Deck 8: Foundations of Planning

Question 1

The standard procedure to be followed by the human resources department of a company when initiating disciplinary action against an employee is an example of a standing plan.

Answer 1

True

Question 2

Most goals are either strategic or financial.

Answer 2

True

Question 3

Organizations real goals and stated goals are the same.

Answer 3

False

Question 4

Developing a plan to integrate two companies after a corporate merger is an example of a single-use plan.

Question 5

The more the current plans affect future commitments, the longer the time frame for which managers should plan.

Question 6

Standing plans create guidance for regularly occurring activities and events.

Question 7

Operational plans specify the details of how the overall goals are to be achieved.

Question 8

Planning reduces overlapping and wasteful activities.
True
False

Question 9

Formal planning is associated with higher profits and higher return on assets.

Question 10

In informal planning, goals are rarely written down or communicated to others.

Question 11

The number of years used to define short-term and long-terms plans has increased considerably because of the greater environmental certainty businesses have today.

Question 12

Directional plans are clearly defined and leave no room for interpretation.

Question 13

External environment has little or no impact on the formal planning process.

Question 14

Planning reduces uncertainty regarding current events but often leaves rule-bound managers unable to anticipate change and develop appropriate responses to future events.

Question 15

Planning establishes goals or standards that eliminate the need for controls.
True
False

Question 16

Studies have found that the quality of the planning process and the appropriate implementation of plans likely contribute more to high performance than does the extent of planning.

Question 17

When uncertainty is high and managers must be flexible in order to respond to unexpected changes, directional plans are preferable.

Question 18

Strategic goals focus exclusively on the financial performance of the organization.

Question 19

Real goals are goals that an organization actually pursues.

Question 20

Directional plans have clearly defined objectives.

Question 21

Planning can't eliminate change. Managers plan in order to ____________.

A) maximize the overlap in work activities
B) anticipate changes and develop the most effective response
C) reduce or eliminate the need for controls
D) eliminate uncertainty
E) focus attention on how things should be done rather than ultimate achievements

Question 22

Effective planning in dynamic environments requires flatter organizational hierarchies.

Question 23

The commitment concept means that plans should extend far enough to meet those commitments made when the plans were developed.

Question 24

In management by objectives (MBO), performance goals are often general rather than specific, giving managers and employees for flexibility to respond to changing conditions.

Question 25

The first step in the goal-setting process is to review the organization's mission.

Question 26

In today's global business environment, obtaining competitive intelligence is relatively easy.

Question 27

In a typical MBO program, successful achievement of objectives is reinforced by performance-based rewards.

Question 28

Which of the following statements about planning is true?

A) It is concerned with means but not ends.
B) It is concerned with ends but not means.
C) It is concerned with both means and ends.
D) It increases uncertainty.
E) It establishes goals or standards that eliminate the need for controls.

Question 29

MBO works best in dynamic environments where new goals can be set every few weeks.

Question 30

A well-designed goal should be written in terms of actions rather than outcomes.

Question 31

In traditional goal setting, goals set by top managers flow down through the organization and become sub goals for each organizational area.

Question 32

Formal planning involves which of the following aspects?

A) developing general goals
B) planning for an unspecified period of time
C) focusing on means but not ends
D) communicating the plan to managers only
E) writing achievable goals

Question 33

A well-designed goal should be measurable and easily attainable.

Question 34

In informal planning, _____________ sharing of goals with others in the organization.

A) everything may be written down, but there is little or no
B) everything is written down, and there is wide
C) nothing is written down, and there is little or no
D) nothing is written down, therefore management does a lot of
E) some things are written down, but there is considerable

Question 35

Competitor intelligence is about gathering information about competitors.

Question 36

In traditional goals setting, goals often lose clarity and unity as they make their way from the top of the organization to lower levels.

Question 37

The first step in goal setting is to evaluate available resources.

Question 38

An integrated network of goals is sometimes called a means-ends chain.

Question 39

Which of the following is true of the impact of formal planning on organizational performance?

A) Formal planning is associated with positive financial results.
B) Organizations that formally plan invariably outperform those that don't plan.
C) The amount of planning done is more important to high performance than the quality of planning and implementation.
D) Companies can start seeing the impact of formal planning on performance after about a year of starting the planning process.
E) Formal planning establishes goals or standards to replace controls.

Question 40

Informal planning is ____________.

A) performed at the lowest levels of management
B) general and lacks continuity
C) developed in informal meetings by all levels of management
D) specific and covers a defined period of time
E) written down and communicated to others in the organization

Question 41

Which of the following is a common way to classify an organization's plans?

