Management Angelo Kinicki 9e - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Management, 9e (Kinicki) Chapter 5 Planning: The Foundation of Successful Management 1) A business model outlines what customer needs the company will satisfy, the operations of the business, the company …
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Management Angelo Kinicki 9e – Test Bank
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Management, 9e (Kinicki)
Chapter 5 Planning: The Foundation of Successful Management
1) 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.
Answer: TRUE
Explanation: A business model outlines the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses.
Difficulty: 1 Easy
Topic: Business Model
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
2) When using MBO, managers should meet with employees reasonably often—either informally as needed or formally every three months—to review progress.
Answer: TRUE
Explanation: Managers should meet with their employees reasonably often—either informally as needed or formally every three months—to review progress.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) Every five years, the upper-level managers of Zebra 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 will work on developing a strategy.
Answer: TRUE
Explanation: A strategy, or strategic plan, sets the long-term goals and direction for an organization.
Difficulty: 2 Medium
Topic: Strategic Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
4) The upper-level managers of Premium Java are meeting to discuss the company’s long-range goals and vision. Like any organization, Premium Java 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.
Answer: FALSE
Explanation: An organization should adopt planning and strategic management for three reasons: They can (1) provide direction and momentum, (2) encourage new ideas, and (3) develop a sustainable competitive advantage.
Difficulty: 1 Easy
Topic: Strategic Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
5) When Amazon says, “we want to be Earth’s most customer-centric company,” it is stating its code of ethics.
Answer: FALSE
Explanation: Amazon is not stating a code of ethics here. Rather, it is offering its vision statement. A vision statement answers the question, “What do we want to become?” or “Where do we want to go?” Here is Amazon’s vision statement: “Our vision is to be Earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.”
Difficulty: 2 Medium
Topic: Vision Statement
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
6) Tricia, 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.
Answer: FALSE
Explanation: Tactical planning is determining what contributions middle managers and their departments or similar work units can make with their given resources during the next 6 to 24 months.
Difficulty: 1 Easy
Topic: Tactical Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
7) Heather is the store manager for a national grocery retailer, and she received the yearly tactical plan from Sanjay, her district manager. Heather is meeting with her department managers to plan how to implement the specific tasks outlined in Sanjay’s plan for the next year. Heather is engaged in operational planning.
Answer: TRUE
Explanation: Middle managers pass along their tactical plans to first-line managers to do operational planning, whereas first-line managers determine how to accomplish specific tasks with available resources within the next 1 to 52 weeks.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
8) “Increase profits by 15 percent a year for each of the next five years” is an example of a strategic goal.
Answer: TRUE
Explanation: Strategic goals are set by and for top management and focus on objectives for the organization as a whole. For example, the goal of Southwest’s top managers is to ensure that the airline is highly profitable, and for years it has followed the general strategy of (a) keeping costs and fares down, to appeal to budget rather than business travelers, (b) offering a superior on-time arrival record and squeezing more flights per day from every plane, and (c) keeping passengers happy with its cheerful cabin crew and staff.
Difficulty: 2 Medium
Topic: Strategic Goals
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
9) The production plant for Ruby Manufacturing has been located in the same place for over 100 years. The company has just completed its new factory that includes its new corporate offices. The planning required for moving Ruby into a new facility is a single-use plan.
Answer: TRUE
Explanation: A program is a single-use plan encompassing a range of projects or activities. For example, the successful 2018 launch of the Falcon Heavy, the rocket built by entrepreneur Elon Musk’s space exploration company SpaceX, was a program consisting of a number of activities and directed by a single-use plan. Ruby’s program will encompass a range of activities needed to move all of its operations into the new factory.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
10) Candice, owner of Green Solar Panels, has found that some of her department managers were using management by objectives, but the accounting and sales managers were not. Candice can still expect that the MBO program she introduced will yield results.
Answer: FALSE
Explanation: To be effective, an MBO program must be put in place throughout the entire organization. That is, it cannot be applied in just some divisions and departments; it must be in all of them.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
11) Taking a ________ action is setting a very challenging goal for yourself. It might be “I will double the number of hours I study next semester so that I can increase my GPA by at least half a point,” keeping you motivated and focused on achievement.
Answer: E
Explanation: Behavioral objective: Express the objective as the behaviors needed to achieve an outcome. Examples: “Greet all potential automobile customers with a smile and offer to assist.” “Ensure food is stored in seal-proof containers.” “Attend five days of leadership training.” “Learn basics of Microsoft Office software by June 1.”
Difficulty: 2 Medium
Topic: Goal Setting
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
12) Research suggests that when writing out a plan to achieve your biggest goals, it is important to
Answer: B
Explanation: Some steps in the career management process for you to consider are to: (1) identify your options, (2) explore conditions in your target field, (3) create your action plan, and (4) track your progress.
Difficulty: 2 Medium
Topic: Goal Setting
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
13) During her lunch break one afternoon, Alison set a goal of completing all required trainings in the next 90 days by taking two trainings a week. What is she doing?
Answer: A
Explanation: Planning is defined as setting goals and deciding how to achieve them.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
14) With increasing competition in the auto-parts business, Harrison, owner of Discount Tires, is dealing with growing uncertainty. He decides to ________, or meet with his managers to develop a future course of action to meet company goals.
Answer: A
Explanation: Planning is coping with uncertainty by formulating future courses of action to achieve specified results. When you make a plan, you make a blueprint for action that describes what you need to do to realize your goals.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
15) The profits of West Side 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 recognizes that these departments need stronger and closer management, but she also knows 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
Answer: D
Explanation: A poor plan can send an organization in the wrong direction.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
16) Leo is starting a company that leases shared workspaces, and he has approached SCORE, an SBA organization that assists small-business owners in setting up their companies. The SCORE counselors would probably advise Leo, as a new business owner, to
Answer: E
Explanation: Planning and management control are critical to the success of small businesses as only 33 percent of them survive 10 years or more, according to the Bureau of Labor Statistics.
