Question 1

Intermediate-term objectives are targets to be achieved in _______.

Accepted Answer

A)  one year or less 
B)  one to five years 
C)  three to seven years 
D)  five to seven years 
E)  five to ten years 
A)  one year or less 
B)  one to five years 
C)  three to seven years 
D)  five to seven years 
E)  five to ten years

Question 2

The affirmative purpose of planning is to minimize risk by reducing the uncertainties surrounding business conditions and clarifying the consequences of related management activities.

Accepted Answer

A) True 
 B)False

Question 3

One of the disadvantages of management by objectives (MBO) is that ________.

Accepted Answer

A)  the process is very quick and informal 
B)  the process has no effect on worker commitment 
C)  the program only emphasizes what should be done in an organization 
D)  the process is time consuming and requires additional paper work 
E)  the process is a mere duplication of other management practices 
A)  the process is very quick and informal 
B)  the process has no effect on worker commitment 
C)  the program only emphasizes what should be done in an organization 
D)  the process is time consuming and requires additional paper work 
E)  the process is a mere duplication of other management practices

Question 4

What are the factors that are essential to the success of a management by objectives (MBO) program?

Accepted Answer

Certain key factors are essential to the

Question 5

ABC Corp. is an information technology company. The IT department wants to upgrade the firm's technological infrastructure but the cost of upgrading is likely to take up at least 60 percent of the firm's cash reserves. The finance manager is reluctant to release funds for this purpose. According to him, "The economy is still in a state of uncertainty. The company is better off preserving its cash reserves rather than investing it."
-Which of the following, if true, would most support the finance manager's point of view?

Accepted Answer

A)  There is a correlation between a firm's level of technological investment and its long-term growth. 
B)  Gains from technology are hard to predict on account of uncertain demand. 
C)  The returns from other investment opportunities are much more attractive. 
D)  Recent reports suggest that the economy is yet to fully recover from the recession. 
E)  Banks are hesitant to lend to the company on account of uncertain economic conditions. 
A)  There is a correlation between a firm's level of technological investment and its long-term growth. 
B)  Gains from technology are hard to predict on account of uncertain demand. 
C)  The returns from other investment opportunities are much more attractive. 
D)  Recent reports suggest that the economy is yet to fully recover from the recession. 
E)  Banks are hesitant to lend to the company on account of uncertain economic conditions.

Question 6

Which of the following statements is true about the planning subsystem?

Accepted Answer

A)  It utilizes all of an organization's resources. 
B)  It reduces the need for strict control over the planning process. 
C)  It helps managers organize the overall management system and enhance its success. 
D)  It allows different organizational departments to develop their own strategic plans. 
E)  It places the responsibility of identifying organizational objectives on different departments. 
A)  It utilizes all of an organization's resources. 
B)  It reduces the need for strict control over the planning process. 
C)  It helps managers organize the overall management system and enhance its success. 
D)  It allows different organizational departments to develop their own strategic plans. 
E)  It places the responsibility of identifying organizational objectives on different departments.

Question 7

A system created as part of the overall management system is a(n) ________.

Accepted Answer

A)  offshoot 
B)  microsystem 
C)  spinoff 
D)  subsystem 
E)  outgrowth 
A)  offshoot 
B)  microsystem 
C)  spinoff 
D)  subsystem 
E)  outgrowth

Question 8

What is the difference between an organizational objective and a statement of organizational purpose?

Accepted Answer

An organizational objective is a target

Question 9

Of the four primary management functions, organizing usually precedes planning.

Accepted Answer

A) True 
 B)False

Question 10

Mintzberg pointed out that the top managers of organizations have many different roles to perform. As ________, they must represent their organizations in a variety of social, legal, and ceremonial situations.

Accepted Answer

A)  organizational figureheads 
B)  disturbance handlers 
C)  liaisons 
D)  resource allocators 
E)  monitors 
A)  organizational figureheads 
B)  disturbance handlers 
C)  liaisons 
D)  resource allocators 
E)  monitors

Question 11

In line with the organization's objectives, the sales managers at MagnaCorp must ensure that all products are sufficiently stocked so that customer orders are fulfilled and stockout situations do not arise. The operations managers, on the other hand, have been instructed to lower inventory costs and hence, prefer to keep stock levels to a minimum. This situation is an example of ________.

Accepted Answer

A)  management by objectives 
B)  secondary objectives 
C)  intermediate-term plans 
D)  planning subsystems 
E)  suboptimization 
A)  management by objectives 
B)  secondary objectives 
C)  intermediate-term plans 
D)  planning subsystems 
E)  suboptimization

Question 12

When established subobjectives are aimed in different directions, a manager should ________.

Accepted Answer

A)  determine the initial purpose of planning and then revise the objectives accordingly 
B)  choose the subobjective that better contributes to the overall organizational objectives 
C)  revise the organization's entire strategic plan 
D)  identify alternative ways of reaching organizational objectives 
E)  consider eliminating the objectives all together 
A)  determine the initial purpose of planning and then revise the objectives accordingly 
B)  choose the subobjective that better contributes to the overall organizational objectives 
C)  revise the organization's entire strategic plan 
D)  identify alternative ways of reaching organizational objectives 
E)  consider eliminating the objectives all together

Question 13

ABC Corp. is an information technology company. The IT department wants to upgrade the firm's technological infrastructure but the cost of upgrading is likely to take up at least 60 percent of the firm's cash reserves. The finance manager is reluctant to release funds for this purpose. According to him, "The economy is still in a state of uncertainty. The company is better off preserving its cash reserves rather than investing it."
-In order to increase the quality of their objectives, managers should ________.

