Tutorial Chapter 2- Planning

1.

_______________ plans are organization wide, establish overall objectives,

and position an organization in terms of its environment.
Specific
Directional
Strategic
Operational
Standing

2.

_______________ plans are clearly defined and leave no room for

interpretation.
Directional
Specific
Operational
Strategic
Standing

___________is a process that involves defining the organization's objectives or

goals, establishing strategy, and developing a hierarchy of plans.

Managing
MBO
Informal planning
Leading
Planning

A _____ plan is a one-time plan designed to meet the needs of a unique

situation and created in response to non-programmed decisions that
managers make.
standing
directional
short-term
strategic
single-use

A/an _______________ plan is a plan developed to illustrate how a

company can increase its market share.
operational
specific
long-term
short-term
standing

A small town's preparation for a visit by the Prime Minister would be

considered what type of plan?
single-use
strategic
standing
long-term
directional

All managers engage in planning, even though for some managers all of
their planning is informal.
True
False

The mission is the purpose of an organization.

True
False

An approach to setting objectives from top managers downward

through the organization is:

real objective

traditional goal setting

stated objective
MBO
commitment concept

10

An official statement that the university class size will be kept at thirty
students is an example of a well designed ____________
approach
plan
goal
mission statement
MBO plan

11

An example of a standing plan is the sexual harassment policy

developed by UBC.
True
False

12

As managers rise in the hierarchy, their planning becomes more

operational.
True
False

13

Flexibility is inherent in directional plans.

True
False

14

Flexible plans that set out general guidelines are:

directional
operational
standing
specific
strategic

15

In informal planning, nothing is written down, but there is much sharing

of objectives with others in the organization.
True
False

16

In those research studies where formal planning has not led to higher
performance, the environment is typically the culprit.
True
False

17

Goals are desired outcomes.

True
False

18

Operational plans tend to:

include a broader area than strategic plans

be much less specific than strategic plans
be long-term plans
identify general guidelines

cover shorter time periods than strategic plans

19

Organizations that formally plan always outperform those that do not

formally plan.
True
False

20

Planning gives direction, reduces the impact of change, minimizes

waste, and sets standards to facilitate control.
True
False

21

Planning is concerned with desired "ends", but not "means".

True
False

22

Contingency factors in planning include ________

intuition and creativity
a level of flexibility

a degree of environmental uncertainty

persistence
tomorrow's survival

23

Plans that specify details on how overall objectives are to be achieved

are _______________ plans.
directional
operational
specific
standing
strategic

24.

Short term plans _______________

are clearly defined
cover less than one year
provide guidance for repeated activities

are designed to meet the needs of a unique situation

are flexible and set out general guidelines

25

The four key differences between strategic and operational plans are:
specificity, cost, number of planners
breadth, timeframe, specificity and frequency of use
cost, organizational age, number of planners
timeframe, cost, organizational age
organizational age, cost, breadth

26

A criticism of formal planning is that ___________

it ignores the future

planning may create rigidity

it is too flexible
it excludes lower levels in the organization
it ignores the need to change

27

Two reasons for planning are to:

reduce flexibility but articulate objectives

allow management to look good to superiors
eliminate change
give direction and reduce the impact of change
set standards to facilitate control and reduce flexibility

28

Planning and performance are generally linked to _________

organizational mission
higher profits
improved morale
the organizational culture
clear goals

29

Which of the following is a part of the definition of organizational

planning?
evaluating the organization's outcomes
contingency factors
defining goals

higher profits
MBO

30

Which of the following is true concerning standing plans?

they establish the organization's overall direction
they identify general guidelines
they are specifically designed to meet the needs of a unique situation
they provide guidance for activities repeatedly performed in the organization
they provide guidance for 1-3 years

Short answer questions

1) How does planning affect the success of a business?
2) How are mission statements, goals, objectives and plans related?
3) How can managers make planning efforts more effective?
4) What are the six barriers to effective planning?
How does each interfere with effective planning?
5) Identify each step in the decision making process, and describe briefly what should
happen in each step.
6) How do managers organize effective decision making?
7) Why is planning important for business organization?