Difficulty: 2 Medium
Topic: Business Plan
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) 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.
Answer: D
Explanation: The business model outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses.
Difficulty: 2 Medium
Topic: Business Model
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
18) Prior to opening her new restaurant, Alice is deciding what items to offer on the menu, the anticipated profits and expenses, the tasks of various employees, and how those jobs will be handled. Alice is creating her
Answer: A
Explanation: The business model outlines the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses.
Difficulty: 1 Easy
Topic: Business Model
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
19) Which of the following is NOT a reason for an organization to adopt planning and strategic management?
Answer: A
Explanation: An organization should adopt planning and strategic management for three reasons: They can (1) provide direction and momentum, (2) encourage new ideas, and above all (3) develop a sustainable competitive advantage. A strategy sets the long-term goals and direction for an organization.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
20) An entrepreneur would create a business plan to outline which of the following?
Answer: D
Explanation: One important type of plan is a business plan, a document that outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success.
Difficulty: 1 Easy
Topic: Business Plan
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
21) The first three steps in planning an organization are (in the correct order):
Answer: D
Explanation: According to Figure 5.1, the correct order of the steps is establishing a mission statement, assessing the current reality, and formulating strategic planning, tactical planning, and operational planning.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
22) The planning process begins with two attributes: a mission statement and a vision statement. What questions are answered with each of these?
Answer: E
Explanation: The planning process begins with two attributes: a mission statement (which answers the question “What is our reason for being?”) and a vision statement (which answers the question “What do we want to become?”).
Difficulty: 2 Medium
Topic: Mission Statement
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
23) A mission statement expresses the
Answer: B
Explanation: A mission statement expresses the purpose of the organization.
Difficulty: 2 Medium
Topic: Mission Statement
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
24) Clothing maker The Gap states that its purpose as an organization is to “create emotional connections with customers around the world through inspiring product design, unique store experiences and competitive marketing.” This is the company’s
Answer: A
Explanation: A mission statement expresses the purpose of the organization. The mission statement for clothing maker The Gap is to “create emotional connections with customers around the world through inspiring product design, unique store experiences and competitive marketing.”
Difficulty: 2 Medium
Topic: Mission Statement
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
25) Cozy Café is a restaurant chain that offers a relaxing environment to enjoy quality coffees, teas, soups, and other menu items. A poster in the front of each restaurant reads, “We will always provide a quality product to help our customers better meet the challenges of their day and will always take the time to offer caring service one person at a time.” This statement is Cozy Café’s
Answer: C
Explanation: A mission statement expresses the purpose of the organization. Whether the organization is for-profit or nonprofit, the mission statement identifies the goods or services the organization provides and will provide. Sometimes it also gives the reasons for providing them (to make a profit or to achieve humanitarian goals, for example).
Difficulty: 2 Medium
Topic: Mission Statement
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
26) During a management meeting, Lester, the CEO of Elite Office Equipment, reminded his management team of where the company wants to go as an organization: “Elite Office Equipment is the expert that customers should always call regarding all their office equipment needs because we strive to understand customer needs and provide the right answers for them.” This statement is Top Office Equipment’s
Answer: E
Explanation: A vision statement expresses what the organization should become, where it wants to go strategically.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
27) 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
Answer: C
Explanation: One Fortune article reads that “vision should describe what’s happening to the world you compete in and what you want to do “about it” and “it should guide decisions.”
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
28) The three levels of ________ are strategic, tactical, and operational.
Answer: A
Explanation: The order of planning is strategic, then tactical, then operational.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) At the strategic level of planning, managers must pay attention to the environment outside the organization, be future oriented, and
Answer: D
Explanation: According to Figure 5.3, strategic planning includes long-term decisions about the overall direction of the organization. At the strategic level of planning, managers must pay attention to the environment outside the organization, be future oriented, and deal with uncertain and competitive conditions.
Difficulty: 2 Medium
Topic: Strategic Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) How often should a company revise its strategic plan?
Answer: E
Explanation: Strategic planning determines what the organization’s long-term goals should be for the next one to five years with the resources it expects to have available. Today, because of the frequency with which world competition and information technology alter marketplace conditions, a company’s strategic planning may have to be done closer to every one or two years than every five years.
Difficulty: 2 Medium
Topic: Strategic Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
31) The upper management of a large national insurance company has passed along the new goal of improving customer service to the district managers. The district managers will set goals to be achieved over the next 6 to 24 months as part of ________ planning.
Answer: B
Explanation: The strategic priorities and policies are passed down to middle managers, who must do tactical planning—that is, they determine what contributions their departments or similar work units can make with their given resources during the next 6–24 months.
Difficulty: 2 Medium
Topic: Tactical Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
32) Operational planning must be completed by first-line managers every ________, and tactical planning is done by middle management every
Answer: C
Explanation: First-line managers do operational planning, which means they determine how to accomplish specific tasks with available resources within the next 1 to 52 weeks. Tactical planning by middle management, where the managers determine what contributions their departments or similar work units can make with their given resources, must be done during every 6 to 24 months.
Difficulty: 1 Easy
Topic: Tactical Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) The upper-level managers of One World Enterprises are meeting for the week to look at the long-term company goals and overall direction of the organization. The CEO has expressed his concern over the economy and has told his managers to look closely at the environment outside the organization before making decisions and to be future oriented. In this meeting, top managers of One World are
Answer: D
Explanation: According to Figure 5.3, strategic planning includes long-term decisions about the overall direction of an organization. Managers need to pay attention to the environment outside the organization, be future oriented, and deal with uncertain and highly competitive conditions.
Difficulty: 2 Medium
Topic: Strategic Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
34) What type of planning is completed by middle managers?
Answer: D
Explanation: Tactical planning is 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.
Difficulty: 1 Easy
Topic: Tactical Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
35) Those who manage the work on the front lines are most involved with what component of the planning process?
