Deck 4: Planning and Decision Making

Question 1

Nancy was surprised her department's sales figures did not meet the goals she set in her plan. On further inspection,she realized the expectation that competition would not reduce their prices did not hold true. Which pitfall in planning is this an example of?

A)assumptions  
B)commitment  
C)assertion  
D)tactics

Answer 1

A

Question 2

What is the most popular approach to increasing goal commitment?

A)setting goals together as a team  
B)making goals public  
C)getting top management's support  
D)assigning realistic and attainable goals

Answer 2

A

Question 3

Patrick started a lawn service company and found that in his neighbourhood,the young families took pleasure from doing their own lawn care. When he began promoting his services to more mature neighbourhoods where older home owners wanted someone else to care for their lawns,Patrick was able to hit his sales targets. Which S.M.A.R.T goal guideline did Patrick follow?

A)Goals should be specific. 
B)Goals should be measurable. 
C)Goals should be attainable. 
D)Goals should be realistic.

Answer 3

D

Question 4

Eleanor gave her production team a specific objective of increasing production by 3 percent over the previous month and keeping rejects below the standard of 0.05 percent. Eleanor noticed the team having far more drive and energy,and overall more alertness and commitment to their tasks. Which benefit of planning is Eleanor seeing in her production team?

A)intensifies effort  
B)reduces uncertainty  
C)provides direction  
D)facilitates decision making

Question 5

According to the text,which of the following is a pitfall of planning?

A)the acceptance of sacrificing solutions  
B)a mistaken sense of certainty based on faulty assumptions  
C)the inability of line personnel to accept the long-term benefits of planning  
D)a need for expensive employee training before plans can be effectively implemented

Question 6

Which of the following is the most popular method for increasing goal commitment?

A)encouraging worker participation in goal setting  
B)keeping goals private  
C)setting ethical goals  
D)using an ombudsperson to set goals

Question 7

In July 2014,Rogers Communications saw second-quarter revenues of $3.21 billion and announced a plan to boost revenue. Which classical management function would be instrumental in achieving this goal?

A)motivating  
B)research and development  
C)planning  
D)marketing

Question 8

Which of the following is a commonly used method for increasing goal commitment?

A)rewarding whistle blowing  
B)making the desired aim public  
C)getting union support  
D)using the equity theory

Question 9

Which of the following is a favoured approach for tracking progress toward goal achievement?

A)setting response and stimulus goals  
B)gathering and providing performance feedback  
C)using operant and classical conditioning  
D)providing mechanistic and dynamic feedback

Question 10

Which of the following lists the specific steps,people,resources,and time period for accomplishing a goal?

A)a strategy  
B)a short-term goal  
C)a long-term goal  
D)an action plan

Question 11

Monica purchased a scale to make sure she reduced the weight of her racing bike by exactly seven grams. Which S.M.A.R.T goal guideline is Monica following?

A)Goals should be specific. 
B)Goals should be measurable. 
C)Goals should be attainable. 
D)Goals should be realistic.

Question 12

Thomas knows that the value of the Canadian dollar against the US dollar can greatly affect his hotel bookings. Thomas and his team have created several alternative plans and they are ready to make adjustments depending on what value the dollar will settle at. Which step in planning is this an example of?

A)maintain flexibility  
B)develop effective action plans  
C)develop goal commitment  
D)track progress toward goal achievement

Question 13

According to the textbook,which of the following is a benefit of planning?

A)It encourages people to work harder for extended periods. 
B)It encourages people to do others' jobs in a variety of different ways. 
C)It reduces employee turnover. 
D)It creates a mechanistic environment.

Question 14

A manufacturing manager is eliminating distractions from the factory so that workers can remain focused on completing their tasks. Which benefit of planning will result from the manager's actions?

A)intensifies effort  
B)reduces uncertainty  
C)provides direction  
D)facilitates decision making

Question 15

Lacy learned about planning in her management course. That night,Lacy set specific goals to achieve in doing her homework. Lacy's mom happily noticed Lacy complete an extra two hours of homework. Which benefit of planning did Lacy's mom witness?

