Deck 5: Planning and Decision Making

Question 1

Jessica, a middle manager at an electronic accessories company, presents a detailed estimate of the budget and the required number of temporary salespeople needed for the next one year. In this scenario, Jessica has most likely contributed to developing the company's _____.

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

Answer 1

C

Question 2

Planning encourages persistence even when there may be little chance of short-term success.

Answer 2

True

Question 3

In the Delphi technique, panel members need to be brought together in one place.

Answer 3

False

Question 4

Trendown Inc. has launched a plan to completely transition from a clothing retailer to a cosmetic brand by the end of the year. It has 24 stores across the city, and the management sets a target to transition two stores by the end of each month. In this scenario, Trendown Inc.'s monthly target is an example of a _____.

A) capstone goal
B) passive goal
C) distal goal
D) proximal goal

Question 5

The purpose of options-based planning is to commit people and resources to a particular course of action.

Question 6

Research indicates that the effectiveness of goal setting can be doubled by the addition of feedback.

Question 7

The first step in the Delphi technique is to create a questionnaire consisting of a series of open-ended questions.

Question 8

Once a strategic objective has been accomplished, a new one should be chosen.

Question 9

Specific, challenging goals provide a target for which to aim and a standard against which to measure success.

Question 10

The first step in planning is to develop effective action plans.

Question 11

The Delphi technique is a decision-making method in which group members cast votes to select solutions.

Question 12

Research suggests that the nominal group technique typically produces better decisions than the devil's advocacy and dialectical inquiry approaches.

Question 13

The main objective of__________is to keep options open by making small, simultaneous investments in many alternative plans.

A) strategic planning
B) options-based planning
C) funds-based planning
D) traditional planning

Question 14

The nominal group technique begins by having group members act as individuals.

Question 15

Daniel has started a small shoe manufacturing company. He has a tight budget, and does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____.

A) maximizing
B) discounting
C) specializing
D) satisficing

Question 16

Lee, the chief financial officer of a bank, prepares a plan with a detailed estimate of the company's fixed long-term expenditures. This plan will be presented at the Annual General Meeting every year. In this scenario, Lee has most likely prepared a _____.

A) impromptu plan
B) standing plan
C) tactical plan
D) single-use plan

Question 17

Management by objectives is a management technique often used by middle managers to develop and carry out _____.

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

Question 18

_____ is a decision-making method in which members of a panel of experts respond to questions and to each other until an agreement is reached on how a specific issue should be handled.

A) Dialectical inquiry
B) The nominal group technique
C) The Delphi technique
D) Devil's advocacy

Question 19

The most popular approach to increase goal commitment is to:

A) minimize employee involvement in planning.
B) encourage employee participation while setting goals.
C) ask the top management to assign goals.
D) develop less challenging goals.

Question 20

The nominal group technique improves group decision making by decreasing a-type conflict.

Question 21

The chief financial officer of Benjampt, a manufacturing company, disagrees with the rest of the senior managers about the renewal of the company's manufacturing license. They have conflicting interests because of their different career experiences. However, they are willing to weigh their opinions and arrive at the best possible solution. In this scenario, the conflict among the senior members best exemplifies _____.

A) a-type conflict
B) affective conflict
C) c-type conflict
D) channel conflict

Question 22

Deborah is a middle manager in a leading fashion magazine. She presents a half-yearly estimate on how she intends to use the budget allotted to her team for the next six months. In this scenario, Deborah has most likely contributed to developing the _____ for her team.

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

Question 23

Carolyn, a designer at Logisign, was not given the promotion she was expecting during the annual performance appraisal. She took this personally and got into an argument with her supervisor. In this scenario, the disagreements between Carolyn and her supervisor can best be classified as _____.

A) a-type conflict
B) cognitive conflict
C) c-type conflict
D) constructive conflict

Question 24

Barromt Bank has applied for a certification and has weekly inspections until it is granted the certification. To get positive feedback for the upcoming weekly inspection, the employees of Barromt Bank are finishing their pending work. In this scenario, the employees of Barromt Bank are most likely working toward a _____ by finishing work for the weekly inspection.

A) capstone goal
B) passive goal
C) distal goal
D) proximal goal

Question 25

The senior lawyers of Lawteve, a law firm, have differences of opinion about the leave policies that the firm follows. This is because of the differences in their individual history and experiences in the industry. Each of them is willing to have a discussion and arrive at the optimal solution. In this scenario, the conflict among the senior lawyers at Lawteve best exemplifies _____.

A) a-type conflict
B) affective conflict
C) c-type conflict
D) channel conflict

Question 26

Cassie runs a cake shop. Her primary goal is to set up the largest chain of cake shops in the city. Apart from this goal, another goal of Cassie's is to sell 400 cakes in December. In this scenario, Cassie's goal of selling 400 cakes in December is an example of a _____.

