Principle Of Management Quiz 1 Bba II A (June 11, 2020)

Explanation
Financial goals refer to the objectives and targets set by organizations to improve their internal financial performance. These goals are specifically focused on areas such as profitability, revenue growth, cost reduction, and cash flow management. By setting financial goals, organizations aim to enhance their financial stability, efficiency, and overall financial health. These goals are crucial for organizations to ensure their long-term sustainability and success in the competitive business environment.

Explanation
Informal refers to a type of communication or structure that is not written down, lacks a long-term focus, and is specific to a particular organizational unit. This means that it is not formalized or official, but rather exists as informal interactions, relationships, or practices within a specific group or department. It may involve unofficial conversations, unwritten rules, or informal networks that are unique to a particular unit or team.

Explanation
Formal planning is associated with high profits and returns on assets because it involves a systematic and structured approach to setting goals, developing strategies, and implementing actions. Formal planning typically includes the use of data analysis, forecasting, and objective decision-making processes, which can help organizations identify opportunities for growth and maximize their resources. This type of planning ensures that all aspects of the business are considered and aligned with the overall objectives, leading to more effective and efficient operations, ultimately resulting in higher profits and returns on assets.

Explanation
Goals are the desired outcomes that individuals, groups, or entire organizations aim to achieve. Plans, strategic plans, and operational plans are all methods or strategies that are used to achieve these goals. However, goals specifically refer to the desired results or objectives that are set as targets to be accomplished. Therefore, goals are the correct answer as they represent the desired outcomes for individuals, groups, or entire organizations.

Explanation
The given options include goals, strategic plans, and operational plans. However, the correct answer is "plans" because plans are the documents that outline how goals are to be accomplished. Goals are the desired outcomes, while strategic plans and operational plans are specific types of plans that provide detailed strategies and actions to achieve those goals. Therefore, plans encompass all types of documents that outline the steps and actions required to accomplish goals.

Explanation
The correct answer is "Means end chain." This term refers to the integrated network of goals that is created when an organization establishes a clearly defined hierarchy of goals. In a means end chain, each goal is seen as a means to achieve a higher-level goal, ultimately leading to the organization's ultimate end goal. This concept helps to ensure that all goals are aligned and contribute to the overall success of the organization.

Explanation
Operational plans are specifically designed to cover a short time period and provide detailed guidelines on how to achieve the overall goals. These plans outline specific actions, tasks, and resources required to accomplish the objectives within a limited timeframe. They focus on the day-to-day operations and ensure that the organization's activities are aligned with the strategic plans. Operational plans are essential for effective implementation and execution of the overall goals in a short time period.

Explanation
The term "time frames extending beyond three years" suggests that the plan in question is intended for a longer period of time. A long term plan typically covers a time period of more than three years, making it the most suitable answer. Single use plans, directional plans, and short term plans are all more focused on shorter time frames and specific objectives, making them less likely to be the correct answer.

Explanation
A specific plan is the correct answer because it is clearly defined and leaves no room for interpretation. This type of plan provides clear instructions and details on what needs to be done, how it should be done, and when it should be done. It eliminates any ambiguity or confusion and ensures that everyone understands their roles and responsibilities.

Explanation
In the MBO (Management by Objectives) approach, goals are not set at the top of the organization. Instead, goals are set collaboratively between managers and employees, ensuring that they are aligned with the overall objectives of the organization. This approach promotes employee involvement and engagement in goal setting, leading to increased motivation and accountability. Thus, the correct answer is False.

Explanation
Well-designed goals should strike a balance between being challenging and attainable. If a goal is too easy, it may not motivate individuals to put in effort and may not lead to significant growth or improvement. On the other hand, if a goal is too challenging and unrealistic, individuals may become discouraged and demotivated, leading to a lack of progress. Therefore, well-designed goals should be challenging enough to inspire individuals to push themselves, but also attainable enough to provide a sense of accomplishment and progress.

Explanation
In a stable environment, an organization can predict and anticipate future events and changes more accurately. This allows them to make specific plans that are tailored to their needs and goals. By making specific plans, the organization can allocate resources effectively, set clear objectives, and implement strategies that are most suitable for the stable environment. This increases the chances of success and helps the organization adapt and thrive in the stable environment. Therefore, the statement that specific plans should be made in the stable environment of the organization is true.

Explanation
Planning is a crucial step in the management process that involves setting goals, objectives, and strategies to achieve them. It helps in determining the standards against which performance will be measured and controlled. By establishing these standards, planning provides a framework for controlling activities and ensuring that they align with the desired outcomes. Therefore, it can be said that planning sets the standards of controlling, making the statement true.

Explanation
Operational plans do not cover an extended period of time. They are short-term plans that focus on the day-to-day activities and tasks required to achieve specific objectives. These plans typically cover a shorter time frame, such as weeks or months, and are more detailed and specific compared to strategic plans which cover longer periods of time. Therefore, the correct answer is false.

Explanation
In traditional goal setting, successful achievement of objectives is not always reinforced by performance-based rewards. While performance-based rewards can be a common practice in some organizations, traditional goal setting may also involve other forms of reinforcement such as recognition, promotions, or bonuses based on seniority or other factors. Therefore, the statement that successful achievement of objectives is always reinforced by performance-based rewards is false.