CHAPTER 8 (101 QUESTIONS) MANAGEMENT

1. The career path that most resembles the traditional view of "climbing the
stairs" up a corporate hierarchy is the "linear career."
True

1. Spiral careers and linear careers are both upwardly mobile.

True

1. Individuals who don't want the responsibility that comes with promotion may
follow a transitory career path.
False

1. Planning helps managers to cope with events that can be predicted, but not when
the future is uncertain.
False

1. Planning and strategic management derive from an organization's mission and

vision about itself.
true

1. The second step in the planning and strategic management process is to formulate
the strategic plans, then tactical and operations plans.
False

There are five steps in the planning and strategic management process.
True

1. Planning helps you check your progress.

True

1. A number of years ago, Rubbermaid had the goal of producing one new product a
day. At that time, Rubbermaid would be described as a prospector.
True

1. Harley Davidson is expert at producing and selling only motorcycles. They are
known as "analyzers."
False

1. Reactors have a "let others take the risks of innovating, and we'll imitate what
works the best" attitude.
False

1. Engineering is a kind of business problem that is portrayed in the adaptive

cycle.
True

1. A mission statement helps an organization do strategic planning, but it is not

necessary for effective operational planning.
False

1. A vision is a long term goal describing what a company wants to become.

True

A vision statement expresses what the organization should become and where it wants
to go strategically.
True
1. A mission statement expresses what the organization should become, where it
wants to go strategically.
False

1. Operational planning is normally performed by middle management.

False

1. Tactical planning is done by first-line managers and looks forward to the next
1-3 weeks.
False

1. One survey found that most organizations said that they had a clearly
articulated strategic direction.
True

1. A goal is a specific commitment to achieve a measurable result within a stated

period of time.
True

1. Goals are arranged in a value chain.

False

1. Tactical goals focus on objectives for the organization as a whole.

False

Strategic goals are set by and for middle managers; they focus on the actions
needed to achieve operational goals.
False

1. An action plan defines the course of action needed to achieve the stated goal.
True

1. The operating plan identifies clear targets such as revenues, cash flow, and
market share.
True

1. Cutting costs and keeping fares low is a key tactical goal for Southwest's
middle managers.
True

1. Southwest's decision to fly just one type of airplane, Boeing 737s, was a
tactical decision.
False

1. Southwest's decision to limit the turnaround time between flights to 20 minutes

is an operational goal.
False

1. A "program" is the same thing as a "project".

False

1. A project has less scope and complexity than a program.

True

A procedure outlines general responses to a designated problem or situation.

False

1. A rule is a standing plan that designates specific required action.

True
1. Policies, procedures, and rules are examples of single-use plans.
False

1. MBO was developed by Frederick Taylor as part of Scientific Management.

False

The purpose of MBO is to control subordinates

False

In an MBO program, it does not matter if objectives are set jointly by a manager
and her subordinate, or if the manager imposes them on the subordinate
False

First suggested by Peter Drucker in 1954, MBO has spread largely because of the
appeal of its emphasis on converting general objectives into specific ones for all
members of an organization
True

MBO is a four-step process

True

In order for MBO to be successful, it must be implemented throughout the entire

organization
True

In an MBO program, it is sufficient to set goals and then let subordinates

determine how to attain them
False

Objectives are structured so that they become more general as they "cascade"
downward through the organization's hierarchy
False

The accomplishment of low-level goals is the means leading to the accomplishment of

high-level goals or ends
True

The goal 'as many planes as possible should arrive on time' meets the criteria for
a SMART goal
False

As a manager, you can control the direction of planning by improving future plans
True

The planning/control cycle has three planning steps and three control steps
False

Comparing results with the plan and taking corrective action are mechanisms
associated with the planning/control cycle
True

Project planning is the preparation of single-use plans, or projects

True

Project management follows project planning and is used to maintain progress of the
activities that comprise the project
True
1. A project team whose members are separated from the normal operation of an
organization and asked to produce a new, innovative product is called a
"skunkworks".
True

Identifying the facilities, equipment, and other resources, occurs at the

definition stage of the project life cycle
False

The execution stage of the project life cycle occurs when the project is accepted
by the client
False

Deadlines provide a mechanism for giving managers feedback

True

1. Planning is defined as
A) coping with uncertainty by analyzing past actions.
B) setting goals and deciding how to achieve them.
C) correcting problems that have occurred.
D) the same process as MBO.
E) strategic management.
B

1. Planning is the __________ step in the management process, and involves setting
goals and deciding how to achieve them.
A) first
B) second
C) third
D) fourth
E) fifth
A

1. Which of the following is a step in the planning and strategic management

process?
A) formulate the grand strategy
B) hire appropriate personnel
C) formulate the operational plans followed by the tactical plans
D) review the profit and loss statement
E) review the results of the strategy
A

