Question 1

The last step in the planning process focuses on developing plans to pursue the chosen alternative for reaching organizational objectives.

Accepted Answer

A) True 
 B)False  False

Question 2

What is planning? What are the advantages and potential disadvantages of planning?

Accepted Answer

Planning is the process of determining how the organization can get where it wants to go, and what it will do to accomplish its objectives.
A vigorous planning program produces many benefits. First, it helps managers to be future-oriented. They are forced to look beyond their everyday problems to project what situations may confront them in the future. Second, a sound planning program enhances decision coordination. Third, planning emphasizes organizational objectives. Because organizational objectives are the starting points for planning, managers are continually reminded of exactly what their organization is trying to accomplish. Planning does not eliminate risk, but it does help managers identify and deal with organizational problems before they cause havoc in a business.
If the planning function is not well executed, planning can have several disadvantages for the organization. For example, an overemphasized planning program can take up too much managerial time. Managers must strike an appropriate balance between time spent on planning and time spent on organizing, influencing, and controlling. If they don't, some activities that are extremely important to the success of the organization may be neglected. Overall, the advantages of planning definitely outweigh the disadvantages. Usually, the disadvantages of planning result from using the planning function incorrectly.

Question 3

How should organization planners be evaluated?

Accepted Answer

Planners, like all other organization members, should be evaluated according to the contribution they make toward helping the organization achieve its objectives. The quality and appropriateness of the planning system and the plans that the planner develops for the organization are the primary considerations in this evaluation.
Although the assessment of planners is necessarily somewhat subjective, several objective indicators can be used, such as the use of appropriate techniques and the degree of objectivity displayed by the planner. However, management's evaluation of planners should never be completely objective. Important subjective considerations include how well planners get along with key members of the organization, the amount of organizational loyalty they display, and their perceived potential.

Question 4

The condition that exists when organizational subobjectives conflict or are not directly aimed at accomplishing the overall organizational objectives is ________.

Accepted Answer

A)  diminution 
B)  deduction 
C)  aggregation 
D)  suboptimization 
E)  minimization 
A)  diminution 
B)  deduction 
C)  aggregation 
D)  suboptimization 
E)  minimization

Question 5

Which of the following is an advantage of planning?

Accepted Answer

A)  eliminates all risks 
B)  enhances decision coordination 
C)  emphasizes immediate goals 
D)  suboptimizes the use of resources 
E)  promotes individual performance 
A)  eliminates all risks 
B)  enhances decision coordination 
C)  emphasizes immediate goals 
D)  suboptimizes the use of resources 
E)  promotes individual performance

Question 6

Premises are the assumptions upon which alternatives to reaching organizational objectives are based.

Accepted Answer

A) True 
 B)False

Question 7

A firm's ________ refer(s) to what it exists to do, given a particular group of customers and customer needs.

Accepted Answer

A)  operational plan 
B)  unique selling proposition 
C)  organizational purpose 
D)  long-term goal 
E)  vision statement 
A)  operational plan 
B)  unique selling proposition 
C)  organizational purpose 
D)  long-term goal 
E)  vision statement

Question 8

Which of the following is NOT one of the key areas in which Drucker advised managers to set management system objectives?

Accepted Answer

A)  market standing 
B)  profitability 
C)  government regulation 
D)  innovation 
E)  public responsibility 
A)  market standing 
B)  profitability 
C)  government regulation 
D)  innovation 
E)  public responsibility

Question 9

According to Malik, a planner is doing a reputable job if plans ________.

Accepted Answer

A)  focus mostly on long-term recommendations 
B)  avoid describing the attainment of objectives in operational terms 
C)  emphasize the internal environment, as opposed to the external environment 
D)  are the result of all elements of the management team working together 
E)  focus on present opportunities rather than potential opportunities that may not materialize 
A)  focus mostly on long-term recommendations 
B)  avoid describing the attainment of objectives in operational terms 
C)  emphasize the internal environment, as opposed to the external environment 
D)  are the result of all elements of the management team working together 
E)  focus on present opportunities rather than potential opportunities that may not materialize

Question 10

In a management by objectives program (MBO), why must managers be careful not to conclude automatically that employees have produced at an acceptable level simply because they have reached their objectives?

