Chapter 7
Managerial Planning and
Goal Setting
True/False Questions
1.The Europa Hotel survived terrorism by carefully planning security measures for guests, employees, and the building.
Answer: TrueLevel: 2Page: 237 Type: F
2.Because everything else stems from leading, of the four management functions, leading is considered the most fundamental.
Answer: FalseLevel: 2Page: 238Type: F
3.A desired future state that the individual or organization attempts to realize is a goal.
Answer: True Level: 1 Page: 238 Type: F
4.Goals specify today's means; plans specify future ends.
Answer: FalseLevel: 2Page: 238Type: F
5.The act of determining the organization goals and the means for achieving them is called goal setting.
Answer: False Level: 1 Page: 238 Type: F
6.The mission is the basis for the strategic level of goals and plans, which in turn shapes the tactical and operational level.
Answer: TrueLevel: 1Page: 238Type: F
7.The complexity of today’s environment and uncertainty about the future overwhelm many managers and lead them to focus on long-term goals and plans instead of operational issues and short-term results.
Answer: FalseLevel: 2Page: 239Type: F
8.Because they provide legitimacy, rationale for decisions, and an increase in motivation and commitment, goals and plans are valuable to an organization.
Answer: True Level: 1 Page: 239-240Type: F
9.A plan tells "why" to achieve the goal.
Answer: False Level: 2 Page: 240 Type: F
10.Plans provide a standard of assessment.
Answer: False Level: 2 Page: 240 Type: F
11.A broad definition of the organization's values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization refers to a Business Strategic Statement.
Answer: False Level: 2 Page: 241 Type: F
12.The company's philosophy as well as purpose is often expressed in mission statements.
Answer: TrueLevel: 2Page: 241Type: F
13.An organization's mission describes its reason for existence.
Answer: True Level: 2 Page: 241 Type: F
14.Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole.
Answer: True Level: 1 Page: 242 Type: F
15.A broad statement of where the organization wants to be in the future refers to a mission statement.
Answer: False Level: 1 Page: 242 Type: F
16.Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals.
Answer: False Level: 2 Page: 242 Type: F
17.The department manager's tool for daily and weekly operations is called the operational plan.
Answer: TrueLevel: 1Page: 243Type: F
18.A means-end chain is when lower-level goals lead to the accomplishment of higher-level goals.
Answer: True Level: 1 Page: 244 Type: F
19.Specific and measurable goal characteristics apply only to the lower-level goals.
Answer: False Level: 2 Page: 245 Type: F
20.Goals are most effective when they are specific, measurable, challenging and linked to rewards.
Answer: True Level: 2 Page: 246Type: F
21.To be effective, goals must be set for every aspect of employee behavior or organizational performance.
Answer: FalseLevel: 2Page: 246Type: F
22.The goals should be easy, for employees to feel motivated, so that they can achieve them easily which in turn increases their motivation level.
Answer: False Level: 2 Page: 246 Type: F
23.MBO refers to managing by opportunity.
Answer: False Level: 1 Page: 247 Type: F
24.The most difficult step in an MBO process is reviewing progress.
Answer: False Level: 2 Page: 247 Type: F
25.An example of a qualitative goal is “the University will provide quality education at a fair price.”
Answer: TrueLevel: 3Page: 247Type: A
26.To review progress is the final step in the MBO process.
Answer: FalseLevel: 1Page: 248Type: F
27.Problems with MBO occur when the company faces rapid change.
Answer: TrueLevel: 1Page: 249Type: F
28.Organic organizations and values that encourage participation can harm the MBO process.
Answer: FalseLevel: 2Page: 249Type: F
29.Standing plans define company responses to specific situations such as natural emergencies or competitive setbacks.
Answer: False Level: 1 Page: 250 Type: F
30.Contingency plans can also be considered as scenarios.
Answer: TrueLevel: 1Page: 250-251Type: F
31.If Kari, manager at Tip Top Roofing, wanted to develop a contingency plan for Tip Top, she would need to look at factors such as new equipment, the economy, and the company workers’ compensation cases.
Answer: TrueLevel: 3Page: 251Type: A
32.The first stage in crisis management planning includes building relationships and designating crisis management team and spokesperson.
Answer: FalseLevel: 2Page: 253Type: F
33.The three stages of crisis management are prevention, preparation, and containment.
Answer: TrueLevel: 1 Page: 253Type: F
34.The XYZ Corporation should create a crisis management group that is not cross-functional, but does work together well under pressure.
