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.

I
Response: Page 186
Difficulty: Easy
Ref: Introduction
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

Learning From Others

2. Oprah Winfrey discovered that even the best plans can go wrong when she opened her leadership
academy in South Africa.

I
Response: Page 184
Difficulty: Moderate
Ref: Learning From Others
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

Learning About Yourself

3. Prioritization of tasks that you need to get done could include items that:
A. You must do
B. You should do
C. You might do
D. You should not do
E. All of the above

I
Response: Page 185
Difficulty: Moderate
Ref: Learning About Yourself

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Schermerhorn-Management, 11th edition Test Bank

AACSB: Individual Dynamics

Bloom's Taxonomy: Knowledge

4. Prioritization of tasks that you need to get done could include items that are considered:
A. Most important
B. Important
C. Least important
D. Not important
E. All of the above

I
Response: Page 185
Difficulty: Moderate
Ref: Learning About Yourself
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

5. Time wasters can impact your ability to manage your time effectively. According to your text,
these time wasters could include:
A. Things you can control
B. Things you cannot control
C. Both A & B
D. None of the above

I
Response: Page 185
Difficulty: Moderate
Ref: Learning About Yourself
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

6. Time wasters can include those things that you can control as well as some you cannot control.

I
Response: Page 185
Difficulty: Easy
Ref: Learning About Yourself
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

7. Prioritizing your activities for the day could include items considered to be: Most important,
Important, Least Important and Not Important.

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 185
Difficulty: Easy
Ref: Learning About Yourself
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

8. Prioritizing your activities for the day could include items you: must do, should do, might do and
should not do.

I
Response: Page 185
Difficulty: Easy
Ref: Learning About Yourself
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

9. According to one survey, interruptions can steal 28% of the average workers day.

I
Response: Page 185
Difficulty: Moderate
Ref: Learning About Yourself
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

Why and How Managers Plan

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--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.

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Schermerhorn-Management, 11th edition Test Bank

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: Page187
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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 188-189
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 186
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 186
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

14. Performance targets that we have to work extra hard and stretch to reach are __________.
A. Stretch goals
B. Tactical goals
C. Objectives
D. Planning
E. None of the above

I
Response: Page 187
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

15. Organizations that set ___________ do so knowing these goals will be difficult to reach and
require extra hard work.
A. Challenge goals
B. Tactical goals
C. Objectives
D. Stretch goals
E. None of the above

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Schermerhorn-Management, 11th edition Test Bank

Response: Page 187

Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

16. Stretch goals are performance targets that require __________ and are a(n) _______ to reach.
A. Extra money, challenge
B. Extra hard work, stretch
C. Extra hard work, ease
D. Extra money, stretch
E. None of the above

I
Response: Page 187
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 186
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 187

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Schermerhorn-Management, 11th edition Test Bank

Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 187
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 187
Difficulty: Hard
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Analysis

21. The planning process is a systematic way of approaching which of the following tasks?
A. Setting performance objectives.

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

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.

I
Response: Page 186
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 186-187
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

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Schermerhorn-Management, 11th edition Test Bank

C. An individual with flexibility adjusts career plans to fit new and developing opportunities.
D. All of the above.
E. None of the above.

I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Analysis

25. _____________occurs when an organization allows itself to be carried along by the

flow of events.
A. Planning coordination
B. Planning control
C. Complacency trap
D. Strategic planning
E. Forecasting
I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

26. According to Covey, good planning helps an organization to be:

A. Priority oriented, action oriented, advantage oriented, change oriented
B. Priority oriented, action oriented, strategy oriented, tactically oriented
C. Advantage oriented, change oriented, task oriented, control oriented
D. Advantage oriented, change oriented, strategy oriented, action oriented
E. Advantage oriented, change oriented, strategy oriented, decision oriented

I
Response: Page 188
Difficulty: Hard
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Analysis

27. Ensuring that all resources are used to best advantage is __________.
A. Priority orientation
B. Action orientation
C. Advantage orientation
D. Change orientation
E. None of the above

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

28. Anticipating problems and opportunities so they can best be dealt with is using a(n) _________.
A. Priority orientation
B. Action orientation
C. Advantage orientation
D. Change orientation
E. None of the above

I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

29. Making sure the most important things get first attention is an example of ____________.
A. Priority orientation
B. Action orientation
C. Advantage orientation
D. Change orientation
E. None of the above

I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

Response: Page 189

Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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 solving
E. Controlling. planning.

