British Columbia Institute of Technology

BUSA 1305

Chapter 3 Planning and Goal Setting

1)When organizations measure performance, the topic of                                                        is almost certain to be discussed.

1. 1. strategic objectives
   2. productivity
   3. strategic planning
   4. performance improvement
   5. continuous-improvement

2. Productivity is                                                            expressed as the ratio of output divided by labor + capital + material.
   1. output per manufactured unit
   2. input per labor hour
   3. output per labor hour
   4. input per manufactured unit
   5. efficiency per labor hour

3. Of the following, which is NOT a part of the productivity formula?
   1. materials
   2. capital
   3. labor
   4. services
   5. output

4. Which of the following represents the levels that productivity can be applied?
   1. individual, group, and total organization
   2. strategic business unit, group, and total organization

1. 3. group, administrative staff, top management
   4. operatives, mid-level, and top management
   5. individual supervisor, and top management

5. Of the following, which did management consultant and quality expert, W. Edwards Deming, believe were the primary source of increased productivity?
   1. Supervisors
   2. Operatives
   3. Laborers
   4. Top management
   5. Workers

6. The truly effective organization maximizes productivity by successfully integrating people into the

1. 1. overall operations system.
   2. research and development systems
   3. overall quality management system
   4. entire management structure
   5. manufacturing process

7. Discuss the factors that contribute to the steady rise of productivity in the United States.

8.                                         covers the entire organization; it includes establishing overall goals and positioning the organization’s products or services against the competition.

1. 1. Financial planning

1. 2. Research and development planning
   3. Tactical planning
   4. Business development and sales planning
   5. Strategic planning

9. The Walmart store manager in Fayetteville, Arkansas, is engaged in                                             when developing a quarterly expense budget or making out weekly employee work schedules.
   1. strategic planning
   2. tactical planning
   3. financial planning
   4. operations planning
   5. marketing planning

10. People in                                                jobs, such as regional sales directors, typically focus on one- to five- year plans.
    1. top-level managerial
    2. lower-level managerial
    3. sales ,management
    4. middle-level managerial
    5. executive level managerial

11. Once top management has defined the organization’s overall strategy and goals and the general plan for getting there, then                                                                                         .
    1. the plan goes to the board of directors for approval.
    2. the chief financial officer reviews the financials.
    3. other levels of the organization develop plans.
    4. finance and sales develop sales and financial projections.
    5. sales and marketing develop sales and marketing budgets.

11. Supervisors generally perform                                                 .
    1. marketing planning
    2. sales planning

1. 3. strategic planning
   4. tactical planning
   5. operations planning

12. It is important to remember that effective planning is integrated and coordinated throughout the organization. Describe the difference between strategic and tactical planning and how they are linked throughout the organization.

13. In addition to                                                        , three other quality elements can be useful in planning, which are benchmarking, ISO 9000 series, and Six Sigma.
    1. continuous-improvement programs
    2. re-engineering programs
    3. stage-gate methodology
    4. manufacturing innovation
    5. predictive analytics

14. To the degree an organization can satisfy a customer’s need for quality, it can also

                                                                           and attract and hold a loyal customer base.

1. 1. successfully market
   2. differentiate itself from the competition
   3. introduce new products
   4. meet financial goals and objectives
   5. implement new innovation programs

15. The search for and utilization of the best methods used by competitors and non-competitors that lead to superior performance is called                                                       .
    1. benchmarking
    2. dashboarding
    3. performance improvement
    4. business analytics
    5. continuous improvement

16. In years past, purchasers had to accept individual “guarantees” that what was being sold met their needs and standards. Which of the following represents a guarantee of standards?
    1. ISO 26000
    2. ISO 9000
    3. ISO 22000
    4. ISO 31000
    5. ISO 13485

17. Once ISO standards are met, the standards assure customers that a company uses specific steps to maintain its certification. Of the following, which is NOT one of those steps?
    1. Companies must test the products it sells
    2. Continuously train employees to ensure up-to-date skills, knowledge, and abilities
    3. Companies must maintain satisfactory records of its operations
    4. Companies must correct problems when they occur
    5. Companies must share their intellectual property

18. ISO certification can offer more than just a competitive advantage; it also

1. 1. gives the company a research and development advantage
   2. gives the company a competitive pricing advantage
   3. permits the company to open pursue innovative products
   4. permits the company’s entry into some markets not otherwise accessible
   5. enables the company to expand manufacturing capacities

19. Of the following ISO certifications, which demonstrates that companies are environmentally responsible?
    1. ISO 13485
    2. ISO 26000
    3. ISO 9000
    4. ISO 22000
    5. ISO 14000

20.                                      attempts to “design in” quality as the product is being made rather than measuring the quality of a product after it is produced.
    1. The Six Sigma concept
    2. Continuous improvement
    3. ISO 9000
    4. Reengineering
    5. ISO 14000

21. Six Sigma consists of twelve basic process steps. Of the following, which is NOT one of those process steps?
    1. Establish the current processes capability.
    2. Define lowest acceptable performance limits.
    3. Validate the measurement system, methods, and procedures.
    4. Select the critical-to-quality characteristics.
    5. Define the required performance standards.

22. Explain why an increasing number of organizations are applying quality practices such as benchmarking, ISO 9000, and Six Sigma as a way to build a competitive advantage.

