Question 1

Both proximal and distal goals are used to provide additional motivation and rewards for employees.

Accepted Answer

Both proximal and distal goals can be used to motivate employees by providing intermediate milestones and rewards for progress towards the ultimate goal or outcome.

Question 2

Standing plans deal with unique, one-time-only events.

Accepted Answer

This is the definition of single-use plans. Standing plans are created once and then used repeatedly to handle frequently recurring events.

Question 3

The two approaches to maintaining flexibility in organizations while they plan are outcome-based planning and change-based planning.

Accepted Answer

The two approaches are traditional planning, which involves committing resources to one plan, and options-based planning, which involves investing resources in multiple plans.

Question 4

The three kinds of operational plans are single-use plans, standing plans, and budgets.

Accepted Answer

This statement is true. The three types of operational plans are single-use plans, standing plans, and budgets. Single-use plans are designed to address a specific situation or goal, standing plans are ongoing plans that provide guidance for repetitive and routine activities, and budgets are financial plans that allocate resources for a specific period of time.

Question 5

Developing a purpose statement is the sole responsibility of middle management.

Accepted Answer

Developing a purpose statement is the responsibility of top managers.

Question 6

Planning is a three-step process which involves setting goals, then next developing effective action plans, and finally tracking progress toward goal achievement.

Accepted Answer

Planning consists of a total of five steps: (1) setting goals, (2) developing commitment to the goals, (3) developing effective action plans, (4) tracking progress toward goal achievement, and (5) maintaining flexibility in planning.

Question 7

Management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of those goals.

Accepted Answer

Management by objectives is a four-step process in which managers and their employees (1) discuss possible goals; (2) participatively select goals that are challenging, attainable, and consistent with the company's overall goals; (3) jointly develop tactical plans that lead to accomplishment of tactical goals and objectives; and (4) meet regularly to review progress toward accomplishment of those goals

Question 8

Encouraging worker participation in goal setting, making goals public, and getting top management's support are all recommended ways to increase goal commitment in a company.

Accepted Answer

Encouraging worker participation in goal setting and making goals public can increase employees' sense of ownership and accountability towards achieving those goals. Getting top management's support is also crucial in creating a culture of goal commitment and helping to set the tone for the rest of the organization.

Question 9

Planning can impede change, create a false sense of certainty, and lead to the detachment of planners.

Accepted Answer

Planning can create rigid structures that resist change and give planners a false sense of control and predictability. This can lead to disconnect between planners and the realities on the ground, ultimately hindering effective action and adaptation.

Question 10

For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress.

Accepted Answer

Specific and challenging goals provide workers with a direction to work towards and motivation to achieve them. Regular feedback allows workers to track their progress and make adjustments to their plans if necessary, making planning more effective.

Question 11

S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely.

Accepted Answer

S.M.A.R.T. goals are Specific, Measurable, Attainable, Realistic, and Timely.

Question 12

On average, companies that create plans have larger profits and grow much faster than companies that don't.

Accepted Answer

This statement is supported by research and studies on business planning. By having a plan, companies have a clearer direction and are more likely to achieve their goals, leading to greater profits and growth.

Question 13

The three kinds of standing plans are policies, procedures, and rules and regulations.

Accepted Answer

This statement is true. The three types of standing plans in organizations are policies, procedures, and rules and regulations.

Question 14

Planning is one of the best ways to improve organizational and individual performance.

Accepted Answer

Planning helps in setting clear goals, identifying potential obstacles, allocating resources effectively and efficient decision making. It ensures that everyone has a common understanding of what needs to be achieved and how to go about it. All these factors contribute to improved organizational and individual performance.

Question 15

Creating and executing a plan is one of the most important tasks of a manager.

Accepted Answer

Planning is considered one of the primary functions of management. It involves formulating a course of action that can help achieve the desired goals and objectives. By creating and executing a plan, a manager can steer the organization towards success and help it stay on track.

Question 16

An organization's purpose must regularly change to adapt to changes in the environment over time.

Accepted Answer

One of the defining characteristics of an organization's purpose statement is that it should
be enduring.

Question 17

Planning works best when the goals and action plans at the bottom and middle of the organization supports the goals and action plans at the top of the organization.

Accepted Answer

This ensures that everyone is working towards the same overall goals and that all efforts are coordinated and aligned. If there is a disconnect between the goals and actions of different levels within the organization, it can lead to confusion, inefficiency, and ultimately, failure to achieve desired outcomes.

Question 18

Tactical plans specify how a company will use its resources, budgets, and people to accomplish specific goals within its mission.

Accepted Answer

Tactical plans are designed to operationalize strategic plans by specifying the activities needed to achieve specific goals within the context of the company's mission. These plans provide detailed guidance on how the company will allocate its resources and utilize its workforce to accomplish the objectives set forth in the strategic plan.

Question 19

Tactical plans and objectives are used to direct behavior, efforts, and attention over the next six months to two years.

Accepted Answer

Tactical plans and objectives are short-term plans that focus on the next six months to two years and provide direction for specific actions and behaviors. Therefore, the statement is true.

Question 20

A strategic objective is a statement of a company's purpose or reason for existing.

Accepted Answer

This is the definition of a purpose statement. The strategic objective, which flows from the vision, is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a timeframe.

Quiz 5: Section 1: Planning and Decision Making