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Chapter 7 – Foundations of Planning

True/False Questions

4. 9. 10. 12. 13. 22. 24. 36. 38. 45. 46.

Research indicates that managers who plan always outperform managers who do not plan. False (moderate)

Plans that specify the details of achievement of the overall objectives are called operational plans. True (difficult)

Directional plans have clearly defined objectives. False (moderate)

Standing plans are created in response to programmed decisions that managers make and include policies, rules, and procedures. True (moderate)

The greater the environmental certainty, the more plans need to be directional and emphasis placed on the short term.

False (moderate)

An organization's real goals are what they actually plan on accomplishing, rather than what they hope to accomplish.

False (moderate)

Real goals are official statements of what an organization says its goals are. False (easy)

One purpose of planning is that it minimizes ______________ and ______________. a. cost; time

b. time; personnel needs

c. waste; redundancy (difficult) d. time; waste e. mistakes; cost

What does the evidence suggest about organizations that plan compared to organizations that 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. Which of the following is the foundation of planning? a. employees b. goals (easy) c. outcomes d. computers

e. the planning department

According to the text, _____________ 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 (moderate) d. policies

Multiple Choice

e. procedures 50. 54. 59. 61. 67. 68. 71.

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 the public.

(moderate)

d. It is illegal to issue conflicting stated objectives.

e. Stated objectives are usually in line with short-term actions.

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 meeting c. read their statement of purpose d. read their annual report

e. watch television news reports

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.

Based on the information presented in the text, ______________ are short term, specific, and standing. a. operational (moderate) b. long-term c. strategic d. specific e. directional

An organizational plan that has a 6-year time frame would be considered what type of plan? a. operational b. short-term c. strategic d. intermediate

e. long-term (moderate)

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.

Compared to directional plans, what type of plan has clearly defined objectives? a. strategic b. single-use c. short-term

d. specific (moderate) e. standing

76. 78. 79. 81. 84. 89.

Planning accuracy with a high degree of environmental change tends to produce which of the 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.

A ______________ plan is a one-time plan designed to meet the needs of a unique situation and created in response to nonprogrammed decisions that managers make. a. single-use (easy) b. short-term c. directional d. standing e. strategic

A small town's preparation for a visit by the President of the United States would be considered what type of plan? a. strategic b. directional c. standing d. long-term

e. single-use (moderate)

A city's policy concerning skateboarding on downtown sidewalks providing guidance for police action would be considered what type of plan? a. standing (difficult) b. contingency c. directional d. single-use e. strategic

Where in the organizational hierarchy are traditional goals determined? a. front-line employees b. team leaders

c. lower-level managers d. middle managers

e. top managers (moderate)

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

a. management by objectives. (moderate) b. means-ends chain. c. traditional goal setting. d. management by opinions.

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 (difficult) e. performance feedback

Management By Objectives (MBO) can be described by which of the following statements? a. an autocratic system

91. 93.