Deck 5: Plans and Planning Tools

Question 1

Targets to be achieved in one year or less are called ________.

A) time-bound actions
B) departmentalized goals
C) short-term objectives
D) long-term objectives
E) intermediate-term plans

Answer 1

C

Question 2

What is planning? What are the advantages and potential disadvantages of planning?

Answer 2

Planning is the process of determining how the organization can get where it wants to go, and what it will do to accomplish its objectives.
A vigorous planning program produces many benefits. First, it helps managers to be future-oriented. They are forced to look beyond their everyday problems to project what situations may confront them in the future. Second, a sound-planning program enhances decision coordination. Third, planning emphasizes organizational objectives. Because organizational objectives are the starting points for planning, managers are continually reminded of exactly what their organization is trying to accomplish. Planning does not eliminate risk, but it does help managers identify and deal with organizational problems before they cause havoc in a business.
If the planning function is not well executed, planning can have several disadvantages for the organization. For example, an overemphasized planning program can take up too much managerial time. Managers must strike an appropriate balance between time spent on planning and time spent on organizing, influencing, and controlling. If they don't, some activities that are extremely important to the success of the organization may be neglected. Overall, the advantages of planning definitely outweigh the disadvantages. Usually, the disadvantages of planning result from using the planning function incorrectly.

Question 3

A potential disadvantage of planning is that it can take up too much managerial time.

Answer 3

True

Question 4

The affirmative purpose of planning is to ________.

A) increase the degree of organizational success
B) increase the level of workplace diversity
C) optimize the use of organizational resources
D) refine work methods and reduce production costs
E) improve organizational compliance with industry standards

Question 5

The process of determining how an organization can get where it wants to go and what it will do to accomplish its objectives is known as ________.

A) organizing
B) influencing
C) planning
D) controlling
E) analyzing

Question 6

Which of the following is an advantage of planning?

A) It eliminates all risks.
B) It enhances decision coordination.
C) It emphasizes immediate goals.
D) It suboptimizes the use of resources.
E) It promotes individual performance.

Question 7

Which of the following is the fundamental purpose of planning?

A) eliminating risk
B) helping the organization reach its objectives
C) optimizing the use of resources
D) identifying organizational objectives
E) organizing work processes

Question 8

The protective purpose of planning is to ________.

A) ensure integration among the organization's various business units
B) increase the degree of organizational success
C) optimize the use of organizational resources
D) minimize risk by reducing the uncertainties surrounding business conditions
E) maximize the organization's ability to leverage environmental opportunities

Question 9

________ refers to what a firm exists to do, given a particular group of customers and customer needs.

A) An operational plan
B) A unique selling proposition
C) An organizational purpose
D) A long-term goal
E) A vision statement

Question 10

Which of the following is an example of a statement of organizational purpose?

A) to increase the company's market share by 20 percent by 2011
B) to execute all projects in a timely and professional manner
C) to be the leading provider of professional health care services
D) to provide our employees with a challenging and rewarding work environment
E) to build long-lasting customer relationships based on trust

Question 11

Plans fail when management fails to grasp the overall planning process.

Question 12

________ is a standing plan that designates specific required action.

A) A resource
B) A rule
C) A budget
D) A strategy
E) A responsibility

Question 13

Planning is the process of determining how the organization can get where it wants to go and what it will do to accomplish its objectives.

Question 14

List and discuss two reasons for planning.

Question 15

A purpose of planning intended to minimize risk by reducing uncertainties in the managerial environment is known as ________ planning.

A) assumption
B) tactical
C) protective
D) elimination
E) premise

Question 16

A single-use financial plan that covers a specified length of time is known as a(n) ________.

A) offshoot
B) microsystem
C) spinoff
D) subsystem
E) budget

Question 17

Walt Biggs is general manager at a plumbing contractor. He is currently working on designing the procedures and policies the company will use as it schedules its employees on customer projects. Which of the following managerial functions is Walt undertaking?

A) planning
B) organizing
C) influencing
D) controlling
E) evaluating

Question 18

Which of the following two questions best summarizes the steps involved in the planning function?

A) Where are we going? What prevents us from getting there?
B) Where are we going? How do we get there?
C) Who is doing the work? How will they do it?
D) How can this firm reach its goals? When will they reach the goals?
E) Where are we going? When will we get there?

Question 19

A disadvantage of planning is that it ________.

A) causes managers to focus on the future
B) reduces organizational flexibility once plans are set
C) requires organizational resources
D) can take up too much managerial time
E) involves planning for situations that may not occur

Question 20

The Planning function is directly connected to which of these other managerial functions?

