Deck 5: Managing the Planning Process

Question 1

What are the goals or targets that the firm wishes to accomplish within a stated amount of time?

A) Objectives
B) Actions
C) Resources
D) Implementation

Answer 1

A

Question 2

When workers participate in the planning process, they tend to

A) "buy in" and work harder.
B) confuse the issues.
C) bring little to the table.
D) provide too much detail.

Answer 2

A

Question 3

Planning that identifies different views of future and spells out what to do in each session is referred to as

A) escalation of commitment.
B) contingency planning.
C) a control system.
D) formal planning.

Answer 3

B

Question 4

Examining environmental factors in the planning process helps the firm

A) gain buy-in from those who will implement the plan.
B) coordinate the efforts of everyone.
C) provide a sense of direction.
D) deal with environmental uncertainty.

Question 5

What are the specific steps the firm intends to take to achieve the desired objectives?

A) Objectives
B) Actions
C) Resources
D) Implementation

Question 6

What is the planning step that shows the intended actions that will be carried out?

A) Objectives
B) Actions
C) Resources
D) Implementation

Question 7

Which of the following is not considered a core competency?

A) Objectives
B) Know-how
C) Brand recognition
D) Company recognition

Question 8

Any process that helps align the actions of individuals with the interests of their employing firms is a(n)

A) performance standard.
B) control.
C) objective.
D) goal.

Question 9

The process that helps managers set objectives for the future and map out the activities and means that will make it possible to achieve those objectives is

A) goal setting.
B) objective setting.
C) implementing.
D) planning.

Question 10

When company executives fail to abandon a plan after large resources have been spent on it even though the evidence suggests that the plan is not working is called

A) scenario planning.
B) a control system.
C) escalation of commitment.
D) contingency planning.

Question 11

A centralized planning process

A) should be replaced with a decentralized process in large corporations to ensure buy-in.
B) can help managers understand how actions in one area have consequences for other units.
C) focuses attention on different time horizons.
D) ensures adequate assessment of external forces.

Question 12

Effective planning improves a company's control systems by

A) making assumptions explicit.
B) making it possible to compare target versus actual results and take corrective action on gaps to modify future activities.
C) developing "what if" scenarios.
D) ensuring adequate resources are available.

Question 13

Which of the following contributed to Pepsi losing the war against Coke?

A) Pepsi failed to balance their long-term objectives with short-term goals.
B) Pepsi did not encourage worker participation in the planning process.
C) Pepsi failed to assess their external environment.
D) Pepsi failed to define its priorities.

Question 14

Which of the following statements is not true concerning planning?

A) Planning occurs at every level in the organization.
B) The plans made at higher levels direct and constrain the planning that occurs at lower levels.
C) Planning at lower levels focuses on broad, long-term issues.
D) Planning at lower levels tends to be primarily concerned with the operational details of the overall plan.

Question 15

Which of the following is not considered a benefit of planning?

A) Planning requires managers to assess the external environment to better respond to challenges.
B) An effective planning process provides an opportunity to separate the planners from the implementers.
C) The planning goals give organizational members a sense of direction and purpose.
D) Planning may help the firm reduce uncertainty by forcing managers to think long term.

Question 16

The space shuttle disasters may be attributed to

A) scenario planning.
B) a lack of a control system.
C) escalation of commitment.
D) failure to have a contingency plan.

Question 17

A well-designed plan leads to

A) success.
B) identifying the resources needed for the future.
C) competitive advantage.
D) identification of core competencies.

Question 18

Which of the following is true of performance standards?

A) The establishment of performance standards is the end result of any planning process.
B) Performance standards define expected behaviors for organizational members.
C) Performance standards allow for the assessment of programs.
D) all of the above

Question 19

Which of the following is not a key element to a plan?

A) Objectives
B) Feedback
C) Actions
D) implementation

Question 20

Understanding the reasons for poor performance or failure in the past is an important benefit of

A) environmental scanning.
B) competitor analysis.
C) the planning process.
D) stakeholder analysis.

Question 21

When Apple decided in the 1980s that its future lay in merging the computing, communications, and entertainment industries, they were demonstrating the need in planning to

A) decentralize the process.
B) concentrate on a manageable set of issues.
C) use numerical methods.
D) assess external forces.

Question 22

Worthwhile objectives that allow managers to determine whether key outcomes are being reached include which of the following?

