Question 1

Managers at the functional level focus on how they can achieve the competitive plan of the business.

Accepted Answer

Managers at the functional level are responsible for managing a specific function or department within the organization. Their primary focus is on ensuring that the activities of their department align with the overall strategy and competitive plan of the business. They play a crucial role in implementing the tactics required to achieve the business goals, and their efforts are essential to the success of the organization.

Question 2

A Gantt chart tells us when actions should be started without showing how long actions are expected to take for completion.

Accepted Answer

A Gantt chart shows both when actions should start and their expected completion times. It is a popular tool used in project management to schedule and track project progress.

Question 3

Zero-based budgeting assumes that all funding allocations must be justified from zero each year.

Accepted Answer

Zero-based budgeting requires each funding allocation to be justified from scratch each year, rather than simply adjusting previous year's budgets.

Question 4

The planning activities of functional managers are focused on how they can support the business and corporate plans.

Accepted Answer

Functional managers are responsible for developing plans that align with and support the overall business strategy and goals. Their planning activities are geared towards determining how they can contribute to achieving these objectives. Therefore, the statement is true.

Question 5

A capital expenditure budget typically includes all primary activities on which the unit or organization plans to spend money and the amount allocated for each item during the year.

Accepted Answer

A capital expenditure budget specifically focuses on spending related to acquiring or maintaining fixed assets, such as buildings, machinery, and equipment, rather than covering all primary activities and operational expenses.

Question 6

Contrary to popular belief,research shows that allowing employees to participate in the development of the goals does not really improve their commitment to the goals.

Accepted Answer

Research actually shows that involving employees in the goal setting process leads to increased commitment and motivation towards achieving those goals. This is known as participative goal setting and has been found to be more effective in terms of goal attainment and employee satisfaction.

Question 7

Knowing who is responsible for specific actions facilitates coordination,especially if multiple people are involved in the execution of a plan.

Accepted Answer

Knowing who is responsible for specific actions helps in assigning tasks, avoiding confusion, and ensuring that everyone is on the same page. This makes coordination easier, especially when multiple people are involved in the execution of a plan.

Question 8

Operational plans are more complex than strategic and tactical plans and have a direct effect on other plans outside of the department or unit for which the plan was developed.

Accepted Answer

Operational plans are typically more focused and short-term compared to strategic and tactical plans, and are primarily concerned with the specific procedures and processes within a department or unit, rather than having a direct effect on other plans outside of that department or unit.

Question 9

Business-level managers typically are not involved in developing operational plans.

Accepted Answer

Business-level managers focus on strategic and tactical planning, while operational plans are usually developed by lower-level managers who handle day-to-day operations.

Question 10

Managers should assess the firm's internal resources immediately following the analysis of the external environment.

Accepted Answer

The answer of Managers should assess the firm's internal resources...

Question 11

The speed of change and rapid flow of information increasingly require business plans that are flexible and dynamic.

Accepted Answer

The statement is true. As the speed of change and flow of information continue to accelerate in today's business landscape, traditional static business plans may quickly become outdated and ineffective. Therefore, more flexible and dynamic plans are necessary to keep up with the ever-evolving business environment.

Question 12

Effective planning at top organizational levels impacts a firm's performance more than planning at middle and lower levels.

Accepted Answer

Effective planning at all levels of an organization contributes to its overall performance. While top-level planning sets strategic direction, planning at middle and lower levels ensures the implementation and operationalization of these strategies, making each level's planning crucial for success.

Question 13

Strategic plans often have longer time frames and are broader in scope than tactical plans.

Accepted Answer

Strategic plans are designed to guide the organization for a longer-term period, often spanning 3-5 years or more, and define the overall direction and goals of the organization. On the other hand, tactical plans are shorter-term plans that are more specific and focused on achieving the objectives set out in the strategic plan. Therefore, strategic plans are broader in scope and cover a longer time frame than tactical plans.

Question 14

Environmental analysis,actions,implementations,and outcomes are all elements of the planning process.

Accepted Answer

Environmental analysis, actions, implementations, and outcomes are all key elements of the planning process. Environmental analysis involves evaluating the internal and external factors that affect an organization, while actions and implementations refer to the steps taken to achieve the desired goals and outcomes. The outcomes can be evaluated to determine the success of the planning process and identify areas for improvement. Therefore, the statement is true.

Question 15

Strategic plans translate tactical plans into specific goals and actions for small units of the organization and focus on the near term.

Accepted Answer

Strategic plans focus on long-term goals for the entire organization, while tactical plans translate those goals into specific actions for small units of the organization in the near term.

Question 16

One way to determine that a goal is specific enough is by checking whether its achievement can be measured.

Accepted Answer

When a goal is specific and well-defined, it should be possible to measure the progress towards its achievement. This allows for better tracking, assessment, and adjustment of the goal. Therefore, it is important to ensure that a goal is specific enough that its achievement can be measured.

Question 17

One of the first challenges for managers as they set objectives is to determine priorities.

Accepted Answer

Setting priorities is a crucial step in the process of determining objectives for managers. They need to assess the importance and urgency of various goals and allocate resources accordingly.

Question 18

The greater the environmental uncertainty,the more important it is for managers to stick to their original plan.

Accepted Answer

In reality, the greater the environmental uncertainty, the more important it is for managers to be flexible and adaptable in their planning and decision-making processes. Sticking to an original plan may not be practical or effective in rapidly changing environments.

Question 19

The setting of organizational objectives must be preceded by the development of organizational plans.

Accepted Answer

The setting of organizational objectives is the first step, which guides the development of specific plans to achieve those objectives. Planning is based on the objectives set by the organization.

Question 20

The principal negative consequence of incremental budgeting is that money may be allocated to a unit in the future merely because the unit had been allocated money in the past.

Accepted Answer

Incremental budgeting assumes that past budget allocations are a reliable indicator of future needs, which may not always be the case. This approach can result in funds being allocated to units even if their needs have changed or if they are no longer a priority. As a result, incremental budgeting can lead to inefficient use of resources and missed opportunities for reallocating resources to areas with greater needs.

Quiz 5: Planning