Final MGMT

An organization's goals follow from decisions made by midlevel managers.

False

Decision making is the catalyst that drives the planning process.

True

All organizations engage in planning activities, and most organizations plan in exactly the same fashion.

False

Qualcomm has a patent-licensing agreement with Texas Instruments allowing both manufacturers to share patents in cell phone production. This is an example of tactical planning.

False

Operationalizing involves balancing and reconciling possible conflicts among goals.

False

When there are inconsistencies among various organizational goals, managers should seek to optimize the overall goal set.

True

In determining goals, short-range means one to five years.

False

Time frames vary widely from industry to industry.

True

Tactics deal with more specific issues than strategies.

True

Strategic plans have a shorter-term focus than either operational or tactical plans.

False

Employees that are rewarded based on quarterly profit figures will engage in more intermediate and long-range planning than employees who do not receive quarterly bonuses.

False

Programs and projects are short-range plans.

False

When the public relations department develops a crisis reaction plan to deal with the media it is developing a reaction plan.

True

A reaction plan is usually short range and done after something changed.

True

A contingency plan is usually done as an action plan.

True

Tactical plans are to war what strategy is to battles.

False

Tactical planning focuses on resources, environment, and mission, whereas strategic planning focuses primarily on people and action.

False

An occasional situation may call for a stand-alone tactical plan, but most of the time tactical plans flow from and must be consistent with a strategic plan.

True

Strategies must specify resources and time frames.

False

A program is similar to a project, but smaller.

False

Rules and regulations eliminate some decision making.

True

Single-use plans are referred to as policies.

False

The human resource administrator was following a policy when he offered a candidate a job and started the negotiation process.

True

The steps to be followed in case of a fire can be found on the back of any hotel door. These instructions are an example of rules and regulations.

True

Standard operating procedures and rules and regulations can serve as a substitute for decision making.

True

Goals, such as employee satisfaction and development, are easy to quantify.

False

The vice president of human resources wants to eliminate all overtime, whereas one of the goals set by the vice president of operations is to make more efficient use of overtime hours. This is an example of goal consistency.

False

The purpose of formal goal setting is generally to give managers a chance to tell employees what their goals are and how they will accomplish the objectives.

False

Which of the following directly follows from the organization's mission?

Strategic goals

The mission statement should include all EXCEPT which of the following?

Tactics

You have decided to go into business for yourself. On your loan application, you state that you intend to open a flower shop in the Village Center Mall. What does this statement on your loan application represent?

A mission statement

The \____ of the National Park Service is " to conserve the scenery and the national and historic objects and the wildlife therein and to provide for the enjoyment of the same in such a manner and by such means as will leave them unimpaired for the enjoyment of future generations."

mission statement

The \____ of Choice Waste Management Ltd. is "to be the best international, integrated, leading waste management company- working in the best competitive environment to deliver the best value and sustainable waste solutions to meet the world's needs."

mission statement

According to the planning process described in the text, operational plans flow directly from

tactical plans

In what order should the following be developed?

Mission, strategic, tactical, and operational

Goals serve four very important purposes. Each purpose is related closely to one of the four functions of management. According to the text, which of the four functions of management is NOT specifically addressed by one of the purposes served by goals?

Organizing

Goals can

all of these

Goals are set by

time frame, area, and level

Which of the following statements most correctly reflects the relationship between goal setting and planning?

each process enhances the other

A(n) \____ of Choice Waste Management could be to expand operations in two more countries this year.

strategic goal

The \____ for Catholic Charities is "to provide service to people in need, to advocate for justice in social structures, and to call the entire church and other people of good will to do the same."

mission statement

A(n) \____ for Choice Waste Management could be "to develop a recycling campaign for rural communities of less than 1000 customers." It would develop naturally out of a strategic goal seeking "to increase recycling by 10% everywhere."

tactical goal

A(n) \____ for Choice Waste Management could be to include a flyer in each bill that explains the Do's and Don'ts of Recycling and to put the information on the web page where customers pay online. It would develop naturally out of a tactical goal seeking "to develop a recycling campaign for rural communities of less than 1,000 customers."

operational plan

Goals are classified according to their \____ when the terms quality, productivity, and innovation are applied to them.

area

Spanx founder Sara Blakely started an apparel company. She wrote a business plan to get financing for expansion. The business plan is Spanx's \____.

strategic plan

Home Depot's marketing department could set a(n) \____ to create an Internet advertisement for a sale within the next two weeks.

operational goal

Black Entertainment Television's target audience is 18- to 34-year-old males, because advertisers spend more money on younger consumers. High ratings with that viewership is a(n) \____.

tactical goal

When we identify strategic, tactical, and operational goals, we are classifying them by

level

Goals set for broad general issues are called

strategic

Goals set for a new product launch are called

tactical

At any point in time, control compares where the organization is in terms of performance to where it is supposed to be.

