Deck 8: Foundations of Planning

Question 1

Stated goals are those that an organization actually pursues.

Answer 1

False

Question 2

Studies indicate that doing a good job planning and implementing those plans play a bigger part in high performance than does how much planning is done.

Answer 2

True

Question 3

The commitment concept says that plans should extend far enough to meet those commitments made when the plans were developed.

Answer 3

True

Question 4

In traditional goal setting, goals set by top managers flow down through the organization and become subgoals for each organizational area.

Question 5

The number of years used to define short-term and long-term plans has increased considerably because of the greater environmental certainty businesses have today.

Question 6

As managers plan, they develop both goals and plans.

Question 7

Several research studies have conclusively proven that planning organizations always outperform nonplanning organizations.

Question 8

Short-term plans are those covering one year or less.

Question 9

Absence of planning does not inhibit the ability of departments and individuals to work together or organizations to move.

Question 10

The standard procedure to be followed by the human resources department of a company when initiating disciplinary action against an employee is an example of a standing plan.

Question 11

Planning is concerned with how objectives are to be accomplished, not what is to be accomplished.

Question 12

Long-term plans are those with a time frame beyond three years.

Question 13

Directional plans are clearly defined and leave no room for interpretation.

Question 14

In the management by objectives (MBO) process of goal setting, goals are not well-defined, giving managers and employees more flexibility to respond to changing conditions.

Question 15

Planning provides direction to managers and nonmanagers alike.

Question 16

Most businesses have only the single goal of making profits.

Question 17

When uncertainty is high and managers must be flexible in order to respond to unexpected changes, directional plans are preferable.

Question 18

Planning helps managers eliminate uncertainty and insulates organizations from change.

Question 19

The first step in goal setting is to evaluate available resources.

Question 20

Strategic goals focus exclusively on the financial performance of the organization.

Question 21

Organizational plans can be classified on the basis of all of the following characteristics, except on the basis of their ________.

A) breadth
B) attainability
C) specificity
D) frequency of use

Question 22

________ plans apply to the entire organization and establish the organization's overall goals.

A) Departmental
B) Strategic
C) Operational
D) Specific

Question 23

Most company's goals can be classified as either ________ or ________.

A) strategic; financial
B) operational; tactical
C) social; economic
D) strategic; operational

Question 24

Which of the following is one of the reasons why managers should plan?

A) When work activities are coordinated around plans, inefficiencies become obvious.
B) Uncertainty can be eliminated and the organization can be insulated from change with planning.
C) Planning eliminates the need to set goals.
D) Planning eliminates the need to measure work effort

Question 25

The effect of planning on managers is that it forces them to ________.

A) grow resistant to change
B) anticipate and respond to change
C) eliminate uncertainty
D) work at cross purposes

Question 26

An organization's mission states that it "is committed to reducing its environmental footprint"; but its facilities do not comply with statutory environmental regulations.This is an instance of how ________.

A) strategic goals help shape financial goals
B) long-term goals differ from short-term goals
C) an organizations stated goals need not be its real goals
D) a company's real goals are derived from its mission statement

Question 27

Operational plans are usually ________.

A) short term, directional, and standing
B) short term, specific, and standing
C) long term, directional, and single use
D) long term, specific, and standing

Question 28

________ involves defining the organization's goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities.

A) Execution
B) Logistics
C) Planning
D) Operations

Question 29

Dynamic environments require a flatter organizational hierarchy in order to plan effectively.

Question 30

In an uncertain environment, managers should develop plans that are specific, but flexible.

Question 31

Strategic plans are usually ________.

A) short term, directional, and standing
B) short term, specific, and standing
C) long term, directional, and single use
D) long term, specific, and standing

Question 32

Plans that encompass only the production or the sales goals of a company are termed ________ plans.

A) operational
B) strategic
C) informal
D) financial

Question 33

When formal planning fails to lead to higher performance, which of the following is most likely to be the reason for the failure?

A) A participative style of planning was used.
B) Managers were allowed too much autonomy.
C) The company emphasized the control function over other functions.
D) Constraints of the external environment.

Question 34

An organization's ________ goals are official statements of what an organization says, and what it wants its stakeholders to believe its goals are.

A) stated
B) real
C) authentic
D) implicit

Question 35

Which aspect of planning refers to documents that outline how results are to be achieved?

A) goals
B) plans
C) objectives
D) performance

Question 36

Goals are different from plans because ________.

A) goals identify specific steps that the organization needs to achieve, and plans identify the overall mission of the organization
B) goals describe financial objectives, and plans describe objectives related to social responsibility
C) goals are important only for small companies, and plans are important only for large companies
D) goals are desired outcomes, and plans describe how those outcomes will be accomplished

Question 37

Which of the following is true of the impact of formal planning on organizational performance?

