Chapter 7 – Foundations of PlanningTrue/False Questions4. Research indicates that managers who plan always outperformmanagers who do not plan.False (moderate)9. Plans that specify the details of achievement of the overall objectivesare called operational plans.True (difficult)10. Directional plans have clearly defined objectives.False (moderate)12. Standing plans are created in response to programmed decisions thatmanagers make and include policies, rules, and procedures.True (moderate)13. The greater the environmental certainty, the more plans need to bedirectional and emphasis placed on the short term.False (moderate)22. An organization's real goals are what they actually plan onaccomplishing, rather than what they hope to accomplish.False (moderate)24. Real goals are official statements of what an organization says itsgoals are.False (easy)Multiple Choice36. One purpose of planning is that it minimizes ______________ and______________.a. cost; timeb. time; personnel needsc. waste; redundancy (difficult)d. time; wastee. mistakes; cost38. What does the evidence suggest about organizations that plancompared to organizations that do not plan?a. Planning organizations always outperform nonplanningorganizations.b. Nonplanning organizations always outperform planningorganizations.c. Planning organizations generally outperform nonplanningorganizations (easy)d. Nonplanning organizations generally outperform planningorganizations.e. They generally perform at about the same level.45. Which of the following is the foundation of planning?a. employeesb. goals (easy)c. outcomesd. computerse. the planning department46. According to the text, _____________ are documents that outline howgoals are going to be met and which typically describe resource allocations, schedules, and other necessary actions to accomplish the goals.a. strategiesb. goalsc. plans (moderate)d. policiese. procedures50. Which of the following is true concerning an organization's statedobjectives?a. They issue identical objectives to all constituents.b. Organizations typically have internal and external sets ofobjectives.c. They may issue different objectives to stockholders,customers, employees, and the public.(moderate)d. It is illegal to issue conflicting stated objectives.e. Stated objectives are usually in line with short-term actions.54. What should a person do to understand what are the real objectives ofthe organization?a. observe organizational member actions (moderate)b. attend a stockholders annual meetingc. read their statement of purposed. read their annual reporte. watch television news reports59. When we categorize plans as being single-use versus standing, wecategorize them by ______________.a. breadth.b. specificity.c. frequency of use. (easy)d. depth.e. time frame.61. Based on the information presented in the text, ______________ areshort term, specific, and standing.a. operational (moderate)b. long-termc. strategicd. specifice. directional67. An organizational plan that has a 6-year time frame would beconsidered what type of plan?a. operationalb. short-termc. strategicd. intermediatee. long-term (moderate)68. Strategic plans tend to include a time period of usually______________.a. 1 year.b. 1-3 years.c. 3 years or more. (moderate)d. 5 years or more.e. at least 10 years.71. Compared to directional plans, what type of plan has clearly definedobjectives?a. strategicb. single-usec. short-termd. specific (moderate)e. standing76. Planning accuracy with a high degree of environmental change tendsto produce which of the following results?a. Planning accuracy is likely.b. Planning accuracy becomes much more important.c. Planning accuracy becomes less important.d. Planning accuracy is less likely. (moderate)e. Planning accuracy occurs in the long-run.78. A ______________ plan is a one-time plan designed to meet the needsof a unique situation and created in response to nonprogrammed decisions that managers make.a. single-use (easy)b. short-termc. directionald. standinge. strategic79. A small town's preparation for a visit by the President of the UnitedStates would be considered what type of plan?a. strategicb. directionalc. standingd. long-terme. single-use (moderate)81. A city's policy concerning skateboarding on downtown sidewalksproviding guidance for police action would be considered what type of plan?a. standing (difficult)b. contingencyc. directionald. single-usee. strategic84. Where in the organizational hierarchy are traditional goalsdetermined?a. front-line employeesb. team leadersc. lower-level managersd. middle managerse. top managers (moderate)89. A management system in which specific performance goals are jointlydetermined by employees and their managers is known as ______________.a. management by objectives. (moderate)b. means-ends chain.c. traditional goal setting.d. management by opinions.91. Which of the following is not one of the four common elements ofManagement By Objectives (MBO)?a. goal specificityb. participative decision-makingc. an explicit time periodd. a systems loop (difficult)e. performance feedback93. Management By Objectives (MBO) can be described by which of thefollowing statements?a. an autocratic systemb. a "bottom up" systemc. a "top down" systemd. both a "top down" and a "bottom up" system (difficult)e. a static system105. According to the boxed feature, “Managing in an E-Business World,”probably the biggest change for planning in e-business is that ______________.a. the environment is more stable.b. customers are calling the shots. (moderate)c. employees are making the demands.d. only a few competitors exist.Essay Questions122. In a short essay, list and discuss the four reasons for planning.Answera. Planning establishes coordinated