Download Chapter 7... Show Chapter 7 Managerial Planning and Goal Setting True/False Questions 1. The Europa Hotel survived terrorism by carefully planning security measures for guests, employees, and the building. Answer: True 2. Type: F Level: 1 Page: 238 Type: F Level: 2 Page: 238 Type: F Level: 1 Page: 238 Type: F The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational level. Answer: True 7. Page: 238 The act of determining the organization goals and the means for achieving them is called goal setting. Answer: False 6. Level: 2 Goals specify today's means; plans specify future ends. Answer: False 5. Type: F A desired future state that the individual or organization attempts to realize is a goal. Answer: True 4. Page: 237 Because everything else stems from leading, of the four management functions, leading is considered the most fundamental. Answer: False 3. Level: 2 Level: 1 Page: 238 Type: F The complexity of today’s environment and uncertainty about the future overwhelm many managers and lead them to focus on long-term goals and plans instead of operational issues and short-term results. Answer: False Level: 2 Page: 239 Type: F Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 185 8. Because they provide legitimacy, rationale for decisions, and an increase in motivation and commitment, goals and plans are valuable to an organization. Answer: True 9. Type: F Level: 2 Page: 241 Type: F Level: 2 Page: 241 Type: F Level: 2 Page: 241 Type: F Level: 1 Page: 242 Type: F Level: 1 Page: 242 Type: F Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. Answer: False 17. Page: 240 A broad statement of where the organization wants to be in the future refers to a mission statement. Answer: False 16. Level: 2 Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole. Answer: True 15. Type: F An organization's mission describes its reason for existence. Answer: True 14. Page: 240 The company's philosophy as well as purpose is often expressed in mission statements. Answer: True 13. Level: 2 A broad definition of the organization's values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization refers to a Business Strategic Statement. Answer: False 12. Type: F Plans provide a standard of assessment. Answer: False 11. Page: 239-240 A plan tells "why" to achieve the goal. Answer: False 10. Level: 1 Level: 2 Page: 242 Type: F The department manager's tool for daily and weekly operations is called the operational plan. Answer: True Level: 1 Page: 243 Type: F Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 186 18. A means-end chain is when lower-level goals lead to the accomplishment of higher-level goals. Answer: True 19. Type: F Level: 2 Page: 246 Type: F Level: 2 Page: 246 Type: F Level: 1 Page: 247 Type: F Level: 2 Page: 247 Type: F Level: 3 Page: 247 Type: A To review progress is the final step in the MBO process. Answer: False 27. Page: 246 An example of a qualitative goal is “the University will provide quality education at a fair price.” Answer: True 26. Level: 2 The most difficult step in an MBO process is reviewing progress. Answer: False 25. Type: F MBO refers to managing by opportunity. Answer: False 24. Page: 245 The goals should be easy, for employees to feel motivated, so that they can achieve them easily which in turn increases their motivation level. Answer: False 23. Level: 2 To be effective, goals must be set for every aspect of employee behavior or organizational performance. Answer: False 22. Type: F Goals are most effective when they are specific, measurable, challenging and linked to rewards. Answer: True 21. Page: 244 Specific and measurable goal characteristics apply only to the lower-level goals. Answer: False 20. Level: 1 Level: 1 Page: 248 Type: F Problems with MBO occur when the company faces rapid change. Answer: True Level: 1 Page: 249 Type: F Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 187 28. Organic organizations and values that encourage participation can harm the MBO process. Answer: False 29. Level: 3 Page: 251 Type: A Level: 2 Page: 253 Type: F Level: 1 Page: 253 Type: F Level: 2 Page: 254 Type: A Level: 2 Page: 255 Type: F Companies should ensure the physical safety and emotional needs of people and/or animals after implementing a crisis management plan. Answer: True 37. Page: 250-251 Type: F In the containment stage of crisis management, the organization should “get the awful truth out” to employees only as soon as possible. Answer: False 36. Level: 1 The XYZ Corporation should create a crisis management group that is not crossfunctional, but does work together well under pressure. Answer: False 35. Type: F The three stages of crisis management are prevention, preparation, and containment. Answer: True 34. Page: 250 The first stage in crisis management planning includes building relationships and designating crisis management team and spokesperson. Answer: False 33. Level: 1 If Kari, manager at Tip Top Roofing, wanted to develop a contingency plan for Tip Top, she would need to look at factors such as new equipment, the economy, and the company workers’ compensation cases. Answer: True 32. Type: F Contingency plans can also be considered as scenarios. Answer: True 31. Page: 249 Standing plans define company responses to specific situations such as natural emergencies or competitive setbacks. Answer: False 30. Level: 2 Level: 2 Page: 255 Type: F The CEO of Alex Aquariums, Inc. must do all of the planning for the company because that is the way to do things in today’s workplace. Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 188 Answer: False 38. Type: A Level: 2 Page: 256 Type: A In a complex and competitive business world, traditional planning done by a select few is the only planning that works. Answer: False 40. Page: 256 Turtle Terrace should use traditional planning since that is the type of planning every company uses. Answer: False 39. Level: 2 Level: 2 Page: 256 Type: F A temporary group consisting of line managers responsible for developing strategic plans is called a centralized planning group. Answer: False Level: 1 Page: 256 Type: F Multiple Choice Questions 1. Which of these refers to a desired future state that an organization attempts to realize? a. b. c. d. e. Plan Vision statement Goal Mission statement Idea Answer: c 2. specify future ends and a. b. c. d. e. Page: 238 Type: F specify today's means. Goals, plans Plans, goals Planning, organizing Ideas, behaviors Mission, vision Answer: a 3. Level: 1 Level: 2 Page: 238 Type: F A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n) Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 189 a. b. c. d. e. goal. plan. mission. vision. objective. Answer: b 4. Level: 1 Page: 238 Type: F The planning process begins with which of these? a. b. c. d. e. The development of operational goals The development of a mission statement Communication of goals to the rest of the organization A company-wide meeting Brainstorming Answer: b The the a. b. c. d. e. Level: 2 Page: 238 Type: F is the basis for the strategic level of goals and plans which in turn shapes and level. goal, mission, tactical objective, operational, mission operational goal, mission and tactical mission, tactical, operational tactical plan, operational, mission Answer: d 7. Type: F Brainstorming Organizing Planning Developing a mission A blueprint Answer: c 6. Page: 238 ______ is the act of determining the organization's goals and the means for achieving them. a. b. c. d. e. 5. Level: 1 Level: 2 Page: 238 Type: F Which of these are primarily responsible for strategic goals/plans? a. b. c. d. Middle management Board of directors Consultants Senior management Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 190 e. Lower management Answer: d 8. Page: 239 Type: F Middle management Board of directors Consultants Senior management Lower management Answer: a Level: 1 Page: 239 Type: F Ruby is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of goals? a. b. c. d. e. Operational goals Tactical plans Strategic goals Mission statement Vision Answer: a Level: 2 Page: 239 Type: A ______ symbolizes the legitimacy of the organization to external audiences. a. b. c. d. e. Operational goals Tactical plans Strategic goals Mission statement Tactical goals Answer: d 12. Level: 1 Which of these is/are primarily concerned with tactical goals/plans? a. b. c. d. e. 11. Type: F Middle management Board of directors Consultants Senior management Lower management Answer: e 10. Page: 238 ______ is primarily responsible for operational goals/plans. a. b. c. d. e. 9. Level: 1 Level: 2 Page: 239 Type: F Rosalie is a manager at GMG Gaming. She recently attended a seminar on goal setting. Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 191 She wishes to use goals to provide a sense of direction to her staff. She is using goals as a. b. c. d. e. a way to legitimize her department. a source of motivation. a standard of performance. a guide to action. impress others. Answer: d 13. Level: 2 a goals statement. a values statement. an income statement. a mission statement. a competitive-edge statement. Answer: d Level: 1 Type: F Corporate values Company philosophy Company purpose All of the above a and b only Answer: d Level: 1 Page: 241 Type: F The organization's reason for existence is known as a. b. c. d. e. the organization's value. the organization's vision. the organization's mission. the organization's goal. the organization's service. Answer: c 16. Page: 241 Which of these are described by mission statements? a. b. c. d. e. 15. Type: A A statement that identifies distinguishing characteristics of an organization is known as a. b. c. d. e. 14. Page: 240 Level: 2 Page: 241 Type: F "We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's a. b. c. mission. strategic goals. tactical goals. Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 192 d. e. strategic plans. tactical plans. Answer: a 17. Level: 3 Page: 241 Type: A Which of these refers to a broadly stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organizations? a. b. c. d. e. Mission statement Goal statement Management by objective Goal setting Corporate competitive-value statement Answer: a Level: 1 Page: 241 Type: F Page: 241 Type: F At the top of the goal hierarchy is the a. b. c. d. e. strategic goals. tactical goals. operational goals. mission. employee goals. Answer: d 20. Type: A tactical goals. operational goals. mission. tactical plans. operational plans. Answer: c 19. Page: 241 "We seek to become the premier business school in the west" is an example of a statement you are most likely to find in the organization's a. b. c. d. e. 18. Level: 3 Level: 2 Which of these represent the broad statements of where the organization wants to be in the future? a. b. c. d. e. Operational goals Tactical goals Strategic goals Operational goals Tactical plans Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 193 Answer: c 21. . Level: 2 Page: 242 Type: F A long-term time frame is most closely associated with a. b. c. d. e. operational plans. tactical plans. strategic plans. mission plans. tactical goals. Answer: c Level: 2 Page: 242 Type: F Which of these are called the action steps by which an organization intends to attain its strategic goals? a. b. c. d. e. Tactical goals Operational goals Tactical plans Operational plans Strategic plans Answer: e 24. Level: 1 Page: 242 of goals lead to the attainment of goals. a. b. c. d. e. Operational, strategic, tactical Tactical, operational, strategic Strategic, tactical, operational Operational, tactical, strategic None of the above. Answer: d 25. Type: F strategic goals tactical goals operational goals competitive goals none of the above Answer: a 23. Page: 242 The official goals of the organization are best represented by the a. b. c. d. e. 22. Level: 1 Level: 3 Type: F goals, which in turn lead to the attainment Page: 242-243 Type: F Goals that define the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals is called Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 194 a. b. c. d. e. strategic goals. tactical goals. operational goals. a mission. a plan. Answer: b 26. Level: 2 Page: 242 Type: F ______ represent plans developed at the organization's lower levels that specify action steps toward achieving operational goals and that support tactical planning activities. a. b. c. d. e. Tactical plans Strategic plans Operational plans Supervisory plans Organizational plans Answer: c Level: 1 Page: 243 Type: F Which of these refer to specific results expected from individuals? a. b. c. d. e. Operational goals Tactical goals Strategic goals Operational plans Mission statements Answer: a 29. Type: F operational tactical strategic lower-level top-level Answer: b 28. Page: 242 Beth is a middle manager at Egg Elements Corporation. She is most likely responsible for the achievement of goals. a. b. c. d. e. 27. Level: 1 Level: 2 Page: 243 Type: F Lower-level goals should lead to the achievement of higher-level goals. This is called a. b. c. linking pin theory. a value-based chain. a means-end chain. Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 195 d. e. all of the above. none of the above. Answer: c 30. Level: 2 Page: 245 Type: A Tabu is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the current quarter. She is unhappy because she knows that the most any salesperson has sold in one quarter in the past is $150,000. Her goal of $265,000 is probably a. b. c. d. e. not specific and measurable. not realistic. irrelevant. lacking a specific time period. does not cover key result area. Answer: b Level: 3 Page: 246 Type: A You are violating which of these goal characteristics when you attempt to create goals for every aspect of employee behavior? a. b. c. d. e. Specific and measurable Linked to rewards Defined time period Cover key result areas Challenging but realistic Answer: d 33. Type: F Specific and measurable Challenging but realistic Covers key result areas Defined time period None of the above Answer: a 32. Page: 244 Which of these is lacking in the goal "profits should be increased in the coming year?" a. b. c. d. e. 31. Level: 2 Level: 2 Page: 246 Type: F Samuel set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals? a. b. c. d. Specific and measurable Challenging but realistic Covers key result areas Defined time period Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 196 e. Linked to rewards Answer: c 34. Page: 245-246 Type: F rewards. salary increases. promotions. all of the above. b and c only. Answer: d Level: 2 Page: 246 Type: F Which of these is the first step in the MBO process? a. b. c. d. e. Setting goals Developing action plans Appraising overall performance Reviewing progress None of the above Answer: a Level: 1 Page: 247 Type: F In using MBO, objectives should be set a. b. c. d. e. by the supervisor. by the employee. jointly by the supervisor and the employee. by the accounting department. by top management. Answer: c 38. Level: 2 The ultimate impact of goals depended on the extent to which goal achievement is linked to a. b. c. d. e. 37. Type: A goals should be challenging but not unreasonably difficult. goals should be set for every aspect of employee behavior. specific and measurable. cover key results area. linked to rewards. Answer: b 36. Page: 246 All of the following are characteristics of effective goal setting EXCEPT