Accepted Answer

A)  The objectives may have been set too low in the first place, and managers may have failed to recognize it at the time. 
B)  The MBO framework is naturally flawed and requires managers to use subjective criteria to evaluate performance. 
C)  The employees may have reached their objectives by means that the organization had not considered. 
D)  The MBO approach measures perfomance based merely on goal attainment and not on the level of effort expended. 
E)  The objectives set for employees may not be aligned with the overall organizational objectives. 
A)  The objectives may have been set too low in the first place, and managers may have failed to recognize it at the time. 
B)  The MBO framework is naturally flawed and requires managers to use subjective criteria to evaluate performance. 
C)  The employees may have reached their objectives by means that the organization had not considered. 
D)  The MBO approach measures perfomance based merely on goal attainment and not on the level of effort expended. 
E)  The objectives set for employees may not be aligned with the overall organizational objectives.

Question 11

The CEO of an organization inaugurated the company's state-of-the-art research and development facility. According to Mintzberg, the CEO performed the role of a(n) ________ in this situation.

Accepted Answer

A)  monitor 
B)  liaison 
C)  organizational figurehead 
D)  resource allocator 
E)  disturbance handler 
A)  monitor 
B)  liaison 
C)  organizational figurehead 
D)  resource allocator 
E)  disturbance handler

Question 12

According to Mintzberg, when managers establish themselves as links between their organizations and factors outside their organizations, they are performing the role of a ________.

Accepted Answer

A)  resource allocator 
B)  disturbance handler 
C)  monitor 
D)  negotiator 
E)  liaison 
A)  resource allocator 
B)  disturbance handler 
C)  monitor 
D)  negotiator 
E)  liaison

Question 13

Which of the following statements is true regarding the primary qualifications of organizational planners?

Accepted Answer

A)  They can be good communicators, though such a qualification is not mandatory. 
B)  They should be able to work independently, as planning is mostly a solitary task. 
C)  They should have a theoretical understanding of planning rather than practical experience. 
D)  They should be aware of the social, political, technical, and economic trends that can affect the firm. 
E)  They should have a narrower, more focused understanding of the organization. 
A)  They can be good communicators, though such a qualification is not mandatory. 
B)  They should be able to work independently, as planning is mostly a solitary task. 
C)  They should have a theoretical understanding of planning rather than practical experience. 
D)  They should be aware of the social, political, technical, and economic trends that can affect the firm. 
E)  They should have a narrower, more focused understanding of the organization.

Question 14

Which of the following is an accurate statement in reference to management by objectives (MBO)?

Accepted Answer

A)  Rewards are given to workers independent from their objective attainment. 
B)  Managers and workers meet to agree on worker objectives. 
C)  Managers and workers do not meet to monitor progress. 
D)  Managers set objectives for workers without their input. 
E)  Rewards are given on the basis of the manager's effort . 
A)  Rewards are given to workers independent from their objective attainment. 
B)  Managers and workers meet to agree on worker objectives. 
C)  Managers and workers do not meet to monitor progress. 
D)  Managers set objectives for workers without their input. 
E)  Rewards are given on the basis of the manager's effort .

Question 15

A disadvantage of planning is that it ________.

Accepted Answer

A)  causes managers to focus on the future 
B)  reduces organizational flexibility once plans are set 
C)  requires organizational resources 
D)  can take up too much managerial time 
E)  involves planning for situations that may not occur 
A)  causes managers to focus on the future 
B)  reduces organizational flexibility once plans are set 
C)  requires organizational resources 
D)  can take up too much managerial time 
E)  involves planning for situations that may not occur

Question 16

After setting worker objectives, the next step in a management by objectives (MBO) program is to ________.