Answer: E
Explanation: Operational planning is done by first-line managers to determine how to accomplish specific tasks with available resources within the next 1 to 52 weeks.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
36) If you are tasked with writing employee schedules and to-do lists for managers, what level of planning are you involved in?
Answer: B
Explanation: According to Figure 5.3, operational planning is done by first-line management and directs the daily tasks of nonmanagerial personnel. Decisions are often predictable, following routine procedures.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
37) The three types of MBO objectives are
Answer: D
Explanation: The three types of MBO objectives are performance, behavioral, and learning (see Table 5.3).
Difficulty: 1 Easy
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
38) The top management of Fresh, a food distribution company, has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years. Charles, a division manager for Fresh, 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. Charles’ next step is to roll out his ________ to his staff.
Answer: D
Explanation: Tactical goals are set by and for middle managers and focus on the actions needed to achieve strategic goals.
Difficulty: 3 Hard
Topic: Tactical Goals
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
39) Denise owns several computer repair shops across the Northeast, and she has set a goal for her company of cutting costs in all her locations over the next three years. Denise has set a(n)
Answer: D
Explanation: Strategic goals are set by and for top management and focus on objectives for the organization as a whole.
Difficulty: 2 Medium
Topic: Strategic Goals
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
40) ________ are goals set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.
Answer: E
Explanation: Operational goals are set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
41) Setting a ________, Joy wants to sell 80 percent of her old merchandise prior to the new arrivals shipping.
Answer: A
Explanation: A goal is a specific commitment to achieve a measurable result within a stated period of time.
Difficulty: 1 Easy
Topic: Goal Setting
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
42) ________ can be another term used for a goal.
Answer: D
Explanation: A goal, also known as an objective, is a specific commitment to achieve a measurable result within a stated period of time.
Difficulty: 1 Easy
Topic: Goal Setting
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
43) Aliya is a front-line supervisor in a clothing store. She desires to decrease the time she spends working on doing her daily closing work by 45 minutes. Aliya has set herself a(n)
Answer: E
Explanation: Operational goals are set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.
Difficulty: 2 Medium
Topic: Goal Setting
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
44) Luxottica, a manufacturer of fashionable prescription eyewear, notes on its website, “To see the beauty of life inspires its sustainable and ethical business approach and its corresponding pillars, including a commitment to excellence, visual well-being, social impact, and environmental protection.” This excerpt from the company’s website states Luxottica’s
Answer: C
Explanation: A vision is a long-term goal describing “what” an organization wants to become. It is a clear sense of the future and the actions needed to get there. A vision statement expresses what the organization should become, where it wants to go strategically.
Difficulty: 2 Medium
Topic: Goal Setting
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
45) The management of Computer Rescues, Inc. 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.
Answer: C
Explanation: The operating plan, which is typically designed for a one-year period, defines how you will conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, and market share.
Difficulty: 2 Medium
Topic: Goal Setting
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
46) This month, Susan, the branch manager of Intrepid Car Rentals, has heard several complaints from customers that Intrepid employees do not return calls. Today a good customer told Susan that “my phone calls and e-mails are returned after maybe a week or so.” Hearing enough, Susan 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)
Answer: B
Explanation: A policy is a standing plan that outlines the general response to a designated problem or situation.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
47) We Deliver 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.
Answer: E
Explanation: A procedure (or standard operating procedure) is a standing plan that outlines the response to particular problems or circumstances.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
48) Which of the following would be used to outline a response to a particular circumstance?
Answer: A
Explanation: A procedure (or standard operating procedure) is a standing plan that outlines the response to particular problems or circumstances.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
49) If you want all your stores to only accept returns with receipts, this would be an example of a(n)
Answer: C
Explanation: A rule is a standing plan that designates specific required action.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
50) The head librarian issued a directive that “Absolutely no food or drink are allowed in the library.” She issued this directive because several computers and keyboards in the computer labs, as well as several study cubes, were recently damaged by spilled drinks and food. This is a(n) ________ issued by the librarian.
Answer: C
Explanation: A rule is a standing plan that designates specific required action.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
51) ________ are plans developed for activities that are not likely to be repeated in the future, such as plans for programs or projects.
Answer: D
Explanation: Single-use plans are plans developed for activities that are not likely to be repeated in the future. Such plans can be programs or projects.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
52) Harriet, the store manager, asked Lou to organize the prize giveaways for the store’s grand reopening. Lou is organizing a(n)
Answer: D
Explanation: A project is a single-use plan of less scope and complexity than a program.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
53) A ________ is a single-use plan encompassing a variety of projects or activities.
Answer: A
Explanation: A program is a single-use plan encompassing a range of projects or activities.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
54) The Human Resources department of Superior Catering conducted a training workshop on setting and achieving organization goals. DeJohn, the store manager of the Miami 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?
Answer: E
Explanation: A SMART goal is one that is SMART: Specific, Measurable, Attainable, Results-oriented, and has Target dates.
Difficulty: 3 Hard
Topic: SMART Goal
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
55) Which of the following goals satisfies the SMART criteria?
Answer: E
Explanation: A SMART goal is one that is Specific, Measurable, Attainable, Results-oriented, and has Target dates (SMART). “In the next quarter, our Tucson sales rep will increase sales by 10 percent” is the only goal that satisfies all five criteria.
Difficulty: 3 Hard
Topic: SMART Goal
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
56) Jared told his boss, Maggie, that he is going to start training for the upcoming marathon to be healthier and to have more energy for work. When Maggie asked him about his running history, Jared said, “I really have never run before and don’t exercise much. I just know I need to do something.” Maggie replied, “You should start slowly, maybe setting smaller, realistic exercise goals that are achievable.” Maggie is helping Jared set a
Answer: B
Explanation: A SMART goal is Specific, Measurable, Attainable, Results-oriented, and has Target dates. Whenever possible, goals should be achievable.
