Complete Test Bank 7e Ch.5 Plans And Planning Techniques

Exploring Management, 7e (Schermerhorn)

Chapter 5 Plans and Planning Techniques

1) Which of the following is NOT one of the four functions of management?

A) Planning

B) Controlling

C) Organizing

D) Recruiting

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is one of the four functions of management.

AACSB: Analytic

2) Which of the following refers to the process of setting goals and objectives and determining how to best accomplish them?

A) Organizing

B) Planning

C) Leading

D) Controlling

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

3) Planning includes ________.

A) allocating and arranging resources to accomplish tasks

B) guiding the efforts of human resources to ensure high levels of task accomplishment

C) setting performance objectives and determining how to accomplish them

D) monitoring task accomplishments and taking necessary corrective action

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

4) ________ are specific results that one wishes to achieve.

A) Measurements

B) Plans

C) Objectives

D) End points

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

5) Allocating and arranging resources in order to accomplish tasks is called ________.

A) controlling

B) planning

C) leading

D) organizing

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is one of the four functions of management.

AACSB: Analytic

6) Guiding the efforts of employees to ensure high levels of task accomplishment is called ________.

A) planning

B) organizing

C) leading

D) controlling

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is one of the four functions of management.

AACSB: Analytic

7) Sonya's primary responsibilities include the process of monitoring task accomplishments and taking corrective action in her department. Sonya is mainly involved in the ________ function of management.

A) controlling

B) planning

C) leading

D) organizing

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is one of the four functions of management.

AACSB: Analytic

8) The first step in the planning process involves ________.

A) getting the mundane, trivial things planned first

B) focusing on easy goals to build momentum

C) making a plan and describe what must be done to accomplish it

D) defining your objectives and knowing where you want to go

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

9) Which of the following is the fourth step in the planning process?

A) Implementing a plan

B) Making a plan

C) Defining objectives

D) Developing premises about future conditions

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

10) Alia, the manager of a pet store, notices that most of the goods that come to her store are packed in high-quality cardboard boxes which are later discarded. She comes up with a plan and instructs her employees to use the cardboard boxes for making scratching boards for cats. She then sells the scratching boards at a price much lower than the other branded versions available in the market. Which of the following describes Alia's planning?

A) Action oriented

B) Priority oriented

C) Advantage oriented

D) Change oriented

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Reflective Thinking

11) A toilet paper plant is tasked with doubling its production rate. This is a ________ objective.

A) middle management

B) senior management

C) team leader

D) top management

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves coordination and control.

AACSB: Analytic

12) A company seeks to have 100% on-time production of error-free products in its manufacturing division. This is a ________ objective.

A) middle management

B) senior management

C) team leader

D) top management

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves coordination and control.

AACSB: Analytic

13) A(n) ________ is a statement of intended means for accomplishing objectives.

A) plan

B) schedule

C) objective

D) idea

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

14) Which of the following refers to the process by which one establishes lower-level objectives in order to meet higher-level objectives?

A) Objective analysis

B) Strategic analysis

C) A hierarchy of objectives

D) A chain of command

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves coordination and control.

AACSB: Analytic

15) Objectives are ________.

A) specific results that one wants to achieve

B) intended means for accomplishing plans

C) the processes used to create plans

D) easy to attain plans

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

16) Which of the following is NOT an advantage that planning offers?

A) Ensuring success

B) Helping us to sharpen our focus

C) Increasing our flexibility

D) Avoiding complacency

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves focus and action orientation.

AACSB: Analytic

17) A(n) ________ sets the stage for controlling in the management process; it is hard to exercise control if you have not set objectives.

A) good organization

B) good plan

C) inspired workforce

D) planning fallacy

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves coordination and control.

AACSB: Analytic

18) Plans that cover a year or less are called ________ plans.

A) medium-length

B) strategic-growth

C) short-range

D) long-term

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use short-range and long-range plans.

AACSB: Analytic

19) Plans that usually cover three years or more are called ________ plans.

A) medium-length

B) operational

C) short-term

D) long-range

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use short-range and long-range plans.

AACSB: Analytic

20) A(n) ________ clarifies the purpose of an organization and expresses what it hopes to be in the future.

