Test Bank Ch.8 Planning Processes And Techniques

CHAPTER 8

PLANNING PROCESSES AND TECHNIQUES

Question type: True/False

1) The management process involves planning, organizing, leading, and controlling the use of resources to achieve performance objectives.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

2) Planning is the process of setting objectives and determining what should be done to accomplish them.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

3) Controlling is the process of setting objectives and determining how to accomplish them.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

4) Leading refers to guiding the efforts of human resources to ensure high levels of task accomplishment.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

5) Planning in organizations creates a solid platform to assist managers in allocating and arranging resources to accomplish essential tasks in the organization.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

6) Without planning, control lacks the follow-through needed to ensure that things work as planned.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

7) Without control, planning lacks a framework for measuring how well things are going and what could be done to improve things.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

8) Although planning focuses attention on defining and setting objectives, it does not concern itself with the implementation of those objectives.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

9) Planning eliminates the need for effective leadership.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

10) Planning is a five-step process that includes defining objectives, determining current status relative to objectives, developing premises regarding future conditions, analyzing action alternatives and choosing among them, and implementing the plan and evaluating results.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

11) The planning process is a systematic way of setting performance objectives and deciding how to best achieve them.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

12) In the planning process, objectives refer to the specific results or desired outcomes that one intends to achieve.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

13) Planning is an ongoing process engaged in simultaneously with other daily work processes.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

14) Stretch goals are performance targets that we must work extra hard to reach.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

15) Plans alone don’t deliver results; implemented plans do.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

16) An organization with flexibility operates with an orientation toward the past rather than the future.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

17) Effective planning improves focus and flexibility, provides an action orientation, helps to improve coordination, and facilitates better control and time management.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

18) An organization with focus knows the needs of its customers and knows how to serve them well; an individual with focus knows where he or she wants to go in a career or situation and can retain that objective even in difficult circumstances.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

19) Planning helps us avoid simply being carried along by the flow of events, and focuses our attention on priorities.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

20) Planning provides action orientations for people and organizations that are results oriented, priority oriented, advantage oriented, and change oriented.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

21) When plans are coordinated among the various systems and components of the organization, there is less likelihood that multiple accomplishments will add up to the desired results for the organization.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

22) Without planning, control lacks objectives and standards for measuring how well things are going and what could be done to make them go better.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

23) For effective time management, one must become calendar-bound by letting others control one’s schedule.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

24) Planning helps managers and organizations to stay ahead of the competition by creating a performance-oriented sense of direction, making sure the most important things get attention first, ensuring that all resources are used to best advantage, and anticipating problems and opportunities so they can be dealt with in the best way.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

25) Effective time management involves choices about the allocation of time to the most important priorities.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

26) Good time management involves prioritizing your work, screening calls and emails, and saying “no” to distracting requests.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

27) Planning time frames are shrinking leaving top management is no longer responsible for setting longer-term plans and directions for the organization.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

28) Akira is an accomplished manager, who is always the first one in the office and the last to leave. Akira carefully plans out each day, with a calendar full of meetings, conferences and strict times set aside for specific tasks. At the same time Akira wants to be available to team members, so they frequently drop by to talk about ongoing plans and tasks. And finally, Akira tends to focus on lower priority tasks thinking they will take less time to complete which should leave more time for the more important tasks. Based on this, one can conclude that Akira is effective in time management.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

29) A long-term plan covers three or more years, a short-term plan covers a one to three-year timeline, while a sprint plan covers a period of less than one year.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

30) All managers, regardless of their levels, will use the same time horizon to plan their work activities.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

31) Strategic plans are focused only on a specific department of an organization.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

32) Strategic plans ideally set forth the goals and objectives needed to accomplish the organization’s vision in terms of mission or purpose and what it hopes to be in the future.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

33) An organization’s vision clarifies the purpose of the organization and expresses what it hopes to be in the future.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

34) Tactical plans often take the form of operational plans that indicate how different components of the enterprise will contribute to the overall strategy.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

35) A functional plan indicates how different operations within the organization will help advance the overall strategy.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

36) Examples of functional plans include production plans, financial plans, logistics plans, and HR plans.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

37) Operational plans define what needs to be done in specific functions or work units to implement strategic plans and achieve strategic objectives.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

38) Typical strategic plans in a business would include dealing with the methods and technology needed by people in their work and dealing with money required to support various operations. Typical operational plans in a business would include dealing with requirements of selling and distributing goods or services and dealing with recruitment, selection, and placement of people into jobs.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

39) Operational plans include single-use plans like budgets that apply to one specific task or time period.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

40) Policies set expectations for many aspects of employee behaviour.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

41) Policies and procedures are single-use plans for meeting the needs of a well-defined situation in a timely manner.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

42) Policies define precise actions to be taken while procedures outline the broad guidelines as to how the actions will be taken.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

43) Procedures set broad guidelines for making decisions and taking action in specific circumstances.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

44) Standard operating procedures are rules that are can be found in employee manuals.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

45) Budgets are single-use plans that commit resources to activities, projects, or programs.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

46) To be “over budget” is generally considered bad for a company or an individual; to come in “under budget” is generally good.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

47) Operating budgets allocate resources such as labour, equipment, and space.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

48) A flexible budget allocates resources as if each budget were brand new.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

49) A zero-based budget and a project schedule are examples of standing plans that are designed to cover recurring situations.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

50) A monthly operating budget is an example of a single-use plan that serves the needs and objectives of a well-defined situation in a timely manner.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

51) A fixed budget is defined as one that allocates a fixed amount of resources for a specific purpose.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

52) A zero-based budget allows the allocation of resources to vary in proportion with various levels of activity.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

53) Fixed budgets define specific task objectives, link activities to be accomplished with due dates, and identify the amounts and timing of resource requirements.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

54) Qualitative forecasting uses expert opinions to predict the future.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

55) Using the opinions of persons with special expertise to make predictions about the future is called qualitative forecasting.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

56) Using mathematical and statistical analyses of historical data and surveys to predict future events is called quantitative forecasting.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

57) Quantitative forecasting techniques use expert opinions to predict the future, whereas qualitative forecasting uses mathematical analyses to predict future events.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

58) Forecasting is a process of making quantitative or qualitative predictions about what will happen in the future; yet in the final analysis, forecasting is subject to error because it always relies on human judgment and interpretation.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

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

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

60) Contingency planning does not specify different courses of action under different conditions.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

61) Contingency planning focuses on early identification of possible shifts in future events.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

62) Contingency planning contains trigger points that indicate when preselected alternative plans should be activated.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

63) Scenario planning is a short-term version of contingency planning.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

64) Scenario planning involves identifying alternative future states of affairs that may occur and then developing plans to deal with each case should it occur.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

