Foundations of Planning Q/a

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Chapter 7 Foundations of Planning

True/False Questions


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)


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)


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)


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)


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)

Multiple-Choice Questions

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