Question 1

The ____ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events.
A) standing plan
B) budget
C) multiple-use plan
D) options-based plan
E) forecast

Accepted Answer

Standing plans are used repeatedly to handle frequently recurring events.

Question 2

____ are standing plans that indicate the specific steps that should be taken in response to a particular event.
A) Policies
B) Procedures
C) Actionable plans
D) Options-based plans
E) Single-use plans

Accepted Answer

Procedures are standing plans that provide instructions for specific activities or tasks, including the steps that should be taken in response to particular events. Policies are also standing plans, but they provide guidelines for decision-making and action across a range of situations. Actionable plans, options-based plans, and single-use plans are all types of plans that may be used to address specific situations, but they are not necessarily standing plans.

Question 3

In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example?
A) rules and regulations
B) procedures
C) policies
D) organizational norms
E) security governances

Accepted Answer

Procedures are defined as a standing plan indicating the specific steps that should be taken in response to a particular event. Here the company has established procedures to be used in the event of a fire.

Question 4

Neither Chile nor Peru have a mass-market café culture, but that fact has not stopped Starbucks from engaging in ____ to determine how best to expand into those markets.
A) intuitive conditioning
B) benchmarking
C) decision making
D) organizational design
E) conditioned learning

Accepted Answer

Decision making is the process of choosing a solution from available alternatives.

Question 5

____ are a type of operational plan.
A) Single-use plans
B) Contingency plans
C) Short-term strategies
D) Mission modifications
E) Benchmarks

Accepted Answer

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

Question 6

Management by objectives (MBO) is a management technique often used to develop and carry out ____.
A) single-use plans
B) standing plans
C) operational plans
D) tactical plans
E) hierarchical plans

Accepted Answer

MBO is defined as a four-step process in which managers and employees (1) discuss and (2) select goals, (3) develop tactical plans, and (4) meet regularly to review progress toward goal accomplishment. MBO focuses on shorter-term tactical planning.

Question 7

There are three kinds of ____ plans. They are single-use plans, standing plans, and budgets.
A) strategic
B) tactical
C) operational
D) MBO
E) actionable

Accepted Answer

Single-use plans are designed to achieve a specific goal or objective and are not intended to be used again once the goal is achieved. Standing plans are ongoing and provide guidance for activities that occur repeatedly within the organization. Finally, budgets are financial plans that outline projected income and expenses for a specific period of time. These types of plans fit best under the operational category, which focuses on the day-to-day activities of an organization.

Question 8

Which of the following is the most specific type of standing plan?
A) policies
B) procedures
C) rules and regulations
D) forecasts
E) MBO plans

Accepted Answer

Rules and regulations are defined as standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event. Rules and regulations are more specific than procedures because they precisely define what must happen (and not happen) in response to a particular event.

Question 9

Budgets are an example of ____ planning.
A) strategic
B) tactical
C) operational
D) actionable
E) single-use

Accepted Answer

Budgets are a detailed financial plan that outlines how an organization will allocate its resources over a specific period to achieve its goals. It is an example of operational planning as it pertains to the day-to-day operations and typically covers a year or less.

Question 10

When done correctly, management by objectives (MBO) is an extremely effective method for ____.
A) brainstorming
B) developing policies and procedures
C) broadening the span of transformation
D) problem framing
E) tactical planning

Accepted Answer

MBO is defined as a four-step process in which managers and employees (1) discuss and (2) select goals, (3) develop tactical plans, and (4) meet regularly to review progress toward goal accomplishment. MBO focuses on shorter-term tactical planning.

Question 11

Who is primarily responsible for developing operational plans?
A) lower-level managers
B) middle managers
C) top managers
D) staff advisors
E) any of these

Accepted Answer

The answer of Who is primarily responsible for developing operational...

Question 12

____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.
A) Problem identification
B) Rational decision making
C) Benchmarking
D) Multivariable selection
E) Keystoning

Accepted Answer

Rational decision making is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. The other options (A, C, D, and E) are not synonymous with this process.