65) Scenario planning has helped Royal Dutch/Shell adjust their strategies and operations in order to be better prepared than their competitors for future shocks.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Comprehension

Difficulty: Medium

AACSB: Analytic

66) Both contingency planning and scenario planning identify alternative courses of action and are invaluable in an uncertain environment. The difference is that contingency planning has a long-term focus while scenario planning has a short-term focus.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

67) Benchmarking is used to gain perspective on current organizational performance by using internal and external comparisons.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Comprehension

Difficulty: Medium

AACSB: Analytic

68) Benchmarking is done to determine what other organizations are doing well and planning on incorporating those good ideas into one’s own organization.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

69) Internal benchmarking refers to those things that are done by both competitors and non-competitors that enable them to achieve superior performance.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

70) Internal benchmarking encourages members and work units to learn each others best practices.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

71) Brynel is the manager of a local automobile dealership. Each month managers from all the other dealerships meet to discuss marketing campaigns and strategies, the local economy and similar topics. During the course of the day Brynel will often speak one on one with other managers to find out what is working for them and not working for them in their parts and service departments. These are the two departments that Brynel has found to be weakest in the organization. On returning to the dealership Brynel will then call a meeting with his parts and service managers to go over what Brynel found and see if they can be implemented. This is an example of internal benchmarking.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

72) If staff planners are used, people may lack the commitment needed to successfully implement plans no matter how good those plans are.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

73) Staff planners are individuals who lead and coordinate the planning function for an organization for one of its major components.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

74) An important risk associated with the use of staff planners is the communication gap that can develop between staff planners and line managers.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

75) Great goals include an element of challenging and stretching while still being realistic and possible to achieve.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

76) A goal can only be considered ‘great’ if it has all five of the SMART characteristics.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

77) The five characteristics of a SMART goal are specific, measurable, attainable, relevant and timely.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

78) Carlyn arrived at work on Monday morning to find that the management team had come up with a new set of goals for the coming months. The first goal listed was that customers calls were to last no longer than 2.5 minutes regardless of the customer issue. Carlyn knows from experience that on average a customer call takes at least 4.0 minutes to satisfactorily complete. The reward for averaging 2.5 minutes per call is an extra day off per month; no penalty was noted for not achieving the goal. This action by the management team is in violation of the measurable characteristic of SMART goals.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

79) As long as people have goals, how they are set doesn’t really make much of an impact on their success or not.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Comprehension

Difficulty: Hard

AACSB: Analytic

80) A good performance objective should be challenging and specific, however it need not be measurable or time defined.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

81) On those jobs where performance is difficult to quantify, performance objectives can be stated as verifiable work activities.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

82) Charlie arrived at work on Monday morning to find that the management team had decided to promote Charlie to Accounts Receivable supervisor with the overall goal of reducing the time it takes customers to pay their accounts. Charlie has completed a number of business management and accounting courses; however, Charlie has no real supervisory experience. The company has offered to send Charlie to a three-day management training seminar. This is an example of an outcome goal, with the outcome defined by management as Charlie becoming an effective supervisor.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

83) Companies should provide employees with clear and quantified work goals to help managers and employees identify problems before they interfere with performance.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

84) Strategic goals set by top management cascade down the organization step by step to become quality management objectives for lower levels.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

85) Aligning goals from one level to the next facilitates the right things happening at the right time on all levels of the organization.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

86) When goals are correctly aligned between team leaders and team members, both will jointly plan goals, and then individually act and control their actions and results.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

87) Management by objectives (MBO) is a structured process of regular communication in which a supervisor/team leader and subordinates/team members jointly set performance objectives and review results accomplished.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

88) In management by objectives (MBO), the supervisor/team leader and subordinates/team members jointly set performance objectives and review the results accomplished.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

89) Improvement objectives, personal development objectives, and maintenance objectives can be specified in a management by objectives (MBO) contract.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

90) In using management by objectives (MBO), managers should avoid having subordinates engage in self-appraisal of their performance results in terms of their performance objectives.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

91) Advantages of management by objectives (MBO) include focusing the work efforts of subordinates/team members on the most important tasks and objectives, and the work efforts of the supervisor/team leader on areas of support that can help subordinates/team members meet agreed-upon objectives.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

92) Participatory planning requires that the planning process include people who will be affected by the resulting plans and/or will be asked to help implement them.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

93) The use of participatory planning can increase creativity in planning, the commitment of people for planning, and the information available for planning.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

94) The use of participatory planning can increase conflict over scarce resources and consequently decrease acceptance of chosen alternatives.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

95) While participation in the planning process can increase the amount of time spent in planning, it nonetheless can enhance results by improving implementation.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

Question type: Multiple Choice

96) ___ is the process of setting objectives and determining how to accomplish them.

a) Directing

b) Controlling

c) Leading

d) Organizing

e) Planning

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

97) A(n) ___ is a statement of action steps to be taken to accomplish the objectives.

a) concept

b) objective

c) guideline

d) goal

e) plan

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

98) Setting objectives and determining what should be done to accomplish them is the essence of the management function of ___.

a) productivity improvement

b) controlling

c) leading

d) organizing

e) planning

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

99) In the planning process, ___ refer to the specific results or desired outcomes that one intends to achieve.

a) guidelines

b) objectives

c) procedures

d) policies

e) alternatives

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

100) Which of the following management functions deals with the allocation and arrangement of resources to accomplish tasks?

a) planning

b) leading

c) organizing

d) controlling

e) directing

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

101) ___ is a management function that guides the efforts of human resources to ensure high levels of task accomplishment.

a) Leading

b) Directing

c) Resourcing

d) Organizing

e) Processing

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

102) Which of the following management functions deals with monitoring task accomplishments and taking necessary corrective action?

a) coordinating

b) processing

c) controlling

d) leading

e) directing

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

103) Abasi, the supervisor at KNYA Inc., is in the process of setting certain specific goals for the team, and is deciding how the team can reach those goals. In this scenario, Abasi is involved in the process of ___.

a) planning

b) leading

c) organizing

d) controlling

e) directing

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

104) Which of the following statements about planning and controlling is/are accurate?

a) Even the best plans must be changed at some point due to an uncertain future.

b) Managers must be flexible in response to new circumstances.

c) Managers must have the discipline to maintain control when performance pressures are unrelenting.

d) b and c

e) a, b, and c

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

105) Which one of the following lists the planning steps in the correct sequence?

a) Define objectives, determine current standing relative to objectives, evaluate current accomplishments, analyze and choose among possible action alternatives, and implement the plan and evaluate results.

b) Define objectives, develop premises regarding future conditions, determine current standing relative to objectives, analyze and choose among possible action alternatives, and implement the plan and evaluate results.

