Deck 8: Foundations of Planning

Question 1

The effect of planning on managers is that it forces them to do which of the following?

A)react to change
B)consider the impact of change
C)respond indiscriminately
D)plan on overlapping different activities
E)develop bureaucratic response models

Answer 1

B

Question 2

Research indicates that managers who plan always outperform managers who do not plan.

Answer 2

False

Question 3

The ________ of the planning process contributes more to high performance than does the ________ of planning.

A)quality; implementation
B)implementation; quality
C)quality; extent
D)extent; implementation
E)implementation; extent

Answer 3

C

Question 4

What does the evidence suggest about organisations that plan compared to organisations that do not plan?

A)Planning organisations always outperform non-planning organisations.
B)Non-planning organisations always outperform planning organisations.
C)Planning organisations generally outperform non-planning organisations.
D)Non-planning organisations generally outperform planning organisations.
E)They generally perform at about the same level.

Question 5

Planning establishes the goals and standards used to control the organisation.

Question 6

________ is a process that involves defining the organisation's objectives or goals, establishing strategy, and developing plans.

A)Managing
B)Informal planning
C)Leading
D)MBO
E)Planning

Question 7

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

Question 8

Informal planning is ________.

A)performed at the lowest organisation level
B)generally lacks continuity
C)developed in informal meetings and difficult to implement
D)specific and is developed by middle managers for their departments
E)short term and likely to change before it is implemented

Question 9

According to the textbook, research indicates that non-planning organisations generally outperform planning organisations.

Question 10

Environmental issues, such as government regulations and labour unions, tend to have what kind of effect on the value of planning on organisational performance?

A)They tend to increase organisational value because they serve as screens for bad plans.
B)There is no real effect.
C)They have a positive effect on large organisations and a negative effect on small organisations.
D)They decrease the organisational value by constraining management's options.
E)They have a positive effect in public institutions and a negative effect in private organisations.

Question 11

Because planning cannot eliminate change and uncertainty, it is often a waste of time.

Question 12

Which of the following is NOT a part of the definition of planning?

A)defining the organisation's goals and objectives
B)evaluating the organisation's outcomes
C)developing a comprehensive hierarchy of plans to integrate and coordinate activities
D)establishing an overall strategy for achieving the organisation's goals
E)it is concerned with both ends and means

Question 13

Which of the following is a factor that constrains high performance in planning organisations?

A)quality
B)extent
C)implementation
D)environment
E)informality

Question 14

Planning integrates and coordinates work.

Question 15

According to the textbook, organisations need at least ________ year(s)of systematic formal planning before performance is impacted.

A)one
B)two
C)three
D)four
E)five

Question 16

Informal planning is only ever undertaken at the lowest levels in an organisation.

Question 17

Formal planning involves which of the following aspects?

A)developing general objectives
B)planning for up to one year
C)writing objectives
D)distributing the plan to all managerial employees
E)carrying out the goals as each manager thinks is best

Question 18

Scenario-based questions: It's Academic
You are a Faculty Dean for a regional university and your university Vice Chancellor has asked you to develop a plan for the faculty.He wants a plan covering the next five years and he wants it to be as specific as possible yet not overly constraining and containing some flexibility.The Vice Chancellor states that he wants the plan to be accurate so as not to waste time and so you will be well positioned for the future.
Refer to It's Academic (Scenario).The fact that your plan will have specific objectives covering a period of years, along with action plans, means this could be described as a ________ plan.

A)contractual
B)formal
C)defined
D)standard
E)objective

Question 19

Scenario-based questions: It's Academic
You are a Faculty Dean for a regional university and your university Vice Chancellor has asked you to develop a plan for the faculty.He wants a plan covering the next five years and he wants it to be as specific as possible yet not overly constraining and containing some flexibility.The Vice Chancellor states that he wants the plan to be accurate so as not to waste time and so you will be well positioned for the future.
Refer to It's Academic (Scenario).Due to the many academic institutions in your area, the Vice Chancellor has expressed concern about sharing too many details regarding specific goals and action programs beyond top administration and the university's council.According to the textbook, you should suggest that ________.