Difficulty: 3 Hard
Topic: SMART Goal
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) With setting SMART goals, you should choose only a few goals on which to focus. These goals should be results-oriented and
Answer: D
Explanation: A SMART goal is one that is Specific, Measurable, Attainable, Results-oriented, and has Target dates. Whenever possible, goals should be achievable. With SMART Goals only a few goals should be chosen—say, five for any work unit. And they should be results-oriented, supporting the organization’s vision.
Difficulty: 2 Medium
Topic: SMART Goal
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
58) ________ 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.
Answer: C
Explanation: Management by objectives (MBO) is a four-step process for motivating employee performance.
Difficulty: 1 Easy
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
59) Francis, 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 Francis asked his managers to concentrate on the two first steps of MBO, which are
Answer: E
Explanation: Management by objectives (MBO) is a four-step process in which (1) the manager and employee jointly set objectives for the employee, (2) the manager develops action plans, (3) the manager and employee periodically review the employee’s performance, and (4) the manager makes a performance appraisal and rewards the employee according to results.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
60) Nick, a hotel general manager, has had great success using MBO. Vivian, his district manager, has found that Nick’s employees are highly motivated. Because Nick ________, Vivian is able to discern that he is using MBO.
Answer: B
Explanation: Because the purpose of MBO is to motivate employees, performance that meets the objectives should be rewarded with compliments, raises, bonuses, promotions, or other suitable benefits.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
61) The purpose of MBO is to
Answer: D
Explanation: The purpose of MBO is to motivate rather than control subordinates.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
62) Research on MBO shows that people are impelled to set more difficult goals when
Answer: C
Explanation: With MBO, research shows that an assigned goal from your boss is just as effective as setting goals participatively.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
63) For MBO to be successful, top management must be committed to the program, MBO must be applied organizationwide, and
Answer: A
Explanation: For MBO to be successful, top management must be committed to MBO, MBO must be applied organizationwide, and objectives must cascade.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
64) 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.
Answer: D
Explanation: MBO works by cascading objectives down through the organization; that is, objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
65) All the following are ways to increase your proactive learning skill except
Answer: D
Explanation: Proactive learning helps you develop planning skills. Ways to increase your proactive learning skill are to focus on solutions rather than problems, take the initiative and rely on yourself, set realistic goals and don’t overpromise, and participate and contribute to personal and professional conversations.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-06 Describe how to develop the career readiness competency of proactive learning orientation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
66) To ensure that plans are moving in the right direction, managers can use a(n)
Answer: D
Explanation: The planning/control cycle describes a constant feedback loop designed to ensure plans stay headed in the right direction.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-05 Outline the planning/control cycle.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
67) The planning/control cycle has two planning steps. They are
Answer: C
Explanation: The planning/control cycle has two planning steps: (1) make the plan and then (2) carry out the plan.
Difficulty: 1 Easy
Topic: Planning
Learning Objective: 05-05 Outline the planning/control cycle.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
68) Charmaine, 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 Charmaine doing?
Answer: C
Explanation: Controlling the direction includes comparing the results with the plan, improving future plans, and correcting deviations in the plan being carried out.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-05 Outline the planning/control cycle.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
69) Greg, 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 and plans to improve their yearly job evaluation. At this point, by comparing the six-month results with the past evaluation, Greg is in the ________ step of the planning/control cycle.
Answer: A
Explanation: Controlling the direction includes the corrective action in the fourth step of the cycle, which (a) can get a project back on track before it’s too late by correcting deviations or (b) if it’s too late, can provide data for improving future plans. In this case, at the end of the performance period, the information can be used to improve future plans.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-05 Outline the planning/control cycle.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
70) 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
Answer: D
Explanation: 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 correcting deviations in the plan being carried out or by improving future plans.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-05 Outline the planning/control cycle.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
71) At the end of the company retreat, Dashaun had a blueprint for how to move forward for the year. His primary objective had been met. What do you think his primary objective was?
Answer: A
Explanation: A plan is a document that outlines how goals are going to be met.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
72) You are reading a ________ that outlines your company’s long-term goals and direction. These goals include “Reduce energy consumption in our offices by 20 percent,” “Grow our market share in China from 3 percent to 10 percent,” “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.”
Answer: E
Explanation: A strategic plan, or strategy, sets the long-term goals and direction for an organization.
Difficulty: 3 Hard
Topic: Strategic Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
73) Lauren wants to develop her proactive learning skills in order to increase her career readiness. What would you advise her to do?
Answer: B
Explanation: Proactive learning is a step toward developing critical-thinking skills, a foundation for good planning. One way to develop proactive learning is to participate in and contribute to personal and professional conversations.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-06 Describe how to develop the career readiness competency of proactive learning orientation.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
74) 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: Am I being responsive to the customer? Is it innovative? Can I offer a quality product? After asking these questions, review and identify which question you forgot to ask that would give you a sustainable advantage.
Answer: E
Explanation: Sustainable competitive advantage occurs when an organization is able to get and stay ahead in four areas: (1) in being responsive to customers, (2) in innovating, (3) in quality, and (4) in effectiveness.
Difficulty: 3 Hard
Topic: Strategic Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
75) Based on planning and strategic management principles, which of the following start-up companies has the LEAST potential to have a competitive advantage, to be profitable, and to grow?
Answer: A
Explanation: An organization should adopt planning and strategic management for three reasons: They can (1) provide direction and momentum, (2) encourage new ideas, and above all (3) develop a sustainable competitive advantage. The cat-sitting service does not address these three matters; it is easily imitated and therefore does not pass the encourage new ideas test.
Difficulty: 3 Hard
Topic: Strategic Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
76) The Publix chain of supermarkets has stated, “We will not knowingly disappoint you. If for any reason your purchase does not give you satisfaction, the full purchase price will be cheerfully refunded immediately upon request.” This proclamation is Publix’s
Answer: B
Explanation: A values statement, also called a core values statement, answers the question, “What values do we want to emphasize?” It expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world.
Difficulty: 2 Medium
Topic: Values
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
77) Which of the following is an example of a mission statement?
