Chapter 3

Question 1

Defining the organization’s objectives or goals

Answer 1

Planning

Question 2

Establishing an overall strategy for achieving those goals

Answer 2

Planning

Question 3

Developing a comprehensive hierarchy of plans to integrate and coordinate activities

Answer 3

Planning

Question 4

is concerned with ends (what is to be done) as well as with means (how it is to be done)

Answer 4

Planning

Question 5

Planning may create rigidity

Answer 5

Criticisms Of Formal Planning

Question 6

Plans can’t be developed for a dynamic environment.

Answer 6

Criticisms Of Formal Planning

Question 7

Formal plans can’t replace intuition and creativity.

Answer 7

Criticisms Of Formal Planning

Question 8

Planning focuses managers’ attention on today’s competition, not on tomorrow’s survival.

Answer 8

Criticisms Of Formal Planning

Question 9

Formal planning reinforces success, which may lead to failure.

Answer 9

Criticisms Of Formal Planning

Question 10

generally means higher profits, higher return on assets, and other positive financial results.

Answer 10

Formal planning

Question 11

probably contribute more to high performance than does the extent of planning.

Answer 11

Planning process quality and implementation

Question 12

Plans that are organization-wide, establish overall objectives, and position an organization in terms of its environment

Answer 12

Strategic plans

Question 13

Plans that specify the details of how an organization’s overall objectives are to be achieved

Answer 13

Tactical plans

Question 14

Plans that cover less than one year

Answer 14

Short-term plans

Question 15

Plans that extend beyond five years

Answer 15

Long-term plans

Question 16

Plans that have clearly defined objectives and leave no room for misinterpretation

Answer 16

Specific plans

Question 17

“What, when, where, how much, and by whom” (process-focus)

Answer 17

Specific plans

Question 18

Flexible plans that set out general guidelines

Answer 18

Directional plans

Question 19

“Go from here to there” (outcome-focus)

Answer 19

Directional plans

Question 20

A plan that is used to meet the needs of a particular or unique situation

Answer 20

Single-use plans

Question 21

Single-day sales advertisement

Answer 21

Single-use plans

Question 22

A plan that is ongoing and provides guidance for repeatedly performed actions in an organization

Answer 22

Standing plan

Question 23

Customer satisfaction policy

Answer 23

Standing plan

Question 24

A system in which specific performance objectives are jointly determined by subordinates and their supervisors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of that progress.

Answer 24

Management by Objectives (MBO)

Question 25

Links individual and unit performance objectives at all levels with overall organizational objectives

Answer 25

Management by Objectives (MBO)

Question 26

Focuses operational efforts on organizationally important results.

Answer 26

Management by Objectives (MBO)

Question 27

Motivates rather than controls

Answer 27

Management by Objectives (MBO)

Question 28

Cascading of Objectives

Answer 28

- Overall organizational objectives - Divisional objectives - Departmental objectives - Individual objectives

Question 29

Elements of MBO

Answer 29

•Goal specificity •Participative decision making •Explicit time period for performance •Performance feedback

Question 30

Defines the purpose of the organization

Answer 30

Mission statement

Question 31

A document that explains the business founders vision and describes the strategy and operations of that business.

Answer 31

strategic plan

Question 32

Screening large amounts of information to detect emerging trends and create a set of scenarios

Answer 32

environmental scanning

Question 33

Accurate information about competitors that allows managers to anticipate competitors’ actions rather than merely react to them

Answer 33

Competitive intelligence