A)goals must be shared with organisation members to be effective
B)because of the intense competition in your area, you agree with his position
C)strategic goals and plans should never leave the boardroom under any circumstances - 'loose lips sink ships'
D)information could be leaked through the press and the internet over time, so that employees will become aware of plans
E)it is important that plans are initially kept secret as they will provide future control measures for staff actions

Question 20

One purpose of planning is that it minimises ________ and ________.

A)cost; time
B)time; personnel needs
C)waste; redundancy
D)time; waste
E)mistakes; cost

Question 21

In a short essay, define 'planning' and discuss the characteristics of formal versus informal planning as used in various organisations.

Question 22

Scenario-based questions: It's Academic
You are a Faculty Dean for a regional university and your university Vice Chancellor has asked you to develop a plan for the faculty.He wants a plan covering the next five years and he wants it to be as specific as possible yet not overly constraining and containing some flexibility.The Vice Chancellor states that he wants the plan to be accurate so as not to waste time and so you will be well positioned for the future.
Refer to It's Academic (Scenario).Your boss wants this plan to be very valuable to the organisation.You are aware of the overall value of planning in organisations and tell him ________.

A)organisations that plan always outperform those who do not
B)formal planning has little long-term association with higher profits
C)the extent of planning is more important than the process
D)the environment may restrict higher performance
E)overall, there is a general positive relationship between planning and performance

Question 23

In a short essay, list and discuss the four reasons for planning.

Question 24

According to the textbook, which of the following goals can be found in an organisation's charter, annual report, public relations announcements or in public statements made by managers?

A)real goals
B)committed goals
C)comprehensive goals
D)stated goals
E)expanded goals

Question 25

An organisation's stated goals never conflict with what appear to be their real goals.

Question 26

Objectives are goals.

Question 27

Official statements of what an organisation says and what it wants its various stakeholders to believe are referred to as ________.

A)real goals
B)stated goals
C)committed goals
D)comprehensive goals
E)expanded goals

Question 28

Goals are the foundation of organisational planning.

Question 29

According to the textbook, ________ are documents that outline how goals are going to be met and which typically describe resource allocations, schedules and other necessary actions to accomplish the goals.

A)strategies
B)goals
C)plans
D)policies
E)procedures

Question 30

Real goals are official statements of what an organisation says its goals are.

Question 31

In order to be successful, an organisation should follow what advice concerning objectives?

A)Develop a single, well-designed goal.
B)A long-term vision of objectives is critical.
C)Organisations should have multiple objectives.
D)Obtain non-subjective opinions from consultants.
E)Changing objectives leads to employee dissatisfaction.

Question 32

Based on the information presented in the textbook, ________ are desired outcomes for individuals, groups or entire organisations.

A)strategies
B)goals
C)plans
D)policies
E)procedures

Question 33

Scenario-based questions: It's Academic
You are a Faculty Dean for a regional university and your university Vice Chancellor has asked you to develop a plan for the faculty.He wants a plan covering the next five years and he wants it to be as specific as possible yet not overly constraining and containing some flexibility.The Vice Chancellor states that he wants the plan to be accurate so as not to waste time and so you will be well positioned for the future.
Refer to It's Academic (Scenario).Concerning the impact of planning on organisational change, you need to tell your boss that planning has what kind of effect?

A)Planning forces managers to look at the present.
B)Planning forces managers to anticipate change.
C)Managers cannot really consider the impact of change.
D)Planning increases uncertainty.
E)Planning confuses management action in response to change.

Question 34

________ is often called the primary management function because it establishes the basis for all the other functions that managers perform.

A)Planning
B)Leading
C)Organising
D)Controlling
E)Persuading

Question 35

Scenario-based questions: It's Academic
You are a Faculty Dean for a regional university and your university Vice Chancellor has asked you to develop a plan for the faculty.He wants a plan covering the next five years and he wants it to be as specific as possible yet not overly constraining and containing some flexibility.The Vice Chancellor states that he wants the plan to be accurate so as not to waste time and so you will be well positioned for the future.
Refer to It's Academic (Scenario).Which of the following is NOT one of the purposes for which your boss asked you to develop a plan?

A)providing direction
B)reducing the impact of change
C)minimising waste
D)increasing redundancy
E)setting control standards

Question 36

Which of the following is the foundation of planning?

