a certain sales goal over a specific time period allows a company to measure its success in meeting the objective. Staffing objectives involve setting goals for hiring employees. Advertising objectives involve setting goals for promoting the business. Inventory objectives involve setting goals for purchasing and maintaining goods in stock. SOURCE: SM:008

Which of the following would be part of the management function of organizing:

Assigning individual workers to specific jobs. Organizing is the management function of setting up the way the business's work will be done. Management is the process of planning, organizing, directing, and controlling activities in order to achieve goals or objectives. Assigning workers to do certain tasks is part of the organizing function. Setting company goals is part of planning. Taking corrective action is part of controlling. Interviewing customers is a job to which specific workers might be assigned. SOURCE: SM:001

One of the functions of managerial control involves comparing the results of various business activities with the

Established goals. Controlling is the management function that monitors the work effort. One of the main functions of managerial control is to make sure that the business's goals and objectives are achieved. To be successful, businesses must be able to achieve what they plan. By monitoring the actual results of various business activities, managers will know if the business is performing as planned and achieving its goals, or if changes need to be made. Hiring and purchasing are types of business activities. Safety regulations are established by governments. SOURCE: SM:004

An important part of the planning function of management is to determine the business's

Goals. Planning is deciding what will be done and how it will be accomplished. Managers begin the planning process by determining the goals and objectives they want the business to achieve. Then, they select the appropriate resources that will be needed to reach these goals. The planning function of management does not involve determining the business's sales, profits, or wants. SOURCE: SM:001

The fundamental activity associated with the planning function of management involves

Looking ahead. The management function of deciding what will be done and how it will be accomplished is planning. A primary aspect of the planning function is determining the goals or desired outcomes, which involves looking ahead. Measuring the success or achievement of goals is a controlling activity. Motivating employees is a directing activity. Establishing structure is an organizing activity. SOURCE: SM:063

Identifying market segments helps a business to develop appropriate

Marketing strategies. Identifying markets involves dividing the whole market into smaller groups that share common characteristics. When a business identifies different markets, it can then select the group (target market) that is most likely to buy its products. After selecting the target market, the business can develop a plan of action and carry out activities that will appeal to the target market and encourage it to buy its products. Businesses do not identify market segments to develop appropriate economic forecasts, organization records, or leadership styles. SOURCE: MP:004

Which of the following is most likely to be included in a company's management plan:

Organizational chart. Companies typically include an organizational chart in management plans to detail the management team members' responsibilities and relationships to one another. Supply chain and manufacturing processes are described in the operations section of a business plan. Salary costs appear in the financial section of a business plan. SOURCE: SM:049

Which of the following is an example of an activity associated with the directing function of management:

A manager disciplines an employee for inappropriate behavior in the workplace. Directing is the management function of providing guidance to workers and work projects. An important part of guiding workers involves disciplining them when necessary. Sometimes, when employees are not doing what they need to be doing, managers need to discipline them. This might involve telling them that certain behaviors are inappropriate. Interviewing job applicants is a staffing activity. Coordinating tasks is an organizing activity. Recommending changes is a controlling activity. SOURCE: SM:066

When a business conducts a market analysis and identifies territories, determines the possible buyers in the territories, and estimates the buyers' purchases, it is evaluating the

Area's market potential. A market analysis is a study of a particular market segment. The purpose of the market analysis is to determine the level at which the market segment is willing and able to buy the business's products. One aspect of the market analysis addresses the area market potential, which is the number of potential customers and the potential sales volume for a specific area, territory, or location. Psychographics are lifestyle and personality considerations of a market segment. Competitors are the business's rivals. Media exposure refers to the amount of contact the business makes with the target market through the media (e.g., television, radio). Psychographics, competitors, and media exposure are other important considerations when evaluating the overall market potential of a market segment. SOURCE: MP:009

In management, a primary organizing activity is

Assigning responsibility. Organizing is the management function of setting up the way the business's work will be done. Assigning responsibility (establishing levels of authority) is an organizing activity. Hiring talented workers is a staffing activity. Evaluating job performance is a controlling activity. Management can monitor and adapt to external conditions but cannot control them. SOURCE: SM:064

An important part of employee compensation is the

Benefit package. Employee compensation includes a combination of pay and benefits. The benefit package is important because it amounts to about one-third of total compensation. Businesses need to consider the cost of the benefit package when developing staffing needs. For example, if an employee is paid $30,000 a year, the benefit package costs the business about $10,000 a year for a total of $40,000. There is a big difference between $30,000 and $40,000 when preparing a budget. Wage garnishment, intangible reward system, and discount rate are not important parts of employee compensation. SOURCE: HR:390

During what phase of the project does the project manager release the project's equipment, supplies, and team members?

