Deck 5: Planning: the Foundation of Successful Management

Question 1

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.

Answer 1

True

Question 2

When Holiday Inn Express stated that the organization strives to "be the primary source of hospitality in the communities" it serves by providing its customers "the best possible experience and by being good neighbors," it is stating its code of ethics.

Answer 2

False

Question 3

Setting a very challenging goal for yourself,such as "I will double the number of hours I study next semester so that I can increase my GPA by at least half a point," can keep you motivated and focused on achievement.This type of goal,which involves pushing yourself beyond what you mind might think is safe is known as a(n)

A)increased-state mindset.
B)push goal.
C)stress goal.
D)inclining goal.
E)stretch goal.

Answer 3

E

Question 4

The planning/control cycle has two control steps: (1)control the direction by comparing results with the plan and (2)control the direction by increasing organization diversity and synergy.

Question 5

A business model outlines what customer needs the company will satisfy,the operations of the business,the company components and functions,and the projected revenue and expenses.

Question 6

While sitting at her desk,Ann is setting goals and deciding how to achieve them.She is

A)planning.
B)controlling.
C)delegating.
D)diversifying.
E)synergizing.

Question 7

In the planning/control cycle,managers take corrective action by correcting deviations in the plan being carried out or by improving future plans.

Question 8

Paula is the store manager for a national grocery retailer,and she received the yearly tactical plan from Greg,her district manager.Paula is meeting with her department managers to plan how to implement the specific tasks outlined in Greg's plan for the next year.Paula is engaged in operational planning.

Question 9

The production plant for Ace Manufacturing has been located in the same place for over 100 years.It has just completed its new factory,which includes its new corporate offices.The planning required for moving Ace into a new facility is a single-use plan.

Question 10

The upper-level managers of Deluxe Coffee are meeting to discuss the company's long-range goals and vision.Like any organization,Deluxe Coffee should adopt planning and strategic management for just two reasons: (1)to provide direction and momentum and (2)to encourage retention of high-value employees.

Question 11

______ can help workers focus on critical problems,choices,and opportunities.

A)Diversity planning
B)MBO
C)Planning and strategic management
D)An effective synergy policy
E)A strong value system

Question 12

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

A)planning.
B)leading.
C)controlling.
D)defining.
E)diversifying.

Question 13

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.

Question 14

When using MBO,managers should meet about once a year,either informally or formally,to review progress on meeting objectives.

Question 15

Jerome's Italian Pizza is in a very competitive industry,and its upper management believes that it can achieve higher profits by focusing on a strategy of lowering costs and prices,providing quicker delivery,and providing good customer service."Increase profits by 15% a year for each of the next five years" is an example of a strategic goal.

Question 16

Alison,the director of marketing for a global company,is planning the contributions she and her department will make to the organization over the next 24 months.This type of planning is called operational planning.

Question 17

Research suggests that when writing out a plan to achieve your biggest goals,it is important to

A)focus on broad rather than specific goals.
B)make a concrete plan and break goals into manageable bites.
C)make a general plan,which embeds your intentions firmly in your memory.
D)keep plans and goals private.
E)avoid specific goals because it increases stress.

Question 18

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,Greg must be sure that it is implements throughout his entire organization.

Question 19

Every five years,the upper-level managers of ABC Technology meet to develop a new large-scale action plan that will set the direction for the company for the next five years.In that meeting the managers work on developing a strategy.

Question 20

Goals are arranged in a hierarchy known as a means-end chain because in the chain of management,the accomplishment of high-level goals is the means leading to the accomplishment of low-level goals or ends.

Question 21

A mission statement expresses the

A)expected profitability of an organization.
B)purpose of an organization.
C)code of ethics.
D)market for the product.
E)types of employees needed.

Question 22

Operational planning must be completed by first-line managers every ____,and tactical planning is done by middle management every

A)year;2 to 10 years.
B)6 to 24 months;1 to 52 weeks.
C)1 to 52 weeks;6 to 24 months.
D)1 to 12 weeks;year.
E)year,if necessary;1 to 90 days.

Question 23

The upper management of a large national retail grocery store has passed along the new goals of improving customer service to the district managers.At this point,the district managers need to determine how the stores in their district will achieve top management's goal with the given resources during the next 6 to 24 months.The district managers are developing ______ planning.

