Question 1

HomeTurf is a retailer of wooden furniture. The firm currently has three stores and has plans to set up two more within the next eight months. This is an example of a(n) ________.
A) intermediate-term objective
B) short-sighted objective
C) long-term objective
D) short-term objective
E) suboptimal objective

Accepted Answer

The answer of HomeTurf is a retailer of wooden furniture....

Question 2

Which of the following refers to targets to be achieved within a time frame of five to seven years?
A) short-term objectives
B) intermediate-term plans
C) long-term objectives
D) operational goals
E) medium-term objectives

Accepted Answer

Long-term objectives typically refer to goals set to be achieved over a period of five to seven years or more.

Question 3

Which of the following guidelines helps employees know exactly how managers will determine whether an objective has been reached?
A) Let people responsible for attaining objectives have a voice in setting them.
B) State objectives as specifically as possible.
C) Pinpoint expected results.
D) Set objectives only in relation to other organizational objectives.
E) Specify when goals are expected to be achieved.

Accepted Answer

Pinpoint expected results helps employees know exactly how managers will determine whether an objective has been reached.

Question 4

Which of the following is the rationale behind letting the people responsible for attaining certain objectives have a voice in setting them?
A) Employees are more capable than managers and are better at establishing objectives.
B) Managers are motivated when their employees are allowed to have a say in goal setting.
C) Employees can showcase their managerial potential when they are allowed to set their own goals.
D) Managers tend to set objectives that are often easily achievable and do not challenge employees.
E) The people responsible for attaining the objectives know their job better than the managers do.

Accepted Answer

The rationale behind letting the people responsible for attaining certain objectives have a voice in setting them is that these employees typically have a better understanding of their job and the resources available to them. As a result, their input can help to set more realistic and challenging goals that are more likely to be achieved.

Question 5

"To lower the rate of employee attrition within the organization by 5 percent through the use of effective employee retention and motivation techniques." Which of the following is a valid criticism of this objective?
A) It is not stated in a simple fashion.
B) It does not provide a time frame for achieving objectives.
C) It is not related to specific actions.
D) It is not achievable.
E) It does not pinpoint expected results.

Accepted Answer

The objective does not provide a time frame for achieving the 5 percent reduction in employee attrition, which is a necessary piece of information to measure the success and progress towards achieving the objective.

Question 6

According to Drucker, management should set objectives that indicate the company's responsibilities to its customers and society but should not specify the extent to which the company intends to live up to these responsibilities.

Accepted Answer

Drucker emphasized that management should not only set objectives indicating the company's responsibilities to customers and society but also specify the extent to which the company intends to live up to these responsibilities, ensuring accountability and clear direction.

Question 7

Plaxo Industries is a large-scale manufacturer of commercial kitchen equipment. Its products are currently sold in Europe and the Middle East. Plaxo wants to foray into the Asian market, and the company's management has set a target of entering the Chinese market by 2018. This is an example of a(n) ________.
A) short-term objective
B) intermediate-term objective
C) long-term objective
D) medium-term objective
E) operational objective

Accepted Answer

Plaxo Industries' goal of entering the Chinese market by 2018 is a long-term objective because it involves a significant expansion of the company's operations and is set for a target date that is several years into the future. Short-term objectives are typically set for a few weeks or months. Intermediate-term objectives are set for one to three years, while medium-term objectives are set for three to five years. Operational objectives are specific and measurable actions that lead to the achievement of larger goals.

Question 8

Which of the following is NOT a guideline for establishing quality objectives?
A) Let people responsible for attaining objectives have a voice in setting them.
B) State objectives as specifically as possible.
C) Pinpoint expected results.
D) Set objectives that are not related to other organizational objectives.
E) Specify when goals are expected to be achieved.

Accepted Answer

Setting objectives that are not related to other organizational objectives would be counterproductive and may lead to confusion and lack of alignment within the organization. All other options are valid guidelines for establishing quality objectives.