Closing. When a project has been completed, the project manager returns the equipment and supplies to vendors or departments and releases team members to their previous duties. During the implementation phase, the team members use the resources to perform project tasks. During the planning phase, the project manager determines the resources that will be needed to complete the project. The stakeholders define the project's purpose during the initiation phase of the project. PJ:008

Which of the following is an ethical issue that a business manager might encounter:

Conflict of interest. Managers might encounter a conflict of interest if they are unable to be objective when making decisions about employees. For example, if they are friends with an employee, they might not want to give that person a negative performance evaluation even though it is justified. In those situations, managers should remove themselves in order to be ethical and allow a manager who is not a friend of the employee to conduct the evaluation. Balance of trade is the difference between the value of a nation's exports and its imports. Span of control is the number of workers reporting to a manager. Return on investment is income received from an investment in a business. SOURCE: SM:002

Before a business owner decides to hire a new employee, s/he must first

Consider the demand for the business's product. Business owners often hire additional employees when they expect demand to increase for their products. When a company expects higher sales, it needs to increase its outputs and, therefore, needs more inputs (e.g., personnel) to satisfy the higher product demand. Business owners do not need to obtain government application forms to hire employees. The business owner may not ask current employees to increase their workloads because they may not have the necessary skills to perform the job. Once the business owner determines that there is a need to hire an employee, s/he can advertise the position in the newspaper for outside candidates. SOURCE: HR:353

Quarterly, each of the international vice presidents of Smith & Webber completes the company's scorecard and submits it to the president of the company. The scorecard tracks sales, profit, advertising expenses, and other key information. The scorecard is a tool for which of the following management functions:

Control. Control is establishing performance standards based on the company's objectives and then evaluating and reporting the actual job performance. The scorecard allows top management to evaluate job performance in each country. Planning requires administration to assess where the company is currently and where it should be in the future. From there an appropriate course of action is determined and implemented to attain the company's goals and objectives. While the scorecard may be evaluated prior to planning, it is not a plan for moving forward. It is a picture of the current quarter. In the directing function, management assists staff in meeting company as well as personal career goals. Organizing involves creating an organizational chart, establishing and maintaining relationships, and assigning required resources. SOURCE: SM:004

Which of the following management functions evaluates an organization's performance and corrects any problems that may exist:

Controlling. Comparing the firm's performance with its plans should be an ongoing process. This not only shows the direction the business is taking but enables the business to correct small problems before they grow into big ones. Directing is the management function that provides guidance to workers so that they can help the business meet its goals. Organizing is deciding how the work required by an organization will be divided. Analyzing, or examining in a methodical way, is not a management function. SOURCE: SM:001

Age, ethnicity, and income are all factors when developing a target segment based on

Demographics. Age, ethnicity, and income are all factors of the science of demographics, which studies the various aspects of a group's background to determine similarities in decision making of individuals within groups. Sometimes, geographical areas are used to segment populations. This type of targeting can emphasize attachment to a particular geographic location as the defining feature of a group. Behavioral segmentation sorts consumers based on their attitudes towards or use of a product or service. Psychographics is used to segment markets on the basis of beliefs, values, attitudes, lifestyles, etc. SOURCE: MP:004

Company XYZ has developed a new flavor of ice cream called Hunky Chunky and has selected a target market that consists of boys, ages 7-15, who are living at home with their parents in a household that earns between $30,000 and $60,000 a year. This method of target market selection is based on

Demographics. Demographic segmentation is the division of a market on the basis of its physical and social characteristics. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Geographic segmentation is the division of a market on the basis of where consumers are located. Socioeconomics is not a method of selecting a target market. SOURCE: MP:005

Before a business takes steps to hire a new employee, it should

Determine that a new employee is actually needed. The business should make sure that the business really needs another employee before beginning the hiring process. New employees are often needed when the business has expanded, its market has grown, or current employees are leaving or retiring. Once the need for an additional employee has been established, the business can identify the available sources of new employees and plan the employee's schedule and training. SOURCE: HR:353

The scope of control that staff members have over their jobs affects the amount of time that a manager spends

Directing their work activities. Directing is the management function of providing guidance to workers and work projects. When managers are directing the staff members' work, they are monitoring and evaluating the work to determine if it is being done correctly. This often involves observing the employees and providing feedback. The scope of control that an employee has over his/her work affects how much a manager directs the employee's work. If an employee has a great deal of control over his/her work, has authority to make decisions about how his/her work is accomplished, and works independently in a responsible manner, then the manager does not need to spend a lot of time directing the employee's work activities. Planning is the management function of deciding what will be done and how it will be accomplished. Identifying ways to achieve goals is an element of the planning function. Negotiating employee contracts is an activity associated with the staffing function of management. SOURCE: SM:066

A furniture store manager who helps an employee decide when and where products should be delivered performs which management function?