A)intensifies effort  
B)reduces uncertainty  
C)provides direction  
D)facilitates decision making

Question 16

Mandy continues to put chocolates and toffees in her gift baskets since customers have always raved about them. Sales continue to decline with people being more health conscious,but Mandy feels they will still purchase her baskets for her delicious treats. Which pitfall of planning is this an example of?

A)Planning may produce a false sense of security. 
B)Planning may impede change and adaptation. 
C)Planners may be detached from the company and its environment. 
D)Planning can create laziness in workers.

Question 17

Ken's financial planning business produced far more sales when he changed his activities from "selling as many RRSPs as possible each month" to selling "$100,000 in RRSPs per month." Which S.M.A.R.T goal guideline is Ken following?

A)Goals should be specific. 
B)Goals should be measurable. 
C)Goals should be attainable. 
D)Goals should be timely.

Question 18

An increase in sales over the previous year seems likely since the economy is better this year than last year. Which aspect of S.M.A.R.T. goals would an increase in sales represent?

A)synergistic  
B)measurable  
C)attainable  
D)realistic

Question 19

After implementing a plan and giving his sales staff specific sales targets to achieve each month,Muhammad has found they waste far less time and their activities are all geared toward servicing customers,finding new clients,and closing the sale. Which benefit of planning is Muhammad seeing in his sales staff?

A)intensifies effort  
B)reduces uncertainty  
C)provides direction  
D)facilitates decision making

Question 20

According to the textbook,which of the following is a benefit of planning?

A)It improves vertical integration of departments. 
B)It encourages people to engage in behaviours directly related to goal accomplishment. 
C)It encourages people to remain with the company,rather than go to work for the competition. 
D)It eliminates the need for change agents.

Question 21

An Australian manufacturer of skis and snowboards wants to increase awareness of its brand in the Canadian market. A plan to accomplish this objective might be to host a series of skiing and snowboarding competitions in the Canadian Rockies to raise brand awareness. What type of plan is this?

A)contingency  
B)single-use  
C)visionary  
D)tactical

Question 22

What expresses the purpose and destination that a company hopes to reach?

A)vision statement  
B)action plan  
C)strategy  
D)mission statement

Question 23

A department store is experiencing greater than usual shrinkage,and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. What type of plan has middle management adopted?

A)contingency  
B)strategic  
C)operational  
D)tactical

Question 24

Which of the following can help organizations maintain flexibility as they plan?

A)strategic planning  
B)options-based planning  
C)assumptions-based planning  
D)change agent planning

Question 25

What levels of an organization must have goals and action plans that support the goals and action plans at the top of the organization for planning to work best?

A)bottom and staff levels  
B)top and middle levels  
C)bottom and middle levels  
D)group levels

Question 26

A manager had a goal to reduce the expenses incurred by the sales force. He examined the weekly expense sheets prepared by the individual salespeople and met with those who needed to further reduce their expenses. Which accepted method for tracking progress toward goal achievement was he using?

A)setting realistic and attainable goals  
B)gathering and providing performance feedback  
C)developing concrete action plans  
D)making sure goals are measurable

Question 27

Which statement provides a broad declaration of an organization's purpose that distinguishes it from the others of a similar type?

A)strategic statement  
B)mission statement  
C)vision statement  
D)value statement

Question 28

Disney is not in the movie and theme park business;it wants to create fun and fantasy for its customers. Which of the following is described by this statement?

A)transformational mission  
B)vision  
C)strategic mission  
D)target

Question 29

From where does a mission directly flow?

A)tactical plans  
B)contingency plans  
C)operational plans  
D)a vision

Question 30

Most people who have watched the television show Star Trek are familiar with this statement: "To explore strange new worlds,to seek out new life and new civilizations,to boldly go where no man has gone before." What is this statement an example of?

A)a plan of action  
B)a tactical plan  
C)a mission  
D)a strategy

Question 31

Which of the following within a company does NOT change over time?

A)the mission  
B)the vision  
C)the strategy  
D)the action plan

Question 32

A manufacturer of suntan lotion sets a goal to achieve a 3 percent increase in sales over the next three months. In relation to the time frame set to achieve it,what type of goal is this?

