Deck 6: Reaching Goals: Plans and Controls

Question 1

Policies are best defined as:

A) broad guidelines for how to act.
B) the steps that must be completed to achieve a specific purpose.
C) specific statements of what to do or not to do in a given situation.
D) objectives with a narrow focus.

Answer 1

A
Explanation: Policies are broad guidelines for how to act; they do not spell out the details of how to handle a specific situation.

Question 2

Fusion Inc.,a clothing manufacturer,has recently become very successful.The top management is now planning to venture into the confectionary business and earn similar profits in this new business.This is an example of _____ planning.

A) operational
B) strategic
C) contingency
D) integrated operational

Answer 2

B
Explanation: The type of planning in the scenario exemplifies strategic planning. Strategic planning is the creation of long-term goals for an organization. These goals typically include the type and quality of goods or services the organization is to provide and, for a business, the level of profits it is to earn.

Question 3

Which of the following is a defining characteristic of operational planning?

A) Operational planning is ideally done by the CEO and other top managers.
B) The scope of operational planning includes stating objectives for the organization as a whole.
C) Typically, operational planning is done when the original plan fails to materialize.
D) Operational planning is usually short-term with a time frame of one year or less.

Answer 3

D
Explanation: Operational planning is usually short-term with a time frame of one year or less. It is performed by middle managers and supervisors.

Question 4

Which of the following is a defining characteristic of strategic planning?

A) It is typically performed by middle managers and supervisors.
B) It lays down objectives for specific departments and not for the entire firm.
C) It covers a comparatively large time span that is usually over a year.
D) It is primarily aimed at making employees focus on their role in supporting the company's goals.

Question 5

For objectives to be effective,they should be:

A) written, measurable, clear, specific, and challenging but achievable.
B) simple, distinctive, rational, assessable, and easily achievable.
C) specific, acceptable, generalizable, innovative, and extremely challenging.
D) unique, understandable, logical, observable, and simple yet significant.

Question 6

Operational planning is best defined as the process of:

A) creating long-term goals for the organization or company as a whole.
B) developing objectives that specify how each department will support organizational goals.
C) planning what to do if the original plans or objectives set by an organization don't work out.
D) accurately linking operational planning with financial planning.

Question 7

_____ is the management function of setting goals and determining how to meet them.

A) Organizing
B) Controlling Planning
D) Evaluating

Question 8

Rules are best defined as:

A) the principles by which people distinguish what is morally right.
B) the steps that must be completed to achieve a specific purpose.
C) specific statements of what to do or not to do in a given situation.
D) objectives with a comparatively narrow focus.

Question 9

Operational planning differs from strategic planning in that:

A) it is performed by middle managers.
B) it focuses on long-term goals.
C) it involves setting objectives for an organization as a whole.
D) it involves a planning department.

Question 10

Procedures are best defined as:

A) the principles by which people distinguish what is morally right.
B) the steps that must be completed to achieve a specific purpose.
C) specific statements of what to do or not to do in a given situation.
D) objectives with a comparatively narrow focus.

Question 11

_____ are objectives with a broad focus.

A) Goals
B) Norms
C) Requirements
D) Targets

Question 12

The difference between a policy and a rule is that:

A) a policy is rigid, but a rule is comparatively flexible.
B) a policy does not specify details of how to handle a specific situation, but rules are very specific.
C) a policy is related to operational planning and has a narrower scope compared to a rule.
D) a policy is not open to interpretation like a rule.

Question 13

At Value Inc.,there are specific steps to be followed when applying for a day off.First,an employee has to apply to his or her immediate supervisors.After getting their approval,he or she has to get it signed by the branch manager.Then a copy of the leave application has to be submitted to the HR department.These mandatory steps are referred to as _____.

A) policies
B) ethics
C) procedures
D) goals

Question 14

Which of the following is the management function upon which all the other functions depend?

A) Staffing
B) Controlling
C) Planning
D) Organizing

Question 15

An effective objective must be _____.

A) broad
B) clear
C) rigid
D) discreet

Question 16

Which of the following statements is true of planning?

A) Planning should begin at the bottom, with a plan for each department.
B) Planning centers on the setting of goals and objectives.
C) Planning is the function of ensuring that work goes according to a strategy.
D) Planning done by top managers is called operational planning.

Question 17

Which of the following is true of procedures?

