Deck 9: Foundations of Planning

Question 1

In organizations where formal planning did not lead to higher performance,the cause was often ________.

A)forces in the external environment
B)poor implementation of plans by management
C)lack of support by employees
D)poor communication of plan objectives

Answer 1

A

Question 2

Written and shared goals of formal planning ________.

A)are redundant in today's uncertain business climate
B)reduce ambiguity in what needs to be done
C)allow employees to adjust goals when required
D)create too many questions about responsibilities across departments

Answer 2

B

Question 3

Planning reduces ________ by forcing managers to look ahead and anticipate ________.

A)the need for controls; risk levels
B)bureaucracy; organizational growth
C)risk; economic and competitive conditions
D)uncertainty; change

Answer 3

D

Question 4

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

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

Question 5

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 6

Planning establishes goals or standards that eliminate the need for controls.

Question 7

Planning reduces overlapping and wasteful activities.

Question 8

Which of the following statements about planning is TRUE?

A)Planning is concerned with means but not ends.
B)Planning is concerned with ends but not means.
C)Planning is concerned with both means and ends.
D)Planning establishes goals or standards that eliminate the need for controls.

Question 9

The quality of the planning process and the appropriate implementation of the plans likely ________.

A)don't contribute to high performance nearly as much as the extent of planning
B)contribute more to high performance than does the extent of planning
C)contribute less to financial performance than does the extent of planning
D)have little impact on overall organizational performance

Question 10

Planning can't eliminate change.Managers plan in order to ________.

A)maximize the overlap in work activities
B)anticipate changes and develop the most effective response
C)reduce or eliminate the need for controls
D)eliminate uncertainty

Question 11

Governmental regulations,powerful labour unions,and other critical environmental forces constrain managers' options and ________.

A)reduce the uncertainty associated with formal planning
B)neutralize the impact of planning on an organization's performance
C)don't affect the impact of planning on an organization's performance
D)reduce the impact of planning on an organization's performance

Question 12

Planning is often called the primary management function because it ________.

A)creates a unified vision for organizational members to work toward
B)establishes the basis for all the other management functions
C)sets the tone for the organization's culture
D)is the most important management function overall

Question 13

Planning reduces uncertainty regarding current events but often leaves rule-bound managers unable to anticipate change and develop appropriate responses to future events.

Question 14

Formal planning involves which of the following aspects?

A)planning for an unspecified period of time
B)focusing on means but not ends
C)communicating the plan to managers only
D)writing achievable goals

Question 15

The primary management function that Tyler and the vice-presidents have been performing during the last couple of months is ________.

A)leading
B)planning
C)organizing
D)controlling

Question 16

Generally speaking,formal planning is associated with ________.

A)higher costs
B)higher waste of time
C)shorter time frames
D)higher profits

Question 17

Planning is concerned both with ends (what is to be done)and means (how it is to be done).

Question 18

Planning is not necessary to carry out organizational goals as long as strong controls are in place.

Question 19

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

A)generate higher profits
B)anticipate and respond to change
C)eliminate uncertainty
D)work at cross purposes

Question 20

The term planning is used to describe any ideas developed by employees of an organization.

Question 21

Plans that specify the details of how the overall goals are to be achieved are called ________ plans.

A)operational
B)directional
C)strategic
D)standing

Question 22

Goals are different from plans because ________.

A)goals describe financial objectives,and plans describe objectives related to social responsibility
B)goals are important only for small companies,and plans are important only for large companies
C)goals are desired outcomes,and plans describe how those outcomes will be accomplished
D)goals are set by lower level managers,and plans are set by the executives

Question 23

Plans that apply to the entire organization,establish the organization's overall goals,and seek to position the organization in terms of its environment are called ________ plans.

A)operational
B)strategic
C)single-use
D)standing

Question 24

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

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

Question 25

Robert Downs,owner of a new community newspaper in his home town has set the following goal for his company: "To be a champion for free speech and for the development of the community." This goal constitutes the ________ goal of the company.

