d.
Mission development
e.
Vision development
39. High 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. High
Fence is missing which major activity that must occur in order for MBO to be successful?
a.
Developing a mission statement
b.
Developing tactical goals
c.
Reviewing progress
d.
Reviewing operational plans
e.
None of these
40. In using MBO, objectives should be set by the:
a.
supervisor.
b.
employee.
c.
supervisor and the employee jointly.
d.
accounting department.
e.
top management.
41. 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.
to develop new action plans.
b.
to develop new objectives based on the review of last year’s performance.
c.
to begin a new MBO “cycle”, using the same objectives as last year.
d.
to wait several months to allow information to be digested.
e.
none of these.
42. _____ is the final step in the MBO process.
a.
Appraise overall performance
b.
Develop an action plan
c.
Review progress
d.
Set goals
e.
Conduct periodic checkups
43. Which of the following is NOT one of the benefits of MBO?
a.
Performance can be improved at all company levels.
b.
Employees are motivated.
c.
Efforts are focused on activities that will lead to goal attainment.
d.
Operational goals are able to displace strategic goals.
e.
Individual and department goals are aligned with company goals.
44. Which of these is true about single-use plans?
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 these
45. Standing plans:
a.
are developed to achieve a set of goals that are unlikely to be repeated in the future.
b.
are used to provide guidance for tasks performed repeatedly within the organization.
c.
define company responses to specific situations, such as emergencies or setbacks.
d.
are the most important in the organizations.
e.
are none of these.
46. A project is an example of a:
a.
policy.
b.
standing plan.
c.
procedure.
d.
single-use plan.
e.
rule.
47. _____ define boundaries within which to make a decision.
a.
Programs
b.
Policies
c.
Rules
d.
Procedures
e.
Projects
48. An example of a _____ is a statement supporting the organization’s efforts in the area of sexual
harassment.
a.
procedure
b.
rule
c.
policy
d.
single-use plan
e.
program
49. “No food and/or drinks in the classroom” is an example of a _____.
a.
procedure
b.
rule
c.
policy
d.
single-use plan
e.
project
50. Which of the following is a commonly-cited limitation of planning?
a.
Plans limit employee motivation and commitment.
b.
Plans make resource allocation more difficult.
c.
Plans make it more difficult to measure standards of performance.
d.
Plans boost intuition and creativity.
e.
Plans can create a false sense of security.
51. One major limitation of goals and plans is:
a.
goals and plans guide resource allocation.
b.
goals and plans may cause rigidity in a turbulent environment.
c.
goals and plans decrease employee motivation.
d.
goals and plans decrease employee commitment.
e.
none of the above.
52. Which of these are true about contingency plans?
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 these
53. _____ involves looking at trends and discontinuities and imagining possible alternative future to build
a framework within which unexpected future events can be managed.
a.
Scenario building
b.
Crisis planning
c.
Contingency planning
d.
Trend management
e.
Caution planning
54. Jerrica, a finance manager at LRV industries, is asked by her boss to develop a plan in the event that
company sales drop by 20 percent or more. This type of plan is known as a _____.
a.
contingency plan
b.
financial plan
c.
crisis plan
d.
consumer protection plan
e.
environmental plan
55. _____ enables firms to cope with unexpected events that are so sudden and devastating that they have
the potential to destroy the organization if managers aren’t prepared with a quick and appropriate
response.
a.
Incident planning
b.
Contingency planning
c.
Strategic planning
d.
Crisis planning
e.
Emergency planning
56. The two stages of crisis planning include:
a.
prevention and control.
b.
planning and leading.
c.
prevention and preparation.
d.
preparation and control.
e.
leading and organizing.
57. The crisis management plan should be a _____ that specifies the actions to be taken, and by whom, if a
crisis occurs.
a.
vague, verbal plan
b.
detailed, verbal plan
c.
long, difficult to read plan
d.
vague, written plan
e.
detailed, written plan
58. Which of the following is NOT involved in the stages of crisis planning?
a.
Setting up effective communication systems
b.
Creating detailed crisis management plans
c.
Investigating all stakeholders
d.
Designating a crisis management team and spokesperson
e.
Building relationships
59. The traditional approach to corporate planning was to:
a.
have a decentralized planning staff.
b.
have a centralized planning department.
c.
set up a planning task force.
d.
set up planning committees.
e.
use TQM approach.
60. Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company
has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis?
a.
Building relationships with neighboring businesses
b.