A) Profitability targets such as ROI
B) Quality goals such as percentage of rejects
C) Innovation outcomes such as number of patents
D) all of the above

Question 23

DuPont's product introduction goal that began at the top of the organizational pyramid and filtered down to lower echelons where it became more specific is an example of

A) escalation of commitment.
B) opportunistic planning.
C) cascading of objectives.
D) profitability targets.

Question 24

Planning helps managers to

A) be proactive.
B) gain "on the job" training.
C) learn to convert abstract ideas into concrete actions.
D) all of the above

Question 25

Successful planning includes which of the following?

A) Centralizing the planning process
B) Viewing planning as a commitment to sunk costs
C) Using both numerical and judgmental methods
D) Overanalyzing every detail to ensure effective implementation

Question 26

Which of the following is not considered a pitfall of planning?

A) Future conditions can be forecasted incorrectly.
B) Integrating the plan generators and the plan implementers.
C) Reporting relationships can become overly hierarchical.
D) Planning can become a self-contained activity.

Question 27

Separating the plan generators from the plan implementers often leads to

A) a more effective implementation.
B) the development of plans that lower level managers begrudgingly try to implement.
C) ensuring the wisdom and experience of those managers higher in the organization are included in the plan.
D) all of the above

Question 28

When the Acme Company anticipates what may happen in the future by planning four different views of the future and then spells out what to do in each of these future views, they are using

A) escalation of commitment.
B) contingency planning.
C) a control system.
D) opportunistic planning.

Question 29

When planning is conducted by specialists without the participation of other managers, there may be a tendency

A) to generate volumes of paperwork.
B) to generate formulas that are not relevant in turbulent times
C) to misunderstand the logic.
D) all of the above

Question 30

Behavior is best motivated with objectives that are

A) general and measurable.
B) specific and measurable.
C) ambiguous and measurable.
D) general and ambiguous.

Question 31

The performance targets set during the planning cycle are

A) goals.
B) procedures.
C) budgets.
D) objectives.

Question 32

Opportunistic planning

A) is a system designed to identify objectives and to structure the major tasks of the organization to accomplish them.
B) is derailed by unexpected events.
C) involves programmatic actions triggered by unforeseen circumstances.
D) seldom has discretionary resources.

Question 33

Which of the following is true of opportunistic and formal planning?

A) Firms that use only opportunistic planning will have no clear sense of direction.
B) Formal planning should allow for creative responses within the organized framework.
C) Jack Welch, formerly of GE, was a strong proponent of formal planning over opportunistic planning.
D) Firms should carefully choose either formal or opportunistic planning after thoughtful consideration.

Question 34

An obsession with paperwork, technical reports, statistical tables and other supporting documentation causes

A) escalation of commitment.
B) a "pie in the sky" perspective of corporate strengths.
C) paralysis by analysis.
D) opportunistic planning.

Question 35

Common examples of inaccurate forecasts driving poor strategic decisions include

A) poor estimates of the demand for new products.
B) miscalculation of the impact of international competition on product lines.
C) changes in the economic and legal systems.
D) all of the above

Question 36

When Detroit's Big Three continued their investment in SUVs in the early 2000s, they experienced which of the following pitfalls of planning?

A) Extensive bureaucratization
B) Plans imposed from above
C) Inflexible adherence to objectives and processes
D) Planning as a self-contained activity

Question 37

Managers and employees may be cynical about objectives and suggestions for actions emanating from a

A) planning committee comprised of managers throughout the organization.
B) planning process using both top-down and bottom-up planning.
C) specialized planning department.
D) flexible plan.

Question 38

In keeping planning a continuous process that is attuned to changes in both the internal and external environment, firms should consider all of the following except

A) the use of two-way feedback between managers and employees in the performance appraisal process.
B) scheduled retreats of key managers and employees.
C) carefully analyzing circumstances and avoiding "seat of the pants" crisis management.
D) the creation of standing cross-functional committees.

Question 39

Which of the following is not one of the five lessons companies can apply to plan for the worst?

A) Create alternative scenarios.
B) Be prepared for the unimaginable.
C) Try to estimate probabilities.
D) Try to avoid thinking the worst.

Question 40

Cascading of objectives refers to the fact that

A) objectives at the top have larger budgets than those at lower organizational levels.
B) objectives are more general at the top and become more specific at lower organizational levels.
C) objectives at higher organizational levels reflect the mission of the organization.
D) all of the above

Question 41

Planning can help managers deal with uncertainty by anticipating what may happen in the future.