a. b. c. d. e. 35. Level: 2 Level: 2 Page: 247 Type: F Which of these is a method of management whereby managers and employees define Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 197 goals for every department, project, and person and use them to monitor subsequent performance? a. b. c. d. e. Organizational planning Management by objectives Goal setting Mission development Vision development Answer: b 39. Level: 2 Page: 247-248 Type: A Frostburg Fireplaces has used MBO for the past year. Top management just finished evaluating overall performance. The next step in the MBO process should be a. b. c. d. e. to develop new action plans. to develop new objectives based on the review of last year's performance. to begin a new MBO "cycle", using the same objectives as last year. to wait several months to allow information to be digested. none of the above. Answer: b Level: 2 Page: 248 Type: A Which is the final step in the MBO process? a. b. c. d. e. Appraise overall performance Develop an action plan Review progress Set goals Conduct periodic checkups Answer: a 42. Type: F Developing a mission statement Developing tactical goals Reviewing progress Reviewing operational plans None of the above Answer: c 41. Page: 247 Yard Fence Corporation is currently implementing an MBO program. Managers and employees jointly set objectives and develop action plans, and goal achievement is evaluated on an annual basis. Yard Fence is missing which major activity that must occur in order for MBO to be successful? a. b. c. d. e. 40. Level: 1 Level: 1 Page: 248 Type: F One major problem with MBO is Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 198 a. b. c. d. e. it discourages individual creativity. it does not work well in constantly changing environments. it decreases employee motivation. it does not work well in non-profit organizations. none of the above. Answer: b 43. Level: 2 Page: 249 Type: F Which of these is true about single-use plans? a. b. c. d. e. They are developed to achieve a set of goals that are unlikely to be repeated in the future. They are used to provide guidance for tasks performed repeatedly within the organization. They define plans that define company responses to specific situations, such as emergencies or setbacks. They are most important in the organizations. None of the above. Answer: a Level: 2 Page: 250 Type: F Standing plans are a. b. c. d. e. plans that are developed to achieve a set of goals that are unlikely to be repeated in the future. plans that used to provide guidance for tasks performed repeatedly within the organization. plans that define company responses to specific situations, such as emergencies or setbacks. most important in the organizations. none of the above. Answer: b 46. Type: F Performance can be improved at all company levels. Employees are motivated. Efforts are focused on activities that will lead to goal attainment. Operational goals are able to displace strategic goals. Individual and department goals are aligned with company goals. Answer: d 45. Page: 249 Which of the following is NOT one of the benefits of MBO? a. b. c. d. e. 44. Level: 2 Level: 1 Page: 250 Type: F A project is an example of a Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 199 a. b. c. d. e. policy. standing plan. procedure. single-use plan. rule. Answer: d 47. Numerous a. b. c. d. e. are likely to be part of an overall . Level: 2 Page: 250 Type: F single-plan use. standing plan. program. procedure. project. Answer: b Level: 2 Page: 250 Type: A Which of these define boundaries within which to make a decision? a. b. c. d. e. Programs Policies Rules Procedures Project Answer: b 50. Type: F California Creamery requires that all absent employees bring a note from their doctor when returning to work. This is an example of a a. b. c. d. e. 49. Page: 250 programs, project policies, project standing plans, program projects, program programs, rule Answer: d 48. Level: 1 Level: 2 Page: 250 Type: F An example of a ______ is a statement supporting the organization's efforts in the area of sexual harassment. a. b. c. procedure rule policy Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 200 d. e. single-use plan program Answer: c 51. Level: 2 Page: 250 Type: A Which of these are true about contingency plans? a. b. c. d. e. They are developed to achieve a set of goals that are unlikely to be repeated in the future. They are used to provide guidance for tasks performed repeatedly within the organization. They define company responses to specific situations, such as emergencies or setbacks. They are most important in the organizations. None of the above. Answer: c Level: 1 Page: 251 Type: F Contingency plans are also referred to as a. b. c. d. e. standing plans. rules. scenarios. procedures. operationally tactical plans. Answer: c 54. Type: F procedure. rule. policy. single-use plan. project. Answer: b 53. Page: 250 "No food and/or drinks in the classroom" is an example of a a. b. c. d. e. 52. Level: 2 Level: 1 Page: 252 Type: F The crisis management plan should be a ________ that specifies the actions to be taken, and by whom, if a crisis