true

A properly designed control system can help management anticipate, monitor, and respond to changing circumstances.

true

One purpose of control is to simplify organizations.

false

The responsibility for managing control rests on the CEO.

false

The control of human resources is the most important area, because human resources are related to the control of all the other resources in an organization.

false

Strategic controls are concerned with how well the organization aligns itself with the environment.

true

The last step in the control process is to change the standard.

false

If an organization involves operating employees in decisions about quality control, the organization is more likely to have convoluted, control.

false

After comparing performance against control standards managers should never change the standard.

false

Reporters who verify stories with additional sources are using screening control.

false

An after-action report is a screening control.

false

The most common controls are screening controls.

true

An effective way to promote employee participation in the control process is to use screening controls.

true

Operations controls monitor input, transformation, and output.

true

Businesses must manage their finances so that revenues are sufficient to cover costs. Not-for-profit organizations such as universities do not have the same concerns.

false

An operating budget is a budget that determines the number of units to be produced during the coming time period.

false

Sources of cash include sales revenue, short- and long-term loans, the sale of assets, and the issuance of new stock.

true

Many contemporary organizations do not allow managers to participate in the budget process.

false

External audits examine the efficiency and appropriateness of financial and accounting procedures.

false

Internal audits examine the efficiency and appropriateness of financial and accounting procedures.

true

Internal audits are not as effective as external audits.

false

Bureaucratic control focuses on enhanced performance that exceeds minimum acceptable standards.

false

Decentralized control relies heavily on self-control by the organization's employees.

true

Bureaucratic control is outdated and not effective any more.

false

Strategic control in global organizations is the same as domestic organizations.

false

Information systems are an essential element of strategic control.

true

The planning and controlling functions are interrelated.

true

Toyota is designing a new car. At the same time it is planning the recycling abilities of the parts. Toyota is effectively integrating planning and control processes.

true

Managers make a surprisingly large number of decisions based on inaccurate information.

true

If objective data are available, they will provide more useful information than will mere subjective impressions.

true

As the number of things being controlled by the organization increases, the likelihood that employees will resist those controls tends to decrease.

false

The basic purpose of control is

all

Organizational control is

the regulation of organizational activities to facilitate goal attainment

The purpose of control is to

assess organizational performance relative to some desired goal

A properly designed control system is important to an organization because it can be used to

anticipate, monitor, and respond to changing circumstances

In 2015, the Chinese stock market had a major decline that spread around the world. Companies with financial controls, that foresaw a major adjustment coming, accumulated cash and were prepared to buy back their own shares at low prices and help prevent their stock from sliding down further. The controls helped the company

adapt to environmental change

The Sarbanes-Oxley Act, passed after the fall of Enron and Arthur Andersen, requires accounting firms to separate the auditing function from the consulting function. This example illustrates

how control helps organizations respond to changing standards

Universities value the image and reputation they present to the public. A rogue professor making outrageous comments on social media can seriously damage a school's reputation. It is much easier to implement media polices that prevent damage, than it is to try and fix the damage that has already been done. The media policies help

limit the accumulation of errors

Income statements, balance sheets, and audits are examples of the control of

financial resources.

Quality control is one type of \____ control.

operations

Managing receivables to make sure customers are paying their bills on time is an example of the need for \____ control.

financial

Google partnered with Nielsen Co. to poll users about ads on Google+. Nielsen then packaged the information for advertisers. This was a response to advertiser complaints about the effectiveness of ads on the social network. This indicates that Google is placing an emphasis on \____ controls.

operations

The credit crisis and the Federal Reserve's response to it faced criticism from Congress. The Treasury Department requested a review of the central bank's structure and governance. There is now broad support for auditing the Fed using the Government Accountability Office. The change in the economic and political environment of the Fed means the Fed needs to adapt its \____ control.

strategic

Secretary of Defense, Gates, shifted the pentagon's budget from expensive, high tech weapon systems to timely, responsive systems. Small defense contractors were more responsive to the change and won more contracts. In this case \____ control helped the small companies.

structural

Businesses that use H-form or M-form organizational design may have several \____ who are responsible for helping line managers with their control functions, for coordinating the organization's overall control system, and for gathering and assimilating relevant information.

controllers

Company websites monitor where viewers look, how long they stay on a page, and the actions they take on the website. This gives companies a lot of information about their customers and viewers. It also represents which step in the control process?

measure performance

The last step in the control process is to

determine the need for corrective action.

The \____ at McDonald's fast-food restaurants is to fill each order within 90 seconds and to have no customer wait longer than 3.5 minutes.

control standard

Standards used in organizational control are most like

goals

To the extent possible, standards used for control purposes should be derived from

organizational goals