TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) Planning is concerned with how objectives are to be accomplished, not what is to be accomplished. 1) _______
Answer: True False

2) Planning provides direction to managers and nonmanagers alike. 2) _______

Answer: True False

3) Even without planning, departments and individuals always work together, allowing organizations to move 3) _______
efficiently toward their goals.
Answer: True False

4) Research indicates that nonplanning organizations always outperform planning organizations. 4) _______
Answer: True False

5) A good understanding of the concept of "Qadar" should lead to no planning for the future. 5) _______
Answer: True False

6) Fatalistic attitudes have never been displayed in Arab societies. 6) _______

Answer: True False

7) Goals are the foundation of organizational planning. 7) _______

Answer: True False

8) Most businesses have only one objective: to make a profit. 8) _______

Answer: True False

9) Most companies' goals can be classified as either strategic or financial. 9) _______

Answer: True False

10) Goals and objectives are two terms used interchangeably in the planning process. 10) ______
Answer: True False

11) Strategic goals are related to the financial performance of the organization. 11) ______
Answer: True False

12) An organization's real goals are often quite irrelevant to what actually goes on. 12) ______
Answer: True False

13) Strategic plans can be categorized as long term, directional, and single use. 13) ______
Answer: True False

14) Operational plans encompass a particular operational area of the organization. 14) ______
Answer: True False

15) 'Long-term' used to mean anything over three years, but now it means anything over one year. 15) ______
Answer: True False

16) 'Short-term' plans are those covering one year or less. 16) ______
Answer: True False

17) Directional plans have clearly defined objectives. 17) ______

Answer: True False

18) When uncertainty is high and managers must be flexible in order to respond to unexpected changes, 18) ______
directional plans are preferable.
Answer: True False

19) An integrated network of goals is sometimes called a means-end chain. 19) ______
Answer: True False
 20) In MBO, or 'management by objectives', goals are often less well-defined, giving managers and employees 20) ______
more flexibility to respond to changing conditions.
Answer: True False

21) In a typical MBO program, successful achievement of objectives is reinforced by performance-based 21) ______
rewards.
Answer: True False

22) An MBO program consists of four elements: loose goals, participative decision making, an explicit time 22) ______
period, and performance feedback.
Answer: True False

23) Studies of actual MBO programs find mixed results in terms of its effects on overall employee 23) ______
performance and organizational productivity.
Answer: True False

24) A well-designed goal should be measurable and quantifiable. 24) ______

Answer: True False

25) Goals that are too easy to accomplish are not motivating and neither are goals that are not attainable 25) ______
even with exceptional effort.
Answer: True False

26) The second step in goal setting is to determine the goals individually or with input from others. 26) ______
Answer: True False

27) The more the current plans affect future commitments, the longer the time frame for which managers 27) ______
should plan.
Answer: True False

28) Planning is a waste of time in a volatile environment. 28) ______

Answer: True False

29) A major argument against formal plans is that they can't replace intuition and creativity. 29) ______
Answer: True False

30) One criticism of planning is that it's not enough for managers just to plan. 30) ______
Answer: True False

31) In times of dynamic environmental change, well-defined and precisely developed action plans enhance 31) ______
organizational performance.
Answer: True False

32) In today's dynamic business environment, successful firms recognize that planning is an ongoing process, 32) ______
not a tablet of rules cast in stone.
Answer: True False

33) Managers must be able to follow through with plans even if conditions change. 33) ______
Answer: True False

34) Effective planning in dynamic environments means flattening the organizational hierarchy. 34) ______
Answer: True False

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
35) Planning involves defining the organization's goals, establishing an overall strategy for achieving those 35) ______
goals, and developing a comprehensive set of plans ________.
A) to determine which manager will be in charge of which department
B) for organizational work activities
C) to establish the quality and quantity of work to be accomplished
D) as to which shift will perform what work functions
Answer: B
36) In formal planning, ________. 36) ______
A) specific goals covering a period of years are defined
B) general goals are developed and not written
C) general goals covering an unspecified period of years are defined
D) specific goals are developed and not written
Answer: A

