Management Asia Pacific 6th Edition Schermerhorn Test Bank Full Chapter PDF
Management Asia Pacific 6th Edition Schermerhorn Test Bank Full Chapter PDF
Management Asia Pacific 6th Edition Schermerhorn Test Bank Full Chapter PDF
TRUE/FALSE
1. A desired future state that the individual or organisation attempts to realise is a goal.
2. A carefully considered and executed plan has the ability to remove uncertainty and risk from the
environment.
3. The act of determining the organisation’s goals and the means for achieving them is called goal
setting.
5. Goals and plans are valuable to an organisation because they provide legitimacy, rationale for
decisions and an increase in motivation and commitment.
6. The management function concerned with defining goals for future organisational performance and
deciding on tasks and resources needed to attain them is known as goal-setting.
9. According to the hierarchy of goals and plans, strategic plans have a direct relationship to
operational plans.
11. Mission statements often reveal the company’s philosophy as well as purpose.
12. Strategic plans and goals are those that focus on where the organisation wants to be in the future
and pertain to the organisation as a whole.
14. Operational plans and goals are those that focus on the outcomes that major divisions and
departments must achieve in order for the organisation to reach its overall goals.
15. Tactical goals are designed to help execute major strategic plans and to accomplish a specific part
of the organisation strategy.
16. Operational goals are specific, measurable results expected from departments, groups and
individuals within the organisation.
17. Tactical goals define outcomes that major divisions and departments must achieve in order for the
organisation to reached overall goals.
18. Specific and measurable goal characteristics apply only to the lower-level goals.
20. For employees to feel motivated, the goals should be easy so that they can achieve them easily
which in turn increases their motivation level.
22. The criteria for effective goal setting include: being specific and measurable, covering key result
areas, challenging yet realistic, have a defined time period, and are links to rewards.
23. In terms of improving one’s fitness, ‘joining the local gym before the end of the calendar year’
would satisfy the ‘defined period of time’ requirement of a SMART goal.
24. In terms of improving one's fitness, "joining the local gym by August 31 of this year" would satisfy
the ‘challenging but realistic’ requirement of a SMART goal.
26. Management by means focuses attention on the methods and processes used to achieve goals.
27. In logical order, the four major activities that make management by objectives successful are: set
goals, review progress, develop action plans, a prize overall performance.
28. ‘Standing plans’ are developed to achieve a set of goals that are unlikely to be repeated in the
future, whereas ‘single use plans’ are ongoing and used to provide guidance for tasks performed
repeatedly within the organisation.
30. Policies focus on goals and plans while procedures focus on the specific steps that organisational
members use.
32. Scenario building involves looking at current trends and discontinuities and visualising future
possibilities.
33. Managers can’t always anticipate future events and build scenarios to cope with them.
34. Three major ways in which to manage a crisis are: planning, prevention and preparation.
35. A group of planning specialists developing plans for the organisation as a whole is defined as
decentralised planning.
36. A cross-functional group of managers and employees who work together to gain a deeper
understanding of the specific competitive issue is known as an intelligence team.
38. The three stages of crisis management are: prevention, preparation and avoidance.
ANS: F PTS: 1 DIF: Easy NAT: AACSB Analytic
TOP: Crisis planning
39. Decentralised planning occurs when managers work with planning experts to develop their own
strategic plans.
ANS: T PTS: 1 DIF: Easy NAT: AACSB Analytic
TOP: Modern approaches to planning
MULTIPLE CHOICE
3. Which of these is the act of determining the organisation’s goals and the means for achieving
them?
A. Organising
B. Brainstorming
C. Planning
D. Developing a mission
E. A blueprint
ANS: C PTS: 1 DIF: Easy NAT: AACSB Analytic
TOP: Goals plans and performance
4. The __________ is the basis for the strategic level of goals and plans which in turn shapes the
__________ and __________ level.
A. goal; mission; tactical
B. operational goal; mission; tactical
C. objective; operational; mission
D. mission; tactical; operational
E. tactical plan; operational; mission
ANS: D PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals plans and performance
5. Bill is a first-line supervisor at Catamaran Corporation. He ensures that the day-to-day operations
of the functional staff are organised and carried out effectively. As such, Bill would be most
concerned with which level of goals?