Question 9

According to Drucker, which of the following statements is an example of an organizational objective related to productivity?
A) to reduce overall inventory management costs by 15 percent
B) to increase the use of environmentally friendly workplace practices
C) to lower the rate of attrition in the organization within the next 6 months
D) to increase the unit's monthly output by 10 percent within the next 12 months
E) to reduce total overhead costs by 5 percent by the end of the year

Accepted Answer

Drucker defines productivity as a key organizational objective that involves increasing the output of goods or services for a given level of input. Option D is the only statement that directly addresses increasing productivity by increasing the unit's monthly output by 10 percent within the next 12 months. Options A, E, and B are related to cost reduction and environmental concerns, which are important objectives but not directly related to productivity. Option C is related to employee turnover rate, which is a human resources objective and not directly related to productivity.

Question 10

Intermediate-term objectives are targets to be achieved in ________.
A) one year or less
B) one to five years
C) three to seven years
D) five to seven years
E) five to ten years

Accepted Answer

Intermediate-term objectives are targets to be achieved in one to five years.

Question 11

In order to increase the quality of their objectives, managers should ________.
A) set employees' goals as high as possible
B) ensure that they set objectives entirely by themselves
C) establish goals that are within easy reach
D) let the people responsible for attaining the objectives have a voice in setting them
E) avoid relating objectives to specific actions

Accepted Answer

In order to increase the quality of objectives, managers should involve the employees responsible for attaining them in the goal-setting process. This helps to ensure that the objectives are realistic, meaningful, and achievable. Setting goals that are within easy reach (choice C) may not challenge employees enough, while setting goals too high (choice A) may be demotivating and unattainable. Setting objectives entirely by themselves (choice B) may not take into account the perspectives and ideas of those who will actually be working towards them. Avoiding relating objectives to specific actions (choice E) may lead to ambiguity and confusion about what needs to be done to achieve the objectives.

Question 12

Organizations exist for a variety of purposes, but many see ________ as their primary objective.
A) increasing shareholder wealth
B) making a profit
C) creating policies and procedures
D) writing objectives
E) advertising products

Accepted Answer

Many organizations see making a profit as their primary objective as it ensures financial sustainability and growth. While creating policies, writing objectives, and advertising products are important for achieving this objective, they are not the primary objective themselves. Increasing shareholder wealth may be a secondary objective, but not all organizations prioritize this over making a profit.

Question 13

When setting objectives, managers should state objectives as specifically as possible because ________.
A) it ensures that employees have explicit directions for what they should do
B) it ensures that employee productivity will vary according to the needs of the situation
C) it allows employees to make inferences about what they should do to accomplish their goals
D) it allows them to set the pace for employees' work
E) it reduces the risk of suboptimization

Accepted Answer

Stating objectives specifically ensures that employees have explicit directions for what they should do and helps to reduce the risk of suboptimization. Specific objectives also help managers to measure progress accurately and to identify when and where corrective action is required.

Question 14

One of the short-term objectives of Alport Corporation, a manufacturer of construction equipment, is "to achieve a 15 percent return on investment (ROI) by September 2011." According to Drucker, this objective relates to ________.
A) innovation
B) productivity
C) market standing
D) managerial performance
E) profitability

Accepted Answer

The objective of achieving a 15% return on investment relates to profitability, which is concerned with the financial performance of the company. The other options (innovation, productivity, market standing, managerial performance) do not directly relate to this objective.

Question 15

It is important to provide employees with a time frame for accomplishing their objectives because ________.
A) it instills a sense of urgency in employees
B) it allows employees to pace themselves accordingly
C) it make the goals more meaningful
D) it reduces the risk of suboptimization
E) it motivates employees to improve their performance

Accepted Answer

The answer of It is important to provide employees with...