37) Formal planning involves which of the following aspects? 37) ______
A) writing objectives
B) distributing the plan to all managerial employees
C) planning for up to one year
D) developing general objectives
Answer: A

38) The effect of planning on managers is that it forces them to ________. 38) ______
A) respond indiscriminately B) consider the impact of change
C) develop bureaucratic response models D) react to change
Answer: B

39) Planning can't eliminate change. Managers plan in order to ________. 39) ______
A) be prepared for when changes in management at the top occurs
B) decide what needs to be done when a change in environments happen
C) anticipate changes and develop the most effective response to changes
D) have the appropriate materials available when the demand for them comes about
Answer: C

40) Planning gives direction, reduces the impact of change, minimizes waste and redundancy, and ________. 40) ______
A) sets the basis used for promotion of individuals within the organization
B) eliminates departments that are not needed within the plan
C) establishes the workloads for each of the departments
D) sets the standards used in controlling
Answer: D

41) Studies of performance in organizations that plan have reached ________. 41) ______
A) generally positive conclusions regarding the benefits of planning
B) somewhat negative conclusions regarding the benefits of planning
C) generally negative conclusions regarding the benefits of planning
D) generally mixed conclusions regarding the benefits of planning
Answer: A

42) The quality of the planning process and the appropriate implementation of the plans probably ________. 42) ______
A) should be studied more to factually determine which contributes the most
B) contribute more to high performance than does the extent of planning
C) don't contribute to high performance nearly as much as the extent of planning
D) contribute less to high performance than does the extent of planning
Answer: B

43) In studies in which formal planning did not lead to higher performance, ________. 43) ______
A) employees' implementation of the plans was the primary reason for failure
B) the external environment often was the reason
C) lack of communication was most often the reason for failure
D) management's execution of the plans was most often the reason for failure
Answer: B

44) Governmental regulations, powerful labor unions, and other critical environmental forces constrain 44) ______
managers' options and ________ the impact of planning on an organization's performance.
A) reduce B) neutralize C) increase D) don't affect
Answer: A

45) One charge against Arab culture in relation to planning relates to the concept of ________. 45) ______
 A) fundamentalism B) fatalism
C) determinism D) consumerism
Answer: B

46) Planning is often called the primary management function because it ________. 46) ______
A) establishes the basis for all the other functions
B) sets the tone for the organizational culture
C) creates the vision for the organizational members to work toward
D) offers some basis for future decision making
Answer: A

47) Planning involves two important elements: ________. 47) ______

A) plans and decisions B) goals and actions
C) goals and plans D) goals and decisions
Answer: C

48) Goals are objectives, ________. 48) ______

A) but goals are used in reference to profits, and objectives are used in reference to production
output
B) but goals are used by top management, and objectives are used by first-level management
C) and we use the two terms interchangeably
D) but goals are long term, and objectives are short term
Answer: C

49) Plans are documents that outline how goals are going to be met and ________. 49) ______
A) identify how much capital is required to complete the goals
B) tell what materials and processes are necessary to fulfill the goals
C) describe resource allocations, schedules, and other necessary actions to accomplish the goals
D) define which department has what responsibilities needed to accomplish the goals
Answer: C

50) ________ can evaluate whether an organization is successful. 50) ______

A) No single measure B) Stakeholders are the only groups that
C) Plans are also a measure that D) A goal is the only measure that
Answer: A

51) To encourage proper planning in Arab societies, Arab managers need to ________. 51) ______
A) rely less on their intuition
B) develop a proper understanding of the concept of Qadar
C) cautiously implement modern technology
D) decrease their exposure to the world
Answer: B

52) When managers emphasize one goal, they ________. 52) ______
A) ignore other goals that must also be reached if long-term success is to achieved
B) make the goal easier to be accomplished by all organizational members
C) assure that the one goal will be accomplished even above the established level
D) deny the organizational members the opportunity to grow and develop
Answer: A

53) Using a single objective can result in unethical practices because managers ________. 53) ______
A) will ignore other important parts of their jobs in order to look good on that one measure
B) will use overtime to accomplish that single objective without reporting it
C) will manipulate the outcomes reported to assure that the one objective is achieved
D) want to satisfy the stockholders of the organization
Answer: A