A) They are broad guidelines for how to act that are flexible and open to interpretation.
B) They free managers from making decisions about activities they carry out repeatedly.
C) They are specific statements that serve as the basis for action plans and contingency plans.
D) They do not spell out the steps that must be completed to achieve a specific purpose.

Question 18

Operational planning is performed by the:

A) top management and the board of directors.
B) top and the middle management.
C) middle management and the supervisors.
D) supervisors and the board of directors.

Question 19

_____ specify the desired accomplishments of an organization as a whole or of a part of it.

A) Traditions
B) Objectives
C) Code of ethics
D) Norms

Question 20

Strategic planning is best defined as the process of:

A) creating long-term goals for the organization as a whole.
B) developing objectives that specify how each department will support organizational goals.
C) planning what to do if the original plans or objectives set by an organization don't work out.
D) accurately linking operational planning with financial planning.

Question 21

_____ includes deciding which activities will take priority over others and deciding who will do what tasks and when.

A) Budgeting
B) Allocating
C) Scheduling
D) Controlling

Question 22

Fred,a supervisor at JK Inc.,is drafting a report on his department's estimated expenses for the coming fiscal year and the precise allocation of available capital to areas such as rent,employee wages,and insurance.Fred is most likely formulating a(n)_____.

A) strategic plan
B) contingency plan
C) strategic budget
D) operating budget

Question 23

Budgeting is best defined as the process of:

A) allocating money resources.
B) formulating an agenda.
C) making a contingency plan.
D) reducing bunker hedging.

Question 24

For the effective use of management by objectives,_____.

A) managers at all levels must be committed to the system
B) the objectives set should be general and immeasurable
C) employees should be excluded from the process
D) the goals must be set solely by top management

Question 25

If objectives are thought of as statements of where one wants to go,then a(n)_____ plan is a map that tells them how to get there.

A) operational
B) strategic
C) contingency
D) action

Question 26

A _____ is a scheduling tool that lists the activities to be completed and uses horizontal bars to graph how long each activity will take,including its starting and ending dates.

A) scatter graph
B) run chart
C) stem plot
D) Gantt chart

Question 27

In the context of budgeting,big-ticket items such as machinery or a new building would most likely be part of a(n)_____ budget.

A) central
B) capital
C) divisional
D) operating

Question 28

Which of the following is true about management by objectives?

A) All individuals in the organization work with their managers to set objectives.
B) The managers dictate the objectives to the employees.
C) It is an informal system of setting objectives.
D) Setting and monitoring the achievement of objectives does not require paperwork.

Question 29

Which of the following is most likely to be included as part of an operating budget?

A) Insurance
B) New plant
C) New building
D) Machinery

Question 30

Two of the most widely used techniques for scheduling are:

A) Supnick matrix and flow network.
B) Gantt charts and PERT networks.
C) directed graphs and matrices.
D) graph algorithms and spectral layout.

Question 31

A(n)_____ is defined as a plan for spending money.

A) budget
B) contingency plan
C) schedule
D) action plan

Question 32

At Ecstasy Café,it is mandatory for employees to wash their hands before handling food.This is an appropriate example of a:

A) plan.
B) rule.
C) code.
D) procedure.

Question 33

Which of the following is most likely to be included as part of a capital budget?

A) Amount to be spent on wages
B) Amount to be spent on rent
C) Amount to be spent on insurance
D) Amount to be spent on heavy machinery

Question 34

Which of the following refers to contingency planning?

A) Planning that is specifically concerned with the formulation of a company's budget
B) Planning that is concerned with what to do if the original plans don't work out
C) Planning that is primarily concerned with setting a mission statement
D) Planning that is primarily concerned with dealing effectively with whistle-blowers

Question 35

Which of the following is true of action plans?

A) They are the original plans developed by the top managers for the organization as a whole.
B) They are created by answering the questions what, who, when, where, and how.
C) They are plans implemented when the original plans do not work out.
D) They cannot be used as a tool to meet desired organizational objectives.

Question 36

An action plan is best defined as the plan:

A) for how to achieve an objective.
B) that is a back-up for the original plan.
C) that is specifically concerned with the formulation of budget.
D) for setting a mission statement.

Question 37

In context of a supervisor's role as a planner,setting a precise timetable for the work to be done is known as:

A) . scheduling.
B) capital budgeting.
C) strategic planning.
D) evaluating.

Question 38

_____ is a process in which managers and employees at all levels set objectives for what they are to accomplish.

A) Objectives management
B) Strategic objectives managing
C) Program evaluation and review technique
D) Management by objectives

Question 39

Which of the following is true of contingency planning?

