Ch08 Test Bank

Schermerhorn-Management, 11
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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.
ns! True
"esponse! #age 1$%
&ifficult'! (as'
"ef! )ntroduction
*SB! )ndividual &'namics
Bloom+s Taxonom'! ,nowledge
Learning From Others
-. .prah /infre' discovered that even the best plans can go wrong when she opened her leadership
academ' in South frica.
ns! True
"esponse! #age 1$0
&ifficult'! Moderate
"ef! 1earning 2rom .thers
*SB! .perations Management
Learning About Yourself
3. #rioriti4ation of tasks that 'ou need to get done could include items that!
. 5ou must do
B. 5ou should do
*. 5ou might do
&. 5ou should not do
(. ll of the above
ns! (
"esponse! #age 1$6
"ef! 1earning bout 5ourself
*op'right 7 -811 9ohn /ile' : Sons, )nc.
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0. #rioriti4ation of tasks that 'ou need to get done could include items that are considered!
. Most important
B. )mportant
*. 1east important
&. ;ot important
(. ll of the above
ns! (
"esponse! #age 1$6
6. Time wasters can impact 'our abilit' to manage 'our time effectivel'. ccording to 'our text,
these time wasters could include!
. Things 'ou can control
B. Things 'ou cannot control
*. Both : B
&. ;one of the above
ns! *
"esponse! #age 1$6
%. Time wasters can include those things that 'ou can control as well as some 'ou cannot control.
ns! True
"esponse! #age 1$6
&ifficult'! (as'
<. #rioriti4ing 'our activities for the da' could include items considered to be! Most important,
)mportant, 1east )mportant and ;ot )mportant.
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ns! True
"esponse! #age 1$6
&ifficult'! (as'
$. #rioriti4ing 'our activities for the da' could include items 'ou! must do, should do, might do and
should not do.
ns! True
"esponse! #age 1$6
&ifficult'! (as'
=. ccording to one surve', interruptions can steal -$> of the average worker?s da'.
ns! True
"esponse! #age 1$6
Why and o! "anagers Plan
18. )dentif' and describe the steps in the planning process.
ns! The planning process consists of five steps that are followed in a se@uential fashion. These steps
are as follows!
Step 1! define 'our obAectives BB )dentif' desired outcomes or results in ver' specific
wa's. ,now where 'ou want to goC be specific enough so that 'ou will know 'ou have
arrived when 'ou get there, or know how far off the mark 'ou are at various points along
the wa'.
Step -! determine where 'ou stand vis-D-vis obAectives BB (valuate current
accomplishments relative to the desired results. ,now where 'ou stand in reaching the
obAectivesC know what strengths work in 'our favor and what weaknesses ma' hold 'ou
back.
Step 3! develop premises regarding future conditions BB Tr' to anticipate future events.
Eenerate alternative scenarios for what ma' happenC identif' for each scenario things that
ma' help or hinder progress toward 'our obAectives.
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Step 0! anal'4e and choose among action alternatives BB 1ist and carefull' evaluate the
possible actions that ma' be taken. *hoose the alternativeFsG most likel' to accomplish
'our obAectivesC decide step b' step what must be done to follow the chosen course of
action.
Step 6! implement the plan and evaluate results BB Take action and carefull' measure
'our progress toward obAectives. &o what the plan re@uiresC evaluate resultsC take
corrective actions and revise plans as needed.
"esponse! #age1$<
"ef! /h' and How Managers #lan
*SB! Strateg'
Bloom+s Taxonom'! *omprehension
11. &escribe the benefits of planning for individuals and organi4ations.
ns! The benefits of planning for individuals and organi4ations include the following!
#lanning improves focus and flexibilit'. 2ocus and flexibilit' are important to the
performance of both people and organi4ations in highl' competitive and d'namic
environments.
#lanning improves action orientation. #lanning keeps people and organi4ations focused
on the actions that are needed to sta' competitive and to become better at what the' are
doing. #lanning helps make people and organi4ations more oriented toward results,
priorities, advantages, and change.
#lanning improves coordination. #lanning helps individuals, groups, and subs'stems
within organi4ations make meaningful contributions to the organi4ation as a whole, even
as the' pursue their specific tasks and obAectives.
#lanning improves control. #lanning facilitates control b' defining obAectives and desired
performance results, and identif'ing specific actions through which the' are to be
pursued.
#lanning improves time management. (ach da', managers are bombarded b' a multitude
of tasks and demands. The' work in a setting of fre@uent interruptions, crises, and
unexpected events. *onse@uentl', it can be eas' to lose track of obAectives and fall pre'
to Itime wasters.J
"esponse! #age 1$$-1$=
*SB! Strateg'
Bloom+s Taxonom'! nal'sis
1-. Setting obAectives and determining how the' will be accomplished is the essence of the
management function of KKKKKKKKKK.
. #roductivit' improvement.
B. *ontrolling.
*. 1eading.
&. .rgani4ing.
(. #lanning.
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ns! (
"esponse! #age 1$%
&ifficult'! (as'
*SB! Strateg'
13. KKKKKKKKKK is the process of deciding exactl' what one wants to accomplish and how to do it.
. Sales forecasting
B. #lanning.
*. ;eeds anal'sis.
&. &emand estimation.
(. #rogram development.
ns! B
"esponse! #age 1$%
&ifficult'! (as'
*SB! Strateg'
10. #erformance targets that we have to work extra hard and stretch to reach are KKKKKKKKKK.
. Stretch goals
B. Tactical goals
*. .bAectives
&. #lanning
(. ;one of the above
ns!
"esponse! #age 1$<
&ifficult'! (as'
*SB! Strateg'
16. .rgani4ations that set KKKKKKKKKKK do so knowing these goals will be difficult to reach and
re@uire extra hard work.
