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Chapter 7 Foundations of PlanningTrue/False QuestionsA MANAGERS DILEMMA1.Books and videos were the primary products of based on the company profile in “A Managers Dilemma.False (moderate)WHAT IS PLANNING?2.Organizational planning is concerned with how objectives are to be accomplished, not what is to be accomplished.False (easy)3.Organizational planning establishes coordinated effort.True (moderate)WHY DO MANAGERS PLAN?4.Research indicates that managers who plan always outperform managers who do not plan.False (moderate)5.Planning that proves inaccurate is a waste of managements time.False (easy)6.According to the text, research indicates that nonplanning organizations generally outperform planning organizations.False (moderate)7.It is a myth that planning reduces flexibility.True (difficult)HOW DO MANAGERS PLAN?8.Operational planning is usually accomplished by upper management.False (moderate)9.Plans that specify the details of achievement of the overall objectives are called operational plans.True (difficult)10.Directional plans have clearly defined objectives.False (moderate)11.Developing an acquisition plan after a recent takeover is an example of a single-use plan.True (difficult)12.Standing plans are created in response to programmed decisions that managers make and include policies, rules, and procedures.True (moderate)13.The greater the environmental certainty, the more plans need to be directional and emphasis placed on the short term.False (moderate)14.In a rapidly changing environment, well-defined and precisely developed action plans enhance organizational performance.False (moderate)15.Planning is a waste of time in a volatile environment.False (easy)16.The more the current plans affect future commitments, the longer the time frame for which managers should plan.True (difficult)17.The commitment concept means that plans should extend far enough to meet those commitments made today.True (moderate)18.One criticism of planning is that it creates too much flexibility.False (easy)19.Formal plans replace intuition and creativity in a well-managed firm.False (moderate)20.Objectives are goals.True (easy)21.Goals are the foundation of organizational planning.True (moderate)22.An organizations real goals are what they actually plan on accomplishing, rather than what they hope to accomplish.False (moderate)23.If you want to know what an organizations real goals are, closely observe what members of the organization actually do.True (moderate)24.Real goals are official statements of what an organization says its goals are.False (easy)25.The traditional role of goals is to guide the control and direction imposed by an organizations top managers.True (moderate)26.Traditional goals set by top management tend to be specific and unambiguous.False (moderate)27.A top-down chain is an integrated network of objectives.False (easy)28.Management by Objectives (MBO) uses goals to control and motivate employees.True (moderate)29.Management by Objectives consists of four elements: loose goals, participative decision-making, an explicit time period, and performance feedback.False (difficult)30.In a typical MBO program, successful achievement of objectives is reinforced by performance-based rewards.True (difficult)Multiple ChoiceA MANAGERS DILEMMA31.Which of the following best describes the challenge facing according to the company profile in “A Managers Dilemma?”a. persuading investors to initially invest in the companyb. deciding which products to sell on the companys websitec. determining what to do to keep the business growing (moderate)d. persuading investors to invest additional funds in the company32.According to the company profile in “A Managers Dilemma,” which of the following describes the primary products of ?a. automobilesb. high-tech productsc. books and videosd. hypo allergenic products (easy)WHAT IS PLANNING?33._ is a process that involves defining the organizations objectives or goals, establishing strategy, and developing a hierarchy of plans.a.Managingb.Informal planningc.Leadingd.MBOe.Planning (easy)34.Which of the following is not a part of the definition of organizational planning?a.defining the organizations goals and objectivesb.evaluating the organizations outcomes (moderate)c.developing a comprehensive hierarchy of plans to integrate and coordinate activitiesd.establishing an overall strategy for achieving the organizations goalse.it is concerned with both ends and means35.Formal planning involves which of the following aspects?a.developing general objectivesb.planning for up to one yearc.writing objectives (moderate)d.distributing the plan to all managerial employeese.carrying out the goals as each manager thinks is bestWHY DO MANAGERS PLAN?36.One purpose of planning is that it minimizes _ and _.a.cost; timeb.time; personnel needsc.waste; redundancy (difficult)d.time; wastee.mistakes; cost37.Plannings effect on managers is that it forces them to do which of the following?a.react to changeb.consider the impact of change (moderate)c.respond indiscriminatelyd.plan on overlapping different activitiese.develop bureaucratic response models38.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.39.The _ of the planning process contributes more to high performance than does the _ of planning.a.quality; implementationb.implementation; qualityc.quality; extent (difficult)d.extent; implementatione.implementation; extent40.Which of the following is a factor that constrains high performance in planning organizations?a.qualityb.extentc.implementationd.environment (moderate)rmality41.Environmental issues, such as government regulations and labor unions, tend to have what kind of effect on the value of planning on organizational performance?a.They tend to increase organizational value because they serve as screens for bad plans.b.There is no real effect.c.They have a positive effect on large organizations and a negative effect on small organizations.d.They decrease the organizational value by constraining managements options. (difficult)e.They have a positive effect in public institutions and a negative effect in private organizations.42.According to the text, organizations need at least _ of systematic formal planning before performance is impacted.a. oneb. twoc. threed. four (difficult)e. fiveHOW DO MANAGERS PLAN?43._ is often called the primary management function because it establishes the basis for all the other functions that managers perform.a. Planning (moderate)b. Leadingc. Organizingd. Controllinge. Persuading44.Based on the information presented in the text, _ are desired outcomes for individuals, groups, or entire organizations.a. strategiesb. goals (moderate)c. plansd. policiese. procedures45.Which of the following is the foundation of planning?a.employeesb.goals (easy)puterse.the planning department46.