A) capstone goal
B) passive goal
C) distal goal
D) proximal goal

Question 27

The team leaders in the production department at Virginiastalk, an automobile manufacturer, follow standing plans that specify the detailed steps they are expected to follow when an export order gets canceled. Given this information, the standing plans in this scenario can be referred to as _____.

A) artifacts
B) prototypes
C) heuristics
D) procedures

Question 28

_____ occurs when a group member must wait to share an idea because another member is presenting an idea.

A) Dialectal inquiry
B) Groupthink
C) Satisficing
D) Production blocking

Question 29

At a canning factory, employees are strictly instructed to wear uniform while working around the canning machines. Which of the following kinds of standing plans is exemplified in this scenario?

A) Rules and regulations
B) Norms
C) Policies
D) Purpose statements

Question 30

Chester, the operations manager at a chemical manufacturing company, finds that the air pollutants released by the company have become very high. To arrive at a decision to resolve the issue, he defines the problem and then identifies decision criteria. In the context of rational decision making, which of the following is the next step that Chester should ideally take?

A) Computing the optimal decision
B) Weighing the decision criteria
C) Generating alternative courses of action
D) Making absolute comparisons

Question 31

__________is described as the determination to achieve a goal.

A) Goal setting
B) Satisficing
C) Groupthink
D) Goal commitment

Question 32

Shoerls, a footwear manufacturing company, had been purchasing its raw materials from Douglem. When Douglem increased the prices of its products, the production managers at Shoerls decided to purchase the raw materials from a different supplier that they believed would be a good-enough alternative. This scenario best illustrates the concept of _____.

A) counterconditioning
B) overregularizing
C) maximizing
D) satisficing

Question 33

_____ refers to the emotional reactions that can occur when disagreements become personal rather than professional.

A) A-type conflict
B) C-type conflict
C) Channel conflict
D) Personal conflict

Question 34

Edgar, the production manager at a textile factory, has noticed a decline in the production capacity of the factory. He wants to understand the reason behind this trend and make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that Edgar should ideally take?

A) Identifying and defining the problem
B) Computing the optimal decision
C) Generating alternative courses of action
D) Identifying decision criteria

Question 35

Lewrice, an apparel manufacturer, has been finding it difficult to deliver its products to its retailers on time. The time taken to deliver the products has been more than the estimated time in almost all instances. The managers of the company have to make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that the managers should ideally take?

A) Computing the optimal decision
B) Identifying and defining the problem
C) Generating alternative courses of action
D) Identifying decision criteria

Question 36

Ray, the brand manager of Randalegna, an online furniture company, prepares a plan detailing Randalegna's merger with Leonmento, an online home décor company. In this scenario, Ray has most likely prepared a _____.

A) strategic plan
B) single-use plan
C) tactical plan
D) standing plan

Question 37

The managers at Richellath follow standing plans that broadly define the action that needs to be taken when their subordinates do not meet deadlines. These plans also discuss the intended outcome of the given action. Given this information, the standing plans in this scenario can be referred to as _____.

A) policies
B) heuristics
C) prototypes
D) artifacts

Question 38

Chris is part of the top management of a bank. He formulates a plan on how the bank will deal with its competitors and serve its customers for the next five years. In this scenario, Chris has most likely contributed to developing the bank's _____.

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

Question 39

The marketing managers of Point Inc. are having a conflict over how they can improve the marketing strategies of their company. The managers are disagreeing on the views presented by each other based on their experiences and knowledge. In this scenario, the managers are engaging in a(n) _____.

A) a-type conflict
B) personal conflict
C) c-type conflict
D) channel conflict

Question 40

__________is a barrier to good decision making caused by pressure within the group for members to agree with each other.

A) Groupthink
B) Satisficing
C) Evaluation apprehension
D) Production blocking

Question 41

__________is described as the process of choosing a solution from available alternatives.

A) Production blocking
B) Decision making
C) Satisficing
D) Maximizing

Question 42

Jimmy is the sales manager of, Packaday, a packaging and shipping company. He has created a plan that will increase Packaday's customer base by 2.5 percent in the next two months. In this scenario, Jimmy has set a _____.

A) recurrent goal
B) passive goal
C) visionary goal
D) proximal goal

Question 43

_____ are responsible for the creation of tactical plans.

A) Chief Financial Officers
B) First-level managers
C) Middle managers
D) Top managers

Question 44

Which among the following is the most specific type of standing plans.

A) Policies
B) Procedures
C) Single-use plans
D) Rules and regulations

Question 45

Dale, a design engineer at a machinery manufacturing company, prepares a plan with a detailed estimate of the overheads and resources required for setting up a stall at a machinery exhibition next month. In this scenario, Dale has most likely prepared a _____.