A. Vision
B. Profit-making goals
C. Operational goals
D. Strategic goals
E. Mission statement
ANS: C PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals plans and performance
6. Which of these symbolises the legitimacy of the organisation to external audiences?
A. Operational goals
B. Tactical plans
C. Strategic goals
D. Mission statement
E. Tactical goals
ANS: D PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals in organisations
7. Each of the following are considered characteristics of an effective plan or goal, except:
A. They are a source of motivation.
B. They focus on day-to-day activities.
C. They focus on resource allocation.
D. They are legitimate guide to action.
E. All of these are considered characteristics of an effective panel goal.
ANS: B PTS: 1 DIF: Easy NAT: AACSB Analytic
TOP: Goals in organisations
10. ______________________ define outcomes that major divisions and departments must achieve in
order for the organisation to reach its overall goals.
A. Strategic goals
B. Tactical goals
C. Operational goals
D. Strategic plans
E. Tactical plans
ANS: B PTS: 1 DIF: Difficult NAT: AACSB Analytic
TOP: Goals in organisations
11. ______________________ are designed to help execute major strategic plans and to accomplish
a specific part of the organisation strategy.
A. Strategic goals
B. Tactical goals
C. Operational goals
D. Strategic plans
E. Tactical plans
ANS: E PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals in organisations
12. ______________________ represent the steps by which an organisation intends to attain the
strategic goals.
A. Strategic goals
B. Tactical goals
C. Operational goals
D. Strategic plans
E. Tactical plans
ANS: D PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals in organisations
13. A(n) _______________________ is a visual representation of the key drivers of an organisation’s
success.
A. operational plan
B. tactical goal
C. strategy map
D. strategic plan
E. tactical plan
ANS: C PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals in organisations
14. Each of the following are steps in the organisational planning process, except:
A. Developing a plan
B. Monitoring of learning
C. Executing the plan
D. Translating the plan
E. All of these are steps in the organisational planning process.
ANS: E PTS: 1 DIF: Easy NAT: AACSB Analytic
TOP: Goals in organisations
15. Defining tactical planning objectives belongs to which stage of the organisational planning
process?
A. Developing a plan
B. Monitoring of learning
C. Executing the plan
D. Translating the plan
E. Executing the plan
ANS: D PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals in organisations
16. Management by objectives belongs to which stage of the organisational planning process?
A. Developing a plan
B. Monitoring of learning
C. Executing the plan
D. Translating the plan
E. None of these options
ANS: D PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals in organisations
17. Selecting measures and targets belongs to which stage of the organisational planning process?
A. Developing a plan
B. Monitoring of learning
C. Executing the plan
D. Translating the plan
E. Planning operations
ANS: E PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Goals in organisations
18. Each of the following are considered criteria for effective goal setting, except:
A. Specific and measurable
B. Cover key result area
C. Challenging
D. Have a defined time period
E. All of these are considered criteria for effective goal setting.
ANS: E PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: SMART goals
20. Kate Bewley is a middle manager at ‘Dough-Nuts R US’. She is most likely responsible for the
achievement of __________ plans.
A. operational
B. tactical
C. strategic
D. lower-level
E. top-level
ANS: B PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: p 263
21. 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. the efficient methods hypothesis
E. None of these choices.
ANS: C PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Means-end chain
22. When you attempt to create goals for every aspect of employee behaviour you are violating which
of these goal characteristics?
A. Specific and measurable
B. Linked to rewards
C. Defined time period
D. Cover key result areas
E. Challenging but realistic
ANS: D PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: SMART goals
23. Brian Law of Legal Smeagols 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
ANS: C PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: SMART goals
24. All of the following are characteristics of effective goal setting except that goals should be:
A. challenging but not unreasonably difficult
B. set for every aspect of employee behaviour
C. specific and measurable
D. cover key results area
E. linked to rewards.
ANS: B PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: SMART goals
25. Dale is a salesperson at Harvey Norman. He was assigned a goal of $50,000 in sales for the current
quarter. He is unhappy because he knows that the most any salesperson has sold in one quarter in
the past is $30,000. His goal of $50,000 is likely to be:
A. not specific and measurable
B. unrealistic
C. irrelevant
D. lacking a specific time period
E. unrelated to his sales knowledge.
ANS: B PTS: 1 DIF: Difficult NAT: AACSB Analytic
TOP: SMART goals
30. Tassie Devil Brewery 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 these choices.
33. Focusing management attention on the methods and processes used to achieve goals is known as:
A. management by objectives
B. management by means
C. goal setting
D. performance management
E. None of these choices.
ANS: B PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: MBO
34. Planning to develop and achieve a set of goals that are unlikely to be repeated in the future is
known as a(n):
A. operational plans
B. tactical plans
C. strategic plans
D. standing plan
E. single-use plan.
ANS: E PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Single – use plans
37. Professor Grim requires that all absent students bring a note from their doctor when returning to
tutorial classes. This is an example of a:
A. retentive rule
B. standing plan
C. program
D. procedure
E. project.
ANS: B PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Standing plan
39. A __________________ is the planning cycle that institutes quality management practices.
A. Shewhart cycle
B. tactical plan
C. strategic plan
D. standing plan
E. single-use plan
ANS: A PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Shewhart cycle
42. South Aussie Sound Systems has three planning specialists who help division managers develop
their own plans. Serving as consultants to the divisions, the planning specialists give advice about
strengths, weaknesses, opportunities and threats. South Aussie Sound Systems is using what
approach to the planning function?
A. Centralised planning department
B. Decentralised planning staff
C. Planning task force
D. Centralised planning committee
E. Regimented top-down approach
ANS: B PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Decentralised planning
43. Darwin Helicopter Corporation allows its line managers to take responsibility for strategic
planning. This approach is consistent with which of the following?
A. Centralised planning department
B. Decentralised planning staff
C. Planning task force
D. Centralised planning committee
E. Command-and-control
ANS: C PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Planning task force
44. The planning activity in which future possibilities are visualised by extrapolating current trends
and considering future discontinuities is known as:
A. the Shewhart cycle
B. scenario building
C. strategic planning
D. standing plans
E. single-use plans.
ANS: B PTS: 1 DIF: Easy NAT: AACSB Analytic
TOP: Contingency planning
45. The _________________ is a detailed written plan that specifies the steps to be taken, and by
whom, if a crisis occurs.
A. contingency plan
B. tactical plan
C. operational plan
D. crisis management plan
E. mission statement
ANS: D PTS: 1 DIF: Moderate NAT: AACSB Analytic
TOP: Crisis management
46. Each of the following are elements of a crisis management plan, except:
A. prevention
B. containment
C. preparation
D. procrastination.
47. A(n) __________________ is a cross-functional group of managers and employees who work
together to gain a deeper understanding of the specific competitive issue and other insights and
recommendations for future planning.
A. strategic management team
B. intelligence team
C. centralised planning team
D. None of these choices.
1. A(n) ____________________ is a desired future state that the organisation attempts to realise.
ANS: goal
2. A(n) ____________________ is a blueprint for goal achievement and specifies the necessary
resource allocations, schedules, tasks and other actions.
ANS: plan
3. The act of determining the organisation’s goals and the means for achieving them is referred to as
____________________.
ANS: planning
4. A(n) __________________(two words) is a broadly stated definition of basic business scope and
operations that distinguishes the organisation from others of a similar type.
5. Broad statements describing where the organisation wants to be in the future are called
___________________ (two words).
6. ___________________ (two words) define the action steps by which an organisation intends to
attain its strategic goals.
7. ___________________ (two words) are designed to help execute major strategic plans and to
accomplish a specific part of the company’s strategy.
8. ___________________ (two words) are the responsibility of lower management (i.e. department
leaders and individual employees).
9. The organisational planning process comprises: developing the plan, monitoring and learning,
_______________ (three words), planning operations, and translating the plan.
10. ______________ (three words) is a method whereby managers and employees define goals for
every department, project and person, and use them to monitor subsequent performance.
11. ______________ (three words) focuses attention on the methods and processes are used to achieve
organisational goals.
12. A(n) _________________ (two words) is a visual representation of the key drivers of an
organisation success, showing the cause-and-effect relationships among goals and plan.
13. The ________________ (three words) represents the relationship between the goals and plans that
are set at each level of the organisation, and helps determine the level of strategic importance.