Answer: E
Explanation: A mission statement expresses the purposes of the organization. It answers the question “What is our reason for being?” or “Why are we here?”
Difficulty: 2 Medium
Topic: Mission Statement
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
78) A short-term goal usually spans ________ while a long-term goal typically spans ________.
Answer: C
Explanation: Long-term goals, often called strategic goals, span 1 to 5 years and focus on achieving the company’s strategic plan. Short-term goals, sometimes called tactical or operational goals, generally span 12 months.
Difficulty: 1 Easy
Topic: Goal Setting
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
79) You receive a memo that reads as follows: “In recent months, our customer evaluations have dropped, and our sales have decreased by 10 percent. To restore our business, we will do the following: (1) We will contact all of our customers and offer a 10 percent discount on their next purchase. (2) For the customers who spend more than $1,000 per year, we will invite them to join our Insiders’ Club, which gives them discounted tickets to concerts and sporting events.
(3) Effective immediately, we will begin staffing our call center 24 hours a day, 7 days a week.
(4) Customer-service personnel will be given more discretion in helping customers resolve problems, with minimal interference from supervisors.” This memo is a(n)
Answer: D
Explanation: An action plan defines the course of action needed to achieve a stated goal.
Difficulty: 1 Easy
Topic: Goal Setting
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
80) Which of the following is intended for one-time use and is not likely to be repeated in the future?
Answer: C
Explanation: A program is a single-use plan encompassing a range of projects or activities that are not likely to be repeated in the future.
Difficulty: 2 Medium
Topic: Goal Setting
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
81) Which of the following is an example of a rule?
Answer: C
Explanation: A rule is a standing plan that designates specific required action.
Difficulty: 2 Medium
Topic: Goal Setting
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
82) While preparing a self-assessment of your job performance the previous year, you are required to list three goals for the coming year. You list the following as one of your goals: “I will triple sales in my territory by the end of the next fiscal year.” Based on the SMART criteria, what is the problem with this goal?
Answer: E
Explanation: A SMART goal is one that is Specific, Measurable, Attainable, Results-oriented, and has Target dates. Tripling sales in one year is most likely not attainable.
Difficulty: 3 Hard
Topic: SMART Goal
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
83) Management by objectives (MBO) and goal cascading will NOT work without an effective
Answer: D
Explanation: Management by objectives and goal cascading will not work without an effective goal-setting process.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
84) Which of the following is not a step in the process of management by objectives (MBO)?
Answer: A
Explanation: Management by objectives (MBO) is a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee’s performance, and (4) the manager makes a performance appraisal and rewards the employee according to results.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
85) ________ is the overall goal of MBO.
Answer: A
Explanation: The purpose of MBO (management by objectives) is to motivate rather than control subordinates.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
86) ________ are at the top of the organization and get more specific as they move toward ________.
Answer: E
Explanation: Cascading goals is the process of ensuring that the strategic goals set at the top level align, or “cascade,” downward with more specific short-term goals at lower levels within an organization, including employees’ objectives and activities.
Difficulty: 1 Easy
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
87) Which sequence of goals is consistent with “cascading” goals that begin at the top of the organization?
Answer: A
Explanation: Top managers set strategic goals, which are translated into divisional goals, which are translated into departmental goals, which are translated into individual goals.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
88) As a manager, you meet with each of your team members quarterly to review their progress toward their written and agreed-upon goals. One of your employees, Julie, had a goal of increasing sales in her territory by 10 percent in the first quarter of the year. However, when you review Julie’s sales numbers, you see that her sales have actually gone down. You know Julie is a hard worker and has an excellent relationship with her customers. When you sit down to discuss her performance, she explains what is happening in her territory. A major automobile manufacturer, which once provided 25,000 jobs, has moved its operations to Mexico and laid off all 25,000 of its workers. As a result, the economy in Julie’s region has become quite depressed, and the residents are living off their savings. Taking the steps of the planning/control cycle into account, what is your best course of action with Julie?
Answer: D
Explanation: In the planning/control cycle, managers control the direction by taking corrective action in two ways—namely by correcting deviations in the plan being carried out or by improving future plans. In this case, improving future plans is the best decision.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-05 Outline the planning/control cycle.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
89) Which of the following is a tactical goal?
Answer: A
Explanation: A tactical goal, also known as a short-term goal or operational goal, typically spans 12 months and is connected to strategic (long-term) goals in a hierarchy known as a means-end chain.
Difficulty: 2 Medium
Topic: Strategic Goals
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
90) How would you describe Amazon’s commitment to continuous evolution?
Answer: D
Explanation: A strategic plan represents an “educated guess” about long-term goals or direction to pursue for the survival or prosperity of the organization.
Difficulty: 2 Medium
Topic: Strategic Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
91) Kaleb is preparing for an interview. He has reviewed his résumé, prepared his questions, and thought through answers for the top questions most asked in interviews. He feels well prepared. At the interview, he is asked to respond to a scenario question in which a problem is presented. Why is the interviewer asking this type of question?
Answer: A
Explanation: Critical thinking/problem solving is a foundational career-readiness skill for good planning. The competency of critical thinking/problem solving is defined as sound reasoning to analyze situations, make decisions, and solve problems. Critical thinkers don’t make quick or rash decisions during the planning process. Instead, they consider alternative solutions to problems and remain open-minded. They remain open-minded by obtaining and considering a wide range of information before making a judgment.
Difficulty: 3 Hard
Topic: Proactive Learning Orientation
Learning Objective: 05-06 Describe how to develop the career readiness competency of proactive learning orientation.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
92) Grayson wants to rethink the visitor experience to his theme parks. He meets with the customer service team who represents the parking attendants, the ticket sales agents, the information booth workers, the grounds keepers, and the ride attendants. Grayson wants them to change how they interact with the park patrons. He tells them all to, “Welcome each visitor to the park with a smile, a kind word, and an offer of assistance.” How would you describe his change?