occurs. a. b. c. d. e. vague, verbal plan detailed, verbal plan long, difficult to read plan vague, written plan detailed, written plan Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 201 Answer: e 55. Level: 2 Page: 255 Type: F During the ______ stage of his company’s crisis management, Jesse Winkler must ensure that the stakeholders’ physical and emotional needs are met. a. b. c. d. e. prevention preparation containment response all of the above Answer: c Level: 2 Page: 255 Type: A Traditionally, if Tara, CEO of Butterfly Pillows, needed to conduct corporate planning, it would be performed by all of the following EXCEPT a. b. c. d. e. central planning departments. decentralized planning groups. top executives. consulting groups. the president of the company. Answer: b 58. Type: F Meet safety and emotional needs Return to business Set up effective communications systems Get the awful truth out Activate the crisis management plan Answer: c 57. Page: 253 Which of the following is not a step in the containment stage in crisis management? a. b. c. d. e. 56. Level: 1 Level: 2 Page: 256 Type: A The traditional approach to corporate planning was to a. b. c. d. e. have a decentralized planning staff. have a centralized planning department. set up a planning task force. set up planning committees. use TQM approach. Answer: b Level: 1 Page: 256 Type: F Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 202 59. A group of planning specialists who develop plans for the organization as a whole is known as a. b. c. d. e. management by objectives. planning task force. decentralized planning staff. centralized planning department. total quality management group. Answer: d 60. Type: F Centralized planning department Decentralized planning staff Planning task force Centralized planning committee TQM Answer: b Level: 2 Page: 256 Type: A All of the following are ways in which companies can bring about relentless drive for progress EXCEPT a. b. c. d. e. create an environment that encourages people to experiment and learn. make continuous improvement a way of life. avoid stretching goals. design a new role for planning staff. All of the above are acceptable ways. Answer: c 62. Page: 256 Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function? a. b. c. d. e. 61. Level: 1 Level: 2 Page: 257 Type: F Baltimore Brewery allows its line managers to take responsibility for strategic planning. This approach is consistent with which of the following? a. b. c. d. e. Centralized planning department Decentralized planning staff Planning task force Centralized planning committee Command-and-control Answer: c Level: 2 Page: 259 Type: A Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 203 63. Which of these refers to a temporary group consisting of line managers responsible for developing strategic plans? a. b. c. d. e. Planning task force Decentralized planning staff Centralized planning department Schewhart planning group Total quality management group Answer: a Level: 1 Page: 259 Type: F Scenario Questions Scenario-Elaine Eastman The new program would be focused around MBO concepts. Elaine Eastman had been a manager at ABCD for ten years and she was not all certain if this new MBO approach was going to fit her department. She had strong commitment to achieving the company's objectives, but she also knew her employees well enough to know that some didn't share the same commitment. 1. Elaine can anticipate enjoying the advantages of MBO which include a. b. c. d. e. increased orientation toward goal achievement. performance can improve at all company levels. employees are more motivated. a & c are correct. a, b, and c are correct. Answer: e 2. Elaine can anticipate and work to prevent the problems of MBO which include a. b. c. d. e. increase in paperwork that leads to a reduction of energy. a decrease in communication between managers and employees. greater conflict because of opposing goals. all of the above. none of the above. Answer: a 3. Type: A Type: A If Elaine dictates or suggests the goals for her employees, she can expect Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 204 a. b. c. d. e. increased motivation from her workers. decreased motivation from her workers. decreased frustration for her workers. decreased intragroup conflict. none of the above. Answer: b 4. Type: A In the MBO process, after the first step of setting objectives is accomplished, the next step that Eliane should expect is a. b. c. d. e. reviewing progress toward company goals. appraising overall performance. developing action plans. having a company party to celebrate. none of the above. Answer: c Type: A Short-Answer Questions 1. A(n) is a desired future state that the organization attempts to realize. Answer: goal 2. Page: 238 A(n) is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions. Answer: Plan 3. Page: 238 The act of determining the organization's goals and the means for achieving them is referred to as . Answer: planning 4. Page: 238 ______ and plans are the responsibilities of middle managers. Answer: Tactical goals 5. Page: 239 Operational plans that focus on