Question 1

Mr.Slabaugh wants to formulate a plan that lays out general guidelines for his employees and leaves room for interpretation.Which of the following types of plans would best suit his requirement?

Accepted Answer

A)  informal
B)  specific
C)  directional
D)  standing C

Question 2

As managers plan,they develop both goals and plans.

Accepted Answer

A) True 
 B)False  True

Question 3

A ________ is an integrated network of goals in which the accomplishment of goals at one level makes possible the achievement of the goals at the next level.

Accepted Answer

A)  reverse pyramid
B)  means-ends chain
C)  bottom-up ladder
D)  process sequence B

Question 4

Top executives are mainly involved in ________ planning.

Accepted Answer

A)  functional
B)  operational
C)  strategic
D)  departmental

Question 5

The commitment concept says that plans should ________.

Accepted Answer

A)  extend far enough to meet those commitments made when the plans were developed
B)  be done for as long a time period as possible
C)  be done for as short a time period as possible
D)  not commit to specifically meeting the goals made when the plans were developed

Question 6

Which of the following would be a well-written goal for an online retailer operating in a volatile business environment?

Accepted Answer

A)  To minimize costs,maximize profits,and maximize return on investment.
B)  To accelerate our growth to the maximum possible level over the next three years.
C)  To achieve a 25 percent growth in revenue,which is defined as the number of items sold multiplied by their price.
D)  To invoice merchandise worth $200,000,every month,for the next three years.

Question 7

Bonnie is discussing with her subordinate Julie the types of projects Julie would like to work on in the coming year.They are setting goals and determining what success would look like.Bonnie and Julie are engaged in ________.

Accepted Answer

A)  performance planning
B)  strategic planning
C)  management by observation
D)  management by objective

Question 8

White Forest Financials is a small investment firm,operating in an extremely volatile environment.One of the company's two owners,David White,is of the opinion that it would be futile for the company to engage in formal planning as the business environment is constantly shifting.However,the co-owner,Marsha Forest,believes that planning is essential for the company's success.Whom would you support? Why?

Accepted Answer

The answer of White Forest Financials is a small investment...

Question 9

________ refers to gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them.

Accepted Answer

A)  Due diligence
B)  Competitor intelligence
C)  Data aggregation
D)  Value analysis

Question 10

Which of the following is an example of a single-use plan?

Accepted Answer

A)  affirmative action hiring policies of a company
B)  a plan developed to install a new computer network
C)  the procedure to be followed for firing low-performing employees
D)  a plan developed to ensure worker safety at the company's facilities

Question 11

Which of the following factors has contributed to the decline in the number of years used to define short-term and long-term plans?

Accepted Answer

A)  environmental uncertainty
B)  profit-orientation of businesses
C)  flattened organizational structures
D)  stagnant business conditions

Question 12

Which of the following statements is true of traditional goal setting?

Accepted Answer

A)  Traditional goal setting assumes that employees know best and employs a bottom-up approach of setting organizational goals.
B)  Evaluation of performance is carried out concurrently with the flow of goals through the organization.
C)  Goals defined narrowly by top managers need to be made more directional as they flow down through the organization.
D)  Managers at each level define goals and apply their own interpretations and biases as they make them more specific.

Question 13

________ plans apply to the entire organization and establish the organization's overall goals.

Accepted Answer

A)  Departmental
B)  Strategic
C)  Operational
D)  Long-term

Question 14

Bill has been working his plan for about three months.He is now discussing his progress with Jim,his supervisor.If Bill and Jim are using the MBO planning process,this discussion is called ________.

Accepted Answer

A)  performance feedback
B)  redirection of goals
C)  advise and adjust
D)  the milestone checkpoint

Question 15

In ________,goals set by top managers flow down through the organization and become subgoals for each organizational area.

Accepted Answer

A)  management by objectives
B)  management by observation
C)  traditional goal setting
D)  traditional planning

Question 16

Short-term plans are those covering one year or less.

Accepted Answer

A) True 
 B)False

Question 17

If top management set a goal that each store in the company should have sales equal to or greater than $100 per square foot per day,this would be an example of ________.

Accepted Answer

A)  a strategic plan
B)  a directional plan
C)  a financial goal
D)  a strategic goal

Question 18

Which of the following reflects the way goals are used in an MBO program?

Accepted Answer

A)  Goals are used to prepare financial budgets for each unit.
B)  Goals are used to broadly set the direction subject to encourage interpretation by individual managers.
C)  Apart from being used to ensure that employees are doing what they are supposed to be doing,goals are used as a motivating tool for employees.
D)  Goals are used to compare organizational performance year over year.

Question 19

________ involves defining the organization's goals,establishing strategies for achieving those goals,and developing plans to integrate and coordinate work activities.

Accepted Answer

A)  Execution
B)  Logistics
C)  Planning
D)  Operations

Question 20

Which of the following is the best indicator of an organization's real goals?

Accepted Answer

A)  organizational members' actions
B)  mission statement
C)  annual reports
D)  stock valuation

Exam 8: Planning Work Activities