Question 1

Which one of the following is NOT a necessary factor for a successful management by objectives (MBO)program?

Accepted Answer

A) Management must follow through on employee performance evaluations by rewarding employees accordingly. 
B) Top management must be committed to the MBO process and set appropriate objectives for the organization. 
C) Managers and subordinates together must develop and agree on each individual's goals. 
D) Employee performance should be conscientiously evaluated against established objectives. 
E) Managers must conclude automatically that employees have produced at an acceptable level because they have reached their objectives.

Question 2

Which one of the following techniques is used for scheduling resources?

Accepted Answer

A) timetable 
B) Gantt chart 
C) horizontal axis 
D) vertical axis 
E) review

Question 3

One of the short-term objectives of Alport Corporation,a manufacturer of construction equipment,is "to achieve a 15 percent return on investment (ROI)by September 2018." According to Drucker,this objective relates to ________.

Accepted Answer

A) innovation 
B) productivity 
C) market standing 
D) managerial performance 
E) profitability

Question 4

It is important for an organization to ensure that the objectives set for its employees are ________.

Accepted Answer

A) unrealistically high 
B) within easy reach 
C) low 
D) within reach,but not easy reach 
E) out of reach

Question 5

Which one of the following steps in the planning process should precede the others?

Accepted Answer

A) develop premises upon which each alternative is based 
B) develop plans to pursue the chosen alternative 
C) list alternative ways of reaching objectives 
D) choose the best alternative for reaching objectives 
E) put plans into action

Question 6

According to Drucker,which one of the following key areas for organizational objectives is more personal and subjective in nature,and hence likely to arouse managerial opposition?

Accepted Answer

A) productivity 
B) innovation 
C) worker performance and attitude 
D) physical and financial resources 
E) market standing

Question 7

Walt Biggs is general manager at a plumbing contractor.He is currently working on designing the procedures and policies the company will use as it schedules its employees on customer projects.Which one of the following managerial functions is Walt undertaking?

Accepted Answer

A) planning 
B) organizing 
C) influencing 
D) controlling 
E) evaluating

Question 8

After identifying the alternative ways in which the organization can reach its objectives,a manager should ________.

Accepted Answer

A) develop plans for each alternative 
B) choose the best alternative for reaching objectives 
C) rank each alternative according to complexity 
D) develop premises on which to base each alternative 
E) choose the alternative which is most cost effective

Question 9

Which one of the following methods of sales forecasting is the most straightforward?

Accepted Answer

A) jury of executive opinion method 
B) salesforce estimation method 
C) moving average method 
D) regression method 
E) disturbance handler method

Question 10

A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months.Which one of the following is a valid criticism of this objective?

Accepted Answer

A) It does not pinpoint expected results. 
B) It is not stated in simple fashion. 
C) It is not achievable. 
D) It does not relate to specific actions. 
E) It is not related to other organizational objectives.

Question 11

List and discuss two purposes for planning.

Accepted Answer

The answer of List and discuss two purposes for planning....

Question 12

________ refers to what a firm exists to do,given a particular group of customers and customer needs.

Accepted Answer

A) An operational plan 
B) A unique selling proposition 
C) An organizational purpose 
D) A long-term goal 
E) A vision statement

Question 13

An organization's vision is what the organization exists to do,given a particular group of customers and customer needs.

Accepted Answer

A) True 
 B)False

Question 14

A single-use financial plan that covers a specified length of time is known as a(n)________.

Accepted Answer

A) offshoot 
B) microsystem 
C) spinoff 
D) subsystem 
E) budget

Question 15

What are some of the main reasons plans fail?

Accepted Answer

The answer of What are some of the main reasons...

Question 16

________ is the key to a successful planning process.

Accepted Answer

A) Classification 
B) Repetition 
C) Implementation 
D) Evaluation 
E) Standardization

Question 17

Which one of the following guidelines helps employees know exactly how managers will determine whether an objective has been reached?

Accepted Answer

A) Let people responsible for attaining objectives have a voice in setting them. 
B) State objectives as specifically as possible. 
C) Pinpoint expected results. 
D) Set objectives only in relation to other organizational objectives. 
E) Specify when goals are expected to be achieved.

Question 18

Which one of the following guidelines for establishing quality objectives helps in keeping the risk of sub-optimization to a minimum?

Accepted Answer

A) relating objectives to specific actions whenever necessary 
B) stating objectives as specifically as possible 
C) setting objectives only in relation to other organizational objectives 
D) specifying when goals are expected to be achieved 
E) stating objectives clearly and simply

Question 19

Which one of the following is NOT a step in designing a PERT network?

Accepted Answer

A) determining how much time is needed to complete activities and events 
B) identifying the critical path 
C) identifying financial resources needed to complete activities 
D) listing all activities and events that must be accomplished for the project 
E) designing a PERT network that reflects activities,events,and time needed

Question 20

It is important to provide employees with a time frame for accomplishing their objectives because ________.

Accepted Answer

A) it instills a sense of urgency in employees 
B) it allows employees to pace themselves accordingly 
C) it makes the goals more meaningful 
D) it reduces the risk of suboptimization 
E) it motivates employees to improve their performance

Exam 7: Plans and Planning Tools

Which one of the following is NOT a necessary factor for a successful management by objectives (MBO) program?