Question 16

Tandem Industries is a cycle manufacturer. As part of its planning activities, it sets an objective to increase its market share by 5 percent within 3 years. This is an example of a(n) ________.
A) short-term objective
B) intermediate-term objective
C) long-term objective
D) suboptimal objective
E) principled objective

Accepted Answer

An intermediate-term objective is set to be achieved within 1 to 5 years, making choice B the best option. Choices A and C are incorrect because a 3-year time frame falls under the category of intermediate-term objectives rather than short-term or long-term objectives. Choice D is incorrect because there is no indication that the objective is suboptimal, and choice E is incorrect because there is no reference to principled objectives.

Question 17

Which of the following guidelines for establishing quality objectives helps in keeping the risk of suboptimization to a minimum?
A) relating objectives to specific actions whenever necessary
B) stating objectives as specifically as possible
C) setting objectives only in relation to other organizational objectives
D) specifying when goals are expected to be achieved
E) stating objectives clearly and simply

Accepted Answer

Setting objectives only in relation to other organizational objectives helps to ensure that the goals being set are aligned with the overall strategy and vision of the organization, reducing the risk of suboptimization where individual departments or areas may work towards their own goals without considering the impact on the organization as a whole.

Question 18

Short-term objectives are targets to be achieved within five to seven years.

Accepted Answer

Short-term objectives are typically aimed to be achieved within a year or less, not five to seven years.

Question 19

According to Drucker, which of the following key areas for organizational objectives is more personal and subjective in nature, and hence likely to arouse managerial opposition?
A) productivity
B) innovation
C) worker performance and attitude
D) physical and financial resources
E) market standing

Accepted Answer

Drucker believed that worker performance and attitude is a key area for organizational objectives that is more personal and subjective in nature. It can be difficult for managers to measure and evaluate these factors, and there may be resistance to implementing changes to improve them. Other areas such as productivity, physical and financial resources, innovation, and market standing can be more objective and easier to measure.

Question 20

A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months. Which of the following is a valid criticism of this objective?
A) It does not pinpoint expected results.
B) It is not stated in simple fashion.
C) It is not achievable.
D) It does not relate to specific actions.
E) It is not related to other organizational objectives.

Accepted Answer

The objective specifies a desired outcome (increase sales by 10%) but does not outline specific actions or strategies that the sales team should take to achieve this goal.

Quiz 5: Plans and Planning Tools

HomeTurf is a retailer of wooden furniture. The firm currently has three stores and has plans to set up two more within the next eight months. This is an example of a(n) ________.

Which of the following refers to targets to be achieved within a time frame of five to seven years?

Which of the following guidelines helps employees know exactly how managers will determine whether an objective has been reached?

Which of the following is the rationale behind letting the people responsible for attaining certain objectives have a voice in setting them?

"To lower the rate of employee attrition within the organization by 5 percent through the use of effective employee retention and motivation techniques." Which of the following is a valid criticism of this objective?

According to Drucker, management should set objectives that indicate the company's responsibilities to its customers and society but should not specify the extent to which the company intends to live up to these responsibilities.

Which of the following is NOT a guideline for establishing quality objectives?

According to Drucker, which of the following statements is an example of an organizational objective related to productivity?

Intermediate-term objectives are targets to be achieved in ________.

In order to increase the quality of their objectives, managers should ________.

Organizations exist for a variety of purposes, but many see ________ as their primary objective.

When setting objectives, managers should state objectives as specifically as possible because ________.

One of the short-term objectives of Alport Corporation, a manufacturer of construction equipment, is "to achieve a 15 percent return on investment (ROI) by September 2011." According to Drucker, this objective relates to ________.

It is important to provide employees with a time frame for accomplishing their objectives because ________.

Tandem Industries is a cycle manufacturer. As part of its planning activities, it sets an objective to increase its market share by 5 percent within 3 years. This is an example of a(n) ________.

Which of the following guidelines for establishing quality objectives helps in keeping the risk of suboptimization to a minimum?

Short-term objectives are targets to be achieved within five to seven years.

According to Drucker, which of the following key areas for organizational objectives is more personal and subjective in nature, and hence likely to arouse managerial opposition?

A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months. Which of the following is a valid criticism of this objective?