Answer: FalseLevel: 2Page: 254Type: A
35.In the containment stage of crisis management, the organization should “get the awful truth out” to employees only as soon as possible.
Answer: FalseLevel:2Page: 255Type: F
36.Companies should ensure the physical safety and emotional needs of people and/or animals after implementing a crisis management plan.
Answer: TrueLevel:2Page: 255Type: F
37.The CEO of Alex Aquariums, Inc. must do all of the planning for the company because that is the way to do things in today’s workplace.
Answer: FalseLevel:2Page: 256Type: A
38.Turtle Terrace should use traditional planning since that is the type of planning every company uses.
Answer: FalseLevel: 2Page: 256Type: A
39.In a complex and competitive business world, traditional planning done by a select few is the only planning that works.
Answer: False Level: 2 Page: 256 Type: F
40.A temporary group consisting of line managers responsible for developing strategic plans is called a centralized planning group.
Answer: False Level: 1 Page: 256 Type: F
Multiple Choice Questions
1.Which of these refers to a desired future state that an organization attempts to realize?
a.Plan
b.Vision statement
c.Goal
d.Mission statement
e.Idea
Answer: c Level: 1 Page: 238 Type: F
2. specify future ends and specify today's means.
a.Goals, plans
b.Plans, goals
c.Planning, organizing
d.Ideas, behaviors
e.Mission, vision
Answer: a Level: 2 Page: 238 Type: F
3.A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n)
a.goal.
b.plan.
c.mission.
d.vision.
e.objective.
Answer: b Level: 1 Page: 238 Type: F
4.______is the act of determining the organization's goals and the means for achieving them.
a.Brainstorming
b.Organizing
c.Planning
d.Developing a mission
e.A blueprint
Answer: c Level: 1 Page: 238 Type: F
5.The planning process begins with which of these?
a.The development of operational goals
b.The development of a mission statement
c.Communication of goals to the rest of the organization
d.A company-wide meeting
e.Brainstorming
Answer: b Level: 2 Page: 238 Type: F
6.The is the basis for the strategic level of goals and plans which in turn shapes the and level.
a.goal, mission, tactical
b.objective, operational, mission
c.operational goal, mission and tactical
d.mission, tactical, operational
e.tactical plan, operational, mission
Answer: dLevel: 2Page: 238Type: F
7.Which of these are primarily responsible for strategic goals/plans?
a.Middle management
b.Board of directors
c.Consultants
d.Senior management
e.Lower management
Answer: dLevel: 1Page: 238Type: F
8.______is primarily responsible for operational goals/plans.
a.Middle management
b.Board of directors
c.Consultants
d.Senior management
e.Lower management
Answer: eLevel: 1Page: 239Type: F
9.Which of these is/are primarily concerned with tactical goals/plans?
a.Middle management
b.Board of directors
c.Consultants
d.Senior management
e.Lower management
Answer: aLevel: 1Page: 239Type: F
10.Ruby is a first-line supervisor at Rooftop Corporation. She is most concerned with which level of goals?
a.Operational goals
b.Tactical plans
c.Strategic goals
d.Mission statement
e.Vision
Answer: a Level: 2 Page: 239 Type: A
11.______symbolizes the legitimacy of the organization to external audiences.
a.Operational goals
b.Tactical plans
c.Strategic goals
d.Mission statement
e.Tactical goals
Answer: d Level: 2 Page: 239 Type: F
12.Rosalie is a manager at GMG Gaming. She recently attended a seminar on goal setting. She wishes to use goals to provide a sense of direction to her staff. She is using goals as
a.a way to legitimize her department.
b.a source of motivation.
c.a standard of performance.
d.a guide to action.
e.impress others.
Answer: d Level: 2 Page: 240 Type: A
13.A statement that identifies distinguishing characteristics of an organization is known as
a.a goals statement.
b.a values statement.
c.an income statement.
d.a mission statement.
e.a competitive-edge statement.
Answer: d Level: 1 Page: 241 Type: F
14.Which of these are described by mission statements?
a.Corporate values
b.Company philosophy
c.Company purpose
d.All of the above
e.a and b only
Answer: d Level: 1 Page: 241 Type: F
15.The organization's reason for existence is known as
a.the organization's value.
b.the organization's vision.
c.the organization's mission.
d.the organization's goal.
e.the organization's service.
Answer: c Level: 2 Page: 241 Type: F
16."We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's
a.mission.
b.strategic goals.
c.tactical goals.
d.strategic plans.
e.tactical plans.
