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Schermerhorn-Management, 11th edition Test Bank
Chapter 8: Fundamentals of Planning
Introduction
1. Managers must have the insight and courage to be flexible in response to new circumstances.
3. Prioritization of tasks that you need to get done could include items that:A. You must doB. You should doC. You might doD. You should not doE. All of the above
Ans: EResponse: Page 185Difficulty: Moderate Ref: Learning About Yourself
4. Prioritization of tasks that you need to get done could include items that are considered:A. Most importantB. ImportantC. Least importantD. Not importantE. All of the above
10. Identify and describe the steps in the planning process.
Ans: The planning process consists of five steps that are followed in a sequential fashion. These steps are as follows:
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.
Step 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 favor and what weaknesses may hold you back.
Step 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.
Step 4: analyze and choose among action alternatives –– 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.
Step 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.
Response: Page187Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
11. Describe the benefits of planning for individuals and organizations.
Ans: The benefits of planning for individuals and organizations include the following: 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.”
Response: Page 188-189Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Analysis
12. Setting objectives and determining how they will be accomplished is the essence of the management function of __________.A. Productivity improvement.B. Controlling.C. Leading.D. Organizing.E. Planning.
Ans: EResponse: Page 186Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
13. __________ is the process of deciding exactly what one wants to accomplish and how to do it. A. Sales forecasting B. Planning.C. Needs analysis.D. Demand estimation.E. Program development.
Ans: BResponse: Page 186Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
14. Performance targets that we have to work extra hard and stretch to reach are __________.A. Stretch goalsB. Tactical goalsC. ObjectivesD. PlanningE. None of the above
Ans: AResponse: Page 187Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
15. Organizations that set ___________ do so knowing these goals will be difficult to reach and require extra hard work.
A. Challenge goalsB. Tactical goalsC. ObjectivesD. Stretch goalsE. None of the above
Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
16. Stretch goals are performance targets that require __________ and are a(n) _______ to reach.A. Extra money, challengeB. Extra hard work, stretchC. Extra hard work, easeD. Extra money, stretchE. None of the above
Ans: BResponse: Page 187Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
17. __________ is the management function that establishes the platform for further managerial efforts.A. Leading.B. Planning.C. Organizing.D. Controlling.E. Directing.
Ans: BResponse: Page 186Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
18. 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.
Ref: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
19. __________ is a statement of action steps to be taken in order to accomplish objectives.A. A plan.B. A solution.C. A guideline.D. An alternative.E. A goal.
Ans: AResponse: Page 187Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
20. Which one of the following alternatives lists the planning steps in proper order?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.
Ans: CResponse: Page 187Difficulty: HardRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Analysis
21. The planning process is a systematic way of approaching which of the following tasks?A. Setting performance objectives.B. Deciding how to best achieve performance objectives.
C. Ensuring that performance objectives have been attained.D. A and B.E. A, B, and C.
Ans: DResponse: Page 186Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
22. Which of the following statements accurately describes the benefits of planning?A. Planning improves action orientation.B. Planning improves coordination.C. Planning improves time management.D. A and B.E. A, B, and C.
Ans: EResponse: Page 186-187Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
23. Which of the following statements about focus is correct?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 is
able to retain that objective even in difficult circumstances.D. All of the above.E. None of the above.
Ans: DResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
24. Which of the following statements about flexibility is/are correct?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.
Ans: DResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Analysis
25. _____________occurs when an organization allows itself to be carried along by the flow of events.A. Planning coordinationB. Planning controlC. Complacency trapD. Strategic planningE. Forecasting
Ans: CResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
26. According to Covey, good planning helps an organization to be: A. Priority oriented, action oriented, advantage oriented, change orientedB. Priority oriented, action oriented, strategy oriented, tactically orientedC. Advantage oriented, change oriented, task oriented, control orientedD. Advantage oriented, change oriented, strategy oriented, action orientedE. Advantage oriented, change oriented, strategy oriented, decision oriented
Ans: AResponse: Page 188Difficulty: HardRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Analysis
27. Ensuring that all resources are used to best advantage is __________.A. Priority orientationB. Action orientationC. Advantage orientationD. Change orientationE. None of the above
Ans: DResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
28. Anticipating problems and opportunities so they can best be dealt with is using a(n) _________.A. Priority orientationB. Action orientationC. Advantage orientationD. Change orientationE. None of the above
Ans: DResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
29. Making sure the most important things get first attention is an example of ____________.A. Priority orientationB. Action orientationC. Advantage orientationD. Change orientationE. None of the above
Ans: AResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
30. 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.
Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Analysis
31. 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 solvingE. Controlling. … planning.
Ans: EResponse: Page 189Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Analysis
32. Effective __________ involves making choices concerning how to allocate your time to the most important priorities.A. Inventory management.B. Cash management.C. Time management.D. Project budgeting.E. Strategic management.
Ans: CResponse: Page 189Difficulty: ModerateRef: Why and How Managers PlanAACSB: Individual DynamicsBloom's Taxonomy: Comprehension
33. Effective time management includes all of the following except:A. Say no to requests that divert you from what you really should be doing.B. Have a system for screening telephone calls, e-mails, and requests for meetings.C. Don’t let drop-in visitors or instant messages use too much of your timeD. Follow priorities; work on the most important and urgent tasks first.E. Do not leave details for others to address or for later
Ref: Why and How Managers PlanAACSB: Individual DynamicsBloom's Taxonomy: Analysis
34. Which of the following statements about planning and controlling is/are accurate?A. Even the best plans will have to 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 CAns: E
Response: Page 186-189Difficulty: Moderate Ref: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Analysis
35. Stretch goals are performance targets that we have to work extra hard and really stretch to reach.
Ans: TrueResponse: Page 187Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
36. Stretch goals are performance targets that require a significant stretch of financial resources.
Ans: FalseResponse: Page 187Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
37. Setting performance targets that require you to work extra hard and really stretch to reach are considered stretch goals.
Ans: TrueResponse: Page 187Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
38. Organizations that utilize goals on performance requiring extra hard work and are a stretch to reach are considered tactical plans.
Ans: FalseResponse: Page 187Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
39. Good planning improves focus and flexibility.
Ans: TrueResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
40. Planning is the process of setting objectives and determining what should be done to accomplish them.
Ans: TrueResponse: Page 186Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
41. Planning is the process of deciding what you want to accomplish and how to do it.
Ans: TrueResponse: Page 186Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
42. Planning creates a solid platform for further managerial efforts at allocating and arranging resources to accomplish essential tasks, guiding the efforts of human resources to ensure high
Response: Page 183Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
47. Planning is an ongoing process engaged in simultaneously with other daily work processes.
Ans: TrueResponse: Page 187Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
48. 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.
Ans: TrueResponse: Page 187Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Analysis
49. The planning process is a systematic way of setting performance objectives and deciding how to best achieve them.
Ans: TrueResponse: Page 186Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
50. The planning process is a systematic way of ensuring that performance objectives have been attained.
Ans: FalseResponse: Page 186Difficulty: ModerateRef: Why and How Managers Plan
51. Effective planning improves focus and flexibility, provides an action orientation, helps to improve coordination, and facilitates better control and time management.
Ans: TrueResponse: Page 188-189Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
52. 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 is able to retain that objective even in difficult circumstances.
Ans: TrueResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Synthesis
53. An organization with flexibility is willing and able to change and adapt and operates with an orientation toward the future.
Ans: TrueResponse: Page 188Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
54. In regards to planning, the complacency trap occurs when organizations simply allow themselves to be carried along by the flow of events.
Ans: TrueResponse: Page 188Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
55. Planning provides action orientations for people and organizations that are results oriented, priority oriented, advantage oriented, and change oriented.
Ans: TrueResponse: Page 188Difficulty: EasyRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Knowledge
56. When plans are coordinated among the various systems and components of theorganization, there is greater likelihood that multiple accomplishments will addup to the desired results for the organization as a whole.
Ans: TrueResponse: Page 189Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Synthesis
57. 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.
