WHAT IS PLANNING?
1. Planning is concerned with how objectives are to be accomplished, not what is to be accomplished. (False; easy; p. 184)
2. If a manager refuses to write anything down or share his plans with others in the organization, he is not truly planning. (False; moderate; p. 184)
WHY DO MANAGERS PLAN?
3. Planning provides direction to managers and nonmanagers alike. (True; easy; p. 185)
4. Even without planning, departments and individuals always work together, allowing organizations to move efficiently toward its goals. (False; moderate; p. 185)
5. Research indicates that nonplanning organizations always outperform planning organizations. (False; moderate; p. 185)
HOW DO MANAGERS PLAN?
6. Goals are the foundation of organizational planning.
(True; moderate; p. 186)
7. Most businesses have only one objective: to make a profit. (False; easy; p. 186)
8. Most companies’ goals can be classified as either strategic or financial. (True; moderate; p. 187)
9. Strategic goals are related to the financial performance of the organization. (False; moderate; p. 187)
10. An organization’s real goals are often quite irrelevant to what actually goes on. (False; easy; p. 189)
11. Operational plans specify the details of how the achievement of the overall objectives is to be obtained. (True; moderate; p. 189)
12. Long term used to mean anything over three years, but now it means anything over one year. (False; easy; p. 189)
13. Short-term plans are those covering one year or less.
(True; easy; p. 189)
14. Directional plans have clearly defined objectives.
(False; moderate; p. 190)
ESTABLISHING GOALS AND DEVELOPING PLANS
15. An integrated network of goals is sometimes called a means-end chain. (True; moderate; p. 192)
16. In MBO, or management by objectives, goals are often less well-defined, giving managers and employees more flexibility to respond to changing conditions. (False; moderate; p. 192)
17. In a typical MBO program, successful achievement of objectives is reinforced by performance-based rewards. (True; moderate; p. 193)
18. An MBO program consists of four elements: loose goals, participative decision making, an explicit time period, and performance feedback. (False; difficult; p. 193)
19. Studies of actual MBO programs find mixed results in terms of its effects on overall employee performance and organizational productivity. (False; difficult; p. 193)
20. In times of dynamic environmental change, well-defined and precisely developed action plans enhance organizational performance. (False; moderate; p. 193)
21. A well-designed goal should be measurable and quantifiable. (True; easy; p. 194)
22. Goals that are too easy to accomplish are not motivating and neither are goals that are not attainable even with exceptional effort. (True; moderate; p. 194)
23. The second step in goal setting is to determine the goals individually or with input from others. (False; moderate; p. 195)
24. The more the current plans affect future commitments, the longer the time frame for which managers should plan. (True; difficult; p. 196)
CONTEMPORARY ISSUES IN PLANNING
25. Planning is a waste of time in a volatile environment.
(False; easy; p. 198)
26. A major argument against formal plans can’t replace intuition and creativity. (True; easy; p. 198)
27. It’s not enough for managers just to plan. They have to start setting goals. (False; moderate; p. 199)
28. In today’s dynamic business environment, successful firms recognize that planning is an ongoing process, not a tablet of rules cast in stone. (True; moderate; p. 200)
29. Managers must be able to follow through with plans even if conditions change. (False; moderate; p. 200)
30. Effective planning in dynamic environments means flattening the organizational hierarchy. (True; moderate; p. 200)