. *hallenge goals
B. Tactical goals
*. .bAectives
&. Stretch goals
ns! &
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"esponse! #age 1$<
*SB! Strateg'
1%. Stretch goals are performance targets that re@uire KKKKKKKKKK and are aFnG KKKKKKK to reach.
. (xtra mone', challenge
B. (xtra hard work, stretch
*. (xtra hard work, ease
&. (xtra mone', stretch
ns! B
"esponse! #age 1$<
*SB! Strateg'
1<. KKKKKKKKKK is the management function that establishes the platform for further managerial
efforts.
. 1eading.
B. #lanning.
*. .rgani4ing.
&. *ontrolling.
(. &irecting.
ns! B
"esponse! #age 1$%
&ifficult'! (as'
*SB! Strateg'
1$. )n the planning process, KKKKKKKKKK refer to the specific results or desired outcomes that one
intends to achieve.
. Euidelines.
B. .bAectives.
*. #rocedures.
&. #olicies.
(. lternatives.
ns! B
"esponse! #age 1$<
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&ifficult'! (as'
*SB! Strateg'
1=. KKKKKKKKKK is a statement of action steps to be taken in order to accomplish obAectives.
. plan.
B. solution.
*. guideline.
&. n alternative.
(. goal.
ns!
"esponse! #age 1$<
&ifficult'! (as'
*SB! Strateg'
-8. /hich one of the following alternatives lists the planning steps in proper orderL
. &efine obAectives, determine current standing relative to obAectives, evaluate current
accomplishments, anal'4e and choose among possible action alternatives, and implement the
plan and evaluate results.
B. &efine obAectives, develop premises regarding future conditions, determine current standing
relative to obAectives, anal'4e and choose among possible action alternatives, and implement
the plan and evaluate results.
*. &efine obAectives, determine current standing relative to obAectives, develop premises
regarding future conditions, anal'4e and choose among possible action alternatives, and
implement the plan and evaluate results.
&. &etermine current standing relative to obAectives, define obAectives, develop premises
regarding future conditions, anal'4e and choose among possible action alternatives, and
implement the plan and evaluate results.
(. &evelop premises regarding future conditions, define obAectives, determine current standing
relative to obAectives, anal'4e and choose among possible action alternatives, and implement
the plan and evaluate results.
ns! *
"esponse! #age 1$<
&ifficult'! Hard
*SB! Strateg'
-1. The planning process is a s'stematic wa' of approaching which of the following tasksL
. Setting performance obAectives.
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B. &eciding how to best achieve performance obAectives.
*. (nsuring that performance obAectives have been attained.
&. and B.
(. , B, and *.
ns! &
"esponse! #age 1$%
*SB! Strateg'
--. /hich of the following statements accuratel' describes the benefits of planningL
. #lanning improves action orientation.
B. #lanning improves coordination.
*. #lanning improves time management.
&. and B.
(. , B, and *.
ns! (
"esponse! #age 1$%-1$<
*SB! Strateg'
-3. /hich of the following statements about focus is correctL
. n organi4ation with focus knows what it does best.
B. n organi4ation with focus knows the needs of its customers and knows how to serve them
well.
*. n individual with focus knows where he or she wants to go in a career or situation and is
able to retain that obAective even in difficult circumstances.
&. ll of the above.
(. ;one of the above.
ns! &
"esponse! #age 1$$
*SB! Strateg'
-0. /hich of the following statements about flexibilit' isMare correctL
. n organi4ation with flexibilit' is willing and able to change and adapt.
B. n organi4ation with flexibilit' operates with an orientation toward the future.
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*. n individual with flexibilit' adAusts career plans to fit new and developing opportunities.
&. ll of the above.
ns! &
"esponse! #age 1$$
*SB! Strateg'
-6. KKKKKKKKKKKKKoccurs when an organi4ation allows itself to be carried along b' the
flow of events.
. #lanning coordination
B. #lanning control
*. *omplacenc' trap
&. Strategic planning
(. 2orecasting
ns! *
"esponse! #age 1$$
*SB! Strateg'
-%. ccording to *ove', good planning helps an organi4ation to be!
. #riorit' oriented, action oriented, advantage oriented, change oriented
B. #riorit' oriented, action oriented, strateg' oriented, tacticall' oriented
*. dvantage oriented, change oriented, task oriented, control oriented
&. dvantage oriented, change oriented, strateg' oriented, action oriented
(. dvantage oriented, change oriented, strateg' oriented, decision oriented
ns!
"esponse! #age 1$$
&ifficult'! Hard
*SB! Strateg'
-<. (nsuring that all resources are used to best advantage is KKKKKKKKKK.
. #riorit' orientation
B. ction orientation
*. dvantage orientation
&. *hange orientation
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ns! &
"esponse! #age 1$$
*SB! Strateg'
-$. nticipating problems and opportunities so the' can best be dealt with is using aFnG KKKKKKKKK.
ns! &
"esponse! #age 1$$
*SB! Strateg'
-=. Making sure the most important things get first attention is an example of KKKKKKKKKKKK.
ns!
"esponse! #age 1$$
*SB! Strateg'
38. /ithout KKKKKKKKKK, KKKKKKKKKK lacks a framework for measuring how well things are going
and what could be done to improve things.
. #roblem solving N.organi4ing.
B. #lanning N controlling.
*. #lanning N leading.
&. *ontrolling N goal setting.
(. #lanning N. decision making.
ns! B
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"esponse! #age 1$=
*SB! Strateg'
31. /ithout KKKKKKKKKK, KKKKKKKKKK lacks the follow-through needed to ensure that things work as
planned.
. *ontrolling N organi4ing.
B. #lanning N controlling.
*. *ontrolling N leading.
&. #lanning N problem solving
(. *ontrolling. N planning.
ns! (
"esponse! #age 1$=
*SB! Strateg'
3-. (ffective KKKKKKKKKK involves making choices concerning how to allocate 'our time to the most
important priorities.
