Professional Documents
Culture Documents
Chương 4a
Chương 4a
Chương 4a
True/False Questions
1. The Europa Hotel survived terrorism by carefully planning security measures for guests,
employees, and the building.
2. Because everything else stems from leading, of the four management functions, leading is
considered the most fundamental.
3. A desired future state that the individual or organization attempts to realize is a goal.
5. The act of determining the organization goals and the means for achieving them is called
goal setting.
6. The mission is the basis for the strategic level of goals and plans, which in turn shapes the
tactical and operational level.
7. The complexity of today’s environment and uncertainty about the future overwhelm many
managers and lead them to focus on long-term goals and plans instead of operational
issues and short-term results.
11. A broad definition of the organization's values, aspiration and reason for being, along
with a recognition of the scope and operations that distinguishes the organization refers to
a Business Strategic Statement.
12. The company's philosophy as well as purpose is often expressed in mission statements.
14. Strategic plans and goals are those that focus on where the organization wants to be in the
future and pertain to the organization as a whole.
15. A broad statement of where the organization wants to be in the future refers to a mission
statement.
16. Operational plans and goals are those that focus on the outcomes that major divisions and
departments must achieve in order for the organization to reach its overall goals.
17. The department manager's tool for daily and weekly operations is called the operational
plan.
19. Specific and measurable goal characteristics apply only to the lower-level goals.
20. Goals are most effective when they are specific, measurable, challenging and linked to
rewards.
21. To be effective, goals must be set for every aspect of employee behavior or organizational
performance.
22. The goals should be easy, for employees to feel motivated, so that they can achieve them
easily which in turn increases their motivation level.
25. An example of a qualitative goal is “the University will provide quality education at a fair
price.”
27. Problems with MBO occur when the company faces rapid change.
29. Standing plans define company responses to specific situations such as natural
emergencies or competitive setbacks.
31. If Kari, manager at Tip Top Roofing, wanted to develop a contingency plan for Tip Top,
she would need to look at factors such as new equipment, the economy, and the company
workers’ compensation cases.
32. The first stage in crisis management planning includes building relationships and
designating crisis management team and spokesperson.
33. The three stages of crisis management are prevention, preparation, and containment.
34. The XYZ Corporation should create a crisis management group that is not cross-
functional, but does work together well under pressure.
35. In the containment stage of crisis management, the organization should “get the awful
truth out” to employees only as soon as possible.
36. Companies should ensure the physical safety and emotional needs of people and/or
animals after implementing a crisis management plan.
37. The CEO of Alex Aquariums, Inc. must do all of the planning for the company because
that is the way to do things in today’s workplace.
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 188
Answer: False Level: 2 Page: 256 Type: A
38. Turtle Terrace should use traditional planning since that is the type of planning every
company uses.
39. In a complex and competitive business world, traditional planning done by a select few is
the only planning that works.
40. A temporary group consisting of line managers responsible for developing strategic plans
is called a centralized planning group.
a. Plan
b. Vision statement
c. Goal
d. Mission statement
e. Idea
a. Goals, plans
b. Plans, goals
c. Planning, organizing
d. Ideas, behaviors
e. Mission, vision
3. A blueprint specifying the resource allocations schedules, and other actions necessary for
attaining goals is referred to as a(n)
4. ______ is the act of determining the organization's goals and the means for achieving
them.
a. Brainstorming
b. Organizing
c. Planning
d. Developing a mission
e. A blueprint
6. The is the basis for the strategic level of goals and plans which in turn shapes
the and level.
a. Middle management
b. Board of directors
c. Consultants
d. Senior management
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 190
e. Lower management
a. Middle management
b. Board of directors
c. Consultants
d. Senior management
e. Lower management
a. Middle management
b. Board of directors
c. Consultants
d. Senior management
e. Lower management
10. Ruby is a first-line supervisor at Rooftop Corporation. She is most concerned with which
level of goals?
a. Operational goals
b. Tactical plans
c. Strategic goals
d. Mission statement
e. Vision
a. Operational goals
b. Tactical plans
c. Strategic goals
d. Mission statement
e. Tactical goals
12. Rosalie is a manager at GMG Gaming. She recently attended a seminar on goal setting.
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 191
She wishes to use goals to provide a sense of direction to her staff. She is using goals as
a. a goals statement.
b. a values statement.
c. an income statement.
d. a mission statement.
e. a competitive-edge statement.
a. Corporate values
b. Company philosophy
c. Company purpose
d. All of the above
e. a and b only
16. "We respect our employees and value their diversity" is an example of a statement you
are most likely to find in the organization's
a. mission.
b. strategic goals.
c. tactical goals.
