Deck 6: The Basics of Planning and Project Management

Question 1

State uncertainty occurs when the environment is considered unpredictable.

Answer 1

True

Question 2

When referring to different organizational responses to uncertainty, a reactor makes adjustments only when finally forced to do so by environmental forces.

Answer 2

True

Question 3

Effect uncertainty and response uncertainty are two identical types of environmental uncertainty.

Answer 3

False

Question 4

Wondering if a house you bought will increase in value is an example of response uncertainty.

Question 5

Facebook founder Mark Zuckerberg's first Internet software launch was called Course Match which allowed students at Harvard to pick classes based on who else was registered to take them.

Question 6

Planning is often referred to as the primary management function because it affects all other management functions such as organizing and staffing.

Question 7

By envisioning a pathway from concept to reality, planning enables people to achieve great things.

Question 8

It is accurate to describe planning as a continuous process because of constant change, uncertainty, unexpected problems, and emerging opportunities.

Question 9

Planning should be a springboard to success, not a barrier to creativity.

Question 10

Facebook CEO Mark Zuckerberg said of Facebook, "Our incentive is to give people the exact controls they want, so they share the most information. More and more people want to share information. That is where the world is going."

Question 11

When referring to different organizational responses to uncertainty, as long as a defender's primary technology and narrow product line remain competitive, it can be successful.

Question 12

A mission statement, by definition, has an objective and an action statement.

Question 13

Analyzer organizations have a reputation for aggressively making things happen rather than waiting for them to happen.

Question 14

Defender organizations emphasize detecting and copying competitors' most promising ideas in a changing product/market domain.

Question 15

Traditionally admired for their ability to gain what strategists call a first-mover advantage, prospectors are known for making things happen rather than waiting for them to happen.

Question 16

Planning is the process of avoiding uncertainty.

Question 17

At the beginning of his sophomore year at Harvard, Mark Zuckerberg, developed and launched the world renowned Internet application Facebook.

Question 18

A good plan describes what and why something is to be accomplished.

Question 19

According to research, three types of environmental uncertainty that people perceive are state, effect, and response uncertainty.

Question 20

The analyzer response to environmental uncertainty is represented by taking corrective steps only after adversity.

Question 21

An objective deals with achieving a measurable result without regard to time.

Question 22

The planning and control functions are identical in successful organizations.

Question 23

Objectives can serve as performance targets.

Question 24

The planning horizon for operational planning is shorter than that for strategic planning.

Question 25

Strategic planning, intermediate planning, and operational planning should never overlap, because their boundaries are rigid rather than elastic.

Question 26

Management by objectives (MBO) requires subordinates to write their own objectives, with no help from managers.

Question 27

At the heart of management by objectives (MBO), are measurable objectives set by the manager for each employee.

Question 28

The initial step in the management by objectives (MBO) cycle is setting objectives.

Question 29

Operational planning is unrelated to intermediate planning.

Question 30

The initial planning/control cycle begins when top management establishes strategic plans.

Question 31

Mission statements have little practical value today since everything is changing so fast.

Question 32

A means-ends chain is created by the downward flow of objectives.

Question 33

Well-written objectives should express results qualitatively rather than quantitatively.

Question 34

Dan Sullivan, a consultant to entrepreneurs, argues that goals should be both real and realizable, typically not the case with many entrepreneurs.

Question 35

Lower-level managers set broader objectives with longer time horizons than top executives.

Question 36

Long-range organizational objectives should be listed in order of their priority.

Question 37

C objectives are in the "nice to do" category in the A-B-C priority system.

Question 38

An organization's mission statement is the cornerstone for planning, the North Star for the entire planning process.

Question 39

Monitoring performance, step two in the management by objectives (MBO) cycle, is the most important step.

Question 40

According to Peter Drucker, the most important skill for setting priorities is learning to say "no."

Question 41

The typical management by objectives (MBO) cycle takes two months to complete, since frequent budget adjustments are necessary.

Question 42

To calculate PERT times, two different time estimated 3/4 optimistic and pessimistic 3/4 are used.

Question 43

By adding a specific time dimension, Gantt charts improve upon flow charts.