c) Define objectives, determine current standing relative to objectives, develop premises regarding future conditions, analyze and choose among possible action alternatives, and implement the plan and evaluate results.

d) Determine current standing relative to objectives, define objectives, develop premises regarding future conditions, analyze and choose among possible action alternatives, and implement the plan and evaluate results.

e) Develop premises regarding future conditions, define objectives, determine current standing relative to objectives, analyze and choose among possible action alternatives, and implement the plan and evaluate results.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

106) Which of the following is the first step in the planning process?

a) analyzing alternatives and making a plan

b) defining the objectives

c) implementing the plan and evaluating results

d) determining where one stands vis-à-vis objectives

e) developing premises regarding future conditions

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

107) At the beginning of every month, the owners of a small bakery define the major objectives for that month (for example, the profit needed for that month). They also try to anticipate any problems or issues that could prevent them from reaching their objectives and create a plan of action if needed. At the end of the month, they check to see if they met their objectives. Creating such good plans, will help them to

a) make sure their business is always successful.

b) ensure they are always prepared.

c) keep a results-driven sense of direction.

d) identify opportunities.

e) be better organized.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

108) The chief technology officer (CTO) at Acme Appliances, is in the process of identifying the results the company wants to achieve next year. The CTO also has an idea of how far off the desired mark the company is currently. The CTO is most likely in the process of

a) developing premises regarding future conditions.

b) defining her company’s objectives.

c) analyzing her company’s alternatives and planning.

d) implementing the plan and evaluating the results.

e) determining where her company stands vis-à-vis objectives.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

109) In which step of the planning process would one know where one is placed in reaching the goals, and what strengths work in one’s favour and what weaknesses may hold one back?

a) implementing the plan and evaluating results

b) defining the objectives

c) developing premises regarding future conditions

d) analyzing alternatives and making a plan

e) determining where one stands vis-à-vis objectives

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

110) After evaluating the current sales of PCs in relation to the desired sales, the marketing manager at Alfalah Inc., generates alternative campaigns that may affect the PC’s expected sales. The manager identifies, for each campaign, things that may help or hinder progress toward the company’s objectives. Based on this information, the manager is currently in which phase of the planning process?

a) defining the objectives

b) determining where one stands vis-à-vis objectives

c) developing premises regarding future conditions

d) analyzing alternatives and making a plan

e) implementing the plan and evaluating results

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

111) In which phase of the planning process would one choose the alternative to accomplish one’s objectives and describe what must be done to follow the best course of action?

a) analyzing alternatives and making a plan

b) defining the objectives

c) implementing the plan and evaluating results

d) determining where one stands vis-à-vis objectives

e) developing premises regarding future conditions

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

112) Avery, the marketing manager at Kalx Inc., wants to check if the latest marketing campaign was successful in increasing laptop sales for the company. Which of the following steps must Avery take to measure the sales performance of the organization?

a) Determine where he stands vis-à-vis objectives.

b) Define the objectives.

c) Develop premises regarding future conditions.

d) Evaluate results and revise plans if needed.

e) Analyze alternatives and make a plan.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

113) In which step of the planning process does one take action and carefully measure progress toward objectives?

a) Define the objectives.

b) Determine where you stand vis-à-vis objectives.

c) Implement the plan and evaluate results.

d) Analyze alternatives and make a plan.

e) Develop premises regarding future conditions.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

114) In the planning process, ___ are the specific results or desired outcomes that one intends to achieve.

a) objectives and goals

b) beliefs and culture

c) procedures

d) policies

e) guidelines

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

115) The planning team at Abdullah and Sons has thoroughly examined all possible situations that may be encountered in the current year. They have also addressed various factors that may help or act as barriers to objectives. Which of the following steps in the planning process has been completed by the planning team at Abdullah and Sons by taking these actions?

a) defining objectives

b) determining where one stands vis-à-vis objectives

c) developing premises regarding future conditions

d) measuring performance

e) implementing the plan and evaluating results

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

116) Performance targets that we must work extra hard to reach are called ___.

a) stretch goals

b) tactical goals

c) objectives

d) plans

e) missions

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

117) Aiden has been given the responsibility of meeting certain sales targets for next year, and is preparing a list of actions and measurables that aid the sales team in reaching these targets. The list includes such specific action items as preparing a customer call log, checking the quality of inputs and outputs, pricing, and details about the overall advertising strategy. In this scenario, which of the following is Aiden creating?

a) goal

b) policy

c) plan

d) concept

e) objective

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

118) Which of the following is true of planning?

a) It is done by managers at scheduled times.

b) It is a one-time process.

c) It doesn’t need to be evaluated or monitored for viability.

d) It can include the active participation of all employees.

e) It can deliver results even without implementation.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

119) Which of the following is an external source of organizational pressure?

a) quest for operating efficiencies

b) alternative work arrangements

c) government regulations

d) concerns for work–life balance

e) new organizational structures

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

120) Which of the following is an internal source of organizational pressure?

a) government regulations

b) changing social norms and ethical expectations

c) changing technologies

d) greater workplace diversity

e) uncertainties of a global economy

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

121) Which of the following statements describes the benefits of planning accurately?

a) Planning improves action orientation.

b) Planning improves coordination.

c) Planning improves time management.

d) a and b

e) a, b, and c

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

122) Which of the following is correct about focus?

a) An organization with focus knows what it does best.

b) An organization with focus knows the needs of its customers and knows how to serve them well.

c) An individual with focus knows where he or she wants to go in a career or situation and can retain that objective even in difficult circumstances.

d) all of the above

e) none of the above

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

123) Which of the following is correct about flexibility?

a) An organization with flexibility is willing and able to change and adapt.

b) An organization with flexibility operates with an orientation toward the future.

c) An individual with flexibility adjusts career plans to fit new and developing opportunities.

d) all of the above

e) none of the above

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

124) ___occurs when an organization allows itself to be carried along by the flow of events.

a) Coordination

b) Organizational pressure

c) Complacency trap

d) Ecological fallacy

e) Ethnocentrism

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

125) According to Stephen R. Covey, good planning helps an organization to be

a) priority oriented, results oriented, advantage oriented, change oriented.

b) priority oriented, results oriented, strategy oriented, tactically oriented.

c) advantage oriented, change oriented, task oriented, control oriented.

d) advantage oriented, change oriented, strategy oriented, results oriented.

e) advantage oriented, change oriented, strategy oriented, decision oriented.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

126) Ashton is an assistant manager at a popular retail outlet and likes to keep the employees motivated and insists that the sales team meet their daily sales target and strive to go beyond their targets for extra bonuses. Ashton can be regarded as a(n) ___ manager.

