Question 1

MBO works by the upper movement of goals through the organization;that is,top managers set general organizational objectives based on what individual employees and then departments voice as their objectives.

Accepted Answer

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.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.

Question 2

With increasing competition in the restaurant business,Sal,owner of Mom's Pizza,is dealing with growing uncertainty.He is meeting with his managers to develop a future course of action to meet company goals.This process is known as _____.

Accepted Answer

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.

Question 3

Research suggests that when writing out and achieving a person's biggest goals,it is important to ____.

Accepted Answer

Research suggests the advice for writing out and achieving a person's biggest goals are to (1)make a concrete plan, (2)break your goals into manageable bites, (3)put something of value on the line, (4)bundle your temptations or rewards to your efforts,and (5)seek social support.

Question 4

There are four types of objectives in MBO: improvement objectives,personal development objectives,diversity objectives,and maintenance objectives.

Accepted Answer

There are three types of objectives in MBO: improvement objectives,personal development objectives,and maintenance objectives .

Question 5

When utilizing MBO,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 performance appraisals and rewards the employee according to the results.

Accepted Answer

When utilizing MBO,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.

Question 6

Don,a CEO,has decided to utilize MBO in his retail outlets across the Midwest.He made this decision because of its emphasis on converting general objectives into broad ones for the upper management of an organization.

Accepted Answer

Management by objectives (MBO)has spread largely because of the appeal of its emphasis on converting general objectives into specific ones for all members of an organization.

Question 7

When top-management commitment to MBO is high,the average gain in productivity is above average,and when upper management commitment is low,the average gain in productivity is low.

Accepted Answer

"When top-management commitment [to MBO] was high," said one review,"the average gain in productivity was 56%.When commitment was low,the average gain in productivity was only 6%."

Question 8

In a management meeting,Paula,the CEO of ABC Industries,mentioned that deadlines are a great motivator.She believes this because the entire purpose of making a plan and setting goals is to deliver to a customer specified results within a specified period of time.Therefore,Paula can claim that deadlines are a great motivator.

Accepted Answer

Deadlines are as essential to goal setting in business as they are to your college career.Because the whole purpose of planning and goals is to deliver to a client specified results within a specified period of time,deadlines become a great motivator,both for you and for the people working for you.

Question 9

Setting target dates or deadline dates for when goals are to be attained is not always needed.

Accepted Answer

A SMART goal is one that is Specific,Measurable,Attainable,Results-oriented,and has Target dates.Goals should specify the target dates or deadline dates when they are to be attained.For example,it's unrealistic to expect an airline to improve its on-time arrivals by 10% overnight.However,you could set a target date of 3 to 6 months to achieve the goal.

Question 10

Mr.Smith,CEO of an auto dealership,has been working on the two planning steps of the planning/control cycle with his managers.To do this,Mr.Smith and his managers need to make their plan and then carry out the plan.

Accepted Answer

In Figure 5.5,the two planning steps are (1)make the plan,and (2)carry out the plan.

Question 11

In the planning/control cycle,managers take corrective action by correcting deviations in the plan being carried out or by improving future plans.

Accepted Answer

In the planning/control cycle,managers take corrective action by correcting deviations in the plan being carried out or by improving future plans (see Figure 5.5).

Question 12

According to Richard Branson,founder of Virgin Atlantic airlines,you can set a really hard goal,such as increasing your class study time 50%,which is "stretching yourself beyond what your mind might think is safe," also known as a(n)____.

Accepted Answer

If you have outsize ambitions,you might set yourself a really hard goal (Increase study time 50%)-what's known as a stretch goal,"stretching yourself beyond what your mind might think is safe."

Question 13

The planning/control cycle has two planning steps: make the plan and carry out the plan.

Accepted Answer

The planning/control cycle has two planning steps: make the plan and carry out the plan (see Figure 5.5).

Question 14

Greg,owner of Comfortable Home Heating and Air,has been having problems with employee morale.After investigating,he found that some of his department managers were using management by objectives,but the accounting and sales managers were not utilizing MBO in their departments.For the MBO program to be successful,it has to be put in place throughout the entire organization.

Accepted Answer

The MBO program has to be put in place throughout the entire organization.That is,it cannot be applied in just some divisions and departments;it has to be done in all of them.

Question 15

With the first step in management by objectives,it is necessary to have back-and-forth negotiation between managers and their subordinates to make the objectives practicable.

Accepted Answer

In the first step of MBO,you sit down with your manager and the two of you jointly set objectives for you to attain.It's necessary to have back-and-forth negotiation to make the objectives practicable.

Question 16

MBO works the best if the objectives from upper and middle management are given to subordinates by their manager,and the supervisor simply says,"Here are the objectives I want you to meet."

Accepted Answer

The purpose of MBO is to motivate rather than control subordinates.MBO probably works best if the objectives aren't simply imposed from above (Don't say,"Here are the objectives I want you to meet").

Question 17

When an employee fails to meet MBO objectives,to reduce embarrassment for that subordinate,the manager should give the employee more time to improve;however,taking strong measures such as demotion is typically incorrect.

Accepted Answer

Failure to meet MBO objectives can be addressed by redefining the objectives for the next 6- or 12-month period,or even by taking stronger measures,such as demotion.

Question 18

While sitting at her desk,Ann is setting goals and deciding how to achieve them.She is ___.

Accepted Answer

Planning is defined as setting goals and deciding how to achieve them.

Question 19

The planning/control cycle has two control steps: control the direction by comparing results with the plan and control the direction by increasing organization diversity and synergy.

Accepted Answer

The planning/control cycle has two control steps: control the direction by comparing results with the plan and 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 (see Figure 5.5).

Question 20

The planning/control cycle loop exists for each level of planning-strategic,tactical and operational.

Accepted Answer

The planning/control cycle,the planning/control cycle loop exists for each level of planning-strategic,tactical,and operational.

Quiz 5: Planning: The Foundation of Successful Management