I
Response: Page 189
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 189
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Individual Dynamics
Bloom'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. Dont let drop-in visitors or instant messages use too much of your time
D. Follow priorities; work on the most important and urgent tasks first.
E. Do not leave details for others to address or for later

I
Response: Page 189

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

Difficulty: Hard
Ref: Why and How Managers Plan
AACSB: Individual Dynamics
Bloom'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 C
I
Response: Page 186-189
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Analysis

35. Stretch goals are performance targets that we have to work extra hard and really stretch to reach.

I
Response: Page 187
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

36. Stretch goals are performance targets that require a significant stretch of financial resources.

I
Response: Page 187
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

37. Setting performance targets that require you to work extra hard and really stretch to reach are
considered stretch goals.

I
Response: Page 187
Difficulty: Easy
Ref: Why and How Managers Plan

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Schermerhorn-Management, 11th edition Test Bank

AACSB: Strategy
Bloom's Taxonomy: Knowledge

38. Organizations that utilize goals on performance requiring extra hard work and are a stretch to
reach are considered tactical plans.

I
Response: Page 187
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

39. Good planning improves focus and flexibility.

I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

40. Planning is the process of setting objectives and determining what should be done to accomplish
them.

I
Response: Page 186
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

41. Planning is the process of deciding what you want to accomplish and how to do it.

I
Response: Page 186
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

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Schermerhorn-Management, 11th edition Test Bank

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
levels of task accomplishment, monitoring task accomplishment, and taking necessary corrective
action.

I
Response: Page 186
Difficulty: Hard
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Analysis

43. Controlling is the management function that establishes the platform for further managerial
efforts.

I
Response: Page 186
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

44. Although planning focuses attention on defining and setting objectives, it doesnt concern itself
with the implementation of those objectives.

I
Response: Page 187
Difficulty: Hard
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Analysis

45. Planning eliminates the need for effective leadership in todays business organization.

I
Response: Page 183
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

46. In the planning process, objectives refer to the specific results or desired outcomes that one
intends to achieve.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 183
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

47. Planning is an ongoing process engaged in simultaneously with other daily work processes.

I
Response: Page 187
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 187
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Analysis

49. The planning process is a systematic way of setting performance objectives and deciding how to
best achieve them.

I
Response: Page 186
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

50. The planning process is a systematic way of ensuring that performance objectives have been
attained.

I
Response: Page 186

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

51. Effective planning improves focus and flexibility, provides an action orientation, helps to improve
coordination, and facilitates better control and time management.

I
Response: Page 188-189
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Synthesis

53. An organization with flexibility is willing and able to change and adapt and operates with an
orientation toward the future.

I
Response: Page 188
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 188
Difficulty: Moderate
Ref: Why and How Managers Plan

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

AACSB: Strategy
Bloom's Taxonomy: Comprehension

55. Planning provides action orientations for people and organizations that are results oriented,
priority oriented, advantage oriented, and change oriented.

I
Response: Page 188
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Knowledge

56. When plans are coordinated among the various systems and components of the
organization, there is greater likelihood that multiple accomplishments will add
up to the desired results for the organization as a whole.

I
Response: Page 189
Difficulty: Moderate
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom'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.

I
Response: Page 188
Difficulty: Hard
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Synthesis

58. Planning enables control by defining objectives and using specialization to motivate employees.

I
Response: Page 189
Difficulty: Moderate
Ref: Why and How Managers Plan

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Schermerhorn-Management, 11th edition Test Bank

AACSB: Strategy
Bloom's Taxonomy: Comprehension

59. Without controlling, planning lacks a framework for measuring how well things are going and
what could be done to improve things.

I
Response: Page 189
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

60. Without planning, controlling lacks the follow-through needed to ensure things work as planned.

I
Response: Page 189
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Strategy
Bloom's Taxonomy: Comprehension

61. Effective time management involves making choices about allocating time to the most important
priorities.

I
Response: Page 189
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

62. Good time management involves prioritizing your work, screening calls and emails, and saying
no to distracting requests.