. )nventor' management.
B. *ash management.
*. Time management.
&. #roAect budgeting.
(. Strategic management.
ns! *
"esponse! #age 1$=
33. (ffective time management includes all of the following except!
. Sa' no to re@uests that divert 'ou from what 'ou reall' should be doing.
B. Have a s'stem for screening telephone calls, e-mails, and re@uests for meetings.
*. &on?t let drop-in visitors or instant messages use too much of 'our time
&. 2ollow prioritiesC work on the most important and urgent tasks first.
(. &o not leave details for others to address or for later
ns! (
"esponse! #age 1$=
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&ifficult'! Hard
30. /hich of the following statements about planning and controlling isMare accurateL
. (ven 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.
*. Managers must have the discipline to maintain control when performance pressures are
unrelenting.
&. B and *.
(. , B, and *
ns! (
"esponse! #age 1$%-1$=
*SB! Strateg'
36. Stretch goals are performance targets that we have to work extra hard and reall' stretch to reach.
ns! True
"esponse! #age 1$<
&ifficult'! (as'
*SB! Strateg'
3%. Stretch goals are performance targets that re@uire a significant stretch of financial resources.
ns! 2alse
"esponse! #age 1$<
*SB! Strateg'
3<. Setting performance targets that re@uire 'ou to work extra hard and reall' stretch to reach are
considered stretch goals.
ns! True
"esponse! #age 1$<
&ifficult'! (as'
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*SB! Strateg'
3$. .rgani4ations that utili4e goals on performance re@uiring extra hard work and are a stretch to
reach are considered tactical plans.
ns! 2alse
"esponse! #age 1$<
*SB! Strateg'
3=. Eood planning improves focus and flexibilit'.
ns! True
"esponse! #age 1$$
*SB! Strateg'
08. #lanning is the process of setting obAectives and determining what should be done to accomplish
them.
ns! True
"esponse! #age 1$%
*SB! Strateg'
01. #lanning is the process of deciding what 'ou want to accomplish and how to do it.
ns! True
"esponse! #age 1$%
&ifficult'! (as'
*SB! Strateg'
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0-. #lanning 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
levels of task accomplishment, monitoring task accomplishment, and taking necessar' corrective
action.
ns! True
"esponse! #age 1$%
&ifficult'! Hard
*SB! Strateg'
03. *ontrolling is the management function that establishes the platform for further managerial
efforts.
ns! 2alse
"esponse! #age 1$%
*SB! Strateg'
00. lthough planning focuses attention on defining and setting obAectives, it doesn?t concern itself
with the implementation of those obAectives.
ns! 2alse
"esponse! #age 1$<
&ifficult'! Hard
*SB! Strateg'
06. #lanning eliminates the need for effective leadership in toda'?s business organi4ation.
ns! 2alse
"esponse! #age 1$3
*SB! Strateg'
0%. )n the planning process, obAectives refer to the specific results or desired outcomes that one
intends to achieve.
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ns! True
"esponse! #age 1$3
&ifficult'! (as'
*SB! Strateg'
0<. #lanning is an ongoing process engaged in simultaneousl' with other dail' work processes.
ns! True
"esponse! #age 1$<
*SB! Strateg'
0$. #lanning is a five-step process that includes defining obAectives, determining current status
relative to obAectives, developing premises regarding future conditions, anal'4ing action
alternatives and choosing among them, and implementing the plan and evaluating results.
ns! True
"esponse! #age 1$<
*SB! Strateg'
0=. The planning process is a s'stematic wa' of setting performance obAectives and deciding how to
best achieve them.
ns! True
"esponse! #age 1$%
*SB! Strateg'
68. The planning process is a s'stematic wa' of ensuring that performance obAectives have been
attained.
ns! 2alse
"esponse! #age 1$%
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*SB! Strateg'
61. (ffective planning improves focus and flexibilit', provides an action orientation, helps to improve
coordination, and facilitates better control and time management.
ns! True
"esponse! #age 1$$-1$=
&ifficult'! (as'
*SB! Strateg'
6-. n organi4ation with focus knows the needs of its customers and knows how to serve them wellC
an individual with focus knows where he or she wants to go in a career or situation and is able to
retain that obAective even in difficult circumstances.
ns! True
"esponse! #age 1$$
*SB! Strateg'
Bloom+s Taxonom'! S'nthesis
63. n organi4ation with flexibilit' is willing and able to change and adapt and operates with an
orientation toward the future.
ns! True
"esponse! #age 1$$
&ifficult'! (as'
*SB! Strateg'
60. )n regards to planning, the complacenc' trap occurs when organi4ations simpl' allow themselves
to be carried along b' the flow of events.
ns! True
"esponse! #age 1$$
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*SB! Strateg'
66. #lanning provides action orientations for people and organi4ations that are results oriented,
priorit' oriented, advantage oriented, and change oriented.
ns! True
"esponse! #age 1$$
&ifficult'! (as'
*SB! Strateg'
6%. /hen plans are coordinated among the various s'stems and components of the
organi4ation, there is greater likelihood that multiple accomplishments will add
up to the desired results for the organi4ation as a whole.
ns! True
"esponse! #age 1$=
*SB! Strateg'
6<. #lanning helps managers and organi4ations to sta' ahead of the competition b' 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 the' can be dealt with in the best wa'.
ns! True
"esponse! #age 1$$
&ifficult'! Hard
*SB! Strateg'
6$. #lanning enables control b' defining obAectives and using speciali4ation to motivate emplo'ees.
ns! 2alse
"esponse! #age 1$=
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*SB! Strateg'
6=. /ithout controlling, planning lacks a framework for measuring how well things are going and
what could be done to improve things.
ns! 2alse
"esponse! #age 1$=
&ifficult'! (as'
*SB! Strateg'
%8. /ithout planning, controlling lacks the follow-through needed to ensure things work as planned.
ns! 2alse
"esponse! #age 1$=
&ifficult'! (as'
*SB! Strateg'
%1. (ffective time management involves making choices about allocating time to the most important
priorities.
ns! True
"esponse! #age 1$=
&ifficult'! (as'
%-. Eood time management involves prioriti4ing 'our work, screening calls and emails, and sa'ing
InoJ to distracting re@uests.
ns! True
"esponse! #age 1$=
&ifficult'! (as'
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#ypes of Plans $sed by "anagers
%3. ccording to Mankins and Steele writing in the Harvard Business "eview, planning that is onl'
engaged in periodicall' b' organi4ations is called!