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 192
d. strategic plans.
e. tactical plans.
17. "We seek to become the premier business school in the west" is an example of a
statement you are most likely to find in the organization's
a. tactical goals.
b. operational goals.
c. mission.
d. tactical plans.
e. operational plans.
18. Which of these refers to a broadly stated definition of the organization's basic business
scope and operations that distinguishes it from similar types of organizations?
a. Mission statement
b. Goal statement
c. Management by objective
d. Goal setting
e. Corporate competitive-value statement
a. strategic goals.
b. tactical goals.
c. operational goals.
d. mission.
e. employee goals.
20. Which of these represent the broad statements of where the organization wants to be in
the future?
a. Operational goals
b. Tactical goals
c. Strategic goals
d. Operational goals
e. Tactical plans
21. The official goals of the organization are best represented by the .
a. strategic goals
b. tactical goals
c. operational goals
d. competitive goals
e. none of the above
a. operational plans.
b. tactical plans.
c. strategic plans.
d. mission plans.
e. tactical goals.
23. Which of these are called the action steps by which an organization intends to attain its
strategic goals?
a. Tactical goals
b. Operational goals
c. Tactical plans
d. Operational plans
e. Strategic plans
24. goals lead to the attainment of goals, which in turn lead to the attainment
of goals.
25. Goals that define the outcomes that major divisions and departments must achieve in
order for the organization to reach its overall goals is called
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 194
a. strategic goals.
b. tactical goals.
c. operational goals.
d. a mission.
e. a plan.
26. Beth is a middle manager at Egg Elements Corporation. She is most likely responsible
for the achievement of goals.
a. operational
b. tactical
c. strategic
d. lower-level
e. top-level
27. ______ represent plans developed at the organization's lower levels that specify action
steps toward achieving operational goals and that support tactical planning activities.
a. Tactical plans
b. Strategic plans
c. Operational plans
d. Supervisory plans
e. Organizational plans
a. Operational goals
b. Tactical goals
c. Strategic goals
d. Operational plans
e. Mission statements
29. Lower-level goals should lead to the achievement of higher-level goals. This is called
30. Which of these is lacking in the goal "profits should be increased in the coming year?"
31. Tabu is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales
for the current quarter. She is unhappy because she knows that the most any salesperson
has sold in one quarter in the past is $150,000. Her goal of $265,000 is probably
32. You are violating which of these goal characteristics when you attempt to create goals for
every aspect of employee behavior?
33. Samuel set goals for each of his employees. Each employee ended up with at least
twenty-five goals. This process violates which of the following criteria for effective
goals?
34. All of the following are characteristics of effective goal setting EXCEPT
35. The ultimate impact of goals depended on the extent to which goal achievement is linked
to
a. rewards.
b. salary increases.
c. promotions.
d. all of the above.
e. b and c only.
a. Setting goals
b. Developing action plans
c. Appraising overall performance
d. Reviewing progress
e. None of the above
a. by the supervisor.
b. by the employee.
c. jointly by the supervisor and the employee.
d. by the accounting department.
e. by top management.
38. Which of these is a method of management whereby managers and employees define
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 197
goals for every department, project, and person and use them to monitor subsequent
performance?
a. Organizational planning
b. Management by objectives
c. Goal setting
d. Mission development
e. Vision development
39. Yard Fence Corporation is currently implementing an MBO program. Managers and
employees jointly set objectives and develop action plans, and goal achievement is
evaluated on an annual basis. Yard Fence is missing which major activity that must occur
in order for MBO to be successful?