Answer: E
Explanation: Behavioral objectives focus on expressing the objective as the behaviors needed to achieve an outcome. Examples: “Greet all potential automobile customers with a smile and offer to assist.” “Ensure food is stored in seal-proof containers.” Attend five days of leadership training.” “Learn basics of Microsoft Office software by June 1” (see Table 5.3).
Difficulty: 3 Hard
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
93) Mark Zuckerberg stated that Facebook’s early idea was to “Move fast and break things.” He set that as his strategy for the company. Was he using the concept of strategy correctly?
Answer: D
Explanation: A strategy sets the long-term goals and direction for an organization. “Move fast and break things” was a Facebook slogan for a time; it is not a strategy.
Difficulty: 3 Hard
Topic: Strategic Goals
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
94) Jeanine, the operations manager of an auto dealership, has been redesigning operations. She feels there are many places where the dealership can cut costs to save money. One of these is all the “perks” for customers like free coffee, freshly popped popcorn, and a children’s play area. Assume you are the general manager of the dealership (Jeanine’s boss) and an advocate of the planning/control cycle, what would you do?
Answer: B
Explanation:
The planning/control cycle has four steps. The first two are planning steps: (1) make the plan; and (2) carry out the plan. The next two are control steps: (3) control the direction by comparing results with the plan; and (4) control the direction by taking corrective action in two ways—namely, by (a) correcting deviations in the plan being carried out, or (b) improving future plans (See Figure 5.5). Here, Jeanine already has a plan, which is to stop the perks. The remaining steps in the cycle need to be implemented.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-05 Outline the planning/control cycle.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
95) The textbook makes four key recommendations to help you become a proactive learner. Use these recommendations to set a goal of obtaining a job after graduation that is interesting and provides a good salary. Given that this is a long-term goal, be sure to explain how you will use the advice between now and the time you graduate.
Answer: You can become a proactive learner by putting into practice the following four key recommendations:
Students answers will vary about how they will put these practices into place.
Research suggests that writing approximately two paragraphs outlining your goals will help you feel more confident. Some advice for writing out—and achieving—your biggest goals are as follows: (1) Make a concrete plan—which embeds your intentions firmly in your memory. (2) Break your goals into manageable bites—and set out clear steps that you can use to record and track your progress. (3) Put something of value on the line—such as money that will be forfeited if you are unsuccessful. (You can deposit the money at stickK.com.) (4) Bundle your temptations or rewards to your efforts—such as tying your reading of pleasurable trashy novels to when you do gym workouts. (5) Seek social support—pursue your goal with the help of a mentor or fellow striver.
Student’s individual goals will vary, but here is an example:
Because I plan to become a CPA (certified public accountant), I need to get an A in my principles of accounting course next semester. To accomplish this goal, I will cut back my hours at work from 20 per week to 10 per week during the fall term. I will use those 10 extra hours to study. Two weeks before the term begins, I will visit the local bookstore or Amazon and purchase at least two comprehensive study guides that will give me tips for studying accounting, as well as a lot of practice with the concepts. To be sure I have enough time to study for my accounting course in the fall, I will take 12 credits instead of 15, and I will make up the 3 credits by taking one course during the winter session. Early in the semester, I will find another student in my class who wants to succeed and will form a study partnership with him or her. Finally, I will be strategic about the instructor whose class I sign up for. I will research who are the best accounting instructors, and I’ll make a priority of getting into one of those classes, even if it means taking a course early in the morning or in the evening.
Difficulty: 3 Hard
Topic: Planning
Learning Objective: 05-06 Describe how to develop the career readiness competency of proactive learning orientation.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
96) Describe the components of a business model.
Answer: A business model outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses. It also describes the industry you’re entering, how your product will be different, how you’ll market to customers, how you’re qualified to run the business, and how you will finance your business.
Difficulty: 2 Medium
Topic: Business Model
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
97) You plan to open a new business. Before you can approach the small-business loan center, you will have to have a strong plan. Write a one-paragraph business model description for a business of your choice.
Answer: A business model outlines the need the firm will fill, the operations of the business, its components and functions, and the expected revenues and expenses. It also describes the industry you’re entering, how your product will be different, how you’ll market to customers, how you’re qualified to run the business, and how you will finance your business.
Answers will vary regarding the business model, but here is one suggestion.
Jake’s Personal Fitness will cater to the needs of busy professionals who want to begin an exercise regimen for any reason, whether they are looking to lose weight, tone up, or fight diseases like Type 2 diabetes. There is significant competition in this business, so I will distinguish my business by making large companies’ human resource departments for my first sales calls. I will propose that they offer a small space in their building in which I can offer personal training to their employees at the employees’ convenience—they will not even have to leave their workplace in order to accomplish their fitness goals. I am qualified to run this business because I have a certificate in personal training from the National Association of Sports Medicine, and I have worked at a local gym for more than three years, watching how the trainers get results with their clients. I will finance my business primarily out of my savings; I will need to invest in weights and other equipment that I will bring with me from location to location. As the business becomes more successful, I will invest in additional equipment to help my clients meet their goals.
Difficulty: 3 Hard
Topic: Business Model
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
98) This question contains two parts; be sure to answer each part. First, define strategic management, explaining how managers from all parts of the organization are involved and the three types of planning that are a part of strategic management. Next, imagine that you are planning to open a bagel shop. Give specific examples of each of the three types of planning with regard to your bagel shop.
Answer: Strategic management is a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals. This definition doesn’t mean that managers at the top dictate ideas to be followed by people lower down. Indeed, precisely because middle managers in particular are the ones who will be asked to understand and implement the strategies, they should also help formulate them. Strategic management is a process that involves managers from all parts of the organization—in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization. Thus, planning covers not only strategic planning (done by top managers) but also tactical planning (done by middle managers) and operational planning (done by first-line managers). Planning and strategic management derive from an organization’s mission and vision about itself. (See Figure 5.1.)
Answers will vary with regard to the bagel shop, but here is one possible answer.