A)working-level
B)tactical
C)middle-level
D)operational
E)strategic

Question 24

Elite Coffee and Bakery,a café that offers a relaxing environment to enjoy quality coffees,teas,soups,and other menu items,has a poster in the front of its restaurants that reads,"We will always provide a quality product to help our customers better meet the challenges of their day and always take the time to offer caring service one person at a time." This statement is Elite's

A)belief statement.
B)goals pact.
C)mission statement.
D)code of ethics.
E)management pledge.

Question 25

The upper-level managers of Synergy Technology are meeting for the week to look at the long-term company goals and overall direction of the organization.The CEO has expressed her concern over the economy and has told her managers to look closely at the environment outside the organization before making decisions and to be future oriented.In this meeting,top managers of Synergy are

A)writing a belief statement.
B)developing their goals pact.
C)producing their code of ethics.
D)doing strategic planning.
E)doing management pledging.

Question 26

During a management meeting,Dave,the CEO of Top Office Equipment,reminded his management team of where the company wants to go as an organization: "Top Office Equipment is the expert whom customers should always call regarding all their office equipment needs because Top Office strives to understand customer needs and provide the right answers for them." This statement is Top Office Equipment's

A)belief statement.
B)goals pact.
C)code of ethics.
D)management pledge.
E)vision statement.

Question 27

An organization's _______ expresses the need the firm will fill,the operations of the business,its components and functions,and the expected revenues and expenses.

A)mentoring plan
B)code of ethics
C)risk statement
D)business model
E)code of business

Question 28

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 creating her

A)business model.
B)mentoring plan.
C)code of ethics.
D)risk statement.
E)code of business.

Question 29

One Fortune article states that "vision should describe what's happening to the world you compete in and what you want to do about it" and

A)"it should help reduce competition."
B)"it should guarantee organizational success"
C)"it should guide decisions."
D)"it should improve employee morale."
E)"it should reduce the glass ceiling."

Question 30

The profits of ABC Grocery have dropped significantly over the last several months.After investigating,the owner realizes that many of the store's departments are moving in the wrong direction.The owner realizes that these departments need stronger and closer management,but she also realizes that she has not provided her managers with enough direction regarding her expectations for the store's goals and the employees' performance.This example shows how an organization can progress in the wrong direction as a result of

A)little company diversity.
B)no focus on JIT.
C)no code of ethics.
D)poor planning.
E)too much employee diversity.

Question 31

The ______ are strategic,tactical,and operational.

A)three levels of planning
B)three levels of diversity
C)three strategic levels
D)three levels of marketing
E)three phases of the environment

Question 32

________ is the primary reason for an organization to adopt planning and strategic management.

A)Developing MBO
B)Encouraging new ideas
C)Developing a sustainable competitive advantage
D)Providing direction and momentum
E)Increasing organization diversity

Question 33

The planning process begins with two attributes: a mission statement and a vision statement.What questions are answered with each of these?

A)What do we want to become?;What is our reason for being?
B)What are the costs?;How much money can I make?
C)What are the risks?;What is our reason for being?
D)What do we want to become?;What products do we offer at a profit?
E)What is our reason for being?;What do we want to become?

Question 34

Clothing maker Patagonia states that its purpose as an organization is to "build the best product,cause no unnecessary harm,[and] use business to inspire and implement solutions to the environmental crisis." This is the company's

A)mission statement.
B)belief statement.
C)goals pact.
D)code of ethics.
E)management pledge.

Question 35

A company's strategic planning may have to be done _____ due to frequently changing competition and technology.

A)every five years rather than every two years
B)every five years rather than every ten years
C)every ten years
D)continuously
E)closer to every one or two years than every five years

Question 36

_______ is the primary reason that entrepreneurs create business plans.

A)To get financing and reduce competition
B)To develop a mentoring plan
C)To think through important details and focus on a code of ethics
D)To get financing and think through important details
E)To develop a code of business and succeed

Question 37

_______ is planning done by middle managers to determine what contributions their departments or similar work units can make with their given resources during the next 6 to 24 months.

A)Writing a belief statement
B)Developing a goals pact
C)Producing a code of ethics
D)Tactical planning
E)Management pledging

Question 38

Deon is opening a car wash,and he has approached SCORE,an 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

A)learn from experience,the best teacher,rather than a mentor.
B)avoid developing a business plan the first year of business.
C)try new things regardless of the risk.
D)get a new perspective by asking people who have failed.
E)write a business plan.

