Deck 5: Planning and Decision Making

Question 1

Creating and executing a plan is one of the most important tasks of a manager.

Answer 1

True

Question 2

An organization's purpose must regularly change to adapt to changes in the environment over time.

Answer 2

False

Question 3

Planning is a three-step process which involves setting goals, then next developing effective action plans, and finally tracking progress toward goal achievement.

Answer 3

False

Question 4

Encouraging worker participation in goal setting, making goals public, and getting top management's support are all recommended ways to increase goal commitment in a company.

Question 5

On average, companies that create plans have larger profits and grow much faster than companies that don't.

Question 6

The term decision making is used to refer to the process of choosing a solution from available alternatives.

Question 7

The three kinds of standing plans are policies, procedures, and rules and regulations.

Question 8

The purpose of action plans is to leave commitments open by maintaining a cushion of resources, such as extra time, people, money, or production capacity, that can be used to address and adapt to unanticipated changes, problems, or opportunities.

Question 9

S.M.A.R.T. goals are Specific, Meaningful, Active, Reachable, and Timely.

Question 10

Both proximal and distal goals are used to provide additional motivation and rewards for employees.

Question 11

Management by objectives is a two-step process in which managers and their employees discuss possible goals and then meet regularly to review progress toward the accomplishment of those goals.

Question 12

Developing a purpose statement is the sole responsibility of middle management.

Question 13

Tactical plans and objectives are used to direct behavior, efforts, and attention over the next six months to two years.

Question 14

Planning can impede change, create a false sense of certainty, and lead to the detachment of planners.

Question 15

Standing plans deal with unique, one-time-only events.

Question 16

For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress.

Question 17

Planning works best when the goals and action plans at the bottom and middle of the organization supports the goals and action plans at the top of the organization.

Question 18

Planning can greatly improve organizational and individual performance.

Question 19

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

Question 20

Budgeting is a form of qualitative planning.

Question 21

Groupthink is more likely to occur in a highly cohesive group that is insulated from others and has no established procedure for systematically defining problems and exploring alternatives.

Question 22

The most popular approach to increasing goal commitment is ____.

A)encouraging workers' participation in goal setting
B)assigning goals to workers
C)getting top management's support
D)assigning unattainable goals
E)management by mentoring

Question 23

Which of the following is a commonly used method for increasing goal commitment?

A)Creating unattainable goals
B)Making goals public
C)Getting the union's support
D)Using the equity theory
E)Creating less challenging goals

Question 24

A(n) _____ lists the specific steps, people, resources, and time period for accomplishing a goal.

A)strategy
B)proximal goal
C)distal goal
D)action plan
E)subordinate objective

Question 25

According to the S.M.A.R.T. guidelines, goals should be ____.

A)aggregated
B)broad
C)timely
D)motivated
E)nonspecific

Question 26

After earning $8 billion in profit, Royal Castle decided to strive to double its profits within the next five years. Which of the following management functions should it perform first to achieve its goal?

A)Motivating
B)Dominating
C)Planning
D)Organizing
E)Controlling

Question 27

According to the S.M.A.R.T. guidelines, goals should be ____.

A)synergistic
B)maximized
C)unattainable
D)role­related
E)task­oriented

Question 28

Which of the following is an advantage of planning?

A)It encourages people to work harder for extended periods.
B)It allows organizations to adapt to change quickly.
C)It fixes all organizational problems.
D)It fosters flexibility in the organization.
E)It creates a suitable environment for change.

Question 29

The six steps in the rational decision-making process are as follows: (1) frame the problem, (2) identify decision criteria, (3) weight the criteria, (4) generate alternative courses of action, (5) evaluate each alternative, and (6) compute the optimal decision.

Question 30

The presence of a gap between an existing state and a desired state is no guarantee that managers will make decisions to solve problems.

Question 31

Which of the following is a drawback of planning?

A)Planning does not provide direction to managerial activities.
B)A potential pitfall of planning is the detachment of planners.
C)Managers tend to put in minimal efforts when following a plan.
D)Planning decreases persistence among employees.
E)Companies that plan tend to be less profitable than companies that don't plan.

Question 32

Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?

A)Synergistic
B)Measurable
C)Timely
D)Attainable
E)Realistic

Question 33

Which of the following is a pitfall of planning?

A)It increases employee turnover.
B)It can impede change and slow needed adaptation.
C)It discourages employees form working hard for long periods.
D)It leads to disintegration of task strategies.
E)It decreases the effort put in by managers and employees.

