Title: Planning and Mission
Course: Question Banks

Q: An industrial chemical manufacturer had a company culture and mission statement that emphacized cutting costs and increasing revenue by any legal means. A new executive to the company begins requiring each department to come up with specific goals and objectives to become more socially and environmentally responsible. Each department supplies the new executive with their plans to match her criteria, but after three months, none have been implemented. This is an example of:
- a company whose mission and culture supports being socially responsible
- a company whose culture can be easily changed
- a company whose mission and culture are not aligned
A: a company whose mission and culture are not aligned

Q: Google’s motto is "Don't be evil." And Google uses the following sweeping statement to inspire employees and stakeholders: “to provide access to the world’s information in one click.” This is Google’s
- mission
- goal
- vision
A: vision

Q: There is a long-standing debate in the business world about the purpose of a company. Milton Friedman, a famous economist, argued that the only responsibility of company is to increase profits within the rules. But this leads to excesses like dumping pollutants that damage the community. One way to temper the profit goal is an explicit statement of
- written policies
- federal regulations
- corporate values
A: corporate values

Q: Johnson & Johnson was found guilty of misrepresenting a hip-replacement device. Executives knew there was a problem with the device but continued selling it for years. Better attention to Johnson & Johnson’s ________ might have saved the company from litigation and penalties.
- vision
- mission
- code of ethics
A: code of ethics

Q: Research shows that when actions are coordinated and focused on specific outcomes, they are much more effective. The primary mechanism for coordinating and focusing staff is
- control, which can correct staff actions with feedback
- organization, so that everyone knows their role
- plans, which can direct everyone’s actions toward desired outcomes
A: plans, which can direct everyone’s actions toward desired outcomes

Q: People are not motivated when they do not have clear goals and do not know what is expected of them. ________ reduces uncertainty and indicates what everyone is expected to accomplish.
- Insurance
- Competition between employees
- Planning
A: Planning

Q: What does “death by planning” mean?
- Planning is boring.
- Planners rarely know what they are doing.
- Planning can delay or prevent action.
A: Planning can delay or prevent action.

Q: Planning is a
- once-a-year process
- senior managment process without any middle management involvement
- process of continual adjustment
A: process of continual adjustment

Q: Kelly is a pediatrician who opened her own office three years ago. She took a goal-setting class and created seven goals for her organization and managers. This first step in her planning cycle is called
- setting SMART goals
- management by objectives
- defining objectives
A: defining objectives

Q: Kelly has experience and knows there is only one way to run her business—full steam ahead! Dr. Kelly will struggle with the planning cycle that recommends
- commitment to the plan
- a clear mission
- considering alternatives
A: considering alternatives

Q: Kim, a manager at a chiropractic office, created 12 goals and objectives for her organization. Each objective is linked to a specific report, and she has reports of those measures from the past three years. However, she has no marketing goal or patient referral projections for the future. This is an example of:
- setting too many goals and objectives
- setting an attainable goal
- measuring the past and not planning for future growth
A: measuring the past and not planning for future growth

Q: Planning activities provide an opportunity for input from the departments and people affected. Some organizations establish planning committees that intentionally include people from ________ backgrounds to bring ________ perspectives into the planning process.
- specialist, expert
- consulting, excellent
- diverse, new
A: diverse, new

Q: Boeing is planning a new aircraft. Customers want more fuel efficiency without sacrificing any features of the current models. To make improvements, Boeing will need several years to develop new methods and tools. Their plans are
- short term
- operational
- long term
A: long term

Q: Boeing’s engineering manager is developing a budget for the coming year. His team must produce lighter, more efficient designs for an aircraft engine. Most of his team members are experienced, but he must replace one junior engineer to help the team. His plans are
- long term
- financial
- short term
A: short term

Q: Senior management has written some policies about hiring new employees. This allows middle management to make decisions without constantly going back and asking permission. These plans are
- single-use plans
- strategic plans
- standing plans
A: standing plans

Q: The advantage of ________ plan is that it can be very specific in how it addresses the needs of a particular situation.
- a standing
- an ad hoc
- a single-use
A: a single-use

Q: Companies need consistency in their HR practices to avoid charges of discrimination. Senior management usually approves broad guidelines for HR activities, like hiring and firing, performance appraisals, promotions, and discipline. These are
- plans
- regulations
- policies
A: policies

Q: Procedures are steps to be followed in established and repeated operations. An investment advisor should write procedures for
- a market crisis like the Lehman Brothers failure in 2008
- times when the Federal Reserve raises interest rates
- the proper method for wiring funds to JP Morgan bank
A: the proper method for wiring funds to JP Morgan bank

Q: ________ look at each budget as if it were brand new and require managers to justify each of the budgeted items. This process ensures that budgets are closely tied to the latest organizational goals.
- Operational budgets
- Financial budgets
- Zero-based budgets
A: Zero-based budgets

Q: A ________ budget does not change or flex when sales or some other activity increases or decreases.
- flexible
- operational
- fixed
A: fixed

Q: Shell, an energy company, creates very long range forecasts about energy. The oil and gas businesses require large upfront investments against long-term paybacks. They want to understand the risks to those paybacks. This is called
- contingency planning
- budgeting
- scenario planning
A: scenario planning

Q: The Deepwater oil spill in the Gulf of Mexico in 2010 was made much worse because BP Oil did not have plans in place for surprises. Planning for unexpected events is called
- scenario planning
- disaster planning
- contingency planning
A: contingency planning

Q: When talking about goals, the acronym SMART stands for
- smart, measurable, attainable, realistic, and timely
- specific, meaningful, achievable, resourced, and timely
- specific, measurable, achievable, realistic, and time-bound
A: specific, measurable, achievable, realistic, and time-bound

Q: Management by objectives is Peter Drucker’s version of goal setting. His concept was to engage the employee’s intrinsic motivation. A manager should discuss the corporate goals with his employees and then
- set goals for each employee and then evaluate them quarterly
- set stretch goals for each employee so they’ll be motivated to grow
- jointly agree on goals, so that the employee commits to the goals
A: jointly agree on goals, so that the employee commits to the goals