Question 39

The first three steps in planning his organization are (in the correct order)

A)strategic planning,creating a mission statement,and creating a vision statement
B)operational planning,creating a mission statement,and developing a hiring plan
C)strategic planning,operational planning,and preparing a vision statement
D)writing a mission statement,creating a vision statement,and strategic planning
E)tactical planning,operational planning,and writing a mission statement
According to Figure 5.1,the correct order of the steps are mission statement,vision statement,strategic planning,tactical planning,and operational planning.

Question 40

At the strategic level of planning,managers must pay attention to the environment outside the organization,be future oriented,and

A)have more stability than at other levels.
B)have more control over employee issues.
C)have less competition.
D)deal with uncertain and competitive conditions.
E)be more likely to understand the competition.

Question 41

_____ are plans developed for activities that are not likely to be repeated in the future,such as plans for programs or projects.

A)solo plans
B)lone-use proposals
C)individual arrangements
D)single-use plans
E)standing plans

Question 42

The management of Quality Carpet Cleaning finalized the company's action plan for increasing its market share over the next few years.The management then set up a 12-month plan that defines how the organization will conduct its business based on the action plan,including clear sales targets for each week.The second plan is an example of a(n)_____ plan.

A)dependent
B)strategic
C)operating
D)facilities
E)tactical

Question 43

_____ can be another term used for a goal.

A)task
B)vision
C)business plan
D)objective
E)norm

Question 44

Dave owns several computer repair shops across the Midwest,and he has set a goal for his company of cutting costs in all his locations over the next three years.Dave has set a(n)

A)tactical goal.
B)management guideline.
C)business plan.
D)strategic goal.
E)operational goal.

Question 45

A ______ is a specific commitment to achieve a measurable result within a stated period of time.

A)goal
B)vision
C)business plan
D)supervisory objective
E)norm

Question 46

This month,Alice,the branch manager of Quality Computer Sales,has heard several complaints from customers that Quality employees do not return calls.Today a good customer told Alice that "my phone calls and e-mails are returned after maybe a week or so." Hearing enough,Alice mandated that "all customer phone calls and e-mails must be returned within 24 hours." This new directive by Alice is an example of a(n)

A)office order.
B)policy.
C)norm.
D)value.
E)ethic.

Question 47

Fast Delivery trains its truck loaders how to set the packages in the delivery vehicles,so that when delivery drivers are pulling packages off their trucks,they are organized in a specific order and with the label facing forward to reduce errors and save time.A(n)_______ is being implemented when directing that the trucks be loaded in this specific manner.

A)industry standard
B)norm
C)policy
D)rule
E)procedure

Question 48

Susan is a front-line supervisor in a grocery retailer.She desires to decrease the time she spends working on doing her daily closing work by 45 minutes.This objective set by Susan and for her is an example of a(n)

A)lower-level objective.
B)front-line goal.
C)tactical goal.
D)supervisory objective.
E)operational goal.

Question 49

Suppose you manage an upscale restaurant in New York City.__________ would involve writing employee schedules and a list of things to do for the chef and other kitchen staff.

A)Strategic planning
B)Operational planning
C)Delegation management
D)Human resource management
E)Tactical planning

Question 50

The Human Resources department of French Quarter Seafood conducted a training workshop on setting and achieving organization goals.Alex,the store manager of the New Orleans location,has been working with his managers to set objectives that are clearly defined,focused on achieving specific results,and can be accomplished with a given amount of resources.Which aspect of SMART goals is missing?

A)Goals should be stated in specific rather than vague terms.
B)Whenever possible,goals should be measurable,or quantifiable.
C)Goals should be challenging,of course,but above all they should be realistic and attainable.
D)Goals should be results-oriented.
E)Goals should specify the target dates or deadline dates when they are to be attained.

Question 51

The department chair of the IT department issued a directive that "Absolutely no food or drink are allowed in any computer lab." She issued this directive because several computers and keyboards in the computer labs were recently damaged by spilled drinks and food.This is a(n)___________ issued by the department chair.