. *alendar driven
B. Strateg' driven
*. Tactic driven
&. 2unctionall' driven
(. *ost driven
ns!
"esponse! #age 1=-
&ifficult'! Hard
"ef! T'pes of #lans Osed b' Managers
*SB! Strateg'
%0. &escribe the t'pes of plans used b' managers.
ns!
Short-"ange and 1ong-"ange #lans! short-range plans cover 1 'ear or less, intermediate-
range plans cover 1 to - 'ears, long-range plans look 3 or more 'ears into the future. Top
management is most likel' to be involved in setting long-range plans.
Strategic and .perational #lans! strategic plans set broad, comprehensive and longer-
term action directions. .perational plans define what needs to be done in specific
functions or work units to implement strategic plans. lso include, production plans,
financial plans, facilities plans, marketing plans and human resource plans.
#olicies and #rocedures! Standing plans, in the form of organi4ational policies and
procedures are designed for use over and over again. polic' communicates broad
guidelines for making decisions and taking action in specific circumstances. "ules or
procedures describe exactl' what actions are to be taken in specific situations.
Budgets! Single-use plans are used once, serving the needs and obAectives of well-defined
situations in a timel' manner. Budgets are single-use plans that commit resources to
activities, proAects, or programs. fixed budget allocates a fixed amount of resources for
a specific purpose. flexible budget allows the allocation of resources to var' in
proportion with various levels of activit'. 4ero-based budget allocates resources as if
each budget was brand new.
"esponse! #age 1=8-1=3
*SB! Strateg'
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%6. &escribe the difference between strategic and tactical plans.
ns! Strategic plans are longer term plans that set broad and comprehensive directions for an
organi4ation, 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
organi4ation and expresses what it hopes to be in the future. )t involves determining the goals and
obAectives that will be pursued in order to accomplish that vision. lso, it specifies how the
organi4ation will be positioned for competitive advantage in its external environment to
accomplish those goals and obAectives.
Tactical plans are developed and used to implement strategic plans. The' tend to be intermediate
term plans that specif' step b' step means for using the organi4ation?s resources to put strategies
into action. )n business, tactical plans often take the form of functional plans that indicate how
different components of the enterprise will contribute to the overall strateg'. Such functional
plans might include!
Production plansPdealing with the methods and technolog' needed b'
people in their workC
Financial plansPdealing with mone' re@uired to support various operationsC
Facilities plansPdealing with facilities and work la'outsC
Logistics plansPdealing with suppliers and the flow of raw materials and other product
inputsC
"esponse! #age 1=1
*SB! Strateg'
%%. /hich of the following statements accuratel' describe planning time hori4onsL
. Short-range plans cover one 'ear or less into the future.
B. )ntermediate-range plans cover a time frame of one to two 'ears into the future.
*. 1ong-range plans cover a time frame of three or more 'ears into the future.
&. ll of the above.
ns! &
"esponse! #age 1=8
*SB! Strateg'
%<. /hich level of management spends more time with long-range planning when compared to other
levels of managementL
. 1ower-level managers.
B. Middle-level managers.
*. 1ower-level and middle-level managers.
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&. Top-level managers.
(. ll levels of management.
ns! &
"esponse! #age 1=8
&ifficult'! (as'
*SB! Strateg'
%$. /hich of the following are implications of research conducted b' (lliot 9a@uesL
. #eople var' in their capabilities to think out, organi4e, and work through events of different
time hori4ons.
B. Most people work comfortabl' with onl' three-month time spansC smaller groups of people
work well with a one-'ear time frameC and onl' one person in several million can handle a
-8-'ear time frame.
*. Managers working at different levels in the organi4ation must plan over var'ing time
hori4ons.
&. ll of the above.
ns! &
"esponse! #age 1=8
&ifficult'! Hard
%=. KKKKKKKKKK plans set broad, comprehensive, and long-term action directions for the entire
organi4ation.
. ;ormal.
B. Single-use.
*. Strategic.
&. Tactical.
(. .perational.
ns! *
"esponse! #age 1=1
&ifficult'! (as'
*SB! Strateg'
<8. Strategic planning begins with KKKKKKKKKKKKKKKKKK
. Tactical planning
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B. Qision
*. Time management
&. 2orecasting
ns! B
"esponse! #age 1=1
*SB! Strateg'
<1. KKKKKKKKKKKKKKKKhelps to implement all or parts of a strategic plan.
. Strategic plan
B. Tactical plan
*. 1ong range plan
&. Short range plan
(. 2unctional plan
ns! B
"esponse! #age 1=1
&ifficult'! (as'
*SB! Strateg'
<-. *ompan' 1M;, a to' manufacturer, has discovered that one of its suppliers has used lead based
paint on one of its products. )t is Thanksgiving week. The (xecutive committee has assembled a
team to devise a plan to mitigate the issue. 1M; is using KKKKKKKKKKKK
. Tactical planning
B. Strategic planning
*. 2unctional planning
&. #roduction planning
(. Mitigation planning
ns!
"esponse! #age 1=1
&ifficult'! Hard
*SB! Strateg'
Bloom+s Taxonom'! pplication
<3. ll of the following are examples of functional plans except!