A) quantifiability
B) flexibility
C) frequency of use
D) attainability
E) desirability

Question 42

Two types of plans that are differentiated by their breadth of application are _____________.

A) directional and specific
B) single use and standing
C) long term and short term
D) tactical and operational
E) strategic and operational

Question 43

Planning is often called the primary management function because it _________.

A) offers some basis for future decision making
B) creates a unified vision for organizational members to work toward
C) establishes the basis for all the other management functions
D) sets the tone for the organization's culture
E) is the most important management function overall

Question 44

Strategic plans tend to cover a longer period of time than operational goals and also ______________.

A) deal with more urgent concerns
B) cover the financial projections of the planning period
C) cover a broader view of the organization
D) include an estimate of the profits that shareholders can anticipate as dividends
E) cover a more narrow view of the organization

Question 45

Goals are different from plans because _____________.

A) goals identify specific steps that the organization needs to achieve, and plans identify the overall mission of the organization
B) goals describe financial objectives, and plans describe objectives related to social responsibility
C) goals are important only for small companies, and plans are important only for large companies
D) goals are desired outcomes, and plans describe how those outcomes will be accomplished
E) goals are set by lower level managers, and plans are set by the executives

Question 46

Planning reduces ____________ by forcing managers to look ahead and anticipate _____________.

A) the need for controls; risk levels
B) confusion; competitive activities
C) bureaucracy; organizational growth
D) risk; economic and competitive conditions
E) uncertainty; change

Question 47

The most popular ways to describe organization's plans are by their breadth, time frame, ____________.

A) depth, and urgency
B) frequency of use, and urgency
C) specificity, and frequency of use
D) depth, and specificity
E) flexibility, and attainability

Question 48

Governmental regulations, powerful labour unions, and other critical environmental forces constrain managers' options and _____________.

A) reduce the uncertainty associated with formal planning
B) increase the impact of planning on an organization's performance
C) neutralize the impact of planning on an organization's performance
D) don't affect the impact of planning on an organization's performance
E) reduce the impact of planning on an organization's performance

Question 49

An organization's mission states that it "is committed to reducing its environmental footprint"; but its facilities do not comply with statutory environmental regulations. This is an instance of how ________.

A) strategic goals help shape financial goals
B) long-term goals differ from short-term goals
C) an organizations stated goals are not necessarily its real goals
D) a company's real goals are derived from its mission statement
E) plans made by executives focus on operations

Question 50

The quality of the planning process and the appropriate implementation of the plans likely ____________.

A) don't contribute to high performance nearly as much as the extent of planning
B) contribute more to high performance than does the extent of planning
C) contribute less to financial performance than does the extent of planning
D) have little impact on overall organizational performance
E) should be studied more to factually determine which contributes the most

Question 51

Plans are documents that outline ____________.

A) which department has what responsibilities
B) what materials and production processes are required
C) how much capital is required
D) how goals are going to be met
E) which decisions need to be made

Question 52

Plans that apply to the entire organization, establish the organization's overall goals, and seek to position the organization in terms of its environment are called ______________ plans.

A) operational
B) real
C) strategic
D) single-use
E) standing

Question 53

Goals provide the direction for all management decisions and form the __________.

A) basis for profit projections to satisfy shareholders and other external stakeholders
B) desired outcomes that the organizational members will likely achieve
C) basis for the profit sharing with employees once the goals are achieved
D) criteria against which actual work accomplishments can be measured
E) foundation for all other management functions

Question 54

Which of the following statements is true regarding an organization's goals?

A) All organizations share the single goal of making profits.
B) A single goal is more efficient than multiple goals for defining an organization's success.
C) Using a single goal such as profit may result in unethical behaviours by employees.
D) Long-term success is ensured if managers emphasize only one goal for an organization.
E) Short-term success is ensured if managers emphasize multiple goals for the organization.

Question 55

When formal planning fails to lead to higher performance, which of the following is most likely to be the reason for the failure?

A) The company emphasized the control function over other functions.
B) A participative style of planning was used.
C) Managers were allowed too much autonomy.
D) Constraints of the internal environment
E) Constraints of the external environment

Question 56

Plans that specify the details of how the overall goals are to be achieved are called ____________ plans.

A) operational
B) directional
C) strategic
D) single-use
E) standing

Question 57

__________ dominates managers' planning efforts at lower levels of the organization.

A) Goal development
B) Strategic planning
C) Organization-wide planning
D) Operational planning
E) Directional planning

Question 58

Which of the following is the best indicator of an organization's real goals?

A) organizational members' actions
B) mission statement
C) annual reports
D) stock valuation
E) employee satisfaction

Question 59

In studies of organizations where formal planning did not lead to higher performance, the cause was often ______________.

