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Test Bank For Modern Management Concepts and Skills 12th Edition Samuel C Certo
Test Bank For Modern Management Concepts and Skills 12th Edition Samuel C Certo
1) Planning is the process of determining how the organization will achieve its objectives.
Answer: TRUE
Page Ref: 160
Objective: 1
Difficulty: Easy
Classification: Conceptual
3) A potential disadvantage of planning is that it can take up too much managerial time.
Answer: TRUE
Page Ref: 161
Objective: 1
Difficulty: Easy
Classification: Conceptual
5) Premises are the assumptions upon which alternatives to reaching organizational objectives
are based.
Answer: TRUE
Page Ref: 163
Objective: 2
Difficulty: Moderate
Classification: Conceptual
1
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
6) The last step in the planning process focuses on developing plans to pursue the chosen
alternative for reaching organizational objectives.
Answer: FALSE
Page Ref: 163
Objective: 2
Difficulty: Easy
Classification: Conceptual
7) Organizational objectives are the targets toward which the management system is directed.
Answer: TRUE
Page Ref: 165
Objective: 3
Difficulty: Easy
Classification: Conceptual
8) An organization's vision outlines what the organization exists to do, given a particular group
of customers and customer needs.
Answer: FALSE
Page Ref: 165
Objective: 3
Difficulty: Moderate
Classification: Conceptual
9) Organizations exist for various purposes but have the same types of objectives.
Answer: FALSE
Page Ref: 165
Objective: 3
Difficulty: Easy
Classification: Conceptual
10) Managers should establish performance objectives that are within easy reach for employees.
Answer: FALSE
Page Ref: 167
Objective: 3
Difficulty: Easy
Classification: Conceptual
11) 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.
Answer: FALSE
Page Ref: 167
Objective: 4
Difficulty: Moderate
Classification: Conceptual
2
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
12) Short-term objectives are targets to be achieved within five to seven years.
Answer: FALSE
Page Ref: 167
Objective: 4
Difficulty: Easy
Classification: Conceptual
13) Suboptimization is the process of assigning subobjectives to the various people or units in
the organization based on the organizational objectives.
Answer: FALSE
Page Ref: 168
Objective: 4
Difficulty: Moderate
Classification: Conceptual
14) One of the primary guidelines for establishing quality objectives is that management should
set objectives only in relation to other organizational objectives.
Answer: TRUE
Page Ref: 169
Objective: 4
Difficulty: Easy
Classification: Conceptual
15) The management by objectives (MBO) approach has been found to be ineffective for
nonprofit organizations.
Answer: FALSE
Page Ref: 169
Objective: 5
Difficulty: Easy
Classification: Conceptual
16) A key element of any management by objectives (MBO) program is top management support
and commitment.
Answer: TRUE
Page Ref: 170
Objective: 5
Difficulty: Easy
Classification: Conceptual
3
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
18) The final responsibility for organizational planning rests with the firm's chief executives.
Answer: TRUE
Page Ref: 171
Objective: 6
Difficulty: Easy
Classification: Conceptual
19) Organizational planners must know how all parts of the organization function and interrelate.
Answer: TRUE
Page Ref: 172
Objective: 7
Difficulty: Easy
Classification: Conceptual
21) The process of determining how an organization can get where it wants to go and what it will
do to accomplish its objectives is ________.
A) organizing
B) influencing
C) planning
D) controlling
E) analyzing
Answer: C
Page Ref: 160
Objective: 1
Difficulty: Easy
Classification: Conceptual
4
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
23) The affirmative purpose of planning is to ________.
A) increase the degree of organizational success
B) increase the level of workplace diversity
C) optimize the use organizational resources
D) refine work methods and reduce production costs
E) improve organizational compliance with industry standards
Answer: A
Page Ref: 160
Objective: 1
Difficulty: Moderate
Classification: Conceptual
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