Implementation

Question 1

What are short-term objectives?

Answer 1

Measurable outcomes achievable or intended to be achieved in one year or less

Question 2

How do short-term objectives assist policy implementation?

Answer 2

They assist by identifying measurable outcomes of action plans or functional activities, which can be used to make feedback, correction, and evaluation more relevant and acceptable

Question 3

What are the elements of action plans?

Answer 3

Short-Term Objectives provide:
Specificity

Time frame for completion

Who is responsible—Accountability

Question 4

What are the qualities of effective short-term objectives?

Answer 4

1. Measurable
2. Priorities
3. Cascading: From long-term objectives to short-term objectives

Question 5

What are functional tactics ?

Answer 5

They are the detailed statements of the “means” or activities that will be used by a company to achieve short-term objectives and establish a competitive advantage

Question 6

Functional tactics are different from business or corporate policies in three fundamental ways. What are they?

Answer 6

1. Specificity
2. Time horizon
3. Participants who develop them

Question 7

What is outsouricng?

Answer 7

It is obtaining work previously done by employees inside the company from sources outside the company

Question 8

What is empowerment?

Answer 8

Empowerment is the act of allowing an individual or team the right and flexibility to make decisions and initiate action.

Question 9

What are policies?

Answer 9

Policies are broad, precedent-setting decisions that guide or substitute for repetitive or time-sensitive managerial decision making.

Question 10

What are the benefits of creating policies that empower?

Answer 10

1. Policies reduce uncertainty in repetitive and day-to-day decision making
2. Policies counteract resistance
3. Policies offer predetermined answers to routine problems
4. Policies afford managers a mechanism for avoiding hasty decisions

Question 11

What are the advantages of formal written policies?

Answer 11

1. They require managers to think through the policy’s meaning, content, and intended use
2. They reduce misunderstanding
3. They make equitable and consistent treatment of problems more likely
4. They ensure unalterable transmission of policies
5. They communicate the authorization or sanction of policies more clearly
6. They supply a convenient and authoritative reference
7. They systematically enhance indirect control and organization-wide coordination of the key purposes of policies

Question 12

What is the goal of an executive bonus compensation plan?

Answer 12

to motivate executives and key employees to achieve the maximization of shareholder wealth

Question 13

What are some types of bonus compensation plans?

Answer 13

1. Stock options
2. Restricted stock
3. Golden handcuffs
4. Golden parachute
5. Cash bonuses

Question 14

What are restricted stock options?

Answer 14

Stock given to an employee who is prohibited or “restricted” from selling the stock for a certain time period and not at all if they leave the company before that time period

Question 15

What are golden handcuffs?

Answer 15

A form of executive compensation where compensation is deferred (either a restricted stock plan or bonus income deferred in a series of annual installments).

Question 16

What are golden parachutes?

Answer 16

A form of bonus compensation that guarantees a substantial cash payment if the executive quits, is fired, or simply retires.