I
Response: Page 189
Difficulty: Easy
Ref: Why and How Managers Plan
AACSB: Individual Dynamics
Bloom's Taxonomy: Knowledge

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Schermerhorn-Management, 11th edition Test Bank

Types of Plans Used by Managers

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 driven
B. Strategy driven
C. Tactic driven
D. Functionally driven
E. Cost driven

I
Response: Page 192
Difficulty: Hard
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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 190-193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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Schermerhorn-Management, 11th edition Test Bank

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 organizations 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 plansdealing with the methods and technology needed by
people in their work;
Financial plansdealing with money required to support various operations;
Facilities plansdealing with facilities and work layouts;
Logistics plansdealing with suppliers and the flow of raw materials and other product
inputs;
Response: Page 191
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 190
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

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Schermerhorn-Management, 11th edition Test Bank

D. Top-level managers.
E. All levels of management.

I
Response: Page 190
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 190
Difficulty: Hard
Ref: Types of Plans Used by Managers
AACSB: Individual Dynamics
Bloom'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.

I
Response: Page 191
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Knowledge

70. Strategic planning begins with __________________

A. Tactical planning

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Schermerhorn-Management, 11th edition Test Bank

B. Vision
C. Time management
D. Forecasting
E. None of the above

I
Response: Page 191
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Comprehension

71. A ________________helps to implement all or parts of a strategic plan.

A. Strategic plan
B. Tactical plan
C. Long range plan
D. Short range plan
E. Functional plan

I
Response: Page 191
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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 planning
B. Strategic planning
C. Functional planning
D. Production planning
E. Mitigation planning

I
Response: Page 191
Difficulty: Hard
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Application

73. All of the following are examples of functional plans except:

A. Logistics plans
B. Facilities plans

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Schermerhorn-Management, 11th edition Test Bank

C. Human resources plans

D. Operational plans
E. Financial plans

I
Response: Page 191
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 192
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 191-192
Difficulty: Hard
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

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Schermerhorn-Management, 11th edition Test Bank

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.

I
Response: Page 191
Difficulty: Hard
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 191
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 191
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

79. __________ communicate broad guidelines for making decisions and taking action in specific
circumstances.
A. Rules
B. Procedures
C. Policies

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Schermerhorn-Management, 11th edition Test Bank

D. Guidelines
E. Regulations

I
Response: Page 192
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: 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.

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom'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.

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom'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.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 193
Difficulty: Hard
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Analysis

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.

I
Response: Page 192-193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom'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.

I
Response: Page 193
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Knowledge

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.

I
Response: Page 193
Difficulty: Hard
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Application

88. Short-range plans cover one year or less into the future.

I
Response: Page 190
Difficulty: Easy

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Ref: Types of Plans Used by Managers

AACSB: Strategy
Bloom's Taxonomy: Knowledge

89. Long-range plans cover a time frame of at least six years into the future.

I
Response: Page 190
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Knowledge

90. Top-level managers spend more time with long-range planning than other levels of management.

I
Response: Page 190
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 190
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Comprehension

92. Strategic plans set broad, comprehensive, and long-term action directions for the entire
organization.

I
Response: Page 191
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Knowledge

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Schermerhorn-Management, 11th edition Test Bank

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.

I
Response: Page 191-192
Difficulty: Hard
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Application

94. An organizations vision clarifies the purpose of the organization and expresses what it hopes to
become in the future.

I
Response: Page 191
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Comprehension

95. A tactical plan helps implement the entire strategic plan or at least parts of this plan.

I
Response: Page 191
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Knowledge

96. Tactical plans tend to be intermediate-term plans that specify step by step means for using the
organizations resources to put strategies into action.

I
Response: Page 191
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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Schermerhorn-Management, 11th edition Test Bank

97. A functional plan indicates how different operations within the organization will help advance the
overall strategy of the organization.

I
Response: Page 191
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Knowledge

98. Examples of functional plans include production plans, financial plans, logistics plans, and HR
plans.

I
Response: Page 191
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 192
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom'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.