54) Official statements of what an organization says and what it wants its various stakeholders to believe are 54) ______
referred to as ________.
A) real goals B) comprehensive goals
C) committed goals D) stated goals
 Answer: D

55) The conflict in stated goals exists because organizations respond to a variety of ________. 55) ______
A) stakeholders B) governmental regulations
C) external environments D) stockholders
Answer: A

56) Which of the following is true concerning an organization's stated objectives? 56) ______
A) Organizations typically have internal and external sets of objectives.
B) Stated objectives are usually in line with short-term actions.
C) Organizations may issue different objectives to stockholders, customers, employees, and the public.
D) Organizations issue identical objectives to all constituents.
Answer: C

57) What should a person do to understand what the real objectives of the organization are? 57) ______
A) Read their annual report. B) Attend a stockholders' annual meeting.
C) Observe organizational members' actions. D) Watch television news reports.
Answer: C

58) The most common ways to describe organizational plans are by their frequency of use, time frame, 58) ______
specificity, and ________.
A) quantifiability B) attainability C) breadth D) flexibility
Answer: C

59) When we categorize plans as being directional versus specific, we are categorizing them by ________. 59) ______
A) breadth B) frequency of use
C) specificity D) depth
Answer: C

60) When we categorize plans as being single-use versus standing, we categorize them by ________. 60) ______
A) specificity B) time frame
C) breadth D) frequency of use
Answer: D

61) Strategic plans tend to cover a longer period of time than operational goals and also ________. 61) ______
A) cover a more narrow view of the organization
B) cover a broader view of the organization
C) include an estimate of the profits that the stockholder can anticipate as dividends
D) cover the financial projections of the planning period
Answer: B

62) As organizational environments have become more uncertain, ________. 62) ______
A) organizations are having to make longer term plans
B) organizations have to request that the government pass more legislation restricting the amount of
uncertainty
C) the definition of long term has changed
D) organizations have to resist the uncertainties to keep the plans moving toward the objectives
Answer: C

63) Specific plans are clearly defined and ________. 63) ______
A) leave no room for interpretation
B) give the managers authority to interpret the plans for their area of responsibility
C) allow managers to interpret their "flexibility" on their own
D) keep the stakeholders informed of the organization's objectives
Answer: A

64) A legislative plan that calls for a 2.45 percent increase in property tax for the next 2 years would be 64) ______
considered what type of plan?
A) Strategic B) Directional C) Operational D) Specific
Answer: D
65) Directional plans ________. 65) ______
A) last for 3-5 years B) meet the needs of a unique situation
C) identify general guidelines D) have clearly defined objectives
Answer: C

66) The flexibility inherent in directional plans must be weighed against the ________. 66) ______
A) loss of a shorter planning period provided by specific plans
B) loss of clarity provided by specific plans
C) gain of a shorter planning period provided by specific plans
D) gain of a longer planning period provided by specific plans
Answer: B

67) ________ is a one-time plan specifically designed to meet the needs of a unique situation. 67) ______
A) A strategic plan B) A single-use plan
C) A multipurpose plan D) An operational plan
Answer: B

68) Standing plans are ongoing plans that provide ________. 68) ______
A) stakeholders with identifiable goals that the organization will always strive to achieve
B) general directions on how to accomplish an identifiable task
C) the stockholders with identifiable goals that the organization will always strive to achieve
D) guidance for activities performed repeatedly
Answer: D

69) A city's policy concerning smoking in public buildings that provides guidance for police action would be 69) ______
considered what type of plan?
A) Standing B) Single-use C) Contingency D) Directional
Answer: A

70) Goals provide the direction for all management decisions and actions and form the ________. 70) ______
A) criteria against which actual accomplishments are measured
B) profit basis that the organizations will accomplish for stockholders
C) desired outcomes that the organizational members will achieve
D) basis for the sharing of profits with the employees at the end
Answer: A

71) With traditional goal setting, the goals are set at the top level of management and ________. 71) ______
A) then they are broken down into subgoals for each level of the organization
B) then they are delegated to the next lower level to be achieved
C) all the efforts to achieve those goals are directed by top management, to ensure that they are
achieved
D) then it becomes the responsibility of first-line management to achieve those goals
Answer: A