Question 34

Which of the following is true about planning?

A)It fosters organizational flexibility.
B)It adversely affects profitability.
C)It creates an environment of uncertainty.
D)It gives direction to managerial efforts.
E)It quickens adaptation to change.

Question 35

Which of the following is true about planning?

A)It reduces effort from employees and managers.
B)It helps managers create task strategies.
C)It decreases persistence toward goals.
D)It quickens needed adaptation.
E)It fixes all organizational problems.

Question 36

The use of _____ in planning produces a false sense of certainty and is often cited as one of the major pitfalls of planning.

A)assumptions
B)commitment
C)flexibility
D)tactics
E)benchmarking

Question 37

To increase its customer base, Alpha LLC. has decided to sell its products in two new states. Alpha LLC. is performing the _____ function of management.

A)deskilling
B)staffing
C)divesting
D)​planning
E)controlling

Question 38

_____ is choosing a goal and developing a method or strategy to achieve a goal.​

A)​Coordinating
B)​Organizing
C)​Leading
D)​Planning
E)​Commanding

Question 39

The manager of a car manufacturing company in the U.S. wants to set up factories in three​ other countries by the end of the year. After he has set this goal, which of the following is the next step he should take in order to achieve this goal?

A)​Analyze the profits the factories will make.
B)​Track progress toward goal achievement.
C)​​Develop commitment toward the goal.
D)​Develop effective action plans.
E)​Maintain flexibility when trying to achieve the goal.

Question 40

According to the S.M.A.R.T. guidelines, goals should be ____.

A)broad
B)measurable
C)rational
D)nonspecific
E)actionable

Question 41

A(n) _____ is a brief, two-sentence statement of a company's purpose for existing.​

A)​action plan
B)​budget
C)​organizational mission
D)​policy
E)​standing plan

Question 42

The last step in effective planning is to _____.

A)maintain flexibility in planning
B)develop long­term action plans
C)develop goal commitment
D)acculturate the employees
E)track progress toward goal achievement

Question 43

For options-based planning to work, the organization must _____.

A)have slack resources
B)use cross­functional teams
C)have broad spans of management
D)have tall organizational structures
E)use centralization

Question 44

Which of the following statements is true about tactical plans?

A)They are developed by top managers.
B)They are developed by team leaders.
C)They elaborate the daily schedules of workers.
D)They are short­term plans for a maximum of three months.
E)They direct behavior and efforts for six to two years.

Question 45

The basic purpose of _____ planning is to leave commitments open by maintaining slack resources.

A)options­based
B)learning­based
C)traditional
D)proximal
E)single­use

Question 46

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

A)Preparing worker schedules
B)Reviewing progress towards goal achievement
C)Developing operational plans
D)Centralizing decision making power
E)Discussing possible goals

Question 47

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

A)​single­use plans
B)​standing plans
C)​operational plans
D)​tactical plans
E)​visionary plans

Question 48

The _____ is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.

A)policy
B)single­use plan
C)strategic objective
D)purpose statement
E)tactical plan

Question 49

Top management is responsible for developing ____.

A)appraisal reports
B)tactical plans
C)operational plans
D)strategic plans
E)worker schedules

Question 50

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

A)Jointly discuss possible goals
B)Collectively 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

Question 51

The manager of a packaging and shipping company has set a short-term goal of increasing the customer base by 5% in the next two months. ​In this context, the manager has set a _____.

A)​distal goal
B)mission statement
C)​visionary goal
D)​policy
E)​proximal goal

Question 52

_____ plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.

A)Strategic
B)Tactical
C)Operational
D)Single­use
E)Visionary

Question 53

Who among the following is responsible for the creation of tactical plans?

A)Team leaders
B)Lower­level managers
C)Middle managers
D)Top managers
E)Facilities team

Question 54

Which of the following is an accepted method for tracking progress toward goal achievement?

A)Setting response and stimulus goals
B)Gathering and providing performance feedback
C)Using micromanagement techniques
D)Practicing planner detachment
E)Data warehousing and data mining

Question 55

Mathew, a manager at Happylyfe Inc., has set a long-term goal of becoming a global figure for holiday packages within the next five years. In this context, Mathew has set a(n) _____.​

A)​policy
B)​operational plan
C)​distal goal
D)​single­use plan
E)​proximal goal

Question 56

_____ plans are the day-to-day plans for producing or delivering the organization's products and services.

A)Strategic
B)Tactical
C)Operational
D)Standing
E)Single­use

Question 57

_____ planning allows companies to maintain flexibility by making small simultaneous investments in many alternative plans.