a) change oriented

b) results oriented

c) priority oriented

d) relational oriented

e) complacency oriented

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

127) A(n) ___ oriented manager ensures that all resources are used to the best interest and benefit.

a) result

b) change

c) relation

d) priority

e) advantage

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

128) A(n) ___ oriented manager anticipates problems and opportunities so they can be dealt with most effectively.

a) result

b) employee

c) priority

d) change

e) advantage

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

129) A(n) ___ oriented manager makes sure the most important things get first attention.

a) priority

b) result

c) advantage

d) change

e) innovation

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

130) Without ___, ___ lacks a framework for measuring how well things are going and what could be done to improve things.

a) problem solving; organizing

b) planning; controlling

c) planning; leading

d) controlling; goal setting

e) planning; decision making

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

131) Without ___, ___ lacks the follow-through needed to ensure that things work as planned.

a) controlling; organizing

b) planning; controlling

c) controlling; leading

d) planning; problem solving

e) controlling; planning

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Esay

AACSB: Analytic

132) Which of the following is true about planning?

a) Good planning improves rigidity.

b) An organization with flexibility starts losing focus.

c) Planning allows organizations to get into the complacency trap.

d) Planning improves coordination.

e) When planning is not done well, it facilitates control.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

133) Without planning, the process of ___ lacks a framework for measuring how well things are going and what could be done to improve things.

a) organizing

b) control

c) leading

d) goal setting

e) decision making

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Comprehension

Difficulty: Medium

AACSB: Analytic

134) The link between planning and controlling begins with ___.

a) anticipating problems and opportunities

b) setting objectives and standards

c) analyzing the alternatives

d) evaluating and monitoring the results

e) understanding the internal and external organizational threats

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

135) Effective ___ involves choices about the allocation of time to the most important priorities.

a) inventory management

b) cash management

c) time management

d) project budgeting

e) strategic management

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

136) Good time management includes all the following except

a) saying no to requests that divert you from what you should be doing.

b) having a system for screening telephone calls, emails, and requests for meetings.

c) not letting drop-in visitors or instant messages use up too much of your time.

d) following priorities; working on the most important and urgent tasks first.

e) not leaving details for others to address or leaving them for later.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

137) Akira is an accomplished manager, who is always the first one in the office and the last to leave. Akira carefully plans out each week and day, with a calendar full of meetings, conferences and strict times set aside for specific tasks including returning telephone calls and answering emails. At the same time Akira wants to be available to team members, so they frequently drop by to talk about ongoing plans and tasks, and unless Akira has a scheduled meeting or conference, will spend time with the team member to discuss whatever issue they have brought forward. And finally, Akira tends to focus on lower priority tasks thinking they will take less time to complete which should leave more time for the more important tasks. Based on this, which of the following statements is correct about Akira’s time management skills.

a) Akira is very skilled at time management.

b) Akira is adhering to all seven of the time management tips.

c) Akira is going against all seven of the time management tips.

d) Akira is following only one of the seven time management tips by scheduling telephone calls and answering emails.

e) Akira is following two of the seven time management tips by prioritizing work and working on the smaller tasks leaving time for more important tasks and by scheduling telephone calls and answering emails.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Evaluation

Difficulty: Hard

AACSB: Analytic

138) Which of the following is true about long-range and short-range plans?

a) There is a lot more permanency to long-term plans today than there was in the past.

b) Long-term plans are not subject to frequent revisions.

c) Long-term plans typically look at least ten years or more into the future.

d) Planning time frames are rapidly and continually shifting.

e) Lower management is mainly responsible for creating short-term plans.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

139) Even though the time frames of planning are shrinking, ___ responsible for setting longer-term plans and directions for the organization.

a) lower management is

b) middle management is

c) shareholders are

d) top management is

e) consumers are

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

140) Which of the following statements accurately describe planning time horizons?

a) Short-range plans cover one year or less into the future.

b) Intermediate-range plans cover a time frame of one to two years into the future.

c) Long-range plans cover a time frame of three or more years into the future.

d) all of the above

e) none of the above

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

141) ___ are longer-term plans that set broad directions for the organization.

a) Procedural plans

b) Functional plans

c) Strategic plans

d) Tactical plans

e) Operational plans

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

142) Which level of management typically spends more the most time determining long-range plans?

a) lower-level managers

b) middle-level managers

c) lower-level and middle-level managers

d) top-level managers

e) all levels of management

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

143) Which of the following is true of strategic plans?

a) Plans at the middle and lower levels of the traditional organizational structure tend to be strategic.

b) Strategic plans are focused only on a specific department or group of employees in the organization.

c) They are short-range plans to achieve an immediate goal.

d) Strategic plans ideally set forth the goals and objectives needed to accomplish the organization’s vision

e) They refer to the “tactical” plans of the organization.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

144) ___ plans set broad, comprehensive, and longer-term action directions for the entire organization.

a) Normal

b) Single-use

c) Strategic

d) Tactical

e) Operational

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

145) Strategic planning begins with ___.

a) tactical planning

b) a vision

c) time management

d) forecasting

e) none of the above

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

146) A ___ clarifies the purpose of the organization and expresses what it hopes to be in the future.

a) vision

b) mission

c) policy

d) procedure

e) budget

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

147) V-Mart, an online retailer, hopes to be one of the most popular, highly efficient, and biggest e-commerce organizations in the country. It wishes to excel in all its endeavors to serve customers. This is an example of a

a) policy.

b) functional plan.

c) code of conduct.

d) vision.

e) tactical plan.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

148) A ___ helps to implement all or parts of a strategic plan.

a) strategic plan

b) tactical plan

c) long-range plan

d) short-range plan

e) functional plan

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

149) Which of the following are implications of research conducted by Elliot Jaques?

a) People vary in their capabilities to think out, organize, and work through events of different time horizons.

b) Most people work comfortably with only three-month time spans; smaller groups of people work well with a one-year time frame; and only one person in several million can handle a 20-year time frame.

c) Managers working at different levels in the organization must plan over varying time horizons.

d) all of the above

e) none of the above

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

150) The management of Spielzeit, a toy manufacturing company, decides to promote their products at various shopping malls in the city and surrounding municipalities. To do so, they create ten teams of four employees each to visit shopping malls and promote the toy products. Management’s decision to allocate the company’s human resources for promoting the toys may be regarded as a ___ plan.

a) tactical

b) strategic

c) top-down

d) production

e) visionary

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

151) Production, financial, facilities, marketing, and human resources are all examples of ___ plans.

a) strategic

b) operational

c) contingency

d) functional

e) flexible

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

152) All of the following are examples of functional plans except

a) logistics plans.

b) facilities plans.

c) human resources plans.

d) operational plans.

e) financial plans.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

153) ___ indicate how different operations within the organization will help advance the overall strategy.