A) It is a formal plan for how to achieve an objective.
B) The supervisor creates a contingency plan by answering the questions what, who, when, where, and how.
C) It is too time-consuming to create a written contingency plan for every detail of operations.
D) Contingency plans are the original plans developed by the top managers for the organization as a whole.

Question 40

Why do some people dislike management by objectives?

A) It is not possible for managers to periodically review an individual's performance to see whether he or she is meeting the objectives.
B) Employees do not benefit from a system of rewards that is based on personality rather than on performance.
C) Setting and monitoring the achievement of objectives can be time-consuming and requires a lot of paperwork.
D) When employees are involved in the process of setting goals, it results in lesser commitment toward achieving those goals.

Question 41

When monitoring performance,supervisors should focus on how actual performance compares with the standards they have set.Two concepts useful for maintaining this focus are:

A) Gantt chart and operational planning.
B) variance and the exception principle.
C) standards and performance reports.
D) feedback control and the parity principle.

Question 42

_____ involves the presentation of something pleasant after a desired behavior has occurred.

A) Laissez-faire
B) Positive reinforcement
C) Empowerment
D) Affirmative feedback

Question 43

In the context of controlling,the size of the difference between actual performance and a performance standard is referred to as:

A) an exception metric.
B) a measurement error.
C) variance.
D) critical path.

Question 44

Which of the following is the first step in the process of controlling?

A) Monitoring actual performance against set targets
B) Establishing performance standards
C) Estimating the fund required for efficient productivity
D) Providing feedback based on performance

Question 45

A scheduling tool that most efficiently identifies the relationships among tasks as well as the amount of time each task will take is called a:

A) Gantt chart.
B) PERT network.
C) planar map.
D) run chart.

Question 46

Controlling is best defined as the:

A) scheduling tool that identifies the relationships among tasks as well as the amount of time each task will take.
B) management function of making sure that work goes according to plan.
C) process of planning what to do if the original plans don't work out.
D) process of developing objectives that specify how each department will support organizational goals.

Question 47

In the control process,_____ define the acceptable quantity and quality of work.

A) standards
B) controls
C) rules
D) policies

Question 48

The control principle stating that a supervisor should take action only when the variance is meaningful is most accurately referred to as the:

A) exception principle.
B) scalar principle.
C) Peter principle.
D) reinforcement principle.

Question 49

Which of the following is true of the exception principle?

A) The exception principle is beneficial when it helps supervisors manage their time wisely and motivate employees.
B) According to the exception principle, supervisors should take action only when the variance is measurable.
C) The exception principle is applied by the top managers during strategic planning when they set objectives for an organization as a whole.
D) According to the exception principle, supervisors should avoid comparing actual performance with standards set by them.

Question 50

_____ is at the heart of the control function.

A) Implementation of plans
B) Detection of problems
C) Elimination of errors
D) Allocation of resources

Question 51

Encouragement of a behavior by associating it with a reward is known as _____.

A) the exception principle
B) feedback control
C) reinforcement
D) empowerment

Question 52

apparent and achievable standards.

A) Monitoring performance
B) Fixing problems
C) Reinforcing successes
D) Providing feedback

Question 53

To be effective,performance standards should be:

A) orally stated.
B) easy rather than challenging.
C) general rather than specific.
D) measurable.

Question 54

To make sure that employees understand objectives and consider them achievable,supervisors should _____. .set objectives that are general rather than specific.
B) involve the top managers in the goal-setting process.
C) set objectives that are easy rather than challenging.
D) involve the employees in the goal-setting process.

Question 55

When setting performance standards,a supervisor must avoid:

A) communicating performance standards to employees.
B) being a slave to the past.
C) having very specific standards.
D) apparent and achievable standards.

Question 56

In the context of program evaluation and review technique (PERT),the sequence of tasks that requires the greatest amount of time is referred to as the:

A) precautionary principle.
B) exception principle.
C) exaggerated agenda.
D) critical path.

Question 57

In the program evaluation and review technique (PERT),a delay in the _____ will cause the entire project to fall behind.

A) critical path
B) network
C) action plan
D) concurrent control

Question 58

In the context of the process of controlling,standards are best defined as:

A) measures of what is expected.
B) principles by which people distinguish what is morally right.
C) results of performance evaluation.
D) objectives with a comparatively narrow focus.

Question 59

Which of the following is the next step after establishing performance standards in the control process?