40. Frostburg Fireplaces has used MBO for the past year. Top management just finished
evaluating overall performance. The next step in the MBO process should be
a. They are developed to achieve a set of goals that are unlikely to be repeated in the
future.
b. They are used to provide guidance for tasks performed repeatedly within the
organization.
c. They define plans that define company responses to specific situations, such as
emergencies or setbacks.
d. They are most important in the organizations.
e. None of the above.
a. plans that are developed to achieve a set of goals that are unlikely to be repeated
in the future.
b. plans that used to provide guidance for tasks performed repeatedly within the
organization.
c. plans that define company responses to specific situations, such as emergencies or
setbacks.
d. most important in the organizations.
e. none of the above.
a. programs, project
b. policies, project
c. standing plans, program
d. projects, program
e. programs, rule
48. California Creamery requires that all absent employees bring a note from their doctor
when returning to work. This is an example of a
a. single-plan use.
b. standing plan.
c. program.
d. procedure.
e. project.
a. Programs
b. Policies
c. Rules
d. Procedures
e. Project
50. An example of a ______ is a statement supporting the organization's efforts in the area of
sexual harassment.
a. procedure
b. rule
c. policy
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 200
d. single-use plan
e. program
a. procedure.
b. rule.
c. policy.
d. single-use plan.
e. project.
a. They are developed to achieve a set of goals that are unlikely to be repeated in the
future.
b. They are used to provide guidance for tasks performed repeatedly within the
organization.
c. They define company responses to specific situations, such as emergencies or
setbacks.
d. They are most important in the organizations.
e. None of the above.
a. standing plans.
b. rules.
c. scenarios.
d. procedures.
e. operationally tactical plans.
54. The crisis management plan should be a ________ that specifies the actions to be taken,
and by whom, if a crisis occurs.
55. Which of the following is not a step in the containment stage in crisis management?
56. During the ______ stage of his company’s crisis management, Jesse Winkler must ensure
that the stakeholders’ physical and emotional needs are met.
a. prevention
b. preparation
c. containment
d. response
e. all of the above
57. Traditionally, if Tara, CEO of Butterfly Pillows, needed to conduct corporate planning, it
would be performed by all of the following EXCEPT
a. management by objectives.
b. planning task force.
c. decentralized planning staff.
d. centralized planning department.
e. total quality management group.
60. Alabama Airlines has three planning specialists who help division managers develop their
own division plans. Serving as consultants to the divisions, the planning specialists give
advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is
utilizing what approach to the planning function?
61. All of the following are ways in which companies can bring about relentless drive for
progress EXCEPT
62. Baltimore Brewery allows its line managers to take responsibility for strategic planning.
This approach is consistent with which of the following?
Scenario Questions
Scenario-Elaine Eastman
The new program would be focused around MBO concepts. Elaine Eastman had been a manager
at ABCD for ten years and she was not all certain if this new MBO approach was going to fit her
department. She had strong commitment to achieving the company's objectives, but she also
knew her employees well enough to know that some didn't share the same commitment.
Answer: e Type: A
2. Elaine can anticipate and work to prevent the problems of MBO which include
Answer: a Type: A
3. If Elaine dictates or suggests the goals for her employees, she can expect
Answer: b Type: A
4. In the MBO process, after the first step of setting objectives is accomplished, the next
step that Eliane should expect is
Answer: c Type: A
Short-Answer Questions
1. A(n) is a desired future state that the organization attempts to realize.
2. A(n) is a blueprint for goal achievement and specifies the necessary resource
allocations, schedules, tasks, and other actions.
3. The act of determining the organization's goals and the means for achieving them is
referred to as .
5. Operational plans that focus on specific tasks and processes that help to meet tactical and
strategic goals are developed by ______ managers and supervisors.
7. List the five reasons explicit goals and plans are important.
Answer:
Explicit goals and plans can serve the following functions: legitimacy, source of
motivation and commitment, guide to action, rationale for decisions, and standard of
performance.
Page: 239-240
9. A(n) _______ is a broadly stated definition of basic business scope and operations that
distinguishes the organization from others of a similar type.
10. Broad statements describing where the organization wants to be in the future are called
.
11. _______ define the action steps by which an organization intends to attain its strategic
goals.
12. Goals that define the outcomes that major departments must achieve in order for the
organization to reach its overall goals are known as _______ goals.
13. are designed to help execute major strategic plans and to accomplish a
specific part of the company's strategy.