a) Operational plans

b) Policies

c) Budgets

d) Functional plans

e) Missions

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

154) Which of the following functional plans deal with work methods and technologies?

a) human resource

b) marketing

c) facilities

d) financial

e) production

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

155) Functional plans dealing with money and capital investments are called ___ plans.

a) marketing

b) logistics

c) financial

d) human resource

e) facilities

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

156) Nakatomi Inc. wants to open a new automobile manufacturing unit in Kasnia. Upper management of Nakatomi has created a team whose sole assignment is to design the layout of the new factory in Kasnia. In this scenario, Nakatomi is dealing with the ___ planning.

a) facilities

b) financial

c) operational

d) marketing

e) inventory

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

157) One of Hazel Ltd.’s original suppliers has unexpectedly shut down, Hazel must now find alternate suppliers to provide resources for its manufacturing plant. Such plans are referred to as ___ plans.

a) production

b) facilities

c) marketing

d) logistics

e) financial

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

158) ___ plans are functional plans that deal with suppliers and acquiring resource inputs.

a) Human resource

b) Logistics

c) Marketing

d) Production

e) Facilities

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

159) ___ plans deal with selling and distributing goods or services.

a) Production

b) Financial

c) Facilities

d) Logistics

e) Marketing

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

160) Ainsley is the owner of a hobby shop and has come up with a new plan to improve the sale and distribution of the shop’s merchandise. This plan includes curb-side delivery and increasing the shop’s web presence. Which type of plan did Ainsley employ in this scenario?

a) human resources

b) logistics

c) marketing

d) production

e) facilities

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

161) Which of the following functional plans deal with building a talented workforce?

a) human resource

b) logistics

c) marketing

d) production

e) facilities

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

162) A(n) ___ plan identifies short-term activities to implement the broad plans of the company and includes standing plans and single-use plans.

a) forecast

b) functional

c) strategic

d) operational

e) tactical

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

163) How are strategic plans and operational plans related?

a) Strategic plans and operational plans are unrelated.

b) Strategic plans define what needs to be done to implement operational plans.

c) Strategic plans are developed to address long-term organizational objectives; operational plans implement strategic plans.

d) Operational plans are developed to meet long-term organizational objectives; strategic plans implement operational plans.

e) Strategic plans set operational objectives; operational plans carry out those objectives.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

164) Typical operational plans in a business would deal with all the following except

a) methods and technology needed by people in their work.

b) money required to support various operations.

c) requirements of selling and distributing goods or services.

d) company growth through mergers and acquisitions.

e) recruitment, selection, and placement of people into jobs.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

165) Plans that define what needs to be done in specific functions or work units in order to implement strategic plans and achieve strategic objectives are called _______ plans.

a) business

b) implementing

c) company

d) tactical

e) operational

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

166) Policies and procedures that are used repeatedly are called ______ plans.

a) single-use

b) standing

c) strategic

d) scheduling

e) individual

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

167) Which of the following is a standing plan?

a) a policy

b) a budget

c) a vision

d) a mission

e) a forecast

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

168) An organization’s zero-tolerance policy towards sexual harassment in the workplace is an example of a ___ plan.

a) facilities

b) financial

c) single-use

d) standing

e) logistics

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

169) Which of the following is a single-use plan?

a) a procedure

b) a policy

c) a budget

d) a mission

e) a vision

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

170) ___ communicate broad guidelines for making decisions and taking action in specific circumstances.

a) Rules

b) Procedures

c) Policies

d) Guidelines

e) Regulations

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

171) ___ or ___ describe exactly what actions are to be taken in specific situations.

a) Rules; procedures.

b) Rules; goals.

c) Procedures; policies.

d) Projects; project management.

e) Objectives; strategies.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

172) ___ are often found in employee manuals as standard operating procedures.

a) Goals

b) Rules

c) Budgets

d) a and b

e) a and c

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

173) Which of the following statements best distinguishes procedures and policies?

a) Procedures help obtain organizational objectives; policies do not.

b) Procedures present a plan of action for specific situations; policies are broad guidelines.

c) A procedure is a single-use plan; a policy is a standing plan.

d) Procedures guide ethics; policies guide fair employment.

e) A procedure is a standing-use plan; a policy is a single-use plan.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

174) Which of the following describes the difference between a policy and a procedure?

a) A policy focuses on the organization, while a procedure focuses only on a single department.

b) A policy sets a broad guideline, and a procedure defines precise actions to be taken.

c) A policy is a single-use plan, a procedure is a standing plan.

d) A policy identifies short-term directions for the organization. A procedure identifies long-term directions.

e) A policy guides fair employment, while a procedure guides ethical principles.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

175) When a university issues a statement that it “… will not tolerate sexual harassment in relation to the evaluation of employee or student performance …,” a ___ plan in the form of an organizational ___ is being communicated.

a) single-use; procedure.

b) standing-use; rule.

c) standing; procedure.

d) single-use; policy.

e) standing; policy.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

176) ___ are single-use plans that commit resources for specific time periods to activities, projects, or programs.

a) Procedures

b) Policies

c) Guidelines

d) Budgets

e) Forecasts

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

177) Financial budgets

a) project cash flows and expenditures.

b) plot anticipated sales or revenues against expenses.

c) allocate resources like labour, equipment, and space.

d) allocate a stated amount of resources for a specific purpose.

e) allow resources to vary in proportion with various levels of activity.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

178) ___ budgets allocate resources such as labour, equipment, and space.

a) Financial

b) Operating

c) Nonmonetary

d) Zero-based

e) Flexible

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

179) Ajax has prepared the following budget for the upcoming quarter.

This is an example of a __________ budget.

a) Financial

b) Operating

c) Nonmonetary

d) Zero-based

e) Flexible

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Synthesis

Difficulty: Hard

AACSB: Analytic

180) Which of the following budgets reports anticipated revenues and expenses?

a) zero-based

b) nonmonetary

c) financial

d) operating

e) fixed

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

181) A fixed budget

a) allocates a stated amount of resources for a specific purpose.

b) allocates resources as if each budget were brand new.

c) allows resources to vary in proportion with various levels of activity.

d) allocates resources like labour, equipment, and space.

e) always has equal expenditures and revenue.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

182) A(n) ___ budget allows the allocation of resources to vary in proportion with various levels of activity.

a) master

b) strategic

c) operational

d) flexible

e) zero-based

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

183) In a chain of discount department stores, personnel needs are estimated in three different ways: (a) for a high demand season, (b) for a moderate demand season, and (c) for a slack season. By taking these three activity levels into account, managers are developing a ___.