1. Which of the following is a benefit of planning?

A) Planning requires you to set aside the time to do it.
B) You can make all decisions without consulting superiors.
C) Planning helps you cope with uncertainty.
D) Planning helps you compare your results to your competition.
E) Planning helps the company remain spontaneous.
C

1. A company that focuses on developing new products or services and in seeking out
new markets, rather than waiting for things to happen, is known as a
A) defender.
B) analyzer.
C) adaptor.
D) prospector.
E) reactor.
D
1. Which of the following is one of the organizational responses to uncertainty
identified by Miles and Snow?
A) investigator
B) prospector
C) planner
D) developer
E) relator
B

1. XYZ Company scans its environment regularly. However, it does not tend to seek
opportunities outside its present markets. This company would most likely be a (n)
A) reactor.
B) prospector.
C) analyzer.
D) defender.
E) executor.
D

1. A company that believes in letting other organizations take the risks of product
development and marketing and then imitate what seems to work best is called a (n)
A) reactor.
B) prospector.
C) analyzer.
D) defender.
executor
C

1. Which of the following statements about the adaptive cycle is true?

A) Miles and Snow introduced this idea.
B) The adaptive cycle means that businesses are continuously cycling through
decisions about three kinds of business problems.
C) Selecting and making adjustments of products and markets is one of the business
problems that is part of the adaptive cycle.
D) Establishing roles, relationships, and organizational processes are part of the
adaptive cycle.
All of the above statements are true of the adaptive cycle
E

1. Which of the following is in the correct order?

A) mission statement & vision statement, strategic planning, tactical planning,
operational planning
B) vision statement, mission statement, strategic planning, operational planning,
tactical planning
C) control of strategy, mission statement, strategic planning, tactical planning,
operational planning
D) mission statement, vision statement, strategic planning, operational planning,
tactical planning
E) mission statement, vision statement, tactical planning, strategic planning,
operational planning
A

1. Which level of management is more often engaged in operational planning?

A) working-level employees
B) first-line managers
C) middle managers
D) top managers
E) consultants
B
1. What is the time frame of a strategic plan?
A) 15 - 25 years
B) 5 - 15 years
C) 1 - 5 years
D) 6 - 24 months
E) 1 - 52 weeks
C

1. The statement of an organization's purpose or reason for being is called its

A) vision statement.
B) mission statement.
C) strategic plan.
D) operational plan.
tactical plan
B

1. A "vision statement" is a statement of

A) the organization's purpose.
B) what the organization sees in its environment.
C) what the organization wants to become.
D) the organization's reason for being.
the organization's ethics
C

1. When an organization plans effectively, it plans in three phases. Starting with

the one that should come first, what is the correct order of these phases?
A) operational, tactical, strategic
B) operational, strategic, tactical
C) tactical, operational, strategic
D) tactical, strategic, operational
E) strategic, tactical, operational
E

1. The _________ identifies the goods or services the organization provides and
will provide, and the reasons for providing them.
A) mission statement
B) purpose
C) vision
D) strategy
E) tactics
A

1. Roger Enrico of PepsiCo, had a clear sense of the future and the actions needed
to get there. This is an example of a(n)
A) mission.
B) purpose.
C) vision.
D) performance.
action plan
C

1. Bartolome is participating with other managers in a discussion about what his

organization's goals should be for the next five years. He is participating in
A) strategic planning.
B) operational planning.
C) tactical planning.
D) controlling.
writing a mission statement
A
1. Imelda is meeting with other managers to discuss how the departments within her
division can work together in the next twenty-four months to support the
organization's goals. She is participating in
A) strategic planning.
B) operational planning.
C) tactical planning.
D) controlling.
writing a mission statement
C

1. Ivan is meeting with his subordinates to work out the numbers of positions for
workers needed to handle production for the next 6 months. Ivan is involved in
A) strategic planning.
B) operational planning.
C) tactical planning.
D) controlling.
developing an MBO
B

1. Which of the following would be associated with operational planning?

A) decisions about the overall direction of the organization
B) managers who pay attention to the environment outside of the organization
C) implementation of policies and plans of top management
D) directing daily tasks of nonmanagerial personnel
E) making decisions without clearly defined procedures
D

1. Harley Davidson Motorcycles states that it will improve its profit margin by 15%
by ensuring continued high sales of its products for the next three years. This is
a statement of Harley Davidson's
A) operational goal
B) tactical goal
C) strategic goal
D) management objective
E) environmental impact
C