Directing. Directing is providing guidance to workers and work projects. An example of directing would include a furniture store manager assisting employees with product deliveries. Controlling involves monitoring the work effort. Staffing involves finding workers for the business. Organizing is setting up the way the business's work will be done. SOURCE: SM:001

A global manager is most likely to struggle to recruit and develop the right employees in a different country if s/he

Doesn't understand the job market. One of the challenges of global management is recruiting and retaining the right employees. It can be difficult to do so if a manager does not understand the local job market. While language can be a barrier, it should not prevent a global manager from recruiting and developing the right employees because a translator could be used. There is no indication that the global manager is not qualified for his/her job. Finally, compliance is not necessarily related to recruiting and retaining the right employees. SOURCE: SM:029

The Fisher Manufacturing Company has been receiving a lot of complaints about product breakage problems with the model 2YZ. Fisher has been working with its parts vendors and production-line personnel to try to determine why the problems are occurring. This is an example of a product-quality issue related to

Durability. If products are breaking for some reason, there is a product-durability problem. In Fisher's situation, products are breaking, and it needs to find out why, so it can take steps to fix the problem and restore or improve product quality. The problem might involve an issue with its vendors, if they are providing substitute or lower-quality parts or raw materials. The problem might involve an issue with faulty machinery on the production line or untrained workers who are not assembling the item correctly. Volume is the amount or degree of something. Distribution is the business function of moving goods and products to the end users. Costs are expenses. The example does not illustrate a product-quality issue with volume, distribution, or costs. SOURCE: QM:001

One of the main purposes of a business plan is to help a new business

Establish objectives. A new business develops a business plan to establish its objectives, outline the steps it must take to achieve the objectives, and estimate its financial needs. Objectives are the goals that a business wants to achieve. For example, a new business might establish an objective of becoming the main provider of a specific product to area residents. Once the business establishes its goals, it can develop strategies to achieve them. Policies are general rules to be followed by company personnel. A procedure is the step-by-step process personnel follow in performing a specific task. Standards are used as a basis for comparing or judging goods or services. SOURCE: SM:007

One of the main reasons why owners develop a business plan before starting a new business is to

Estimate financial needs. Before starting a new business, owners develop a business plan in order to establish objectives, outline the steps to take to achieve the objectives, and estimate financial needs. Estimating financial needs is extremely important because the owners need to know how much money it will take to operate the new business until it begins to generate a profit. If the owners do not have sufficient funds or cannot obtain those funds, it may not be feasible to start the business. Owners do not develop a business plan to organize production processes, identify qualified workers, or prepare operating manuals. SOURCE: SM:007

During what phase of the project life cycle does the project manager activate project controls?

Execution. During the execution phase, project activities are being carried out. During this phase, the manager controls and monitors the work that is being performed. During the definition phase of the project, the project is initiated and the project charter is developed. The project objectives, work breakdown structure, and resource allocation needs are established during the planning phase of the project. During the closing phase of the project, the deliverables are evaluated and team members and equipment returned or reallocated to other functions. SOURCE: OP:158

The part of the business plan that gives an overview of the entire document is the

Executive summary. The executive summary is the most important part of the business plan because it gives an overview of the entire document. At the end of the document are the appendices—the extra bits of information that describe or lend support to a point made in the document. The table of contents lists all of the business plan's sections with corresponding page numbers, so that information is easily accessible. The company description accurately portrays the new company or venture, provides a history of the company, and shows the current business structure, among other things. SOURCE: SM:007

What is an important element of all businesses that managers must control?

Finances. Controlling the finances of a business is critical if the business wants to succeed. Managers need to understand the finances and be able to use financial tools, such as income statements and balance sheets, to monitor the business's income and expenses. Managers need to be prepared to take action to correct problems with the bottom line if financial controls indicate that the business is losing money. It is not possible to control competitors. Benefits and incentives are advantages or payments employees receive in addition to their wages. Businesses usually establish benefit and incentive programs that are comparable to those of similar businesses in the same industry. Reducing benefits and incentives is a step that managers might take if they identify a problem with the business's finances. SOURCE: SM:004

One of the main reasons why a business conducts a market analysis is to

Forecast sales. Businesses need to gather and analyze marketing information in order to make decisions about what to do in the future. A main concern for most businesses is forecasting sales. They want to be prepared to sell the right products in the right amount to the right market over a period of years. To do that, they must understand changes in the market and in economic conditions. By analyzing current market information, businesses often are able to make fairly accurate sales forecasts which allow them to plan for the future. Conducting experiments, identifying samples, and observing consumers are research methods that businesses use to obtain the type of marketing information they need to analyze. SOURCE: MP:009

As part of its market analysis, the SVM Company estimates the increases in demand for its products over a set timeframe for a particular market segment. The SVM Company is attempting to analyze the market's

Growth rate. A market analysis is a systematic study of the market. The growth rate of a potential market is an important consideration when conducting a market analysis. If data indicate that the market is expected to grow, then it is possible that there could be a greater demand for the business's products in the future, so the business must take steps to prepare to meet the needs of the growing market. If market growth is expected to decline, the business needs to know so it can make changes and perhaps try to identify a new market. Market size is the number of possible buyers in a given market at a given time. Profitability is the degree or level of profit of a business or a product. A business does not evaluate a market's performance, but its potential to buy. SOURCE: MP:009

Findley Construction Company has been awarded a major contract to work on a new shopping mall and arena that is being built in the city's business district. Because the project requires special skills and knowledge, Nick, Findley's human-resources manager, will need to acquire new workers to carry out the many tasks associated with the project. Nick is responsible for _________ workers, which is an activity associated with the __________ management function.