. 1ogistics plans
B. 2acilities plans
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*. Human resources plans
&. .perational plans
(. 2inancial plans
ns! &
"esponse! #age 1=1
*SB! Strateg'
<0. #lans that define what needs to be done in specific functions or work units in order to implement
strategic plans and achieve strategic obAectives are called KKKKKKKKKK.
. Business plans.
B. )mplementing plans.
*. *ompan' plans.
&. Tactical plans.
(. .perational plans.
ns! (
"esponse! #age 1=-
&ifficult'! (as'
*SB! Strateg'
<6. How are strategic plans and operational plans relatedL
. Strategic plans and operational plans are unrelated.
B. Strategic plans define what needs to be done to implement operational plans.
*. Strategic plans are developed to address long-term organi4ational obAectivesC operational
plans implement strategic plans.
&. .perational plans are developed to meet long-term organi4ational obAectivesC strategic plans
implement operational plans.
(. Strategic plans set operational obAectivesC operational plans carr' out those obAectives.
ns! *
"esponse! #age 1=1-1=-
&ifficult'! Hard
*SB! Strateg'
<%. T'pical functional plans in a business would include all of the following (R*(#T!
. &ealing with methods and technolog' needed b' people in their work.
B. &ealing with mone' re@uired to support various operations.
$--3
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edition Test Bank
*. &ealing with re@uirements of selling and distributing goods or services.
&. &ealing with compan' growth through mergers and ac@uisitions.
(. &ealing with recruitment, selection, and placement of people into Aobs.
ns! &
"esponse! #age 1=1
&ifficult'! Hard
*SB! Strateg'
<<. #roduction plans, financial plans, facilities plans, marketing plans, and human resource plans are
all examples of KKKKKKKKKK plans.
. Strategic.
B. 2unctional.
*. *ontingenc'.
&. Standing-use.
(. 2lexible.
ns! B
"esponse! #age 1=1
*SB! Strateg'
<$. #olicies and procedures used repeatedl' in organi4ations are called KKKKKKKKKK.
. Single-use plans.
B. Standing plans.
*. Strategic plans.
&. Scheduling plans.
(. )ndividual plans.
ns! B
"esponse! #age 1=1
&ifficult'! (as'
<=. KKKKKKKKKK communicate broad guidelines for making decisions and taking action in specific
circumstances.
. "ules
B. #rocedures
*. #olicies
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edition Test Bank
&. Euidelines
(. "egulations
ns! *
"esponse! #age 1=-
&ifficult'! (as'
$8. KKKKKKKKKK or KKKKKKKKKK describe exactl' what actions are to be taken in specific situations.
. "ules procedures.
B. "ules goals.
*. #rocedures policies.
&. #roAects proAect management.
(. .bAectives strategies.
ns!
"esponse! #age 1=3
$1. KKKKKKKKKK are often found in emplo'ee manuals as standard operating procedures.
. Eoals.
B. "ules.
*. Budgets.
&. and B.
(. and *.
ns! B
"esponse! #age 1=3
$-. /hich of the following statements best distinguishes between procedures and policiesL
. #rocedures help obtain organi4ational obAectivesC policies do not.
B. #rocedures present a plan of action for specific situationsC policies are broad guidelines.
*. procedure is a single-use planC a polic' is a standing plan.
&. #rocedures guide ethicsC policies guide fair emplo'ment.
(. procedure is a standing-use planC a polic' is a single-use plan.
$--6
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edition Test Bank
ns! B
"esponse! #age 1=3
&ifficult'! Hard
$3. /hen a universit' issues a statement that it IN will not tolerate sexual harassment in relation to
the evaluation of emplo'ee or student performance N,J a KKKKKKKKKK plan in the form of an
organi4ational KKKKKKKKKK is being communicated.
. Single-use N procedure.
B. Standing-use N rule.
*. Standing N procedure.
&. Single-use N polic'.
(. Standing N polic'.
ns! (
"esponse! #age 1=--1=3
$0. KKKKKKKKKK budget allocates a fixed amount of resources for a specific purpose.
. 2ixed.
B. 2lexible.
*. Sero-based.
&. *ontingenc'.
(. *omprehensive.
ns!
"esponse! #age 1=3
&ifficult'! (as'
*SB! Strateg'
$6. FnG KKKKKKKKKK budget allows the allocation of resources to var' in proportion with various
levels of activit'.
. Master.
B. Strategic.
*. .perational.
&. 2lexible.
(. Sero-based.
$--%
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edition Test Bank
ns! &
"esponse! #age 1=3
*SB! Strateg'
$%. )n a chain of discount department stores, personnel needs are estimated in three different wa's!
FaG for a high demand season, FbG for a moderate demand season, and FcG for a low demand
season. B' taking these three activit' levels into account, managers are developing a
KKKKKKKKKK.
. 2ixed budget.
B. 2lexible budget.
*. Sero-based budget.
&. Standing-use plan.
(. #olic'.
ns! B
"esponse! #age 1=3
&ifficult'! Hard
*SB! Strateg'
$<. *M( Manufacturing budgets a proAect or activit' in each new budget period as if it were brand
new. *M( is using aFnG KKKKKKKKKK budgeting approach is being used.
. 2ixed.
B. 2lexible.
*. Sero-based.
&. *ontingenc'.
(. .perational.
ns! *
"esponse! #age 1=3
*SB! Strateg'
$$. Short-range plans cover one 'ear or less into the future.
ns! True
"esponse! #age 1=8
&ifficult'! (as'
$--<
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edition Test Bank
*SB! Strateg'
$=. 1ong-range plans cover a time frame of at least six 'ears into the future.
ns! 2alse
"esponse! #age 1=8
&ifficult'! (as'
*SB! Strateg'
=8. Top-level managers spend more time with long-range planning than other levels of management.
ns! True
"esponse! #age 1=8
&ifficult'! (as'
*SB! Strateg'
=1. (lliot 9ac@ues suggests that all managers, regardless of their levels, will use the same time
hori4on to plan their work activities.
ns! 2alse
"esponse! #age 1=8
*SB! Strateg'
=-. Strategic plans set broad, comprehensive, and long-term action directions for the entire
organi4ation.
ns! True
"esponse! #age 1=1
&ifficult'! (as'
*SB! Strateg'
$--$
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edition Test Bank
=3. T'pical strategic plans in a business would include dealing with the methods and technolog'
needed b' people in their work and dealing with mone' re@uired to support various operations.