A) Formal planning is associated with positive financial results.
B) Organizations that formally plan invariably outperform those that don't plan.
C) The amount of planning done is more important to high performance than the quality of planning and implementation
D) Companies can start seeing the impact of formal planning on performance after about a year of starting the planning process.

Question 38

Nike, Inc.is a sportswear and equipment manufacturer that serves a multitude of sports disciplines.Which of the following statements from Nike would be the best example of a strategic goal?

A) a ten percent increase in average annual sales
B) a seven percent increase in average annual income
C) achieving a return on investment of 17 percent
D) accelerating growth through focused execution

Question 39

Which of the following statements is true regarding an organization's goals?

A) All organizations share the single goal of making profits.
B) A single goal is more efficient than multiple goals for defining an organization's success.
C) Using a single goal such as profit may result in unethical behaviors by employees.
D) Long-term success is ensured if managers emphasize only one goal for an organization.

Question 40

Which of the following is the best indicator of an organization's real goals?

A) organizational members' actions
B) mission statement
C) annual reports
D) stock valuation

Question 41

________ is a process of setting mutually-agreed upon goals and using those goals to evaluate employee performance.

A) Management by objectives
B) Traditional goal setting
C) Management by observation
D) Management by exception

Question 42

Which of the following is an assumption associated with traditional goal setting?

A) Employees will be more motivated to try to attain goals that they helped set.
B) Organizational goals must not be communicated to lower level employees.
C) Top managers know what is best because they see the "big picture."
D) Organizational goals must not be broken down into individual goals.

Question 43

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

A) affirmative action hiring policies of a company
B) a plan developed to implement new environmental regulations
C) the procedure to be followed for firing low-performing employees
D) a plan developed to ensure worker safety at the company's facilities

Question 44

Which of the following statements is true of traditional goal setting?

A) Traditional goal setting assumes that employees know best and employs a bottom-up approach of setting organizational goals.
B) Evaluation of performance is carried out concurrently with the flow of goals through the organization.
C) Goals defined narrowly by top managers need to be made more directional as they flow down through the organization.
D) Managers at each level define goals and apply their own interpretations and biases as they make them more specific.

Question 45

A ________ is an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level.

A) reverse pyramid
B) means-ends chain
C) bottom-up ladder
D) process sequence

Question 46

Which of the following is one of the elements of a management by objectives (MBO) program?

A) directional nature of goals
B) performance feedback
C) indefinite time periods
D) a top-down decision-making approach

Question 47

A standing plan is ________.

A) an ongoing plan that provides guidance for activities performed repeatedly
B) a plan that stands in place of a preferred plan in case of the failure of the latter
C) a one-time plan specifically designed to meet the needs of a unique situation
D) a flexible plan that sets out general guidelines for company strategy

Question 48

Which of the following is one of the problems associated with traditional goal setting?

A) Top level managers tend to define the organization's goals in very narrow terms.
B) Transition of strategic goals into departmental, team, and individual goals is difficult.
C) It can result in the formation of a means-ends chain.
D) Goals set are invariably easily accomplished.

Question 49

Which of the following is the last step in MBO?

A) Progress toward objectives is periodically reviewed, and feedback is provided.
B) The organization's overall objectives and strategies are formulated.
C) Successful achievement of objectives is reinforced by performance-based rewards.
D) Action plans are implemented.

Question 50

Which of the following is the first step in MBO?

A) The organization's overall objectives and strategies are formulated.
B) Unit managers collaboratively set specific objectives for their units with their managers.
C) Action plans are specified and agreed upon by managers and employees.
D) Major objectives are allocated among divisional and departmental units.

Question 51

Short-term plans are those covering ________ or less.

A) three years
B) one year
C) six months
D) five years

Question 52

________ plans are plans that are clearly defined and leave no room for interpretation.

A) Directional
B) Stated
C) Long-term
D) Specific

Question 53

Which of the following is one of the elements of a management by objectives (MBO) program?

A) absence of a time frame
B) participative decision making
C) directional goals
D) absence of control measures

Question 54

Long-term plans are defined as those with a time frame beyond ________.

A) seven years
B) one year
C) five years
D) three years

Question 55

Which of the following is an example of a standing plan?

A) a retail chain's plan to counter the entry of a new competitor
B) a plan developed to address a sudden, unanticipated surge in demand
C) a fire escape policy establishing practices to be followed in an emergency
D) a plan to cope with radical changes in the political environment

Question 56

Which of the following reflects the way goals are set in an MBO program?

A) Goals are not used to measure and control employee performance.
B) Goals tend to be broad and directional to encourage interpretation by individual managers.
C) Apart from being used to ensure that employees are doing what they are supposed to be doing, goals are used as a motivating tool for employees.
D) Goals are set by top level managers and lower level employees implement them based upon their interpretation of these goals.

Question 57

In ________, goals set by top managers flow down through the organization and become subgoals for each organizational area.

A) management by objectives
B) management by observation
C) traditional goal setting
D) management by exception

Question 58

What plans are preferable when uncertainty is high in the business environment?