Hiring, staffing. Staffing is the management function of finding workers for the business. A primary staffing activity is hiring employees to perform the work. Another important staffing activity involves training the employees to perform the work correctly. Directing is the management function of providing guidance to workers and work projects and often involves influencing employees to behave or work in a certain way. Controlling is the management function of monitoring the work effort. Organizing is the management function of setting up the way the business's work will be done. SOURCE: SM:065

What is an important question that a manager must consider when hiring a new employee?

How will the company compensate this worker? Staffing is the management function of finding workers for a business. Recruiting, interviewing, hiring, and training are staffing activities. When hiring an employee, the manager must consider how the business will compensate the employee. This involves determining the appropriate salary range for the job, insurance, vacation, and other benefits. The company's vision is a consideration of the planning function of management. Workload distribution is a consideration of the organizing function of management. Product quality standards are considerations of the controlling function of management. SOURCE: SM:065

Businesses realize that it is almost impossible to appeal to all customers which is why most businesses try to

Identify market segments. A market segment is one of the groups into which the total market is divided. The marketplace today is very diverse and includes consumers from many backgrounds who have different lifestyles. As a result, it is virtually impossible to appeal to all consumers. Therefore, businesses try to identify the market segment that wants and needs their particular products. By identifying the appropriate market segment, businesses can focus on those individuals who are the most likely to buy their goods and services. Marketing goals are the objectives a firm seeks to reach with its marketing plan. Distribution channels are paths, or routes, that goods or services take from the producer to the ultimate consumer or industrial user. A guarantee is a promise made to the consumer that a product's purchase price will be refunded if the product is not satisfactory. SOURCE: MP:004

As a result of reviewing competitors' promotional activities while conducting a competitive analysis, a business might decide to

Implement similar activities. When businesses conduct a competitive analysis, they consider their competitors' promotional activities because promotional activities have an impact on a business's success in attracting customers and selling products. As a result of analyzing competitors' promotional activities, a business might decide to use similar activities because they have proven to be effective. A business would not decide to eliminate all advertising. Promotional activities do not include pricing strategies or sales training. Other aspects of a competitive analysis might indicate that a business should revise its pricing strategies or provide additional sales training. SOURCE: MP:012

A furniture manufacturer has been receiving complaints about the safety of its Model BA2X baby crib. What is the first thing the manufacturer should do?

Initiate a product recall. Quality management is the coordination of resources to ensure the degree of excellence of a process, good, or service. A product recall is the removal from the marketplace of a product that is defective or hazardous to consumers. Defective baby cribs can seriously injure or kill babies. Therefore, the manufacturer needs to immediately notify the public that the crib is hazardous, so owners know to stop using the crib. Notification is generally communicated to the public by letters, the media, signs in stores, on the company's web site, etc. The manufacturer should cease production and stop shipping the crib until the problem has been fixed. Style refers to the product's appearance, and is not a primary concern when dealing with a defective item. Offering refunds and shipping a fixed or different type of crib are secondary actions that the manufacturer can take after recalling the defective crib. SOURCE: QM:001

One activity associated with the directing function of management is

Instructing employees. Directing is the management function of providing guidance to workers and work projects. When managers provide employees with guidance, they are often providing employees with instructions about performing tasks in a certain sequence or manner. Establishing goals are planning activities. Determining tasks are organizing activities. Interviewing applicants are staffing activities. SOURCE: SM:066

Why does the pursuit of financing often require a company to develop a detailed management plan?

Investors care about a company's leadership and management abilities. Investors are more likely to invest in a business if there are highly qualified individuals in place to run the business. Investors are more interested in a business plan's content than its complexity or professional appearance. A company's ownership structure is typically identified before a detailed management plan is created. A company with opportunities to finance through the strength of the business concept or through strong banking connections, family members, crowd funding, or angel investors may not need a detailed management plan to obtain financing. SOURCE: SM:049

What is one question that a business must answer when identifying a potentially profitable target market?

Is the market responsive? It is important for a business to know whether customers would, in fact, be interested in its products and also be willing to buy them. If it is a responsive market that has interest and the ability to buy, the business has a better chance of being profitable. Considering form utility, variable expenses, and advertising media are important; but these questions do not specifically pertain to identifying a target market. SOURCE: MP:005

After the new video game "Rocket Bunny" arrived on store shelves, the team that created it had a meeting to talk about the project. They discussed the project's slow start and how they could have done it better. They also talked about using a wiki to communicate and how they will use wikis again in future projects. The Rocket Bunny team is engaging in a