specific tasks and processes that help to meet tactical and strategic goals are developed by ______ managers and supervisors. Answer: front-line Page: 239 Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 205 6. ______ and ______ facilitate employees’ identification with the organization and help motivate them, provide a sense of direction, and allow managers to learn what the organization is trying to accomplish. Answer: Goals; plans 7. Page: 239 List the five reasons explicit goals and plans are important. Answer: Explicit goals and plans can serve the following functions: legitimacy, source of motivation and commitment, guide to action, rationale for decisions, and standard of performance. Page: 239-240 8. describes the organization's reason for existence. Answer: mission 9. Page: 241 A(n) _______ is a broadly stated definition of basic business scope and operations that distinguishes the organization from others of a similar type. Answer: mission statement 10. Broad statements describing where the organization wants to be in the future are called . Answer: strategic goals 11. Page: 242 are designed to help execute major strategic plans and to accomplish a specific part of the company's strategy. Answer: Tactical plans 14. Page: 242 Goals that define the outcomes that major departments must achieve in order for the organization to reach its overall goals are known as _______ goals. Answer: tactical 13. Page: 242 _______ define the action steps by which an organization intends to attain its strategic goals. Answer: Strategic plans 12. Page: 241 Page: 243 The specific results expected from departments, work groups, and individuals are the goals. Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 206 Answer: operational 15. plans are developed at the lower levels of the organization to specify action steps toward achieving operational goals and to support tactical plans. Answer: Operational 16. Page: 243 Page: 243 List the five characteristics of effective goals. Answer: Goals should be (1) specific and measurable; (2) they should cover key result areas; (3) they should be challenging but realistic; (4) they should have a defined time period; and (5) they should be linked to rewards. Page: 246 17. is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. Answer: Management by objectives 18. The most difficult step in MBO is _______. Answer: setting goals 19. Page: 247 Page: 247 List the four major activities that must occur in order for MBO to succeed. Answer: (1) Set goals, (2) develop action plans, (3) review progress, and (4) appraise overall performance. Page: 247-248 20. Managers believe that they are better oriented toward goal achievement when __________ is used. Answer: management by objectives 21. ______ plans are used to provide guidance for work-related tasks that are performed repeatedly within the organization. Answer: Standing 22. Page: 247 Page: 250 plans are developed to achieve a set of goals that are not likely to be repeated in the future. Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 207 Answer: Single-use 23. _______ are ongoing plans that are used to provide guidance for tasks performed repeatedly within the organization. Answer: Standing plans 24. Page: 250 Plans that define company responses to specific situations, such as emergencies, setbacks, or unexpected conditions are called plans. Answer: contingency 25. Page: 250 Page: 251 A special type of contingency plan that is used when events are sudden and devastating and require immediate response is called ________. Answer: crisis management planning Page: 253 26. What are the three stages of crisis management? Answer: Prevention, Preparation, and Containment Page: 253 27. In the ______ stage of crisis management, the company needs to care for the emotional and physical safety of its stakeholders. Answer: containment 28. Page: 255 ________ are groups of planning specialists who report directly to the CEO or president of a company. Answer: Centralized planning departments Page: 256 29. Although ______ planning approaches are still popular with some organizations, ______ planning are being criticized as inappropriate for today’s fast-paced environment. Answer: traditional, formal 30. A group of planning specialists assigned to major departments and divisions to help managers develop their own strategic plans is called . Answer: decentralized planning staff 31. Page: 256 Page: 256 ______ planning done by a few individuals in a complex and competitive business Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 208 environment no longer works. Answer: Traditional 32. Page: 256 List the steps of the new workplace approach to planning. Answer: First, start with a strong mission. Next, set stretch goals. Third, create a culture that encourages people to experiment and learn. Next, design a new role for planning staff followed by, make continuous improvement a way of life. Embrace event driven planning. Finally, total support and commitment to the planning process from top management. Page: 257-259 33. A temporary group of line managers who have the responsibility