A) standing plans
B) directional plans
C) specific plans
D) informal plans

Question 59

A problem associated with traditional goal setting is that ________.

A) the narrowly defined goals inhibit a manager's ability to interpret them
B) the high degree of reliance on employees for developing goals is not suited to many situations
C) clarity is lost as the goals make their way down from the top of the organization to lower levels
D) it promotes the growth of a flatter organizational structure and threatens organizational efficiency

Question 60

Which of the following factors has contributed to the decline in the number of years used to define short-term and long-term plans?

A) environmental uncertainty
B) profit-orientation of businesses
C) flattened organizational structures
D) stagnant business conditions

Question 61

When is the traditional top-down approach to planning most likely to be effective?

A) when lower level employees develop plans
B) when the plans focus on developing a large number of plans and carefully documenting them
C) when the management avoids the use of a formal planning department
D) when plans are developed that can actually be used by organizational members

Question 62

A manager's analysis of the external environment can be improved by ________, which involves screening information to detect emerging trends.

A) environmental scanning
B) environmental activism
C) critical path analysis
D) value screening

Question 63

The statement that all stores should be well maintained both inside and out is an example of a ________.

A) directional plan
B) specific plan
C) financial goal
D) social goal

Question 64

An organization is in the process of goal setting.It has finished reviewing the organization's mission.What should it do next?

A) determine the goals individually or with input from others
B) write down the goals and communicate them to all who need to know
C) evaluate available resources
D) review results and whether goals are being met

Question 65

A ________ is a broad statement of an organization's purpose that provides an overall guide to what organizational members think is important.

A) mission
B) proposal
C) project
D) preamble

Question 66

Which of the following is true of the traditional approach to planning?

A) Plans are developed by organizational members at the various levels.
B) This approach makes managerial planning thorough, systematic, and coordinated.
C) Plans created through this method are seldom written down.
D) Formal planning departments are rarely used in this approach.

Question 67

Well-written goals are ________.

A) written in terms of actions rather than outcomes
B) just of reach
C) easily achieved
D) clear as to a time frame

Question 68

How can managers effectively plan when the external environment is continually changing?

A) They should discontinue formal planning.
B) They should set general, but rigid plans.
C) They should be ready to change directions if environmental conditions warrant.
D) They should continue to follow the set organizational plans as persistence will eventually pay.

Question 69

Which of the following is true of competitor intelligence as a means of environmental scanning?

A) The Economic Espionage Act makes it a crime in the United States to engage in competitor intelligence.
B) It is unethical to use competitor intelligence to make strategic business decisions.
C) Competitor intelligence is ethical if competitor-related information is collected from sources accessible and available to the public.
D) Buying competitors' products and asking their own employees to evaluate them to learn about new technical innovations is an example of the unethical practices followed in competitor intelligence.

Question 70

________ planning dominates managers' planning efforts at lower levels of the organization.

A) Strategic
B) Organization-wide
C) Operational
D) Directional

Question 71

Which of the following statements is true of planning in dynamic environments?

A) Organizations should follow a pyramidal structure when operating in uncertain environments.
B) Organizations must discontinue formal planning in such a scenario.
C) To be useful in a dynamic environment, plans need to be specific and unchanging.
D) Flatter organizational hierarchies are necessary for planning in uncertain environments.

Question 72

Which is the first step managers should follow in goal setting?

A) evaluating available resources
B) determining goals individually or with input from others
C) writing down goals and communicating them to all who need to know
D) reviewing the organization's mission

Question 73

The statement that each store should have sales equal to or greater than $100 per square foot per day is an example of ________.

A) a strategic plan
B) a directional plan
C) a financial goal
D) a strategic goal

Question 74

When uncertainty is high, plans should be ________ and ________.

A) specific; flexible
B) directional; standing
C) short-term; directional
D) general; informal

Question 75

Which of the following is the last step in goal setting?

A) review the organization's mission or purpose
B) determine the goals individually or with input from others
C) write down the goals and communicate them to all who need to know
D) review results and whether goals are being met

Question 76

The commitment concept says that plans should ________.

A) extend far enough to meet those commitments made when the plans were developed
B) be done for as long a time period as possible
C) be done for as short a time period as possible
D) not commit to specifically meeting the goals made when the plans were developed

Question 77

The ________ Act makes it a crime in the United States to engage in stealth of a trade secret.

A) Sarbanes-Oxley
B) Patriot
C) Economic Espionage
D) Glass-Steagall

Question 78

Top executives are mainly involved in ________ planning.

A) functional
B) operational
C) strategic
D) departmental

Question 79

________ involves the theft of proprietary materials or trade secrets by any means.

A) Corporate espionage
B) Business intelligence
C) Data mining
D) Data aggregation

Question 80

________ refers to gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them.

A) Due diligence
B) Competitor intelligence
C) Data aggregation
D) Value analysis