Lessons learned meeting. It is important for teams to discuss and document the lessons learned from a project after it is complete. These lessons can then be used to improve work on future projects. A project planning meeting happens either at the beginning of a project (to create the project plan) or in the midst of the project (to make changes to the project plan). After the project is over, the plan is complete. Monitoring takes place during a project and ends when the project ends. The project champion is the person in the organization who has the authority to use resources within or outside an organization for completion of a given project. S/he serves as the single point of contact between upper management and those working on the project. A project champion is identified at the beginning of the project. PJ:008

Which of the following types of information is essential for creating an organizational structure:

Listing of departments. An organizational structure is largely based on defined business departments and how they interact with one another. Sources of capital and salary costs are financial concerns that are not essential to determine an organizational structure. Supply chains are part of a company's operational plans and are not typically included in a company's organizational structure. SOURCE: SM:032

An all-inclusive resort hotel is about to open in a newly developed part of Jamaica. It will be the tallest building on the island. Its target market is 35- to 55-year-olds. The resort is right on the water and positioned so that guests have an unimpeded view of the sunset. A number of fast-food restaurants have also opened in the area. The resort is moderately priced. What would you suggest as the hotel's competitive advantage?

Location on the water. Few hotels will be able to duplicate the hotel's location; therefore, that should be its competitive advantage and should be used to attract the 35- to 55-year-old market that has money to spend. Since food will be included in the price guests pay, ease of access to fast-food restaurants will not be an advantage. Some guests may be turned off by the hotel's height because they'd prefer being close to the ground. The target market will be appealed to--not the competitive advantage. SOURCE: PM:246

Which of the following is an activity that a business performs when conducting a competitive analysis:

Monitors rivals' marketing strategies. A competitive analysis involves gathering information about a business's competitors. A business obtains the information by monitoring its competitors' marketing strategies—the activities the competitors use to market their products. The business may look at the competitors' products, web sites, advertisements, and other promotional literature to gather information. Then, the business can summarize and evaluate the information that it collected to determine its competitors' strengths and weaknesses in the marketplace. By knowing its competitors' strengths and weaknesses, the business can take steps to improve its market share, if necessary. A competitive analysis does not involve setting productivity goals, calculating economic data, or developing selling procedures. SOURCE: MP:012

When the owner of a small company conducts an organizational SWOT analysis, it is important for him/her to

Obtain input from employees. When conducting a SWOT analysis, it is always a good idea to obtain input from employees throughout all levels of the organization. Each employee has a unique perspective and can often provide insights and feedback that may help the business improve and grow. Although threats (e.g., new competitors) are important considerations, the business's strengths, opportunities, and weaknesses are equally important to address. After conducting the SWOT analysis, the business owner can analyze the information and work with managers to develop strategies to improve weaknesses, maximize strengths, mitigate threats, and act on opportunities. The business should define its mission in its business plan and use its mission statement to guide decision making when setting objectives and developing strategies to carry out the business's work. SOURCE: SM:010

The primary purpose of developing a work breakdown structure (WBS) for complex projects is to

Organize the work in a logical sequence. A work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. Creating the WBS involves organizing everything that needs to be done in a logical sequence, to ensure that the project's goals are achieved and deliverables are delivered on time. The project's benefits and stakeholders are identified in the statement of work (SOW). Monitoring human resources and supplies is a management activity. SOURCE: PJ:006

Jackie is a manager with the SDP Company and is establishing a systematic way for her department to complete a long-term assignment. What function of management is Jackie carrying out?

Organizing. The management function of setting up the way the business's work will be done is organizing. Organizing involves determining how to best use the available resources (i.e., financial, material, human) in the most efficient manner to achieve the business's goals. Leading is guiding or directing the actions of others in a desired manner. Staffing is the management function of finding workers for a business. Controlling is the management function that monitors the work effort. SOURCE: SM:064

Which of the following should a business consider when developing a project plan to help control costs:

Potential problems. An effective project plan helps to control costs by considering potential problems that may arise. By addressing problems in the planning stage, a business is able to develop a method of dealing with potential problems, which often eliminates the need to make costly changes while completing the project. Businesses establish the objectives before developing the plan to carry out the project. Publicity is free, although many projects are internal and do not involve publicity. Furthermore, not all projects are intended to be advertised, so advertising expense is not involved. SOURCE: OP:001

An automobile manufacturer initiates a product recall for a group of new sedans that have defective brake pads. This is an example of a quality-management issue related to

Product safety. Quality management is the coordination of resources to ensure the degree of excellence of a process, good, or service. A product recall is the removal from the marketplace of a product that is defective or hazardous to consumers. Defective brake pads can cause automobile accidents and serious injuries. Therefore, the manufacturer needs to fix or replace the cars to reduce the risk of accidents and injuries. Customization is the process of producing a product with special specifications. Customer preferences are a customer's specific wants. Adaptability is the ability to adjust to changing conditions. The example is not a quality-management issue related to customization, customer preferences, or adaptability. SOURCE: QM:001

Who is usually responsible for planning a project?

