Chapter 7 Exercise

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Management, 10e (Robbins) Chapter 7 Foundations of Planning
1) Planning is concerned with how objectives are to be accomplished, not what is to be accomplished. 2) Planning provides direction to managers and nonmanagers alike. 3) Even without planning, departments and individuals always work together, allowing organizations to move efficiently toward its goals.

4) Research indicates that nonplanning organizations always outperform planning organizations. 5) Goals are the foundation of organizational planning.
6) Most businesses have only one objective: to make a profit. 7) Most companies' goals can be classified as either strategic or financial. 8) Goals and objectives are two terms used interchangeably in the planning process. 9) Strategic goals are related to the financial performance of the organization. 10) An organization's real goals are often quite irrelevant to what actually goes on. 11) Strategic plans can be categorized as long term, directional, and single use 12) Operational plans encompass a particular operational area of the organization. 13) Long term used to mean anything over three years, but now it means anything over one year. 14) Short-term plans are those covering one year or less.

15) Directional plans have clearly defined objectives.
16) When uncertainty is high and managers must be flexible in order to respond to unexpected changes, directional plans are preferable.
17) An integrated network of goals is sometimes called a means-end chain. 18) In MBO, or management by objectives, goals are often less well-defined, giving managers and employees more flexibility to respond to changing conditions.

19) In a typical MBO program, successful achievement of objectives is reinforced by performance-based rewards.
20) An MBO program consists of four elements: loose goals, participative decision making, an explicit time period, and performance feedback.
21) Studies of actual MBO programs find mixed results in terms of its effects on overall employee performance and organizational productivity.
22) In times of dynamic environmental change, well-defined and precisely developed action plans enhance organizational performance.
23) A well-designed goal should be measurable and quantifiable. 24) Goals that are too easy to accomplish are not motivating and neither are goals that are not attainable even with exceptional effort.

25) The second step in goal setting is to determine the goals individually or with input from others. 26) The more the current plans affect future commitments, the longer the time frame for which managers should plan.

27) Planning is a waste of time in a volatile environment.
28) A major argument against formal plans is that they can't replace intuition and creativity. 29) One criticism of planning is that it's not enough for managers just to plan. 30) In today's dynamic business environment, successful firms recognize that planning is an ongoing process, not a tablet of rules cast in stone.

31) Managers must be able to follow through with plans even if conditions change. 32) Effective planning in dynamic environments means flattening the organizational hierarchy. 33) Planning involves defining the organization's goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans ________. A) as to which shift will perform what work functions

B) to determine which manager will be in charge of which department C) for organizational work activities
D) to establish the quality and quantity of work to be accomplished 34) In formal planning, ________.
A) specific goals covering a period of years are defined
B) specific goals are developed and not written
C) general goals are developed and not written
D) general goals covering an unspecified period of years are defined 35) Formal planning involves which of the following aspects? A) developing general objectives
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