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MBO provides a sound means of appraising individuals' performance by emphasizing objective criteria rather than personality characteristics.

A) True
B) False

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Total quality management (TQM) is a system for scheduling materials to arrive precisely when they are needed in the production process.

A) True
B) False

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Effective strategic planning usually begins with the development of a mission statement.

A) True
B) False

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Supervisors should not bother others when planning for the short-term because it will only pull employees away from what they are paid to do.

A) True
B) False

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_____ is an example of a major program.


A) Expansion of a manufacturing plant.
B) Problem-solving a customer's issue.
C) Reviewing the organization's operating budget.
D) Creating a new rule to address a compliance issue.

E) All of the above
F) A) and B)

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Written policies are more likely to be followed consistently than policies that are simply communicated orally.

A) True
B) False

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Policies help managers delegate authority because they guide the decisions a subordinate supervisor makes.

A) True
B) False

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In most organizations, responsibility for developing and executing strategic or long-term plans falls primarily to:


A) Top-level managers.
B) Middle managers.
C) Supervisors.
D) Non-supervisory employees.

E) None of the above
F) A) and D)

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Describe the most important reasons why firms have adopted the MBO model.

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First and foremost, MBO is results orien...

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Because budgeting is associated with control, the preparation of a budget should be left to higher-level management and supervisors should have no hand in it.

A) True
B) False

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Which of the following statements about employee work schedules is TRUE?


A) Work schedules should be based on maximum output.
B) Supervisors must plan for all employee absences.
C) Supervisors should expect all employees to work at their top speed at all times.
D) Employees tend to be a bit less productive when they are working overtime.

E) B) and D)
F) None of the above

Correct Answer

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Planning is a reactive approach to how a business can improve upon its mistakes.

A) True
B) False

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What is benchmarking? What are some of the steps that are used in the benchmarking process?

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Benchmarking is identifying and improvin...

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The goals formulated for an organization as a whole become the general framework for operations and lead to more specific objectives for department managers.

A) True
B) False

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Beatriz has been asked to create specific objectives for the quality-control department she supervises. Her company has received a number of complaints from customers who have found broken or ill-fitting parts in the products they have purchased. Which of the following would be a well-stated objective?


A) Reduce the number of defective products that leave the factory by 50% over the next four months.
B) Work smarter not harder.
C) Get it right the first time.
D) Strive for customer satisfaction at all times.

E) A) and B)
F) A) and C)

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Methods tend to be the most efficient way for the job to get completed.

A) True
B) False

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A budget is a single-use plan because once the stated period is over it is no longer valid.

A) True
B) False

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Upper management is typically responsible for long-term planning.

A) True
B) False

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A procedure is a standing plan that defines the sequence of activities to be performed to achieve objectives.

A) True
B) False

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Standing or single-use plans are policies, procedures, methods, and rules that can be applied to recurring situations.

A) True
B) False

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