Ans: TrueResponse: Page 188Difficulty: HardRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Synthesis
58. Planning enables control by defining objectives and using specialization to motivate employees.
Ans: FalseResponse: Page 189Difficulty: ModerateRef: Why and How Managers PlanAACSB: StrategyBloom's Taxonomy: Comprehension
63. According to Mankins and Steele writing in the Harvard Business Review, planning that is only engaged in periodically by organizations is called:A. Calendar drivenB. Strategy drivenC. Tactic drivenD. Functionally drivenE. Cost driven
Ans: AResponse: Page 192Difficulty: HardRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
64. Describe the types of plans used by managers.
Ans: Short-Range and Long-Range Plans: short-range plans cover 1 year or less, intermediate-
range plans cover 1 to 2 years, long-range plans look 3 or more years into the future. Top management is most likely to be involved in setting long-range plans.
Strategic and Operational Plans: strategic plans set broad, comprehensive and longer-term action directions. 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: 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.
Response: Page 190-193Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
65. Describe the difference between strategic and tactical plans.
Ans: Strategic plans are longer term plans that set broad and comprehensive directions for an organization, and that create a framework for allocating resources for maximum long term performance impact. Strategic planning begins with a vision that clarifies the purpose of the organization and expresses what it hopes to be in the future. It involves determining the goals and objectives that will be pursued in order to accomplish that vision. Also, it specifies how the organization will be positioned for competitive advantage in its external environment to accomplish those goals and objectives.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 technology needed by people in their work; Financial plans—dealing with money required to support various operations; Facilities plans—dealing with facilities and work layouts; Logistics plans—dealing with suppliers and the flow of raw materials and other product
inputs;Response: Page 191Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Analysis
66. 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.
Ans: DResponse: Page 190Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Analysis
67. Which level of management spends more time with long-range planning when compared to other levels of management?
A. Lower-level managers.B. Middle-level managers.C. Lower-level and middle-level managers.D. Top-level managers.E. All levels of management.
Response: Page 190Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
68. 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.
Ans: DResponse: Page 190Difficulty: HardRef: Types of Plans Used by ManagersAACSB: Individual DynamicsBloom's Taxonomy: Analysis
69. __________ plans set broad, comprehensive, and long-term action directions for the entire organization.A. Normal.B. Single-use.C. Strategic.D. Tactical.E. Operational.
Ans: CResponse: Page 191Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
70. Strategic planning begins with __________________A. Tactical planningB. VisionC. Time managementD. ForecastingE. None of the above
Ans: BResponse: Page 191Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
71. A ________________helps to implement all or parts of a strategic plan.A. Strategic planB. Tactical planC. Long range planD. Short range planE. Functional plan
Ans: BResponse: Page 191Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
72. Company LMN, a toy manufacturer, has discovered that one of its suppliers has used lead based paint on one of its products. It is Thanksgiving week. The Executive committee has assembled a team to devise a plan to mitigate the issue. LMN is using ____________A. Tactical planningB. Strategic planningC. Functional planningD. Production planningE. Mitigation planning
Ans: AResponse: Page 191Difficulty: HardRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Application
73. All of the following are examples of functional plans except:A. Logistics plansB. Facilities plansC. Human resources plansD. Operational plansE. Financial plans
Ans: DResponse: Page 191Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Analysis
74. 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 __________.A. Business plans.B. Implementing plans.C. Company plans.D. Tactical plans.E. Operational plans.
Ans: EResponse: Page 192Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
75. 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.
Ans: CResponse: Page 191-192Difficulty: HardRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Analysis
76. Typical functional plans in a business would include all of the following EXCEPT:A. Dealing with methods and technology needed by people in their work.B. Dealing with money required to support various operations.C. Dealing with requirements of selling and distributing goods or services.D. Dealing with company growth through mergers and acquisitions.E. Dealing with recruitment, selection, and placement of people into jobs.
Ans: DResponse: Page 191Difficulty: HardRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Analysis
77. Production plans, financial plans, facilities plans, marketing plans, and human resource plans are all examples of __________ plans.A. Strategic.B. Functional.C. Contingency.D. Standing-use.E. Flexible.
Ans: BResponse: Page 191Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
78. Policies and procedures used repeatedly in organizations are called __________.A. Single-use plans.B. Standing plans.C. Strategic plans.D. Scheduling plans.E. Individual plans.
