Management 1st Edition Neck Test Bank

Management 1st Edition Neck Test
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Course Title: Neck, Lattimer, Houghton - Management: A Balanced Approach to the
21st Century
Chapter Number 08: Setting Goals
Multiple Choice
1. Which of the following is NOT a characteristic of a S.M.A.R.T. goal?

a. Specific
b. Measurable
c. Achievable
d. Realistic
e. Time-bound
Answer: d
Page: 204
Level: Easy
Learning Objective 1: Describe the primary goals of an organization
Section Reference: Setting goals that make a difference
2. Who is credited with first developing the theory of Scientific Management?

a. Henry Ford
b. Locke and Latham
c. Frederick W. Taylor
d. Frank Gilbreth
Answer: c
Page: 202
Level: Easy
3. Which of the following companies does the chapter use as an example for goals
going wrong?
a. Enron
b. Sears
c. Ford
d. All of the above
Answer: d
Page: 207
Level: Medium
Section Reference: When goals go wrong
4. How did Sears’ goals “go wrong” in the early 1990s?

a. Staff was uncooperative
b. Goals were unspecific
c. Goals were unattainable
d. Staff was overcharging customers
Answer: d
Page: 207
Level: Medium
5. Which of the following is NOT one of the pitfalls that Locke and Latham
attribute to goal failure?
a. Long-term thinking
b. Increases in stress
c. Feelings of failure
d. Dishonesty/cheating
e. All of the above
Answer: a
Page: 207
Level: Easy
6. What is the theory that holds that people who concentrate on the vision of the
goal and what it would mean to achieve the end result help to give clarity to the
process?
a. Goal commitment
b. Systems theory
c. Positive Psychology
d. Management by Objectives
Answer: b
Page: 208
Level: Medium
7. ‘Goals must be clear, specific, unambiguous, measureable, and set with a

specific timeframe for completion’ falls under which principle of goal setting?
a. Commitment
b. Task Complexity
c. Clarity
d. Challenge
Answer: c
Page: 209
Level: Medium
Learning Objective 2: Explain the principles and different types of goal plans in an
organization.
Section Reference: Principles of Goal Setting
8. Which of the following is NOT one of Latham and Locke’s main principles of
goal setting?
a. Feedback
b. Challenge
c. Clarity
d. Involvement
Answer: d
Page: 209
Level: Easy
organization.
9. Managers often use what words when it comes to goal setting?

a. “Buy in”
b. “All in”
c. “Difficult yet attainable”
d. None of the above
Answer: a
Page: 210
Level: Medium
organization.
10. A plan that interprets an organizational strategy into a market or community-

based opportunity for division or departmental managers is a:
a. Tactical plan
b. Long-term plan
c. Business plan
d. Standing plan
Answer: a
Page: 212
Level: Easy
organization.
Section Reference: Goal Plan Types and Components
11. Which of the following is a standing plan that describes how an organization
and its members should respond to recurring or anticipated situations?
a. Rule
b. Policy
c. Regulation
d. Procedure
Answer: b
Page: 211
Level: Easy
organization.
12. A standing plan that provides specific steps to be taken as part of a recurring
process or in response to a recurring situation is:
a. Rule
b. Policy
c. Regulation
d. Procedure
Answer: d
Page: 211
Level: Easy
organization.
13. An outline of procedures to follow for reporting internal issues within a

company would be found in which plan?
a. Standing plan
b. Business plan
c. Operational plan
d. Tactical plan
Answer: a
Page: 211
Level: Medium
organization.
14. Inventory management would be an example of __________ planning.

a. business
b. tactical
c. operational
d. options-based
Answer: c
Page: 212
Level: Difficult
organization.
15. A(n) __________ plan provides focus but does not include specific objectives
or allocate responsibility.
a. operational
b. directional
c. action
d. business
Answer: b
Page: 212
Level: Medium
organization.
16. _______________ planning keeps organizations flexible by making small,

simultaneous investments in many alternative plans.
a. Business
b. Tactical
c. Operational
d. Options-based
Answer: d
Page: 213
Level: Medium
organization.
17. President Kennedy’s announcement to put the first human on the moon within
10 years was an example of what type of goal?
a. Short-term goal
b. Proximal goal
c. Stretch goal
d. None of the above
Answer: c
Page: 214
Level: Medium
Learning Objective 3: Outline different types of goals and the characteristics that
make them effective.
Section Reference: Types of Goals