A) single-use plan
B) strategic plan
C) standing plan
D) tactical plan

Question 46

Which of the following is a decision-making method that can be used to create c-type conflict by assigning an individual or a subgroup the role of critic?

A) Dialectical inquiry
B) The nominal group technique
C) Devil's advocacy
D) The Delphi technique

Question 47

Treptron Inc., a software company, has a standing plan that details the specific set of steps to be undertaken when an employee delivers consistently poor performance during his or her probation period. Given this information, the standing plan in this scenario can be referred to as a(n) _____.

A) artifact
B) prototype
C) procedure
D) heuristic

Question 48

Jim is the operations manager of a car manufacturing company in the United States. He wants to set up production plants in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should ideally take in order to achieve this goal?

A) Determine the profits the production plants will make
B) Track progress toward goal achievement
C) Develop commitment to the goal
D) Reward hard working employees for their work

Question 49

Which of the following is the first step in the process of management by objectives?

A) Collectively selecting goals
B) Discussing possible goals
C) Jointly developing tactical plans
D) Reviewing progress regularly

Question 50

Henncom, a company that manufactures computer spare parts, runs its operations in a small office. Owing to the increase in the demand for its products, the company needs to hire more employees. Instead of opting for the temporary solution of reducing each employee's workspace to accommodate more employees, Carl, the operations manager, decides to go with the optimal solution of shifting the company to larger premises. In this scenario, Carl is most likely _____.

A) maximizing
B) counterconditioning
C) overregularizing
D) satisficing

Question 51

A drawback of planning is that:

A) it fails to provide direction to managerial activities.
B) it causes detachment, which leads planners to plan for things they do not understand.
C) it discourages employees to put in additional efforts when following a plan.
D) it decreases persistence among employees, and leads to slackness.

Question 52

Plastbolt, a company that manufactures and supplies plastic bottles, wants to acquire a smaller company. It plans to invest in two smaller plastic manufacturing companies and buy the one that it finds yields better returns. In this scenario, Plastbolt is most likely using _____.

A) reverse planning
B) options-based planning
C) time-based planning
D) rigid planning

Question 53

Vernon, the chief human resources officer at a consultancy firm, prepares a plan formally detailing the dos and don'ts of the company. In the plan, he describes the restrictions on certain actions and how the actions must be performed. The regulations discussed in the given scenario are most likely a type of _____.

A) standing plan
B) impromptu plan
C) tactical plan
D) single-use plan

Question 54

Chad is the human resources manager of a chain of stationery stores. The company intends to open two new outlets, and Chad plans to recruit staff for both the outlets by the end of the month. In this scenario, Chad's staffing target serves as a _____.

A) capstone goal
B) passive goal
C) distal goal
D) proximal goal

Question 55

Budgets are a type of__________.

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

Question 56

The senior managers of Clockence, a clock manufacturing company, have a disagreement about the quantity of inventory to be allotted to each production team. Each of them views the problem differently, but they are willing to discuss it and arrive at the best possible solution. In this scenario, the conflict among the senior managers at Clockence best exemplifies _____.

A) a-type conflict
B) affective conflict
C) c-type conflict
D) channel conflict

Question 57

Autowizic Inc., an automobile manufacturing company, plans to move its operations to a different city by the end of the year. It sets a target of moving one department by the end of each month, so that all the departments can be moved within a year. In this scenario, Autowizic's plan of moving its operations to a different city by the end of the year is an example of a _____.

A) provisional goal
B) foundational goal
C) proximal goal
D) distal goal

Question 58

A _____ is a type of operational plan that saves managers' time because once the plan is created, it can be used repeatedly to handle frequently recurring events.

A) standing plan
B) budget plan
C) single-use plan
D) tactical plan

Question 59

Kyle, the human resources manager of an electrical company, is preparing an estimate of the recruitment requirements, training overheads, and induction expenditure for the next six months to present to the chief human resources officer of the company. In this scenario, Kyle is most likely creating a(n) _____.

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

Question 60

Todd's manager rejected his leave application because project deadlines were getting closer. Todd considered this a personal offence and got into an argument with his manager. In this scenario, the disagreements between Todd and his manager can best be classified as _____.

A) c-type conflict
B) cognitive conflict
C) a-type conflict
D) constructive conflict

Question 61

Which of the following is a benefit of planning?

A) It fixes all organizational problems.
B) It ensures the existence of a company.
C) It gives direction to managerial efforts.
D) It encourages change in an organization.

Question 62

Betty runs a boutique. She buys semi-automatic sewing machines for her tailors because she cannot afford the fully automatic ones. This scenario best illustrates the concept of _____.

A) maximizing
B) counterconditioning
C) overregularizing
D) satisficing

Question 63

Which of the following is true of the nominal group technique (NGT)?