A) Leading
B) Organizing
C) Controlling
D) Directing
E) Moderating

Question 21

It is important for an organization to ensure that the objectives set for its employees are ________.

A) unrealistically high
B) within easy reach
C) low
D) within reach, but not easy reach
E) out of reach

Question 22

The targets toward which an open management system is directed are known as ________.

A) organizational purposes
B) operational plans
C) organizational objectives
D) business processes
E) objective indicators

Question 23

Describe the steps in the planning process.

Question 24

Marjorie is confused with the differences between policies and procedures. How would you explain these terms and their use in the planning process to Marjorie?

Question 25

When determining goals to increase profitability, a manager assuming his company can gain a larger share of its market is an example of a(an) ________.

A) premise
B) objective
C) contingency
D) affirmation
E) standing plan

Question 26

Alisa is trying to determine how to get her employees more involved in the company's plans and goals. Which of the following actions could she take as she begins identifying the goals for her department for the upcoming year?

A) Tell employees which goals they will be working on
B) Have employees determine goals for the department
C) Assign goals randomly to employees
D) Work collectively with employees on planning the goals for the department
E) Let upper management set all departmental goals

Question 27

A manager reviewing how to keep employees safe typically develops a workplace violence ________.

A) rule
B) policy
C) tactic
D) procedure
E) strategy

Question 28

Alternatives to reach an organizational objective are based on assumptions known as ________.

A) objectives
B) missions
C) goals
D) premises
E) priorities

Question 29

Walt is a sales manager charged with allocating funds, resources, and labor costs for the coming year. In doing so he is preparing a ________.

A) budget
B) standing plan
C) procedure
D) tactic
E) rule

Question 30

One of the organizational objectives of Valpo Industries, a pharmaceutical firm, is "to develop a new line of drugs for the treatment of life-threatening diseases such as cancer and AIDS, through the use of patented technology and processes." According to Drucker, this objective relates to ________.

A) market standing
B) innovation
C) productivity
D) profitability
E) public responsibility

Question 31

An organization's vision is what the organization exists to do, given a particular group of customers and customer needs.

Question 32

Which of the following is NOT one of the key areas in which Drucker advised managers to set management system objectives?

A) market standing
B) profitability
C) government regulation
D) innovation
E) public responsibility

Question 33

After identifying the alternative ways in which the organization can reach its objectives, a manager should ________.

A) develop plans for each alternative
B) choose the best alternative for reaching objectives
C) rank each alternative according to complexity
D) develop premises on which to base each alternative
E) choose the alternative which is most cost effective

Question 34

Which of the following steps in the planning process should precede the others?

A) develop premises upon which each alternative is based
B) develop plans to pursue the chosen alternative
C) list alternative ways of reaching objectives
D) choose the best alternative for reaching objectives
E) put plans into action

Question 35

Discuss the differences between plans, goals, objectives, premises, and assumptions.

Question 36

Premises are the assumptions upon which alternatives to reaching organizational objectives are based.

Question 37

________ is the key to a successful planning process.

A) Classification
B) Repetition
C) Implementation
D) Evaluation
E) Standardization

Question 38

According to Drucker, which of the following goal areas relates to a tangible, impersonal characteristic of organizational operations?

A) number of employees
B) innovation
C) managerial performance and development
D) worker performance and attitude
E) public responsibility

Question 39

When Apple integrated "green principles" into its manufacturing operations, the company was modifying its ________.

A) plans
B) rules
C) procedures
D) tactics
E) strategies

Question 40

When management at H&M buys and stocks only merchandise that has been produced using environmentally and socially sustainable methods, they are following a company ________ implemented at their corporate office.

A) procedure
B) policy
C) premise
D) assumption
E) plan

Question 41

HomeTurf is a retailer of wooden furniture. The firm currently has three stores and has plans to set up two more within the next eight months. This is an example of a(n) ________.

A) intermediate-term objective
B) short-sighted objective
C) long-term objective
D) short-term objective
E) suboptimal objective

Question 42

Which of the following refers to targets to be achieved within a time frame of five to seven years?

A) short-term objectives
B) intermediate-term plans
C) long-term objectives
D) operational goals
E) medium-term objectives

Question 43

Which of the following guidelines helps employees know exactly how managers will determine whether an objective has been reached?

A) Let people responsible for attaining objectives have a voice in setting them.
B) State objectives as specifically as possible.
C) Pinpoint expected results.
D) Set objectives only in relation to other organizational objectives.
E) Specify when goals are expected to be achieved.

