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CHAPTER 5 ORGANIZATIONAL GOAL SETTING AND PLANNING True/False Questions *1. Of the four management functions, leading is considered the most fundamental because all other activities stem from leading. 2. The act of determining the organization’s goals and the means for achieving them is called goal setting. 3. The mission is the basis for the operational level of goals and plans, which in turn shapes the tactical level and strategic level. *4. Plans provide an organizational standard of assessment. 5. A goal provides the "why" of an organization's or subunit's existence whereas a plan tells "how" to achieve the goal. *6. Mission statements often reveal the company's philosophy as well as its reason for existing. 7. Strategic plans and goals are those that focus on where the organization wants to be in the future and pertain to the organization as a whole. 8. A mission statement is a broad statement of where the organization wants to be in the future. 9. Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. 10. Strategic goals typically are the responsibility of first-line supervisors. *11. One of the characteristics of effective goal setting is the allocation of limited rewards. 12. When goals are specific, measurable, challenging and linked to rewards, they are most effective. 13. For employees to feel motivated, the goals should be easy so that they can achieve them easily which in turn increases their motivation level.
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Chapter 5 – Organizational Goal Setting and Planning 14. MBO refers to managing by opportunity. 15. Reviewing progress is the most difficult step in an MBO process. 16. One of the problems with the MBO process is that strategic goals may be displaced by operational goals. 17. Standing plans define how the company will respond to specific situations such as natural emergencies or competitive setbacks. 18. Procedures focus on goals and plans while policies focus on the specific steps that organizational members use. *19. The three stages of crisis management are prevention, control, and containment. 20. A centralized planning group is a temporary group consisting of line managers responsible for developing strategic plans. *21. Because the Montblanc brand appeals to the luxury market better than its other competitors, this can be called its core competence. 22. The interaction of marketing and sales working together to produce profit greater than the total of both working separately is an example of synergy. *23. The sum of benefits received and costs paid by the customer is referred to as value. 24. SWOT analysis includes a review of the internal threats and opportunities. 25.
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