Answer: a Level: 3 Page: 241 Type: A
17."We seek to become the premier business school in the west" is an example of a statement you are most likely to find in the organization's
a.tactical goals.
b.operational goals.
c.mission.
d.tactical plans.
e.operational plans.
Answer: c Level: 3 Page: 241 Type: A
18.Which of these refers to a broadly stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organizations?
a.Mission statement
b.Goal statement
c.Management by objective
d.Goal setting
e.Corporate competitive-value statement
Answer: a Level: 1 Page: 241 Type: F
19.At the top of the goal hierarchy is the
a.strategic goals.
b.tactical goals.
c.operational goals.
d.mission.
e.employee goals.
Answer: d Level: 2 Page: 241 Type: F
20.Which of these represent the broad statements of where the organization wants to be in the future?
a.Operational goals
b.Tactical goals
c.Strategic goals
d.Operational goals
e.Tactical plans
Answer: c Level: 1 Page: 242 Type: F
21.The official goals of the organization are best represented by the .
a.strategic goals
b.tactical goals
c.operational goals
d.competitive goals
e.none of the above
Answer: a Level: 2 Page: 242 Type: F
22.A long-term time frame is most closely associated with
a.operational plans.
b.tactical plans.
c.strategic plans.
d.mission plans.
e.tactical goals.
Answer: c Level: 2 Page: 242 Type: F
23.Which of these are called the action steps by which an organization intends to attain its strategic goals?
a.Tactical goals
b.Operational goals
c.Tactical plans
d.Operational plans
e.Strategic plans
Answer: e Level: 1 Page: 242 Type: F
24. goals lead to the attainment of goals, which in turn lead to the attainment of goals.
a.Operational, strategic, tactical
b.Tactical, operational, strategic
c.Strategic, tactical, operational
d.Operational, tactical, strategic
e.None of the above.
Answer: d Level: 3 Page: 242-243Type: F
25.Goals that define the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals is called
a.strategic goals.
b.tactical goals.
c.operational goals.
d.a mission.
e.a plan.
Answer: b Level: 1 Page: 242 Type: F
26.Beth is a middle manager at Egg Elements Corporation. She is most likely responsible for the achievement of goals.
a.operational
b.tactical
c.strategic
d.lower-level
e.top-level
Answer: b Level: 2 Page: 242 Type: F
27.______represent plans developed at the organization's lower levels that specify action steps toward achieving operational goals and that support tactical planning activities.
a.Tactical plans
b.Strategic plans
c.Operational plans
d.Supervisory plans
e.Organizational plans
Answer: c Level: 1 Page: 243 Type: F
28.Which of these refer to specific results expected from individuals?
a.Operational goals
b.Tactical goals
c.Strategic goals
d.Operational plans
e.Mission statements
Answer: a Level: 2 Page: 243 Type: F
29.Lower-level goals should lead to the achievement of higher-level goals. This is called
a.linking pin theory.
b.a value-based chain.
c.a means-end chain.
d.all of the above.
e.none of the above.
Answer: c Level: 2 Page: 244 Type: F
30.Which of these is lacking in the goal "profits should be increased in the coming year?"
a.Specific and measurable
b.Challenging but realistic
c.Covers key result areas
d.Defined time period
e.None of the above
Answer: a Level: 2 Page: 245 Type: A
31.Tabu is a salesperson at a large retail chain. She was assigned a goal of $265,000 in sales for the current quarter. She is unhappy because she knows that the most any salesperson has sold in one quarter in the past is $150,000. Her goal of $265,000 is probably
a.not specific and measurable.
b.not realistic.
c.irrelevant.
d.lacking a specific time period.
e.does not cover key result area.
Answer: b Level: 3 Page: 246 Type: A
32.You are violating which of these goal characteristics when you attempt to create goals for every aspect of employee behavior?
a.Specific and measurable
b.Linked to rewards
c.Defined time period
d.Cover key result areas
e.Challenging but realistic
Answer: dLevel: 2Page: 246Type: F
33.Samuel set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals?
a.Specific and measurable
b.Challenging but realistic
c.Covers key result areas
d.Defined time period
e.Linked to rewards
Answer: c Level: 2 Page: 246Type: A
34.All of the following are characteristics of effective goal setting EXCEPT
a.goals should be challenging but not unreasonably difficult.
b.goals should be set for every aspect of employee behavior.
c.specific and measurable.
d.cover key results area.
e.linked to rewards.