Question 44

Which of the following is the rationale behind letting the people responsible for attaining certain objectives have a voice in setting them?

A) Employees are more capable than managers and are better at establishing objectives.
B) Managers are motivated when their employees are allowed to have a say in goal setting.
C) Employees can showcase their managerial potential when they are allowed to set their own goals.
D) Managers tend to set objectives that are often easily achievable and do not challenge employees.
E) The people responsible for attaining the objectives know their job better than the managers do.

Question 45

"To lower the rate of employee attrition within the organization by 5 percent through the use of effective employee retention and motivation techniques." Which of the following is a valid criticism of this objective?

A) It is not stated in a simple fashion.
B) It does not provide a time frame for achieving objectives.
C) It is not related to specific actions.
D) It is not achievable.
E) It does not pinpoint expected results.

Question 46

According to Drucker, management should set objectives that indicate the company's responsibilities to its customers and society but should not specify the extent to which the company intends to live up to these responsibilities.

Question 47

Plaxo Industries is a large-scale manufacturer of commercial kitchen equipment. Its products are currently sold in Europe and the Middle East. Plaxo wants to foray into the Asian market, and the company's management has set a target of entering the Chinese market by 2018. This is an example of a(n) ________.

A) short-term objective
B) intermediate-term objective
C) long-term objective
D) medium-term objective
E) operational objective

Question 48

Which of the following is NOT a guideline for establishing quality objectives?

A) Let people responsible for attaining objectives have a voice in setting them.
B) State objectives as specifically as possible.
C) Pinpoint expected results.
D) Set objectives that are not related to other organizational objectives.
E) Specify when goals are expected to be achieved.

Question 49

According to Drucker, which of the following statements is an example of an organizational objective related to productivity?

A) to reduce overall inventory management costs by 15 percent
B) to increase the use of environmentally friendly workplace practices
C) to lower the rate of attrition in the organization within the next 6 months
D) to increase the unit's monthly output by 10 percent within the next 12 months
E) to reduce total overhead costs by 5 percent by the end of the year

Question 50

Intermediate-term objectives are targets to be achieved in ________.

A) one year or less
B) one to five years
C) three to seven years
D) five to seven years
E) five to ten years

Question 51

In order to increase the quality of their objectives, managers should ________.

A) set employees' goals as high as possible
B) ensure that they set objectives entirely by themselves
C) establish goals that are within easy reach
D) let the people responsible for attaining the objectives have a voice in setting them
E) avoid relating objectives to specific actions

Question 52

Organizations exist for a variety of purposes, but many see ________ as their primary objective.

A) increasing shareholder wealth
B) making a profit
C) creating policies and procedures
D) writing objectives
E) advertising products

Question 53

When setting objectives, managers should state objectives as specifically as possible because ________.

A) it ensures that employees have explicit directions for what they should do
B) it ensures that employee productivity will vary according to the needs of the situation
C) it allows employees to make inferences about what they should do to accomplish their goals
D) it allows them to set the pace for employees' work
E) it reduces the risk of suboptimization

Question 54

One of the short-term objectives of Alport Corporation, a manufacturer of construction equipment, is "to achieve a 15 percent return on investment (ROI) by September 2011." According to Drucker, this objective relates to ________.

A) innovation
B) productivity
C) market standing
D) managerial performance
E) profitability

Question 55

It is important to provide employees with a time frame for accomplishing their objectives because ________.

A) it instills a sense of urgency in employees
B) it allows employees to pace themselves accordingly
C) it make the goals more meaningful
D) it reduces the risk of suboptimization
E) it motivates employees to improve their performance

Question 56

Tandem Industries is a cycle manufacturer. As part of its planning activities, it sets an objective to increase its market share by 5 percent within 3 years. This is an example of a(n) ________.

A) short-term objective
B) intermediate-term objective
C) long-term objective
D) suboptimal objective
E) principled objective

Question 57

Which of the following guidelines for establishing quality objectives helps in keeping the risk of suboptimization to a minimum?

A) relating objectives to specific actions whenever necessary
B) stating objectives as specifically as possible
C) setting objectives only in relation to other organizational objectives
D) specifying when goals are expected to be achieved
E) stating objectives clearly and simply

Question 58

Short-term objectives are targets to be achieved within five to seven years.

Question 59

According to Drucker, which of the following key areas for organizational objectives is more personal and subjective in nature, and hence likely to arouse managerial opposition?