I
Response: Page 192
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Strategy
Bloom's Taxonomy: Knowledge

101. Policies and procedures are single-use plans for meeting the needs of a well-defined situation in a
timely manner.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Comprehension

102. Policies communicate broad guidelines for making decisions and taking action in specific
circumstances.

I
Response: Page 192
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

103. Rules or procedures describe exactly what actions are to be taken in specific situations.

I
Response: Page 193
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

104. Standard operating procedures are rules often found in employee manuals.

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

105. Procedures present a plan of action for specific situations whereas policies are broad guidelines.

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

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Schermerhorn-Management, 11th edition Test Bank

106. A zero-based budget and a project schedule are examples of standing plans that are designed to
cover recurring situations.

I
Response: Page 192
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

107. A monthly operating budget is an example of a single-use plan serving the needs and objectives
of a well-defined situation in a timely manner.

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Comprehension

108. Budgets are single-use plans that commit resources to activities, projects, or programs.

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

109. A fixed budget is defined as one that allocates a fixed amount of resources for a specific purpose.

I
Response: Page 193
Difficulty: Easy
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

110. A zero-based budget allows the allocation of resources to vary in direct proportion with various
levels of activity.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom'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.

I
Response: Page 193
Difficulty: Moderate
Ref: Types of Plans Used by Managers
AACSB: Operations Management
Bloom'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.

I
Response: Page 194
Difficulty: Easy
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Knowledge

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.

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Schermerhorn-Management, 11th edition Test Bank

Response: Page 194

Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Knowledge

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.

I
Response: Page 194
Difficulty: Easy
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Application

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.

I
Response: Page 194
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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.

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Schermerhorn-Management, 11th edition Test Bank

Response: Page 194-195

Difficulty: Hard
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Analysis

117. __________ is a long-term version of contingency planning.

A. Forecasting.
B. Benchmarking.
C. Participation.
D. Scenario planning.
E. Flexible budgeting.

I
Response: Page 195
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Knowledge

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.

I
Response: Page 195
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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 companys 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.

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Schermerhorn-Management, 11th edition Test Bank

Response: Page 195

Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Application

120. __________ is a technique that makes use of external comparisons to better evaluate ones
current performance and identify possible actions for the future.
A. Contingency planning.
B. Scenario planning.
C. Forecasting.
D. Management by objectives.
E. Benchmarking.

I
Response: Page 196
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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.

I
Response: Page 196
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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 ones own operations.
A. Contingency planning.
B. Scenario planning.
C. Benchmarking.
D. Forecasting.
E. Participation.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 196
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom'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.

I
Response: Page 196
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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.

I
Response: Page 197
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

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 assistance
B. communication gap
C. skill discrepancies
D. argument
E. identity crisis

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 197
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Individual Dynamics
Bloom'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.
Response: Page 194-197
Difficulty: Hard
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

127. Using the opinions of individuals who possess special expertise to make predictions about the
future is called qualitative forecasting.

I
Response: Page 194
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Operations Management
Bloom's Taxonomy: Comprehension

128. Using mathematical and statistical analyses of historical data and surveys to predict future events
is called quantitative forecasting.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 194
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Operations Management
Bloom's Taxonomy: Knowledge

129. Quantitative forecasting techniques use expert opinions to predict the future, whereas qualitative
forecasting uses mathematical analyses to predict future events.

I
Response: Page 194
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Operations Management
Bloom's Taxonomy: Analysis

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.

I
Response: Page 194
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Analysis

131. Contingency planning identifies alternative courses of action that can be implemented to meet the
needs of changing circumstances.

I
Response: Page 194
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Knowledge

132. Contingency planning occurs when planners decide the future of the organization will be identical
to its past.

I
Response: Page 194-195

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Schermerhorn-Management, 11th edition Test Bank

Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Knowledge

133. Contingency planning anticipates events that may occur in the future.

I
Response: Page 194
Difficulty: Easy
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Knowledge

134. Contingency planning focuses on early identification of possible shifts in future events.

I
Response: Page 194
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

135. Contingency planning contains trigger points indicating when preselected alternative plans should
be activated.

I
Response: Page 195
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

136. Scenario planning is a long-term version of contingency planning.

I
Response: Page 195
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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Schermerhorn-Management, 11th edition Test Bank

137. Scenario planning involves identifying alternative future scenarios that may occur and then
developing plans to deal with each scenario should it actually occur.