A) budget

B) vision

C) policy

D) procedure

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

21) Plans that identify the long-term direction for an organization, including a vision of what and where the organization wants to be in the longer-term, are called ________ plans.

A) extended

B) operational

C) strategic

D) stretch

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

22) Management researcher Elliot Jaques believes that most people work comfortably with ________ time spans as planning horizons.

A) one-week

B) three-month

C) five-year

D) ten-year

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use short-range and long-range plans.

AACSB: Analytic

23) Plans that define the various short-term activities needed to implement strategic plans are called ________ plans.

A) strategic

B) business

C) operational

D) long-term

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

24) A plan covering the production activities of an organization for three months would be an example of a(n) ________ plan.

A) stretch

B) functional

C) strategic

D) recovery

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

25) All of the following are functional plans EXCEPT ________.

A) production plans

B) marketing plans

C) human resources plans

D) strategic plans

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

26) Plans that specifically identify how different parts of an organization will contribute to accomplishing strategic plans are called ________ plans.

A) strategic

B) ethical

C) financial

D) functional

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

27) Clara has been working as a waitress in a local cafe for 3 years. She had always dreamt of opening up her own cafe. On the death of her grandmother, she finds out that her grandmother has left her $15,000. She plans to open a new cafe with the money and hires a professional team to design her cafe's layout. Clara is currently engaged in developing the ________ plans for the cafe.

A) financial

B) facilities

C) marketing

D) production

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Reflective Thinking

28) Tim places an online order for a smartphone. Instead, he is shipped a dishwashing liquid from a brand named Bling by the seller. Tim posts this incident on a social networking site and it is soon picked up by the media. Richard, the sales manager of Bling, hears about this incident and plans to use it as an opportunity for creating brand awareness of Bling products. Accordingly, he makes arrangements to send Tim the smartphone that he had originally ordered along with two more bottles of Bling dishwashing liquid. When this news reaches the media, people applaud Bling's gesture and Richard achieves his goal of creating brand awareness. Richard used a ________ plan in the scenario.

A) financial

B) facilities

C) tactical

D) production

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Reflective Thinking

29) A ________ communicates broad guidelines for employees to use when making decisions and taking actions.

A) policy

B) project plan

C) procedure

D) budget

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Organizational policies and procedures are plans.

AACSB: Analytic

30) ________ plans deal with the methods and technology needed by people in their work.

A) Financial

B) Facilities

C) Production

D) Marketing

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

31) Which of the following terms precisely describes specific actions to take in specific situations?

A) Policy

B) Budget

C) Long-term plan

D) Procedure

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Organizational policies and procedures are plans.

AACSB: Analytic

32) At your university, it is required that all students are expected to follow the guidelines concerning sexual harassment. This is an example of a ________.

A) policy

B) rule

C) plan

D) law

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Organizational policies and procedures are plans.

AACSB: Analytic

33) A company poster lists instructions to be followed in case of a fire alarm. This is an example of a(n) ________.

A) policy

B) directive

C) operating plan

D) procedure

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Organizational policies and procedures are plans.

AACSB: Reflective Thinking

34) A plan that commits resources to projects or activities is called a ________.

A) strategy

B) vision

C) policy

D) budget

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

35) A(n) ________ budget allocates resources as if each budget was brand new.

A) nonmonetary

B) fixed

C) operating

D) zero-based

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

36) A ________ budget allows resource allocations to vary with the level of activity.

A) nonmonetary

B) flexible

C) fixed

D) zero-based

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

37) Sally, a manager at Purple Inc., has just been told that the funds which were left unused in the previous year's budget will not carry over into the current year. Thus, Sally will most likely have to use a ________ budget.

A) operating

B) flexible

C) fixed

D) zero-based

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Reflective Thinking

38) A budget that allocates a specific amount of resources for a specific purpose is called a ________ budget.

A) operating

B) flexible

C) fixed

D) zero-based

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

39) A budget that compares sales or revenues against expenses is called a(n) ________ budget.

A) operating

B) flexible

C) fixed

D) zero-based

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

40) Fen works for the accounting department of Argon Corp. She has just been told that she needs to develop a budget to spend $50,000 dollars in the next 12 months. Fen has been asked to create a(n) ________ budget.