18. Runners training for a marathon usually use what type of strategy?
a. Single-use plan
b. Performance dashboard
c. Key performance indicators
d. Means-end chain
Answer: d
Page: 215
Level: Medium
19. The manufacturer of sandals could set a(n) ____ goal to increase revenues by 8
percent over the next five years and a(n) ____ goal to increase sales next May
in the Myrtle Beach area by 3 percent.
a. Proximal, distal
b. Stretch, proximal
c. Proximal, stretch
d. Distal, proximal
Answer: d
Page: 214
Level: Medium

20. A ‘BHAG’ is an acronym for:
a. Bold Huge Authentic Goal
b. Big Hairy Audacious Goal
c. Brave Heroic Adventurous Goal
d. Brash Hard Aggressive Goal
Answer: b
Page: 216
Level: Easy
Learning Objective 4: Illustrate how managers secure team-level commitment to

goals.
Section Reference: Team Commitment
21. Which management expert(s) coined the term ‘BHAG’?

a. Latham and Locke
b. Ryan Hall
c. Jim Collins
d. John Johnson
Answer: c
Page: 216
Level: Medium
goals.
22. The technique in which management and employees agree to specific goals
that are then used to evaluate individual performance is known as:
a. KPI
b. MBO
c. BHAG
d. SMART
Answer: b
Page: 217
Level: Easy

goals.
23. When organizations need the help of specific actions, people, and/or resources,
they will create a(n) __________ plan.
a. standing
b. tactical
c. options-based
d. action
Answer: d
Page: 218
Level: Easy
Learning Objective 5: Construct action plans consistent with goals to achieve

individual-level performance
Section Reference: Action plans
24. Which of the following nonfinancial areas is NOT benchmarked on a balanced

scorecard?
a. The company’s relationship with its customers
b. The company’s future goal setting
c. The company’s key internal processes
d. The company’s learning and growth
Answer: b
Page: 219
Level: Medium
Learning Objective 6: Describe how managers track progress of goal plans through
performance dashboards.
Section Reference: Performance Dashboards
25. What researcher(s) developed the performance model that has provided
managers and information systems designers with a balanced approach to
developing performance dashboards?
a. Frederick Taylor
b. Latham and Locke
c. Jim Collins
d. Kaplan and Norton
Answer: d
Page: 219
Level: Medium
26. A visual representation of an organization’s strategies and goals is a(n)

_________________.
a. MBO
b. performance dashboard
c. key performance indicator
d. strategy
Answer: b
Page: 219
Level: Easy
27. _________________ are measurements that managers identify as vital to the

company’s performance.
a. MBOs
b. Performance dashboards
c. Key performance indicators
d. Goals
Answer: c
Page: 219
Level: Easy
Question Type: True/False
28. Goals must be set within a strategic framework consisting of mission, vision,
and values.
Answer: True
Page: 202
Level: Easy

29. The theory of goal setting is arguably one of the oldest, most researched topics
in management.
Answer: False
Page: 202
Level: Medium
30. Goal setting is a people business.
Answer: True
Page: 207
Level: Medium
31. If a goal is several months or even a year in the future, milestones must be set
along the way to assess performance and allow room for feedback
Answer: True
Page: 204
Level: Easy
Learning Objective 1: Describe the primary goals of an organization.
Section Reference: S.M.A.R.T. goals
32. “I want to write a thesis about the impact of goal setting on sports that will be
100 pages long and will be completed within three months. Every weekday, I
will write at least 3 pages per day until the thesis is finished” is an example of a
clear, specific goal.
Answer: True
Page: 209
Level: Easy
organization.
33. When setting complex tasks, managers must account for the difficulty of the
goal by ensuring that workers are given enough time to complete the task.
Answer: True
Page: 211
Level: Medium
organization.

34. Tactical plans are usually single-use, while operational plans are usually short-
term.
Answer: False
Page: 212
Level: Medium
organization.
35. Directional plans provide focus and include specific objectives and
responsibilities.
Answer: False
Page: 212
Level: Easy
organization.
36. Managers set proximal goals, or short-term goals, that increase individuals'
ability to reach distal goals by providing motivation and feedback.
Answer: True
Page: 214
Level: Easy
37. Proximal goals are an integrated series of goals in which the accomplishment
of lower-level goals contributes to the achievement of higher-level goals.
Answer: False
Page: 215
Level: Easy
38. An MBO technique is appropriate to use when management needs to make a

team aware of the goal plans and types of goals that have been set in order for
the initiatives to be fulfilled.
Answer: True
Page: 217
Level: Medium

goals.
39. An example of a BHAG would be, “The Dolphin Resort is a place where
families relax and build lifelong traditions and memories. We pledge to provide
our family guests with the best value for location and service on the East
Coast.”
Answer: False
Page: 216
Level: Medium