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

Question 26

Research studies have conclusively proven that planning organizations always outperform non-planning organizations.

Question 27

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

A)organizational members' actions
B)mission statement
C)stock valuation
D)employee satisfaction

Question 28

Two types of plans that are differentiated by their breadth of application are ________.

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

Question 29

Which of the following is a common way to classify an organization's plans?

A)quantifiability
B)flexibility
C)frequency of use
D)attainability

Question 30

The most popular ways to describe organization's plans are by their breadth,time frame,________.

A)depth,and urgency
B)frequency of use,and urgency
C)specificity,and frequency of use
D)flexibility,and attainability

Question 31

Goals provide the direction for all management decisions and form the ________.

A)basis for profit projections to satisfy shareholders and other external stakeholders
B)desired outcomes that the organizational members will likely achieve
C)criteria against which actual work accomplishments can be measured
D)foundation for all other management functions

Question 32

Formal planning is associated with higher profits and higher return on assets.

Question 33

Studies have found that the quality of the planning process and the appropriate implementation of plans likely contribute more to high performance than does the extent of planning.

Question 34

Plans are documents that outline ________.

A)which department has what responsibilities
B)what materials and production processes are required
C)how much capital is required
D)how goals are going to be met

Question 35

Strategic plans tend to cover a longer period of time than operational goals and also ________.

A)deal with more urgent concerns
B)cover the financial projections of the planning period
C)cover a broader view of the organization
D)include an estimate of the profits that shareholders can anticipate as dividends

Question 36

When making editorial decisions for his newspaper,the owner/editor mostly picks issues that are in line with his political beliefs and those that his advertisers approve of despite his publicly stated goal "to be a champion for free speech and for the development of the community." This indicates that ________.

A)the company's strategic goals do not leave any room for interpretation
B)the company's stated goals are not its real goals
C)the company's goals are directional in nature
D)the company's financial goals derive from its strategic goals

Question 37

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)long-term goals differ from short-term goals
B)an organizations stated goals are not necessarily its real goals
C)a company's real goals are derived from its mission statement
D)plans made by executives focus on operations

Question 38

External environment has little or no impact on the formal planning process.

Question 39

In a short essay,explain and discuss in detail the four reasons for planning.

Question 40

Williamson is the owner of a small company that sells corporate gifts through an online store.Business has slowed down in recent months and he realizes that the organization must move in a different direction if it is to survive.He has reset some of the company's overall goals and wants to develop a plan to achieve those goals.He is anticipating the business environment to be volatile for the next few years.Considering the above information,it can be determined that his plan must be ________.

A)operational,directional,and rigid
B)informal,unwritten,and flexible
C)strategic,general,and operational
D)strategic,directional,and flexible

Question 41

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

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

Question 42

Which of the following is TRUE concerning standing plans?

A)They provide guidance for activities repeatedly performed in the organization.
B)They specify general guidelines.
C)They are specifically designed to meet the needs of a unique situation.
D)They are more flexible than directional plans.

Question 43

Which type of plan is flexible and provides general guidelines?

A)strategic
B)directional
C)operational
D)specific

Question 44

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

A)retail chain's plan to counter the entry of a new competitor
B)plan developed to address an unanticipated surge in demand
C)fire escape policy establishing practices to be followed in an emergency
D)plan for moving into new facilities

Question 45

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

A)Goal development
B)Strategic planning
C)Operational planning
D)Directional planning

Question 46

Directional plans provide ________,while specific plans provide ________.

A)clarity; flexibility
B)flexibility; clarity
C)urgency; flexibility
D)specificity; urgency

Question 47

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

A)a plan developed to implement new environmental regulations
B)the procedure to be followed for firing low-performing employees
C)a plan developed to ensure worker safety at the company's facilities
D)a procedure to deal with unhappy customers

Question 48

To make his business successful,Robert will first have to develop a(n)________ plan that establishes the company's overall goals and positions it in terms of its environment.

