Chapter 7 – Foundations of PlanningTrue/False Questions4. Research indicates that managers who plan always outperform managers who do not plan.False (moderate)9. Plans that specify the details of achievement of the overall objectives are calledoperational plans.True (difficult)10. Directional plans have clearly defined objectives.False (moderate)12. Standing plans are created in response to programmed decisions that managers make andinclude policies, rules, and procedures.True (moderate)13. The greater the environmental certainty, the more plans need to be directional andemphasis placed on the short term.False (moderate)22. An organization's real goals are what they actually plan on accomplishing, rather thanwhat they hope to accomplish.False (moderate)24. Real goals are official statements of what an organization says its goals are.False (easy)Multiple Choice36. One purpose of planning is that it minimizes ______________ and ______________.a. cost; timeb. time; personnel needsc. waste; redundancy (difficult)d. time; wastee. mistakes; cost38. What does the evidence suggest about organizations that plan compared to organizationsthat do not plan?a. Planning organizations always outperform nonplanning organizations.b. Nonplanning organizations always outperform planning organizations.c. Planning organizations generally outperform nonplanning organizations (easy)d. Nonplanning organizations generally outperform planning organizations.e. They generally perform at about the same level.45. Which of the following is the foundation of planning?a. employeesb. goals (easy)c. outcomesd. computerse. the planning department46. According to the text, _____________ are documents that outline how goals are going tobe met and which typically describe resource allocations, schedules, and other necessary actions to accomplish the goals.a.strategiesb.goalsc.plans (moderate)d.policiese.procedures50. Which of the following is true concerning an organization's stated objectives?a. They issue identical objectives to all constituents.b. Organizations typically have internal and external sets of objectives.c.They may issue different objectives to stockholders, customers, employees, and thepublic.(moderate)d. It is illegal to issue conflicting stated objectives.e. Stated objectives are usually in line with short-term actions.54. What should a person do to understand what are the real objectives of the organization?a. observe organizational member actions (moderate)b. attend a stockholders annual meetingc. read their statement of purposed. read their annual reporte. watch television news reports59. When we categorize plans as being single-use versus standing, we categorize them by______________.a. breadth.b. specificity.c. frequency of use. (easy)d. depth.e. time frame.61. Based on the information presented in the text, ______________ are short term,specific, and standing.a. operational (moderate)b. long-termc. strategicd. specifice. directional67. An organizational plan that has a 6-year time frame would be considered what type ofplan?a. operationalb. short-termc. strategicd. intermediatee. long-term (moderate)68. Strategic plans tend to include a time period of usually ______________.a. 1 year.b. 1-3 years.c. 3 years or more. (moderate)d. 5 years or more.e. at least 10 years.71. Compared to directional plans, what type of plan has clearly defined objectives?a. strategicb. single-usec. short-termd. specific (moderate)e. standing76.Planning accuracy with a high degree of environmental change tends to produce which ofthe following results?a. Planning accuracy is likely.b. Planning accuracy becomes much more important.c. Planning accuracy becomes less important.d. Planning accuracy is less likely. (moderate)e. Planning accuracy occurs in the long-run.78. A ______________ plan is a one-time plan designed to meet the needs of a uniquesituation and created in response to nonprogrammed decisions that managers make.a. single-use (easy)b. short-termc. directionald. standinge. strategic79. A small town's preparation for a visit by the President of the United States would beconsidered what type of plan?a. strategicb. directionalc. standingd. long-terme. single-use (moderate)81. A city's policy concerning skateboarding on downtown sidewalks providing guidance forpolice action would be considered what type of plan?a. standing (difficult)b. contingencyc. directionald. single-usee. strategic84. Where in the organizational hierarchy are traditional goals determined?a. front-line employeesb. team leadersc. lower-level managersd. middle managerse. top managers (moderate)89. A management system in which specific performance goals are jointly determined byemployees and their managers is known as ______________.a.management by objectives. (moderate)b.means-ends chain.c.traditional goal setting.d.management by opinions.91. Which of the following is not one of the four common elements of Management ByObjectives (MBO)?a. goal specificityb. participative decision-makingc. an explicit time periodd. a systems loop (difficult)e. performance feedback93. Management By Objectives (MBO) can be described by which of the following statements?a. an autocratic systemb. a "bottom up" systemc. a "top down" systemd. both a "top down" and a "bottom up" system (difficult)e. a static system105. According to the boxed feature, “Managing in an E-Business World,” probably the biggest change for planning in e-business is that ______________.a.the environment is more stable.b.customers are calling the shots. (moderate)c.employees are making the demands.d.only a few competitors exist.Essay Questions122. In a short essay, list and discuss the four reasons for planning.Answera.Planning establishes coordinated effort. It gives direction to