effort. It gives direction tomanagers and nonmanagers alike. When employees knowwhere the organization or work unit are going and what theymust contribute to reach goals, they can coordinate theiractivities, cooperate with each other, and do what it takes toaccomplish those goals. Without planning, departments andindividuals might be working at cross-purposes, preventing theorganization from moving efficiently toward its goals.b. Planning reduces uncertainty by forcing managers to look ahead,anticipate change, consider the impact of change, and developappropriate responses. It also clarifies the consequences ofactions managers might take in response to change. Eventhough planning can’t eliminate change, managers plan in orderto anticipate changes and develop the most effective response tothem.c. Planning reduces overlapping and wasteful activities. Whenwork activities are coordinated around established plans, wastedtime and resources and redundancy can be minimized.Furthermore, when means and ends are made clear throughplanning, inefficiencies become obvious and can be corrected oreliminated.d. Planning establishes goals or standards that are used incontrolling. If managers are unsure of what they are trying toaccomplish, they will be unable to determine whether or not thegoal has actually been achieved. In planning, goals and plansare developed. Then, through controlling, actual performance iscompared against the goals, significant deviations are identified,and necessary corrective action is taken. Without planning,there would be no way to control.(moderate)127. In a short essay, list and discuss five characteristics of well-defined goals.Answer(1) A well-designed goal should be written in terms of outcomes ratherthan actions. The desired end result is the most important element of any goal and, therefore, the goal should be written to reflect this. (2)Next, a goal should be measurable and quantifiable. It’s much easier to determine if a goal has been met if it’s measurable. In line withspecifying a quantifiable measure of accomplishment, (3) a well-designed goal should also be clear as to a time frame. Although open-ended goals may seem preferable because of their supposed flexibility, in fact, goals without a time frame make an organization less flexiblebecause a manager is never sure when the goal has been met or when he or she should call it quits because the goal will never be met regardless of how long he or she works at it. (4) Next a well-designed goal should be challenging but attainable. Goals that are too easy to accomplish are not motivating and neither are goals that are not attainable even withexceptional effort. (5) Next, well-designed goals should be writtendown. Although actually writing down goals may seem too timeconsuming, the process of writing the goals forces people to think them through. In addition, the written goals become visible and tangible evidence of the importance of working toward something. (6) Finally, well-designed goals are communicated to all organizational members who need to know the goals. Making people aware of the goals ensures that they’re “on the same page” and working in ways to ensure the accomplishment of the organizational goals.(moderate)128. In a short essay, list and discuss the five steps in the goal-setting process.Answera. Step 1: Review the organization’s mission, the purpose of theorganization. These broad statements of what the organization’spurpose is and what it hopes to accomplish provide an overallguide to what organizational members think is important. It’simportant to review these statements before writing goalsbecause the goals should reflect what the mission statement says.b. Step 2: Evaluate available resources. A manager doesn’t wantto set goals that are impossible to achieve given the availableresources. Even though goals should be challenging, theyshould be realistic. If the resources a manager has to work withdoesn’t allow for the achievement of that goal no matter howhad the manager tries of how much effort is exerted, that goalshouldn’t be set.c. Step 3: Determine individually, or with input from others, thegoals. These goals reflect desired outcomes and should becongruent with the organizational mission and goals in otherorganizational areas. These goals should be measurable,specific, and include a time frame for accomplishment.d. Step 4: Write down the goals and communicate them to all whoneed to know. Writing goals down forces people to think themthrough and also makes those goals visible and tangible evidenceof the importance of working toward something.e. Step 5: Review results and whether goals are being met. Makechanges, as needed. Once the goals have been established,written down, and communicated, a manager is ready to developplans for pursuing the goals.(difficult)129. In a short essay, list and discuss the three contingency factors that affect planning.Answera. Level in the organization – for the most part, operationalplanning dominates managers’ planning efforts at lower levels.At higher organizational levels, the planning becomes morestrategy oriented.b. Degree of environmental uncertainty – when environmentaluncertainty is high, plans should be specific, but flexible.Managers must be prepared to reword and amend plans asthey’re implemented. At times, managers may even have toabandon their plans.c. Length of future commitments – the more that current plansaffect future commitments, the longer the time frame for whichmanagers should plan. This commitment concept means thatplans should extend far enough to meet those commitmentsmade when the plans were developed. Planning for too long orfor too short a time period is inefficient and ineffective.(moderate)。