A) operating

B) flexible

C) fixed

D) zero-based

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Reflective Thinking

41) Sally, the general manager at Trinkets Inc., has asked the accounting department to prepare a cash flow versus expenditure plan for the next year. Sally is asking for a ________ budget.

A) financial

B) flexible

C) fixed

D) zero-based

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Reflective Thinking

42) The process of predicting what will happen in the future is called ________.

A) contingency planning

B) scenario planning

C) forecasting

D) benchmarking

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Forecasting tries to predict the future.

AACSB: Analytic

43) Qualitative approaches to forecasting generally use ________.

A) statistical analysis

B) mathematical models

C) expert opinions

D) historical data and surveys

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Forecasting tries to predict the future.

AACSB: Analytic

44) Wang has been appointed as the new CEO of Zorv Inc., a multinational computer technology company. While formulating a new plan for the company under his management, Wang uses mathematical models and statistical analysis of past data and surveys to predict potential problems and opportunities in the near future. Wang's method of predicting the future best reflects ________ forecasting.

A) scenario

B) contingency

C) quantitative

D) qualitative

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Forecasting tries to predict the future.

AACSB: Reflective Thinking

45) Which of the following refers to the process of developing alternative plans in anticipation of having problems with implementing the existing plan?

A) Contingency planning

B) Forecasting

C) Scenario planning

D) Budgeting

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

AACSB: Analytic

46) Trynx Inc., a bicycle manufacturing company, is set to launch a new bicycle with gears. Yash, the CEO of Trynx, asks the sales manager to come up with an alternative plan in case the new product fails in the market. Yash also asks the production manager to come with an alternative plan in case the new product's demand increases beyond the production capacity. Yash has asked the managers to engage in ________ planning.

A) scenario

B) backup

C) resource

D) contingency

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

AACSB: Reflective Thinking

47) The president of Virtual Products LLC is concerned about the next year's economic outlook. Even though next year's plan has been laid out, he has requested his staff to generate another plan that assumes a 10% reduction in sales. This is an example of ________.

A) contingency planning

B) forecasting

C) operation planning

D) budgeting

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

AACSB: Reflective Thinking

48) Which of the following terms can be best described as identifying possible future situations and plans for dealing with them?

A) Benchmarking

B) Goal planning

C) Scenario planning

D) Budgeting

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Scenario planning crafts plans for alternative future conditions.

AACSB: Analytic

49) ________ is a technique that makes use of external comparisons to evaluate current performance.

A) Forecasting

B) Benchmarking

C) Allocating

D) Justifying

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Benchmarking identifies best practices used by others.

AACSB: Analytic

50) ________ are methods that lead to superior performance.

A) Best practices

B) Complacency traps

C) Operating procedures

D) Forecasting

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Benchmarking identifies best practices used by others.

AACSB: Analytic

51) Involving others, particularly those who implement the plan, in the planning process is called ________.

A) groupthink

B) marketing research

C) participatory planning

D) selecting alternatives

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Participatory planning improves implementation capacities.

AACSB: Analytic

52) Leading consists of guiding the efforts of employees to ensure high levels of task accomplishment.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is one of the four functions of management.

AACSB: Analytic

53) The planning process begins with defining objectives.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

54) Each level of the organization should create their plans independently in order to be responsive to the varying needs at each level.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

55) Short-range plans focus on two years into the future.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use short-range and long-range plans.

AACSB: Analytic

56) The purpose of strategic plans is to support tactical plans.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

57) Strategic plans define what specific work units need to do in order for the organization to move ahead.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

58) A policy describes exactly what actions should be taken in specific situations.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Organizational policies and procedures are plans.

AACSB: Analytic

59) If a forecast is carefully created, it can be relied upon to accurately predict the future.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Forecasting tries to predict the future.

AACSB: Analytic

60) Contingency planning identifies alternate courses of action to be implemented in order to meet changing circumstances.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

AACSB: Analytic

61) One effective way to build commitment to the implementation of a plan is to involve the people who will have to do the implementing in the creation of the plan.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Participatory planning improves implementation capacities.

AACSB: Analytic

62) ________ is the process of setting performance objectives and determining how to accomplish them.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Planning is one of the four functions of management.