72) With traditional goal setting, the assumption is that ________. 72) ______
A) top managers are unfamiliar with setting goals, so lower-level managers are assigned to do the task
B) lower-level managers are incapable of setting goals
C) top managers know what is best because they see the "big picture"
D) lower-level managers understand more of what needs to be accomplished
Answer: C

73) With traditional goal setting, employees' work efforts at their respective levels and work areas are 73) ______
geared to meet goals ________.
A) within the shortest amount of time possible
B) so that their immediate supervisors will be retained in their position
C) that have been assigned in their specific areas of responsibility
D) so that the top management will be retained in their position
Answer: C

74) What happens to traditional goals as they make their way down from top management to lower levels? 74) ______
A) Lower-level managers must continually revise and correct them.
 B) They unite the workforce.
C) They purposely remain vague and nonspecific.
D) They lose clarity and unity.
Answer: D

75) When the hierarchy of organizational goals is clearly defined, it forms a ________. 75) ______
A) weakest-link chain B) level-level chain
C) hierarchical-link chain D) means-ends chain
Answer: D

76) Management by objectives (MBO) is a management system in which the first step is setting specific 76) ______
performance goals that are ________.
A) established and that can be easily accomplished
B) jointly determined by employees and their managers
C) developed in such a manner that the employees are self-directed and do not need supervision
D) determined by top management with clarity so that the objectives are clear to even the most
incompetent employee
Answer: B

77) In the MBO system, ________. 77) ______

A) objectives are determined by management
B) progress toward objectives is periodically reviewed
C) goals are used as controls
D) goals are only reviewed at the time of completion
Answer: B

78) What is the first step in a typical MBO program? 78) ______
A) Action plans are specified and agreed upon by managers and employees.
B) Unit managers collaboratively set specific objectives for their units with their managers.
C) The organization's overall objectives and strategies are formulated.
D) Major objectives are allocated among divisional and departmental units.
Answer: C

79) A well-designed goal should be ________. 79) ______

A) identifiable to even the first-line supervisors
B) specific and within a manageable time frame
C) short and very specific about expected outcomes
D) written in terms of outcomes rather than actions
Answer: D

80) A well-designed goal should be ________. 80) ______

A) discussed at orientation
B) clear as to a time frame
C) easy to achieve
D) nearly unattainable, so that even if the unit or employee misses the goal, performance is still very
high
Answer: B

81) The process of writing goals ________. 81) ______

A) is too time consuming B) is useless
C) inspires innovative concepts D) forces people to think them through
Answer: D

82) What do written goals become? 82) ______

A) personal and collective B) inflexible and general
C) visible and tangible D) old and useless
Answer: C

83) What is the purpose of an organization called? 83) ______

A) the organization's vision B) the organization's contingency plan
C) the organization's mission D) the organization's action plan
 Answer: C

84) When setting goals, what should a manager do after writing down the goals and communicating them to 84) ______
all who need to know?
A) determine the goals individually or with input from others
B) review the organization's mission
C) review results and whether goals are met
D) evaluate available resources
Answer: C

85) Three contingency factors that affect planning are level in the organization, degree of environmental 85) ______
uncertainty, and ________.
A) enforceability of future commitments B) length of future commitments
C) quantity of future commitments D) frequency of future commitments
Answer: B

86) ________ planning dominates managers' planning efforts at lower levels of the organization. 86) ______
A) Functional B) Tactical C) Operational D) Strategic
Answer: C

87) The commitment concept means that plans should extend far enough to meet those commitments 87) ______
________.
A) with the stakeholders and make it appear that the organization is really committed
B) as quickly as possible
C) while the resources are available
D) made when the plans were developed
Answer: D

88) Planning for too long or too short a time period ________. 88) ______
A) is the concept of commitment B) is effective planning
C) depends on the organization D) is inefficient and ineffective
Answer: D

89) As organizations expand and update their computing technology, they are ________. 89) ______
A) in a state of low environmental uncertainty
B) relying on lower level management to do the planning
C) in a state of high environmental uncertainty
D) committed to whatever future expenses are generated by that plan
Answer: D