T'pical operational plans in a business would include dealing with re@uirements of selling and
distributing goods or services and dealing with recruitment, selection, and placement of people
into Aobs.
ns! 2alse
"esponse! #age 1=1-1=-
&ifficult'! Hard
*SB! Strateg'
=0. n organi4ation?s vision clarifies the purpose of the organi4ation and expresses what it hopes to
become in the future.
ns! True
"esponse! #age 1=1
*SB! Strateg'
=6. tactical plan helps implement the entire strategic plan or at least parts of this plan.
ns! True
"esponse! #age 1=1
&ifficult'! (as'
*SB! Strateg'
=%. Tactical plans tend to be intermediate-term plans that specif' step b' step means for using the
organi4ation?s resources to put strategies into action.
ns! True
"esponse! #age 1=1
*SB! Strateg'
$--=
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edition Test Bank
=<. functional plan indicates how different operations within the organi4ation will help advance the
overall strateg' of the organi4ation.
ns! True
"esponse! #age 1=1
&ifficult'! (as'
*SB! Strateg'
=$. (xamples of functional plans include production plans, financial plans, logistics plans, and H"
plans.
ns! True
"esponse! #age 1=1
&ifficult'! (as'
*SB! Strateg'
==. .perational plans define what needs to be done in specific functions or work units in order to
implement strategic plans and achieve strategic obAectives.
ns! True
"esponse! #age 1=-
&ifficult'! (as'
*SB! Strateg'
188. .perational plans form the foundation for strategic plans, whereas strategic plans specif' the
activities and resources that are needed to carr' out the operational plans.
ns! 2alse
"esponse! #age 1=-
*SB! Strateg'
181. #olicies and procedures are single-use plans for meeting the needs of a well-defined situation in a
timel' manner.
$-38
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edition Test Bank
ns! 2alse
"esponse! #age 1=3
18-. #olicies communicate broad guidelines for making decisions and taking action in specific
circumstances.
ns! True
"esponse! #age 1=-
&ifficult'! (as'
183. "ules or procedures describe exactl' what actions are to be taken in specific situations.
ns! True
"esponse! #age 1=3
&ifficult'! (as'
180. Standard operating procedures are rules often found in emplo'ee manuals.
ns! True
"esponse! #age 1=3
186. #rocedures present a plan of action for specific situations whereas policies are broad guidelines.
ns! True
"esponse! #age 1=3
$-31
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edition Test Bank
18%. 4ero-based budget and a proAect schedule are examples of standing plans that are designed to
cover recurring situations.
ns! 2alse
"esponse! #age 1=-
18<. monthl' operating budget is an example of a single-use plan serving the needs and obAectives
of a well-defined situation in a timel' manner.
ns! True
"esponse! #age 1=3
18$. Budgets are single-use plans that commit resources to activities, proAects, or programs.
ns! True
"esponse! #age 1=3
18=. fixed budget is defined as one that allocates a fixed amount of resources for a specific purpose.
ns! True
"esponse! #age 1=3
&ifficult'! (as'
118. 4ero-based budget allows the allocation of resources to var' in direct proportion with various
levels of activit'.
$-3-
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edition Test Bank
ns! 2alse
"esponse! #age 1=3
111. 2ixed budgets define specific task obAectives, link activities to be accomplished with due dates,
and identif' the amounts and timing of resource re@uirements.
ns! 2alse
"esponse! #age 1=3
Planning #ools and #echni%ues
11-. KKKKKKKKKK is the process of predicting what will happen in the future.
. *ontingenc' planning.
B. Qisioning.
*. )dentif'ing obAectives.
&. 2oretelling.
(. 2orecasting.
ns! (
"esponse! #age 1=0
&ifficult'! (as'
"ef! #lanning Tools and Techni@ues
*SB! Strateg'
113. Osing the opinions of persons with special expertise to make predictions about the future is called
KKKKKKKKKK.
. Tuantitative forecasting.
B. Euesswork.
*. Tualitative forecasting.
&. *ontingenc' planning.
(. (xpert planning.
ns! *
$-33
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edition Test Bank
"esponse! #age 1=0
*SB! Strateg'
110. B* )nc. utili4es mathematical and statistical anal'ses of historical data and surve's to predict
future events. This process is called KKKKKKKKKK.
. Tuantitative forecasting.
B. Euesswork.
*. Tualitative forecasting.
&. *ontingenc' planning.
(. (xpert planning.
ns!
"esponse! #age 1=0
&ifficult'! (as'
*SB! Strateg'
116. #lanning that identifies alternative courses of action that can be implemented to meet the needs of
changing circumstances is called KKKKKKKKKK.
. 2ormal planning.
B. *ontingenc' planning.
*. 9ust-in-time planning.
&. #roblem solving.
(. 9ust-in-case planning.
ns! B
"esponse! #age 1=0
*SB! Strateg'
11%. /hich of the following statements about contingenc' planning is 21S(L
. *ontingenc' planning occurs when planners decide the future will be identical to the past.
B. *ontingenc' planning anticipates events that ma' occur in the future.
*. *ontingenc' planning specifies different courses of action under different conditions.
&. *ontingenc' planning focuses on earl' identification of possible shifts in future events.
(. *ontingenc' planning contains trigger points that indicate when preselected alternative plans
should be activated.
ns!