A)a strategic goal  
B)an operational goal  
C)a long-term goal  
D)a short-term goal

Question 33

Which type of planning keeps choices open by making small,simultaneous investments in many alternative plans?

A)learning-based  
B)options-based  
C)conditioned  
D)functional

Question 34

Which type of planning leaves commitments open by maintaining slack resources?

A)options-based planning  
B)learning-based planning  
C)traditional planning  
D)operant planning

Question 35

Anthony writes and frames a statement to give clear direction to his staff for what he wants his company to achieve. The statement says,"To provide the highest level of student career direction in Canada." What kind of statement did Anthony write?

A)a strategic statement  
B)a mission statement  
C)a vision statement  
D)a value statement

Question 36

A statement found at a certified organic food marketer's website reads,"At Seeds of Change,we're committed to making delicious foods that are healthy for you as well as the planet." This statement will not change over time. What type of statement is it?

A)vision  
B)mission  
C)statement of value  
D)discretionary responsibility

Question 37

Who is responsible for developing strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years?

A)an action team  
B)middle management  
C)planning staff  
D)top management

Question 38

What must an organization have for options-based planning to work?

A)slack resources  
B)use of cross-functional teams  
C)broad spans of management  
D)tall organizational structures

Question 39

Top management is responsible for developing plans that make clear how the company will serve customers and position itself against competitors in the next two to five years. Which term is usually associated with these types of long-term plans?

A)standing plans  
B)tactical plans  
C)operational plans  
D)strategic plans

Question 40

Richard writes a statement that he plans to frame and hang on the wall to motivate his staff. The statement says,"To rekindle optimism and ethical behaviour in our youth,one student at a time." What kind of statement did Richard write?

A)strategic statement  
B)mission statement  
C)vision statement  
D)value statement

Question 41

The European Union encourages companies to abandon national boundaries and offer the same products to all of the member countries. Allianz,Germany's largest insurance group,is considering converting from a German company to a European company. If it makes this decision rationally,what will it do first?

A)It will create decision criteria based on national GNPs. 
B)It will identify problems arising from tax and regulatory issues. 
C)It will decide whether to expand to one nation at a time. 
D)It will create a committee to make the final decision.

Question 42

What is the term for a systematic process of defining problems,evaluating alternatives,and choosing optimal solutions?

A)problem identification  
B)rational decision making  
C)benchmarking  
D)multivariable selection

Question 43

What is the term for the process of choosing a solution from available alternatives?

A)decision making  
B)problem identification  
C)multivariable selection  
D)problem solving

Question 44

Which of the following are the most specific type of standing plan?

A)policies  
B)procedures  
C)rules and regulations  
D)forecasts

Question 45

New employees are instructed to never wear loose-fitting clothes when working around the canning machine. What kind of standing plan is this?

A)rules and regulations  
B)procedures  
C)policies  
D)organizational norms

Question 46

What type of plans are single-use plans,standing plans,and budgets?

A)strategic  
B)tactical  
C)operational  
D)MBO

Question 47

Which of the following is a type of operational plan?

A)single-use plans  
B)contingency plans  
C)short-term strategies  
D)mission modifications

Question 48

Who is primarily responsible for developing operational plans?

A)lower-level managers  
B)middle managers  
C)top managers  
D)staff advisers

Question 49

Which of the following are types of standing plans?

A)policies and procedures  
B)targeted plans  
C)long-term tactical strategies  
D)transformational plans

Question 50

In case of a fire,most organizations have a series of actions that must take place,beginning with notifying the fire department and including evacuating buildings. What kind of standing plan is this?

A)rules and regulations  
B)procedures  
C)policies  
D)organizational norms

Question 51

What standing plan indicates the general course of action that should be taken in response to a particular event or situation?

A)policy  
B)procedure  
C)rule  
D)regulation

Question 52

Which type of plan directs the behaviour,efforts,and priorities of employees for periods ranging from one month to six months?

A)strategic  
B)tactical  
C)operational  
D)standing

Question 53

Who is responsible for creating tactical plans?