A) It forces decision makers to state the assumptions of a proposed solution and then generate a solution that is the opposite of the proposed solution.
B) It closes with a second quiet time in which group members independently rank the ideas presented.
C) It involves a panel of experts who respond to questions and to each other until they reach agreement on an issue.
D) It is known to conclude in hostility, anger, and resentment among the participating group members.

Question 64

Claire is a manager at an IT firm. She notices a consistent drop in the productivity of her employees. She is not able to find the reason behind this drop. In the context of rational decision making, which of the following steps should Claire take first?

A) Computing the optimal decision
B) Defining the problem
C) Generating alternative courses of action
D) Identifying decision criteria

Question 65

Liastem, a company that manufactures machinery parts, required Computer Numerical Control (CNC) machines for production. The company bought old CNC machines and modified them to meet company requirements because it could not afford fully-automatic, new CNC machines. This scenario best illustrates the concept of _____.

A) maximizing
B) counterconditioning
C) overregularizing
D) satisficing

Question 66

During a discussion about the budget for a project, the discussion gets personal between two managers of Trion LLC. They digress from the topic and start venting their anger on each other. In this scenario, the managers have _____.

A) an ethical conflict
B) a-type conflict
C) c-type conflict
D) an intellectual conflict

Question 67

_____ are standing plans that indicate the specific steps that should be taken in response to a particular event.

A) Policies
B) Procedures
C) Single-use plans
D) Options-based plans

Question 68

In the context of planning from top to bottom, the top management is responsible for developing _____.

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

Question 69

The senior accountants at Spicedam have a disagreement with each other about the calculation of the company's annual budget because of their different industry experiences. However, they are willing to have a rational discussion and arrive at the optimal solution. In this scenario, the conflict among the senior accountants at Spicedam best exemplifies _____.

A) a-type conflict
B) affective conflict
C) c-type conflict
D) channel conflict

Question 70

The production team members of Agrimotor, an agricultural machinery manufacturer, are expected to follow standing plans when any of the machinery used for production stops functioning. These standing plans describe what they should and should not do. They also detail how to deal with the situation. Given this information, the standing plans in this scenario can best be referred to as _____.

A) purpose statements
B) rules and regulations
C) principles and rationales
D) recommendation forms

Question 71

Adamdata, a cell phone brand, is planning to collaborate with a few companies that create software for cell phones. It wants to try different operating system software for its phones and then buy the company that manufactures the software that is most compatible with its phones. In this scenario, Adamdata is most likely using _____.

A) reverse planning
B) options-based planning
C) time-based planning
D) rigid planning

Question 72

Alice, a reporter at a daily newspaper, is given a low performance rating because she has not been meeting productivity requirements. She is personally affected by the low rating and gets into an argument with her manager. In this scenario, the disagreements between Alice and her supervisor can best be classified as _____.

A) a-type conflict
B) cognitive conflict
C) c-type conflict
D) constructive conflict

Question 73

Sarah, the cofounder of a start-up company that sells sports goods, prepares a purpose statement for the company. In the purpose statement, she clarifies how the company will deal with its competitors and provide services to its customers. In this scenario, Sarah has most likely contributed to developing the company's _____.

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

Question 74

_____ are responsible for developing operational plans.

A) Lower-level managers
B) Middle managers
C) Top managers
D) Board of directors

Question 75

Which of the following is a disadvantage of planning?

A) It increases employee turnover.
B) It creates a false sense of certainty.
C) It decreases the effort put in by managers and employees.
D) It pressures employees to work for extended periods.

Question 76

Which of the following steps in planning increases the scope of adaptability of a plan?

A) Maintaining flexibility in planning
B) Developing commitment to goals
C) Developing long-term action plans
D) Tracking progress toward goal achievement

Question 77

Weston Inc. wants to outsource its customer service operations. The top managers of the company are preparing a plan exclusively to detail the expenditure, overhead, and processes involved in outsourcing its customer service operations. In this scenario, the managers are most likely preparing a _____.

A) strategic plan
B) single-use plan
C) tactical plan
D) standing plan

Question 78

Gilbert, the CEO of a theme park, plans to have branches of the theme park in 20 countries in 10 years' time. To achieve this goal, he plans to set up branches in at least two countries by the end of each year. In this scenario, Gilbert's plan to have branches of the theme park in 20 countries in 10 years' time is an example of a _____.

A) provisional goal
B) distal goal
C) proximal goal
D) foundational goal

Question 79

A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. In this scenario, the set of method represents a _____.

A) tactical plan
B) visionary plan
C) single-use plan
D) standing plan

Question 80

Omega Corp. has a goal of increasing its production and reducing its overhead costs. To achieve this goal, the company has developed four alternate action plans. Its idea is to monitor how these plans work and then invest more in the plan that shows maximum results. This type of planning that allows for flexibility is known as _____.

A) reverse planning
B) options-based planning
C) time-based planning
D) traditional planning