90) We can best understand how an organization plans, by looking at ________. 90) ______
A) the priority of the goals
B) the flexibility of the organization's plans
C) who does the planning
D) the goals set by the organization's planners
Answer: C

91) In the traditional approach to planning, planning was done entirely by top-level managers who were often 91) ______
assisted by ________.
A) a mixture of managers from the line, functional, and business level
B) functional level managers
C) business level managers
D) a group of planning specialists
Answer: D

92) What is defined as a group of planning specialists whose sole responsibility is helping to write the various 92) ______
organizational plans?
A) Mission writers B) Organizational planning department
C) Traditional planning specialists D) Formal planning department
Answer: D
 93) When can the traditional top-down approach to planning be effective? 93) ______
A) Only when the planning involves lower level management.
B) Only if managers understand that they must create usable documents that members actually use.
C) Only when the documents look impressive.
D) Only when the documents are prepared for the corporate planning staff.
Answer: B

94) When organizational members are more actively involved in planning, they see that the plans ________. 94) ______
A) are how the company is going to be judged by the stockholders
B) stated to stakeholders, are the real plans that the organization desires to achieve
C) are more than just something written down on paper
D) are not as important as management makes them out to be
Answer: C

95) Managers who continue to do the things required to achieve the original goals of a plan ________. 95) ______
A) may not be able to cope with a changed environment
B) are demonstrating their ability to follow a flexible and specific plan
C) are following their intuition
D) are acting responsibly
Answer: A

96) What is a frequently cited criticism of formal planning? 96) ______

A) Formal planning creates extra, often redundant levels of hierarchy within the organization.
B) Formal planning works well only for large, diversified companies.
C) Formal planning is too time consuming, given the dynamism in modern business environments.
D) Plans can't be developed for a dynamic environment.
Answer: D

97) Successful organizations are typically the result of what? 97) ______
A) formal planning efforts B) flexibility
C) mechanical analysis D) innovative vision
Answer: D

98) Visions have a tendency to ________ as they evolve. 98) ______

A) become formalized B) trap employees in a certain mindset
C) fail D) generate more creativity
Answer: A

99) Formal planning focuses managers' attention on what? 99) ______

A) Yesterday's successes and failures. B) Today's competition.
C) Tomorrow's survival. D) The changing future.
Answer: B

100) What argument against formal planning indicates that confidence in a plan is dangerous? 100) _____
A) Plans cannot be developed for a dynamic environment.
B) Formal planning reinforces success, which may lead to failure.
C) Just planning isn't enough.
D) Planning may create rigidity.
Answer: B

101) A wireless networking technology called Wi-Fi that links together information devices is ________. 101) _____
A) complicating the planning process, but will be improving communications
B) an integral component of planning for the Fortune 500 companies
C) making organizational planning much easier
D) revolutionizing all kinds of industries
Answer: D

102) In an uncertain environment, managers want to develop ________ plans. 102) _____
A) general and flexible B) contingency
C) specific but flexible D) formal
Answer: C
 103) Formal plans serve as a roadmap although the destination may be changing constantly due to ________. 103) _____
A) dynamic market conditions B) employment makeup
C) management changes D) political changes
Answer: A

104) It is ________ formal planning efforts when the environment is highly uncertain. 104) _____
A) not as important to continue
B) necessary to cease
C) important to switch to directional planning and cease
D) important to continue
Answer: D

105) Why does the persistence in planning efforts contribute to significant performance improvement? 105) _____
A) The quality of managers' planning improves when they continue to do it.
B) After so many tries, managers have to hit on a success.
C) Managers discover that their focus should be on the future instead of present.
D) If managers wear down the employees enough, their performance will improve.
Answer: A

106) The organizational hierarchy becomes flattened as the responsibility for establishing goals and developing 106) _____
plans is ________.
A) pushed to the lowest organizational levels
B) shifted to a formal planning department
C) moved to the middle organizational levels
D) more the work of the financial department
Answer: A

It's Academic (Scenario)

You are the academic dean for a small college. The university president has asked you to develop a plan for the college. She wants
the plan to cover the next five years. She wants it to be as specific as possible, but it should leave some room for flexibility.