A)employees
B)goals
C)outcomes
D)computers
E)the planning department

Question 37

Which of the following is true concerning an organisation's stated objectives?

A)They issue identical objectives to all constituents.
B)Organisations typically have internal and external sets of objectives.
C)They may issue different objectives to stockholders, customers, employees and the public.
D)It is illegal to issue conflicting stated objectives.
E)Stated objectives are usually in line with short-term actions.

Question 38

Scenario-based questions: A Business Plan
Imagine that you are the owner of a small company that sells business equipment and computer hardware.You employ about 40 people.You know that the organisation needs to move in a different direction and you want to set some long-term goals for the company.You want to write something that will cover the next three years only, knowing that business needs change somewhat frequently.Your goal is to write something that provides direction, but does not contain extremely defined objectives.
Refer to A Business Plan (Scenario).What could be said about your plan if it turns out to be inaccurate?

A)It was a waste of time.
B)The end result is the only truly important result.
C)Inaccurate planning is of use for establishing direction.
D)The planning process has various benefits and can be valuable.
E)Inaccurate planning maximises wasted effort.

Question 39

________ are often conflicting and excessively influenced by what society believes organisations should do.

A)Real goals
B)Committed goals
C)Stated goals
D)Comprehensive goals
E)Expanded goals

Question 40

If you want to know what an organisation's real goals are, closely observe what members of the organisation actually do.

Question 41

In a short essay, define 'goals' and discuss the differences and conflicts that exist between real and stated goals.

Question 42

An organisation that states, 'People are our most valuable asset', and then proceeds to lay off 20 per cent of its workforce, has revealed its ________ objective.

A)real
B)imagined
C)fictional
D)human resource
E)unplanned

Question 43

Which of the following is an example of a traditional goal?

A)Increase sales by 5 per cent.
B)Be the market leader in the state.
C)Gain 10 per cent market share.
D)Achieve break-even costs by the end of next quarter.
E)Decrease labour costs to 38 per cent cost of goods sold.

Question 44

Which of the following is another term for an 'integrated network of objectives'?

A)strategic objectives
B)reality-based linkage
C)means-ends chain
D)operating systems connection
E)circular enhancement

Question 45

The central theme in traditional goal-setting has which of the following assumptions?

A)Front-line workers know their product.
B)Middle managers know what is best and serve as the liaison between upper management and front-line workers.
C)Objectives should be determined in a democratic process.
D)Top management has the 'big picture'.
E)Committees comprised of top management, middle management and front-line staff set the best objectives.

Question 46

Which of the following statements depicts the reality concerning stated and real organisational objectives?

A)They are usually identical.
B)They both reflect the official purposes of the organisation.
C)They are often quite different from each other.
D)Real objectives are based on what the audience wants to hear.
E)Stated objectives can be understood by observing member actions.

Question 47

What happens to traditional goals as they make their way down from top management to lower levels?

A)They lose clarity and unity.
B)They unite the workforce.
C)Lower-level managers must continually revise and correct them.
D)They purposely remain vague and nonspecific.
E)They become more broad and general.

Question 48

According to the textbook, those goals that an organisation actually pursues are called ________.

A)real goals
B)committed goals
C)stated goals
D)comprehensive goals
E)expanded goals

Question 49

Traditional goals set by top management tend to be specific and unambiguous.

Question 50

In a typical MBO program, successful achievement of objectives is reinforced by performance-based rewards.

Question 51

The traditional role of goals is to guide the control and direction set by the organisation's top managers.

Question 52

In the Management by Objectives (MBO)system ________.

A)objectives are determined by management
B)goals are only reviewed at the time of completion
C)goals are used as controls
D)progress is periodically reviewed
E)objectives are determined by subordinates and their supervisors

Question 53

A top-down chain is an integrated network of objectives.

Question 54

Management by Objectives consists of four elements: loose goals, participative decision making, an explicit time period and performance feedback.

Question 55

A management system in which specific performance goals are jointly determined by employees and their managers is known as ________.

A)management by objectives
B)means-ends chain
C)traditional goal setting
D)management by opinions
E)top-down management

Question 56

Management by Objectives (MBO)uses goals to control and motivate employees.

Question 57

Where in the organisational hierarchy are traditional goals determined?