In the early days of my bagel shop, it will be a small business and I will be the only manager, which will make me responsible for all levels of planning: strategic, tactical, and operational. At the strategic level, I will determine where my competitors are located and what they charge. I also will determine where people gather so that I can look for a site that will motivate local people to stop in for a bagel or a cup of soup. I know that competitors like Bruegger’s are entrenched, so I have to find a way to improve on their services and offer goods and/or services that will make customers come to my bagel shop instead of Bruegger’s. Once I’ve got my site chosen, my tactical planning will revolve around signing a lease for the shop, getting it designed, and building through word of mouth regarding the grand opening via social media like Facebook and Twitter. In terms of operational planning, I have to hire two part-time bagel makers, as I cannot possibly work at the shop 24/7, even though I realize that I will be spending most of my life there until the shop is established and successful. I’ll contact the local community college and advertise the positions on the job services board there. I can’t afford to pay more than minimum wage, but I can promise the bagel makers free bagels.
Difficulty: 3 Hard
Topic: Strategic Management
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
99) Contrast strategic, tactical, and operational planning, explaining the time frame associated with each type.
Answer: Strategic planning is done by top management. Using their mission and vision statements, top managers do strategic planning—they determine what the organization’s long-term goals should be for the next 1 to 5 years with the resources they expect to have available. It should communicate not only general goals about growth and profits but also ways to achieve them.
Tactical planning is done by middle management. The strategic priorities and policies are then passed down to middle managers, who must do tactical planning—that is, they determine what contributions their departments or similar work units can make with their given resources during the next 6 to 24 months.
Operational planning is done by first-line management. Middle managers then pass these plans along to first-line managers to do operational planning—that is, they determine how to accomplish specific tasks with available resources within the next 1 to 52 weeks.
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
100) This question has multiple parts; be sure to answer each one.
First, explain how a company’s approach to planning and its mission become translated into action plans.
Second, imagine that you have just purchased a local pizza restaurant. There are three other similar restaurants in the city, and yours is the smallest. Write a mission statement and a vision statement, and create an action plan for achieving your vision.
Answer: An organization’s reason for being is expressed in a mission statement. What the organization wishes to become is expressed in a vision statement. From these are derived strategic planning, then tactical planning, and finally operational planning. The purpose of each kind of planning is to specify goals and action plans that ultimately pave the way toward achieving an organization’s vision.
Regarding the pizza restaurant, answers will vary, but here are some possibilities:
Mission statement: “The mission of Moon Pie’s is to be the first choice of families looking for a relaxed, family-friendly environment in which to enjoy America’s favorite meal.”
Vision statement: “While Moon Pie’s will always remain a family-friendly restaurant, we have a deeper vision: to educate the public about the benefits of enjoying pizza made from only the purest, farm-fresh ingredients.”
To achieve our mission and vision, we will make sure all of our marketing materials show pictures of families, as well as groups of teenagers and parties of younger children. We want parents to see Moon Pie’s as the best place to have their children’s birthday party. We will hire someone to play games with the children at each party, which will also have an educational element about food and nutrition. We plan to grow, and to open more shops in the future, but never to lose our local, welcoming, family-friendly atmosphere.
Difficulty: 3 Hard
Topic: Mission Statement
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
101) Super Sandwiches trains its employees to always put the sandwich condiments on the sandwich in the same order. The company is also known for treating its employees well and enjoys some of the lowest employee turnover in the industry. As a result, it is one of three companies being featured in a 20-minute piece on a national newscast to discuss this honor. Identify the types of standing plans and single-use plans. Discuss how Super Sandwiches might apply a standing plan and a single-use plan. Include examples in your response. (That is, make all your examples relevant to a sandwich shop.)
Answer: Standing plans are plans developed for activities that occur repeatedly over a period of time. Standing plans consist of policies, procedures, and rules.
A policy is a standing plan that outlines the general response to a designated problem or situation. Example: “This workplace does not condone swearing.” This policy is a broad statement that gives managers a general idea about what is allowable for employees who use bad language, but gives no specifics.
A procedure (or standard operating procedure) is a standing plan that outlines the response to particular problems or circumstances. Example: Super Sandwiches specifies exactly how a sandwich should be made, including the order in which the condiments are applied.
A rule is a standing plan that designates specific required action. Example: “No smoking is allowed anywhere in the building.” This allows no room for interpretation.
Single-use plans are plans developed for activities that are not likely to be repeated in the future. Such plans can be programs or projects.
A program is a single-use plan encompassing a range of projects or activities. Example: Super Sandwiches may decide to open a new shop in a different town. A wide range of activities will be required to get the new shop open.
A project is a single-use plan of less scope and complexity than a program. Example: Super Sandwiches may decide to offer diversity training to all employees. The project may entail each employee attending a two-hour class at a local community college.
Difficulty: 3 Hard
Topic: Planning
Learning Objective: 05-03 Discuss the types and purposes of goals and plans.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
102) This question contains two parts; be sure to answer both.
First, define a SMART goal by listing its five key qualities.
Next, imagine that you have been promoted to manage a hair salon and you want to set goals for your employees, who are the hairstylists, manicurists, and receptionists. Write three SMART goals for your employees that focus on revenue, customer satisfaction, and quality of services.
Answer: SMART goals are specific (rather than vague), measurable (quantifiable), attainable (challenging but realistic and attainable), results-oriented (support the vision), and have target dates (deadlines).
The SMART goals for the hair salon will vary, but here are three possibilities:
By the end of the month, create a 10-question customer-service questionnaire that we will give to all clients who come into the salon. The questionnaire should not only ask how satisfied the customers are but also how we can improve our services.
In September, run a return customer promotion, where each client who refers a friend will receive $10 off their next service. The increase in new clients would offset the loss of revenue.
To ensure that each client gets personalized attention, starting next week each receptionist will greet each client by name upon arrival. At the end of each session, stylists will answer questions about home care to keep the client’s style looking like they just walked out of the salon.
Difficulty: 3 Hard
Topic: SMART Goal
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
103) Describe the four types of objectives used in MBO and give examples of each type.