A)Strategic
B)Options­based
C)Action­based
D)Functional
E)Operational

Question 58

An Australian manufacturer of surfboards wants to increase awareness of its brand in the U.S. market within the next one year. It wants to host a series of surfboard competitions in California to accomplish this objective. Which of the following types of plans will it use?

A)A policy
B)A purpose statement
C)An operational plan
D)A visionary plan
E)A tactical plan

Question 59

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

A)reverse engineering
B)option­based planning
C)policy planning
D)single­use planning
E)contingency planning

Question 60

A company's purpose statement _____.​

A)​changes from country to country
B)​contains all the rules of the company
C)​is enduring and inspirational
D)​is a short­term goal or subgoal
E)​deals with unique, one­time­only events

Question 61

____ are types of standing plans.

A)Policies and procedures
B)Targeted plans
C)Long­term tactical strategies
D)MBO guidelines
E)Transformational plans

Question 62

____ are a type of operational plan.

A)Single­use plans
B)Purpose statements
C)Strategic plans
D)Tactical plans
E)Benchmarks

Question 63

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

A)Policies
B)Procedures
C)Rules and regulations
D)Budgets
E)MBO plans

Question 64

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

Question 65

A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).

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

Question 66

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)single­use plan
D)options­based plan
E)forecast

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)Actionable plans
D)Options­based plans
E)Single­use plans

Question 68

​The performance scores of each of the employees of a company are compared against a standard score and employees with scores lesser than a particular score are penalized. The company used a(n) _____ method of comparison.

A)​redundant
B)​relative
C)​contingent
D)​​absolute
E)​analogous

Question 69

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. In this context, which of the following types of standing plans is used by the organizations?

A)Rules and regulations
B)Procedures
C)Policies
D)Organizational norms
E)Security governances

Question 70

What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturing company?

A)A single­use plan
B)An action plan
C)A strategic plan
D)A standing plan
E)A policy

Question 71

Susan is a manager at a grocery store. Every morning when she enters the store, there are a series of steps that should be taken by her. She has to switch on all the lights, switch on the air conditioner, check if any product is expired, and check if the cash registers are working. In this context, Susan is following a(n) _____.

A)​budget
B)​​procedure
C)​option­based plan
D)​single­use plan
E)​tactical plan

Question 72

Due to an earthquake, the servers of an online shopping company were affected and the internet was down. The managers of the company had to formulate and carry out a procedure ​so that businesses could run normally while the servers were being fixed. To overcome this unexpected problem, the mangers devised a(n) _____.

A)​single­use plan
B)​purpose statement
C)​policy
D)​strategic objective
E)mission statement

Question 73

​The managers of a transport company are planning how much money should be allocated to each of its units. They want to cut down unnecessary expenses and put the savings into developing the company. In this context, the managers are formulating a(n) _____.

A)​purpose statement
B)​policy
C)regulation
D)strategic objective
E)​budget

Question 74

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

A)Benchmarking
B)Problem identification
C)Multivariable selection
D)​Rational decision making
E)Keystoning

Question 75

Budgets are a type of ____ plans.

A)strategic
B)tactical
C)operational
D)actionable
E)policy

Question 76

Who among the following is responsible for developing operational plans?

A)Lower­level managers
B)Middle managers
C)Top managers
D)Shareholders
E)Board of directors

Question 77

A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods are _____.

A)​tactical plans
B)​action plans
C)​single­use plans
D)​standing plans
E)​visionary plans

Question 78

At a canning factory, new employees were instructed to wear a certain type of clothes when working around the canning machine. The description of the clothes was very detailed and specific. Which of the following kinds of standing plans is described in this example?

A)Rules and regulations
B)Mission
C)Policies
D)Purpose statements
E)Budgets

Question 79

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

A)Decision making
B)Divesting
C)Deskilling
D)Environmental scanning
E)Self­dealing

Question 80

Claire is faced with an issue and wants to come up with a rational decision regarding the issue. Which of the following is the first step Claire should take to make a rational decision?​

A)​Compute the optimal decision
B)​Generate alternate courses of action
C)​Identify decision criteria
D)​​Define the problem
E)​Evaluate each alternative