Accepted Answer

A)  set employees' goals as high as possible 
B)  ensure that they set objectives entirely by themselves 
C)  establish goals which are within easy reach 
D)  let the people responsible for attaining the objectives have a voice in setting them 
E)  avoid relating objectives to specific actions 
A)  set employees' goals as high as possible 
B)  ensure that they set objectives entirely by themselves 
C)  establish goals which are within easy reach 
D)  let the people responsible for attaining the objectives have a voice in setting them 
E)  avoid relating objectives to specific actions

Question 14

Short-term objectives are targets to be achieved within five to seven years.

Accepted Answer

A) True 
 B)False

Question 15

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.
-After identifying the alternative ways in which the organization can reach its objectives, a manager should ________.

Accepted Answer

A)  develop plans for each alternative 
B)  choose the best alternative for reaching objectives 
C)  rank each alternative according to complexity 
D)  develop premises on which to base each alternative 
E)  choose the alternative which is most cost effective 
A)  develop plans for each alternative 
B)  choose the best alternative for reaching objectives 
C)  rank each alternative according to complexity 
D)  develop premises on which to base each alternative 
E)  choose the alternative which is most cost effective

Question 16

According to Drucker, which of the following goal areas relates to a tangible, impersonal characteristic of organizational operations?

Accepted Answer

A)  number of employees 
B)  innovation 
C)  managerial performance and development 
D)  worker performance and attitude 
E)  public responsibility 
A)  number of employees 
B)  innovation 
C)  managerial performance and development 
D)  worker performance and attitude 
E)  public responsibility

Question 17

What are the main qualifications organizations look for in organization planners?

Accepted Answer

Planners should have four primary qualif

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 last step in the planning process is to ________.

Accepted Answer

A)  put the plans into action 
B)  evaluate the organizational goals 
C)  choose the best alternative for reaching objectives 
D)  develop the premises upon which each alternative is based 
E)  state the organizational objectives 
A)  put the plans into action 
B)  evaluate the organizational goals 
C)  choose the best alternative for reaching objectives 
D)  develop the premises upon which each alternative is based 
E)  state the organizational objectives

Question 19

Describe the eight key areas in which Drucker advised managers to set management system objectives.

Accepted Answer

Managers should strive to develop and at

Question 20

Planning is advantageous to an organization, particularly in the creation of new ventures. According to an often-cited survey, as many as 65 percent of all newly started businesses are not around to celebrate a fifth anniversary. This high failure rate seems primarily a consequence of inadequate planning. Successful businesses have an established plan, a formal statement that outlines the objectives the organization is attempting to achieve. Planning does not eliminate risk, of course, but it does help managers identify and deal with organizational problems before they cause havoc in a business. Which of the following best expresses the main point of this paragraph?

Accepted Answer

A)  Adequate planning eliminates business risk. 
B)  All ventures have a 65 percent chance of failure. 
C)  Existing businesses do not derive as much value from planning compared to new ventures. 
D)  Effective planning helps managers identify and plan for all organizational problems. 
E)  Companies that plan well appear to have a better chance at success. 
A)  Adequate planning eliminates business risk. 
B)  All ventures have a 65 percent chance of failure. 
C)  Existing businesses do not derive as much value from planning compared to new ventures. 
D)  Effective planning helps managers identify and plan for all organizational problems. 
E)  Companies that plan well appear to have a better chance at success.

Intermediate-term objectives are targets to be achieved in _______.

The affirmative purpose of planning is to minimize risk by reducing the uncertainties surrounding business conditions and clarifying the consequences of related management activities.

One of the disadvantages of management by objectives (MBO) is that ________.

What are the factors that are essential to the success of a management by objectives (MBO) program?

Which of the following statements is true about the planning subsystem?

A system created as part of the overall management system is a(n) ________.

What is the difference between an organizational objective and a statement of organizational purpose?

Of the four primary management functions, organizing usually precedes planning.

Mintzberg pointed out that the top managers of organizations have many different roles to perform. As ________, they must represent their organizations in a variety of social, legal, and ceremonial situations.

When established subobjectives are aimed in different directions, a manager should ________.

Short-term objectives are targets to be achieved within five to seven years.

According to Drucker, which of the following goal areas relates to a tangible, impersonal characteristic of organizational operations?

What are the main qualifications organizations look for in organization planners?

Describe the eight key areas in which Drucker advised managers to set management system objectives.

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

Filters

Exam 7: Principles of Planning

Intermediate-term objectives are targets to be achieved in _______.

The affirmative purpose of planning is to minimize risk by reducing the uncertainties surrounding business conditions and clarifying the consequences of related management activities.

One of the disadvantages of management by objectives (MBO) is that ________.

What are the factors that are essential to the success of a management by objectives (MBO) program?

Which of the following statements is true about the planning subsystem?

A system created as part of the overall management system is a(n) ________.

What is the difference between an organizational objective and a statement of organizational purpose?

Of the four primary management functions, organizing usually precedes planning.

Mintzberg pointed out that the top managers of organizations have many different roles to perform. As ________, they must represent their organizations in a variety of social, legal, and ceremonial situations.

When established subobjectives are aimed in different directions, a manager should ________.

Short-term objectives are targets to be achieved within five to seven years.

According to Drucker, which of the following goal areas relates to a tangible, impersonal characteristic of organizational operations?

What are the main qualifications organizations look for in organization planners?

Describe the eight key areas in which Drucker advised managers to set management system objectives.

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

Filters