Question 44

According to 70 research studies, "Top-management commitment" is the key success factor for management by objectives (MBO) programs.

Question 45

Management by objectives (MBO) requires a Theory X management climate.

Question 46

Conceptualization is the first stage of the project life cycle.

Question 47

Management by objectives (MBO) proponents believe that effective leadership and greater motivation are the natural by-products of a proper MBO system.

Question 48

Project managers are responsible for the big picture rather than the little details of their project.

Question 49

Project-based organizations are becoming obsolete in today's technology-driven world.

Question 50

By definition, projects are schedule-driven and results-oriented.

Question 51

On a Gantt chart, planned as well as actual progress can be plotted.

Question 52

Regarding the project manager's roles, the "entrepreneur's" challenge is to navigate unfamiliar surroundings and manage the unexpected.

Question 53

Program evaluation and review technique (PERT) is more commonly used for simple projects, while a Gantt chart is used for more complex projects.

Question 54

Ignoring important yes-or-no decisions is a weakness of flow charts.

Question 55

Project management is a new concept for construction companies and Hollywood moviemakers.

Question 56

Once the initial round of management by objectives (MBO) is complete, the MBO process is terminated.

Question 57

Work in process is represented by a PERT event.

Question 58

Program evaluation and review technique (PERT) was developed by Microsoft.

Question 59

Most large information technology (IT) projects are delivered late and over budget.

Question 60

The project manager's role of "marketer" involves identifying and selling their ideas and being a friend to the client.

Question 61

Which sort of uncertainty relates to being unable to predict the consequences of a particular decision?

A) Effect
B) State
C) Response
D) Economic
E) Macro

Question 62

Break-even analysis is an ideal tool for determining employee wages.

Question 63

People perceive three types of environmental uncertainty: response, ____, and ____.

A) subjective; objective
B) state; effect
C) optimistic; pessimistic
D) macro; micro
E) primary; secondary

Question 64

In break-even analysis, the contribution margin is the break-even point expressed in units.

Question 65

Another term for break-even analysis is cost-volume-profit analysis.

Question 66

The process of coping with uncertainty by formulating future courses of action to achieve specified results refers to

A) PERT.
B) planning.
C) pareto analysis.
D) the project life cycle.
E) controlling.

Question 67

Variable costs are related to time, while fixed costs are related to volume.

Question 68

For organizations like Facebook and Pollo Campero, planning is a(n) __________ process.

A) never-ending
B) easy
C) qualitative
D) unnecessary
E) predictable

Question 69

Both fixed costs and variable costs need to be calculated when doing a break-even analysis.

Question 70

____ has been called the ____ management function.

A) Planning; primary
B) Staffing; secondary
C) Organizing; only
D) Motivation; central
E) Controlling; major

Question 71

____ uncertainty occurs when the environment, or a portion of the environment, is seen as unpredictable.

A) Macro
B) State
C) Response
D) Economic
E) Effect

Question 72

For large, non-routine projects, Program evaluation and review technique (PERT) is an excellent scheduling tool.

Question 73

Facebook founder, Mark Zuckerberg, used ____________ as one of his primary tools for idea generation and planning.

A) Microsoft Project
B) Apple Design
C) a chalk board
D) a white board
E) an I-Pad

Question 74

Planning

A) deals with what, why, and how much.
B) eliminates uncertainty.
C) is called the primary management function.
D) helps managers avoid change.
E) makes budgets obsolete.

Question 75

A project to build three customized golf carts is a good example of when the program evaluation and review technique (PERT) would be useful.

Question 76

A major problem with break-even analysis is that a neat separation of fixed and variable cost can be very difficult.

Question 77

Mark Zuckerberg's first Internet software product was called

A) Facebook
B) Datebook
C) Date Match
D) Course Match
E) Matchbook

Question 78

The path with the least time-consuming chain of activities is the critical path through a PERT network.

Question 79

Break-even analysis is an excellent "what-if" tool for planners who want to know what impact price changes will have on profit.

Question 80

Justin Lashley wonders if his new cell phone repair business will have enough customers in its first year. Justin is experiencing ____ uncertainty.

A) economic
B) subjective
C) macro
D) temporary
E) state