Project manager. The person responsible for planning a project is usually the same person who is responsible for carrying it out: the project manager. Under the project manager, project assistants, coordinators, and schedulers may work on parts of the planning or information related to the planning. But they are not responsible for planning the entire project. SOURCE: OP:001

What should a manager of a global company do to build relationships among international colleagues?

Provide cultural training for employees. It can be challenging for employees from different countries to form relationships and connect with one another. Cultural training can help employees understand the similarities and differences between their own culture and others. Understanding the other culture's approach can help the employees connect. While communicating in person is a better way to form relationships, technology cannot be avoided in global business. Keeping employees largely separated is also not realistic or productive. Finally, risk management is not necessarily related to building relationships among international colleagues. SOURCE: SM:029

Caitlin is the manager for a busy accounting department and has decided not to replace the payroll specialist who recently resigned. She wants Martin, who currently handles the firm's accounts-receivable, and David, the accounts-payable clerk, to jointly take over the payroll-processing responsibilities. She also wants her assistant Fiona to take over some Martin's and David's current tasks. What organizing activity is Caitlin performing?

Reallocating resources. The organizing function of management sets up the way the business's work will be done. Often, managers such as Caitlin need to reorganize employees' workloads in order to accomplish the business's goals. Providing employees with feedback is a controlling activity. Providing employees with training is a staffing activity. Establishing goals is a planning activity. SOURCE: SM:064

Which of the following should effective managerial planning do:

Reduce uncertainty. Planning is the management function of deciding what will be done and how it will be accomplished. Planning activities focus on deciding what will be done and setting goals that the business eventually wants to achieve. When plans are communicated to employees so they understand where the business is headed, it can reduce uncertainty and confusion. The organizing function of management establishes a chain of command. SOURCE: SM:063

One procedure for determining future hiring needs involves analyzing

Sales volume. Sales volume is the amount of a business's sales. Businesses often analyze sales volume over a period of time when determining future hiring needs. For example, if a business's sales have increased steadily over a period of time, the business might decide that hiring additional salespeople will help to increase sales even more. The increased sales might also indicate that the business needs to hire additional support staff to fill orders and provide customer service. Merit pay is a salary increase based on performance. Job security is the assurance that employees will keep their jobs. Determining future hiring needs does not involve analyzing formal training. SOURCE: HR:353

The Page-Turner Online Bookstore sent a questionnaire to its customers to determine how happy its customers are with its services. Customers' general responses indicated that the bookstore's lead and delivery times have improved a lot in the past three months. What aspect of quality has the bookstore evaluated?

Satisfaction. If customers are not satisfied with a business's goods and services, they will start buying from competitors. Therefore, businesses need to continuously monitor customer-satisfaction levels and take steps to maintain or improve satisfaction levels. Quality improvement involves using a systematic approach to increase the levels of excellence in relation to a process, good, or service. In the example, the bookstore surveyed customers to obtain their opinions about the store's goods and services, which will provide input about the customers' level of satisfaction. The example does not indicate if product durability, safety, or customization were topics included in the survey. SOURCE: QM:001

At Company X, employees each put together a small part as it passes them on the assembly line. Rewards are given to employees who work the fastest. Managers frequently observe employees to determine how each job can be done faster. The managers are using the __________ theory.

Scientific management. The scientific management theory focuses on the efficiency of tasks (e.g., time and motion studies). According to the behavioral management theory, if employees are happy, they will perform well and support the business. The management science theory uses math, statistics, and other quantitative techniques to make decisions (e.g., TQM). The administrative management theory focuses on development of an organizational structure that is both highly efficient and effective, including clear lines of authority, set rules and procedures, etc. SOURCE: SM:030

Why is it important for businesses to analyze the competition on a regular basis?

To determine ways to compete. Businesses need to analyze the competition on a regular basis in order to understand their competitors and to develop ways to effectively compete in the marketplace. The competitive environment changes constantly. Therefore, businesses must keep up to date with what their competitors are doing in order to remain successful. Businesses do not analyze the competition in order to eliminate competitors, understand laws regulating competition, or compete on an ethical basis. SOURCE: MP:012

Which of the following factors should a business consider when conducting a comprehensive market analysis:

Segment size, competitors, and demand. A market analysis involves collecting information about a group (segment) that may have an unfulfilled desire for something and is willing and able to pay for it. A business analyzes various segments to determine if it is profitable to market its products to those segments. The market analysis considers the size of the market segment, the product demand, and the competitors it may encounter. A strategy is a plan of action for achieving goals or objectives. Policies are general rules that a business's employees must follow. Frequency is a quantitative measure of the average number of times a target consumer is exposed to an advertising message. Reach is a quantitative measure of the number of different people in the target audience who are exposed at least once to an advertising message. Reach and frequency are considerations when selecting advertising vehicles, but not when conducting a market analysis. SOURCE: MP:009

When an automobile company markets a van to families and a luxury sports car that appeals to single, working adults, it is engaging in ____________ marketing.

