Answer the following statements true (T) or false (F)

Question

1. The production plant for Ace Manufacturing has been located in the same place for over 100 years. It has just completed its new factory, which includes its new corporate offices. The planning required for moving Ace into a new facility is a single-use plan.
2. When utilizing MBO, 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 performance appraisals and rewards the employee according to the results.
3. Greg, owner of Comfortable Home Heating and Air, has been having problems with employee morale. After investigating, he found that some of his department managers were using management by objectives, but the accounting and sales managers were not utilizing MBO in their departments. For the MBO program to be successful, Greg must be sure that it is implements throughout his entire organization.
4. The planning/control cycle has two control steps: (1) control the direction by comparing results with the plan and (2) control the direction by increasing organization diversity and synergy.

Answer 1

1. TRUE
A program is a single-use plan encompassing a range of projects or activities. For example, the U.S. government space program had several projects, including the space shuttle project and the Hubble Telescope project. Ace's program will encompass a range of activities needed to move all of its operations into the new factory.
2. TRUE
When utilizing MBO, 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.
3. TRUE
To be effective, an MBO program must be put in place throughout the entire organization. That is, it cannot be applied in just some divisions and departments; it must be in all of them.
4. FALSE
The planning/control cycle has two control steps: control the direction by comparing results with the plan and control the direction by taking corrective action in two ways, namely by correcting deviations in the plan being carried out or by improving future plans.