Chapter 7 – Foundations of Planning
True/False Questions
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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 neceary actions to accomplish the goals.a.strategies
b.goals
c.plans(moderate)
d.policies Multiple Choice
e.procedures
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Which of the following is true concerning an organization\'s stated objectives? a.They iue identical objectives to all constituents.b.Organizations typically have internal and external sets of objectives.c.They may iue different objectives to stockholders, customers, employees, and the public.(moderate) d.It is illegal to iue 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
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89.results? a.Planning accuracy is likely.b.Planning accuracy becomes much more important.c.Planning accuracy becomes le important.d.Planning accuracy is le 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.
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 system91.93.
105.d.e.both a \"top down\" and a \"bottom up\" system(difficult) a static system According to the boxed feature, “Managing in an E-Busine World,” probably the biggest change for
planning in e-busine 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.
Eay Questions
122.In a short eay, list and discu the four reasons for planning.
Answer
a.Planning establishes coordinated effort.It gives direction to managers and nonmanagers alike.When
employees know where the organization or work unit are going and what they must contribute to reach goals, they can coordinate their activities, cooperate with each other, and do what it takes to accomplish those goals.Without planning, departments and individuals might be working at cro-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 also clarifies the consequences of actions managers might take in response to change.Even though planning can’t eliminate change, managers plan in order to anticipate changes and develop the most effective response to them.
c.Planning reduces overlapping and wasteful activities.When work activities are coordinated around
established plans, wasted time and resources and redundancy can be 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 managers are unsure of what
they are trying to accomplish, they will be unable to determine whether or not the goal has actually been achieved.In planning, goals and plans are developed.Then, through controlling, actual performance is compared against the goals, significant deviations are identified, and neceary corrective action is taken.Without planning, there would be no way to control.
(moderate)
127.In a short eay, list and discu 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, the goal 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 le 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 regardle 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 down goals may seem too time consuming, the proce 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 eay, list and discu the five steps in the goal-setting proce.
Answer
a.Step 1:Review the organization’s miion, the purpose of the organization.These broad statements of
what the organization’s purpose is and what it hopes to accomplish provide an overall guide to what organizational members think is important.It’s important to review these statements before writing goals because the goals should reflect what the miion statement says.
b.Step 2:Evaluate available resources.A manager doesn’t want to set goals that are impoible to
achieve given the available resources.Even though goals should be challenging, they should be realistic.If the resources a manager has to work with doesn’t allow for the achievement of that goal no matter how had the manager tries 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 goals reflect desired
outcomes and should be congruent with the organizational miion and 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 goals visible 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 is ready to develop plans for pursuing the goals.
(difficult)
129.In a short eay, list and discu the three contingency factors that affect planning.
Answer
a.Level in the organization – for the most part, operational planning dominates managers’ planning
efforts at lower levels.At higher organizational levels, the planning 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 and amend 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 future commitments, 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)
