Question 1

A contingency plan

Accepted Answer

A contingency plan is developed after considering possible events that may disrupt the organization's originally developed plan. It is an alternative course of action that can be implemented in case of unforeseen circumstances. Developing a contingency plan does not make an organization less flexible, but rather enhances its ability to adapt to changing situations.

Question 2

The two most common types of operational plans are

Accepted Answer

The two most common types of operational plans are standing plans and single-use plans. Standing plans are ongoing plans that are constantly revisited and adjusted as needed, while single-use plans are specific to a particular situation or event and are not intended for ongoing use. Long-range and short-range are time-based classifications of plans, not operational plan types. Functional and hierarchical refer to organizational structures, not types of plans. Policies and programs are types of plans, but not the two most common types of operational plans. Contingency and integrated are not recognized categories of operational plans.

Question 3

A year before the census,the federal government hired tens of thousands of temporary workers to prepare for the count.This is an example of a(n)____ plan.

Accepted Answer

An action plan is a detailed plan outlining actions needed to reach one or more goals. In this case, hiring temporary workers to prepare for the census is a specific action taken to achieve the goal of conducting the census efficiently.

Question 4

Tactical planning success depends on execution.Proper implementation requires all EXCEPT which of the following?

Accepted Answer

Tactical planning success indeed hinges on execution, and proper implementation involves evaluating courses of action, ensuring effective communication, monitoring activities, and having the right information and resources. However, clear-cut operational plans, while important, are more closely associated with the specifics of executing strategies rather than the broader tactical planning and its implementation. Tactical planning focuses on achieving the strategic goals set by higher management, and while operational plans are a part of this, the question emphasizes the execution aspect of tactical plans rather than the detailed operational planning.

Question 5

Which of the following is NOT a necessary task while engaged in contingency planning?

Accepted Answer

Monitoring the competition is not directly related to contingency planning. The other options are all necessary tasks in contingency planning.

Question 6

Who is responsible for identifying,analyzing,and recommending program alternatives;developing and submitting budgets;and finally putting plans into action?

Accepted Answer

The answer of Who is responsible for identifying,analyzing,and recommending program...

Question 7

Managers may have to make a(n)____ plan in anticipation of changes in technology,the economy,the competition,and the labor market.

Accepted Answer

Contingency plans are designed to address unexpected or unforeseen events, such as changes in technology, the economy, the competition, or the labor market. These plans provide a detailed roadmap of what to do in the event of a contingency, and they can help companies minimize the impact of unexpected events on their operations. Strategic plans, tactical plans, and long-range plans are typically focused on more predictable events and trends. Integrated plans are designed to align multiple plans across an organization, which may include contingency plans as well as other types of plans.

Question 8

An organization's chief executive officer

Accepted Answer

The chief executive officer (CEO) is the top-level executive in an organization and is responsible for overseeing all aspects of the organization, including the planning process. Therefore, it is expected for the CEO to be involved in all phases of the planning process.

Question 9

Tactical plans

Accepted Answer

Tactical plans are an organized sequence of steps designed to execute strategic plans. They are usually developed by lower-level managers with input from front-line employees and are used to achieve specific goals and objectives in the short to medium term. While they do require planning, it is not necessarily a separate planning staff or a board of directors. Tactical plans are also typically focused on the near future, rather than covering many years, and are designed to react to unforeseen circumstances that may arise.

Question 10

The strategic goal set forth by Central Ice Machine Company was to be the leading seller of ice machine replacement parts in the United States.As part of its ____ plan,it set up distribution contracts with six manufacturers of refrigeration units.

Accepted Answer

The mention of setting up distribution contracts with manufacturers suggests a tactical plan, which focuses on specific actions and shorter-term objectives to achieve a larger goal. The other options either pertain to broader and long-term planning (e.g. strategic, long-range, integrated) or planning for unexpected events (contingency).

Question 11

Which of the following is the BEST example of a single-use plan?

Accepted Answer

The plan to build an aquatic center for the 2012 Olympics is a single-use plan because it is designed for a one-time project or event, unlike the other options which are ongoing or repetitive actions.

Question 12

Who has the formal authority and responsibility for an organization's management?

Accepted Answer

The answer of Who has the formal authority and responsibility...

Question 13

Which of the following circumstances would most likely result in the use of a planning task force to help develop plans?

Accepted Answer

A planning task force is typically used when there is a special circumstance or complex issue that needs to be addressed in the planning process. This could include issues such as a major restructuring, a crisis situation, or a significant change in the organization's strategy. It is not typically used to exclude line managers or for normal planning activities, and the decision-making process or authority given to the planning staff is not directly related to the use of a task force.

Question 14

After Greece accumulated massive debt and voters rejected the bailout terms demanded by Greek creditors,uncertainty for the European Union and the Euro increased.Investors and strategists developed ____ plans for a possible Greek exit from the EU.

Accepted Answer

Contingency plans are developed to address potential risks and uncertainties. In this case, investors and strategists developed contingency plans in case Greece decided to exit from the EU, which was a possibility after the rejection of the bailout terms.

Question 15

____ planning is the process by which managers identify alternative courses of action that the organization might follow if various conditions arise.

Accepted Answer

Contingency planning is specifically designed to deal with unexpected events and unexpected changes in the marketplace. It involves identifying the most likely “contingencies”  (unexpected events ) and creating specific strategies to deal with each contingency. Contingency planning is an important part of strategic planning as it prepares the organization to deal with unexpected events and change.

Question 16

CVS has more than 600 pharmacies with Minute Clinics,which are staffed with physician assistants.Carving space out of an existing floor plan to create a new clinic takes less than a year.These are ____ plans.

Accepted Answer

Short-range plans typically involve smaller projects that can be completed within a year or less, such as the creation of new clinics within existing CVS pharmacies. Strategic plans, on the other hand, tend to be much broader and involve long-term goals and objectives that span multiple years. Long-range plans also tend to involve longer-term objectives, while contingency plans and integrated plans are focused on managing and responding to unexpected or rapidly changing situations.

Question 17

The responsibility for establishing corporate mission and strategy lies with the

Accepted Answer

The board of directors is responsible for establishing the corporate mission and strategy, as they are responsible for overseeing the overall direction and performance of the organization. The executive committee and planning task force may assist in developing the mission and strategy, but the ultimate responsibility lies with the board. The chief executive officer and stockholders may provide input, but do not have the primary responsibility for establishing the mission and strategy.

Question 18

The ____ is the single most important individual in any organization's planning process.

Accepted Answer

The chief executive officer (CEO) is the top-level executive in any organization and is responsible for setting the strategic goals and direction of the company. Therefore, the CEO is the most important individual in any organization's planning process.

Question 19

A single-use plan for a large set of activities is called a

Accepted Answer

A single-use plan for a large set of activities is called a program, as it is designed to achieve a specific goal and is not intended for repeated use.

Question 20

Many organizations develop a professional planning staff with overall responsibility for the planning process.Which of the following is NOT a reason for using a planning staff?

Accepted Answer

Developing a planning staff is not primarily aimed at reducing coalition formation within the organization. Instead, it is intended to help integrate and coordinate planning activities, provide managers with the necessary tools and skills for effective planning, promote a more holistic and inclusive approach to planning that considers the entire organization's needs, and reduce the workload of individual managers by sharing the planning responsibilities.

Quiz 6: Basic Elements of Planning and Decision Making