a) fixed budget

b) flexible budget

c) zero-based budget

d) standing-use plan

e) policy

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

184) When a project or activity is budgeted in each new budget period as if it were brand new, a(n) ___ budgeting approach is being used.

a) fixed

b) flexible

c) zero-based

d) contingency

e) operational

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

185) Morrison Manufacturing (MM) creates a budget for projects or activities in each new budget period as if it were brand new. It does not renew any of the past funding. MM is using a(n) ___ budgeting approach.

a) nonmonetary

b) operating

c) zero-based

d) fixed

e) flexible

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Comprehension

Difficulty: Medium

AACSB: Analytic

186) Chris manages a construction company. One of Chris’s responsibilities is to oversee the allocation of equipment and construction workers to different construction projects . Chris allocates most of the equipment and workers to high priority projects. In this scenario, Chris creates a ___ budget.

a) financial

b) operating

c) non-monetary

d) zero-based

e) personal

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

187) In order to establish itself in Canada Target Corporation (Target) bought the struggling Zellers Inc. from Hudson’s Bay Company in 2011. Target planned to spend over $1 billion converting approximately 150 Zellers stores into Target stores within the following two to three years. What type of plan would Target have needed for this type of move?

a) short-range plan

b) forecasting plan

c) long-range plan

d) contingency plan

e) operational plan

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

188) ___ is the process of predicting what will happen in the future.

a) Benchmarking

b) Scenario planning

c) Contingency planning

d) Staff planning

e) Forecasting

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

189) The current issue of a popular business periodical predicted a global economic downturn which it attributed to a predicted increase in the inflation rate. This report is an example of ___.

a) benchmarking

b) scenario planning

c) contingency planning

d) staff planning

e) forecasting

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

190) Using the opinions of persons with special expertise to make predictions about the future is called ___.

a) quantitative forecasting

b) guesswork

c) qualitative forecasting

d) contingency planning

e) expert planning

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

191) A magazine publishes forecasts of industry conditions, interest rates, unemployment trends, and national economies every quarter. It uses expert opinion to predict the future. This method of forecasting the future falls under the category of ___ forecasting.

a) specific

b) attainable

c) timely

d) measurable

e) qualitative

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

192) Pat is the marketing manager at Kurt Consulting. Pat is predicting a 15% drop in the sales of their premium packages and has used correlation and regression analyses of previous years’ sales records to arrive at this conclusion. Pat is using ___.

a) contingency planning

b) qualitative forecasting

c) quantitative forecasting

d) internal benchmarking

e) external benchmarking

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

193) Using mathematical and statistical analyses of historical data and surveys to predict future events is called ___.

a) quantitative forecasting

b) estimation planning

c) qualitative forecasting

d) contingency planning

e) expert planning

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

194) Planning that identifies alternative courses of action that can be implemented to meet the needs of changing circumstances is called ___.

a) formal planning

b) contingency planning

c) just-in-time planning

d) problem solving

e) just-in-case planning

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

195) Which of the following statements about contingency planning is false?

a) Contingency planning occurs when planners decide the future will be identical to the past.

b) Contingency planning anticipates events that may occur in the future.

c) Contingency planning specifies different courses of action under different conditions.

d) Contingency planning focuses on early identification of possible shifts in future events.

e) Contingency planning contains trigger points that indicate when preselected alternative plans should be activated.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

196) Jean and a team of engineers have gone through the blueprint of a new commercial complex and have underlined major issues that could crop up when work starts at the site. They have also thought of possible fixes to the issues. This is an example of ___.

a) benchmarking

b) operational planning

c) functional planning

d) tactical planning

e) contingency planning

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

197) Which of the following is a long-term version of contingency planning?

a) benchmarking

b) scenario planning

c) forecasting

d) staff planning

e) operationalizing

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

198) ___ involves identifying several possible future situations or states of affairs and then making plans to deal with each situation should it occur.

a) Scenario planning

b) External benchmarking

c) Forecasting

d) Staff planning

e) Internal benchmarking

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

199) Harper works for RLB financial services, a mortgage company. The company has opened a new branch in a developing country and Harper has been assigned the task of identifying all potential risks the company might face in that country. Harper has identified several possible events such as political unrest, ethnic riots, and natural calamities that would endanger the business continuity of the organization and has made plans to deal with each of these events. This is an example of _________.

a) scenario planning

b) performance appraisal

c) contingency planning

d) benchmarking

e) zero-based budgeting

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

200) Royal Dutch/Shell uses scenario planning to explore what the company would do if and when its oil supplies run out. For Royal Dutch/Shell, the benefits of scenario planning include which of the following?

a) It helps the organization to plan ahead to make major adjustments in strategies and operations.

b) It conditions the company’s executives to think.

c) It enables the company to be better prepared than competitors for future shocks.

d) all of the above

e) none of the above

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

201) ___ is a technique that makes use of both internal and external comparisons to better evaluate one’s current performance and identify possible actions for the future.

a) Contingency planning

b) Scenario planning

c) Forecasting

d) Management by objectives

e) Benchmarking

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

202) ___ is a planning technique that makes use of external comparisons to determine practices used by best-in-class companies to improve performance and identify possible actions for the future.

a) Contingency planning

b) Benchmarking

c) Scenario planning

d) Forecasting

e) Management by objectives

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

203) ___ refer to those things that are done by both competitors and non-competitors that enable them to achieve superior performance.

a) Competitive objects

b) Superior goals

c) Non-competitive objectives

d) Best practices

e) Operating activities

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

204) Riveras, a chain of discount stores, utilized the best retailing strategies of another successful retail chain to create a market for itself. By learning from the retail chain, Riveras has used ___.

a) qualitative forecasting

b) quantitative forecasting

c) scenario planning

d) external benchmarking

e) internal benchmarking

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

205) Morrison Associates, a law firm, encourages its lawyers to learn from each other about how they can handle their cases better. It encourages the lawyers to share their best practices and collectively work toward meeting the objectives of the firm. This is an example of ___.

a) internal benchmarking

b) forecasting

c) functional planning

d) tactical planning

e) external benchmarking

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

206) ___ are individuals who lead and coordinate the planning function for an organization or for one of its major components.

a) Staff planners

b) Project managers

c) Middle managers

d) Line managers

e) Collaborators

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

207) Which of the following is true about the use of staff planners?

a) It can lead to a communication gap between planners and implementers.

b) It can lead to an increase in commitment to implement the plans.

c) The use of staff planners can lead to a short-term rather than a long-term focus.

d) Very few organizations use staff planners as they don’t bring any expertise to the planning process.

e) The use of staff planners always reduces the focus of the planning team.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

208) Which of the following is true of a “great goal?”

a) It is not bound by timetables.

b) It is not too specific and challenging to accomplish.

c) It is challenging and can be objectively measured.