A) productivity
B) innovation
C) worker performance and attitude
D) physical and financial resources
E) market standing

Question 60

A sales manager sets the following performance objective for members of his sales team: To increase customer sales by 10 percent within the next 6 months. Which of the following is a valid criticism of this objective?

A) It does not pinpoint expected results.
B) It is not stated in simple fashion.
C) It is not achievable.
D) It does not relate to specific actions.
E) It is not related to other organizational objectives.

Question 61

________ is the process of formulating a detailed listing of activities that must be accomplished to attain an objective, allocating the resources necessary to attain the objective, and setting up and following timetables for completing the objective.

A) Forecasting
B) Interacting
C) Regression
D) Scheduling
E) Networking

Question 62

Explain the management by objectives approach (MBO) and explain the three basic parts included in most MBO programs.

Question 63

Which of the following is the last step in the management by objectives (MBO) process?

A) review performance objectives
B) evaluate performance
C) give rewards
D) monitor progress
E) set performance goals

Question 64

One of the disadvantages of management by objectives (MBO) is that ________.

A) the program is very quick and informal
B) the process has no effect on worker commitment
C) the program only emphasizes what should be done in an organization
D) the process is time consuming and requires additional paperwork
E) the process is a mere duplication of other management practices

Question 65

Which of the following is the first step in the management by objectives (MBO) process?

A) set worker objectives
B) review organizational objectives
C) develop performance evaluation criteria
D) evaluate past performance
E) establish rewards

Question 66

After setting worker objectives, the next step in a management by objectives (MBO) program is to ________.

A) develop performance evaluation criteria
B) review organizational objectives
C) establish rewards
D) monitor progress
E) evaluate past performance

Question 67

One of the primary advantages of management by objectives (MBO) is that ________.

A) it saves time
B) it is an easy process
C) it gains employee commitment
D) it reduces the volume of paper work
E) it places the responsibility of goal attainment solely on managers

Question 68

Describe the eight key areas in which Drucker advised managers to set management system objectives.

Question 69

In a management by objectives program (MBO), why must managers be careful not to conclude automatically that employees have produced at an acceptable level simply because they have reached their objectives?

A) The objectives may have been set too low in the first place, and managers may have failed to recognize it at the time.
B) The MBO framework is naturally flawed and requires managers to use subjective criteria to evaluate performance.
C) The employees may have reached their objectives by means that the organization had not considered.
D) The MBO approach is merely on goal attainment and not on the level of effort expended.
E) The objectives set for employees may not be aligned with the overall organizational objectives.

Question 70

Which of the following is an accurate statement in reference to management by objectives (MBO)?

A) Rewards are given to workers independent from their objective attainment.
B) Managers and workers meet to agree on worker objectives.
C) Managers and workers do not meet to monitor progress.
D) Managers set objectives for workers without their input.
E) Rewards are given on the basis of the manager's effort.

Question 71

When using PERT, the sequence of events requiring the longest period of time is considered to be critical because one delay in the activities results in delays in the completion of a project.

Question 72

The sales force estimation method is a sales forecasting technique that tracks sales by estimating the perceptions of salespeople as a group.

Question 73

Organizations who set their goal targets high enough so that employees have to work above and beyond their typical productivity levels are highly successful organizations.

Question 74

________ are techniques managers can use to help develop plans.

A) Departmental planners
B) Organizational planners
C) Sales forecasts
D) Planning tools
E) Product stages

Question 75

Which of the following methods of sales forecasting is the most straightforward?

A) jury of executive opinion method
B) salesforce estimation method
C) moving average method
D) regression method
E) disturbance handler method

Question 76

________ is the process of predicting future environmental happenings that will influence the operation of the organization.

A) Forecasting
B) Disturbance
C) Planning
D) Scheduling
E) Monitoring

Question 77

________ method utilizes historical data to predict future sales levels.

A) Resource allocator
B) Disturbance handler
C) Salesforce estimation
D) Regression
E) Moving average

Question 78

What is the difference between an organizational objective and a statement of organizational purpose?

Question 79

Which of the following is NOT a necessary factor for a successful management by objectives (MBO) program?

A) Management must follow through on employee performance evaluations by rewarding employees accordingly.
B) Top management must be committed to the MBO process and set appropriate objectives for the organization.
C) Managers and subordinates together must develop and agree on each individual's goals.
D) Employee performance should be conscientiously evaluated against established objectives.
E) Managers must conclude automatically that employees have produced at an acceptable level because they have reached their objectives.

Question 80

Introduction, growth, maturity, saturation, and decline are stages of ________.

A) product allocation
B) product history
C) product lifecycle
D) service methods
E) resource allocation