A)team leaders  
B)lower-level managers  
C)middle managers  
D)top managers

Question 54

Neither Chile nor Peru has a mass-market café culture,but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee in the quantity that people do in North America,Starbucks has begun a process involving problem identification. What type of process is this?

A)rational decision making  
B)trend analysis  
C)sacrificing  
D)selection of optimal solutions

Question 55

What type of plan would be used to create the festivities to celebrate the 100-year anniversary of a manufacturer?

A)single-use plan  
B)contingency plan  
C)scenario plan  
D)standing plan

Question 56

Which type of standing plan indicates the specific steps that should be taken in response to a particular event?

A)policies  
B)procedures  
C)actionable plans  
D)single-use plans

Question 57

Which type of operational plan saves managers time because it is created once and then used repeatedly to handle frequently recurring events?

A)standing plan  
B)budget plan  
C)multiple-use plan  
D)options-based plan

Question 58

What type of planning is a budget?

A)strategic  
B)tactical  
C)operational  
D)actionable

Question 59

What type of plan specifies how a company will use resources,budgets,and people to accomplish specific goals within its mission?

A)strategic  
B)tactical  
C)operational  
D)single-use

Question 60

Neither Chile nor Peru has a mass-market café culture,but that fact has not stopped Starbucks from trying to determine how best to expand into those markets. What process is Starbucks engaging in?

A)intuitive conditioning  
B)benchmarking  
C)decision making  
D)organizational design

Question 61

Narrative 4-1
Whole Foods is an American-based natural and organic foods retailer that has grown from one store to 424 in the United States since 1980,with an additional 12 in Canada and nine in the United Kingdom. In 2015,CEO John Mackey announced the chain would grow to 40 Canadian locations,and was then looking for a Montreal location. Later,the company committed to a timeline for an Edmonton store to open in fall 2016 and a Calgary store to open in summer 2017. However,in January 2017,the retailer announced it was not proceeding with its Alberta openings.
Refer to Narrative 4-1. Krispy Kreme has a goal to grow to 40 stores in Canada. What type of goal is this?

A)long-term  
B)temporal  
C)adjacent  
D)short-term

Question 62

What term is usually associated with the emotional reaction that can occur when disagreements become personal rather than professional?

A)a-type conflict  
B)c-type conflict  
C)emotive empowerment  
D)organizational disharmony

Question 63

What have studies of the proper use of the devil's advocacy approach shown?

A)The approach leads to less a-type conflict. 
B)The approach leads to improved decision mentoring. 
C)The approach leads to greater acceptance of decisions once they have been made. 
D)The approach introduces c-type conflict into the decision-making process.

Question 64

How does the nominal group technique improve group decision making?

A)The technique requires the selection of co-leaders to prevent member dominance. 
B)The technique provides predetermined group norms. 
C)The technique eliminates group cohesiveness. 
D)The technique decreases a-type conflict.

Question 65

In which type of comparison is each criterion compared directly to other criteria?

A)relative  
B)specific  
C)absolute  
D)attainable

Question 66

When Lululemon discovered it had as many as 50 Chinese websites selling counterfeit knockoffs,it used the rational decision-making process to find a solution. The managers at Lululemon evaluated the possible courses of action. According to the text,what would Lululemon have likely found about this stage of the decision-making process?

A)that this stage was the least expensive of all the stages  
B)that this stage was the most time consuming of all the stages  
C)that this stage was the last stage in the process for Lululemon  
D)that this stage required Lululemon to use complex mathematical models

Question 67

Which statement presents a rule for effective brainstorming?

A)Limit ideas to conserve time. 
B)Build on others' ideas  
C)Give certain people in the group the most freedom to generate ideas. 
D)Allow criticism.

Question 68

Which of the following is one of the eight steps in the rational decision-making process?

A)choose a minimally acceptable alternative solution  
B)evaluate the effectiveness of the decision  
C)weight the criteria  
D)introduce the decision to those who will be affected by it

Question 69

What is said to exist when there is a gap between a desired state-what managers want-and an existing state-the situation that the managers are facing?

A)a service gap  
B)a benchmark  
C)a condition of uncertainty  
D)a problem

Question 70

In which decision-making method do group members spend quiet time thinking about potential problem definitions and solutions?