Accepted Answer

A)  develop performance evaluation criteria 
B)  review organizational objectives 
C)  establish rewards 
D)  monitor progress 
E)  evaluate past performance 
A)  develop performance evaluation criteria 
B)  review organizational objectives 
C)  establish rewards 
D)  monitor progress 
E)  evaluate past performance

Question 17

Organizations exist for various purposes but have the same types of objectives.

Accepted Answer

A) True 
 B)False

Question 18

One of ValuTech's objectives for the year is to bring down the firm's production costs by 5 percent. To meet this objective, managers have suggested the following alternatives:
(1) Use alternate suppliers who can provide raw materials at a lower cost.
(2) Adopt cutting-edge technology that makes the production process more efficient.
-The first step in the planning process is to ________.

Accepted Answer

A)  list alternative ways of reaching objectives 
B)  state organizational objectives 
C)  develop the premises upon which each alternative is based 
D)  develop plans to pursue the chosen alternative 
E)  put plans into action 
A)  list alternative ways of reaching objectives 
B)  state organizational objectives 
C)  develop the premises upon which each alternative is based 
D)  develop plans to pursue the chosen alternative 
E)  put plans into action

Question 19

Explain the management by objectives approach (MBO) and explain the three basic parts included in most MBO programs.

Accepted Answer

Management by objectives is a management

Question 20

One of the corporate objectives of Supra Inc. is "to enrich the quality of life in the community by providing education, training, and employment opportunities."According to Drucker, this organizational objective relates to ________.

Accepted Answer

A)  managerial performance and development 
B)  innovation 
C)  public responsibility 
D)  worker performance and attitude 
E)  market standing 
A)  managerial performance and development 
B)  innovation 
C)  public responsibility 
D)  worker performance and attitude 
E)  market standing

Exam 7: Principles of Planning

The last step in the planning process focuses on developing plans to pursue the chosen alternative for reaching organizational objectives.

What is planning? What are the advantages and potential disadvantages of planning?

How should organization planners be evaluated?

The condition that exists when organizational subobjectives conflict or are not directly aimed at accomplishing the overall organizational objectives is ________.

Which of the following is an advantage of planning?

Premises are the assumptions upon which alternatives to reaching organizational objectives are based.

A firm's ________ refer(s) to what it exists to do, given a particular group of customers and customer needs.

Which of the following is NOT one of the key areas in which Drucker advised managers to set management system objectives?

According to Malik, a planner is doing a reputable job if plans ________.

In a management by objectives program (MBO), why must managers be careful not to conclude automatically that employees have produced at an acceptable level simply because they have reached their objectives?

The CEO of an organization inaugurated the company's state-of-the-art research and development facility. According to Mintzberg, the CEO performed the role of a(n) ________ in this situation.

According to Mintzberg, when managers establish themselves as links between their organizations and factors outside their organizations, they are performing the role of a ________.

Which of the following statements is true regarding the primary qualifications of organizational planners?

Which of the following is an accurate statement in reference to management by objectives (MBO)?

A disadvantage of planning is that it ________.

After setting worker objectives, the next step in a management by objectives (MBO) program is to ________.

Organizations exist for various purposes but have the same types of objectives.

Explain the management by objectives approach (MBO) and explain the three basic parts included in most MBO programs.

One of the corporate objectives of Supra Inc. is "to enrich the quality of life in the community by providing education, training, and employment opportunities."According to Drucker, this organizational objective relates to ________.

Introducing Modern Management: Concepts and Skills

Managing: History and Current Thinking

Corporate Social Responsibility, Ethics, and Sustainability

Management and Diversity

Managing in the Global Arena

Management and Entrepreneurship

Making Decisions

Strategic Planning: Strategies, Tactics, and Competitive Dynamics

Plans and Planning Tools

Fundamentals of Organizing

Responsibility, Authority, and Delegation

Human Resource Management

Organizational Change: Stress, Conflict, and Virtuality

Influencing and Communication

Leadership

Motivation

Groups and Teams

Managing Organization Culture

Encouraging Creativity and Innovation

Controlling, Information, and Technology

Production and Control

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