A) Monitoring performance
B) Fixing problems
C) Reinforcing successes
D) Providing feedback

Question 60

In the control process,the way supervisors set standards depends on their:

A) employer's expectations.
B) beliefs and values.
C) personality characteristics.
D) employees' experience.

Question 61

Which of the following exemplifies feedback control?

A) A café supervisor greeting customers at their tables
B) A supervisor reviewing customer comments about service
C) A production supervisor providing employees with guidelines about the detection of improperly functioning machinery
D) A restaurant manager visiting the kitchen to see how work is progressing

Question 62

_____ are an invaluable tool with which supervisors can closely monitor and control the progress and performance of a project.

A) Gantt charts
B) Histograms
C) Bar diagrams
D) Line graphs

Question 63

The best response to problems related to standards is to make the performance standard:

A) less challenging.
B) less observable.
C) more appropriate.
D) more general.

Question 64

Jake,the restaurant manager at Tulips,greets customers at their tables,visits the kitchen to see how the work is progressing,and makes the effort to fix any issues as soon as they occur.Jake is most likely practicing _____.

A) feedback control
B) sequencing
C) reinforcement
D) concurrent control

Question 65

Which of the following statements is true of the control process?

A) Once performance standards are in place, the supervisor can begin the core of the control process: fixing problems.
B) The information gained from the control process is beneficial even if supervisors do not use it as the basis for reinforcing behavior.
C) In a control system, variance refers to a factor in the organization that is a barrier to improvement.
D) If the control system is working properly, the supervisor should be uncovering problems before customers and management discover them.

Question 66

_____ refers to efforts aimed at preventing behavior that may lead to undesirable results.

A) Precontrol
B) Feedback control
C) Concurrent control
D) Negative control

Question 67

In the context of controlling,a factor in an organization that is a barrier to improvement is known as a _____.

A) symptom
B) threat
C) variance
D) problem

Question 68

The information gained from the control process is beneficial only if supervisors:

A) develop standards that are less challenging and more specific.
B) use it as the basis for reinforcing or changing behavior.
C) use it to monitor performance before establishing standards.
D) uncover problems as soon as customers and management discover them.

Question 69

Control that occurs while the work takes place is referred to as _____ control.

A) feedback
B) concurrent
C) positive
D) negative

Question 70

Which of the following exemplifies concurrent control?

A) A café supervisor trying to change employee behavior based on customer feedback
B) A supervisor reviewing customer comments about service
C) A production supervisor providing employees with guidelines about the detection of improperly functioning machinery
D) A restaurant manager visiting the kitchen to see how work is progressing

Question 71

Which of the following is true of performance reports?

A) Few supervisors both prepare and request performance reports.
B) Employees do not prepare performance reports.
C) A performance report does not compare performance with performance standards.
D) Useful performance reports clarify rather than conceal problems.

Question 72

Control that focuses on past performance is referred to as _____ control.

A) feedback
B) concurrent
C) positive
D) negative

Question 73

In controlling,a _____ is useful as a kind of performance standard.

A) budget
B) policy
C) procedure
D) rule

Question 74

A summary of performance and comparison with performance standards is referred to as a performance _____.

A) pattern
B) report
C) synopsis
D) record

Question 75

In the context of controlling,symptoms are best defined as:

A) measures of what is expected.
B) the principles by which people distinguish what is morally right.
C) the results of performance evaluation.
D) indications of an underlying problem.

Question 76

Which of the following exemplifies precontrol?

A) A café supervisor greeting customers at their tables
B) A supervisor reviewing customer comments about service and trying to change employee behavior based on customer feedback
C) A production supervisor providing employees with guidelines about the detection of improperly functioning machinery
D) A restaurant manager visiting the kitchen to see how work is progressing

Question 77

Removal of something unpleasant after a desired behavior has occurred is most accurately referred to as:

A) positive reinforcement.
B) negative reinforcement.
C) self-evaluation.
D) team evaluation.

Question 78

Statistical process control is a technique for _____.

A) precontrol
B) concurrent control
C) feedback control
D) negative control

Question 79

_____ is one of the functions of the management philosophy known as total quality management.

A) Precontrol
B) Feedback control
C) Concurrent control
D) Negative control

Question 80

What are the three types of control?

A) Negative, positive, and neutral control
B) Pre, post, and parallel control
C) Strategic, operational, and tactical control
D) Feedback, concurrent, and precontrol