A)dialectical inquiry technique  
B)nominal group technique  
C)Delphi technique  
D)electronic brainstorming technique

Question 71

In 2013,Lululemon battled as many as 50 websites selling counterfeit yoga apparel. Which of the following do the unauthorized websites best exemplify?

A)a standard of malfeasance  
B)a problem  
C)a benchmark  
D)a keystone issue

Question 72

In 2013,Lululemon became aware of numerous Chinese websites selling counterfeit goods. They decided they had to take legal action,ignore the sites,or reach a distribution agreement with the sites. In which stage of the rational decision-making process would this decision have been made?

A)problem definition  
B)criteria weighting  
C)generation of alternative courses of action  
D)identification of decision criteria

Question 73

As a company that manufactures janitorial cleaning supplies tries to develop more environmentally friendly products that can clean as well as its current ones,the company's manager must select among alternatives derived from oranges,parsley,lemon,or a combination of these ingredients. Which step in the rational decision-making model is this?

A)generate alternative courses of action  
B)evaluate each alternative  
C)compute the optimal decision  
D)implement the optimal alternative

Question 74

Which step(s)in the decision-making process can be done better by groups than by individuals?

A)defining the problem and generating alternatives  
B)creating cohesive solutions to organizational problems as a whole  
C)creating weighted alternatives and coping with bounded rationality  
D)dealing with the problems associated with bounded rationality

Question 75

Narrative 4-1
Whole Foods is an American-based natural and organic foods retailer that has grown from one store to 424 in the United States since 1980,with an additional 12 in Canada and nine in the United Kingdom. In 2015,CEO John Mackey announced the chain would grow to 40 Canadian locations,and was then looking for a Montreal location. Later,the company committed to a timeline for an Edmonton store to open in fall 2016 and a Calgary store to open in summer 2017. However,in January 2017,the retailer announced it was not proceeding with its Alberta openings.
Refer to Narrative 4-1. How does Whole Foods benefit from planning?

A)Planning makes persistence unnecessary. 
B)Planning allows managers to direct their employees to "do their best."  
C)Planning gives direction to managers and employees. 
D)Planning eliminates the need for task strategies.

Question 76

Where does groupthink often occur?

A)in newly formed groups whose members were arbitrarily selected and who are assigned to make programmed decisions  
B)in groups in which members have dissimilar backgrounds  
C)in standing committees whose members are under no pressure to agree  
D)in highly cohesive groups where there is much pressure for members to agree

Question 77

In which process is each decision compared directly to every other criterion?

A)absolute comparisons  
B)relative comparisons  
C)minimum comparative threshold  
D)comparative ranking scales

Question 78

In which approach to decision making is an individual or a subgroup assigned the role of a critic?

A)dialectical inquiry  
B)groupthink  
C)devil's advocacy  
D)Delphi technique

Question 79

Joyce wishes to reduce flaws produced by her night shift. At each stage of production she has her production supervisor measure 20 samples to ensure they are each within 0.005 mm of the required size. What type of comparison is Joyce having her supervisor conduct?

A)relative  
B)specific  
C)absolute  
D)attainable

Question 80

Narrative 4-1
Whole Foods is an American-based natural and organic foods retailer that has grown from one store to 424 in the United States since 1980,with an additional 12 in Canada and nine in the United Kingdom. In 2015,CEO John Mackey announced the chain would grow to 40 Canadian locations,and was then looking for a Montreal location. Later,the company committed to a timeline for an Edmonton store to open in fall 2016 and a Calgary store to open in summer 2017. However,in January 2017,the retailer announced it was not proceeding with its Alberta openings.
Refer to Narrative 4-1. Whole Foods had a goal to open a store in south Edmonton by fall 2016. Why was this an example of a S.M.A.R.T. goal?

A)It's specific,marketable,achievable,response driven,and temporal. 
B)It's specific,measurable,attainable,realistic,and timely. 
C)It's service-oriented,manageable,achievable,realistic,and time-oriented. 
D)It's standardized,measurable,actionable,response driven,and temporal.