41.
Setting target dates or deadline dates for when goals are to be attained is not always
needed.
42.
When utilizing MBO, the manager and employee jointly set objectives for the employee,
the manager develops action plans, the manager and employee periodically review the
employee’s performance, and the manager makes performance appraisals and rewards
the employee according to the results.
43.
With the first step in management by objectives, it is necessary to have back-and-forth
negotiation between managers and their subordinates to make the objectives practicable.
44.
MBO works the best if the objectives from upper and middle management are given to
subordinates by their manager, and the supervisor simply says, “Here are the objectives I
want you to meet.”
45.
There are four types of objectives in MBO: improvement objectives, personal development
objectives, diversity objectives, and maintenance objectives.
46.
When an employee fails to meet MBO objectives, to reduce embarrassment for that
subordinate, the manager should give the employee more time to improve; however, taking
strong measures such as demotion is typically incorrect.
47.
Don, a CEO, has decided to utilize MBO in his retail outlets across the Midwest. He made
this decision because of its emphasis on converting general objectives into broad ones for
the upper management of an organization.
48.
Greg, owner of Comfortable Home Heating and Air, has been having problems with
employee morale. After investigating, he found that some of his department managers
were using management by objectives, but the accounting and sales managers were not
utilizing MBO in their departments. For the MBO program to be successful, it has to be put
in place throughout the entire organization.
49.
MBO works by the upper movement of goals through the organization; that is, top
managers set general organizational objectives based on what individual employees and
then departments voice as their objectives.
50.
In a management meeting, Paula, the CEO of ABC Industries, mentioned that deadlines
are a great motivator. She believes this because the entire purpose of making a plan and
setting goals is to deliver to a customer specified results within a specified period of time.
Therefore, Paula can claim that deadlines are a great motivator.
51.
When top-management commitment to MBO is high, the average gain in productivity is
above average, and when upper management commitment is low, the average gain in
productivity is low.
52.
The planning/control cycle loop exists for each level of planning—strategic, tactical and
operational.
53.
The planning/control cycle has two planning steps: make the plan and carry out the plan.
54.
The planning/control cycle has two control steps: control the direction by comparing
results with the plan and control the direction by increasing organization diversity and
synergy.
55.
In the planning/control cycle, managers take corrective action by correcting deviations in
the plan being carried out or by improving future plans.
56.
Mr. Smith, CEO of an auto dealership, has been working on the two planning steps of the
planning/control cycle with his managers. To do this, Mr. Smith and his managers need to
make their plan and then carry out the plan.
Multiple Choice Questions
57.
According to Richard Branson, founder of Virgin Atlantic airlines, you can set a really hard
goal, such as increasing your class study time 50%, which is “stretching yourself beyond
what your mind might think is safe,” also known as a(n) ____.
58.
Research suggests that when writing out and achieving a person’s biggest goals, it is
important to ____.
59.
While sitting at her desk, Ann is setting goals and deciding how to achieve them. She is
___.
60.
With increasing competition in the restaurant business, Sal, owner of Mom’s Pizza, is
dealing with growing uncertainty. He is meeting with his managers to develop a future
course of action to meet company goals. This process is known as _____.
61.
The primary reason for an organization to adopt planning and strategic management is to
_____.
62.
Helping people focus on critical problems, choices, and opportunities is possible through
_____.
63.
The profits of ABC Grocery have dropped significantly over the last several months. After
investigating, the owner realizes that the store is moving in the wrong direction in many
departments, so there needs to be greater focus by management. This is an example of
how an organization can progress in the wrong direction with ____.
64.
Deon is opening a car wash, and he has approached SCORE, a SBA organization that
assists small-business owners in setting up their companies. As a new business owner,
the SCORE counselors would probably advise Deon to _____.
65.
The need the firm will fill, the operations of the business, its components and functions, as
well as the expected revenues and expenses is expressed in the organization’s ____.
66.
Prior to opening her new restaurant, Nia is determining what items to offer on the menu,
the anticipated profits and expenses, the tasks of various employees, and how those jobs
will be handled. Nia is writing her ____.
67.
Abe and April are considering starting a family business, so their banker advised them to
write a business plan because it helps an entrepreneur ____.
68.
David is starting a karate school, and he has been working with Mr. Smith, a business
counselor with the SBA. Mr. Smith told David that the first three steps to planning his
organization are (in the correct order) ___.