AACSB: Analytic

63) ________ are specific results that one wishes to achieve.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

AACSB: Analytic

64) The term ________ can be described as being lulled into inaction by current successes or failures.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves focus and action orientation.

AACSB: Analytic

65) A long-range plan usually covers ________ years or more.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use short-range and long-range plans.

AACSB: Analytic

66) Effective planning ensures that each level's goals support the goals of the next higher level, thus fitting into a(n) ________ of objectives.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves coordination and control.

AACSB: Analytic

67) Underestimating the time required to complete a task is known as a ________.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves time management.

AACSB: Analytic

68) A(n) ________ clarifies the purpose of an organization and expresses what it hopes to be in the future.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

69) ________ are developed to implement strategic plans.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

70) A(n) ________ communicates broad guidelines for making decisions and taking action.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Organizational policies and procedures are plans.

AACSB: Analytic

71) ________ plans deal with the requirements of selling and distributing goods or services.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Analytic

72) A plan that commits resources to projects or activities is called a(n) ________.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

73) A(n) ________ budget involves approaching each budget cycle as if it were new, starting from scratch each time.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

74) ________ is the process that attempts to predict the future.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Forecasting tries to predict the future.

AACSB: Analytic

75) ________ are the activation signals for implementing contingency plans.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

AACSB: Analytic

76) A planning technique that utilizes external comparisons to better evaluate current internal processes is called ________.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Benchmarking identifies best practices used by others.

AACSB: Analytic

77) Explain the hierarchy of objectives.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves coordination and control.

AACSB: Analytic

78) Explain the concept of a zero-based budget.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

79) What is the difference between contingency planning and scenario planning?

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Scenario planning crafts plans for alternative future conditions.

AACSB: Analytic

80) How does planning fit into the four basic functions of management?

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is one of the four functions of management.

AACSB: Reflective Thinking

81) What are the four functions of management? Describe each of them.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is one of the four functions of management.

AACSB: Analytic

82) State and discuss at least three reasons for planning and the benefits of each.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.; Planning improves focus and attention.; Planning improves coordination and control.; Planning improves time management.

AACSB: Analytic

83) Distinguish between strategic plans and operational plans.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Managers use strategic and operational plans.

AACSB: Reflective Thinking

84) Define the terms policy and procedure.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Organizational policies and procedures are plans.

AACSB: Analytic

85) List and describe the different types of budgets.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

86) Why would a company want to use benchmarking and best practices? Can a company achieve competitive advantage using these techniques?

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Benchmarking identifies best practices used by others.

AACSB: Analytic

87) All machine operators have to receive the proper skills and training before starting work. This is a ________ objective.

A) middle management

B) senior management

C) team leader

D) top management

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves coordination and control.

AACSB: Analytic

88) You estimate that your homework for this class will take 30 minutes. It actually takes you two hours to complete. This is a ________.

A) complacency trap

B) functional misplan

C) procedure error

D) planning fallacy

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves time management.

AACSB: Analytic

89) The global COVID-19 pandemic is a reminder of the importance of ________ planning.

A) stretch

B) benchmark

C) scenario

D) budget

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Scenario planning crafts plans for alternative future conditions.

AACSB: Analytic

90) Stretch goals are ________.

A) impossible to meet

B) good exercises

C) only for the very best employees

D) difficult and challenging, but achievable

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

91) ________ alignment makes sure that goals throughout an organization are linked together to advance the mission.

A) Goal

B) Link

C) Mission

D) Stretch

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

92) Goal alignment is also called ________.

A) benchmarking

B) contingency planning

C) management by objectives

D) goal hierarchy

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

93) In a(n) ________ of goals, ________-level goals and objectives support accomplishment of ________-level goals and objectives.

A) hierarchy; higher; lower

B) hierarchy; lower; higher

C) contingency; higher; lower

D) contingency; lower; higher

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

94) Goals focused on important results are ________.

A) specific

B) measurable

C) attainable

D) relevant

E) timely

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

95) If there is no doubt that the goal is accomplished or missed, it is ________.

A) specific

B) measurable

C) attainable

D) relevant

E) timely

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

96) If there is a specific deadline for the goal, it is ________.

A) specific

B) measurable

C) attainable

D) relevant

E) timely

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

97) ________ goals set targets to create the knowledge and skills required for performance.