$-30
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edition Test Bank
&ifficult'! Hard
*SB! Strateg'
11<. KKKKKKKKKK is a long-term version of contingenc' planning.
. 2orecasting.
B. Benchmarking.
*. #articipation.
&. Scenario planning.
(. 2lexible budgeting.
ns! &
"esponse! #age 1=6
*SB! Strateg'
11$. )dentif'ing alternative future states of affairs that ma' occur and then developing plans to deal
with each case should it actuall' occur is known as KKKKKKKKKK.
. 2orecasting.
B. Scenario planning.
*. Benchmarking.
&. #articipation.
(. *ontingenc' planning.
ns! B
"esponse! #age 1=6
*SB! Strateg'
11=. British #etroleum uses scenario planning to explore what the compan' would do if and when its
oil supplies run out. 2or B#, the benefits of scenario planning include which of the followingL
. )t helps the organi4ation to plan ahead to make maAor adAustments in strategies and
operations.
B. )t conditions the compan'?s executives to think.
*. )t enables the compan' to be better prepared than competitors for future shocks.
&. ll of the above.
ns! &
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edition Test Bank
"esponse! #age 1=6
*SB! Strateg'
1-8. KKKKKKKKKK is a techni@ue that makes use of external comparisons to better evaluate one?s
current performance and identif' possible actions for the future.
*. 2orecasting.
&. Management b' obAectives.
(. Benchmarking.
ns! (
"esponse! #age 1=%
*SB! Strateg'
1-1. KKKKKKKKKK is a planning techni@ue that makes use of external comparisons to determine
practices used b' best-in-class companies in an effort to improve performance and identif'
possible actions for the future.
B. Benchmarking.
*. Scenario planning.
&. 2orecasting.
(. Management b' obAectives.
ns! B
"esponse! #age 1=%
*SB! Strateg'
1--. The purpose of KKKKKKKKKK is to find out what other people and organi4ations are doing ver'
well, and planning how to incorporate these ideas into one?s own operations.
*. Benchmarking.
&. 2orecasting.
(. #articipation.
$-3%
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edition Test Bank
ns! *
"esponse! #age 1=%
*SB! Strateg'
1-3. KKKKKKKKKK refer to those things that are done b' both competitors and noncompetitors that
enable them to achieve superior performance.
. *ompetitive goodies.
B. Superior goals.
*. ;oncompetitive obAectives.
&. Best practices.
(. .perating activities.
ns! &
"esponse! #age 1=%
*SB! Strateg'
1-0. KKKKKKKKKK are individuals who lead and coordinate the planning function for an organi4ation as
a whole or for one of its maAor components.
. Staff planners.
B. #roAect managers.
*. Middle managers.
&. 1ine managers.
(. *ollaborators.
ns!
"esponse! #age 1=<
1-6. n important risk associated with the use of staff planners is the KKKKKKKKKK that can develop
between staff planners and line managers.
. resistance to assistance
B. communication gap
*. skill discrepancies
&. argument
(. identit' crisis
$-3<
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edition Test Bank
ns! B
"esponse! #age 1=<
1-%. )dentif' and briefl' describe each of the six maAor planning tools and techni@ues that managers
use and give examples of how the' are used.
ns! The six maAor planning tools and techni@ues that managers use are identified and described
below!
2orecasting is the process of making assumptions about what will happen in the future
*ontingenc' planning involves identif'ing alternative courses of action that can be
implemented, if and when an original plan proves inade@uate because of changing
circumstances.
Scenario planning is a long-term version of contingenc' planning that involves
identif'ing several alternative future scenarios or states of affairs that ma' occur, and
then making plans to deal with each should it actuall' occur.
Benchmarking is a techni@ue that makes use of external comparisons to better evaluate
current performance and identif' possible future actions.
#articipative planning re@uires that the planning process include people who will be
affected b' the resulting plans andMor will be asked to help implement them.
Staff planners are persons who take responsibilit' for leading and coordinating the
planning function for the total organi4ation or one of its maAor components.
"esponse! #age 1=0-1=<
&ifficult'! Hard
*SB! Strateg'
1-<. Osing the opinions of individuals who possess special expertise to make predictions about the
future is called @ualitative forecasting.
ns! True
"esponse! #age 1=0
1-$. Osing mathematical and statistical anal'ses of historical data and surve's to predict future events
is called @uantitative forecasting.
$-3$
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edition Test Bank
ns! True
"esponse! #age 1=0
1-=. Tuantitative forecasting techni@ues use expert opinions to predict the future, whereas @ualitative
forecasting uses mathematical anal'ses to predict future events.
ns! 2alse
"esponse! #age 1=0
138. 2orecasting is a process of making @uantitative or @ualitative predictions about what will happen
in the futureC 'et in the final anal'sis, forecasting is subAect to error because it alwa's relies on
human Audgment and interpretation.
ns! True
"esponse! #age 1=0
*SB! Strateg'
131. *ontingenc' planning identifies alternative courses of action that can be implemented to meet the
needs of changing circumstances.
ns! True
"esponse! #age 1=0
*SB! Strateg'
13-. *ontingenc' planning occurs when planners decide the future of the organi4ation will be identical
to its past.
ns! 2alse
$-3=
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edition Test Bank
*SB! Strateg'
133. *ontingenc' planning anticipates events that ma' occur in the future.
ns! True
"esponse! #age 1=0
&ifficult'! (as'
*SB! Strateg'
130. *ontingenc' planning focuses on earl' identification of possible shifts in future events.
ns! True
"esponse! #age 1=0
*SB! Strateg'
136. *ontingenc' planning contains trigger points indicating when preselected alternative plans should
be activated.
ns! True
"esponse! #age 1=6
*SB! Strateg'
13%. Scenario planning is a long-term version of contingenc' planning.
ns! True
"esponse! #age 1=6
*SB! Strateg'
$-08
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edition Test Bank
13<. Scenario planning involves identif'ing alternative future scenarios that ma' occur and then
developing plans to deal with each scenario should it actuall' occur.
ns! True
"esponse! #age 1=6
*SB! Strateg'
13$. Scenario planning helps "o'al &utchMShell make maAor adAustments in strategies and operations
and to be better prepared than competitors for future shocks.
ns! True
"esponse! #age 1=6
*SB! Strateg'
13=. Benchmarking is used to gain perspective on current organi4ational performance through the use
of external comparisons.
ns! True
"esponse! #age 1=%
*SB! Strateg'
108. Benchmarking is done to determine what other organi4ations are doing well and how those ideas
could be incorporated into one?s own organi4ation.
ns! True
"esponse! #age 1=%
*SB! Strateg'
101. Best practices refer to those things that are done b' both competitors and noncompetitors that
enable them to achieve superior performance.
