Test 1 Review 5

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 mission and culture are not aligned

• a company whose culture can be easily changed

• a company who does not care

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

• vision

• mission

• .goal

• objective

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

• federal regulations

• objectives

• written policies

• corporate values

What does “death by planning” mean?

• Planners rarely know what they are doing.

• Planning is boring.

• Planning can delay or prevent action.

• nothing

Planning is a

• process of continual adjustment

• once every 5 years

• senior management process without any middle management involvement

• once-a-year process

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

• defining objectives

• management by objectives

• write a vision statement

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.

• diverse, new

• consulting, excellent

• specialist, expert

• diverse, old

The advantage of ________ plan is that it can be very specific in how it addresses the needs of a particular situation.

• ad hoc

• standing plan

• multi use plan

• single-use

A ________ budget does not change or flex when sales or some other activity increases or decreases.

• fixed

• flexible

• operational

• Zero Based Budget

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

• jointly agree on goals, so that the employee commits to the goals

• set stretch goals for each employee so they’ll be motivated to grow

• set goals for each employee and then evaluate them quarterly

• set goals for each employee and then evaluate them each year