14. The specific results expected from departments, work groups, and individuals are the
goals.
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 206
Answer: operational Page: 243
15. plans are developed at the lower levels of the organization to specify
action steps toward achieving operational goals and to support tactical plans.
Answer:
Goals should be (1) specific and measurable; (2) they should cover key result areas; (3)
they should be challenging but realistic; (4) they should have a defined time period; and
(5) they should be linked to rewards.
Page: 246
17. is a method whereby managers and employees define goals for every
department, project, and person and use them to monitor subsequent performance.
19. List the four major activities that must occur in order for MBO to succeed.
Answer: (1) Set goals, (2) develop action plans, (3) review progress, and (4) appraise
overall performance.
Page: 247-248
20. Managers believe that they are better oriented toward goal achievement when
__________ is used.
21. ______ plans are used to provide guidance for work-related tasks that are performed
repeatedly within the organization.
22. plans are developed to achieve a set of goals that are not likely to be
repeated in the future.
23. _______ are ongoing plans that are used to provide guidance for tasks performed
repeatedly within the organization.
24. Plans that define company responses to specific situations, such as emergencies, setbacks,
or unexpected conditions are called plans.
25. A special type of contingency plan that is used when events are sudden and devastating
and require immediate response is called ________.
Page: 253
Page: 253
27. In the ______ stage of crisis management, the company needs to care for the emotional
and physical safety of its stakeholders.
28. ________ are groups of planning specialists who report directly to the CEO or president
of a company.
29. Although ______ planning approaches are still popular with some organizations, ______
planning are being criticized as inappropriate for today’s fast-paced environment.
30. A group of planning specialists assigned to major departments and divisions to help
managers develop their own strategic plans is called .
31. ______ planning done by a few individuals in a complex and competitive business
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 208
environment no longer works.
Answer:
First, start with a strong mission. Next, set stretch goals. Third, create a culture that
encourages people to experiment and learn. Next, design a new role for planning staff
followed by, make continuous improvement a way of life. Embrace event driven
planning. Finally, total support and commitment to the planning process from top
management.
Page: 257-259
33. A temporary group of line managers who have the responsibility of developing a strategic
plan is known as a(n) _______.
Answer: Start with a strong mission, set stretch goals, create a culture that encourages
learning, embrace event-driven planning, use temporary task forces, and remember that
planning still starts and stops at the top.
Page: 257-259
Essay Questions
1. In what ways do plans and goals benefit an organization?
ANSWER:
Plans and goals benefit the organization in several ways. First they provide legitimacy
and a reason for existence. They also provide a source of motivation and commitment,
provide guides for action and decision making, and they set a standard of performance.
ANSWER:
ANSWER:
Effective goals are precisely defined and allow for measurable performance. They focus
on the key result areas that contribute most to desired performance. They should be
challenging but not unreasonably difficult. Finally, they should specify the time period
that they cover and they should be tied to valued rewards.
4. List and define the four major activities that must occur in order for management by
objectives (MBO) to succeed.
ANSWER:
The first step is setting goals. The setting of goals involves employees at all levels and
should incorporate the principles of effective goal setting. Goals should be jointly
determined by manager and employee, so as to increase the employee's level of
commitment. The second step is developing action plans. These action plans will specify
how the goals are to be achieved. Next, a progress review is important to make sure that
the action plans are working. They may be formal or informal and the action plan should
be changed if necessary. The last step is to determine if the goals have been achieved
within the specified time period. This appraisal should factor into the setting of the next
period's goals, allowing for feedback into the setting of the next set of goals.
5. Define the new planning paradigm and explain the rationale behind it.
ANSWER:
The new planning paradigm has four components. First, start with a strong mission.
Next, stretch goals. Third, create an environment that encourages people to experiment
and learn. Next, design a new role for planning staff. Finally, make continuous
Chapter Seven * Managerial Planning and Goal Setting
Test Bank * Page 210
improvement a way of life with total support and commitment of top management for the
planning process. This paradigm is based upon the principle of decentralization. It
strives to involve workers at every level of the company. Due to the volatility of the
business environment, dynamic, timely plans are needed by today's organizations. The
complexity of the problems and challenges facing today's organizations mandates that all
employees, with their individual perspectives and talents, be involved.