Segment. Segment marketing is the classification of customers into similar groups in order to appeal to one or more individual segments. An automobile manufacturer that develops different types of vehicles to appeal to different types of drivers is engaging in segment marketing. Local marketing occurs when a business customizes its marketing activities to appeal to customers at a community level. Mass marketing occurs when businesses develop products and implement marketing strategies that appeal to the whole market. Relationship marketing refers to a strategy in which businesses spend time with current and prospective clients outside the business setting to enhance the partnership. SOURCE: MP:005

A mission statement should be

Short, specific, and understandable. A mission statement is a brief summary of what a business owner wants a business to be doing. Effective mission statements are short, specific, understandable, and memorable. They should not focus on products; instead, they should focus on customer needs. They tell who the customers are, what customer needs the business strives to satisfy, and how the business serves the customers. Mission statements should be realistic, not too narrow or too broad. Long, generic mission statements are not as understandable or memorable as short, specific mission statements. SOURCE: SM:009

Which of the following are characteristics of tactical planning:

Short-range and specific. Tactical planning is short-range planning (one year or less) of specific actions that the business will take. Tactical plans involve day-to-day operating activities and are usually implemented by lower-level managers. Tactical plans are based on strategic plans. Strategic planning involves long-term planning (more than one year) and focuses on the general future of company. Strategic plans are usually developed by upper management. SOURCE: SM:063

Businesses identify market segments by dividing consumers into groups that have

Similar characteristics. Market segmentation is the division of a total market into smaller, more specific groups. The basis of the division is similar characteristics that are geographic, demographic, or psychographic in nature. Some of the groups or segments have unusual interests, but not all of them do. Most people have financial needs, so this characteristic is too broad to consider for market segmentation purposes. When dividing a group by psychographics, the segment has similar rather than inconsistent values. SOURCE: MP:004

Why is it important to define your project precisely?

So you can achieve your objectives. Knowing exactly what it is you want to do (precise project definition) helps you achieve your objectives. It does not help you create something tangible, though your project may involve tangible items or a tangible outcome. It does not help you involve other people, though you may want or need to do that. And, unfortunately, it does not help you spend less money because—by detailing what you want to do—you might discover that your project will be more expensive than you realize. SOURCE: OP:001

What management function involves identifying qualified candidates to perform the business's work?

Staffing. Staffing is the management function of finding workers for a business. An important staffing activity is identifying qualified candidates to do the work. To identify qualified candidates, the manager must know what skills are needed to perform the work. Leading involves directing the activities of others. Persuading is convincing others to take a certain course of action. Controlling is the management function of monitoring the work effort. SOURCE: SM:065

Burkhart Manufacturing is implementing a new, company-wide computer system. Nadine is in the process of identifying the skills that will be needed to manage the information and maintain the various software applications. What function of management is Nadine focusing on?

Staffing. Staffing is the management function of finding workers for a business. The staffing function identifies qualified candidates to perform the work. To identify qualified candidates, the manager must know what skills are needed to perform the work. Because Nadine is determining what skills are needed to operate the new computer system, she is focusing her efforts on the staffing function of management. Controlling is the management function of monitoring the work effort. Training involves teaching or developing a new skill. Planning is the management function of deciding what will be done and how it will be accomplished. SOURCE: SM:065

A primary purpose of preparing a work breakdown structure for a project is to

Streamline the workload. Work breakdown structure (WBS) is the process of dividing project tasks into meaningful components. Developing the WBS facilitates the project manager's ability to identify all of the necessary tasks to complete the project. The WBS helps the project manager effectively schedule, assign, streamline, and monitor complex project activities, so the project runs as smoothly as possible. Setting goals, identifying project deliverables, and evaluating the quality of resources are activities performed during the project initiation phase. Evaluating the quality of the resources may be performed during the close-out phase of the project, as well. SOURCE: PJ:006

Which of the following would cause a business to select a tall organizational structure instead of a flat structure:

The company will be run by numerous managers with varied levels of management responsibilities. Large, complex organizations run by several levels of management usually require a tall organizational structure. Businesses using interactive departments, consisting of collaborative teams, and empowering employees to handle large projects typically benefit from flat organizational structures. SOURCE: SM:032

Which of the following is the main purpose of management:

To accomplish the business's goals. Management is the logical process of coordinating resources, such as money and employees, in order to accomplish an organization's goals. Some ways that management can do this are by obtaining needed resources and creating a good working atmosphere in which workers can be as productive as possible. SOURCE: SM:001

What is the primary purpose of developing a post-implementation review during the closure phase of a project?

To determine if the deliverables achieved project goals. After the stakeholders receive the project deliverables, the project manager develops a post-implementation review. The post-implementation review is a formal, detailed assessment of the completed project in relation to the project's objectives. The document assesses the project's budgets, deadlines, processes, and the stakeholders' satisfaction with the results or deliverables. The "lessons learned" document outlines the successes and problems with the project. It includes suggestions for improvement for subsequent, similar projects. Although releasing project resources and archiving project documentation are important aspects of closing a project, these activities are not the primary purpose of the post-implementation review PJ:008

Why is it important for a business to select a target market?

