Deck 5: Planning and Decision Making

Question 1

Gordop, an automobile manufacturer, wants to be the market leader in the sedan category in five years' time. To achieve this target, it sets a goal of expanding its market by 10% each month. In this scenario, Gordop's goal of becoming the market leader in the sedan category represents a _____.

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

Answer 1

D

Question 2

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

Answer 2

D

Question 3

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

Answer 3

B

Question 4

In the context of tracking progress toward goal achievement, which of the following is a difference between proximal goals and distal goals?

A) Proximal goals are referred to as primary goals, whereas distal goals are referred to as subgoals.
B) Proximal goals define the final objective to be achieved, whereas distal goals define the steps that should be taken to achieve the final objective.
C) Proximal goals can be procrastinated because they have low immediacy, whereas distal goals cannot be procrastinated because they have high immediacy.
D) Proximal goals are short-term goals, whereas distal goals are long-term goals.

Question 5

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 6

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 7

Which of the following statements is true of planning?

A) It fixes all organizational problems.
B) It creates an environment of uncertainty.
C) It encourages behavioral changes in an organization.
D) It intensifies the effort put in by managers and employees.

Question 8

A drawback of planning is that it:

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

Question 9

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 10

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 11

_____ is defined as the determination to achieve an objective.

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

Question 12

Lancencus, a software company, plans to double its workforce in the next 10 years. To achieve this goal, the human resources manager of the company sets a target to increase the company workforce by 20% each year. In this scenario, Lancencus's plan to double its workforce in the next 10 years is an example of a _____.

A) recurrent goal
B) productivity goal
C) operative goal
D) distal goal

Question 13

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 14

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 15

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 16

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 17

Terragemt, a construction company, has to complete the construction of a skyscraper by the end of the next fiscal year. To meet this target, the site engineers have made plans to complete one floor each week. In this scenario, Terragemt's plan to complete one floor each week is an example of a _____.

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

Question 18

_____ is defined as the process of choosing a goal and developing a method or strategy to achieve that goal.

A) Controlling
B) Organizing
C) Leading
D) Planning

Question 19

Clarespharm, a pharmaceutical company, wants to be the market leader in the country of Jefnamia by the end of the next fiscal year. To start working toward this goal, the marketing department of Clarespharm sets targets for the marketing teams. Which of the following is ideally the next step for achieving Clarespharm's goal to be the market leader?

A) Developing effective action plans
B) Tracking progress toward goal achievement
C) Developing commitment to the goal
D) Maintaining flexibility in planning

Question 20

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 21

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 22

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 23

In an organization, _____ are responsible for the creation of tactical plans.

A) chief financial officers
B) first-level managers
C) middle managers
D) top managers

Question 24

An organization's _____ is defined as a more specific goal than the organization's purpose that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.

A) vision statement
B) single-use plan
C) strategic objective
D) mission statement

Question 25

In the context of the planning process, which of the following is most likely to be useful when conceived goals turn out not to be achievable?

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

Question 26

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 27

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 28

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

Question 29

The main objective of _____ is to keep choices open by making small, simultaneous investments in many alternative plans.

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

Question 30

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

Question 31

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 32

Douclamp, a steel manufacturing company, makes small investments in three iron ore plants in different cities. When one of the plants yields more profit than the others, Douclamp increases its investment in that plant and discontinues its investments in the other plants. In this scenario, Douclamp most likely uses _____.

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

Question 33

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 34

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 35

Jonah, the chief marketing officer of an apparel company, is responsible for formulating a plan that details the countries that the company will venture into during the next three years. When developing the plan, he has to consider the political environment, the ease of doing business, and competition in those countries. In this scenario, Jonah will most likely be contributing to developing the company's _____.

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

Question 36

In the context of maintaining flexibility while planning, unlike traditional planning, options-based planning:

A) involves committing people and resources to a particular course of action.
B) involves making large investments in many alternative plans over a long period of time.
C) reduces flexibility.
D) involves maintaining slack resources.

Question 37

Amy, the chief operations officer of a company that manufactures baby products, formulates a plan on how the company's newly launched products will serve its wide customer base and how it will deal with its competitors. In this scenario, Amy has most likely contributed to developing the company's _____.

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

Question 38

Hodecathon, a large company that sells home décor, makes investments in four handicraft stores that supply handicrafts to the company. Depending on the return that Hodecathon gets on these investments, the company plans to buy the most profitable store. In this scenario, Hodecathon is most likely using _____.

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

Question 39

_____ are defined as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities.

A) Slack resources
B) Strategic groups
C) Secondary firms
D) Standing plans

Question 40

Woolplank is an apparel company that specializes in woolen clothes. It heavily invested in five sheep farms last year. This year, it plans to buy the most profitable sheep farm out of the five. In this scenario, Woolplank is most likely using _____.