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. strategiesb. goalsc. plans (moderate)d. policiese. procedures47.In order to be successful, an organization should follow what advice concerning objectives?a.Develop a single, well-designed goal.b.A long-term vision of objectives is critical.c.Organizations should have multiple objectives. (moderate)d.Obtain non subjective opinions from consultants.e.Changing objectives leads to employee dissatisfaction.48.Official statements of what an organization says, and what it wants its various stakeholders to believe are referred to as _.a. real goals.b. stated goals (moderate)c. committed goalsd. comprehensive goalse. expanded goals49.According to the text, which of the following goals can be found in an organizations charter, annual report, public relations announcements, or in public statements made by managers?a. real goals.b. committed goalsc. comprehensive goalsd. stated goals (moderate)e. expanded goals50.Which of the following is true concerning an organizations 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.51._ are often conflicting and excessively influenced by what society believes organizations should do.a. Real goals.b. Committed goalsc. Stated goals (moderate)d. Comprehensive goalse. Expanded goals52.Which of the following statements depicts the reality concerning stated and real organizational objectives?a.They are usually identical.b.They both reflect the official purposes of the organization.c.They are often quite different from each other. (easy)d.Real objectives are based on what the audience wants to hear.e.Stated objectives can be understood by observing member actions.53.According to the text, those goals that an organization actually pursues are called _.a. Real goals. (moderate)b. Committed goalsc. Stated goals d. Comprehensive goalse. Expanded goals54.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 reports55.An organization that states, People are our most valuable asset, and then proceeds to lay off 20% of its work force, has revealed its _ objective.a.real (easy)b.imaginedc.fictionald.human resourcee.unplanned56.When we categorize plans as being strategic versus operational, we are describing them by their _.a.breadth. (moderate)b.specificity.c.frequency of use.d.depth.e.time frame.57.When we categorize plans as short-term versus long-term we are referring to their _.a.breadth.b.specificity.c.frequency of use.d.depth.e.time frame. (easy)58.When we categorize plans as being directional versus specific, we are categorizing them by _.a.breadth.b.specificity. (easy)c.frequency of use.d.depth.e.time frame.59.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.60.According to the text, _ can be described as long term, directional, and single use.a.operationalb.long-termc.strategic (easy)d.specifice.directional61.Based on the information presented in the text, _ are short term, specific, and standing.a.operational (moderate)b.long-termc.strategicd.specifice.directional62.Plans that apply to the entire organization, establish the organizations overall objectives, and seek to position the organization in terms of its environment are called _ plans.a.operationalb.long-termc.strategic (easy)d.specifice.directional63.Plans that specify the details of how the overall objectives are to be achieved are called _ plans.a.specificb.directionalc.long-termd.operational (easy)e.strategic64._ plans include the formulation of objectives, whereas _ plans assume the existence of objectives.a.Single-use; standingb.Directional; specificc.Long-term; short-termd.Strategic; operational (difficult)e.Informal; formal65.The three identified differences between strategic and operational plans are _.a.time frame, cost, and organizational age.b.cost, organizational age, and number of planners.c.scope, time frame, and inclusion of a known set of organizational objectives. (difficult)d.inclusion of a known set of organizational objectives, cost, and number of anizational age, cost, and scope.66.Which of the following types of plans tend to cover short periods such as monthly, weekly, and day-to-day?a.operational (easy)b.long-termc.strategic d.specifice.directional67.An organizational plan that has a 6-year time frame would be considered what type of plan?ermediatee.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.69.What type of plan covers less than one year?a.operationalb.directionalc.short-term (easy)d.long-terme.strategic70.According to the text, _ are plans that are clearly defined and which leave no room for interpretation.a.strategicb.single-usec.short-termd.specific (moderate)e.standing71.Compared to directional plans, what type of plan has clearly defined objectives?a.strategicb.single-usec.short-termd.specific (moderate)e.standing72.A state legislative plan that calls for a 2.45% increase in tobacco sales tax for the next 2 years would be considered what type of plan?a.Strategicb.Operationalc.Specific (moderate)d.Directionale.Standing73.Directional plans do which of the following?a.have clearly defined objectivesb.identify general guidelines (moderate)c.meet the needs of a unique situationd.last for 3-5 vide guidance for activities repeatedly performed in the organization74.According to the text, _ provide focus but do not lock managers into specific goals or courses of action.a.strategicb.single-usec.directional (moderate)d.specifice.standing75.The greater the environmental uncertainty, the more plans need to be _ and emphasis placed on the _.a.strategic; long-termb.single-use; short-termc.operational; long-termd.directional; short-term (moderate)e.standing; long-term76.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.77.A manager in the computer software industry should display what type of attitude concerning planning?a.She should remain fixed on set plans.b.She should be flexible. (difficult)c.She should focus on long-term plans.d.She should increase the focus on minute details.e.She should concentrate on operational plans.78.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-termc.directionald.standinge.strategic79.A small towns preparation for a visit by the President of the United States would be considered what type of plan?a.strategicb.directionalc.standingd.long-terme.single-use (moderate)80.Which of the following is true concerning standing plans?a.They provide guidance for activities repeatedly performed in the organization.b.They provide guidance for 1-3 years.c.They identify general guidelines. (moderate)d.They are specifically designed to meet the needs of a unique situation.e.They establish the organizations overall direction.81.A citys policy concerning skateboarding on downtown sidewalks providing guidance for police action would be considered what type of plan?a.standing (difficult)b.contingencyc.directionald.single-usee.strategic82.According to the text, _plans include policies, rules, and procedures.a.single-useb.standing (moderate)rmal83.A corporations sexual harassment policy is an example of a(n) _ plan.a.single-useb.standing (moderate)rmal84.Where in the organizational hierarchy are traditional goals determined?a.front-line employeesb.team leadersc.lower-level managersd.middle managerse.top managers (moderate)85.The central theme in traditional goal setting has which of the following assumptions?a.
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