Detecting signals from the natural environment
c.
Polling employees on the likelihood of an environmental disaster
d.
Designating a crisis management team in the event of an environmental disaster
e.
Dismantling the company’s ties to the external media
61. 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?
a.
Centralized planning department
b.
Decentralized planning staff
c.
Planning task force
d.
Centralized planning committee
e.
TQM
62. _____ are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that
they fire up employees and engender excellence.
a.
Operational goals
b.
Stretch goals
c.
Strategic goals
d.
Tactical goals
e.
Bottom-up goals
63. Sam is in charge of strategy control at Lanser’s, a large clothing retailer. He regularly tracks sales in
relation to targets, number of products on back order, and percentage of customer service calls
resolved within specified time periods. These metrics are known as:
a.
financial indicators.
b.
tactical goals.
c.
performance dashboards.
d.
balanced scoreboards.
e.
operational standards.
64. A(n) _____ is a cross-functional group of managers and employees who work together to gain a deep
understanding of a specific business issues, with the aim of presenting insights related to that issue.
a.
espionage team
b.
functional team
c.
task force
d.
project team
e.
intelligence team
65. At Save-tech, Sophia, director of marketing, is a member of a cross-functional group of managers and
employees. The purpose of the group is to gain a deep understanding company’s competitive
environment and periodically present these findings to top management. Sophia is involved in what
type of team?
a.
Intelligence team
b.
Functional team
c.
Task force
d.
Project team
e.
Espionage team
CASE
Scenario – Katelynn Kareem
Managers at Alba Corp. just announced that the new management program would be focused around
MBO concepts. Katelynn Kareem had been a manager at Alba Corp. for ten years and she was not
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.
1. In the MBO process, after the first step of setting objectives is accomplished, the next step that
Katelynn should expect is:
a.
reviewing progress toward company goals.
b.
appraising overall performance.
c.
developing action plans.
d.
having a company party to celebrate.
e.
none of these.
2. What can Katelynn expect to be doing during the final step of the MBO process?
a.
Setting goals
b.
Reviewing progress
c.
Appraising overall performance
d.
Defining mission
e.
Developing action plans
3. Katelynn can anticipate enjoying the advantages of MBO which include:
a.
increased orientation toward goal achievement.
b.
performance can improve at all company levels.
c.
employees are more motivated.
d.
increased orientation toward goal achievement and motivation.
e.
all of these.
COMPLETION
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
_____.
4. _____ and plans are the responsibilities of middle managers.
5. Operational plans that focus on specific tasks and processes that help to meet tactical and strategic
goals are developed by _____ managers and supervisors.
6. _____ describes the organization’s reason for existence.
7. A(n) _____ is a broadly stated definition of basic business scope and operations that distinguishes the
organization from others of a similar type.
8. Broad statements describing where the organization wants to be in the future are called _____.
9. _____ define the action steps by which an organization intends to attain its strategic goals.
10. Goals that define the outcomes that major departments must achieve in order for the organization to
reach its overall goals are known as _____ goals.
11. _____ are designed to help execute major strategic plans and to accomplish a specific part of the
company’s strategy.
12. The specific results expected from departments, work groups, and individuals are the _____ goals.
13. _____ plans are developed at the lower levels of the organization to specify action steps toward
achieving operational goals and to support tactical plans.
14. _____ is a method whereby managers and employees define goals for every department, project, and
person and use them to monitor subsequent performance.
15. _____ plans are used to provide guidance for work-related tasks that are performed repeatedly within
the organization.
16. _____ plans are developed to achieve a set of goals that are not likely to be repeated in the future.
17. Plans that define company responses to specific situations, such as emergencies, setbacks, or
unexpected conditions are called _____ plans.
18. A special type of contingency plan that is used when events are sudden and devastating and require
immediate response is called _____.
19. A group of planning specialists assigned to major departments and divisions to help managers develop
their own strategic plans is called _____.
SHORT ANSWER
1. List the five characteristics of effective goals.
2. List the four major activities that must occur in order for MBO to succeed.
3. List four reasons why planning generally positively affects a company’s performance?
4. What are the two stages of crisis management?
ESSAY
1. Compare the four levels of goals and plans.
ANS:
2. Briefly define the characteristics of an effective goal.
3. List and define the four major activities that must occur in order for management by objectives (MBO)
to succeed.
4. In what ways do plans and goals benefit an organization?
5. List three innovative approaches to planning.