goals.
40. An action plan is the specific action, people, and resources needed to
accomplish a goal.
Answer: True
Page: 218
Level: Easy
Learning Objective 5: Construct action plans consistent with goals to achieve
individual-level performance
Section Reference: Action plans
41. Performance dashboards are measurements that managers identify as vital to

the company’s performance with regards to financials, internal processes,
customers, and learning/growth.
Answer: False
Page: 218
Level: Medium
42. The “Balanced Scorecard” model has provided managers and information
system designers with a balanced approach to developing performance
dashboards.
Answer: True
Page: 219
Level: Medium
Question Type: Fill-in-the-Blank
43. Setting _________ is an essential part of achieving personal and professional

success.
Answer: goals
Page: 202
Level: Easy

44. The five characteristics of S.M.A.R.T. goals are ___________, ___________,

_____________, _____________, and ____________.
Answer: specific, measurable, achievable, relevant, time-bound
Page: 204
Level: Medium
45. The five main principles of goal setting in order to motivate workers are
__________, __________, ____________, ___________, and __________.
Answer: Clarity, Challenge, Commitment, Feedback, Task Complexity
Page: 209
Level: Medium
organization.
46. _________ & ___________ are formal descriptions of how specific actions
must be carried out.
Answer: Rules,regulations
Page: 211
Level: Easy
organization.

47. A plan that covers time periods of a year or more and is used to achieve long-
term goals is a ________________.
Answer: long-term plan
Page: 210
Level: Easy
organization.
48. __________ goals are primary or long-term goals.
Answer: Distal
Page: 214
Level: Easy
49. ________ goals must be set in the right way in order to be successful.
Answer: Stretch
Page: 214
Level: Medium
50. _________________ is the motivation and determination needed to achieve a

goal.
Answer: Goal commitment
Page: 215
Level: Easy

goals.
51. An organization’s grandest aspiration for the future that differentiates it from
all of its competitors is known as a ___________.
Answer: BHAG
Page: 216
Level: Medium

goals.
52. A(n) _________________ is an example of a performance dashboard.
Answer: balanced scorecard
Page: 219
Level: Easy
53. The four areas that make up a balanced scorecard are ______________,
___________, _____________, and _____________.
Answer: customers, financial, internal processes, learning & growth
Page: 219
Level: Easy
54. The process of connecting a mission and vision into a management practice is
called a ___________.
Answer: strategy
Page: 219
Level: Medium
Question Type: Matching
a. Guides the day-to-day production or delivery of an organization’s goods and

services, and enacts a functional strategy
b. Used to educate employees as to where the organization is going and what it
hopes to achieve in the future
c. Designed for repeated use in response to commonly occurring events
d. Usually short-term plans, which are plans that cover one year or less and are
used to achieve short-term goals
e. Interprets an organizational strategy into a market- or community-based
opportunity for division or departmental managers
f. An essential way of committing department, resources, and individuals to a
future goal
55. Business Plan
Answer: e
Page: 211
Level: Easy
organization
56. Standing Plan
Answer: c
Page: 211
Level: Easy
organization
57. Goal Plan

Answer: f
Page: 212
Level: Easy
organization
58. Directional Plan
Answer: b
Page: 212
Level: Medium
organization
59. Tactical Plan
Answer: d
Page: 212
Level: Medium
organization
60. Operational Plan
Answer: a
Page: 212
Level: Easy
organization
Question Type: Essay
61. List and describe the components of S.M.A.R.T. goals.
Specific: Goals need to be specific in order to help you focus on the task at hand.
Clearly defined goals help you to decide what to do, why it is important, how it is
going to be achieved, and what the result should be.
Measurable: How can you measure a goal if you don’t manage it? If you don’t set
milestones along the way, you will never know if employees are fulfilling their
responsibilities in working toward achieving the goal. Conversely, the team will
experience uncertainty about their own performance and lose motivation if they have
no way of knowing the extent of their progress.
Achievable: Goals must be realistic and attainable. There is no point to setting goals
that are too far out of reach or too high above standard performance. A good manager
will assess the capability of his employees and set goals that cater to their skills, and
perhaps even stretch them a bit, in order to accomplish the objective.
Relevant: Goals must be in line with the company’s vision, mission, and values in
order to succeed. Employees need to be made aware of their part in contributing to the
overall strategy and objectives of the organization. A relevant goal will encourage
employees to work toward the goal but not push themselves to the breaking point.
Time-bound: The crucial question to consider here is: When? Setting a time frame
for the goal gives employees a firm target to work toward. If the goal is several
months or even a year in the future, milestones must be set along the way to assess
performance and allow room for feedback. Goals that are not “set in stone” tend to be
neglected, as the team has no sense of urgency to complete them.
Page: 204
Level: Medium
62. List and discuss the five main principles of goal setting according to Locke and
Latham.
Clarity: Goals must be clear, specific, unambiguous, measurable, and set with a
specific time frame for completion.
Challenge: As researchers have discovered through a number of experiments, people

