Ch: 07 Foundations of Planning:

01-The planning/performance relationship seems to be influenced by the planning

time frame; that is, organizations seem to need at least _____ years of systematic
formal planning before seeing any impact on performance.

1. Two

2. Three

3. Four

4. Five

02._____ are an organization's objectives, and _____ are the documented ways
that organizations intend to meet those objectives.

1. Goals; plans

2. Stated goals; real goals

3. Standing plans; single-use plans

4. Specific plans; directional plans

03. Tasty Foods plans to increase its net profits by purchasing new equipment
that will allow it to produce its Tasty Frozen Dinners at a lower cost. The purchase
of new equipment constitutes a(n) _____.

1. standing plan

2. operational plan

3. directional plan

4. stated plan

04. Martha wants to improve her SAT score by 50 points. She plans to do so by
purchasing specific SAT-preparatory software and attending an SAT-preparatory
class to help her improve her score, particularly on the math section of the test.
Martha is making _____ to achieve her goal

1. long-term plans
 2. standing plans

3. specific plans

4. directional plans

05. The flexibility inherent in _____ must be weighted against the loss of clarity
provided by _____.

1. specific plans; directional plans

2. standing plans; single-use plans

3. directional plans; specific plans

4. single-use plans; standing plans

06. Which of the following is NOT one of the characteristics of well-designed

goals?

1. Goals should be written in terms of actions rather than outcomes.

2. Goals should be measurable and quantifiable.

3. Goals should be challenging but attainable.

4. Goals should be communicated to all organizational members who need to know

about them.

07. The final step of the goal-setting process is to _____.

1. evaluate available resources

2. review the organization's mission

3. write down the goals and communicate them to all who need to know

4. review the results of whether goals are being met

08. All of the following are contingency factors that affect planning EXCEPT _____.

1. the decision-maker's level in the organization

2. the extent of organizational resources

3. the degree of environmental uncertainty

4. the length of future commitments

09. The _____ means that plans should extend far enough to meet those
commitments made when the plans were developed.
 1. management by objective concept

2. traditional goal setting concept

3. means-ends chain concept

4. commitment concept

10. Without planning, there would be no way to control.

• True

• False

11. Planning is often considered to be the primary management function because

it establishes the basis for all the other things that managers do.

• True

• False

12. No single goal can be used to evaluate whether an organization is successful.

• True

• False

13. Single-use plans include policies, rules, and procedures.

• True

• False

14. When the hierarchy of organizational goals is clearly defined, it forms an

integrated means-end chain.

• True

• False

15. Goals without a time frame make an organization more flexible.

• True

• False

16. Goals should reflect desired outcomes and should be congruent with the
organizational mission and goals in other organizational areas.

• True
 • False

17. Well-designed goals will be challenging and impossible to achieve given the
organization's available resources.

• True

• False

18. During periods of environmental uncertainty, managers should stop planning

and focus on responding to environmental signals.

• True

• False

19. Effective planning in dynamic environments means flattening the

organizational hierarchy as the responsibility for establishing goals and
developing plans is shoved to lower organizational levels.

• True

• False

(b).Note on Followings:

Identify and discuss the four reasons for planning.

Differentiate between strategic plans and operational plans and give an example
of each.

Identify the four elements of Management By Objective. What are some of the
problems with this management strategy?

Identify the characteristics of well-designed goals.

Discuss the six criticisms of planning.