A)front-line employees
B)team leaders
C)lower-level managers
D)middle managers
E)top managers

Question 58

The conflict in stated goals exists because organisations respond to a variety of ________.

A)external environments
B)stakeholders
C)governmental regulations
D)stockholders
E)risks

Question 59

What should a person do to understand what the real objectives of the organisation are?

A)observe organisational member actions
B)attend a stockholders' annual meeting
C)read the organisation's statement of purpose
D)read the organisation's annual report
E)watch television news reports

Question 60

Which of the following is NOT one of the four common elements of Management by Objectives (MBO)?

A)goal specificity
B)participative decision making
C)an explicit time period
D)a systems loop
E)performance feedback

Question 61

In a short essay, list and discuss six characteristics of well-designed goals.

Question 62

In a short essay, list and discuss the five steps in the goal-setting process.

Question 63

Scenario-based questions: The Dynamic Environment
Company EZ's business is technology-related and the environment is very dynamic.A group of shareholders at Company EZ has strongly suggested that the firm update its planning practices to include more participative decision making and greater involvement of employees.
Refer to The Dynamic Environment (Scenario).A major reason for involving employees in the planning processes is ________.

A)it is more effective in a dynamic environments
B)it communicates top management goals better
C)it involves employees in setting goals and they are then more likely to use the plan to direct and coordinate work
D)it promotes creativity
E)it focuses managers' attention on tomorrow's survival instead of today's competition

Question 64

An appeal of Management by Objectives (MBO)lies in its emphasis on employees working to accomplish goals which are ________.

A)companywide and realistic
B)effective and easy to measure
C)stated and confirmed
D)real and understandable
E)partly set by them

Question 65

As managers move up the organisational hierarchy, their planning role tends to become oriented with what type of planning?

A)strategic
B)directional
C)single use
D)operational
E)standing

Question 66

The commitment concept means that plans should extend far enough to meet those commitments made today.

Question 67

Scenario-based questions: Developing Plans
As manufacturing manager of a local manufacturer, you are interested in developing a new organisational plan.However, you are unsure about several factors.You are not sure who you should assign to the varying planning tasks and there are several other issues pending, such as the potential formation of a union for employees and rising interest rates.You also have to consider that you have contracts with large vendors that extend five years into the future and there has been enormous investment into overseas expansion scheduled to take place in the next four years.
Refer to Developing Plans (Scenario).For the most part, you should assign the operational planning activities to ________.

A)line staff
B)high-performing line staff
C)lower-level managers
D)middle managers
E)upper-level managers

Question 68

The ________ concept states that plans should extend far enough to see through current commitments.

A)commitment
B)formality
C)opportunity
D)SWOT
E)MBO

Question 69

Are strategic or operational plans needed? Does long-term planning make sense in all situations? These decisions are affected by three contingency variables.In a short essay, list the three planning contingency factors and illustrate how these factors influence planning.

Question 70

Scenario-based questions: The North Queensland Regional Planning Group
The North Queensland Regional Planning Group convened a group of stakeholders, including the Queensland Roads Board and the Queensland Local Government Department together with representatives of local governments in the region, who are interested in working together on improving arterial roads in the region.David Dahlstrom is the senior planner for the North Queensland Regional Planning Group.Mr Dahlstrom successfully obtained a technical assistance grant.The intent is to organise all the local governments in the region into an intergovernmental unit.All of the communities will share the same visioning processes of mission, objectives and tasks.Mr Dahlstrom is now charged with developing a strategic plan for this group, called the North Queensland regional transport advisory board.
Refer to The North Queensland Regional Planning Group (Scenario).First, Mr Dahlstrom must determine the goals he wants to achieve.To do so, he must follow a series of steps for goal setting.The first step in setting goals for this new group should be to ________.