$-01
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edition Test Bank
ns! True
"esponse! #age 1=%
*SB! Strateg'
10-. Staff planners are individuals who lead and coordinate the planning function for an organi4ation
as a whole or for one of its maAor components.
ns! True
"esponse! #age 1=<
103. n important risk associated with the use of staff planners is the communication gap that can
develop between staff planners and line managers.
ns! True
"esponse! #age 1=<
100. #lanning specialists are skilled in all steps of the planning process, as well as in the use of
planning tools and techni@ues.
ns! True
"esponse! #age 1=<
*SB! Strateg'
Implementing Plans to Achie&e 'esults
$-0-
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edition Test Bank
106. (ffective goals resulting in plans being successfull' implemented with high performance are all
of the following except!
. Specific
B. Timel'
*. Measurable
&. *hallenging
(. 2unctional
ns!
"esponse! #age 1=$
"ef! )mplementing #lans to chieve "esults
*SB! Strateg'
10%. means-ends chain is also known as a KKKKKKKKKK.
. Hierarch' of authorit'.
B. Hierarch' of obAectives.
*. *ontrol s'stem.
&. "esponsibilit' structure.
(. Sero-based budget.
ns! B
"esponse! #age 1=$
*SB! Strateg'
10<. )n the means-ends chain, KKKKKKKKKK obAectives are ends that are directl' tied to KKKKKKKKKK
obAectives as the means for their accomplishment.
. 1ower-level lower-level.
B. 1ower-level higher-level.
*. Moderate-level moderate-level
&. Higher-level lower-level.
(. Higher-level higher-level.
ns! &
"esponse! #age 1=$
*SB! Strateg'
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edition Test Bank
10$. .n those Aobs where performance is difficult to @uantif', performance obAectives can be stated as
KKKKKKKKKK.
. Short-range plans.
B. Benchmarks.
*. Qerifiable work activities.
&. Measurable end products.
(. &eliverables.
ns! *
"esponse! #age 1==
*SB! Strateg'
10=. *M( 2inancial re@uires their planning process to include people who will be affected b' the
resulting plans andMor will be asked to help implement them. *M( is utili4ing KKKKKK.
*. Strategic planning.
&. #articipator' planning.
(. Benchmarking.
ns! &
"esponse! #age -88
*SB! Strateg'
168. The use of participator' planning can produce all of the following benefits (R*(#T!
. )ncrease creativit' in planning.
B. )ncrease commitment of people for planning.
*. )ncrease acceptance of chosen alternatives.
&. )ncrease conflict over scarce resources.
(. )ncrease information available for planning.
ns! &
"esponse! #age -88
*SB! Strateg'
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161. s long as people have goals, how the' are set them doesn?t reall' make much of an impact on
their success.
ns! 2alse
"esponse! #age 1=$
&ifficult'! Hard
16-. The *(. of *'press Semi *onductors, T.9. "odgers, provides emplo'ees with clear and
@uantified work goals which help managers and emplo'ees to identif' problems before the'
interfere with performance.
ns! True
"esponse! #age 1=$
*SB! Strateg'
163. )n order to make effective goals, the' should be specific, timel', measurable, challenging, and
attainable.
ns! True
"esponse! #age 1=$
&ifficult'! (as'
*SB! Strateg'
160. ligning goals from one level to the next facilitates the right things happening at the right time on
all levels of the organi4ation.
ns! True
"esponse! #age 1=$
&ifficult'! Hard
*SB! Strateg'
166. )n the means-ends chain, higher-level obAectives are ends that are directl' tied to lower-level
obAectives as the means for their accomplishment.
$-06
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edition Test Bank
ns! True
"esponse! #age 1=$
*SB! Strateg'
16%. good performance obAective should be challenging and specific but it need not be measurable
or time defined.
ns! 2alse
"esponse! #age 1==
*SB! Strateg'
16<. .n those Aobs where performance is difficult to @uantif', performance obAectives can be stated as
verifiable work activities.
ns! True
"esponse! #age 1==
*SB! Strateg'
16$. #articipator' planning re@uires that the planning process include people who will be affected b'
the resulting plans andMor will be asked to help implement them.
ns! True
"esponse! #age -88
*SB! Strateg'
16=. The use of participator' planning can increase creativit' in planning, the commitment of people
for planning, and the information available for planning.
ns! True
$-0%
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edition Test Bank
"esponse! #age -88
&ifficult'! (as'
*SB! Strateg'
1%8. The use of participator' planning can increase conflict over scarce resources and conse@uentl'
decrease acceptance of chosen alternatives.
ns! 2alse
"esponse! #age -88
&ifficult'! (as'
*SB! Strateg'
1%1. .nl' a few ke' people should be involved in developing plans in order to keep the plans simple
and to facilitate implementation.
ns! 2alse
"esponse! #age -88
*SB! Strateg'
1%-. /hile participation in the planning process can increase the amount of time spent in planning, it
nonetheless can enhance results b' improving implementation.
ns! True
"esponse! #age -88
*SB! Strateg'
$-0<

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