14. The five criteria for effective goals are: That they are specific and measurable, that they
________________ (three words), that they are challenging but realistic, that they have a defined
time period, and that they are ___________________ (three words).
ANS: cover key result areas; linked to rewards
15. The five criteria for effective goals are: that they are _______________ (three words), that they
cover key result areas, that they are challenging but realistic, that they have a_______________
(three words), and that they are linked to rewards.
16. Whereas _________________ (two words) are developed to achieve a set of ongoing goals,
single-use plans are developed specifically for one-off tasks.
17. _________________ (three words) are developed to achieve a set of goals are unlikely to be
repeated in the future.
18. The _________________ (two words) is used in organisations that have instituted quality
management (also called the ‘Plan, Do, Check, Act’ cycle).
19. Plans that define company responses to specific situations, such as emergencies, setbacks or
unexpected conditions are called ____________________ plans.
ANS: contingency
20. ___________________ (two words) is the planning activity which future possibilities are
visualised by extrapolating current trends and considering future discontinuities.
22. A group of planning specialists that develop corporate level strategies are usually employed within
a __________________________ (three words).
23. A detailed written plan that specifies the steps to be taken, and by whom, if a crisis occurs is
known as a(n) __________________________ (three words)
24. ________________ (two words) are often called official goals because they are the stated
intentions of what the organisation wants to achieve.
25. The final step in __________________ (three words) is to carefully evaluate whether annual goals
have been achieved for both individuals and departments.
26. ______________ goals or long-term plans are concerned with objectives greater than three years
into the future.
ANS: Strategic
27. One of the problems with ____________________ (three words) is that they are often out of touch
with the constantly changing realities faced by line managers and front-line workers.
29. A cross functional group of managers and employees to work together to gain a deeper
understanding the specific competitive issue is known as a(n) _________________.
30. The acts of rapid response, getting the truth out, and meeting safety and emotional needs are the
_________________ stage of crisis management .
ANS: containment
ANS:
A goal is a desired future state that the organisation attempts to realise. A plan is a blueprint
specifying the resource allocations, schedules and other actions necessary for attaining goals.
Planning is the management function concerned with defining goals for future organisational
performance and deciding on the tasks and resource use needed to attain them.
2. List the five reasons explicit goals and plans are important.
ANS:
Explicit goals and plans can serve the following functions: legitimacy; source of motivation and
commitment; guide to action; rationale for decisions; standard of performance.
ANS:
Goals should:
(1) be specific and measurable
(2) cover key result areas
(3) be challenging but realistic
(4) have a defined time period
(5) be linked to rewards.
4. Differentiate between the terms ‘strategic goal’, ‘tactical goal’ and ‘operational goal’.
ANS:
Strategic goals are broad statements of where the organisation wants to be in the future and pertain
to the organisation as a whole rather than to specific divisions or departments. Tactical goals define
the outcomes that major divisions and departments must achieve in order for the organisation to
reach its overall goals. Operational goals are the specific, measurable results expected from
departments, work groups and individuals within the organisation.
5. Management by objectives (MBO) is a method by which managers and employees define goals for
every department, project and person, and use them to monitor subsequent performance. In order
for an MBO program to be effective, four important criteria need to be met. Identify and discuss
these four criteria.
ANS:
Set goals; develop action plans; review progress; appraise overall performance
PTS: 1 DIF: Easy NAT: AACSB Analytic
TOP: MBO
ANS:
Plan, Do, Check, Act.
7. List the three essential stages of a crisis management plan. What is their link to the four
management functions of planning, leading, organising and controlling?
ANS:
Students should identify the three stages of crisis management (prevention, preparation and
containment). The student should then be able to link these three stages to each of the four
management functions. For example:
Planning: managers should undertake risk assessments as part of their strategic, tactical and
operational goal setting tasks etc.
Leading: managers should demonstrate through their actions the appropriate manner in which to
highlight risky behaviour to senior management.
ANS:
Benefits: Goals and plans provide a source of motivation and commitment; goals and plans guide
resource allocation; goals and plans are a guide to action; goals and plans set a standard of
performance.
Limitations: Goals and plans can create a false sense of certainty; goals and plans may cause
rigidity in a turbulent environment; goals and plans can get in the way of intuition and creativity.