23.                                      allow supervisors to save time by handling similar situations in a predetermined and consistent manner.
    1. Processes
    2. Procedures
    3. Standing plans
    4. Programs
    5. Policies

24.                       are broad guidelines for supervisory action.
    1. Standing plans
    2. Processes
    3. Programs
    4. Policies
    5. Procedures

25. Of the following groups, which normally interpret and apply policies, but rarely make them?
    1. Top management
    2. Vendors
    3. Supervisors
    4. Operatives
    5. Laborers

26. A series of steps for responding to a recurring problem describes a                                                 .
    1. standing plan
    2. process
    3. program
    4. policy
    5. procedure

27. Which of the following is frequently used by supervisors to confront a recurring problem because they are simple to follow and ensure consistency?
    1. Processes
    2. Procedures
    3. Standing plans
    4. Programs
    5. Rules

28. The most popular types of single-use plans are                                                       .
    1. procedures, budgets, and rules
    2. programs, budgets, and schedules
    3. programs, processes, and schedules
    4. policies, procedures, and schedules
    5. rules, policies, and procedures

29. A single-use set of plans for a specific major undertaking within the organization’s overall goals is a

                           .

1. 1. process
   2. procedure
   3. standing plan
   4. program
   5. rule

30. A budget is a numerical plan that expresses anticipated results in dollar terms for a specific period. A budget is used as a planning guide as well as a control device. Explain why a budget is used as a control device.

31. A bar graph with time on the horizontal axis and activities to be scheduled on the vertical axis is a

1. 1. scatter plot
   2. flow chart
   3. Gantt chart
   4. PERT chart
   5. pie chart

32. Which type of chart visually shows a supervisor what has to be done to complete a job and to assess whether it is ahead, behind, or on schedule?
    1. pie chart
    2. scatter plot
    3. flow chart
    4. Gantt chart
    5. PERT chart

33. The Gantt chart can be extremely helpful in organizations. What are the Gantts’ drawbacks if a supervisor had to plan a large project such as reorganizing a department, launching a cost-reduction campaign, or installing a major piece of new equipment?

34. Which type of chart depicts the sequence of activities needed to complete a project and the time or costs associated with each activity?
    1. pie chart
    2. scatter plot
    3. flow chart
    4. Gantt chart
    5. PERT chart

35. To understand how to construct a PERT chart, which three terms do you need to know?
    1. Events, activities, and critical path
    2. Events, timeline, and budget
    3. Schedules, timeline, and events
    4. Activities, critical path, and completion date
    5. Critical path, timeline, and budget

36. A PERT chart allows supervisors to monitor a project’s progress, identify possible bottlenecks, and shift resources as necessary to                                                        .
    1. keep a project on budget.
    2. keep the project on schedule.
    3. keep labor costs at a minimum
    4. maximize time-to-market
    5. minimize materials costs

37. Developing a                                 requires the supervisor to identify all key activities needed to complete a project, rank them in order of dependence, and estimate each activity’s completion time.
    1. pie chart
    2. scatter plot
    3. flow chart
    4. Gantt chart
    5. PERT chart

38. Developing a PERT chart requires the supervisor to identify all key activities needed to complete a project, rank them in order of dependence, and estimate each activity’s completion time. This can be translated into five specific steps, Name and briefly describe each of the five specific steps.

39.                                              is a system by which employees jointly determine specific performance objectives with their supervisors, progress is periodically reviewed, and rewards allocated on that basis.
    1. Management by objectives
    2. An annual review
    3. Performance review
    4. Achievement assessment
    5. Goal setting

40.                                         is the process by which objectives are made operational by devising a process so they cascade through the organization.
    1. Management by objectives
    2. Strategic planning
    3. Re-engineering
    4. Continuous improvement
    5. Goal setting

41. There are four common ingredients of successful goal setting. Of the following, which is NOT one of those keys to successful goal-setting                                       .
    1. rolling performance reviews
    2. goal specificity
    3. time limits
    4. participation
    5. performance feedback

42. A way to evaluate organizational performance from more than just the financial perspective is by using

                                                           .

1. 1. performance improvement techniques
   2. continuous improvement techniques.
   3. a balanced scorecard.
   4. management by objectives
   5. predictive analytics.

43. A balanced scorecard typically looks at four areas that contribute to a company’s performance. Of the following, which is NOT one of those four areas?
    1. Financial
    2. Customer
    3. Internal processes
    4. External processes
    5. People/innovation/growth assets

44. Why is the balanced scorecard considered the natural evolution of goal setting?

45. Changes in technology, the economy, and social conditions such as two-income families, has fostered

                                                                .

1. 1. more small business failures.
   2. greater debt for start-up ventures.
   3. an increase in entrepreneurial startup companies
   4. changes in the way start-up companies are funded
   5. an increase in foreign investments in start-up ventures

46. The process of starting new businesses, generally in response to opportunities is called

                                                           .

1. 1. opportunism
   2. capitalism
   3. socialism
   4. entrepreneurship
   5. incorporation

47. Entrepreneurial ventures, organizations that pursue new opportunities, are characterized by        , and have growth and profitability as their main goals.
    1. wealthy founders
    2. innovative practices
    3. founders with prior records of success
    4. one or more engineers
    5. aggressive business practices

48. Supervisors in larger organizations that create intensity and possess an entrepreneurial spirit are sometimes called                                           .
    1. intraprenurs
    2. innovators
    3. mavericks
    4. outliers
    5. entrepreneurs

48. One of the most researched topics in entrepreneurship has been the search to determine what, if any, psychological characteristics entrepreneurs have in common. Of the following, which is NOT one of those characteristics?
    1. High level of motivation
    2. Persistent problem solver
    3. High degree of initiative
    4. Risk averse
    5. Great persistence

49. The ability of small firms to successfully                                                         is rated as one of the most important factors influencing organizational success.
    1. raise capital
    2. innovate
    3. recruit employees
    4. commercialize
    5. scale and expand