Question 1

One of the short-term objectives of Alport Corporation, a manufacturer of construction equipment, is "to achieve a 15 percent return on investment (ROI) by September 2011."According to Drucker, this objective relates to ________.

Accepted Answer

A)  innovation 
B)  productivity 
C)  market standing 
D)  managerial performance 
E)  profitability

Question 2

A key element of any management by objectives (MBO) program is top management support and commitment.

Accepted Answer

A) True 
 B)False

Question 3

The management by objectives (MBO) approach has been found to be ineffective for nonprofit organizations.

Accepted Answer

A) True 
 B)False

Question 4

A(n) ________ involves breaking an organizational objective down into subobjectives so individuals at different levels of the organization know what they must do to reach the overall organizational objective.

Accepted Answer

A)  suboptimization process 
B)  intermediate-term plan 
C)  organizational hierarchy 
D)  hierarchy of objectives 
E)  organizational purpose

Question 5

The final responsibility for organizational planning rests with the firm's chief executives.

Accepted Answer

A) True 
 B)False

Question 6

The final responsibility for organizational planning rests with ________.

Accepted Answer

A)  the planning department 
B)  the designated organizational planner 
C)  the shareholders 
D)  the chief executives 
E)  the first-level managers

Question 7

The workers of a factory go on an unauthorized strike. The factory supervisor attempts to brings the situation under control by initiating negotiations with the labor union. According to Mintzberg, this manager has taken on the role of a(n) ________.

Accepted Answer

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

Question 8

Organizational planners must know how all parts of the organization function and interrelate.

Accepted Answer

A) True 
 B)False

Question 9

A potential disadvantage of planning is that it can take up too much managerial time.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the fundamental purpose of planning?

Accepted Answer

A)  eliminating risk 
B)  helping the organization reach its objectives 
C)  optimizing the use of resources 
D)  identifying organizational objectives 
E)  organizing work processes

Question 11

Describe the steps in the planning process.

Accepted Answer

The answer of Describe the steps in the planning process....

Question 12

When setting objectives, managers should state objectives as specifically as possible because ________.

Accepted Answer

A)  it ensures that employees have explicit directions for what they should do 
B)  it ensures that employee productivity will vary according to the needs of the situation 
C)  it allows employees to make inferences about what they should do to accomplish their goals 
D)  it allows them to set the pace for employees' work 
E)  it reduces the risk of suboptimization

Question 13

How can managers increase the quality of their objectives?

Accepted Answer

The answer of How can managers increase the quality of...

Question 14

An organization's vision outlines what the organization exists to do, given a particular group of customers and customer needs.

Accepted Answer

A) True 
 B)False

Question 15

According to Drucker, which of the following is an example of an organizational objective related to productivity?

Accepted Answer

A)  to reduce overall inventory management costs by 15 percent 
B)  to increase the use of environmentally-friendly workplace practices 
C)  to lower the rate of attrition in the organization within the next 6 months 
D)  to increase the unit's monthly output by 10 percent within the next 12 months 
E)  to reduce total overhead costs by 5 percent by the end of the year

Question 16

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.
-Alternatives to reach an organizational objective are based on assumptions which are called ________.

Accepted Answer

A)  objectives 
B)  missions 
C)  goals 
D)  premises 
E)  priorities

Question 17

According to Mintzberg, which of the following tasks is associated with the role of a resource allocator?

Accepted Answer

A)  developing organizational policies and procedures 
B)  interacting with labor unions 
C)  motivating employees 
D)  approving department budgets 
E)  networking with managers in competing organizations

Question 18

A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months. Which of the following is a valid criticism of this objective?

Accepted Answer

A)  It does not pinpoint expected results. 
B)  It is not stated in simple fashion. 
C)  It is not achievable. 
D)  It is does not relate to specific actions. 
E)  It is not related to other organizational objectives.

Question 19

John F. Mee suggested that organizational objectives for businesses can be summarized in three points. Identify the correct statement.

Accepted Answer

A)  Service to society is the motivating force for managers. 
B)  The people responsible for attaining objectives should have a voice in setting them. 
C)  Managers are not bound by the ethical codes of the society in which the business operates. 
D)  Managers should establish performance objectives that they know are within reach for employees. 
E)  Service to customers by the provision of desired economic values justifies the existence of the business.

Question 20

According to Drucker, management should set objectives that indicate the company's responsibilities to its customers and society but should not specify the extent to which the company intends to live up to these responsibilities.

Accepted Answer

A) True 
 B)False

Exam 7: Principles of Planning

One of the short-term objectives of Alport Corporation, a manufacturer of construction equipment, is "to achieve a 15 percent return on investment (ROI) by September 2011."According to Drucker, this objective relates to ________.

A key element of any management by objectives (MBO) program is top management support and commitment.

The management by objectives (MBO) approach has been found to be ineffective for nonprofit organizations.

A(n) ________ involves breaking an organizational objective down into subobjectives so individuals at different levels of the organization know what they must do to reach the overall organizational objective.

The final responsibility for organizational planning rests with the firm's chief executives.

The final responsibility for organizational planning rests with ________.

The workers of a factory go on an unauthorized strike. The factory supervisor attempts to brings the situation under control by initiating negotiations with the labor union. According to Mintzberg, this manager has taken on the role of a(n) ________.

Organizational planners must know how all parts of the organization function and interrelate.

A potential disadvantage of planning is that it can take up too much managerial time.

Which of the following is the fundamental purpose of planning?

Describe the steps in the planning process.

When setting objectives, managers should state objectives as specifically as possible because ________.

How can managers increase the quality of their objectives?

An organization's vision outlines what the organization exists to do, given a particular group of customers and customer needs.

According to Drucker, which of the following is an example of an organizational objective related to productivity?

According to Mintzberg, which of the following tasks is associated with the role of a resource allocator?

A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months. Which of the following is a valid criticism of this objective?

John F. Mee suggested that organizational objectives for businesses can be summarized in three points. Identify the correct statement.

According to Drucker, management should set objectives that indicate the company's responsibilities to its customers and society but should not specify the extent to which the company intends to live up to these responsibilities.