are more motivated by challenging goals.
Commitment: Managers often use the term buy-in when it comes to goal setting. This
means that in order for goals to be achieved, the manager must have full commitment,
or buy-in, from everyone on the team. Typically, people will be more committed to a
goal if the task itself is important to them, as well as the outcome, and if they truly
believe they can achieve the goal.
Feedback: “So how are we doing?” is a commonly asked question by team members
when it comes to measuring goal performance. In addition to planning goals,
managers must include feedback, which can be a motivator in and of itself. Through
progress reports, managers can clarify expectations, assess the process, adjust it if
necessary, and recognize and award good work. As a result, team members will have
more incentive to achieve the goals set for them.
Task Complexity: When setting complex tasks, managers must account for the
difficulty of the goal by ensuring that workers are given enough time to complete the
task or, if they lack the necessary skills, provide them with the appropriate resources
to show them how to build a strategy to complete the goal.
Page: 209-211
Level: Medium
organization.

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Management 1st Edition Neck Test

Chapter Number 08: Setting Goals

1. Which of the following is NOT a characteristic of a S.M.A.R.T. goal?

Learning Objective 1: Describe the primary goals of an organization

Section Reference: Setting goals that make a difference

2. Who is credited with first developing the theory of Scientific Management?

Learning Objective 1: Describe the primary goals of an organization

Section Reference: Setting goals that make a difference

Learning Objective 1: Describe the primary goals of an organization

Section Reference: When goals go wrong

4. How did Sears’ goals “go wrong” in the early 1990s?

Learning Objective 1: Describe the primary goals of an organization

Section Reference: When goals go wrong

Learning Objective 1: Describe the primary goals of an organization

Section Reference: When goals go wrong

Learning Objective 1: Describe the primary goals of an organization

Section Reference: Setting goals that make a difference

7. ‘Goals must be clear, specific, unambiguous, measureable, and set with a

Section Reference: Principles of Goal Setting

Section Reference: Principles of Goal Setting

9. Managers often use what words when it comes to goal setting?

Section Reference: Principles of Goal Setting

10. A plan that interprets an organizational strategy into a market or community-

Section Reference: Goal Plan Types and Components

Section Reference: Goal Plan Types and Components

Section Reference: Goal Plan Types and Components

13. An outline of procedures to follow for reporting internal issues within a

Section Reference: Goal Plan Types and Components

14. Inventory management would be an example of __________ planning.

Section Reference: Goal Plan Types and Components

Section Reference: Goal Plan Types and Components

16. _______________ planning keeps organizations flexible by making small,

Section Reference: Goal Plan Types and Components

Section Reference: Types of Goals

Section Reference: Types of Goals

Section Reference: Types of Goals

Learning Objective 4: Illustrate how managers secure team-level commitment to

Section Reference: Team Commitment

21. Which management expert(s) coined the term ‘BHAG’?

Section Reference: Team Commitment

Learning Objective 4: Illustrate how managers secure team-level commitment to

Section Reference: Team Commitment

Learning Objective 5: Construct action plans consistent with goals to achieve

Section Reference: Action plans

24. Which of the following nonfinancial areas is NOT benchmarked on a balanced

Section Reference: Performance Dashboards

Section Reference: Performance Dashboards

26. A visual representation of an organization’s strategies and goals is a(n)

Section Reference: Performance Dashboards

27. _________________ are measurements that managers identify as vital to the

Section Reference: Performance Dashboards

Question Type: True/False

Learning Objective 1: Describe the primary goals of an organization

Section Reference: Setting goals that make a difference

Learning Objective 1: Describe the primary goals of an organization

Section Reference: Setting goals that make a difference

30. Goal setting is a people business.

Learning Objective 1: Describe the primary goals of an organization

Section Reference: Setting goals that make a difference

Learning Objective 1: Describe the primary goals of an organization.

Section Reference: S.M.A.R.T. goals

Section Reference: Principles of Goal Setting

Section Reference: Principles of Goal Setting

44. The five characteristics of S.M.A.R.T. goals are _, _,