Answer: b Level: 2 Page: 245-246Type: F
35.The ultimate impact of goals depended on the extent to which goal achievement is linked to
a.rewards.
b.salary increases.
c.promotions.
d.all of the above.
e.b and c only.
Answer: d Level: 2 Page: 246 Type: F
36.Which of these is the first step in the MBO process?
a.Setting goals
b.Developing action plans
c.Appraising overall performance
d.Reviewing progress
e.None of the above
Answer: a Level: 1 Page: 247 Type: F
37.In using MBO, objectives should be set
a.by the supervisor.
b.by the employee.
c.jointly by the supervisor and the employee.
d.by the accounting department.
e.by top management.
Answer: c Level: 2 Page: 247 Type: F
38.Which of these is a method of management whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance?
a.Organizational planning
b.Management by objectives
c.Goal setting
d.Mission development
e.Vision development
Answer: b Level: 1 Page: 247 Type: F
39.Yard Fence Corporation is currently implementing an MBO program. Managers and employees jointly set objectives and develop action plans, and goal achievement is evaluated on an annual basis. Yard Fence is missing which major activity that must occur in order for MBO to be successful?
a.Developing a mission statement
b.Developing tactical goals
c.Reviewing progress
d.Reviewing operational plans
e.None of the above
Answer: c Level: 2 Page: 247-248 Type: A
40.Frostburg Fireplaces has used MBO for the past year. Top management just finished evaluating overall performance. The next step in the MBO process should be
a.to develop new action plans.
b.to develop new objectives based on the review of last year's performance.
c.to begin a new MBO "cycle", using the same objectives as last year.
d.to wait several months to allow information to be digested.
e.none of the above.
Answer: b Level: 2 Page: 248 Type: A
41.Which is the final step in the MBO process?
a.Appraise overall performance
b.Develop an action plan
c.Review progress
d.Set goals
e.Conduct periodic checkups
Answer: aLevel: 1Page: 248Type: F
42.One major problem with MBO is
a.it discourages individual creativity.
b.it does not work well in constantly changing environments.
c.it decreases employee motivation.
d.it does not work well in non-profit organizations.
e.none of the above.
Answer: b Level: 2 Page: 249 Type: F
43.Which of the following is NOT one of the benefits of MBO?
a.Performance can be improved at all company levels.
b.Employees are motivated.
c.Efforts are focused on activities that will lead to goal attainment.
d.Operational goals are able to displace strategic goals.
e.Individual and department goals are aligned with company goals.
Answer: d Level: 2 Page: 249 Type: F
44.Which of these is true about single-use plans?
a.They are developed to achieve a set of goals that are unlikely to be repeated in the future.
b.They are used to provide guidance for tasks performed repeatedly within the organization.
c.They define plans that define company responses to specific situations, such as emergencies or setbacks.
d.They are most important in the organizations.
e.None of the above.
Answer: a Level: 2 Page: 250 Type: F
45.Standing plans are
a.plans that are developed to achieve a set of goals that are unlikely to be repeated in the future.
b.plans that used to provide guidance for tasks performed repeatedly within the organization.
c.plans that define company responses to specific situations, such as emergencies or setbacks.
d.most important in the organizations.
e.none of the above.
Answer: b Level: 1 Page: 250 Type: F
46.A project is an example of a
a.policy.
b.standing plan.
c.procedure.
d.single-use plan.
e.rule.
Answer: d Level: 1 Page: 250 Type: F
47.Numerous are likely to be part of an overall .
a.programs, project
b.policies, project
c.standing plans, program
d.projects, program
e.programs, rule
Answer: d Level: 2 Page: 250 Type: F
48.California Creamery requires that all absent employees bring a note from their doctor when returning to work. This is an example of a
a.single-plan use.
b.standing plan.
c.program.
d.procedure.
e.project.
Answer: b Level: 2 Page: 250 Type: A
49.Which of these define boundaries within which to make a decision?
a.Programs
b.Policies
c.Rules
d.Procedures
e.Project
Answer: b Level: 2 Page: 250 Type: F
50.An example of a ______is a statement supporting the organization's efforts in the area of sexual harassment.
a.procedure
b.rule
c.policy
d.single-use plan
e.program
Answer: c Level: 2 Page: 250 Type: F
51."No food and/or drinks in the classroom" is an example of a
a.procedure.
b.rule.
c.policy.
d.single-use plan.
e.project.
Answer: b Level: 2 Page: 250 Type: A
52.Which of these are true about contingency plans?