Deck 6: Reaching Goals Plans and Controls

Question 1

For objectives to be effective, they should be

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

Answer 1

A

Question 2

Identify a true statement about procedures in an organization.

A) They are broad guidelines for how to deal with stress and are flexible and open to interpretation.
B) They free managers and employees from making decisions about activities they carry out repeatedly.
C) They are the plans to review all objectives, looking for areas where something might go wrong.
D) They are specific statements of what to do or not do in a given situation in an organization.

Answer 2

B

Question 3

"Operational planning" is best defined as the process of

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

Answer 3

B

Question 4

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

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

Question 5

Differentiate between operational plans and strategic plans.

A) Operational plans are made by top managers, while strategic plans are made by middle managers and supervisors.
B) Operational plans are more specific and focus on a shorter time frame, while strategic plans focus on long-term goals for the organization.
C) Operational plans develop objectives for the organization as a whole, while strategic plans develop objectives for a division, department, or work group.
D) Operational plans specify the quality of goods or services the organization is to provide, while strategic plans specify how to achieve organizational goals.

Question 6

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

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

Question 7

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

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

Question 8

"Rules" are best defined as

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

Question 9

"Procedures" are best defined as

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

Question 10

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

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

Question 11

In the context of planning in organizations, making objectives ________ means indicating who is to do what and by what time to accomplish the objective.

A) observable
B) specific
C) measurable
D) challenging

Question 12

The difference between a policy and a rule is that

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

Question 13

________ are objectives with a broad focus.

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

Question 14

"Policies" are best defined as

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

Question 15

"Strategic planning" is best defined as the process of

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

Question 16

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

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

Question 17

Operational planning is performed by the

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

Question 18

Identify a true statement about planning.

A) Planning should begin at the bottom, with a plan for each department.
B) Planning helps managers use resources efficiently, thus minimizing wasted time and money.
C) Expensive software packages are required for supervisors to plan projects efficiently.
D) The act of planning forces managers to spend time focusing completely on current projects.

Question 19

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

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

Question 20

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

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

Question 21

An "action plan" is best defined as the plan

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

Question 22

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

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

Question 23

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

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

Question 24

Identify a true statement about management by objectives (MBO).

A) The performances of managers and employees are measured against these objectives.
B) Managers dictate these objectives to employees.
C) Senior-level managers in the organization work with the board of directors to set these objectives.
D) Setting and monitoring the achievement of these objectives does not require paperwork.

Question 25

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

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

Question 26

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

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

Question 27

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

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

Question 28

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

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

Question 29

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

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

Question 30

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

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

Question 31

For the effective use of management by objectives, ________.

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

Question 32

Which of the following is true of action plans?

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

Question 33

Two of the most widely used techniques for scheduling are

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

Question 34

Which of the following best defines budgeting in organizations?

A) It is the process of allocating money resources.
B) It is the process of formulating an agenda.
C) It is the process of allocating equipment resources.
D) It is the process of allocating human resources.

Question 35

Identify a true statement about contingency planning.

A) It is more efficient and effective to create a written contingency plan for every detail of operations than to memorize it.
B) The supervisor creates a contingency plan by answering the questions what, who, when, where, and how.
C) One useful technique for contingency planning is to review all objectives, looking for areas where something might go wrong.
D) Contingency plans are the original plans developed by top managers for the organization as a whole.

Question 36

Why do some people dislike management by objectives?

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

Question 37

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

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

Question 38

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

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

Question 39

Which of the following refers to contingency planning?

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

Question 40

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

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

Question 41

To be effective, performance standards should be

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

Question 42

When setting performance standards, a supervisor must avoid

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

Question 43

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

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

Question 44

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

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

Question 45

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

A) Gantt chart.
B) program evaluation and review technique (PERT).
C) planar map.
D) run chart.

Question 46

Which of the following is true of the exception principle?

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

Question 47

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

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

Question 48

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

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

Question 49

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

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

Question 50

Which of the following is the final step in the control process?

A) Supervisors monitor actual performance and compare it with the standards.
B) Supervisors respond, either by reinforcing success or by making some adjustment to bring performance and the standards into line.
C) Supervisors meet with their employees to discuss the year's goals and ways the work unit should contribute to meet the goals.
D) Supervisors establish performance standards, which are measures of what is expected.

Question 51

"Controlling" is best defined as the

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

Question 52

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

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

Question 53

What should supervisors do to ensure that employees understand objectives and consider them achievable?

A) Supervisors should involve the employees in the goal-setting process.
B) Supervisors should involve the top managers in the goal-setting process.
C) The objectives should be more specific at higher levels of the organization.
D) The objectives should be less challenging to stimulate employees to do their best.

Question 54

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

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

Question 55

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

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

Question 56

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

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

Question 57

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

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

Question 58

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

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

Question 59

Which of the following steps is the core of the control process?

A) Monitoring performance
B) Setting standards
C) Communicating performance standards
D) Providing feedback

Question 60

________ is at the heart of the control function.

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

Question 61

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

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

Question 62

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

A) develop work standards that are not challenging and specific.
B) use it as the basis for reinforcing or changing behavior.
C) use it to monitor performance before establishing standards.
D) uncover problems as soon as customers and management discover them.

Question 63

Identify a true statement about performance reports in organizations.

A) Few supervisors both prepare and request performance reports.
B) Supervisors hide performance problems in these reports to convince managers that the group needs more resources or training.
C) A performance report does not compare performance with performance standards.
D) Supervisors should highlight and explain any variances from performance standards in these reports.

Question 64

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

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

Question 65

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

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

Question 66

Which of the following exemplifies concurrent control?

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

Question 67

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

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

Question 68

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

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

Question 69

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

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

Question 70

Which of the following exemplifies feedback control?

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

Question 71

What are the three types of control?

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

Question 72

Which of the following exemplifies precontrol?

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

Question 73

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

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

Question 74

Jake, the restaurant manager at Tulips le Beignet, greets his customers at their tables, visits the kitchen to see how work is progressing, and makes the effort to fix any issues as soon as they occur. Which of the following types of control does Jake use in this scenario?

A) Feedback control
B) Precontrol
C) Statistical quality control
D) Concurrent control

Question 75

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

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

Question 76

Statistical process control is a technique for ________.

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

Question 77

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

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

Question 78

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

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

Question 79

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

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

Question 80

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

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