Question 1

When is the traditional top-down approach to planning most likely to be effective?

Accepted Answer

The traditional top-down approach to planning is most likely to be effective when plans are developed that can actually be used by organizational members. This means that plans must be feasible and well-communicated to ensure that employees can easily understand and implement them. When plans are developed in a manner that is too rigid, complex, or abstract, they are less likely to be effective. Therefore, it is important to adopt a more flexible and collaborative approach that takes into account the needs and preferences of employees, as well as the overall goals and objectives of the organization.

Question 2

Which one of the following is the last step in MBO?

Accepted Answer

The last step in MBO is to reinforce successful achievement of objectives by performance-based rewards. This step helps to motivate employees to continue meeting or exceeding their objectives and reinforces the importance of goal-setting and achieving within the organization. The other options listed are earlier steps in the MBO process.

Question 3

Top executives are mainly involved in ________ planning.

Accepted Answer

Top executives are responsible for developing and implementing the overall strategies and goals of a company or organization, therefore, they are primarily involved in strategic planning. Functional planning involves specific business functions such as marketing or finance, operational planning involves the day-to-day operations of the organization, and departmental planning is specific to individual departments within the organization.

Question 4

Which one of the following reflects the way goals are used in an MBO program?

Accepted Answer

In an MBO (Management by Objectives) program, goals serve both as a means to ensure that employees are fulfilling their responsibilities and as a motivational tool. This approach emphasizes setting clear, achievable objectives that are aligned with the organization's goals, and using these objectives to both guide and inspire employees.

Question 5

Which one of the following is the first step in MBO?

Accepted Answer

The first step in MBO is the formulation of the organization's overall objectives and strategies. Without clearly defined objectives, it is difficult to establish specific goals and action plans for individual units or employees.

Question 6

The commitment concept says that plans should ________.

Accepted Answer

The commitment concept emphasizes the importance of honoring the commitments made when the plans were developed, implying that plans should extend far enough to meet those commitments. Therefore, option A is the best choice.

Question 7

A ________ is a broad statement of an organization's purpose that provides an overall guide to what organizational members think is important.

Accepted Answer

A mission statement is a broad statement of an organization's purpose that provides an overall guide to what organizational members think is important. It outlines the organization's goals and values, and helps to guide decision-making and strategy development. A vision statement, on the other hand, describes a desired future state for the organization, while a project is a specific, temporary effort to create a unique product, service, or result. A preamble is an introductory statement, as in a constitution or statute.

Question 8

In the management by objectives (MBO) process of goal setting, goals are ambiguous, giving managers and employees more flexibility to respond to changing conditions.

Accepted Answer

In the MBO process, goals are meant to be specific, measurable, achievable, relevant and time-bound (SMART). This allows for clarity and focus, making it easier for managers and employees to work towards achieving the goals. While there may be some flexibility in adjusting goals based on changing conditions, the initial goals should be clearly defined.

Question 9

Which one of the following is true of the traditional approach to planning?

Accepted Answer

The traditional approach to planning is a systematic and coordinated approach that makes planning thorough. It is typically done by creating plans at various organizational levels and often involves the use of formal planning departments. Although plans may not be written down in some cases, this is not a defining characteristic of the traditional approach.

Question 10

When uncertainty is high, plans should be ________ and ________.

Accepted Answer

In times of high uncertainty, specific plans are important to provide direction and guidance. However, flexibility is also crucial in order to adapt to unforeseen circumstances and changes in the environment. Therefore, a combination of specific and flexible plans is most effective.

Question 11

Which is the first step managers should follow in goal setting?

Accepted Answer

Reviewing the organization's mission is typically the first step in the goal setting process. This helps ensure that the goals align with the overall purpose and vision of the organization. Once the mission is clear, managers can move forward with determining specific goals and evaluating resources available. Writing down goals and communicating them to relevant stakeholders comes later in the process.

Question 12

Bill has been working his plan for about three months. He is now discussing his progress with Jim, his supervisor. If Bill and Jim are using the MBO planning process, this discussion is called ________.

Accepted Answer

In the MBO (management by objectives) planning process, progress updates and feedback discussions between the employee and supervisor are known as performance feedback.

Question 13

An organization is in the process of goal setting. It has finished reviewing the organization's mission. What should it do next?

Accepted Answer

After reviewing the organization's mission, the next logical step is to evaluate available resources to ensure that the goals set are realistic and achievable given the current resources.

Question 14

When lower-level managers and employees are involved in the planning process, ________.

Accepted Answer

Involving lower-level managers and employees in the planning process helps them understand and commit to the objectives, seeing the plans as practical guides for action rather than mere formalities. This involvement typically increases their engagement and commitment to achieving the plan's goals.

Question 15

________ is a process of setting mutually-agreed upon goals and using those goals to evaluate employee performance.

Accepted Answer

Management by objectives is a performance appraisal process where employees and managers agree upon specific, measurable, and attainable goals that the employee will achieve over a set period of time. The employee's performance is then evaluated based on how successfully they met those goals.

Question 16

Well-written goals are ________.

Accepted Answer

Well-written goals should be clear in terms of time frame, outlining when the goal will be achieved or when progress should be made towards achieving it. Goals that are written in terms of actions rather than outcomes are more effective in setting a clear path to achieving the goal, but this is not necessarily the only characteristic of a well-written goal. Similarly, goals that are too easily achievable may not provide enough challenge or motivation for the individual, while goals that are completely out of reach may be demotivating.

Question 17

________ planning dominates managers' planning efforts at lower levels of the organization.

Accepted Answer

Operational planning focuses on short-term goals and specific actions that need to be taken to achieve those goals. It is mostly used by lower-level managers who are responsible for implementing tactics and ensuring day-to-day operations run smoothly. Strategic planning and organization-wide planning deal with higher-level objectives and long-term planning, while directional planning involves setting a general direction for the organization without specific goals and actions. Therefore, operational planning dominates managers' planning efforts at lower levels of the organization.

Question 18

Bonnie is discussing with her subordinate, Julie, the types of projects Julie would like to work on in the coming year. They are setting goals and determining what success would look like. Bonnie and Julie are engaged in ________.

Accepted Answer

Bonnie and Julie are engaged in management by objectives (MBO), a process where managers and employees work together to set goals, develop plans, and determine what success looks like. This approach emphasizes setting clear, measurable objectives that are agreed upon by both management and employees, which is what Bonnie and Julie are doing.

Question 19

Which one of the following is the last step in goal setting?

Accepted Answer

The last step in goal setting is to review results and whether goals are being met. This helps to determine the success of the goals and whether any adjustments need to be made in future goal-setting efforts. The other options are important steps in the goal-setting process, but they precede the final step of reviewing results.

Question 20

In traditional goal setting, goals set by top managers flow down through the organization and become subgoals for each organizational area.

Accepted Answer

In traditional goal setting, top-down approach is followed where goals set by top managers are cascaded down through the organization and become subgoals for each organizational area.

Quiz 8: Planning and Goal-Setting