managers andnonmanagers alike. When employees know where the organization or work unit aregoing and what they must contribute to reach goals, they can coordinate theiractivities, cooperate with each other, and do what it takes to accomplish thosegoals. Without planning, departments and individuals might be working at cross-purposes, preventing the organization from moving efficiently toward its goals.b.Planning reduces uncertainty by forcing managers to look ahead, anticipate change,consider the impact of change, and develop appropriate responses. It alsoclarifies the consequences of actions managers might take in response to change.Even though planning can’t eliminate change, managers plan in order to anticipatechanges and develop the most effective response to them.c.Planning reduces overlapping and wasteful activities.When work activities arecoordinated around established plans, wasted time and resources and redundancy canbe minimized. Furthermore, when means and ends are made clear through planning,inefficiencies become obvious and can be corrected or eliminated.d.Planning establishes goals or standards that are used in controlling. If managersare unsure of what they are trying to accomplish, they will be unable to determinewhether or not the goal has actually been achieved. In planning, goals and plansare developed. Then, through controlling, actual performance is compared againstthe goals, significant deviations are identified, and necessary corrective actionis taken. Without planning, there would be no way to control.(moderate)127. In a short essay, list and discuss five characteristics of well-defined goals.Answer(1) A well-designed goal should be written in terms of outcomes rather than actions.The desired end result is the most important element of any goal and, therefore, thegoal should be written to reflect this. (2) Next, a goal should be measurable and quantifiable. It’s much easier to determine if a goal has been met if it’s measurable. In line with specifying a quantifiable measure of accomplishment, (3) a well-designed goal should also be clear as to a time frame. Although open-ended goals may seem preferable because of their supposed flexibility, in fact, goals without a time frame make an organization less flexible because a manager is never sure when the goal has been met or when he or she should call it quits because the goal will never be met regardless of how long he or she works at it. (4) Next a well-designed goal should be challenging but attainable. Goals that are too easy to accomplish are not motivating and neither are goals that are not attainable even with exceptional effort.(5) Next, well-designed goals should be written down. Although actually writing downgoals may seem too time consuming, the process of writing the goals forces people to think them through. In addition, the written goals become visible and tangible evidence of the importance of working toward something. (6) Finally, well-designed goals are communicated to all organizational members who need to know the goals.Making people aware of the goals ensures that they’re “on the same page” and working in ways to ensure the accomplishment of the organizational goals.(moderate)128. In a short essay, list and discuss the five steps in the goal-setting process.Answera.Step 1: Review the organization’s mission, the purpose of the organization.These broad statements of what the organization’s purpose is and what it hopes toaccomplish provide an overall guide to what organizational members think isimportant. It’s important to review these statements before writing goals becausethe goals should reflect what the mission statement says.b.Step 2: Evaluate available resources. A manager doesn’t want to set goals thatare impossible to achieve given the available resources. Even though goals shouldbe challenging, they should be realistic. If the resources a manager has to workwith doesn’t allow for the achievement of that goal no matter how had the managertries of how much effort is exerted, that goal shouldn’t be set.c.Step 3: Determine individually, or with input from others, the goals. These goalsreflect desired outcomes and should be congruent with the organizational missionand goals in other organizational areas. These goals should be measurable,specific, and include a time frame for accomplishment.d.Step 4: Write down the goals and communicate them to all who need to know.Writing goals down forces people to think them through and also makes those goalsvisible and tangible evidence of the importance of working toward something.e.Step 5: Review results and whether goals are being met. Make changes, as needed.Once the goals have been established, written down, and communicated, a manager isready to develop plans for pursuing the goals.(difficult)129. In a short essay, list and discuss the three contingency factors that affect planning.Answera.Level in the organization–for the most part, operational planning dominatesmanagers’ planning efforts at lower levels. At higher organizational levels, theplanning becomes more strategy oriented.b.Degree of environmental uncertainty–when environmental uncertainty is high,plans should be specific, but flexible. Managers must be prepared to reword andamend plans as they’re implemented. At times, managers may even have to abandon their plans.c.Length of future commitments –the more that current plans affect futurecommitments, the longer the time frame for which managers should plan. This commitment concept means that plans should extend far enough to meet those commitments made when the plans were developed. Planning for too long or for too short a time period is inefficient and ineffective.(moderate)。
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