Answer: Management by objectives (MBO) is a four-step process in which (1) the manager and employee jointly set objectives for the employee, (2) the manager develops action plans, (3) the manager and employee periodically review the employee’s performance, and (4) the manager makes a performance appraisal and rewards the employee according to results. The purpose of MBO is to motivate rather than control subordinates. Examples from students will vary.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
104) Imagine that you are a manager of a local clothing store with the responsibility for four employees. Outline a detailed plan for how you would implement MBO to increase overall store revenue by 10 percent by the end of the year.
Answer: The four-step process of MBO is as follows: (1) The manager and employee jointly set objectives for the employee, (2) the manager develops action plans, (3) the manager and employee periodically review the employee’s performance, and (4) the manager makes a performance appraisal and rewards the employee according to results.
Answers will vary for the second half of the question, but here is one possibility:
First, I will meet with each of my employees to share the store’s overall goal of increasing revenue by 10 percent and get their buy-in. Next, I will work with each employee to figure out how he or she can increase revenue by at least 10 percent. I have noticed that Sara is particularly good with children, Mark is good with women, Francine is good with men, and Maria is good with senior citizens. I may ask them to “specialize” in each demographic, and come to me with ideas for how to better serve each group and increase sales. Together we’ll create the action plans. Because this is a new way of doing business, I’ll meet with each employee monthly to review their progress and make adjustments to the plans if necessary. Because I want to motivate everyone to work as a team, I will put an incentive system in place that rewards hard work; each team member who meets his or her goal each month will get one-half a paid personal day.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
105) Professor Adams, a business teacher, meets with her students’ mid-quarter to give out midterm reports and discuss with students how to improve their grade for the remainder of term. Also, she likes to meet with her students each week after midterm to discuss how they are progressing on suggestions related to the midterm reports. Discuss how Professor Adams is using the planning control steps of the planning/control cycle with her students.
Answer: The planning/control cycle has two planning steps (1 and 2) and two control steps (3 and 4), as follows: (1) Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control the direction by taking corrective action in two ways—namely, by correcting deviations in the plan being carried out, or by improving future plans.
Professor Adams made her plan before the term ever started; her “plan” for the course is found in the syllabus. She carries out her plan by teaching, and students do their part by learning. By meeting with each student after the midterm, she can assess each student’s progress—in effect, comparing their results with the objectives laid out in her course syllabus. Professor Adams will not need to take corrective action with students who received an A or a B on the exam; with these students she will offer praise and compliments. For students who received a C or lower on the exam, Professor Adams will talk about optional materials that can help students improve their results, such as tutoring sessions, peer study groups, library resources, and so on.
Difficulty: 3 Hard
Topic: Planning
Learning Objective: 05-05 Outline the planning/control cycle.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
106) California’s dairy farmers famous tagline “Got milk?” is an example of a slogan, not a business plan or a strategy. Briefly describe the differences among these key terms: planning, a business plan, and a strategy.
Answer: Planning is defined as setting goals and deciding how to achieve them, or coping with uncertainty by formulating future courses of action to achieve specific results. A business plan is a document that outlines a firm’s proposed goals, the strategy for achieving them, and the standards for measuring success. A strategy sets the long-term (one to five years) goals and directions for an organization.
Difficulty: 2 Medium
Topic: Strategic Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
107) This question contains two parts; be sure to answer both.
First, describe how to develop the career readiness competency of proactive learning orientation.
What key recommendations should be put into practice to help you become more proactive?
Answer: Proactive learners seek information and knowledge so that they expand their knowledge base, which makes them more effective planners. The point is that good planning requires critical thinking, which in turn requires a proactive learning orientation. This process ultimately results in expanding the career readiness competency of task-based/functional knowledge.
You can become a proactive learner by putting into practice the following four key recommendations:
Difficulty: 2 Medium
Topic: Strategic Planning
Learning Objective: 05-01 Discuss the role of strategic management.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
108) You are the manager of your college’s bookstore. Create a mission statement, a vision statement, and a values statement for the services you manage.
Answer: Background information: A mission statement expresses the purpose of the organization—its reason for being. Facebook’s mission statement is “to give people the power to share and make the world more open and connected.” A vision statement is a long-term goal describing what an organization wants to become. It is a clear sense of the future and the actions needed to get there. Hilton’s vision statement is “To fill the earth with the light and warmth of hospitality.” A values statement expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world. Patagonia’s values statement includes “the pursuit of ever great quality in everything we do” and “relationships built on integrity and respect.”
Students’ individual responses regarding the bookstore will vary, but here is one possible
Answer:
Mission statement: “We exist to serve the college’s diverse student body, to provide one-stop shopping for all their course needs, as well as a convenient place for them to purchase their everyday needs without having to leave campus.”
Vision statement: “While we are now a traditional bricks-and-mortar store, we want to become the Amazon of our campus. Students will be able to place their orders online, and we will deliver their entire order by the end of the day.”
Values statement: “We value education, and we believe that free materials on the Internet will never have the quality of professionally published materials that have been written by experts and published by companies that understand the needs of college students. We believe in the sanctity of intellectual property, and we will never condone the pirating or illegal copying of any work that is protected by copyright.”
Difficulty: 2 Medium
Topic: Planning
Learning Objective: 05-02 Compare mission, vision, and value statements.
Bloom’s: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
109) Cascading is essential to promoting consistency in goals. Which three criteria must be met for goal cascading to be successful? Describe and explain each criterion.
Answer: First, top management must be committed to the goals. Second, the goals must be applied throughout the organization; it cannot be selectively applied to just some divisions or departments. Third, goals must cascade. That is, they must start at the top of the organization and then flow downward through division, department, and individual goals. When cascading is successful, individual employees understand how their work contributes to overall corporate success.
Difficulty: 2 Medium
Topic: Goal Setting
Learning Objective: 05-04 Describe SMART goals and their implementation.
Bloom’s: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