of developing a strategic plan is known as a(n) _______. Answer: planning task force 34. Page: 229 List the six guidelines for planning in today’s workplace. Answer: Start with a strong mission, set stretch goals, create a culture that encourages learning, embrace event-driven planning, use temporary task forces, and remember that planning still starts and stops at the top. Page: 257-259 Essay Questions 1. In what ways do plans and goals benefit an organization? ANSWER: Plans and goals benefit the organization in several ways. First they provide legitimacy and a reason for existence. They also provide a source of motivation and commitment, provide guides for action and decision making, and they set a standard of performance. Level: 2 2. Page: 239-240 Compare the four levels of goals and plans. ANSWER: Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 209 The highest level is the mission statement, which defines the organization's basic business scope and operations and specifies its reasons for existence. The second level is the level of strategic goals and plans. Those pertain to the organization as a whole and specify where the organization wants to be in the future. The third level is the tactical level, with a focus on outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. The fourth and lowest level is the operational level, involving specific measurable results for departments, work groups, and individuals. Level: 3 3. Page: 241-244 Briefly define the characteristics of an effective goal. ANSWER: Effective goals are precisely defined and allow for measurable performance. They focus on the key result areas that contribute most to desired performance. They should be challenging but not unreasonably difficult. Finally, they should specify the time period that they cover and they should be tied to valued rewards. Level: 2 4. Page: 245-246 List and define the four major activities that must occur in order for management by objectives (MBO) to succeed. ANSWER: The first step is setting goals. The setting of goals involves employees at all levels and should incorporate the principles of effective goal setting. Goals should be jointly determined by manager and employee, so as to increase the employee's level of commitment. The second step is developing action plans. These action plans will specify how the goals are to be achieved. Next, a progress review is important to make sure that the action plans are working. They may be formal or informal and the action plan should be changed if necessary. The last step is to determine if the goals have been achieved within the specified time period. This appraisal should factor into the setting of the next period's goals, allowing for feedback into the setting of the next set of goals. Level: 3 5. Page: 247-248 Define the new planning paradigm and explain the rationale behind it. ANSWER: The new planning paradigm has four components. First, start with a strong mission. Next, stretch goals. Third, create an environment that encourages people to experiment and learn. Next, design a new role for planning staff. Finally, make continuous Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 210 improvement a way of life with total support and commitment of top management for the planning process. This paradigm is based upon the principle of decentralization. It strives to involve workers at every level of the company. Due to the volatility of the business environment, dynamic, timely plans are needed by today's organizations. The complexity of the problems and challenges facing today's organizations mandates that all employees, with their individual perspectives and talents, be involved. Level: 3 Page: 256-259 Chapter Seven * Managerial Planning and Goal Setting Test Bank * Page 211 What is the impact of achieving a goal?Setting goals helps trigger new behaviors, helps guides your focus and helps you sustain that momentum in life. Goals also help align your focus and promote a sense of self-mastery. In the end, you can't manage what you don't measure and you can't improve upon something that you don't properly manage.
What are the factors that affect goal setting?10 factors that influence the attainability of life goals. Health.. Community.. Personal growth.. Social relationships.. Image.. Wealth.. Family.. What are the 4 main purposes of goal setting?According to Barney and Griffin, organizational goals serve four basic functions; they provide guidance and direction, facilitate planning, motivate and inspire employees, and help organizations evaluate and control performance.
What is the impact of goal setting on interpersonal and organizational?Setting goals can help motivate employees
Researchers have found that setting goals can help employees feel a greater connection to their organization. Not only does this contribute to increased optimism in the office, but it also encourages better employee performance.
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The ultimate impact of goals depends on the extent to which goal achievement is linked to:
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