A) forces in the external environment
B) poor implementation of plans by management
C) lack of support by employees
D) lack of a clear mission
E) poor communication of plan objectives

Question 60

Generally speaking, formal planning is associated with _____________.

A) higher costs
B) lower return on assets
C) higher waste of time
D) shorter time frames
E) higher profits

Question 61

In the traditional approach to planning, planning is done entirely by top-level managers who are often assisted by ______________ .

A) business-level managers
B) functional-level managers
C) a mixture of managers and employees from all organizational levels
D) a group of planning specialists
E) external business consultants

Question 62

Plans that encompass only the production or the sales goals of a company are termed ________ plans.

A) operational
B) strategic
C) informal
D) financial
E) real

Question 63

Which of the following is an example of a standing plan?

A) A retail chain's plan to counter the entry of a new competitor
B) A plan developed to address an unanticipated surge in demand
C) A fire escape policy establishing practices to be followed in an emergency
D) A plan to cope with radical changes in the political environment
E) A plan for moving into new facilities

Question 64

When plans are categorized as single use versus standing, they are being differentiated by _____________.

A) breadth
B) specificity
C) frequency of use
D) time frame
E) urgency

Question 65

Which of the following is an example of a single-use plan?

A) Diversity hiring policies of a company.
B) A plan developed to implement new environmental regulations.
C) The procedure to be followed for firing low-performing employees.
D) A plan developed to ensure worker safety at the company's facilities.
E) A plan to deal with unhappy customers.

Question 66

Which type of plan is ongoing and provides guidance for activities performed repeatedly?

A) flexible
B) single use
C) directional
D) strategic
E) standing

Question 67

In traditional goal setting, goals are set at the top level of management and ______________.

A) then they are delegated to first-line management to be achieved
B) then they are broken down into subgoals for each organizational level
C) all the efforts to achieve the goals are directed by top management to ensure that they are achieved
D) then they are delegated to the next lower level to be achieved
E) then they are delegated to the employees to be achieved

Question 68

Directional plans provide ______________, while specific plans provide ____________.

A) clarity; flexibility
B) flexibility; clarity
C) urgency; flexibility
D) specificity; urgency
E) depth; breadth

Question 69

Which of the following types of plans dominates managers' planning efforts at upper levels of the organization?

A) strategic
B) standing
C) operational
D) short term
E) specific

Question 70

A government plan that calls for a 2.45 percent increase in tobacco sales tax for the next three years would be considered what type of plan?

A) strategic
B) operational
C) specific
D) directional
E) short term

Question 71

Which of the following is true concerning standing plans?

A) They provide guidance for activities repeatedly performed in the organization.
B) They provide guidance for 1-3 years only.
C) They specify general guidelines.
D) They are specifically designed to meet the needs of a unique situation.
E) They are more flexible than directional plans.

Question 72

Which type of plan is flexible and provides general guidelines?

A) strategic
B) single use
C) directional
D) operational
E) specific

Question 73

Plans that are clearly defined and leave no room for interpretation are called __________________ plans.

A) flexible
B) single-use
C) directional
D) standing
E) specific

Question 74

In traditional goal setting, it is assumed that top managers know what's best because they ______________.

A) are the best educated
B) have the most experience
C) are hired to do what is best for the organization
D) have the most at stake if the company fails
E) see the ''big picture'' for the company

Question 75

Which of the following types of plans dominates managers' planning efforts at lower levels of the organization?

A) strategic
B) single use
C) operational
D) long term
E) directional

Question 76

When uncertainty is high and managers must be flexible, which type of plan is most preferable?

A) long term
B) specific
C) optional
D) standing
E) directional

Question 77

In traditional goal setting, what happens to goals as they make their way down from top management to lower levels?

A) They lose clarity and unity.
B) They unite the workforce.
C) They are continually revised and corrected by middle management.
D) They purposely remain vague and nonspecific to provide flexibility.
E) They are often deliberately altered and distorted by lower level managers.

Question 78

With traditional goal setting, employees' work efforts at their respective levels and work areas are geared to meet the goals __________

A) so that the top management will be retained in their position
B) so that their immediate supervisor will be retained in their position
C) that have been assigned in their specific areas of responsibility
D) within the shortest amount of time possible
E) using the least amount of resources

Question 79

A city's policy concerning skateboarding on downtown sidewalks that provides guidance for police action would be considered what type of plan?

A) standing
B) contingency
C) directional
D) single use
E) strategic

Question 80

____________ plan is a plan specifically designed to meet the needs of a unique situation.

A) multipurpose
B) strategic
C) operational
D) single-use
E) standing