107) Because your plan will have specific objectives covering a period of five years along with specific action 107) _____
plans for achieving these objectives, your plan could best be described as ________.
A) defined B) formal C) standard D) contractual
Answer: B

108) The president has expressed concern regarding the impact of planning on the ability of the organization 108) _____
to respond to emerging changes in the higher education environment, such as distance learning and
corporate universities. You should tell the president that planning ________.
A) forces managers to look at the present
B) eliminates the consideration of the impact of change
C) forces managers to anticipate change
D) increases uncertainty
Answer: C

Retail Planning (Scenario)

Tarek is president and CEO of a retail chain that is about to begin operations in numerous major cities across the Arab region. The
stores will sell home furnishings that are considered moderately priced for the average-income buyer. During the last few months he
has been working to lay out directions for the managers of the stores. Tarek and his vice presidents have decided that each store
should have sales equal to or greater than $100 per square meter per day. To attract an adequate number of customers, the store
should be well maintained both inside and out.

109) The primary task that Tarek and the vice presidents have been performing during the last couple of 109) _____
months is known as ________.
A) making plans B) establishing networks
C) designing the stores D) laying out ideas
Answer: A
 110) The statement that each store should have sales equal to or greater than $100 per square meter per day 110) _____
is an example of ________.
A) a specific plan B) a goal
C) management by objectives D) a directional plan
Answer: B

111) The statement that all stores should be well maintained both inside and out is an example of a 111) _____
________.
A) stated goal B) real goal C) specific plan D) directional plan
Answer: D

112) Tarek's goal for each store of $100 per square meter per day has several of the characteristics of a 112) _____
well-designed goal. First, it is written in terms of outcomes and not actions. Second, this goal is
measurable and quantifiable. What else can Tarek do to improve the design of this goal?
A) Communicate this goal to every single employee of the organization.
B) Ensure that the goal is attainable.
C) Make certain it will be achieved easily.
D) Specify a time frame for achieving this goal.
Answer: D

113) When setting goals for the plan, what should Tarek do after he evaluates available resources? 113) _____
A) Write down the goals and communicate them to all who need to know.
B) Review the results and whether goals are being met.
C) Review the organization's mission.
D) Determine the goals individually or with input from others.
Answer: D

A Business Plan (Scenario)

Imagine that you are the owner of a small company that sells typewriters, business equipment, and computer hardware. You employ
about 40 people. You know that the organization needs to move in a different direction, and you want to set some long-term goals
for the company. You want to write a plan that will cover the next three years only, knowing that business needs change somewhat
frequently. Your goal is to write a plan that provides direction but does not contain extremely well-defined, potentially restrictive
objectives.

114) The fact that your plan covers three years suggests that your plan is most consistent with what type of 114) _____
plan?
A) Strategic B) Operational C) Long term D) Specific
Answer: A

115) Your plan will cover the entire organization. This characteristic is most consistent with what type of 115) _____
plan?
A) Long term B) Strategic C) Standard D) Specific
Answer: B

E-Biz Dreams (Scenario)

Raja has just completed a Master of Science degree in computer science at Major University. He now wants to begin a new internet
business selling his services as a website maker for companies in his home city. He estimates that, if his business idea is a success,
within one year he will be employing at a minimum 10 programmers and 2 analysts.

116) To make his business successful, Raja will first have to develop what type of plan? 116) _____
A) Directional B) Specific C) Operational D) Strategic
Answer: D

117) To ensure that the organization's objectives are clearly defined and do not leave room for interpretation, 117) _____
Raja will have to develop what type of plan?
A) Operational B) Specific C) Strategic D) Directional
Answer: B
Planning Factors (Scenario)

As vice president of a local manufacturer, you are interested in developing a new organizational plan. However, you are not sure
who you should assign to the varying planning tasks. At the same time, several other issues that could deeply affect your business are
pending, including rising interest rates and the potential formation of a new employee union. You must also consider your firm's
contracts with large vendors that extend five years into the future.

