31. ____ is the process for motivating employee performance in which the manager and employee jointly set objectives for the employee, the manager develops action plans, the manager and employee periodically review the employee's performance, and the manager makes a performance appraisal and rewards the employee according to the results achieved.

		Strategic planning
		MBO
		Observation theory
		MBAO
		An employee-management agreement

32. Which of the following is a tactical goal?

• By the end of this fiscal year, we will achieve a 10% cost reduction in our office expenses.

• Smoking on the factory floor is strictly prohibited; anyone caught smoking in company facilities will bedisciplined immediately.

• As a company, we are committed to increasing our online presence through social media.

• Within two years, we will enter into a strategic alliance with a company that is able to effectively market and sell our products in China, India, and other emerging economies.

• This company has a policy of conducting a background and credit check on all job applicants.

33. The Whole Foods chain of supermarkets has stated, "With great courage, integrity, and love, we embrace our responsibility to co-create a world where each of us, our communities, and our planet can flourish. All the while, celebrating the sheer love and joy of food." This proclamation is Whole Foods'

		values statement.
		vision statement.
		mission statement.
		corporate slogan.
		company tagline.

34. Which of the following is an example of a rule?

		"Sexual harassment will not be condoned in this organization."
		"We believe that the customer comes first."
		"We are committed to hiring a workforce whose diversity mirrors our customers."
		"At their discretion, department managers can offer summer working hours to their employees."
		"An employee who comes to work intoxicated will be terminated immediately."

35. With setting SMART goals, you should choose only a few goals on which to focus. These goals should be results-oriented and

		support the organization's vision.
		align with the beliefs of the local community.
		support the company's diversity plan.
		keep employees happy.
		meet low cost goals.

36. Paula is the store manager for a national grocery retailer, and she received the yearly tactical plan from Greg, her district manager. Paula is meeting with her department managers to plan how to implement the specific tasks outlined in Greg's plan for the next year. Paula is engaged in operational planning.

• True
• False

37. You receive a memo that reads as follows: In recent months, our customer evaluations have dropped, and our sales have decreased by 10 percent. To restore our business, we will do the following: (1) We will contact all of our customers and offer a 10 percent discount on their next purchase. (2) For the customers who spend more than $1,000 per year, we will invite them to join our Insiders Club, which gives them discounted tickets to concerts and sporting events. (3) Effective immediately, we will begin staffing our call center 24 hours a day, 7 days a week. (4) Customer-service personnel will be given more discretion in helping customers resolve problems, with minimal interference from supervisors. This memo is a(n)

• VRIO analysis.

• business model.

• action plan.

• a SMART goal.

• mission statement.

38. Every five years, the upper-level managers of ABC Technology meet to develop a new large-scale action plan that will set the direction for the company for the next five years. In that meeting the managers work on developing a strategy.

• True
• False

39. The purpose of MBO is to

		control subordinates.
		control costs.
		control lower-level management.
		increase market share and develop synergy.
		motivate subordinates.

40. Goals are arranged in a hierarchy known as a means-end chain because in the chain of management, the accomplishment of high-level goals is the means leading to the accomplishment of low-level goals or ends.

• True
• False