A)prepare an environmental effects statement
B)formally establish the organisation's mission and review it
C)evaluate available resources
D)determine the goals individually and then ask for input from others
E)request input from others and then formulate specific goals

Question 71

Scenario-based questions: The North Queensland Regional Planning Group
The North Queensland Regional Planning Group convened a group of stakeholders, including the Queensland Roads Board and the Queensland Local Government Department together with representatives of local governments in the region, who are interested in working together on improving arterial roads in the region.David Dahlstrom is the senior planner for the North Queensland Regional Planning Group.Mr Dahlstrom successfully obtained a technical assistance grant.The intent is to organise all the local governments in the region into an intergovernmental unit.All of the communities will share the same visioning processes of mission, objectives and tasks.Mr Dahlstrom is now charged with developing a strategic plan for this group, called the North Queensland regional transport advisory board.
Refer to The North Queensland Regional Planning Group (Scenario).Mr Dahlstrom told the Board's members that the more current plans affect future commitments, the longer the time frame is for which managers must plan.This concept is also known as the ________.

A)first principle of planning
B)commitment concept
C)sustainability contingency
D)length of future commitments
E)degree of environmental uncertainty

Question 72

Scenario-based questions: The North Queensland Regional Planning Group
The North Queensland Regional Planning Group convened a group of stakeholders, including the Queensland Roads Board and the Queensland Local Government Department together with representatives of local governments in the region, who are interested in working together on improving arterial roads in the region.David Dahlstrom is the senior planner for the North Queensland Regional Planning Group.Mr Dahlstrom successfully obtained a technical assistance grant.The intent is to organise all the local governments in the region into an intergovernmental unit.All of the communities will share the same visioning processes of mission, objectives and tasks.Mr Dahlstrom is now charged with developing a strategic plan for this group, called the North Queensland regional transport advisory board.
Refer to The North Queensland Regional Planning Group (Scenario).Because of the intergovernmental nature of the North Queensland regional transport advisory board, Mr Dahlstrom's boss suggests that open-ended goals may be preferable as they offer greater flexibility.Mr Dahlstrom, a knowledgeable and experienced planner, tells her that ________.

A)a well-designed goal will also specify a time frame for accomplishment
B)a well-designed goal will also specify a quantifiable measure of accomplishment
C)although open-ended goals may seem preferable because of their flexibility, in fact, goals without a time frame make an organisation less flexible because you are never sure when you have met your goals
D)the group should just concentrate on defining a mission
E)a well-designed goal will not be challenging

Question 73

In a short essay, discuss 'traditional goal setting' and the problems associated with this type of planning.

Question 74

Generally, operational planning dominates the planning efforts of what level in the organisation?

A)front-line staff
B)senior front-line staff
C)lower-level managers
D)middle-level managers
E)upper-level managers

Question 75

Effective planning in dynamic environments means flattening the organisational hierarchy.

Question 76

Managers must be able to follow through with plans even if conditions change.

Question 77

Three contingency factors cited by the textbook that affect planning are level in the organisation, length of future commitments and ________.

A)risk aversion of management
B)employee satisfaction
C)level of productivity
D)educational level of managers
E)degree of environmental uncertainty

Question 78

Scenario-based questions: Developing Plans
As manufacturing manager of a local manufacturer, you are interested in developing a new organisational plan.However, you are unsure about several factors.You are not sure who you should assign to the varying planning tasks and there are several other issues pending, such as the potential formation of a union for employees and rising interest rates.You also have to consider that you have contracts with large vendors that extend five years into the future and there has been enormous investment into overseas expansion scheduled to take place in the next four years.
Refer to Developing Plans (Scenario).The fact that there are environmental uncertainties, such as the threat of unionisation and rising interest rates, means that the emphasis should be placed on ________.

A)the long term
B)lowering risk
C)flexibility
D)writing specific objectives
E)enhancing measurability of outcomes

Question 79

All of the following are mentioned in the textbook as characteristics of well-designed goals EXCEPT ________.

A)measurable and quantifiable
B)clear as to a time frame
C)written in terms of actions, rather than outcomes
D)communicated to all necessary organisational members
E)written down

Question 80

Scenario-based questions: Developing Plans
As manufacturing manager of a local manufacturer, you are interested in developing a new organisational plan.However, you are unsure about several factors.You are not sure who you should assign to the varying planning tasks and there are several other issues pending, such as the potential formation of a union for employees and rising interest rates.You also have to consider that you have contracts with large vendors that extend five years into the future and there has been enormous investment into overseas expansion scheduled to take place in the next four years.
Refer to Developing Plans (Scenario).You should probably assign yourself and other top executives to help develop the ________ plan.

A)operational
B)specific
C)overall
D)financial
E)strategic