A)procedure
B)industry standard
C)rule
D)level of certification
E)certified procedure

Question 52

Strategic planning should communicate not only general goals about growth and profits but also

A)how to pay for them
B)ways to increase organizational synergy
C)how to increase market share
D)ways to achieve them
E)methods related to MBO

Question 53

The top management of Tasty Foods,a food distribution company,has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years.Greg,a division manager for Tasty Foods,has looked at his resources,and he has decided how his division can contribute to the two strategic goals set by upper management: (1)by partnering with another company and (2)by hiring a procurement manager to negotiate lower prices from vendors.Greg's next step is to roll out his ____ to his staff.

A)vision statements
B)management guidelines
C)codes of ethics
D)tactical goals
E)operational goals

Question 54

A _____ is a single-use plan encompassing a variety of projects or activities.

A)program
B)rule
C)policy
D)project
E)procedure

Question 55

A ______ is a standing plan that designates specific required action.

A)procedure
B)industry standard
C)rule
D)policy
E)certified procedure

Question 56

_______ are goals set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.

A)Lower-level objectives
B)Front-line goals
C)Tactical goals
D)Supervisory objectives
E)Operational goals

Question 57

Warby Parker,a manufacturer of fashionable prescription eyewear,notes on its website,"Warby Parker was founded with a rebellious spirit and a loft objective: to offer designer eyewear at a revolutionary price,while leading the way for socially-conscious business." This excerpt from the company's website states Warby Parker's

A)code of ethics.
B)business plan.
C)vision statement.
D)expense report.
E)marketing plan.

Question 58

A ______ is a standing plan that outlines the response to particular problems or circumstances.

A)procedure
B)industry standard
C)norm
D)program
E)certified procedure

Question 59

______ is planning done by first-line managers to determine how to accomplish specific tasks with available resources within the next 1 to 52 weeks.

A)Writing a belief statement
B)Developing a goals pact
C)Producing a code of ethics
D)Management pledging
E)Operational planning

Question 60

Paula,the store manager,asked Tom to organize the prize giveaways for the store's grand reopening open house.Tom is organizing a(n)

A)program
B)agenda
C)policy
D)project
E)development

Question 61

André,the plant manager,is interested in increasing the facility's productivity by utilizing MBO so that his managers and their employees are more focused on objectives.This month André asked his managers to concentrate on the two first steps of MBO,which are

A)for managers to develop an action plan and to give employees a performance appraisal.
B)for employees to develop an action plan and to study the competition.
C)to periodically review performance and to develop an action plan.
D)to review each employee's performance and to set an action plan based on performance.
E)to jointly set objectives with their employees and to have managers develop action plans.

Question 62

The planning/control cycle has two planning steps.They are

A)(1)research planning,then (2)receive feedback.
B)(1)make the plan,then (2)set it aside for a period of time.
C)(1)make the plan,then (2)carry out the plan.
D)(1)review previous plans,then (2)evaluate plans.
E)(1)research planning,then(2)look for ways to cut costs.

Question 63

The planning/control cycle has two control steps: (1)control the direction by comparing results with the plan and (2)control the direction by taking corrective action in two ways-namely,by

A)receiving feedback,and,if needed,making new plans.
B)researching ways to plan better and increasing profits.
C)increasing organization synergy and diversity.
D)correcting deviations in the plan being carried out or improving future plans.
E)improving future plans,and,if needed,cutting costs.

Question 64

John,the owner of a lawn care service,likes to meet with his employees six months after their yearly evaluation to discuss how they are progressing on suggestions on and plans to improve their yearly job evaluation.At this point,by comparing the six-month results with the past evaluation,John is in the ______ steps of the planning/control cycle.

A)control
B)planning
C)organizing
D)observation
E)termination

Question 65

You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis.You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example,cherry juice,apple juice,lemonade)twice a week.As you think about starting your business,you ask yourself: How rare is the service I am offering? How valuable is it? Can I organize the company to maximize my advantages in the marketplace? After asking these questions,review and identify which question from VRIO did you forget to ask?

A)Is the resource or capability valuable?
B)Is the resource or capability currently controlled by only a few firms or no other firms?
C)Is the firm organized to exploit the resource of capability?
D)What values should be emphasized?
E)Is the resource or capability costly for other firms to imitate?

Question 66

Billy told his boss,Gwen,that he is going to start training for the upcoming marathon to be healthier and to have more energy for work.When Gwen asked him about his running history,Billy said,"I really have never run before and don't exercise much.I just know I need to do something." Gwen told Billy,"You should start slowly,maybe setting smaller,realistic exercise goals that are achievable." Gwen is helping Billy set a

A)single-use plan.
B)SMART goal.
C)standing plan.
D)simplistic goal.
E)focal point.