Question 42

Planning occurs at higher levels in the organization and implementing occurs at lower levels.

Question 43

A downside of moving budgets is that they

A) result in managers obsessing over the "intangible" aspects of performance.
B) demand frequent revisions.
C) are not flexible.
D) all of the above

Question 44

What are the three types of actions normally planned after objectives have been established?

A) Strategic, divisional, and departmental
B) Strategic, tactical, and operational
C) Operational, departmental, and executive
D) Departmental, strategic, and mid-level

Question 45

Companies in the 1980s became skeptical of the value of strategic planning because inaccurate forecasts led to poor strategic decisions.

Question 46

Objectives should

A) be achievable.
B) leave an open-ended timetable.
C) be challenging and require employees to stretch.
D) all of the above

Question 47

The strength of MBO is its

A) ease of use.
B) lack of control mechanisms.
C) measurability.
D) ease of development.

Question 48

Who is normally responsible for developing strategic action plans?

A) Mid-level managers
B) First-line managers
C) Top executives
D) Subordinates

Question 49

The extent to which the strategic action plan fits with organizational characteristics and the external environment is known as

A) proactivity.
B) congruency.
C) escalation.
D) synergy.

Question 50

Action plans developed at the department level are

A) strategic.
B) tactical.
C) opportunistic.
D) operational.

Question 51

Challenges in trying to simultaneously implement a plan and manage change associated with its implementation include which of the following?

A) Dealing with power and politics
B) Reducing individual anxiety and resistance
C) Maintaining control during the transition period
D) all of the above

Question 52

The planning program in which objectives are mutually set between the employee and supervisor is known as

A) management by objectives.
B) management by walking around.
C) opportunistic planning.
D) cascading objectives.

Question 53

Which of the following is not included in the implementation phase of the planning process?

A) Defining tasks to be accomplished
B) Establishing long-term, corporate-wide actions to accomplish the company's mission
C) Assigning individual responsibilities for the tasks to be accomplished
D) Managing individuals to ensure that the tasks are appropriately completed

Question 54

Planning is as much an art as a science.

Question 55

Telling employees they need to arrive at work between the hours of 7 and 9 and work for nine consecutive hours is an example of a

A) mission.
B) procedure.
C) policy.
D) rule.

Question 56

Synergy is

A) the degree to which the strategic action plan takes a long-term view of the future and moves the company in that direction.
B) the extent to which the higher level goals reflect top management's personal philosophy.
C) the extent to which the strategic action plan fits with organizational characteristics and the external environment.
D) the integration of the efforts of various organizational subunits to better accomplish corporate-wide business objectives.

Question 57

Line managers and those employees directly responsible for individual tasks create

A) tactical action plans.
B) strategic action plans.
C) operational action plans.
D) departmental action plans.

Question 58

A general guide for managers and employees to follow is a

A) mission.
B) procedure.
C) policy.
D) rule.

Question 59

Opportunistic planning should take precedence over formal planning to structure the major tasks of the organization.

Question 60

Which of the following is not one of the means of implementing the planned actions?

A) Authority
B) Persuasion
C) Feedback mechanism
D) Punishment

Question 61

Once plans are formulated and implemented, an effective control system allows the organization to compare planned objectives with actual results.

Question 62

Lower level managers and employees should not participate in the budget-setting process.

Question 63

What is planning?

Question 64

To be the most effective, the planning process should be a top-down exercise.

Question 65

NASA's goal to reach the moon, which involved the design and construction of a lunar module, is an example of a single-use plan.

Question 66

How can the political dynamics of change by managed?

Question 67

What are four elements of the formal planning process?

Question 68

Contrast formal planning and opportunistic planning.

Question 69

What are tactical action plans? How do they differ from operational action plans?

Question 70

Who should be involved in the planning process?

Question 71

What is paralysis of the analysis?

Question 72

What is scenario planning?

Question 73

What are the four major approaches to implementation?

Question 74

How can managers maintain control during the change transition?

Question 75

What is MBO? What are the key steps of the MBO cycle?

Question 76

Since the planning process prioritizes goals, desired objectives seldom work at cross-purposes.

Question 77

What are the benefits of planning?

Question 78

What are the pitfalls of planning?

Question 79

Why must businesses focus attention on different time horizons when planning?

Question 80

What are the three criteria for an effective strategic action plan?