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

Question 41

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 42

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 43

The managers of Danestump, a hardware manufacturing company, are expected to follow standing plans before approving long leaves applied by their subordinates. The standing plans detail the specific steps to be followed when approving such leaves. Given this information, the standing plans in this scenario can be referred to as _____.

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

Question 44

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

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

Question 45

At a canning factory, employees are strictly instructed to wear a 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 46

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 47

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 48

_____ 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 49

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 50

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 51

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 52

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 53

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 54

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 55

In an organization, _____ are responsible for developing and carrying out operational plans.

A) lower-level managers
B) middle managers
C) top managers
D) board of directors

Question 56

Floyd, the chief finance officer of a company that sells rubber sheets, prepares an estimate that helps in calculating the rates of Cost, Insurance and Freight (CIF) and Free on Board (FOB) contracts. This pricing estimate is used every time the company gets an export order. In this scenario, Floyd has most likely prepared a _____.

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

Question 57

In the context of operational plans, which of the following is a difference between policies and procedures?

A) Policies are single-use plans, whereas procedures are standing plans.
B) Policies are plans that cover one-time-only events, whereas procedures are plans that can be used for recurring events.
C) Policies indicate the general course of action that managers should take in response to a particular event, whereas procedures indicate the specific steps that managers should take in response to a particular event.
D) Policies are strategic plans that are developed and carried out by the lower-level managers of a company, whereas procedures are tactical plans that are developed and carried out by the middle management of a company.

Question 58

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 59

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 60

In the context of operational plans, 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 61

During the annual performance appraisal, Andre's supervisor sets her own standards against which Andre is rated for his performance. In this scenario, Andre's supervisor most likely uses _____ to make a rational decision.

A) absolute comparisons
B) relative comparisons
C) dissonant correlation
D) illusory correlation

Question 62

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 63

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 64

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 65

Robert has a list of characteristics that he wants his new house to have, and he has listed every item in that list in their order of importance to him. Among the items on his list, the proximity to a bus stop has the highest priority as it is his primary means of commuting, and the street name has the lowest priority. In this scenario, Robert is using _____ to make a rational decision.

A) absolute comparisons
B) relative comparisons
C) benchmarking
D) satisficing

Question 66

In the context of decision making, a _____ is a gap between a desired state and an existing state.

A) problem
B) benchmark
C) condition of certainty
D) minimum threshold

Question 67

_____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.

A) Options-based planning
B) Rational decision making
C) Benchmarking
D) Profiling

Question 68

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 69

_____ are defined as the standards used to guide judgments and decisions.

A) Standing plans
B) Purpose statements
C) Decision criteria
D) Judgement liens

Question 70

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 71

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 72

Claire is a manager at an information technology (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 73

Gloria, a designer, is looking for a rented place to set up her own tailoring unit. She has laid down several criteria for finding the ideal place for her unit. Among the criteria, connectivity to public transport is her highest priority, accessibility of community stores is less important, and fully furnished kitchenette is her lowest priority. In this scenario, Gloria is most likely using _____ to make a rational decision.

A) absolute comparisons
B) relative comparisons
C) dissonant correlation
D) illusory correlation

Question 74

_____ is defined as the process of choosing a solution from available alternatives.

A) Production blocking
B) Decision making
C) Evaluation apprehension
D) Dialectical inquiry

Question 75

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 76

In the context of operational plans, which of the following is a difference between single-use plans and standing plans?

A) Single-use plans cover unique, one-time-only events, whereas standing plans handle frequently recurring events.
B) Single-use plans use quantitative planning, whereas standing plans use qualitative planning.
C) Single-use plans include policies and procedures, whereas standing plans include rules and regulations.
D) Single-use plans are operational plans, whereas standing plans are tactical plans.

Question 77

Tyler, the site engineer at a construction company, has identified and defined the problem of frequent accidents during the construction of high-rise buildings. In the context of rational decision making, which of the following is the next step that Tyler should ideally take?

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

Question 78

In the context of rational decision making, which of the following is a difference between absolute comparisons and relative comparisons?

A) Unlike in absolute comparisons, in relative comparisons, each criterion is compared with a standard.
B) Unlike in absolute comparisons, in relative comparisons, each criterion is ranked on its own merits.
C) Unlike in absolute comparisons, in relative comparisons, each criterion is compared directly with every other criterion.
D) Unlike in absolute comparisons, in relative comparisons, each criterion is assigned a fixed weight based on its relevance.

Question 79

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 80

An organization's _____ is defined as a more specific goal than the organization's purpose that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.

A) vision statement
B) single-use plan
C) strategic objective
D) mission statement