ANS:
Centralised planning is considered the ‘traditional’ management approach, where power and
decision-making reside at the top levels of an organisation’s hierarchy. Decentralised planning on
the other hand, shifts power to the lower levels of the organisation and enables middle
management and lower-level employees to make plans and decisions related to their area of
specific expertise.
ANS:
Plans and goals benefit the organisation in several ways. They provide legitimacy and a reason for
existence. They also provide a source of motivation and commitment, guides for action and
decision making, and they set a standard of performance.
ANS:
The highest level is the mission statement, which defines the organisation’s basic business scope
and operations and specifies its reasons for existence. The second level is the level of strategic
goals and plans. These pertain to the organisation as a whole and specify where the organisation
wants to be in the future. The third level is the tactical level, with a focus on outcomes that major
divisions and departments must achieve in order for the organisation to reach its overall goals. The
fourth and lowest level is the operational level, involving specific measurable results for
departments, work groups and individuals.
3. List and define the four major activities that must occur in order for management by objectives
(MBO) to succeed.
ANS:
The initial step is setting goals. The setting of goals involves employees at all levels and should
incorporate the principles of effective goal setting. Goals should be jointly determined by manager
and employee, so as to increase the employee’s level of commitment. The second step is
developing action plans. These action plans will specify how the goals are to be achieved. Next, a
progress review is important to make sure that the action plans are working. They may be formal
or informal and the action plan should be changed if necessary. The final step is to determine if the
goals have been achieved within the specified time period. This appraisal should factor into the
setting of the next period’s goals, allowing for feedback into the setting of the next set of goals.
4. Define the new planning paradigm and explain the rationale behind it.
ANS:
The new planning paradigm has four components. First, start with a strong mission. Next, stretch
goals. Third, create an environment that encourages people to experiment and learn. Next, design a
new role for planning staff. Finally, make continuous improvement a way of life with total support
and commitment of top management for the planning process. This paradigm is based upon the
principle of decentralisation. It strives to involve workers at every level of the company. Due to the
volatility of the business environment, dynamic, timely plans are needed by today’s organisations.
The complexity of the problems and challenges facing today’s organisations mandates that all
employees, with their individual perspectives and talents, be involved.
PTS: 1 DIF: Difficult NAT: AACSB Analytic
TOP: Contemporary planning approach
5. Identify and define the five characteristics that are common to all effective goals. Using examples,
illustrate how effective goal setting will likely fail if any one of these criteria are not satisfied.
ANS:
Students will need to provide a discussion of the following goal characteristics: specific and
measurable; cover key result areas; challenging but realistic; defined period; linked to rewards.
Students will then be required to provide a series of specific examples indicating how the entire
goal setting process will likely fail if any of these criteria are not present. Students should consider
issues such as unrealistic expectations and/or time frames, subjectivity in goal design, and little
opportunity for workers to perform, etc.
6. Discuss the relationship between short-term, intermediate-term and long-term planning. In what
ways can a manager increase the probability that these planning types remain internally consistent
and capable of achieving the organisation’s overarching strategy?
ANS:
Students should be able to link short-term planning with operational goals, intermediate-term
planning with tactical goals and long-term planning with strategic goals. More importantly,
students should be able to discuss how each planning type should reinforce the others, and that
consistency between the planning types is crucial if the organisation wishes to achieve its strategic
goals effectively and efficiently.
7. Identify the five stages of the organisational planning process. Using examples, described the
functions that occur in each of the five stages.
ANS:
The student should be able to identify the five stages of the organisational planning process as the
following: develop the plan, translate the plan, plan operations, execute the plan and monitor and
learn. For each of these stages, the following functions should be included in the student’s answer:
1. Develop the plan: Define the organisation’s mission and vision, and set goals accordingly.
2. Translate the plan: Define tactical plans objectives, develop strategy maps, define
contingency plans scenarios, and identify intelligence teams.
3. Plan operations: Define operational goals and plans, select measures and targets, set stretch
goals, and crisis planning.
4. Execute the plan: Use management by objectives, performance dashboards, single use
plans, and decentralise responsibility.
5. Monitor and learn: Hold planning and operational reviews.
For each of the functions, the student should be able to include real or imagined examples to
demonstrate their understanding of the concepts.