Ans: BResponse: Page 191Difficulty: Easy Ref: Types of Plans Used by ManagersAACSB: Operations Management Bloom's Taxonomy: Knowledge
79. __________ communicate broad guidelines for making decisions and taking action in specific circumstances.A. RulesB. ProceduresC. PoliciesD. GuidelinesE. Regulations
Response: Page 192Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: Operations Management Bloom's Taxonomy: Knowledge
80. __________ 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.
Ans: AResponse: Page 193Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: Operations ManagementBloom's Taxonomy: Comprehension
81. __________ are often found in employee manuals as standard operating procedures.A. Goals.B. Rules.C. Budgets.D. A and B.E. A and C.
Ans: BResponse: Page 193Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: Operations ManagementBloom's Taxonomy: Comprehension
82. Which of the following statements best distinguishes between 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.
Ans: BResponse: Page 193Difficulty: HardRef: Types of Plans Used by Managers
83. 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.
Ans: EResponse: Page 192-193Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: Operations ManagementBloom's Taxonomy: Application
84. A __________ budget allocates a fixed amount of resources for a specific purpose.A. Fixed.B. Flexible.C. Zero-based.D. Contingency.E. Comprehensive.
Ans: AResponse: Page 193Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
85. 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.
Ans: DResponse: Page 193Difficulty: ModerateRef: Types of Plans Used by Managers
86. 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 low demand 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.
Ans: BResponse: Page 193Difficulty: HardRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Application
87. ACME Manufacturing budgets a project or activity in each new budget period as if it were brand new. ACME is using a(n) __________ budgeting approach is being used.A. Fixed.B. Flexible.C. Zero-based.D. Contingency.E. Operational.
Ans: CResponse: Page 193Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Application
88. Short-range plans cover one year or less into the future.
Ans: TrueResponse: Page 190Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
89. Long-range plans cover a time frame of at least six years into the future.
Ans: FalseResponse: Page 190Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
90. Top-level managers spend more time with long-range planning than other levels of management.
Ans: TrueResponse: Page 190Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
91. Elliot Jacques suggests that all managers, regardless of their levels, will use the same time horizon to plan their work activities.
Ans: FalseResponse: Page 190Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
92. Strategic plans set broad, comprehensive, and long-term action directions for the entire organization.
Ans: TrueResponse: Page 191Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
93. 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.
Ans: FalseResponse: Page 191-192Difficulty: HardRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Application
94. An organization’s vision clarifies the purpose of the organization and expresses what it hopes to become in the future.
Ans: TrueResponse: Page 191Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
95. A tactical plan helps implement the entire strategic plan or at least parts of this plan.
Ans: TrueResponse: Page 191Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
96. Tactical plans tend to be intermediate-term plans that specify step by step means for using the organization’s resources to put strategies into action.
Ans: TrueResponse: Page 191Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Comprehension
97. A functional plan indicates how different operations within the organization will help advance the overall strategy of the organization.
Response: Page 191Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
98. Examples of functional plans include production plans, financial plans, logistics plans, and HR plans.
Ans: TrueResponse: Page 191Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
99. Operational plans define what needs to be done in specific functions or work units in order to implement strategic plans and achieve strategic objectives.
Ans: TrueResponse: Page 192Difficulty: EasyRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
100. Operational plans form the foundation for strategic plans, whereas strategic plans specify the activities and resources that are needed to carry out the operational plans.
Ans: FalseResponse: Page 192Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: StrategyBloom's Taxonomy: Knowledge
101. Policies and procedures are single-use plans for meeting the needs of a well-defined situation in a timely manner.
Ans: FalseResponse: Page 193Difficulty: ModerateRef: Types of Plans Used by Managers
Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: Operations ManagementBloom's Taxonomy: Comprehension
111. Fixed budgets define specific task objectives, link activities to be accomplished with due dates, and identify the amounts and timing of resource requirements.
Ans: FalseResponse: Page 193Difficulty: ModerateRef: Types of Plans Used by ManagersAACSB: Operations ManagementBloom's Taxonomy: Comprehension
Planning Tools and Techniques
112. __________ is the process of predicting what will happen in the future.A. Contingency planning.B. Visioning.C. Identifying objectives.D. Foretelling.E. Forecasting.
113. 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.
Ans: CResponse: Page 194Difficulty: ModerateRef: Planning Tools and Techniques
114. ABC Inc. utilizes mathematical and statistical analyses of historical data and surveys to predict future events. This process is called __________.A. Quantitative forecasting.B. Guesswork.C. Qualitative forecasting.D. Contingency planning.E. Expert planning.