d) It is somewhat challenging and generic in nature.

e) it focuses on activities or effort expended with specific due dates for completion.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

209) When job performance is difficult to quantify, performance objectives can be stated as ___.

a) short-range plans

b) benchmarks

c) verifiable work activities

d) measurable end products

e) deliverables

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

210) The means-ends concept relates to ___.

a) hierarchy of authority

b) hierarchy of objectives

c) control system

d) responsibility structure

e) zero-based budget

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

211) As described by G. Latham and G. Seijts, effective goal setting management requires both.

a) a hierarchy of authority and a hierarchy of objectives

b) learning goals and outcome goals

c) a measurable end product and verifiable work activities

d) participatory planning and a hierarchy of goals

e) a vision and a strategy

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

212) Which of the following is true of participatory planning?

a) It reduces the time needed for planning.

b) It has less need for forecasting.

c) It pays greater attention to contingency situations.

d) It can improve results by improving implementation.

e) It decreases the creativity of planning.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

213) The use of participatory planning can produce all the following benefits except

a) increase creativity in planning.

b) increase commitment of people for planning.

c) increase acceptance of chosen alternatives.

d) increase conflict over scarce resources.

e) increase information available for planning.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Comprehension

Difficulty: Easy

AACSB: Analytic

214) ___ requires that the planning process include people who will be affected by the resulting plans and/or will be asked to help implement them.

a) Contingency planning

b) Scenario planning

c) Strategic planning

d) Participatory planning

e) Benchmarking

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

215) Silver Finance requires that its employees, managers, some customers, and others who will be affected by the resulting interest rate planning be included in the process. A selection from each of these groups may also be asked to participate in the implemention of the resulting overall interest rate structure rollout. Silver Finance is utilizing ___.

a) contingency planning

b) scenario planning

c) management by objectives

d) participatory planning

e) benchmarking

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

216) Which of the following goals is conducive to a management by objectives (MBO) process?

a) Improve productivity by 15.0%.

b) Increase sales within an year.

c) Improve training and customer service.

d) Decrease waste by 10.0% over the next eight months.

e) Reduce costs by 6.0%.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

217) In management by objectives (MBO), the supervisor/team leader and subordinates/team members formally agree on all the following except ___.

a) performance objectives for a specific time period

b) plans for accomplishing the performance objectives

c) standards for measuring the accomplishment of objectives

d) procedures for reviewing performance results

e) procedures for distributing rewards based on performance results

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Application

Difficulty: Medium

AACSB: Analytic

218) In a management by objectives (MBO) approach, the supervisor/team leader and subordinates/team members ___.

a) jointly plan, individually act, and individually control

b) individually plan, individually act, and jointly control

c) jointly plan, individually act, and jointly control

d) jointly plan, jointly act, and individually control

e) jointly plan, jointly act, and jointly control

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

219) Which of the following is not one of the advantages of management by objectives (MBO)?

a) MBO clearly focuses a person’s work efforts on the most important tasks and objectives.

b) MBO clearly focuses a person’s work efforts on the activities that are likely to result in the greatest rewards.

c) MBO focuses a supervisor’s work efforts on areas of support that can help subordinates meet agreed-upon objectives.

d) MBO contributes to relationship building.

e) MBO encourages self-management rather than external supervisory control.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

Question type: Essay

220) List and briefly describe the steps in the planning process.

1. Define your objectives––Identify desired outcomes or results in very specific ways. Know where you want to go; be specific enough so that you will know you have arrived when you get there or know how far off the mark you are at various points along the way.
2. Determine where you stand vis-à-vis objectives––Evaluate current accomplishments relative to the desired results. Know where you stand in reaching the objectives; know what strengths work in your favour and what weaknesses may hold you back.
3. Develop premises regarding future conditions––Try to anticipate future events. Generate alternative “scenarios” for what may happen; identify for each scenario things that may help or hinder progress toward your objectives.
4. Analyze alternatives and make a plan––List and carefully evaluate the possible actions that may be taken. Choose the alternative(s) most likely to accomplish your objectives; decide step by step what must be done to follow the chosen course of action.
5. Implement the plan and evaluate results––Take action and carefully measure your progress toward objectives. Do what the plan requires; evaluate results; take corrective actions and revise plans as needed.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

221) List and briefly describe the steps in the planning process. For each of the steps include a practical example that clearly demonstrates the step.

1. Define your objectives––Identify desired outcomes or results in very specific ways. Know where you want to go; be specific enough so that you will know you have arrived when you get there or know how far off the mark you are at various points along the way.

Example: To increase potential and existing customer visits to the organization’s Facebook page.
2. Determine where you stand vis-à-vis objectives––Evaluate current accomplishments relative to the desired results. Know where you stand in reaching the objectives; know what strengths work in your favour and what weaknesses may hold you back.

Example: A Facebook page exists for the organization, however when comparing it to other e-commerce pages there is no way to track visits or how someone feels about the page. A current weakness is that the company currently does not employ someone who is skilled at Facebook page development.
3. Develop premises regarding future conditions––Try to anticipate future events. Generate alternative “scenarios” for what may happen; identify for each scenario things that may help or hinder progress toward your objectives.

Example: Scenarios for the Facebook page development could include significant increase in sales so the organization would have to make sure their supply chain is able to handle the increased volume.
4. Analyze alternatives and make a plan––List and carefully evaluate the possible actions that may be taken. Choose the alternative(s) most likely to accomplish your objectives; decide step by step what must be done to follow the chosen course of action.

Example: Hire someone who specializes in marketing on Facebook
5. Implement the plan and evaluate results––Take action and carefully measure your progress toward objectives. Do what the plan requires; evaluate results; take corrective actions and revise plans as needed.

Example: Give the specialist free rein and all necessary resources to develop the Facebook page such that tracking is incorporated.

Note that the suggested example is a brief one, and student examples will definitely vary however the example should clearly identify with the specific step.

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Synthesis

Difficulty: Hard

AACSB: Reflective Thinking

222) Describe the benefits of planning for individuals and organizations.

Planning improves focus and flexibility. Focus and flexibility are important to the performance of both people and organizations in highly competitive and dynamic environments.
Planning improves action orientation. Planning keeps people and organizations focused on the actions that are needed to stay competitive and to become better at what they are doing. Planning helps make people and organizations more oriented toward results, priorities, advantages, and change.
Planning improves coordination. Planning helps individuals, groups, and subsystems within organizations make meaningful contributions to the organization as a whole, even as they pursue their specific tasks and objectives.
Planning improves control. Planning facilitates control by defining objectives and desired performance results, and identifying specific actions through which they are to be pursued.
Planning improves time management. Each day, managers are bombarded by a multitude of tasks and demands. They work in a setting of frequent interruptions, crises, and unexpected events. Consequently, it can be easy to lose track of objectives and fall prey to “time wasters.”