Question 13

Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee like people in the United States and that they should change this habit, Starbucks has begun a ____ process with problem identification.
A) rational decision making
B) trend analysis
C) sacrificing
D) selection of optimal solutions
E) framing constraints

Accepted Answer

The first step in rational decision making is problem identification.

Question 14

____ plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months.
A) Strategic
B) Tactical
C) Operational
D) Standing
E) Procedural

Accepted Answer

Operational plans are defined as day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over a 30-day to six-month period.

Question 15

A(n) ____ is a standing plan that indicates the general course of action that should be taken in response to a particular event or situation.
A) policy
B) procedure
C) rule
D) regulation
E) heuristic

Accepted Answer

A policy is a standing plan that provides guidelines for decision-making and indicates the general course of action to be taken in response to a particular event or situation. Policies are usually broader in scope than procedures and can guide decision-making across different situations. Rules, regulations, and heuristics are not necessarily standing plans and may not be specific to a particular event or situation.

Question 16

Which of the following is NOT a step in the management by objectives (MBO) process?
A) jointly discuss possible goals
B) participatively select goals that are challenging
C) jointly develop operational plans
D) meet regularly to review progress toward goal accomplishment
E) participate in the selection of goals that are consistent with the company's overall goals

Accepted Answer

MBO is defined as a four-step process in which managers and employees (1) discuss and (2) select goals, (3) develop tactical plans, and (4) meet regularly to review progress toward goal accomplishment. MBO focuses on shorter-term tactical planning.

Question 17

At a canning factory, new employees were instructed never to wear loose-fitting clothes when working around the canning machine. What kind of a standing plan is described in this example?
A) rules and regulations
B) procedures
C) policies
D) organizational norms
E) security governances

Accepted Answer

This is a precise statement of the type of clothing that should not be worn in the workplace (a rule).

Question 18

____ is the process of choosing a solution from available alternatives.
A) Decision making
B) Problem identification
C) Heuristics
D) Multivariable selection
E) Problem solving

Accepted Answer

Decision making is the process of examining available options and selecting one that meets a specific goal or objective. It involves analyzing possible alternatives and using judgment, reasoning, and critical thinking skills to determine the best course of action.

Question 19

The European Union encourages companies to abandon national boundaries and offer the same products to all of the member countries. Allianz, Germany's largest insurance group, is considering converting from a German company to a European company. If it makes this decision rationally, it will first ____.
A) create decision criteria based on national GNPs
B) identify problems arising from tax and regulatory issues
C) decide whether to expand to one nation at a time
D) create a committee to make the final decision
E) avoid the use of bounded rationality

Accepted Answer

Problem identification is the first step in rational decision making.

Question 20

____ are types of standing plans.
A) Policies and procedures
B) Targeted plans
C) Long-term tactical strategies
D) MBO guidelines
E) Transformational plans

Accepted Answer

Policies and procedures are examples of standing plans, which are plans that are developed for recurrent and routine activities within an organization. Targeted plans focus on achieving specific objectives, long-term tactical strategies are focused on achieving long-term objectives, MBO guidelines refer to management by objectives and are not a type of plan, and transformational plans focus on changing organizational structure and culture, rather than recurring activities.

Quiz 5: Planning and Decision Making

The ____ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events.

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

In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example?

Neither Chile nor Peru have a mass-market café culture, but that fact has not stopped Starbucks from engaging in ____ to determine how best to expand into those markets.

____ are a type of operational plan.

Management by objectives (MBO) is a management technique often used to develop and carry out ____.

There are three kinds of ____ plans. They are single-use plans, standing plans, and budgets.

Which of the following is the most specific type of standing plan?

Budgets are an example of ____ planning.

When done correctly, management by objectives (MBO) is an extremely effective method for ____.

Who is primarily responsible for developing operational plans?

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

____ plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months.

A(n) ____ is a standing plan that indicates the general course of action that should be taken in response to a particular event or situation.

Which of the following is NOT a step in the management by objectives (MBO) process?

At a canning factory, new employees were instructed never to wear loose-fitting clothes when working around the canning machine. What kind of a standing plan is described in this example?

____ is the process of choosing a solution from available alternatives.

____ are types of standing plans.