Deck 6: Reaching Goals: Plans and Controls

Question 1

Operational planning is ideally done 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.

Answer 1

C

Question 2

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

A) Middle managers are authorized to take all decisions related to strategic planning.
B) Strategic planning lays down objectives for specific departments and not for the entire firm.
C) Strategic planning covers a comparatively large time span that is usually over a year.
D) Strategic planning is primarily aimed at making employees focus on their role in supporting the company's goals.

Answer 2

C

Question 3

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

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

Answer 3

C

Question 4

The desired accomplishments of the organization as a whole or part of the organization are referred to as its:

A) traditions.
B) objectives.
C) code of ethics.
D) norms.

Question 5

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 6

Operational planning is best defined as the process of:

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

Question 7

At Paradise 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 8

An action plan is best defined as the plan:

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

Question 9

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 10

An effective objective must be ____.

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

Question 11

Procedures are best defined as:

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

Question 12

Which of the following is true about contingency planning?

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

Question 13

Strategic planning is best defined as the process of:

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

Question 14

Which of the following is true about the MBO system?

A) All individuals in the organization work with their managers to set objectives.
B) The managers dictate the objectives to the employees.
C) It is an informal system of setting objectives.
D) The monitoring system is strictly based on personality.

Question 15

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

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

Question 16

At Aqua Inc.,there are specific steps to be completed when applying for a day off.First an employee has to apply to his/her immediate supervisors.After getting their approval,he/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 most appropriately referred to as ____.

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

Question 17

Phil,a supervisor at LM 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.Phil is most likely formulating a(n)____.

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

Question 18

Budgeting is best defined as the process of:

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

Question 19

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 involves short-term goals of one year or less.

Question 20

Which of the following is most likely to be included in the 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 21

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 22

Operational planning is the creation of long-term goals for the organization.

Question 23

Controlling is best defined as the:

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

Question 24

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 25

Supervisors usually have much input into the way an organization does its planning.

Question 26

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 27

Control that focuses on past performance is most accurately referred to as:

A) feedback control.
B) concurrent control.
C) positive reinforcement.
D) negative reinforcement.

Question 28

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 29

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 30

In the context of PERT,the sequence of tasks that will require the greatest amount of time is referred to as the:

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

Question 31

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

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

Question 32

Strategic planning refers to the development of objectives that specify how divisions,departments,and work groups will support organizational goals.

Question 33

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

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

Question 34

When setting performance standards,the 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 35

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

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

Question 36

The middle managers are primarily responsible for the strategic planning of the company.

Question 37

Planning should begin at the top,with a plan for the organization as a whole.

Question 38

In the context of controlling,symptoms 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) indications of an underlying problem.

Question 39

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

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

Question 40

Allowing the supervisor to occasionally ignore a variance,if it is in the best interests of the company is an example of a control that is:

A) flexible.
B) economical.
C) even.
D) concurrent.

Question 41

In context of the MBO system,setting and monitoring the achievement of objectives can be time-consuming and requires a lot of paperwork.

Question 42

Items such as a new building are part of the operating budget of a company.

Question 43

Operational planning is performed by middle managers and supervisors.

Question 44

In a control system,once the performance standards are in place,then supervisors can sit back and relax,because employees will monitor their own performance and report back to their supervisors.

Question 45

In the context of PERT,a delay in the critical path will cause the entire project to fall behind.

Question 46

Effective objectives should be challenging even if they are unachievable.

Question 47

Performance standards are a natural outgrowth of the planning process.

Question 48

In a control system,variance refers to the size of the difference between actual performance and the standard to be met.

Question 49

Detection of problems is at the heart of the control function.

Question 50

In the MBO system,the top management alone sets the objectives for each employee in the company.

Question 51

The objectives set for a department are rigid and do not need to be updated.

Question 52

Employees who are involved in the goal-setting process tend to feel more committed to the objectives.

Question 53

Rules are flexible and are open to interpretation.

Question 54

Standards should measure dimensions of the goods or services that customers care about and that support the company's strategy.

Question 55

From a quality perspective,monitoring performance should include assessing whether customers are satisfied.

Question 56

Planning what to do if the original plan does not work is known as an action plan.

Question 57

Objectives serve as the basis for action plans and contingency plans.

Question 58

The first step in the process of controlling involves the supervisor monitoring actual performance and comparing it with the standards.

Question 59

The supervisor's job includes deciding how to allocate resources to the jobs that will need to be done.

Question 60

A Gantt chart is a scheduling tool that identifies the relationships among tasks as well as the amount of time each task will take.

Question 61

List the four main characteristics of effective controls.

Question 62

Define planning and list the advantages of planning.

Question 63

Whatever actions a supervisor selects to monitor,it is important to give employees feedback a few days after observing a deviation from the standard.

Question 64

Compare and contrast strategic planning to operational planning.

Question 65

Supervisors want controls that give them enough information about performance so that they can understand what is going on in the workplace.This is an example of a control that is acceptable to both the supervisor and the employee.

Question 66

A common problem underlying significant variance is that the standard is too low or too high.

Question 67

Symptom is an indication of an underlying problem.

Question 68

List the main steps involved in the control process.

Question 69

Describe the MBO process.

Question 70

According to the exception principle,the supervisor should take action only when the variance is negative.

Question 71

Supervisors should see that performance reports are as detailed and as complex as possible.

Question 72

Define the term "controlling".List the three different forms of controlling.

Question 73

In all the three types of controlling methods,the controlling process begins only when employees' work is complete.

Question 74

Give one example of each of the following: classroom policies,classroom procedures,and classroom rules.

Question 75

What are the essential characteristics of effective objectives?

Question 76

Characteristics of an effective control are its acceptability and rigidity.

Question 77

A performance report summarizes performance and compares it with performance standards.

Question 78

What are the main activities carried out by the supervisor in the planning process?

Question 79

Elaborate on the various tools of control.

Question 80

Flexibility in controls is important because performance measures can be incompatible.