Question 67

Alicia,a district manager for a global retailer,is traveling to different stores in her district to discuss with store managers how to increase profitability for the rest of the fiscal year.What is Alicia doing?

A)eliminating the planning/control cycle
B)avoiding the planning/control cycle
C)controlling the direction of the planning/control cycle
D)researching the planning/control cycle
E)forecasting the planning/control cycle

Question 68

The purpose of MBO is to

A)control subordinates.
B)control costs.
C)control lower-level management.
D)motivate subordinates.
E)increase market share and develop synergy.

Question 69

You are reading a business document that outlines your company's long-term goals and direction.These goals include "Reduce energy consumption in our offices by 20%," "Grow out market share in China from 3% to 10%," "Enter a strategic alliance with a partner in Australia to begin selling our products in Sydney and Brisbane," and "Equip all sales representatives with an app that allows them to provide an immediate quote when meeting with customers." What type of document are you reading?

A)a values statement
B)a business plan
C)a SMART goal
D)a vision statement
E)a strategic plan

Question 70

When utilizing SMART goals or MBO,deadlines can help you keep your eye on the ______ while simultaneously paying attention to ______.

A)task at hand;ethical standards
B)customer;the employees
C)profitability;details you may be missing
D)big picture;the necessary details
E)profits;employee satisfaction.

Question 71

Which of the following goals satisfies the SMART criteria?

A)"As a talented florist,I will sell $100,000 in flowers."
B)"This company will greatly improve its performance next year."
C)"Within the next six months,I will grow my sole proprietorship into a corporation that is larger than Apple and IBM combined."
D)"Improve our customer-service ratings."
E)"In the next quarter,our Houston sales rep will increase sales by 10%."

Question 72

Steve,a hotel general manager,has had great success using MBO.Hannah,his district manager,has found that Steve's employees are highly motivated.Because Steve _________,Hannah is able to discern that he is using MBO.

A)has increased training
B)rewards his employees with compliments,raises,and other benefits as they meet their goals
C)is big on discipline
D)gives few compliments,but is very honest with his employees
E)uses the Outward Theory that proposes discussing issues in open meetings

Question 73

For MBO to be successful,top management must be committed to the program,MBO must be applied organizationwide,and

A)objectives must cascade.
B)employees need to provide continuous feedback to each other.
C)objectives must remain fixed and unchanging.
D)objectives must be generated from the bottom up.
E)there must be community support.

Question 74

Research on MBO shows that people are impelled to set more difficult goals when

A)the goals have a significant impact on profitability.
B)employees can avoid personal development.
C)both management and subordinates participate.
D)the goals emphasize corporate social responsibility.
E)ethics are not a consideration.

Question 75

With setting SMART goals,you should choose only a few goals on which to focus.These goals should be results-oriented and

A)support the company's diversity plan.
B)align with the beliefs of the local community.
C)keep employees happy.
D)support the organization's vision.
E)meet low cost goals.

Question 76

____ is the process for motivating employee performance in which 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 a performance appraisal and rewards the employee according to the results achieved.

A)Observation theory
B)MBAO
C)MBO
D)Strategic planning
E)An employee-management agreement

Question 77

Which of the following companies is NOT one of the "frightful five" companies that dominate the Internet economy?

A)Facebook
B)Instagram
C)Amazon
D)Apple
E)Microsoft

Question 78

What is the primary objective of a plan?

A)It outlines how goals are going to be met.
B)It explains the company's slogan.
C)It provides information about company financials for stakeholders.
D)It guides ethical decision making.
E)It sets research and development priorities.

Question 79

MBO works by objectives moving through the organization;that is,top managers set general organizational objectives,which are translated into divisional objectives,which are translated into departmental objectives.The hierarchy ends in individual objectives set by each employee.This is an example of MBO working as objectives ______ through the organization.

A)move upward
B)move outward into the community
C)change significantly
D)cascade down
E)become less refined and more generalized

Question 80

To ensure that plans are moving in the right direction,managers can use the

A)means-ends chain.
B)synergy method.
C)efficiency plan.
D)planning/control cycle.
E)satisficing strategy.