119) For the most part, you should assign the operational planning activities to ________. 119) _____
A) middle managers B) top managers
C) line staff D) lower-level managers
Answer: D

120) Which plans should you and other top management members be developing? 120) _____
A) Specific B) Strategic C) Overall D) Operational
Answer: B

A-Z Planning (Scenario)

Organizations ABC and XYZ are both in the same industry and compete for the same set of customers in the marketplace. At ABC,
the plans are made at the top level of management each year and then are formulated for and announced to each of the mid-level
and first-level managers. At XYZ, the plans are made at the top, and then those managers meet with their subordinates at the next
level and mutually agreed-to goals are established with them. The mid-level managers then meet with their first-level managers and
mutually agreed-to goals are established with them. Finally, the first-level managers meet with each of their employees and mutually
agreed-to goals are established with them.

121) The goals setting approach used at the ABC organization is ________. 121) _____
A) standing B) specific C) directional D) traditional
Answer: D

122) Assuming XYZ's hierarchy of goals is clearly defined, the result is ________. 122) _____
A) formal planning department B) unity of command
C) management by objectives D) a means-end chain
Answer: D

123) XYZ also follows a management by objectives (MBO) approach to goal setting. The managers and 123) _____
employees specify and agree upon ________, which define how objectives are to be achieved.
A) performance-based rewards B) objectives and strategies
C) action plans D) periodic reviews
Answer: C

124) Which organization is more likely to have higher employee performance and organizational productivity? 124) _____
A) Organization XYZ, because the employees participated in the planning process and know
specifically what their objectives are.
B) Neither, because the hierarchy of organizational goals is clearly defined at each level.
C) Neither, as they are both in the same industry and facing the same environments.
D) Organization ABC, because the plans are formulated by management for each level of the
organization.
Answer: A

Amana Highway Collaborative (Scenario)

The Regional Planning Council convened a group of stakeholders, including the Department of Transportation and the Department
of Community Affairs, who are interested in working together on improving a major highway called Amana Highway. Firas is the
senior planner for the Regional Planning Council. Firas successfully obtained a technical assistance grant. The intent is to organize the
15 small communities along Amana Highway into an intergovernmental unit. All of the communities will share the same visioning
processes of mission, objectives, and tasks. Firas is now charged with developing a strategic plan for this group, called the Amana
Highway Collaborative.

125) First, Firas must determine the goals he wants to achieve. To do so, he must follow a series of steps for goal setting.
The first 125) ____
step in _
setting
goals for
this new
group
should be
to
_______
_.
A) request input from others and then formulate specific goals
B) evaluate available resources
C) determine the goals individually and then ask for input from others
D) formally establish the organization's mission
Answer: D

126) While each community in the Amana Highway Collaborative maintains its identity and independence, 126) _____
Firas believes that the leverage of multi-governmental applications will ultimately secure more major
funding in the future. However, due to the intergovernmental nature of the organization, Firas, although
in charge of the collaborative, wields little direct power over any community member individually. Which
contingency factor best represents Firas' situation?
A) Time frame of future commitments. B) Environmental uncertainty.
C) Measurability of the goal. D) Level in the organization.
Answer: D

127) Firas told the Collaborative's members that the more current plans affect future commitments, the 127) _____
longer the time frame is for which managers must plan. This concept is also known as the ________.
A) commitment concept B) length of future commitments
C) degree of environmental uncertainty D) first principle of planning
Answer: A

The Dynamic Environment (Scenario)

A group of shareholders at Company EZ has strongly suggested that the firm update its planning practices to include more
participative decision making and greater feedback to employees.

128) Company EZ's business is technology-related and the environment is very dynamic. Management at 128) _____
Company EZ argues that formal planning ________.
A) ignores the employees
B) is not as effective in static environments
C) focuses managers' attention on tomorrow's survival instead of today's competition
D) can't be developed for dynamic environments
Answer: D

129) Because the managers at Company EZ work in such an uncertain environment, it is essential that they 129) _____
develop a plan. What will they have to do to plan in such an environment?
A) Make their plans as rigid as possible.
B) Recognize that their plan must be general.
C) Train their employees in setting goals and establishing plans.
D) Be determined to continue with their plan even if the conditions change.
Answer: C