Learning Objective 8.1: Identify the importance of planning and steps in the planning process.

Section Reference 8.1: Why and How Managers Plan

Bloom’s: Knowledge

Difficulty: Medium

AACSB: Analytic

223) Three broad categories of plans were presented in your textbook: Long-term and short-term plans; Strategic and Tactical Plans and Operational Plans. Define or describe each of these plan categories, including, where applicable, the specific plans within each category.

Tactical plans are developed and used to implement strategic plans. They tend to be intermediate-term plans that specify step-by-step means for using the organization’s resources to put strategies into action. In business, tactical plans often take the form of functional plans that indicate how different components of the enterprise will contribute to the overall strategy. Such functional plans might include
Production plans—dealing with the methods and technologies needed by people in their work;
Financial plans—dealing with money and capital investments;
Facilities plans—dealing with facilities and work layouts;
Logistics plans—dealing with suppliers and the flow of raw materials and other product inputs.

Operational plans define what needs to be done in specific functions or work units to implement strategic plans. Also include, production plans, financial plans, facilities plans, marketing plans and human resource plans.
Policies and Procedures: Standing plans, in the form of organizational policies and procedures are designed for use over and over again. A policy communicates broad guidelines for making decisions and taking action in specific circumstances. Rules or procedures describe exactly what actions are to be taken in specific situations.
Budgets and Projects: Single-use plans are used once, serving the needs and objectives of well-defined situations in a timely manner. Budgets are single-use plans that commit resources to activities, projects, or programs. A fixed budget allocates a fixed amount of resources for a specific purpose. A flexible budget allows the allocation of resources to vary in proportion with various levels of activity. A zero-based budget allocates resources as if each budget was brand new. Projects are one-time activities that have clear beginning and end points.

Learning Objective 8.2: List and give examples of the types of plans used by managers.

Section Reference 8.2: Types of Plans Used by Managers

Bloom’s: Synthesis

Difficulty: Hard

AACSB: Analytic

224) Ajax Limited has prepared the following three budgets. For each budget indicate what type of budget it is and support your answer with a brief explanation.

Budget One:

Budget Two:

Budget Three:

Budget Two is an operating budget because it presents revenues, expenses and profit/loss.

Budget Three is a fixed budget because it presents amounts allocated for specific purposes.

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Evaluation

Difficulty: Hard

AACSB: Analytic

225) Identify and briefly describe each of the five major planning tools and techniques that managers use.

Forecasting is the process of predicting what will happen in the future.
Contingency planning involves identifying alternative courses of action that can be implemented, if and when an original plan proves inadequate because of changing circumstances.
Scenario planning is a long-term version of contingency planning that involves identifying several alternative future scenarios or states of affairs that may occur, and then making plans to deal with each scenario should it actually occur.
Benchmarking is a technique that makes use of internal and external comparisons to better evaluate current performance and identify possible actions to improve the future.
Staff planners are persons who take responsibility for leading and coordinating the planning function for the total organization or one of its major components

Learning Objective 8.3: Discuss useful planning tools and techniques.

Section Reference 8.3: Planning Tools and Techniques

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

226) List and briefly describe the five characteristics that great goals tend to have?

Specific—clearly targeted key results and outcomes to be accomplished.
Timely—linked to specific timetables and “due dates.”
Measurable—described so results can be measured without ambiguity.
Challenging—include a stretch factor that moves toward real gains.
Attainable—although challenging, realistic and possible to achieve.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Knowledge

Difficulty: Easy

AACSB: Analytic

227) Explain how participation and involvement can lead to effective management planning.

One of the things that research is most clear about is that when people participate in setting goals they gain motivation to work hard to accomplish them. Whether the focus is on planning for a team, a large division, or the entire organization, involving more people creates benefits. It goes a long way toward gaining their commitment to work hard and support the implementation of plans.
Involvement and participation in planning changes increases the probability that the concerns and interests of the parties involved are accounted for and this reduces their resistance to change. Participation can increase the creativity and information available for planning. It can also increase the understanding and acceptance of plans, as well as commitment to their success. Even though participatory planning takes more time, it can improve results by improving implementation of plans.
Through involvement, people buy into proposed changes and the change process. Participation leads to better acceptance and hence stronger commitment to implement the changes successfully and make them work.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic

228) Assume that you and your professor use management by objectives (MBO) to establish objectives for your performance in a course and to monitor your progress on achieving those objectives. Explain how the MBO process could work in this situation. What types of objectives would be set? How would objective attainment be assessed?

The subordinates’/team members’ performance objectives for a given time period.
The plans through which they will be accomplished.
Standards for measuring whether goals / results have been accomplished.
Procedures for reviewing results.

The MBO process follows the following steps:
The supervisor/team leader and subordinates/team members jointly set objectives, establish standards, and choose actions.
The subordinates/team members act individually to perform the agreed-upon tasks; and the supervisor/team leader acts individually to provide necessary support.
The supervisor/team leader and subordinates/team members jointly review results, discuss implications, and renew the MBO cycle.
The students should use the preceding material to guide their discussion of how an MOB contract might be established and administered between a student and a professor. Additionally, the students should use the concepts of improvement objectives, personal development objectives, and maintenance objectives in discussing the objectives to be set. Discussion should also focus on appropriate means for assessing the objectives that the students set.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Synthesis

Difficulty: Hard

AACSB: Reflective Thinking

229) Goals should be aligned so that employees achieving their individual goals will contribute to their department's achieving its goals. Moreover, goals must contain certain attributes to be implemented successfully. These important factors help make goals integral to successful organization performance. Describe the attributes that goals must have. How does goal alignment improve an organization’s performance?

Specific—clearly target key results and outcomes to be accomplished
Measurable—described so results can be measured without ambiguity
Attainable—challenging, including a stretch factor that moves toward real gains, yet, realistic and possible to achieve
Relevant—goals need to be referred to regularly to keep people focused on the task at hand
Timely—linked to specific timetables and “due dates”
Goals set anywhere in an organization should ideally help advance its overall mission or purpose. Goals should be aligned so that employees achieving their individual goals will contribute to their department's achieving its goals. Department goal achievement should contribute to the achievement of enterprise-wide strategic goals. Enterprise-wide strategic goals achievement should support the organization's mission and vision. Each member of the enterprise contributes something different, but everyone's efforts must pull in the same direction toward a common goal if the organization is to be successful.

Learning Objective 8.4: Explain how goals and participation influence planning success.

Section Reference 8.4: Implementing Plans to Achieve Results

Bloom’s: Analysis

Difficulty: Medium

AACSB: Analytic