115. 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.
116. 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.
Ans: AResponse: Page 194-195Difficulty: HardRef: Planning Tools and Techniques
117. __________ is a long-term version of contingency planning.A. Forecasting.B. Benchmarking.C. Participation.D. Scenario planning.E. Flexible budgeting.
118. Identifying alternative future states of affairs that may occur and then developing plans to deal with each case should it actually occur is known as __________.A. Forecasting.B. Scenario planning.C. Benchmarking.D. Participation.E. Contingency planning.
119. British Petroleum uses scenario planning to explore what the company would do if and when its oil supplies run out. For BP, 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.
Ans: DResponse: Page 195Difficulty: ModerateRef: Planning Tools and Techniques
120. __________ is a technique that makes use of 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.
121. __________ is a planning technique that makes use of external comparisons to determine practices used by best-in-class companies in an effort to improve performance and identify possible actions for the future.A. Contingency planning.B. Benchmarking.C. Scenario planning.D. Forecasting.E. Management by objectives.
122. The purpose of __________ is to find out what other people and organizations are doing very well, and planning how to incorporate these ideas into one’s own operations.A. Contingency planning.B. Scenario planning.C. Benchmarking.D. Forecasting.E. Participation.
Ref: Planning Tools and TechniquesAACSB: StrategyBloom's Taxonomy: Comprehension
123. __________ refer to those things that are done by both competitors and noncompetitors that enable them to achieve superior performance. A. Competitive goodies.B. Superior goals.C. Noncompetitive objectives.D. Best practices.E. Operating activities.
124. __________ are individuals who lead and coordinate the planning function for an organization as a whole or for one of its major components.A. Staff planners.B. Project managers.C. Middle managers.D. Line managers.E. Collaborators.
125. An important risk associated with the use of staff planners is the __________ that can develop between staff planners and line managers.A. resistance to assistanceB. communication gapC. skill discrepanciesD. argumentE. identity crisis
Ref: Planning Tools and TechniquesAACSB: Individual DynamicsBloom's Taxonomy: Analysis
126. Identify and briefly describe each of the six major planning tools and techniques that managers use and give examples of how they are used.
Ans: The six major planning tools and techniques that managers use are identified and described below:
Forecasting is the process of making assumptions about 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 should it actually occur.
Benchmarking is a technique that makes use of external comparisons to better evaluate current performance and identify possible future actions.
Participative 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.
Staff planners are persons who take responsibility for leading and coordinating the planning function for the total organization or one of its major components.
130. 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.
137. Scenario planning involves identifying alternative future scenarios that may occur and then developing plans to deal with each scenario should it actually occur.
138. Scenario planning helps Royal Dutch/Shell make major adjustments in strategies and operations and to be better prepared than competitors for future shocks.
145. Effective goals resulting in plans being successfully implemented with high performance are all of the following except:A. SpecificB. TimelyC. Measurable
146. A means-ends chain is also known as a __________.A. Hierarchy of authority.B. Hierarchy of objectives.C. Control system.D. Responsibility structure.E. Zero-based budget.
147. In the means-ends chain, __________ objectives are ends that are directly tied to __________ objectives as the means for their accomplishment.A. Lower-level lower-level.B. Lower-level higher-level.C. Moderate-level moderate-levelD. Higher-level lower-level.E. Higher-level higher-level.
148. On those jobs where 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.
149. ACME Financial requires their planning process to include people who will be affected by the resulting plans and/or will be asked to help implement them. ACME is utilizing ______.A. Contingency planning.B. Scenario planning.C. Strategic planning.D. Participatory planning.E. Benchmarking.
150. The use of participatory planning can produce all of 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.
152. The CEO of Cypress Semi Conductors, T.J. Rodgers, provides employees with clear and quantified work goals which help managers and employees to identify problems before they interfere with performance.
158. 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.
159. The use of participatory planning can increase creativity in planning, the commitment of people for planning, and the information available for planning.
162. While participation in the planning process can increase the amount of time spent in planning, it nonetheless can enhance results by improving implementation.