To develop strategies to appeal to customers. Each target market is unique, which means that strategies that are effective with one market might not work with another market. Consequently, businesses need to select the target market before developing specific strategies. For example, if the target market consists of teenagers and young adults, the marketing strategies will be very different than if the target market consists of senior citizens. Once the target market is selected, a business can focus on developing the right strategies. Businesses do not select a target market to organize exclusive sales territories, identify the most appropriate vendors, or prepare detailed promotional reports. SOURCE: MP:005

Which of the following is a reason why managers develop company objectives:

To identify business purpose. One of the reasons why managers develop objectives is to identify the purpose of the business. Determining what a business is and intends to do is the basis for all other company decisions. Therefore, managers establish objectives that the business wants to achieve in order to describe the business's purpose and develop strategies to implement that purpose. Managers do not develop company objectives in order to forecast sales potential, communicate with employees, or solve operating problems. SOURCE: SM:008

Which of the following is an example of a company objective that might be developed by top management:

To maintain or increase market share. This is an overall objective for the entire company that would be set by top management. Deciding to hold weekly sales meetings, do a better job of collecting past-due bills, or to keep the billing up-to-date are specific objectives that might be set by department managers. SOURCE: SM:008

Which of the following is a demographic characteristic that businesses often use to identify market segments:

Type of household. Many businesses identify market segments based on demographics, which are the physical and social characteristics of the population. One demographic characteristic is the type of household. Today, the traditional household of two parents and their children is in decline. The average household size is decreasing and there are many households of only one or two people. Also, households might include unrelated people, one parent and children, blended families, grandparents and grandchildren, etc. By identifying these various market segments, businesses will be able to understand their different wants and needs. Style of living and personality are psychographic characteristics. Location of population is a geographic characteristic. SOURCE: MP:004

One of the purposes of developing a business plan before starting a new business is to

Understand the risks involved. A business plan is the written document that is developed before starting a business. It explains the goals and objectives of the company and how the company intends to achieve those goals. Developing a business plan helps the business to understand the risks it might face, and develop strategies to overcome possible problems. All businesses face some type of risk, and being aware of that often helps the business to be successful. A business plan is not developed to organize the operation, create a safe work environment, or identify a maintenance system. SOURCE: SM:007

A manager who takes credit for the work his/her employees perform without giving credit to the person(s) who actually did the work is acting in a(n) __________ manner.

Unethical. An ethical person always gives credit to the person who actually did the work. When a manager takes credit for the work of his/her people without identifying who really did the work, s/he is not only being unethical but also deceitful, dishonest, untruthful, and eventually not successful because the employees will begin performing poorly if not given recognition for their efforts. Managers should set and demonstrate ethical behavior for the employees they manage. SOURCE: SM:002

Which of the following is the first step of effective managerial planning:

Use a systematic approach to establish objectives. Planning is the management function of deciding what will be done and how it will be accomplished. Deciding what will be done involves establishing objectives or desired outcomes. Using a systematic and organized approach helps the business set SMART objectives—objectives that are specific, measurable, attainable, relevant, and time bound. The business develops strategies and procedures for implementation, establishes criteria to evaluate the strategies, and evaluates the quality of the strategies after it sets the objectives. SOURCE: SM:063

Which of the following is the most effective mission statement:

We create happiness by providing the finest in entertainment for people of all ages, everywhere. A mission statement is a brief summary of what a business owner wants a business to be doing. In essence, a mission statement should define a business's purpose. Effective mission statements focus on customer needs rather than products. They tell who the customers are, what customer needs the business strives to satisfy, and how the business serves the customers. Mission statements should also be specific versus general. If a business's mission statement states that the business wants to generate a profit, it should also explain what the business plans to do to make a profit. SOURCE: SM:009

Which of the following questions should effective managerial planning answer:

What do we want to do? The management function of deciding what will be done and how it will be accomplished is planning. A primary aspect of the planning function is determining the goals or desired outcomes—determining what we want to do. All activities carried out in the other functions of management—organizing, staffing, controlling, and directing—depend on the answer(s) to the question, "What do we want to do?" Deciding who will do the work is a staffing activity. Measuring the success or achievement of goals is a controlling activity. Determining how to monitor the work effort is a directing activity. SOURCE: SM:063

Trevor needs to determine the procedures that he needs to follow for a specific project work activity. Trevor can locate that information in the

Work breakdown structure dictionary. Preparing the work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. The WBS helps the project manager identify tasks and effectively schedule, assign, and monitor complex project activities. The work breakdown structure dictionary is a comprehensive "manual" that outlines project standards, activity procedures, processes, and terminology. Team members can refer to the WBS dictionary if they need to obtain information about how to carry out a task or activity. Project objectives are provided to stakeholders in the statement of work (SOW) document, which may also include information about the costs associated with the project. A network diagram is a graphic representation (e.g., map, chart) of the project's schedule. A production schedule provides general deadlines for various activities and tasks. SOURCE: PJ:006