1. A __________ outlines the general responses to a designated problem or

situation.
A) policy
B) rule
C) procedure
D) project
E) program
A

1. A __________ designates specific required action.

A) policy
B) rule
C) procedure
D) project
E) program
B

1. A __________ outlines the responses to particular problems or circumstances.

A) policy
A) rule
B) procedure
C) project
D) program
C

1. The space shuttle Discovery is an example of a

A) policy.
A) rule.
B) procedure.
C) project.
D) program.
D

1. A single-use plan of less scope and complexity than a program is a

A) strategy.
B) project.
C) task.
D) step.
E) mission.
B

1. MBO stands for

A) Management by Observation
B) Management by Objectives
C) Management by Objection
D) Management by Obligation
E) Management by Oblivion
B

1. MBO was developed by Peter Drucker in the

A) 1990s.
B) 1980s.
C) 1970s.
D) 1960s.
E) 1950s.
E

1. The first step in the MBO process is

A) develop action plan.
B) give performance appraisal.
C) periodically review performance.
D) management establishes employee goals.
jointly set objectives
E

1. In practicing MBO, a manager should

A) decide on goals for employees and inform them of these goals clearly.
B) let employees set their own goals.
C) set objectives jointly with employees.
D) make sure goals are stated generally so they can cover all situations that might
arise.
set goals that are just out of the subordinate's reach
C

1. After setting goals, managers should next

A) ignore the subordinate.
B) supervise the subordinate closely
C) prepare an action plan for accomplishing the goals.
D) ignore the performance of the team, focusing only on the worker.
revise the goals whether they need it or not
C

1. MBO works by "cascading" objectives; that is, they become more __________ at
lower levels of the organization.
A) general
B) challenging
C) time-bound
D) attainable
E) specific
E

1. Which of the following would BEST describe MBO?

A) It is a top-down system.
B) It is a bottom-up system.
C) Its purpose is to motivate employees.
D) Its purpose is to control employees.
It is used to benchmark against competitors
C

1. A "SMART" goal is one that is

A) specific, maintainable, attainable, realistic, and time-bound.
B) specific, measurable, attainable, results-oriented, and has targeted dates.
C) specific, maintainable, achievement-oriented, real-time, and targeted.
D) specific, measurable, affordable, realistic, and targeted.
specific, maintainable, aligned with other goals, realistic, and time-bound
B

1. In MBO, the structure of the objectives�organizational, divisional,

departmental, and individual�is called the ________ of objectives.
A) improvement
B) personal development
C) maintenance
D) strategy
E) cascading
E

1. Which of the following is the best statement of a goal?

A) I want to lose weight.
B) I want to lose 20 pounds by June 1, 2010.
C) I want to lose 40% of my body mass by next month.
D) I want to look better.
I want to start losing weight soon
B

1. The constant feedback loop designed to ensure plans stay headed in the right
direction is called the
A) means-end chain.
B) planning/control cycle.
C) control/planning system.
D) project management cycle.
E) project planning loop.
B

1. Improving future plans is part of which step in the planning/control cycle?

A) making the plan
B) carrying out the plan
C) benchmarking against competitors
D) controlling the direction
E) updating the plan
D

1. Project planning is most often followed by

A) project management.
B) task management.
C) project maintenance.
D) activities management.
project financing
A

1. A project team whose members are separated from the normal operation of an
organization and asked to produce a new, innovative product is called a
A) program.
B) skunkworks.
C) SMART team.
D) MBO.
one-minute team
B

1. The four stages of a project are, in order:

A) definition, execution, planning, closing.
B) definition, planning, execution, closing.
C) planning, definition, execution, closing.
D) planning, execution, definition, closing.
execution, definition, planning, closing
B

1. Anthony's main focus is to complete his project on time. This project is in the
____________ stage.
A) closing
B) planning
C) execution
D) definition
E) MBO
...

1. Juanita is identifying the facilities and equipment that will be needed in a

project. This project is in the _________ stage.
A) closing
B) planning
C) execution
D) definition
E) MBO
B

1. Muhammad is conducting training of the end-users of a new computer system that

is being installed. This project is in the ____________ stage.
A) closing
B) planning
C) execution
D) definition
E) MBO
A

1. Barbara is identifying the facilities and equipment needed to make the "big
picture" happen. This project is in the ___________ stage.
A) closing
B) planning
C) execution
D) definition
E) vision
B

1. When a student is identifying a topic for a research paper, she is in the

__________ stage of a project.
A) execution
B) planning
C) definition
D) closing
E) vision
C

1. Joyce is in the library checking to see how much material is available on a

topic she has tentatively chosen for a research paper. Joyce is in the ___________
stage of her project.
A) execution
B) planning
C) definition
D) closing
E) selection
B

1. Which of the following is a stage of the project life cycle?

A) definition
B) elaboration
C) deadlines
D) selection
E) controlling
A