A)operational
B)specific
C)strategic
D)standing

Question 49

Which of the following types of plans dominates managers' planning efforts at lower levels of the organization?

A)single use
B)operational
C)long term
D)directional

Question 50

To ensure that the objectives are clearly defined and do not leave room for interpretation,he will have to develop ________ plans.

A)flexible
B)specific
C)directional
D)strategic

Question 51

Which of the following types of plans dominates managers' planning efforts at upper levels of the organization?

A)strategic
B)standing
C)operational
D)specific

Question 52

A(n)________ plan is a plan specifically designed to meet the needs of a unique situation.

A)strategic
B)operational
C)single-use
D)standing

Question 53

To clarify how the overall goals are to be achieved,Robert will need to develop ________ plans.

A)operational
B)long-term
C)directional
D)strategic

Question 54

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

A)single-use
B)directional
C)standing
D)specific

Question 55

When uncertainty is high and managers must be flexible,which type of plan is most preferable?

A)long term
B)specific
C)standing
D)directional

Question 56

Which type of plan is ongoing and provides guidance for activities performed repeatedly?

A)flexible
B)directional
C)strategic
D)standing

Question 57

When plans are categorized as single use versus standing,they are being differentiated by ________.

A)breadth
B)specificity
C)frequency of use
D)time frame

Question 58

To provide the new programmers and analysts with general guidelines about production goals and desired efficiencies,he will have to develop ________ plans.

A)operational
B)specific
C)directional
D)multi-purpose

Question 59

A city's policy concerning skateboarding on downtown sidewalks that provides guidance for police action would be considered what type of plan?

A)standing
B)contingency
C)directional
D)strategic

Question 60

A government plan that calls for a 2.45 percent increase in tobacco sales tax for the next three years would be considered what type of plan?

A)strategic
B)operational
C)specific
D)short term

Question 61

Robert's plan to employ five programmers and two analysts within his first year of operation is best described as a ________ plan.

A)short-term
B)directional
C)strategic
D)single-use

Question 62

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

Question 63

Tyler's goal for each store to sell at least $900 per square metre per day has some of the characteristics of a well-designed goal.For example,it is measurable and quantifiable.What else might Tyler do to improve the design of this goal?

A)specify a flexible time frame
B)ensure that the goal is challenging but attainable
C)write the goal in terms of actions instead of outcomes
D)communicate this goal to every single employee in the organization

Question 64

Standing plans create guidance for regularly occurring activities and events.

Question 65

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

A)directional plan
B)specific plan
C)operational goal
D)interim goal

Question 66

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

Question 67

Directional plans have clearly defined objectives.

Question 68

Uncertainty about the impact of new teaching technologies and shifting program demand suggests that the plan should be more ________.

A)specific
B)directional
C)focused
D)objective

Question 69

The plan to open 20 to 30 stores over the next three years is ________.

A)directional
B)specific
C)short term
D)multi-purpose

Question 70

Operational plans specify the details of how the overall goals are to be achieved.

Question 71

Real goals are goals that an organization actually pursues.

Question 72

The recruitment policy to hire sales personnel who are friendly and well-groomed is a ________ plan.

A)short-term
B)specific
C)single-use
D)standing

Question 73

Since Rachel's plan will apply to the entire college,it is best described as a(n)________ plan.

A)operational
B)standing
C)short term
D)strategic

Question 74

Developing a plan to integrate two companies after a corporate merger is an example of a single-use plan.

Question 75

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

Question 76

Organizations real goals and stated goals are the same.

Question 77

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

Question 78

The statement that each store should have sales equal to or greater than $900 per square metre per day is an example of ________.

A)a standing plan
B)a directional plan
C)a goal
D)management by objectives

Question 79

Most organizational goals are either strategic or financial.

Question 80

The president's instructions to Rachel illustrate the tradeoff between the ________ of specific plans versus the ________ of directional plans.

A)longer time frames; higher specificity
B)wider breadth; shorter time frames
C)increased clarity; higher flexibility
D)urgency; reduced flexibility