I
Response: Page 195
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

138. Scenario planning helps Royal Dutch/Shell make major adjustments in strategies and operations
and to be better prepared than competitors for future shocks.

I
Response: Page 195
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Application

139. Benchmarking is used to gain perspective on current organizational performance through the use
of external comparisons.

I
Response: Page 196
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

140. Benchmarking is done to determine what other organizations are doing well and how those ideas
could be incorporated into ones own organization.

I
Response: Page 196
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

141. Best practices refer to those things that are done by both competitors and noncompetitors that
enable them to achieve superior performance.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 196
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Comprehension

142. Staff planners are individuals who lead and coordinate the planning function for an organization
as a whole or for one of its major components.

I
Response: Page 197
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Operations Management
Bloom's Taxonomy: Comprehension

143. An important risk associated with the use of staff planners is the communication gap that can
develop between staff planners and line managers.

I
Response: Page 197
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Operations Management
Bloom's Taxonomy: Analysis

144. Planning specialists are skilled in all steps of the planning process, as well as in the use of
planning tools and techniques.

I
Response: Page 197
Difficulty: Moderate
Ref: Planning Tools and Techniques
AACSB: Strategy
Bloom's Taxonomy: Knowledge

Implementing Plans to Achieve Results

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Schermerhorn-Management, 11th edition Test Bank

145. Effective goals resulting in plans being successfully implemented with high performance are all
of the following except:
A. Specific
B. Timely
C. Measurable
D. Challenging
E. Functional

I
Response: Page 198
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Analysis

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.

I
Response: Page 198
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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-level
D. Higher-level lower-level.
E. Higher-level higher-level.

I
Response: Page 198
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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Schermerhorn-Management, 11th edition Test Bank

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.
E. Deliverables.

I
Response: Page 199
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Comprehension

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.

I
Response: Page 200
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Application

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.

I
Response: Page 200
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Analysis

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

151. As long as people have goals, how they are set them doesnt really make much of an impact on
their success.

I
Response: Page 198
Difficulty: Hard
Ref: Implementing Plans to Achieve Results
AACSB: Individual Dynamics
Bloom's Taxonomy: Analysis

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.

I
Response: Page 198
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Knowledge

153. In order to make effective goals, they should be specific, timely, measurable, challenging, and
attainable.

I
Response: Page 198
Difficulty: Easy
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Knowledge

154. Aligning goals from one level to the next facilitates the right things happening at the right time on
all levels of the organization.

I
Response: Page 198
Difficulty: Hard
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Synthesis

155. In the means-ends chain, higher-level objectives are ends that are directly tied to lower-level
objectives as the means for their accomplishment.

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

I
Response: Page 198
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Comprehension

156. A good performance objective should be challenging and specific but it need not be measurable
or time defined.

I
Response: Page 199
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Comprehension

157. On those jobs where performance is difficult to quantify, performance objectives can be stated as
verifiable work activities.

I
Response: Page 199
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Analysis

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.

I
Response: Page 200
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Comprehension

159. The use of participatory planning can increase creativity in planning, the commitment of people
for planning, and the information available for planning.

Copyright 2011 John Wiley & Sons, Inc.

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Schermerhorn-Management, 11th edition Test Bank

Response: Page 200

Difficulty: Easy
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Knowledge

160. The use of participatory planning can increase conflict over scarce resources and consequently
decrease acceptance of chosen alternatives.

I
Response: Page 200
Difficulty: Easy
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Comprehension

161. Only a few key people should be involved in developing plans in order to keep the plans simple
and to facilitate implementation.

I
Response: Page 200
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Comprehension

162. While participation in the planning process can increase the amount of time spent in planning, it
nonetheless can enhance results by improving implementation.

I
Response: Page 200
Difficulty: Moderate
Ref: Implementing Plans to Achieve Results
AACSB: Strategy
Bloom's Taxonomy: Analysis

Copyright 2011 John Wiley & Sons, Inc.

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