A) Ethical

B) Financial

C) Learning

D) Outcome

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goals can have downsides and must be well managed.

AACSB: Analytic

98) ________ goals set targets for actual performance results.

A) Ethical

B) Learning

C) Outcome

D) Participatory

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goals can have downsides and must be well managed.

AACSB: Analytic

99) ________ goals depend on ________ goals.

A) Outcome; learning

B) Learning; outcome

C) Stretch; benchmarking

D) Benchmarking; stretch

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goals can have downsides and must be well managed.

AACSB: Analytic

100) Which of the following is NOT a benefit of participatory planning?

A) Creativity

B) Information availability

C) Commitment

D) Quantity of plans

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Participatory planning improves implementation capacities.

AACSB: Analytic

101) Good planning helps us stay change-oriented. This means planning helps us to anticipate and deal with problems and opportunities.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves focus and flexibility.

AACSB: Analytic

102) Good planning helps us stay action-oriented. This means planning forces us to make sure results match objectives.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves focus and flexibility.

AACSB: Analytic

103) Planning guarantees we won't get into a complacency trap.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves action orientation.

AACSB: Analytic

104) The complacency trap is being lulled into inaction by current successes or failures.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves action orientation.

AACSB: Analytic

105) In a hierarchy of objectives, higher-level objectives help to accomplish lower-level ones.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves coordination and control.

AACSB: Analytic

106) The planning fallacy is underestimating the time required to complete a task.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves time management.

AACSB: Analytic

107) It takes you four time longer to complete your homework than you planned. This is called a complacency trap.

Learning Objective: 5.1: Explain How and Why Managers Use the Planning Process.

Section Reference: Planning improves time management.

AACSB: Analytic

108) A budget is a plan that commits resources to projects or activities.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

109) Budgets focus primarily on the money needed to complete a project.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

110) Operating budgets allocate a fixed amount of resources such as labor, equipment and space for a specific purpose.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

111) A flexible budget allows resources to vary in proportion with various levels of activity.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

112) A zero-based budget allocates resources as if each budget was brand new.

Learning Objective: 5.2: Identify the Types of Plans Used by Managers.

Section Reference: Budgets are plans that commit resources to activities.

AACSB: Analytic

113) Scenario planning identifies alternative future scenarios and makes plans to deal with each.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Scenario planning crafts plans for alternative future conditions.

AACSB: Analytic

114) The global COVID-19 pandemic caught people and businesses off-guard. Managers should use this experience to engage in more effective scenario planning.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Scenario planning crafts plans for alternative future conditions.

AACSB: Analytic

115) Benchmarking uses internal comparisons between departments to gain insights for planning.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Benchmarking identifies best practices used by others.

AACSB: Analytic

116) Best practices are things that companies in an industry are doing to achieve superior performance.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Benchmarking identifies best practices used by others.

AACSB: Analytic

117) Stretch goals are best practices that are really difficult to attain.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

118) Goal alignment ensures that goals throughout an organization are linked together to advance the mission.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

119) Management by Objectives (MBO) are stretch goals that help a company establish a hierarchy of goals.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

120) SMART goals are stretch goals.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Analytic

121) Learning goals help people achieve outcome goals.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goals can have downsides and must be well managed.

AACSB: Analytic

122) Outcome goals set targets to create the knowledge and skills required for performance.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goals can have downsides and must be well managed.

AACSB: Analytic

123) ________ planning identifies alternative courses of action that can be implemented to meet the needs of changing circumstances.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

AACSB: Analytic

124) ________ planning identifies alternative future scenarios and makes plans to deal with each.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Scenario planning crafts plans for alternative future conditions.

AACSB: Analytic

125) In order to get the best performance out of your organization, you should use ________ goals to encourage extra effort.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goal setting aligns plans and activities.

AACSB: Reflective Thinking

126) ________ goals set targets for actual performance results.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Goals can have downsides and must be well managed.

AACSB: Reflective Thinking

127) ________ planning includes the people who will be affected by plans and/or who will be asked to implement them.

Learning Objective: 5.3: Describe Useful Planning Tools and Techniques.

Section Reference: Participatory planning improves implementation capacities.

AACSB: Reflective Thinking

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